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Monday
Nov082010

Green Ennui

In a consumer report released in September, GfK Roper Consulting found a dramatic increase in the percentage of U.S. consumers wary of environmentally friendly product alternatives. The share of consumers who think green products are too expensive rose eight points in two years to 61%, while those who believe they don't work as well jumped nine points to 33% and those who believe they're not even as better for the environment in the first place increased eight points to 38%.

According to Advertising Age, Timothy Kenyon, director of the GfK Roper Green Gauge study, calls the attitude "green fatigue."

In recent months, sales have begun to slow in categories such as green cleaners, and they've grown in not-so-sustainable ones like bottled water. After more than two years for consumers to have experience with a huge number of so-called green products, skepticism is on the rise. Greener cleaners, which had been one of the hottest trends in household products in recent years, also show signs of a shakeout. Clorox Co. chief operating officer Larry Peiros attributed disappointing top-line results to a decline in the natural cleaning segment. "We remain," he said in a conference call with reporters, "in the No. 1 share position, but we're declining pretty much along with the category."

Measured sales of Clorox Green Works are actually up 5% for the 52 weeks ended Oct. 3, according to SymphonyIRI, thanks to the brand's launch into detergents last year. But that comes after a 17% average price reduction from the initial detergent introduction. And other, older Green Works products saw a 15% falloff in sales for the year, according to IRI data from the 52 weeks ended Oct. 3. SC Johnson's "Nature's Source" has also seen a loss of shelf space and prominence at some retailers this year.

Not everyone in green cleaners is singing the blues. Seventh Generation CEO Chuck Maniscalco said the green megabrand--which kind of sounds like a contradiction in terms--has seen double-digit growth this year after a flat 2009. Substantial additional distribution the brand has gotten (along with SC Johnson's other natural brand Mrs. Meyers) in more than 1,500 Walmart stores isn't even much of a factor in that growth yet. Method is also seeing a 20% sales hike so far this year after a tough 2009, said co-founder Eric Ryan, but he said there is a broader shakeout among green brands.

"We believe green sustainability is a macro trend that's going to continue well into the future," Mr. Ryan said. "But a lot of green choices require a change in behavior, and people are very slow to change."

 

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