Jintao Zhao
Case Western Reserve University - Weatherhead School of Management
Chris Laszlo
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Watermelon Water, WTRMLN WTR, founded by Jody Levi and Harlan Berger in 2013, is a company which collects blemished yet edible watermelons from farmers to produce watermelon water. By doing so, the company is able to reduce the food waste in production and supply chains, turn farmers' losses into their profits, and introduce beneficial watermelon water to the U.S.
WTRMLN WTR's business innovation is about finding a perfect business opportunity while offering a solution to solving the big waste in watermelon production. WTRMLN WTR helps the watermelon farmers turn a loss into a profit. It either establishes a long-term trusting relationship with the farmers, or works with the National Watermelon Promotion Board and the National Watermelon Association to spread the word to the farmers to help them find a home for their cosmetically blemished watermelons. In the next 5 years, WTRMLN WTR is committing to help them reduce food waste by 25%, which is a big contribution to the farmers' livelihood.
In production, WTRMLN WTR worked with food scientists and developed a cold pasteurization method known as "High-Pressure Processing" which can be an alternative way to kill the bacteria in the watermelon water without heating up and adding any sugar or other preservatives. Without the adding of sugar and other preservatives, WTRMLN WTR provides a much healthier hydration, all-natural watermelon water, compared to other sports drinks or juice. Its products have been distributed all over the country through a healthy food retailer - Whole Foods - to other convenience stores.
In addition, WTRMLN WTR implements sustainability into every aspect of its business model. First, there is zero waste in the production process. Leftovers of the melons are used either by WTRMLN WTR or by partners identified to produce animal feed for farms local to its manufacturing facilities, or fabrics. Second, the company is committed to evolving the best solution on packing technology which is compatible with high-pressure processing, exposes zero health hazards on customers, and leaves as little carbon footprint as possible. Currently, its bottles are BPA free and boxes are made of low-weight recyclable cardboard.
"Giving a home to melons" - Jody Levi.
Jody Levi, co-founder of WTRMLN WTR, is a 37-year-old female entrepreneur, who is passionate about life and the wellbeing of others. For her, business is about making a positive impact while turning a profit. So, when Levi met her future-to-be co-founder Harlan Berger in 2012, from whom she heard about this "epidemic" waste in the watermelon sector, she felt the drive to find a sustainable way to turn these supposed-to-be wasted melons into consumable and profitable products.
Watermelon is a super fruit which provides a high amount of vitamins, minerals, and antioxidants for a low amount of calories - according to Medicalnewstory.com (http://www.medicalnewstoday.com/articles/266886.php). Yet, there are hundreds of million pounds of them wasted every year simply because of cosmetic blemish set by the food industry. Apart from providing a high-dense amount of nutrients, watermelons are 92% water. This, in fact, makes them a perfect option for the drinks industry, as it guarantees an easier process in production and higher-than-standard production level.
There is a food waste problem across the world. According to the Natural Resources Defense Council, there are about 6 billion pounds of the so-called "ugly" fruits and vegetables in the U.S. alone that are wasted every year. It means that over 20 percents of the vegetables and fruits grown are going to be wasted - every year. Taking watermelons for an example, 20% means over 800 million pounds of them are never going to make it to the grocery stores every year simply because of failing in the industrial "beauty" standards. By taking a small bite of the big cake, the New York-based start up has a plan for these "homeless" watermelons.
WTRMLN WTR helps to turn watermelon farmers' losses into profits by buying and using their supposed-to-be-discarded watermelons, which cost the farmers time, labor and money to grow. Put it in a bigger picture, WTRMLN WTR is providing a healthy and accessible hydration while offering a solution to an over 800 million pounds of waste in the U.S. watermelon production. This model has been profitable and beneficial for the company as well as for the farmers in the past 2 years. Moreover, the business innovation is scalable not only in the U.S. but also the rest of the world. Due to all of these reasons, and as a support to female entrepreneurship, super-star Beyoncé decided to invest in WTRMLN WTR. As she put it: "This is more than an investment in a brand; it's an investment in female leaders, fitness, American farmers, and the health of people and our planet."
Watermelon water is a healthier alternative hydration than traditional sports drinks and juice boxes. WTRMLN WTR is a Non-GMO certificated company which resources all of its watermelon based on these standards. It has established a strong distribution network from the healthy food retailer - Whole Foods - to convenience stores all across the country and drawn investments from the influential celebrity Beyoncé. The company has been seen with a surge increase in sales since its foundation. In 2016, the company is expected to compress 25 million pounds of watermelon, and that number is expected to be doubled in the next year.
WTRMLN WTR is a responsible company which addresses the UN's Sustainable Development Goals - "17 goals to transform our world". All of the watermelons used in production are otherwise supposed-to-be-wasted watermelons from American farmers. It helps to increase the farmers' revenues as well as reduce the food waste in the U.S. This practice aligns with Goal 2 - "Zero Hunger", which aims to double the incomes of small-scale food producers as well as establish sustainable food production systems by 2030. In 2016 fiscal year, WTRMLN WTR has compressed 25 million pounds of watermelon so far, and is planning to double that number in the coming year 2017. All of these melons have created a new source of revenue to the local watermelon farmers. Making the best of the production from the land, where farmers have invested in time, labor and fertilizers, is also offering a sustainable solution for the food production. Moreover, by providing the public a healthier and yet accessible alternative from sugar-laden drinks, the company also commits to educating the public and help them get healthier.
In addition, WTRMLN WTR also helps in achieving Goal 12, which aims to establish sustainable consumption and production patterns, by implementing sustainability in its operation and supply chains.
Overall, it has achieved a net positive impact on people, environment, and society.
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Jeff Rubenstein, Chief Marketing Officer
