VF Corporation Archives - 国产吃瓜黑料 Online /tag/vf-corporation/ Live Bravely Mon, 05 Sep 2022 02:26:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://cdn.outsideonline.com/wp-content/uploads/2021/07/favicon-194x194-1.png VF Corporation Archives - 国产吃瓜黑料 Online /tag/vf-corporation/ 32 32 VF Corporation Announces Layoffs, Slashing Staff by 600 /business-journal/brands/vf-corporation-layoffs-600-employees/ Wed, 31 Aug 2022 21:33:52 +0000 /?p=2599459 VF Corporation Announces Layoffs, Slashing Staff by 600

Lagging sales of Vans in China likely contributed to the decision

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VF Corporation Announces Layoffs, Slashing Staff by 600

VF Corporation is laying off 300 employees and eliminating 300 open positions, according to an internal email sent yesterday to employees from company president and CEO Steve Rendle.

A copy of the email was first obtained by Denver Business Journal. OBJ confirmed its authenticity with VF.

The layoffs and position cuts are meant 鈥渢o align our people and capabilities with our highest strategic priorities,鈥 Rendle said in the email. 鈥淚 recognize that the past few years have been intense,鈥 he wrote. 鈥淎nd while the environment will likely continue to be marked by volatility, we have strong momentum in the majority of our businesses. At the same time, we鈥檙e working to improve those areas of the business that need attention.鈥

The email did not detail which departments or brands will be impacted by the reductions.

VF reported an increase in total revenue to $2.3 billion for . Brands like The North Face鈥攚hich saw an increase of $500 million鈥攈elped things along. Other assets, however, dragged the company-wide picture into gloomier territory. Vans alone was down almost $1 billion. Supply chain issues and the strength of the U.S. dollar were cited for continued lagging sales in China, a major market for Vans. In March, Kevin Bailey was appointed to the helm of Vans and charged with bringing back 鈥渂rand heat,鈥 according to VF.

VF having 35,000 employees worldwide at the end of its 2022 fiscal year, with global revenue up 28 percent, to $11.8 billion, year over year. In total, the company owns , including Smartwool, Timberland, and Icebreaker.

The elimination of 600 positions is hardly VF Corp.鈥檚 most significant workforce reduction. The company in 2006.

VF Corp. () stock went into August at $45.50 a share, and ended the month at $41.45.

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VF Corporation to Impose COVID Vaccine Mandate /business-journal/issues/vf-corporation-to-impose-covid-vaccine-mandate/ Wed, 20 Oct 2021 01:04:47 +0000 /?p=2566875 VF Corporation to Impose COVID Vaccine Mandate

The parent company of The North Face, Smartwool, and Timberland will require all office-based U.S. office employees to be vaccinated by Jan. 1.

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VF Corporation to Impose COVID Vaccine Mandate

Colorado-based VF Corporation announced in an internal email yesterday that, beginning January 1 of next year, the company will require all office-based U.S. employees to be vaccinated against COVID-19. Affected employees who do not secure an approved exemption by January 31 will be terminated without severance, according to a company official.

“Associates who are unable to receive a vaccine due to a medical reason, sincerely held religious belief, or other exemption provided by state or local law can request an accommodation/exemption,” wrote VF senior director of corporate affairs Colin Wheeler in an email to OBJ today. “If any associate does not have proof of an accommodation by January 1, they will be prevented from accessing our facilities and will be required to work from home, while they consult with their manager on next steps. If by January 31, they have not received an approved accommodation, they will be separated from the company and will not receive severance.”

Wheeler emphasized that the new rule affects only office-based U.S. employees for now. The company plans to roll out the next phase of its vaccine requirements for other U.S. associates in the spring.

“Given differences in local and national regulations, our EMEA [Europe, Middle East, and Africa] and APAC [Asia-Pacific] regions will continue to determine the most effective ways to ensure the health and safety of our associates in those regions,” Wheeler said. “As such, they are not subject to this new requirement.”

So far, employee response to the new regulation has been “relatively quiet,” according to the company. VF said that it hopes the advance notice of the new rule, coupled with transparency at the corporate decision-making level, will give all employees “the opportunity to make plans that are right for them.”

VF declined to specify how many employees are affected by the mandate.

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Eastpak, Owned by VF Corp., Relaunches in North America /business-journal/brands/eastpak-owned-by-vf-corp-relaunches-in-north-america/ Fri, 24 Sep 2021 00:32:28 +0000 /?p=2567029 Eastpak, Owned by VF Corp., Relaunches in North America

According to company leadership, Eastpak鈥檚 relaunch in the U.S. and Canada is unrelated to VF鈥檚 recent sale of adventure travel brand Eagle Creek.

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Eastpak, Owned by VF Corp., Relaunches in North America

The latest news out of VF Corporation isn鈥檛 as eye-opening as the Denver-based company selling its Eagle Creek brand to a former employee, but it does signal a shifting market focus for one of its smaller assets.

The company on Thursday announced that Eastpak, one of its portfolio pack brands founded in Boston in 1952 and now based in Antwerp, Belgium, is relaunching in North America.

Eastpak says the decision to return in full to the U.S. and Canada 鈥渃omes after several years strategically focused on European and APAC regions, where the brand has deep roots, high aspiration, and strong business growth.鈥

The brand鈥檚 president, Nina Flood, who VF appointed to the role in 2020, has targeted growth in North America after Eastpak initially entered the region 鈥渢hrough global e-commerce sites like Asos and Ssense and other high-end retail.鈥澛

With the launch of its U.S. website, us.eastpak.com, Eastpak is now 鈥渇ully platformed鈥 here with the goal of expanding its presence in 鈥渒ey U.S. and Canada fashion and lifestyle retailers.鈥

鈥淐onsumers have been clamoring for Eastpak in the North Americas鈥攚hich led to launching our new website and opening new retail channels,鈥 said Flood, who works out of VF鈥檚 European headquarters in Stabio, Switzerland. 鈥淚t鈥檚 amazing to see the potential for Eastpak as new consumers discover the brand and loyal ones can now get it much more quickly and easily through domestic retail.鈥

Flood is a VF veteran who has spent 17 years at the company and various brands. She previously served as president of Kipling Americas and, before that, she was VP of strategy and marketing at Nautica (which VF sold in 2018). In early 2021, she also took over another VF brand, JanSport, and now leads both JanSport and Eastpak globally.

Eastpak鈥檚 North American operation, which will be based at VF鈥檚 global headquarters in Denver, is now searching for a regional packs general manager. No other new positions have been announced, the company said.

Eastpak said its relaunch for Fall 2021 will include 鈥渋conic silhouettes such as the Padded Pak鈥檙 and Padded Zippl鈥檙 and also introduce soft carry and wheeled travel items, relatively new product categories for Eastpak since the brand was last distributed in North America.鈥

A VF spokesman said the decision to bring Eastpak back to North America wasn鈥檛 to compensate for the loss of Eagle Creek, which VF was planning to shutter before Travis Campbell announced he would buy the brand and keep it alive.

The company declined to disclose how much revenue it was losing with the divestment of Eagle Creek鈥攁nd again declined to say how much Campbell was paying for the brand.

Campbell, who broke the news of purchasing Eagle Creek to 国产吃瓜黑料 Business Journal earlier this month, tells us how he saved the brand before it dissolved. He had decided to move on from VF and was trying to plan his next career move when he shifted gears and put together a proposal to buy Eagle Creek from VF. It was a win-win-win scenario鈥攆or Campbell, VF, and Eagle Creek鈥檚 legion of fans.

