Wednesday, October 21, 2020
9 minutes
Posted by
Jayson Berryhill
Co-founder and CEO, Wholechain
The Estée Lauder Companies and Aveda Use Wholechain to Trace Vanilla in More Than 125 Products
Note: A company feature of this article is also published on The Estée Lauder Companies corporate site.
Aveda, the high-performance, plant-powered hair care brand with a mission of care, alongside its parent company, The Estée Lauder Companies (ELC), today announced the success of a pilot program to leverage blockchain technology in its Madagascan vanilla supply chain in partnership with natural ingredients supply chain partner LMR Naturals by IFF, local Madagascar vanilla supplier Biovanilla, global sustainable business partner BSR, and blockchain innovation partner Wholechain. Blockchain technology provides further traceability by collating data from supply chain partners in real-time via a secure, digital system. Aveda is one of the first beauty companies to launch a successful, commercial blockchain pilot at such scale, and the program will bring blockchain-enabled, traceable vanilla to more than 125 Aveda products starting this spring.
Transparency in Supply Chain
Blockchain technology provides an immutable reference that can be used to verify claims of the source and quality of ingredients, such as the Madagascan vanilla Aveda uses in its products. 80% of the world’s vanilla comes from the island of Madagascar, and small farms are responsible for most of the production. Complexities in the vanilla supply chain are multilayered, ranging from price fluctuations to major climate challenges and intensive farming needs, which is why vanilla was selected for this pilot program.
Using mobile phones and QR codes, Wholechain creates a tamper-proof record using blockchain tracing of each vanilla bean’s journey throughout the supply chain. Beginning with a cooperative of 450 smallholder farmers in Madagascar, the technology traces the beans along the process from the sale to the local co-op; to LMR, Aveda’s fragrance house partner in Grasse, France; and finally, across the Atlantic to Aveda’s manufacturing facility in Blaine, MN. These products, including Aveda’s Invati franchise, will be on store shelves in the Spring of 2021.
Ultimately, this traceability is important because it will help to demonstrate sustainable, responsible sourcing, high quality ingredients, and more transparency for all stakeholders. Beyond these long-term benefits, this pilot provides a strong proof-of-concept for the use of blockchain to increase traceability in complex supply chains, benefitting the wider business community by establishing robust best practices for responsible sourcing in the beauty sector and beyond.
For generations, vanilla beans were traced using a unique stamp called a “Fitomboka”, which was embedded directly on the bean and served as a record keeping system for the farmers. The Fitomboka has now been digitized onto a digital card, and data is captured directly from the farmer co-op in Madagascar using mobile phones and QR code IDs. At the co-op, each farmer has a digital ID card that converts their unique traceability code and other key data attributes via a QR reader. This information is then recorded via blockchain technology, making it completely tamper-proof. From the time the vanilla leaves the producer’s hands, it is tracked through the supply chain on blockchain to validate its quality and authenticity.
A Commitment to Sustainable Sourcing
For Aveda, integrating social, ethical, and environmental performance metrics into the process of selecting and maintaining suppliers is key to sustainable sourcing practices. This includes establishing on-the-ground, meaningful environmental and social programs that will benefit the communities from where the brand sources ingredients. Blockchain technology will contribute to this by laying the groundwork to ensure transparency in Aveda’s supply chain, providing transparency from the bottle back to the farm.
Barbara De Laere, Aveda Global Brand President, said, “Aveda has prioritized sustainable sourcing for decades, and we now have the technology to demonstrate this to the consumer. Our products are built on natural ingredients, and the long-term viability of those ingredients and the people cultivating them is vitally important to Aveda. With blockchain, we now have a direct connection to our farmers in Madagascar, providing us, our salon partners and our customers more transparency into our supply chain. This transparency is of utmost importance to us as a brand, and we are proud to give our network visibility to the positive impact that, ultimately, they are having on this local community.”
“This new investment supports The Estée Lauder Companies’ efforts to continuously improve and strengthen our sourcing practices while remaining sensitive to the local communities in which we operate,” said Greg Polcer, Executive Vice President of Global Supply Chain at The Estée Lauder Companies Inc. “Blockchain technology adds an extra layer of transparency to our sourcing practices, verifying our vanilla supply chain’s compliance with the highest ethical and environmental standards, and strengthening trust with our suppliers, consumers and investors.”
Bertrand de Preville, LMR Naturals by IFF General Manager said: “LMR and IFF are proud to leverage our transparent and responsible sourcing principles on vanilla for Aveda and the Estée Lauder Companies, in a country like Madagascar, where this sustainable vanilla supply chain improves the livelihood of hundreds of families.”
