Innovation

The innovation itself is clearly defined. The innovation that Califia has utilized is the integration of 100% rPET materials into their products. These materials not only dramatically reduce harm to the environment when compared to traditional materials, but also have lowered cost for the company. The innovation emerged through concern over the natural environment and the negative role Califia’s industry has in it. Striving to not contribute to the destruction of the natural environment, Califia harnessed this innovation to lower its footprint. Ginestro explained Califia was also motivated by their consumers. Califia wanted to find how their consumers' desire for sustainable consumption can intersect with Califia’s desire for sustainable production. 

Nonetheless, this innovation posed a significant challenge: Califia could not reshape their bottle. As Ginestro put it, "our bottle is our brand". So, making the shift to 100% rPETs really turned out to be the only solution. What made this innovation so noteworthy is not only the transition itself, but how it was implemented. Executives at Califia recognized that this was not merely as business decision, but something that the company felt ethically obliged to do. As a company working on sustainable solutions (dairy-alternatives in their case) they recognized the necessity to be sustainable in all facets of their operations. Despite California passing legislation requiring a minimum of 25% rPETs to be used by beverage companies by 2025, Califia decided to make a full spectrum switch to 100% rPETs in 2024. Mrs. Ginestro explained the company's mentality with respect to the innovation as such "We decided, screw that. We are going to go from zero to a hundred percent and we are not even going to stair step it". Through this innovation, Califia succesfully advanced UN SDGs 9, 13, and specifically 12 - Responsible Production and Consumption. 

Inspiration

The inspiration behind this shift is rooted in Califia’s earlier design choices. Califia’s original innovation was taking a bottle in the traditional shape of a juice bottle and using it for plant based milk products. This simple innovation has become their strongest marketing tool and a point of differentiation for the company. As Ginestro put it, “Our bottle is our brand”. However, consumer expectations evolved. Ginestro explained that the typical clientele for Califia strongly values sustainability, and the company began to receive lots of complaints about the materials used for the drink packaging. The packaging of their products had gone from being their greatest asset to a problematic liability. The decision to transition to 100% rPETs came as a result of this. Ginestro noted that the goal with this switch was not to affect the customer experience, but rather to eliminate waste and the marketing liability associated with the bottle. 

Overall impact

The impact of this innovation has been meaningful and multifaceted. Mrs. Ginestro explicitly noted that this innovation, to move to 100% rPETs, was not a driver of sales nor did it have any substantial impact on revenue streams. On the other hand, it effectively “minimized the chatter”. On top of this, she claims the innovation positioned Califia for greater longevity by fixing some of the foundations of their business. With vPETs as the primary material for their products, Califia was failing to accomplish the environmental impact that they boast their product created. Addressing this not only eliminated a liability, but it also creates favorability within their potential consumer base. As Mrs. Ginestro put it, “if you are doing right for the planet and for people, that is a win win for everybody”. This innovation, she claims, has the potential to have an overarching impact on the beverage industry because as more companies shifts from vPETs to rPETs, it will become an industry standard that acts as barrier of entry for new players looking to enter that market.

Business benefit

In addition, the innovation generates net-positive impacts. An innovation like this, using less materials will lower emission use, cut down on waste, and improve the company's margins and efficiency all at the same time. Without it the business would incur more costs at the expense of harming the environment. Califia’s choice also promotes broad flourishing across stakeholders. With a business solution that is simple, but covers a lot of issues, all aspects of the company, consumers, and community flourishes. Employees participate in a sustainable business practice, consumers contribute to a responsible product, and the broader community deals with less environmental impact. The company’s leadership reflects these commitments internally as well: Companies that say they practice sustainability should, and Califia walks the walk proudly with nothing to hide. They are able to measure their impact made by using recycled products and always stay aligned with their values. 

Social and environmental benefit

The business solution implemented by Califia can be used on a broader scale. Califia leads the way in demonstrating how scalable this potentially can be for other businesses, as they are a medium-sized business themselves. Since they are receiving many benefits from their 100% recycled plastic and lightweight packing, other businesses will see the positives as well. This is happening in an industry where waste and carbon emissions are a significant problem. Their choice also represents a meaningful form of radical innovation because the business’ solution is simple, but a change like this affects the whole product line, which then becomes meaningful. Also helping with costs, this solution’s impact affects many problems which bring good to regional, social, and global issues and each segment is decreased in costs and emissions.

Interview

Suzanne Ginestro, Chief Marketing Officer