Alfred Marcus, Edson Spencer Endowed Chair in Strategy and Technological Leadership

Many traditional companies find themselves at a crossroads these days. After an unbroken record of success, the products they’ve been producing for many years aren’t generating excitement among consumers or growth for their brand. As they seek new solutions to ensure a solid future for their organization, some may overlook an answer that’s right in front of them: products that focus—and deliver on—sustainability.

While some may view sustainability in business as an example of good intentions without real bottom line benefit, I’ve researched and found many companies realizing success with a sharper focus on sustainability. They’re applying shrewd business principles to these sustainability concepts, and they’re reaping rewards as a result. In my new book, Innovations in Sustainability: Fuel and Food,  I look at current examples of major companies revamping their approach and attitude respond to the increasing demand for products which are sustainably produced.

Sustainability halo

For some of the leaders in consumer packaged goods and food production, a jump-start has been achieved by buying smaller companies with a significant “sustainability halo.” That’s why we see General Mills acquiring Annie’s, Cascadian Farm, EPIC, Food Should Taste Good, and Lärabar. It made sense for Kellogg’s to acquire a well-respected brand like Kashi, and we’ve seen Coca-Cola buying up juice manufacturer Odwalla.

These giant brands have realized that the future depends on their ability to adapt to a world where demand is moving toward a new kind of product and new kinds of product claims. With a consumer base that’s worn-out and satiated from their traditional sugar-coated mainstays, they know they need to move in a different direction—and very quickly.