Retailer roundtable part IV: ethical practices and sustainability initiatives
By Vibha Shukla
At the 2024 CHFA NOW, held in Vancouver, retailers were encouraged to participate and share their experiences in an idea exchange during a retailer roundtable.
Attending retailers were split into five groups and each group was asked a question about a pressing issue impacting the natural health retail industry—rent inflation, vendor relations, supply chain, consumer education, and ethical initiatives and sustainability practices.
In the January-February 2025 issue of CNHR, we discussed the topic of “supply chain” in detail. In this part IV of the retailer roundtable series, we will share insights on ethical practices and sustainability initiatives.
Shifting consumer trends
As consumers become more informed, they are no longer focusing on only the quality and price of a product. Now, a company’s ethical practices and sustainability initiatives are just as important to consumers when making these purchasing decisions.
Consumer demand for ethical business practices and sustainability initiatives has only grown, and more and more companies are reassessing their operations to align with these evolving expectations. Consumers are constantly looking for businesses that have a clear commitment to social responsibility, environmental stewardship, and long-term positive impact.
New approach
Brendan Klatt, general manager, Amaranth Foods, points out, “a growing base of consumers expects the brands and companies they support to have motivations beyond profit—this is a good thing.” This shift in consumer behaviour challenges companies to move beyond short-term, profit-oriented goals and embrace an earnest mission that aligns with the values of their customers.
In recent decades, as a response to evolving consumer priorities, large corporations have often promoted ethical and sustainable initiatives. Such initiatives, however, are not the primary goal of such corporations, which mainly focus on maximizing profits, and often don’t resonate with consumers. “People are more willing to support a brand or company that has always had social responsibility in mind. It shows they have a more profound mission beyond profit,” Brendan notes.
Compelling vision
For businesses to succeed in the long run, they need more than just a financial incentive; they need a compelling vision. Companies that embrace a clear, inspiring vision are better positioned to build customer loyalty when compared with companies that occasionally promote sustainability initiatives because it is trendy or financially rewarding.
“If [companies] are getting into it because it’s a fad, and see the financial upside, [then] they are missing the forest for the trees. Suppose companies are chasing sustainability initiatives that are ‘en vogue’ without any tether to their underlying purpose and vision. In that case, consumers won’t fully align with them, and ultimately, the initiatives might not be effective at driving positive change,” he says.
Customers visiting health food stores want to see the brand embrace a just cause and corporate social responsibility. For Amaranth Foods, that means creating better ways to live and thrive. “This means we need to think long term and do things in our store and community that have a lasting impact. As a health food company, one of the most significant ways we can have an impact is by supporting organic food, locally produced food, and small family farms,” Brendan explains.
Environmental stewardship
While organic food is more sustainable than conventional farming, it may be mass produced and transported over long distances. In comparison, locally produced food has a more positive impact. “Locally produced food tends to be fresher, has fewer food miles, and supports your local economy.”
What consumers are now looking for is companies going one more step further. For instance, they may now look for products produced through regenerative agriculture, which goes beyond sustainability and aims to actively help improve the health of the environment. As a response to this consumer trend, Amaranth has adopted several zero-waste initiatives, added solar panels to their buildings, is participating in programs that divert food waste, and sources products in glass or aluminium containers.
Brendan explains that “as a retail business, we move through a large volume of receipt paper and paper bags. While it would be easy to source out the cheapest options, we choose sustainable receipt paper and plant trees for every box sold. It’s important to let customers know where their dollars are going and be transparent about these activities but make a point not to participate in greenwashing.”
Building trust
Consumers are now more cautious with their choices and the brands they choose to support. To address this skepticism, building and maintaining trust through openness and accountability is the key to gaining customers’ confidence. “It is by being as transparent and honest as possible and keeping the communication chain short. As a company’s owner, I communicate directly with customers, the community, and our team as much as possible with as little editing as possible,” says Brendan.
Brendan believes that businesses with a clear vision rooted in ethical practices and social responsibility further reinforce consumer trust and can thrive in the long run. “Ultimately, a strong vision rooted in doing good helps drive business decisions that will have a positive medium-to-long-term impact. Customers who care about CSR (corporate social responsibility) will see authentic sustainability initiatives and support them with their dollars and loyalty.”