鈥淣obody wanted to see the brand go away,鈥 Campbell told us. 鈥淚t was an economic decision that made sense for VF.鈥

As for the economic decision behind relaunching Eastpak in North America, that will play out in the coming years. The brand is part of VF鈥檚 鈥渁ctive鈥 segment that also includes Vans (one of VF鈥檚 鈥渃ore brands鈥 along with The North Face, Timberland, and Dickies), Supreme, Kipling, Napapijri, and JanSport. Eagle Creek was part of this segment until the sale.

VF doesn鈥檛 break out revenue for Eastpak, which it considers one of its 鈥渆merging鈥 (i.e., smaller) brands, but the company reported combined fiscal 2021 revenue for the active segment of $4.2 billion, with much of that total coming from Vans.

Look for more on VF鈥檚 financial performance next month when we recap the company鈥檚 fiscal second-quarter earnings, along with revenue and income results from the other publicly traded corporations that make up the OBJ Outdoor Index.

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Exclusive: Travis Campbell Acquires Eagle Creek /business-journal/brands/travis-campbell-acquires-eagle-creek/ Wed, 08 Sep 2021 22:00:35 +0000 /?p=2567114 Exclusive: Travis Campbell Acquires Eagle Creek

VF Corporation鈥檚 former president of emerging brands aims to lead the heritage travel company into the next era of success

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Exclusive: Travis Campbell Acquires Eagle Creek

Eagle Creek will live on.聽

VF Corporation announced today that Travis Campbell, the company’s former president of emerging brands, has acquired Eagle Creek from VF for an undisclosed amount. OBJ obtained a copy of the letter that VF President and CEO Steve Rendle sent to employees this morning. 鈥淚鈥檓 pleased to announce that VF reached an agreement with Travis [Campbell], who is now the new owner of the Eagle Creek brand,鈥 the letter read. 鈥淭his sale includes all Eagle Creek assets and liabilities. It does not include any Eagle Creek or VF associates.鈥澛

Campbell has served as president of Smartwool, GM Americas of The North Face, and president of the fly-fishing company Far Bank Enterprises. For the last 18 months, he has been president of emerging brands at VF, managing a group of companies which Campbell defines as each worth under $1 billion, like JanSport, Smartwool, Altra, and Eagle Creek.

OBJ broke the news in early June that VF would be sunsetting the iconic pack and travel brand by the end of the year because it 鈥渘o longer makes strategic or financial sense.鈥 It was not long after that Campbell鈥檚 wife asked him the obvious question: 鈥淲hy on earth are you not trying to buy that business?鈥澛

Two people with luggage
Opportunity knocks: when Eagle Creek was founded in 1975, only 3 percent of Americans owned passports, according to co-founder Nona Barker. Today that number sits at about 47 percent, still very low compared to other developed countries like Canada and the United Kingdom, where 70 percent of citizens hold passports. (Photo: Courtesy)

How Campbell Acquired Eagle Creek

Campbell had already decided to move on from VF and was trying to plan his next move. He had come to realize that he missed running, nurturing, and growing a single brand, but he wanted to keep his family rooted in Steamboat Springs, Colorado. That鈥檚 when he decided to put together a proposal for VF to buy Eagle Creek. 鈥淣obody wanted to see the brand go away,鈥 said Campbell. 鈥淚t was an economic decision that made sense for VF.鈥

But it devastated founders Steve and Nona Barker. In an exclusive interview with OBJ after VF鈥檚 announcement, Steve Barker said, 鈥Eagle Creek is a great and viable brand. It has a great future and shouldn鈥檛 die.鈥

Campbell said that when he approached VF with the idea of an acquisition, he got nothing but positive reactions. 鈥淚t was a fast transaction because of the level of trust that existed between me and VF,鈥 he said.

Rendle is happy with the outcome. 鈥淔rom the VF perspective, it enabled us to pursue an efficient and value-enhancing alternative to winding down the brand,鈥 he said. 鈥淔or Eagle Creek, its loyal consumers, and the outdoor industry overall, we鈥檙e pleased that the brand will continue on under the ownership of Travis, who has extensive industry knowledge and is a proven business executive. His career experience, including leadership positions with VF, The North Face and Smartwool, make him well-positioned to be the next steward of the Eagle Creek brand and continue its legacy.鈥澛

Campbell Reveals His Plans for the Company

鈥淚t鈥檚 equal parts exciting and terrifying,鈥 said Campbell, who has helped build many brands but has never owned one himself. 鈥淭his is a personal purchase. I am currently the sole owner. As the business grows and evolves, I鈥檒l likely bring in outside capital, probably more from banking than outside equity.鈥

Campbell said his first goal is to 鈥渄o no harm鈥 to the brand. 鈥淓agle Creek already makes great products in a number of categories,鈥 he said. 鈥淚 want to work on supply chain issues and get back into stock with the best selling products in our line. We will likely trim some products that aren鈥檛 working and over-index on the things that are working. I鈥檒l dig in and listen to former employees and current sales reps and figure it out.鈥

The Eagle Creek business is currently about 75 percent wholesale and 25 percent direct-to-consumer (DTC). 鈥淲e have a diverse customer base, everything from Grassroots specialty retailers to REI to The Container Store,鈥 Campbell said. 鈥淚 think the ratio will continue to evolve, and we鈥檙e going to want to get better at DTC because it can help the whole ecosystem by telling your brand story directly. But wholesale will always remain super important.鈥

Campbell acknowledged global travel is at a low point right now due to the pandemic, but he fully expects it to come roaring back. And he intends to be ready when it does. 鈥淭he cool thing is that the brand has already pivoted to close-to-home recreation, with strong sales in things like duffle bags and packing cubes,鈥 he said. 鈥淭hose products that facilitate local camping trips have been really working for the business while the business travel stuff has been lagging.鈥

The brand鈥檚 HQ will be in Steamboat Springs, Colorado, but Campbell confirmed the new Eagle Creek will primarily be a virtual organization. 鈥淚t鈥檚 tricky,鈥 he said. 鈥淢y desire would be to have everyone based in Steamboat, but the practical reality of housing constraints in mountain towns these days means there鈥檚 no way I鈥檒l be able to bring everyone in.鈥

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Eagle Creek to Cease Operations by Late 2021 /business-journal/brands/eagle-creek-to-cease-operations-by-late-2021/ Thu, 10 Jun 2021 02:02:31 +0000 /?p=2567718 Eagle Creek to Cease Operations by Late 2021

Parent company VF Corporation will shut down the decades-old brand by the end of the year

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Eagle Creek to Cease Operations by Late 2021

国产吃瓜黑料 Business Journal confirmed today that Eagle Creek, the luggage and backpack brand founded in 1975 and currently owned by VF Corporation, is slated to cease business operations by the end of the year. VF will discontinue the brand due to strategic and financial concerns.

“Yesterday we announced internally that after much evaluation and consideration, VF has decided to wind down the operations of the Eagle Creek brand,” says Craig Hodges, VF’s vice president of corporate affairs and communications.

Hodges told OBJ that VF determined it “no longer makes strategic or financial sense” to continue operating the brand. Most of the steps necessary to close the business, he says, will be completed by late fall.

