Nathan Lewko
Sylvia Szczerbowski
Emma Fox
Jayden Wlasichuk
Lindsay Kennedy
University of Guelph
Ruben Burga
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The overall solution for the Lucky Iron Fish is to combat a global health issue involving Iron deficiency. This purpose behind this company helps to solve goals 3, 8, 9 and 17 of the UN Sustainable Development Goals. This is done by promoting healthier living, sustainable economic growth, resilient infrastructure and strengthening global partnerships with developing countries through the distribution of the Lucky Iron Fish.
The company Lucky Iron Fish is a social enterprise with the mission to fight the ongoing global health issue with iron deficiency and anemia. The innovation that helps achieve the company’s mission is a small, simple iron cooking tool that is specially designed to release a consistent amount of iron when boiled. This tool is reusable for up to five years, and after that, can be melted and reused to make other products such as tools or other Lucky Iron Fish. This innovation helps individuals, predominately women who suffer from ongoing weakness, fatigue, fainting and complications with pregnancy and childbirth. These conditions inhibit them from working, taking care of their family, and living a happy and productive life.
The two individuals behind this innovation, Christopher Charles and Gavin Armstrong, saw an opportunity to develop a solution that could potentially solve global health issues related to iron deficiency. They realized that traditional cast-iron pots were unrealistic for people in developing countries suffering from iron deficiency because they were expensive, heavy and lacked durability so they created a more affordable and long-lasting alternative. This tool was an iron ingot block, which would provide the people of Cambodia with the same health benefits from cooking with an iron pot. “The design went through a great deal of trial and error, and they eventually came up with the fish shape” (Framst, 2018).
The company began operations in 2012 under the leadership of Gavin and the support of Christopher who sat on the board of directors and was the inventor of the Lucky Iron Fish. After creating the innovation, the next step was to successfully commercialize it. The company’s initial plan was to sell exclusively to the western market, mainly the United States and Canada; for every fish that was bought, one would be donated to a family in need. “Our model is selling Lucky Iron Fish at an affordable price point while building profits for the company so that we can use these profits to provide fish either for free or at a reduced rate to non-profits or other agencies that we are working with in the developing world” (Framst, 2018).
According to Tania Framst who is the Vice President of Operations at Lucky Iron Fish, the inspiration behind the company and its innovative product started when Christopher Charles, a graduate from the University of Guelph noticed the iron deficiency among Cambodian’s when he was there working on a water filtration project; around six million Cambodians were found to be iron deficient (mostly women and children) which is almost half of Cambodia’s population. Additionally, over 3.5 billion people worldwide suffer from this preventable condition. This is what inspired Christopher to solve this problem with a viable, realistic and simple solution. After Christopher’s time in Cambodia, Dr. Gavin Armstrong took over clinical research of the commercial prototype because Christopher had begun medical school.
Through Gavin’s research, he was able to discover iron supplements were extremely expensive. This is what encouraged him to find an alternative; a small iron disk for about a sixth of the price of most other iron supplements, took only bout ten minutes to prepare before being able to be applied (boil in water for ten minutes before cooking food with that same boiled water), and would supply 75% of an individual’s daily iron intake in every use. At first the iron disk was not successful because people who were given the tool would not use it; compliance rate of 0.2%. In hopes of increasing the compliance rate, the disk was molded into a fish; a symbol of luck and prosperity in Cambodia. This increased overall compliance to 92%.
The company also vowed to produce and distribute the fish in a way that benefited both society and the environment simultaneously. Christopher and Gavin’s main objective was to have a social impact at every level of their business. For example, they helped provide packaging jobs to Cambodians. While the original inspiration for the company is still customary in its every day operations their ambitions have grown. Tania says their current objective is to “get a million fish in a million pots by 2020 in a socially and environmentally sustainable manner,” which is not only focused on Cambodia but countries around the world.
During our interview with Tania she said, “a simple product can have such a global impact as far as being effective for all markets in the world, so it can help me in Canada, or a woman in Cambodia or India lead a healthier life and can be done in a way to produce a profit for the shareholders” (Framst, 2018). Lucky Iron Fish is founded on their ability to succeed from both a business and philanthropic aspect. The company’s “Buy One, Give One” initiative has the potential to hugely impact our global community. Specifically, it impacts women by helping them “increase their energy, cognitive functions and ability to work and care for their families. In North America, there is anecdotal evidence that people have been battling iron deficiencies for years that haven’t found a supplement that works for them” (Framst, 2018).
As for their environmental impact, Lucky Iron Fish admits their main priority is benefiting society, but they always keep the environment in mind. “We have to do decide on each activity we do by the scale, and how we typically approach it when making decisions is looking at potential harm and looking at our goal. Whether our goal is to reduce it and have no harm and simply be neutral or to have a positive affect” (Framst, 2018). In short, the company is still in its early years, therefore they don’t have the financial resources of other multinational corporations that allow them to actively consider every environmental impact from their business processes. With that being said, Lucky Iron Fish considers their environmental impacts from their production “we might not be able to fully avoid them. We do that through making good decisions about who makes the product, the materials that are used, and their environmental practices… Everything is recycled and contained, keep packaging small and minimalistic, and what we need to do to protect the product from damage during shipping but also not be excessive” (Framst, 2018).
