How did you become involved in the company?
I started out as an active investor, a member of the board before being appointed CEO in 2015, and then executive chair in 2018. And in 2017, we really made a shift, converted our name to good natured Products and really activated our growth strategy - and so far, we've experienced some pretty explosive growth.
And that's mainly in America, or are you globally focussed, as well?
Well, mostly in the US and Canada. Those are our primary markets.
These days, do you buy or do you make the resins /blends you use in your products? What makes them unique in the market?
We really have changed pretty dramatically in that respect. We do both – so, we buy resins from all around the world. We also combine the resins with plant-based additives to create our own proprietary resins. The products we make depend on the product line, and on customer needs.
One recipe we’ve created is a good-to-go microwavable material which we use to make our GoodToGo microwavable containers. It's 97% plant-based, BPI certified compostable, very unique and we offer it as a stock item, but we can also use the material for working with a food producer to customise a design that meets their specific needs, whether it's shelf space requirement or packing requirements. In other words, although it’s an item we sell as a stock item, we also apply the material to custom design products. We’re flexible that way – and we can be because we own our entire manufacturing cycle and supply chain.
This also makes us pretty unique. Whether you’re a big customer or not, we can work with you to design a product if we don't offer it off the shelf, and customise it specifically to your needs. And I think that's part of what ‘making it easy’ is about. Having that fully integrated bio-based manufacturing footprint allows us to provide these choices and that flexibility to customers, no matter how big or small they are.
Just a question in between: when you say compostable, do you mean home compostable or industrially compostable material?
Oh, industrial.
And do you feel consumers understand the difference?
Yes. Absolutely. We make sure of that - with customers, we really take the time to ask questions and listen, and then provide that expertise and clarity on what exactly they are getting.
Are your products more expensive – in other words, is there a green premium on your products?
Well, let me put it this way: I'm sure you've seen studies where consumers are willing to pay a premium for products that are better for the planet and better for human health. But we really want to make sure cost isn't an inhibiting factor for companies or consumers to start to engage with environmentally friendly products or materials.
Making it easy and affordable is really important to increasing the adoption rate. So, to answer your question, in some cases, our products are the same price as petroleum-based products; in some cases, they are better; and in some cases, they're more - but we're addressing an unmet need. And sometimes the packaging is more expensive, but we can create efficiencies that bring the overall price down. Take, for example, a food producer using packaging with a lot of air. We can work with that customer to design a package that puts more product on the shelf and drives more sales during peak time, so even if the packaging costs more, it drives higher sales.
These businesses are trying to understand their options while trying to enhance their business and we can help them solve real business problems while taking a step to improving their environmental and human health impacts.
What challenges have you encountered in the sustainable packaging industry, and how has good natured addressed them?
If you take a look at just sustainable packaging, as a whole, as an industry, I think, the biggest challenge is to frame it properly, because of the status quo problem. It’s a lot easier for the petroleum industry to maintain the status quo. People use the challenges we had and continue to have in the macro environment of the last three, four years, whether it's supply chain disruption, or whether it’s COVID, as a reason to maintain the status quo; or, one of my favourites, they say, they’re waiting for the perfect silver bullet - the solution that solves all. I try to tell people there isn't a silver bullet. I hate to break it to them, but I do - I say ‘please, there isn't a silver bullet. Take the first step’. And it's never been easier.
Look at the electric car industry. 10 years ago, we might have seen one Tesla drive by. People would say things like ‘I heard the batteries don’t really work’, or ‘there’s nowhere to plug them in’. Well, now look! I think we're on that same journey. This is a technology innovation, not purely a material transformation - although material is obviously a component of it, design is also critical.
I guess I'm an optimist, but to be honest, we've never been busier. We've never gotten more inquiries. Even though it may feel like we're still in the early innings of this transformation, I think that between the technology and the macro trends that are enhancing this development, things are really going to further accelerate in the coming years.
Can you discuss any recent innovations or upcoming advancements in your product offerings?