“A small number of Eagle Creek roles will be eliminated,” said Hodges. “Some associates, however, will transition into roles that will fully support our JanSport and Eastpak brands. Our highest priority is to support every associate as they either transition away from VF or into a new position within the company.”

Throughout the shutdown process, VF will focus on keeping “associates and customers informed of changes and as they happen,” according to Hodges.

About Eagle Creek

Founded in 1975 by Steve and Nona Barker in the San Jacinto Mountains of California, Eagle Creek is now headquartered in Greenwood Village, Colorado, under VF’s portfolio of outdoor brands. VF has owned the brand since 2007, guiding its expansion in the backpack category and managing wholesale distribution around the U.S. and internationally to Canada and Europe.

The brand has won multiple awards for its gear over the years, including a Gear of the Year Award from Men’s Journal and a Travel Award from 国产吃瓜黑料 magazine, both of which it received in 2014.

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29 Ways to Build a Happier Company /business-journal/brands/29-ways-to-build-a-happier-company/ Sat, 10 Apr 2021 02:50:36 +0000 /?p=2567998 29 Ways to Build a Happier Company

Want to turn your business into everyone鈥檚 dream workplace? Follow these cues for a more fulfilled, productive, and inspired workforce.

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29 Ways to Build a Happier Company

There are jobs鈥攁nd then there are jobs. You know the ones: the gigs that make coming to work about so much more than punching the clock and collecting a paycheck.

The ones that fill the workday with camaraderie, a sense of purpose, and just plain fun. It shows in the policies and perks a company offers, in ways big (health insurance, parental leave) and small (ski days, free gear). And they pay off鈥攂ig time鈥攆or employers, who can count on loyal, productive employees who feel invested in the company鈥檚 success.

Here are just a few of the ways leaders in this industry go above and beyond for their workers. We hope employers and employees alike will consider this a menu of inspiration for greater workplace satisfaction. To say the past year has been a challenging one for businesses across the industry is an understatement. But despite all the hurdles, we still wouldn鈥檛 want to work anywhere else. This is why.

We asked industry members to nominate their workplaces for providing a superior employee experience. After combing through all 165 responses, these are our favorite ideas worthy of imitation.

Play 国产吃瓜黑料

CASE STUDY: Darby Communications, Asheville, NC

As any veteran of summer camp knows, getting out into the wilds together builds lasting bonds. So this boutique PR firm throws an annual staff campout, taking employees on a (paid) overnight excursion that has included paddling to an island campsite, fly-fishing lessons, tubing, and whitewater rafting over the past four years. 鈥淚t builds community on our team, so there鈥檚 a deeper connection between us,鈥 said Vice President Angie Robinson. The pandemic forced the team to cancel last year鈥檚 trip, but Darby replaced it with smaller outdoor gatherings, and when it鈥檚 safe, 鈥淲e鈥檙e planning on a blowout camping trip to bring back the tradition in a big way,鈥 said Suzanne Hermann, media relations director.

Pro tip: The financial barrier to this sort of retreat is low, points out Robinson. Camping is cheap, and Darby takes advantage of its clients鈥 gear and services (like whitewater guiding), so the total cost is only $200 to $300 per year for nine employees.

Bring Community to the Cafeteria

CASE STUDY: Skratch Labs, Boulder, CO

Every month, 29 full-time employees of nutrition/sports drink company Skratch Labs are invited to a communal breakfast at the office, courtesy of founder Allen Lim. Some staffers play sous chef, helping whip up Lim specialties like savory rice porridge, breakfast salad, and egg tacos. 鈥淚n the same way that a family is closer when they share meals around the table, we are a better team when we do the same,鈥 said CEO Ian MacGregor. Since last spring, the communal dining has shifted to live cooking lessons for employees at home. 鈥淲e prep and ship all necessary ingredients to each of our team members, then we all get on a massive video call and learn to make something,鈥 said MacGregor.

Pro tip: Even if you don鈥檛 have a full kitchen or a cookbook author for a founder, as Skratch Labs does, you can still break bread as a team: Think regular takeout gatherings or voluntary potlucks.

Skratch Labs cafeteria
Breakfast at Skratch Labs is always a fun and social experience. (Photo: Courtesy)

Embrace Inclusivity

Brands across the industry are beginning to meet the moment by ramping up DEI (diversity, equity, and inclusion) efforts.聽

Hit the Slopes

In what other industry do you get formal permission to go skiing when the pow is fresh? Here are just a few of the businesses that allow鈥攏ay, encourage鈥攑laying hooky on a snow day: Backbone Media, BoldBrew, Burton, Hala Gear/CKS Online, Meteorite PR, and Stio.

Commit to Fighting Climate Change

CASE STUDY: BioLite, Brooklyn, NY, and Peak Design, San Francisco, CA

BioLite (maker of camp stoves and lights) and Peak Design (a camera gear and travel bag brand) took their sustainability missions to the next level in 2018 with the launch of their Climate Neutral nonprofit. The organization helps other brands measure their total carbon footprints鈥攆rom sourcing to manufacturing to shipping鈥攁nd then offset them with carbon credits, earning certification. In 2019, 146 companies joined the program, representing a sizable commitment to reducing carbon emissions. 鈥淐limate Neutral makes me so proud to be a part of the organization,鈥 said BioLite Ecommerce Operations Manager Joseph Caravaglia. Hyden Polikoff, treasurer at Peak Design, agreed: 鈥淚 want the place where I put my time and effort to embody my values.鈥

Get Creative when Challenged

CASE STUDY: Mustang Survival, Burnaby, BC

When the pandemic hit last March, industry members counterpunched. Mustang Survival was one of them, switching from making its usual dry bags, drysuits, and ocean racing gear to churning out hundreds of thousands of waterproof/breathable protective gowns for healthcare workers (many other brands swiftly did the same with masks and eye shields). Not only did the pivot provide crucial PPE to hospitals across Canada, but it also allowed Mustang to hire 50 new employees (31 of them were still with the brand as of press time). 鈥淲e set up a school and ran new hires through extensive training on sewing and taping,鈥 said Mark Anderson, VP of engineering. 鈥淭hey learned skills directly transferrable to the apparel we make.鈥

Be Generous with Vacation Time

CASE STUDY: Roads Rivers and Trails, Milford, OH

Every winter for the past six years, as long as she鈥檚 been working at specialty retailer Roads Rivers and Trails, Manager Olivia Eads (pictured below on Pikes Peak) has taken at least a month off work to go climbing. Owners Bryan Wolf, Joe White, and Emily White highly encourage it with unlimited (unpaid) vacation time for all staff. 鈥淲e get the shifts covered and we make it work,鈥 said Wolf. In 2019, employees averaged 40 days off apiece鈥斺渁nd that鈥檚 just outdoor trips, not Christmas,鈥 Wolf noted.

Welcome Fido

Embracing pups in the office鈥 when we go back to the office, that is鈥攑ays off for both dogs (more walks) and employees (research shows that the presence of a furry friend reduces stress and boosts self-esteem). A few businesses that make room for our best friends: Arc鈥檛eryx, Kelty, Nemo, Ruffwear, and Xero Shoes.

Spread Profits Around

Some workplaces give everyone a different kind of promotion. All employees at 国产吃瓜黑料 (OBJ’s parent company) get stock options, which increase with strong performance or a promotion. 鈥淚t鈥檚 critical for creating alignments [between employees and the company] and incentives,鈥 said CEO Robin Thurston. When the company does well and hard work pays off, employees benefit, too.

