From The January/February 2003 Issue of Natural Grocery Buyer

Cleaning Up

Natural sprays save the environment, sell well and actually work

Joseph P. Lewandowski

Environmental concern drives at least some demand for organic products and is pushing expansion of another category: eco-friendly cleaning products. Now at least a dozen small-but-mighty companies specializing in natural cleaning products are battling for shelf space with top name brands.

"There's a ton of competition," says John Vlahakis, president and founder of Earth Friendly Products. "But the power of a company like ours is not lost on the big guys. They'll do anything they can to keep us off the shelf."

Though total sales in the natural cleaning category are still too small to measure in the mass-market and supermarket channels, in naturals stores in 2001, sales of environmentally friendly cleaning products grew by 24 percent, says Paddy Spence, CEO of SPINS, a market research company. He expects the trend to continue.

"People are becoming more aware of toxic substances in their homes," Spence says. "So more and more consumers are looking for safe products, especially families with children."

To aid in making the push, manufacturers are developing more sophisticated packaging and better merchandising plans. Companies also are releasing a steady supply of new products appealing to mainstream consumers whose buying habits typically run to Formula 409 and Windex.

"A few years ago a lot of these [natural] products were only available as powders. Now they are out in liquids and gels," Spence says.

Probably the most significant change for natural cleaning products during the last five years is that they actually work. Gone are the days when people who used these products had to give up a little cleanliness around the house in exchange for a nontoxic product.

"For many years people have had a perception that 'green' products cost a lot more and that they don't work," Vlahakis says. "That is no longer the case."

Companies have invested in research and found a variety of plant-based materials that lift dirt, remove stains and bust the dust as well as traditional cleaners. But now that most products are comparable in effectiveness, companies face tougher competition. Each manufacturer claims its products are more effective and more eco-friendly than rivals.

Muddying the waters further is the fact that major conventional manufacturers now offer a variety of products they claim are natural and biodegradable. Orange-oil-based products are a prime example. Small companies pioneered these a decade ago, but their rising popularity has brought the big guns into the market. Consumers can now buy orange varieties of Lysol Spray Disinfectant, Formula 409, Fantastik All-Purpose Cleaner and others.

"Any product I see on the shelf that has a bright orange color is using artificial color and artificial scents," says Cindy Rimer, vice president of sales and marketing at Bi-O-Kleen. "Now everyone has an orange product, and people think they're all natural."

Portland, Ore.-based Bi-O-Kleen's product lineup includes a citrus peel-based spray-and-wipe cleaner that is especially appealing to customers with chemical sensitivities.

Naturals companies complain that the big outfits, while touting a "natural" message, still use dangerous petroleum and solvents in their products. Consumers can't find out what's in a product because most companies consider their formulas proprietary and so don't list ingredients on labels.

Earth Friendly Products, based in Winnetka, Ill., is one of the natural cleaner companies that has been able to break into the big stores. The company's 34 products are sold in 5,000 outlets, including Wal-Mart, Kroger and other big chains. Earth Friendly manufactures its own products and pushes their efficacy and eco-friendly ingredients to consumers—and even lists ingredients. Company sales surged by 55 percent during 2002.

But whatever the opinions of what's natural and what's not, no one can argue with the success of Orange Glo Int'l., a company based in Greenwood Village, Colo., that has been selling its products since 1984. The privately held company logged $375 million in sales in 2002. Wal-Mart is its biggest customer, and the company's products, including OxiClean and Orange Clean, can be found in most major grocery chains.

Company founders Max and Elaine Appel made their first product in their garage in the early 1980s. Their original motivation was dislike of traditional cleaners. They started selling products at state fairs and home shows around the country, and later moved to doing TV infomercials. They moved into mainstream stores as customer demand grew.

"The acceptance of the products has been unbelievable," Max says. "Now we're getting copied constantly."

But he's not concerned about the competition because his products are well established, proven effective and have a big following. A continual release of new products also is vital for the company's continuing success, he says.

Steve Estabrooks, president of Waldport, Ore.-based Orange Mate, another company with citrus-based products, sells his Orange Maid spray cleaner in only a few supermarkets. But even though competition is increasing in the orange category, his sales are up. The big companies, he said, are raising awareness of all orange cleaners with their big advertising campaigns.

"I don't think it's hurt us. Because of all that advertising, we're riding their coattails. More people know about these products now," Estabrooks says.

The company's biggest products are citrus air fresheners. It recently introduced T-TreClean, a tea tree oil-based, all-purpose spray cleaner that's performing well in natural products stores. Tea tree oil is a highly effective agent that is used for cleaning in countries around the world. Sales are booming, and Estabrooks says he's hoping to move into mainstream stores.

Meanwhile, across the country, Seventh Generation is pushing to place its products in mass merchandising stores. "That's a strong focus for us," says Janice Shade, senior marketing manager for the Burlington, Vt., company.

Since the late 1980s, Seventh Generation has been selling a variety of cleaning and recycled paper products in natural products stores throughout the country. The company is one of the leaders in the category, but it has a long way to go before its products will be recognized by a broader group of consumers. But in supermarkets where the company's products are sold, sales are brisk and show double-digit growth month to month, Shade says.

"When we talk to the big stores we can show that this category is growing fast. And that's our most convincing argument," she says.