Honey story...cont'd

A few of you have asked for more info on the honey story, which should honestly be a GSB case one day once the dust has all settled – there’s easily a class worth of crazy stories there.

Here is the Businessweek article that gives the background on all the parties involved: The Largest Food Fraud in US History. And a shorter article just on the US company I mentioned. 

The company, which through a bankruptcy restructuring became NAF, is now thankfully in good shape through a lot of hard work - mostly around sourcing. It has a few tiers of brands and sells to industrial, foodservice and retail. The higher end retail is known as Buzz & Bloom Honey, and the mid-level retail stuff you'll be eating if you buy honey at Trader Joe’s (try the mesquite honey) or use the honey in Arbuckle next to the coffee – it's private label but that’s all from NAF.  

I can’t share much more until the company is eventually sold, but here is the industry-led "sustainability" watchdog I mentioned called TrueSource. 

The translations to the wine industry are many, but in sum through the honey experience I have come to believe that the economic value of sustainability is all about: (1) transparency, reliability and control of supply, (2) differentiation (how do you drive a wedge in a highly competitive industry), and (3) reputation and brand image (do customers feel good when buying your product).

It takes a big first mover and/or a trade organization to make a real difference and create a concept like TrueSource, but I think a few players in wine have the ability to pull it off (like the Nordic company mentioned in class and/or some big US consolidators), and the rest of the industry will soon have little choice but to follow.