Encourage Exploration

CASE STUDY: Cotopaxi, Salt Lake City, UT

How鈥檚 this for an antidote to job turnover? After 18 months, employees of this B Corp apparel and gear brand can cash in on their first of two 鈥渂ucket list stipends鈥: $1,000 to use on a dream trip anywhere in the world. After five years, the reward bumps up to $5,000. Recent employee trips have included touring Morocco, cycling the French Alps, and a fish-spearing, coconut-gathering survival excursion on a remote Caribbean island. 鈥淣umber one, we need to be able to attract and retain talent, and this is a unique perk,鈥 said founder and CEO Davis Smith. 鈥淎nd secondly, we want to make sure our employees are living the values of the business. We鈥檙e building a brand around adventure and exploring the world.鈥 Cotopaxi has spent nearly $100,000 on its bucket list payouts so far, he says, but, 鈥淭hese things pay for themselves鈥攜ou don鈥檛 have to pay higher wages to convince someone to join the team, or [deal with] rehiring.鈥

Pro tip: Cotopaxi helps employees make the most of their trips by holding learning sessions on topics like getting involved in local communities and traveling on a shoestring budget. 鈥淲ithin the team, there鈥檚 a constant sharing of travel deals,鈥 said Smith. 鈥淚f you keep your eye on deals, $1,000 can cover a trip somewhere really fun.鈥

Get Gear in Our Hands

CASE STUDY: NRS, Moscow, ID

Paddling gear can be expensive, as NRS鈥檚 employees well know. But lack of capital won鈥檛 ever stand in the way when someone pulls a rafting permit, thanks to the brand鈥檚 鈥渃ompany use鈥 stash of rafts, frames, coolers, stand-up paddleboards, inflatable kayaks, and drysuits. Employees can check out the gear for free. 鈥淲e鈥檝e had employees go on Grand Canyon trips, and they were able to get everything they needed and disappear with it for 18 days,鈥 said Steve Farley, key account manager. In 2019, 130 employees dipped into the stash for a total of 880 checkouts.

Pro tip: Appoint someone (or a small team, as NRS does) to manage the gear sign-out process and keep items clean, safe, and organized.

Give Us Long Weekends

The Leave No Trace Center for Outdoor Ethics offers half-day Fridays, and in summer, Outdoor Prolink switches to a four-10s schedule. Nobody鈥檚 head is really in the game at 3 P.M. Friday anyway.

Van driving into the distance in Moab
Long weekends can go a long way toward boosting employee happiness. (Photo: Courtesy)

Support Employees鈥 Life Goals

CASE STUDY: Outdoor Gear Exchange, Burlington, VT

Employees who get five years under their belts at this retailer have extra reason to celebrate: They qualify for its Living the Dream program, which awards a $5,000 grant for pretty much anything that makes their lives a little easier. 鈥淥riginally, it was to go on a dream trip,鈥 said Brian Wade, executive director of retail and service. But the list of acceptable uses has ballooned over the years to include down payments on homes, childcare, a new vehicle, or paying off debt. 鈥淚 can鈥檛 think of anybody who hasn鈥檛 figured out a way to use it,鈥 he said.

Pro tip: How does OGE afford it? 鈥淲e just do it,鈥 said Wade, noting that the total expense is a fairly small line item on the budget. 鈥淚t鈥檚 nice to honor the people who鈥檝e put in time. And the emotional impact of getting a lump sum is really great.鈥

Support New Parents…

CASE STUDY: 国产吃瓜黑料 PR, San Francisco, CA

In a country where his seven-person PR firm doesn鈥檛 legally have to provide any break for its new parents, owner Gordon Wright instead offers the best parental leave policy we鈥檝e seen in the industry: six months of leave at 80 percent salary, moms and dads alike. 鈥淚t feels like the聽right thing to do,鈥 Wright said. That kind of investment pays off in ways both tangible (an attractive carrot when looking for new talent) and intangible, says Senior Account Executive Kelsey McGraw. 鈥淕ordon and all the managers believe family comes first,鈥 she said. 鈥淭hey care for my well-being, and I don鈥檛 want to disappoint them. I want to work that much harder to see this company be successful.鈥

Pro tip: Doing without a key employee for six months poses challenges, but Wright notes that hiring a freelance substitute can help any company keep chugging along.

…And Not-So-New Parents

CASE STUDY: Patagonia, Ventura, CA

Parents industry-wide could be forgiven for daydreaming about a job switch to Patagonia. For one, there are the on-site daycares (in Ventura and Reno), which together care for 200 kids and offer tuition discounts based on income. 鈥淏eing able to nurse my son at daycare rather than pump every three hours was so huge,鈥 said Amy Garrahan, southwest sales manager. And聽if a primary parent needs to travel for work while a baby is still nursing? Patagonia covers travel expenses for a caregiver.聽Pro tip: Half of the brand鈥檚 daycare program is covered through tuition; 75 percent of the rest is recouped via tax credits, improved productivity, and employee retention. Companies that can鈥檛 add their own programs can still help parents with daycare stipends and more flex time options.

Bond over Workouts

Good: allowing employees to head out for a midday sweat break. Better: organizing group runs, yoga classes, bike rides, and even surfing sessions (like Nemo does on the New England coast) during the workday for communal exercise, stress relief, and team bonding in one fell swoop.

Surfer riding a wave
The Nemo team regularly takes trips together鈥攍ike this one to Long Sands Beach, Maine. (Photo: Courtesy)

Make Fitness Easy

CASE STUDY: Wolverine Worldwide, Rockford, MI

Spin classes, pickleball, pickup volleyball, and basketball: All in a day鈥檚 work at Wolverine. Opened in 2019, the on-campus, 29,000-square-foot The Rock facility also offers an indoor track, group fitness classrooms, and cardio equipment. Plus, membership is free for all 600-plus employees of eight brands. 鈥淣ot only does it help in getting people excited to work for Wolverine, but having a variety of activities available is really key for blowing off steam,鈥 said Merrell Senior Marketing Manager Lauren King.

Pro tip: Building an entire gym might not be in the cards. 鈥淏ut figuring out things that might not cost a lot of money, but add a lot to culture, is.鈥 See #16 and #18 for ideas.

Give Cash for Ski Passes

Or gym memberships, yoga classes, and other wellness perks of choice, as sales agency Caraway & Co. does ($150 per employee per year).