What I can say is, we have spent a lot of time on eating trends, and that’s where we are looking to expand our innovations. According to the data that we just released in our Ready- to-Eat report, convenience eating is really here to stay. And what was interesting in that report was that we found that 77% of the respondents said that sustainable packaging is a top priority. However, 43% basically said that it's the business's responsibility to take that action. What they are saying is that ‘It's important to me, but I expect the brands that I shop and the products I buy, to take a proactive step’.
We also found that, you know, people continue to still eat with their eyes. So, this designing of products and packaging that are very visual, focused on freshness, and food security is really, really, really important. So, we launched a GoodGuard tamper evident product line, which is a plant-based, tamper-evident product that provides very good visualisation. We have a tamper evident seal that’s a patent pending design, specifically utilising compostable materials, but we also use it for our kerbside recyclable bio-PET materials.
So, if I were to say in what direction are you thinking for the coming years, there is going to be a continued focus on eating trends and on food?
Exactly. We're working with food growers, producers, and retailers who may reach out for support with assortments that are targeting trends or introducing eating trends with better packaging designs – maybe leakproof or with a better locking tab that, once opened, would keep it fresher, longer. We're very much focused on that, and, as we continue to do these reports, they’ll tell us what our customers are looking for. And obviously, we're also talking to our own customers. So, we have multiple data points that we use - whether through our own research or through our discussions directly with our current accounts or a combination of both. I think this eating trend is something that we're really going to continue to concentrate on.
Is good natured products moving towards becoming a company with a packaging focus?
Yes, I would say packaging is definitely our primary business, or other categories that complement the packaging business.
So, how do you see the future? Obviously, with a focus on the food trend, but how do you see the company developing? Are there any other trends out there?
In terms of macro trends, while we don't want to build our business around customer policies, the White House National bio strategy announcement on transitioning 90% of petroleum materials to plant-based materials or bio-based materials, is, I think, a really good indicator that the consumer trends that we talked about are important.
I also think that the industry is changing: We're seeing at all Fortune 1000 company levels, private and public, that they're incentivising their leaders to find and take that first step - and I think we're also seeing generational leadership: new leaders taking bigger responsibilities with a different mindset in decision making.
As for us, we are positioning ourselves as a bridge between this innovative technology and our industry, whether it's materials or designs or eating trends. We want to be the ones that bring the two sides together, and we are doing so through customer centricity. Sometimes, if businesses can’t see their path forward, we can help to clarify that, by understanding their needs, and providing a recommendation that meets their specific goals. Whether it's a technical concept issue or innovative materials design, we can help translate that into a solution by offering choices. As the technology grows, more innovative materials become available and more innovative design.
And by bringing that technology and business together we want to inspire them to say ‘hey, this is easy and affordable - let's just do it’. If we can get 10,000 businesses to take one step, that’s progress. And that really sets the stage for the second step inside that company - or for that business owner or those business operators.
From a growth perspective, therefore, we're very optimistic and confident that this trend is not going away, and that this momentum is going to pick up its pace in the coming years.
And you're certainly well positioned, having more or less got a head start.
Exactly. And, we're learning and we're continuously growing. We know there’s been a lot of great innovation that’s taken place. We think we're very well positioned to take advantage of these continued trends. And also, we're a public company where we give individual investors a consideration to invest in a sustainable company in the public arena. We're pretty proud of that, too.
Solegear was founded by Toby Reid in 2006. Early on, the company entered into an R&D agreement with the University of British Columbia, using their labs to carry out product development. By 2010, Solegear had developed Polysole, touted as a recyclable, compostable bioplastic suitable for thermoformed and injection moulded rigid consumer packaging applications, which is based on PLA with a natural additive formulation; and a biocomposite called Traverse, consisting of a conventional thermoplastic matrix filled with bio fibres, such as rice husks, hemp husks or flax fibre. The company opted to scale up from pilot production by entering into tolling agreements, which allowed production on scales of up to several hundred million pounds. Besides producing on a commercial scale, the company also continued to collaborate with a number of Canadian research institutions on the further development of its technologies.
Toby Reid resigned as CEO and member of the board in 2015, after successfully taking ‘Solegear from the dream stage working out of my basement to where it is today’, he said.
Reid was succeeded by Paul Antoniadis.
