Innovation

Karma Drinks aims to revolutionize the soft drink industry by offering consumers a healthier and more conscious alternative to mainstream soda brands. The product lines include a variety of carbonated drinks made with quality organic and Fairtrade ingredients, such as cola, ginger ale, lemonade, kombucha, and organic juices.

With a commitment to Fairtrade practices, Karma Drinks works closely with farmers and communities in developing countries, ensuring they receive fair compensation for their labour and resources. By supporting sustainable agriculture and empowering local growers, the company not only delivers high-quality beverages to its customers but also contributes to the economic development and well-being of communities around the world.

Transparency is a founding principle of the business, which has gone to great lengths to obtain Fairtrade and organic certification for their products and BCorp certification for the company. Karma Cola is made using an organic cola nut from Sierra Leone, organic vanilla bean from Madagascar and organic cane sugar. These pure ingredients set the company apart from competitors, which rely on flavouring, caffeine and high fructose corn syrup. Karma Drinks’ purpose has become their point of difference.

Karma Drinks has appealed to the growing health-conscious and wellness markets with its hip and fun branding and natural ingredients. Founder Chris Morrison notes a constant focus on producing a healthier product with soon-to-be-launched sugar-free sparkling juices.

Inspiration

Karma Drinks was founded by brothers Chris and Matt Morrison and Simon Coley. As the founder of the beverage brand Phoenix Organics, Chris was familiar with pioneering space in beverage sector. Chris says that Phoenix, “went to great lengths to provide a brand based on natural goodness and organic principles."

With his beverage background and ready to take on a new challenge, Chris and his cofounders initially looked at growing opportunities for New Zealand’s Pacific neighbors. They intended to supply Lady Finger bananas from Samoa, but they did not travel well, so they dried them and retailed a tasty banana snack. From these efforts, All Good Bananas was formed under the All Good Organics brand, and they went on to source Fairtrade bananas from a cooperative in Ecuador.

Driven by a commitment to ethical business practices, Karma Drinks was then born under the All Good brand. Chris seized the opportunity to create an ethical cola from a real cola nut, and Karma Cola was brought to life. Later, Karma Drinks was separated from All Good Organics.

Karma Drinks arrived circa 2010 in a much more competitive landscape. The brand has been leading the way regarding social and environmental aspects, but certainly within a market where price is a determining factor. Market conditions have been harsh with macro shocks, such as COVID-19, yet the company has maintained its drivers. The team has put much effort into building relationships with retailers, telling a solid marketing story, and with the Karma Foundation.

Chris is an early pioneer of the organics industry of New Zealand. As well as being a founding Director of Karma Drinks, Chris is a leading voice in sustainable business and was celebrated in New Zealand’s 2021 honour’s list Order of Merit for his services to Sustainability and Fairtrade. His extensive involvement in the organic sector, including his current role as Chairman of OANZ (Organics Aotearoa New Zealand), underscores his commitment to sustainability.

Overall impact

The Karma Foundation’s outstanding efforts have measurably improved the quality of life for communities in Sierra Leone. Their projects align with the following SDGs: goal 3, good health and well-being; goal 4, quality education; goal 5, gender equality; goal 6, clean water and sanitation; and goal 9, industry, innovation, and infrastructure.

The Karma Foundation's commitment to these goals has led to tangible social and environmental benefits. In addition to the remarkable social impact, the Foundation has set a unique reforestation goal: to plant 30,000 trees over 30 years in the rainforest area surrounding the Tiwai communities, a testament to their long-term environmental stewardship.

Karma Drinks has also achieved the prestigious B Corporation (B Corp) certification. This certification is the result of a rigorous independent assessment that measures performance in five key impact areas: Governance, Workers, Community, Environment, and Customers. While the Karma Cola Foundation has always been the heart of the company’s commitment to good karma, the B Corp certification reflects the comprehensive operation of the entire business.

When the company’s funds and resources allocated to improving its social and environmental impact were calculated, the amount was more than 1% of sales revenue earmarked for the Foundation and contributed to a score of 17.1 points. Based on the total B Impact Assessment (BIA), Karma Drinks was in the top 5% and earned an overall score of 127.4. The median score for ordinary businesses who complete this assessment is 50.9, and the threshold for qualification is 80 points.

Business benefit

Karma Drinks’ efforts to create a world-leading sustainable brand have paid off. The company has received several accolades and was positioned as New Zealand’s number one B Corp company and number five worldwide at the time of certification. This is not surprising under Chris’s leadership.

Chris notes that the company’s mission has “resulted in fantastic customer retention and loyalty.” He believes the quality of key business relationships is about ethics and service. Yet, the company must adapt as the needs of consumers and businesses change.

Through its innovative approach to establishing a business entirely on ethical principles, Karma Drinks has emerged as a sustainable soft drink market leader. The company has received several awards, including the World’s Most Ethical Soft Drinks Company, Marie Claire 2022, Best Ethical Vegan Drinks Brand, Global Vegan Awards 2022, and winning the Social Impactor Category as well as the Supreme Sustainability Award 2022, with New Zealand's Sustainable Business Network.

Transparency builds trust. Certification via the Fairtrade Labelling Organisation, The Soil Association, and BioGro ensures fair trade and organic claims are validated. According to Chris, Karma Drinks opened its business to intense scrutiny to ensure that its marketing claims were legitimate and gave consumers confidence.

Karma Drinks has built an admirable team culture. “Everyone who joins the Karma team is attracted by the challenge to create and sell the world’s most delicious, ethical soft drinks and by the values that built the company: humanity, impact, and creativity.” The company’s values keep its mission front and center at times when external pressures challenge them.

Chris notes there have been several successful capital raises. He says that while environmental and social positioning are essential factors, the other is the potential for the business to increase in value over time. While it has been a difficult few years with Covid and a cost of living crisis, the company has maintained its beverage sector position with innovations leading to diverse markets and growth potential.

Social and environmental benefit

Chris notes that “nothing stands still.” While Fairtrade and organics have been the most significant focus, other issues have emerged, such as single-use plastics and climate change. The company has had to adapt, with a policy of removing plastic wraps and pellets, making carbon reductions, and offsetting transport emissions.

The company is on a mission to reduce its carbon footprint by 2025. They are measuring, publishing, and further reducing their footprint in complex supply chains around the world that often have other priorities. Chris says Karma Drinks will be carbon-positive by 2030 with their ETS scheme.

Interview

Chris Morrison, Founding Director