Invest in Employee Healthcare

CASE STUDY: Waypoint Outdoor, Seattle, WA

Perks like gyms and company bike rides are great, but a real commitment to employee health should be built on a foundation of high-quality, affordable health insurance. This sales agency for brands like Klean Kanteen and Smartwool takes that to heart, covering 100 percent of premium costs for its employees. That鈥檚 made a huge difference for sales rep Carly Morava, a cancer survivor who鈥檚 been with the company for three years. She鈥檇 wanted to switch careers from retail to repping, but was afraid she wouldn鈥檛 be able to afford the insurance she needed. Unlike other workplaces she鈥檇 considered, Morava said, 鈥淲aypoint pays for everything, and it鈥檚 a really good plan.鈥

Help People Climb the Ladder

CASE STUDY: KEEN, Portland, OR

In a workplace just as on a mountain, sometimes the right guide can make all the difference. That鈥檚 why Keen added formal mentoring to its benefits. The Career Compass Program matches eager employees with seasoned volunteer 鈥渃oaches鈥 for structured career advice and development. Pairs meet twice a month to set goals and track progress. Though the program is open to everyone, says Global Communications Manager Mindy Montgomery, women make up the bulk of the participants鈥斺淩esearch shows that women utilize formal mentoring programs more because men have greater access to informal mentoring opportunities,鈥 she noted. Senior Compliance Specialist Elsa Clements credits the program with helping her land a promotion in 2019. 鈥淚t was super-valuable in giving me confidence,鈥 she said. She worked with her coach on strategies for putting her best foot forward, and 鈥淚t was really good for me to have that framework when I sat down with my manager.鈥

Pro tip: Career Compass facilitators consider applicants鈥 communication style and personality when setting up pairs. 鈥淚f the participant and coach have trouble communicating, they鈥檙e going to have a hard time forming a connection,鈥 said Montgomery, 鈥渨hich is a crucial component to a successful coaching relationship.鈥

Support Education

Help us advance by springing for certifications, courses, conferences, and skills clinics. Take Vail Resorts: Employees can apply for a $2,500 Educational Ascent Grant to fund a college degree (vocational to Ph.D.) or certificate (such as EMT).

Let Employees Drive Improvements

CASE STUDY: Hydro Flask, Bend, OR

Hydro Flask holds its own kind of holiday two or three times a year: the Better Future Day. Each one features a menu of activities for employees to choose from, all conceived and planned by fellow employees. Recent options have included guided meditations, art workshops, public speaking courses, and SUP sessions. 鈥淚t could be anything from, 鈥業t鈥檚 time to reorganize our shelves鈥 to 鈥楲et鈥檚 bring in an expert on a topic like racism and have a difficult discussion,鈥欌 said Lucas Alberg, senior manager, PR and brand communications. Continually working on company culture is a bedrock value for Hydro Flask, says Senior HR Generalist Ryan Combellick, 鈥渂ut if it鈥檚 something that鈥檚 just coming from the top down, it can feel forced.鈥

Pro tip: Don鈥檛 overthink the scheduling, and just do it. 鈥淭here鈥檚 never a good time for this, but it鈥檚 imperative that you make it happen,鈥 noted Alberg. 鈥淧roductivity may be lost that day, but it鈥檚 taking one step back and two steps forward for the company.鈥

Encourage Clubs

Supporting an employee resource group (ERG), a club dedicated to a particular identity or interest鈥攆rom working parents to sober employees to members of specific ethnicities or religions鈥攃ultivates belonging and community. VF Corp. has put significant resources into its ERGs since 2017.

Make the World a Better Place Far Away鈥

CASE STUDY: Superfeet, Ferndale, WA

When this insole brand decides to give back, it goes big. Superfeet donates 1 percent of its profits to charity, including an ongoing public-health service trip to Guatemala to build latrines and rainwater-capture tanks for small rainforest villages. 鈥淚 wanted our employees to be engaged with the charities we鈥檙e working with,鈥 said Director of Outreach and Fit Jeff Gray, who runs the program. 鈥淗ow can we get down on our hands and knees and get dirty and make a difference? It鈥檚 about writing the check, then also diving in.鈥 The brand has taken eight to ten employees on the (fully paid) trip for the past four years, an opportunity that has proven so popular that Gray has to pull names out of a size-17 running shoe to select participants. Superfeet鈥檚 commitment to nonprofits builds loyalty and helps attract employees, said Gray: 鈥淪o many are grateful to be able to work within this culture.鈥

Pro tip: Got the cash鈥攐r the time鈥攖o donate? Choose beneficiaries carefully, says Gray. He screened a number of nonprofits before choosing six to support based on how well their core values matched Superfeet鈥檚. 鈥淭hen you can build that relationship, bond, and do some great work together,鈥 he said.

…And Closer to Home

CASE STUDY: Big Agnes, Steamboat Springs, CO

For a company making gear tailored for use on the trail, volunteer trail maintenance felt like a natural way to live out brand values of land stewardship and community involvement.

So Big Agnes zeroed in on the Continental Divide Trail, which passes within two miles of company HQ, officially adopting the 72 miles from nearby Rabbit Ears Pass to the Wyoming border in 2018. Since then, the brand has organized several trail work days on their section every year. 鈥淚t鈥檚 a cool opportunity to see the owners of the company really caring about our public lands, and [having] the employees be part of that,鈥 said Product Developer Paige Baker. And though the point of the trail work is giving back, it doesn鈥檛 hurt brand image with customers, either, says co-owner Len Zanni, who notes that the marketing team produces blog posts and publishes catalog essays about the project.

Pro tip: Scale give-back projects according to your workplace鈥檚 size and goals. 鈥淭hink about what you care about, then figure out what organizations or areas could use your help, and how much help you can lend,鈥 said Zanni. 鈥淚f you鈥檙e a smaller organization, maybe you can put someone on a nonprofit board, or donate money or time.鈥

Remote Work Policies that Work for All

When the pandemic ends, many will still appreciate the flexibility to work remotely. Evans says the best policies let employees work wherever they鈥檙e most productive. Her company, The Ready, traded its office for monthly stipends for home office upgrades, co-working spaces, or rent for optional group offices.

Fair Profit Sharing

Sharing success fosters an environment of collaboration, not competition. Email marketing firm ConvertKit diverts a chunk of its profits to a shared pool that鈥檚 distributed to all through a formula that gives a little extra to those with the longest tenure.

Employee Connection

One easy way to help build connection among virtual workers: Start meetings with a five-minute check-in, prompted with questions like, 鈥淲hat was your weekend highlight?鈥

Self-Set Salaries

Want employees to really feel they鈥檙e being paid what they鈥檙e worth? Let them choose their own salaries, like tomato-packing brand Morning Star has done for decades鈥攁nd make all of them public.

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Icebreaker鈥檚 Ambitious Goal to Be Plastic Free by 2023 /business-journal/issues/icebreaker-plastic-free-by-23/ Fri, 05 Feb 2021 12:58:47 +0000 /?p=2568479 Icebreaker鈥檚 Ambitious Goal to Be Plastic Free by 2023

This week, we caught up with Cameron Walker, general manager of Icebreaker North America, to learn more about the VF-owned brand鈥檚 environmental campaign to completely remove synthetics from its collection

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Icebreaker鈥檚 Ambitious Goal to Be Plastic Free by 2023

To celebrate turning 25 last year, Icebreaker passed on the birthday blowout for itself and instead decided to throw a party for the planet.

The New Zealand-based global apparel brand decided it would honor the earth through an ongoing environmental campaign designed to eradicate synthetics from its entire collection within three years.

鈥淧lastic Free by 鈥23鈥 is the ambitious campaign that Icebreaker launched last fall, which is ramping up as 2021 gets underway.

Icebreaker, a subsidiary of VF Corp. since late 2017, is already known for its use of natural materials, notably merino wool, across its apparel line, with 87 percent of Icebreaker鈥檚 collection composed of natural fibers. But the brand felt converting the remaining 13 percent to natural by 2023 was the right thing to do鈥攆or its own brand ethos, for its customers, and for the earth.

To better understand why Icebreaker set this goal and how it plans to realize it, we spoke with Cameron Walker, the brand鈥檚 general manager for North America. Walker, who is based in Icebreaker鈥檚 North American headquarters in Denver, shared some of the reasoning behind 鈥淧lastic Free by 鈥23鈥 and what it means for both the brand and its supply chain partners.