Lucky Iron Fish plans to expand their product offering and charitable efforts, “expand distribution mostly through bulk sales and bulk distribution in countries like India, Latin America and East Africa. Looking at areas where iron deficiencies are the most prevalent and where we see the most opportunity to improve conditions.” (Framst, 2018). The Lucky Iron Fish has reached approximately 20 countries and 10-13 have shown large improvements in iron deficiency rates. “There are four priority countries for the not-for-profit efforts – Peru, Cambodia, Haiti and East Africa” (Framst, 2018). The company is also trying to expand their e-commerce and retail offering’s, so they can sell in more countries and too more people, conveniently as well as to set up production in India.
According to Lucky Iron Fish’s 2017 Giving Report, they have impacted and saved the lives of over 14,000 people in India, 1,800 in Mozambique, 1,180 in Guatemala, and 13,260 in Peru (Giving Report, 2017). Lucky Iron Fish was also awarded the Commitment to Action award by the Clinton Global Initiative for their financial support of a student driven initiative that’s main objective is to improve communities worldwide (Schatz, 2015).
The reason for Lucky Iron Fish’s financial success in developed countries such as Canada, the United States and the UK is due to the company’s certification as a Benefit Corporation as well as their “Buy One, Give One.” The credibility of their certification as well as getting a fish for yourself while also supporting a family in need incentivizes financial comfortably families around the world to make the purchase. Additionally, the fish’s small, affordable and durable product characteristics makes it a well sought-after cooking tool for families in developing countries as traditional cast-iron pots are not an option, due to their cost, weight and lack of durability (prone to breakages).
The demand for this product in both developed and developing countries has allowed Lucky Iron Fish to develop partnerships with manufacturers, suppliers and distributors leading to reduced production, materials and transportation costs, respectively. In an effort to save on transportation costs the company tries to ship most of their products internationally via sea and only use air and land transportation when its necessary. Another business benefit to developing an international network of different stakeholders is that they have been able to setup local production and packaging facilities in developing countries that cater to communities in that country for a lesser cost than manufacturing the product in a developed country and then shipping it to a developing country. For example, India is one of the companies four major focuses and in tune with their strategy of having local production facilities, the company is in the midst of developing a smaller, lighter fish for use in India. But due to economies of scale, larger orders of the fish must be manufactured in more sophisticated facilities in Canada and the United States.
In terms of financials, each fish’s price has a profitability and charitable component built in to the price to ensure long-term viability of Lucky Iron Fish’s operations. Additionally, the ability to melt down the fish after its five-year lifespan and use it to make more fish allows the company to produce new fish for virtually no costs – “helping them realize their goal of a million fish in a million pots by 2020” (Framst, 2018). Lastly, Lucky Iron Fish’s business strategy is followed through by a team of three to five employees (minimal salary and overhead expenses), have begun to focus on expanding their e-commerce and retail offerings to make the fish more accessible to more individuals in developing countries which will translate to higher sales and continued globalization of the Lucky Iron Fish.
The social and environmental benefits of Lucky Iron Fish are a direct result of their business operations, as the businesses purpose and platform are to help alleviate iron deficiency around the world through their product while neutralizing their environmental impact. The company is devoted to either having a positive impact on the environment or none at all. Examples of their environmental initiatives are the company’s green factories, where all materials are recycled, and any waste or pollution is contained within the factory, the company’s efforts to use carbon offsets while transporting their product internationally (reduction in emissions of carbon dioxide or greenhouse gases to compensate for emissions made elsewhere), FSC certified paper (composed of virgin tree fibers that are just as eco-friendly as recycled paper) and their reclamation program (Rogers, 2011). The reclamation program has to do with the actual disposal of the fish once it’s five-year lifespan is complete. In each country, once a customer is done with the fish then they will return the fish to their local distributor where they will then receive a new model – the used fish will be melted down at a production plant and made into another fish. In some countries such as Cambodia the iron is melted down and made into tools.
While social benefits are the impact it has on the local communities in which it is produced and distributed. Firstly, small-scale production facilities provide jobs to local community members where they are paid good living wages, benefits and opportunities for promotion are available. In developing countries safe working conditions and job training is available to youth and disabled individuals; mostly land mine victims in Cambodia. While in developed countries like Canada (more specifically Guelph) their packaging and assembly plants provide newly immigrated people with secure employment; especially during peak seasons such as the holidays.
Lastly, Lucky Iron Fish works with local schools, clinics and other agencies that receive and distribute the fish to collect qualitative and quantitative impact data to ensure the fish has increased local iron levels in customers, and increased attendance at work and school. If this information is positive then it proves that the fish has increased customers cognitive functions, energy and ability to care for their family. “It’s amazing how such a simple product can have such a global impact. For example, a woman in Cambodia has been eating with the fish for six months and she can now care for her family and go to work” (Framst, 2018).
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The Lucky Iron Fish is a small iron cooking tool that infuses your meals with a healthy amount of natural iron to help prevent iron deficiency and anemia (Lucky Iron Fish, 2018). This tool is sold in developed countries on their website and at some retail locations, while every purchase in a developed country provides a free fish or a fish for a reduced cost to a family in need from their "Buy One, Give One" initiative.
