Jake Kloberdanz, CEO of Hope Wine, has taken the idea of â€œcause brandingâ€ where for-profit corporations partner with non-profit organizations to release limited edition products and services to raise money for charities and created a company around it. Realizing that these short term relationships were beneficial for everyone involved – corporations could promote themselves as socially conscious while simultaneously bolstering sales, non-profits received much needed funding and customers could make purchases they felt good about – Kloberdanz didnâ€™t see any reason these same ideals couldnâ€™t function as a sustainable business model year round.
Launched in early 2007, the Southern California based company currently donates 50% of its profits to organizations that fight against Breast Cancer, AIDS and Autism, support U.S. troops and their families and search for ways to save the environment. Inc.com reports:
This year, the company did $1 million in sales, gave away $150,000 in cash and in-kind donations to 20 not-for-profit organizations, and donated 3,400 volunteer hours at 200 charity events. At this point, Hope is â€œgiving away our profit marginâ€, but Kloberdanz says the company will be in the black in 2009. Heâ€™s hired an executive from a major spirit company, and is negotiating with a big distributor to take the brand national (itâ€™s now sold in ten states and on the companyâ€™s website.)
Though the company has made great strides in a relatively short time, according to their website they have even loftier goals for the future, hoping â€œto grow Hope Wine into one of the largest and most recognized brands in the Wine industry.â€ And even if theyâ€™re only partially successful with their plans, Hope Wine is certainly one brand that will give causes and consumers alike something to celebrate over.
By Scott Lachut. Source :: PSFK