Why is Icebreaker undertaking this plastic-free goal, why now, and how do you get this done in three years?

At Icebreaker, we believe that nature has the answers, and we shouldn鈥檛 need to seek out synthetic materials to make apparel. Twenty-five years ago, this brand was founded on the belief that there was a better way to make apparel. This began with nature鈥檚 hero, merino wool, and we want to continue our move to natural, bringing consumers and the industry along with us. Taking on 鈥淧lastic Free by 鈥23鈥 as a goal is an evolution of our brand and an indicator of what鈥檚 at the core of our DNA.

"Man in blue shirt and glasses looking seriously at the camera"
Cameron Walker, general manager of Icebreaker North America, confirmed the company’s goal to phase out plastics by 2023. (Photo: Courtesy)

Why now? We know that a reliance on fibers derived from fossil fuels creates intrinsic environmental issues such as microfiber pollution, lasting plastic waste, and issues related to petrol extraction. Thirty-five percent of the microplastics in the ocean are from synthetic textiles. Merino degrades over time while synthetics and plastic just break into smaller pieces, continuing the cycle of pollution and environmental impact. This is about continuing to protect nature. We also know it鈥檚 important to our consumer, the natural progressive, who cares about the impact the products they buy have on the world. They also are not willing to necessarily give up on performance. We know this consumer base has accelerated with Covid as people continue to seek out purpose-led and sustainability-driven brands.

When it comes to three years, this is a journey over time because our product team goes through each of our pieces and determines the best way to continue to get the performance we previously had using natural materials. It鈥檚 a process powered by us and partners鈥攚e work closely with yarn and material partners to explore natural alternatives to synthetic-based technologies.

What is VF鈥檚 role in supporting this initiative鈥攕trategically, financially, and tactically鈥攔elative to Icebreaker’s effort?

VF has obviously been a champion of the work we are doing and helps to set standards and guidelines for us with the broader Made for Change initiative, driving toward science-based targets and helping to set standards for all brands around areas like materials. We are lucky to be part of a company that has such a strong focus on protecting the environment. Within the company, we also get access to a great central sustainability team that understands materials and sustainability. They act as a great partner for us and have existing relationships we can access.

So Icebreaker will no longer blend any polyester or spandex into products? What is the benefit for consumers (and the earth)?

Where we can, we are removing synthetics altogether from our fabrics. However, in those instances where we absolutely need to achieve certain properties like stretch or reinforcement, due to the need for our fabrics to perform at the highest level, sometimes we do need to keep certain types of fibers. For these cases, we are looking for alternative fibers that come from renewable sources, while still delivering the right performance for our fabrics.

Selecting these new types of fibers is a lengthy process since we do have a rigorous vetting process to make sure we choose solutions that have a lower environmental footprint. We work closely with fiber suppliers to understand the whole lifecycle of the fiber, from its original feedstock to the final spinning process, to assess if it is a candidate for our products. This is a challenging process as you can imagine, as this part of industry is limited. Partnership plays an instrumental role in not only the research portion but production and implementation as well.

So far, have you found a natural alternative to spandex that meets performance requirements?

We’re partnering to find solutions to tougher problems. In terms of solving that specific one, I can’t say at this point. That鈥檚 our general answer on that front. Looking across the board with this initiative, some things exist, some don’t, but everything is on the table. The challenges is, there’s not an answer for everything. I come from a world working in technology where stretch goals are always there. What we’re trying to do is similar. We鈥檝e set a big goal that鈥檚 driven by our central team in New Zealand. They came up with this vision, and it’s exciting to be a part of something that you鈥檙e trying to push further.

How are you also addressing polybags, packaging, and other plastic waste within the supply chain or the production, distribution, and selling processes?

Most of our packaging is already plastic free, using FSC-certified paper sources. We are now on a mission to eliminate the LDPE bags that we currently use to protect our garments during transit from factories to consumers. In our quest to find the most sustainable bag currently available on the market, we are about to trial a new FSC-certified paper bag which is all natural and curbside recyclable. We are also looking at what we do with our mailers as well and are encouraged by the fact that many new renewable options are becoming more readily available to brands and consumers.

You were a very early member of the Plastic Impact Alliance, co-founded by our editorial director, Kristin Hostetter, in 2019. Why was that an important group for you to join?

Three years ago, when Icebreaker wasn鈥檛 part of VF, it was difficult to have impact without scale. You need to grow your brand to have that impact. Now that we have that amount of scale, it’s super important for everything that we’re doing from both an awareness and a sales perspective. The Plastic Impact Alliance is important, A) for impact, and B) for thought. The Alliance allows people to enact change and make a shared impact together. We try to leverage that wherever we can, and the Alliance allows us to do that while working with other brands.

What message do you want your retail partners to convey to consumers about this initiative?

Icebreaker is on a journey to be 鈥淧lastic Free by 鈥23.鈥 Icebreaker wants to use our platform to educate people about the plastic problem and use our product to help drive toward a new solution in apparel. Supporting Icebreaker and our purpose helps protect nature while allowing consumers to wear a product that comes with all of the key performance benefits of merino.

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How to Start an Employee Resource Group at Your Company /business-journal/brands/how-to-start-an-employee-resource-group-at-your-company/ Sat, 12 Dec 2020 11:27:26 +0000 /?p=2568632 How to Start an Employee Resource Group at Your Company

Employee Resource Groups can benefit your company culture and promote success both internally and externally. Here鈥檚 how to start one鈥攁ny why you should.

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How to Start an Employee Resource Group at Your Company

Studies show that cultivating belonging in the workplace is crucial to employee happiness, retention, and overall productivity. In an inclusive work environment, employees feel like they can show up as their true selves鈥攍eading to more honest communication and less staff churn. One of the best ways to build inclusivity in the workplace is through Employee Resource Groups, or ERGs.

What Is an ERG?

At its core, an Employee Resource Group (sometimes called an Affinity Group), is an employee-led club. Although ERGs focused on diversity, equity, and inclusion are perhaps the most well known, an ERG can tackle any cause employees feel strongly about. ERGs can also be a way of celebrating a shared identity, or a way to invest in the professional development of historically marginalized or underrepresented groups.

According to Aiko Bethea, equity consultant and founder of RARE Coaching & Consulting, 鈥淓RGs are the glue to the culture of an organization.鈥

Examples of some hypothetical ERGs:

  • Working Parents
  • LGBTQ+ Employees
  • Latinx Employees
  • Mental Health Advocacy Group
  • Followers of Islam
  • Employees for Fair Pay
  • Remote Workers
  • Immigrants and Expats
  • Sustainability Committee
  • Differently Abled Employees
  • Young Professionals

If you feel like something is missing in your company culture and your coworkers feel similarly, consider starting an ERG.

Why ERGs Matter

A report from Bentley University found that almost 90 percent of Fortune 500 companies have ERGs, and that on average, 8.5 percent of employees at U.S. companies are ERG members. ERGs make employees feel more welcome at work and offer an opportunity to be heard and valued by leadership, building a sense of loyalty and connection.

鈥淓RGs are a great way for C-suite leadership to be mentored by their own employees about topics they may not encounter every day,鈥 said Bethea. 鈥淓RGs can help leaders understand how their own actions may indirectly impact individuals they don’t have proximity to. It can also help them keep their finger on the pulse of the company culture.鈥

ERGs offer anyone, regardless of job title, the opportunity to build valuable leadership and problem-solving skills. In certain cases, they can even function as focus groups for product testing. At their core, ERGs help build companies that better reflect the demographics of this country; they are, therefore, the perfect tool for guiding business decisions that promote more inclusive products and services.

VF Corporation, the parent company of The North Face and Smartwool, treats ERGs as a way to 鈥渇oster diversity of thought and help transform individual differences into insights and capabilities that fuel growth.鈥

Since 2017, VF has made a serious effort to promote ERGs within the company. VF leaders have developed toolkits for establishing and maintaining groups, held quarterly ERG steering committee meetings, offered regular communication and learning opportunities related to ERGs, and worked to engage ERG members with VF鈥檚 board of directors.

The company has benefitted greatly from its efforts to promote inclusion and foster the creation of ERGs. Follow the steps below, and you can help your organization reap the same rewards.

Getting Your ERG Started

To start an ERG, you need at least two passionate individuals at your company and a desire to create a better company culture.聽Although ERGs often grow over time, bigger isn鈥檛 necessarily better鈥攚hat鈥檚 important is that your ERG fills a need and that participants are actively invested.

Step 1

If there are no (or few) existing ERGs at your organization, make sure you speak with HR and obtain buy-in from leadership before getting started. If possible, try to recruit an executive sponsor鈥攕omeone in a position of leadership with access to the C suite鈥攖o empower your group and give it visibility, without taking away its autonomy. Although not strictly necessary, getting leadership on board can ensure the success of your ERG in the long term.

鈥淟eadership needs to bolster and support ERGs, to be ambassadors for them, as if they were a critical part of their strategic plan,鈥 said Bethea.

If you鈥檝e underscored the value of your ERG to leadership and still have trouble obtaining buy-in, you may need to recruit more people to show that it鈥檚 not a niche request but one with widespread support.

Step 2

Next, assemble your ERG team and establish a communication plan. Workshopping ideas and getting to know each other over lunch is a good option. When recruiting members, identify some people who are willing to take on leadership roles.

Remember: ERGs are not cliques. They need to be accessible to anyone who wishes to join.

鈥淓RGs need to be inclusive,” said Bethea. “If you have a Black ERG, it needs to be open to anyone who鈥檚 Asian, anyone who鈥檚 white. The trick is to make sure your ERG is inclusive enough that learning is happening, so you can really have an impact on the organization.鈥

Hammer out the logistics, such as when and how often you鈥檒l meet, how you鈥檒l communicate, and what roadblocks you might potentially face. Recruit others by advertising the ERG in your company newsletter, at your next all-hands meeting, or even with posters around your office.

Step 3

Once you鈥檝e recruited your first members and have secured company support, assess your company鈥檚 needs and set goals for your ERG. Are you trying to attract more diverse talent to your company? Is there currently a pay gap? Do you have ideas for making your office and operations greener?

A mental health advocacy ERG, for example, might seek to reduce stigma around mental health through social connection, education, and peer support, leading to a more productive workplace. Although ERGs will foster community, they should never just be about food, fun, and festivities.

鈥淓RGs are about people saying, 鈥榃e鈥檙e here for it鈥欌攁cknowledging that there鈥檚 a problem and being part of the solution,鈥 said Bethea.

Your ERG should align with your company鈥檚 broader goals. As you craft your mission statement and charter documentation, make sure to include how it would support core company values. By defining your group鈥檚 purpose and scope, you鈥檒l draw in new members, demonstrate its value to the company at large, and maintain a focused agenda.

Step 4

Finally, launch your ERG, identifying long-term goals and definitions of success. Get to work brainstorming possible events for your first year.

Avoiding Common Mistakes

There are several pitfalls that can kill an ERG in its early stages. Here are the issues to avoid.

Lack of Funding

From an operational perspective, it鈥檚 critically important that your company provides financial support to your ERG.

鈥淥rganizations shouldn鈥檛 force ERGs to be happy with crumbs off the table,鈥 said Bethea. 鈥淭hey shouldn鈥檛 feed them a narrative of scarcity but rather one of abundance. They should invest in ERGs willingly.鈥

Individuals should create budget proposals that outline the potential impact of any funding, Bethea says. It’s also important for those taking on the labor of running ERGs to be compensated for their time: 鈥淓RG leaders are doing critical work for an organization, and often it鈥檚 the people who are the most underrepresented taking on the lion鈥檚 share of the effort. What happens is, you end up getting free labor from people who need the most support.鈥

Lack of Collaboration

If there are multiple ERGs at your company, it鈥檚 helpful if all groups communicate and coordinate regularly. ERGs should avoid the tendency to isolate themselves from one another.

鈥淐ompanies should require ERGs to share their strategic plans so they can identify opportunities to collaborate and avoid duplicative work,鈥 said Bethea, who suggests that ERGs share budgets and work together on events at least twice a year. 鈥淵ou really want ERGs to function as a collaborative group of culture-keepers.鈥

ERGs that isolate themselves have a tendency to become territorial, said Bethea: 鈥淵ou can get people feeling like they own a topic.鈥

To avoid the problem, ERG leaders should make a point of appreciating intersectionality and welcoming a diverse membership. Help encourage diversity by advertising your meetings publicly and holding them at times when working parents can participate.

鈥淭he last thing you want is for your ERG to become an echo chamber,鈥 said Bethea. 鈥淭he way you start your ERG is the way people are going to perceive it down the road.鈥

That said, ERGs can鈥攁nd should鈥攕imultaneously preserve safe spaces for members to connect exclusively with others who share their experience.

“There’s a big tension with saying ERGs should be for everyone because there’s an assumption this means taking away safe spaces,” Bethea said. “I definitely believe that those safe spaces need to be preserved. You can still have activities that are only for specific groups of employees to support and connect with one another. You can say, 鈥榃e鈥檙e having an event where Black employees can connect and share in a safe environment.鈥 Usually when you say something like that, people honor it.鈥

Lack of Accessibility

An ERG that doesn’t make it easy for newcomers to get involved is doomed to fail. Participation should be made as easy as possible for ERGs to thrive.

ERG leaders can support strong engagement by convening regularly, publishing agendas, and sending notes to members who aren鈥檛 able to attend meetings. If your company uses Slack, you can create a channel in which members can ask questions, share relevant articles and ideas, and maintain regular communication.

If All Else Fails…

If your ERG hits a roadblock or you鈥檙e in need of advice, consider seeking out an expert consultant like Bethea. Since ERGs are volunteer-led, it鈥檚 important to remember that you might not nail everything immediately. Follow all the steps outlined here, and you鈥檒l be off to a good start.

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This Sustainable Packaging Solution Could Cut Your Company鈥檚 Shipping Waste by 96 Percent /business-journal/issues/repack-shipping-solution-for-outdoor-companies/ Thu, 03 Dec 2020 13:02:11 +0000 /?p=2568665 This Sustainable Packaging Solution Could Cut Your Company鈥檚 Shipping Waste by 96 Percent

The reusable packaging service RePack helps companies reduce their carbon footprint while building brand affinity

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This Sustainable Packaging Solution Could Cut Your Company鈥檚 Shipping Waste by 96 Percent

The guilt of e-commerce is real. On Cyber Monday this year, U.S. shoppers spent a record $10.8 billion in less than 24 hours, generating an incredible amount of packaging waste in the process.聽For outdoor industry consumers鈥攑eople who care about the environment and sustainability鈥攔eckoning with that kind of excess hits close to home.

鈥淚 cringe when I throw something away these days,鈥 said Mitch Barlas, president of RePack North America, a returnable and reusable packaging company. 鈥淚 know that when we throw things away they don鈥檛 just disappear鈥攖here’s a cost involved.鈥

RePack, the brainchild of Juha M盲kel盲, was founded in Finland in 2011 in order to alleviate the waste generated by online shopping. Finland is the world鈥檚 leading paper pulp producer, but M盲kel盲 knew paper wouldn鈥檛 be around forever. Inspired by Finland鈥檚 bottle return system, he envisioned RePack as a shipping alternative to single-use poly mailers and cardboard boxes. For half a decade, the company has successfully replaced both for more than 100 companies throughout the European Union.

Last January, RePack launched its reusable mailers in the United States, and shortly thereafter launched in Canada due to demand (there, the company is working in partnership with Canadian Post). Although RePack鈥檚 North American client roster remains small and primarily consists of fashion brands, all of its pilot runs have been successful.

鈥淲e’re finding that when someone receives their order in a reusable package, there’s this a-ha moment. They don’t have to make that trip out to the garbage can with all this packaging,鈥 said Barlas. 鈥淔or the end-user, there鈥檚 a connection with the reusable packaging that translates back to really strong brand loyalty and recognition that the brand cares about the environment.鈥

Overhead show of a person in shorts and a T-shirt putting something into a yellow mailer next to a table covered in bike parts
RePack mailers can be used for hardgoods or softgoods, making them a perfect solution for the outdoor industry. (Photo: Courtesy)

The Lifecycle of a RePack

Made from 100 percent recycled plastics, RePacks are woven polypropylene (think Ikea bags) that come in three sizes, all of which can be sealed to half or three-quarters of their maximum size depending on what鈥檚 being shipped. Companies that sign on with RePack are provided the reusable mailers and instructed on how to use them, a process that is similar to sealing a giant envelope with a strip of tape (which RePack provides). Although they鈥檙e ideal for softgoods large and small鈥攃lothing, boots, hiking backpacks鈥攖he mailers are water-resistant and can accommodate hardgoods like ski goggles and lanterns, too.

鈥淪candanavian Outdoor, one of our first RePack users in Europe, has been experimenting with shipping hardgoods rather than just softgoods and apparel,鈥 said Barlas. 鈥淭hey use eco-friendly content protection within the envelopes.鈥

Substantial and durable, RePack packaging can be used anywhere from 20 to 50 times. Once they get to the end of their lifecycle, the worn-out packages are upcycled into reusable shopping bags. Companies can opt to pass on some or all of the cost, about $3.70 per use, to customers. Once a company fills an order, the end-user folds the packaging down into a small envelope, sticks on the included return label, and drops it off at any USPS location. The envelope is then sent to RePack鈥檚 warehouse in Salt Lake City, where it鈥檚 cleaned and distributed back to brands. Every time a RePack goes through the system, its carbon footprint shrinks.

鈥淩ePack reduces packaging trash from shipping by 96 percent,鈥 said Barlas, adding that the company is developing a new sealing solution to replace tape in 2021. 鈥淓ven considering the return trip to our warehouse, RePack lowers overall carbon emissions from shipping by up to 80 percent, depending on the type of single-use packaging you鈥檙e replacing.鈥

Getting on Board

All of RePack鈥檚 clients are united by a desire to reduce their impact, and many employ fair-trade practices or use low-impact materials as well. Getting listed on RePack鈥檚 online participant directory is one of the benefits of joining up.

鈥淥ur best clients right now are companies that are thinking deeply about the environment and taking concrete steps to mitigate climate change,鈥 said Barlas, noting that most end-users share those beliefs and are excited about RePack, despite the additional cost. 鈥淲e鈥檙e here to help them dive deeper into sustainability.鈥

In Europe, plenty of outdoor brands are using RePack, including Salomon, which is currently in the midst of a holiday test-run. Barlas sees the U.S. outdoor industry and its customer base as an ideal market for RePack. So far, however, no American outdoor companies have signed up.

鈥淚鈥檝e personally talked to Arc鈥檛eryx, The North Face, Mountain Hardwear, and a couple other smaller brands,鈥 said Barlas. 鈥淏ut what happens鈥攁nd we see this fairly often with large-scale brands鈥攊s that the idea is presented to the fulfillment team and they don鈥檛 want to be bothered. That鈥檚 what happened at The North Face. We got very far with the CEO of [TNF’s parent company] and then it gets to one of their fulfillment centers and the director said no way.鈥

Barlas remains optimistic that companies will come around, but he says it鈥檚 going to involve leaning on operations teams.

鈥淩ePack does require a slight change for fulfillment and operations but we鈥檝e modeled it after a poly envelope so it鈥檚 not too deep a dive,鈥 he said. 鈥淲e鈥檙e also offering a lot of support and hand holding.鈥

A yellow mailer, a blue jacket, and a black shoebox lined up in a row
RePack’s sustainable packaging solution can be adjusted to fit a wide array of product sizes. (Photo: Courtesy)

2021 Forecasting for RePack

In January, RePack will launch with a high-volume luxury fashion retailer, the first test of its scalability in the U.S. Thanks to half a decade of successful operations in Europe and two strong manufacturing partners in Asia, the company remains optimistic that taking on larger clients, and thus higher volumes, won鈥檛 present a problem. RePack is also in talks with the USPS to negotiate a lower rate for reusables and is considering opening two more distribution centers stateside.

鈥淩eusable packaging is new to everyone, including us, and we want to do it collaboratively,鈥 said Barlas. 鈥淲e want to help brands implement it, because the ultimate winner is our planet. That鈥檚 what鈥檚 at stake here.鈥

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VF Acquires Streetwear Brand Supreme /business-journal/brands/vf-acquires-supreme/ Tue, 10 Nov 2020 05:06:51 +0000 /?p=2568801 VF Acquires Streetwear Brand Supreme

The parent company of The North Face has announced plans to add the direct-to-consumer streetwear company to its portfolio of brands

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VF Acquires Streetwear Brand Supreme

VF Corporation, the parent company of Smartwool, Timberland, and聽The North Face, announced today that it has signed聽a definitive merger agreement to acquire the direct-to-consumer streetwear company Supreme. The deal is set to be completed before the end of the year.

Supreme, which sells apparel, accessories, and footwear, is no stranger to the outdoor industry. The brand has聽collaborated for years聽with Timberland and The North Face; its latest crossover project is a new聽TNF jacket collection聽for fall 2020. Well known for its direct-to-consumer digital presence, the company will bolster VF’s efforts to transition to a more digital-first business model, according to a statement released today.

“The Supreme brand will further accelerate VF鈥檚 hyper-digital business model transformation,” said VF CEO Steve Rendle. “VF is the ideal steward to honor the authentic heritage of this cultural lifestyle brand while providing the opportunity to leverage our scale and expertise to enable sustainable long-term growth.”

James Jebbia, Supreme’s founder, said of the merger, “We are proud to join VF, a world-class company that is home to great brands we鈥檝e worked with for years. This partnership will maintain our unique culture and independence, while allowing us to grow on the same path we鈥檝e been on since 1994.鈥

In its announcement, VF says that Supreme “offers a $1 billion global opportunity over time through international and direct-to-consumer expansion, core pillars of VF鈥檚 2024 strategy.” The new brand is expected to contribute at least $500 million in revenue to VF by 2022.

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