A Blueprint for the Industry
“It’s really exciting to see the beauty sector pursuing the use of blockchain at such a large, commercial scale,” said Thibault Gravier, Global Supply Chain Director, BSR. “Improving supply chain transparency across sectors really depends on the investment and leadership of companies like Aveda and The Estée Lauder Companies. The success of this pilot provides a true proof of concept for others to follow.”
Whereas many commercial blockchain pilots are theoretical (relying on sample data) or extremely small in scale, ELC and Aveda’s program is one of the largest scale pilots to be launched in the beauty industry. The implementation of digital tracing capabilities at the beginning of the supply chain process helps to facilitate positive impacts across the value chain including greater transparency for the end consumer. Additionally, digital traceability enables a level of visibility needed to facilitate the management and mitigation of complexities in supply chains arising from unforeseen events such as climate changes or global pandemics. Tracing and verifying the steps in the supply chain from 450 smallholder vanilla farmers all the way to Aveda’s manufacturing facility, the extensive pilot provides a true proof of concept that can be leveraged by others in the industry to improve transparency and raise sourcing standards.
12 Years of Giving Back in Madagascar
Since 2008, Aveda and its partners Global Greengrants Fund and WaterAid, have provided community and institution-led sustainable and equitable access to water, sanitation and hygiene (WASH) through gravity-fed water supply systems for 60,000 people in marginalized communities throughout Madagascar including Ampasimanjeva, Ambodiranonambilona, Betampona, Taindambo and Vohimasina. Aveda is currently working on an additional water project in Madagascar with global partner charity: water to bring WASH to nearly 26,000 people the Miandrivazo and Antananarivo Avaradrano districts through large-scale piped systems. These systems will use solar power or electricity grid power to pump water from boreholes and springs into a reservoir tank, and then distribute the water by gravity to tap stands located throughout the communities.
A More Sustainable Future
Enabling blockchain technology is one of several sustainability goals that Aveda has achieved this year. Aveda recently launched its online Ingredient Glossary, which details what the brand’s key ingredients do and where they are sourced from. Additionally, earlier this year, Aveda “flipped the switch” on a new 3.6 acre, 900kW ground-mounted solar array at its headquarters in Blaine, Minnesota. The solar panels collect sunlight throughout the day, converting the light into electricity and supplying it to the manufacturing facility on campus, sending excess energy back to the grid. The new array is part of the brand’s vision to be a renewable energy generator.
Aveda’s headquarters are situated on a 58-acre campus in Blaine, Minnesota alongside honeybee colonies, an employee-curated vegetable garden, electric vehicle charging stations and miles of running trails. The land is National Wildlife Federation Certified, and employees enjoy frequent sightings of a variety of wildlife including turkeys, deer, turtles and groundhogs. The main office building has an emphasis on sustainability: it is powered by solar and wind energy, is carpeted with recycled fibers, has composting and recycling bins throughout the building and an organic cafe on the first floor. To learn more about Aveda’s sustainability initiatives, visit aveda.com/sustainablefuture.
About Aveda
Founded in 1978 in Minneapolis, MN, Aveda creates plant-based hair, skin and body products for beauty professionals and consumers. Aveda innovates in botanical technologies, combining the principles of modern science and Ayurveda, the ancient healing art of India, to develop performance-driven hair, skin and body products — made with pure flower and plant essences — that are created with respect for the Earth, and a comprehensive menu of ritual-based treatments for holistic beauty.
Throughout the years, Aveda has pioneered new benchmarks of environmental responsibility in beauty. It was the first company to sign the Ceres Principles in 1989 — a nonprofit organization mobilizing business leadership on climate change, water scarcity and other sustainability challenges — and the first beauty company to manufacture with 100 percent wind power in its primary facility. Aveda was also the first beauty company to receive a Cradle to Cradle charter for its commitment to sustainable products, packaging and production. In 2013, Aveda was honored with the first Legacy Leaders Award from Cradle to Cradle for its pioneering role in environmental leadership. Aveda received the Sustainability Leadership Award in 2017 during the Sustainable Beauty Awards organized by Ecovia Intelligence for its leadership in packaging, green formulations and sustainable ingredients. Since 1999, Aveda’s annual Earth Month campaign, held each April, has raised $65 million to support environmental projects around the world.
Aveda products are available in Aveda Experience Centers and more than 9,000 professional hair salons and spas in more than 40 countries and at www.aveda.com.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced and Dr. Jart+.
About LMR Naturals by IFF
LMR is a leading Natural Ingredients producer, crafting highest quality, traceable and responsible natural ingredients for perfumery, flavors, cosmetics and aromatherapy. Created in 1984, in Grasse, France, the heartland of perfumery, LMR blends craftsmanship with science and creativity. With quality, plant, people and innovation at heart, LMR masters the full breadth of natural capabilities, from seed to bottle. This integrated expertise is an essential component of its responsible and transparent sourcing platforms around the world. It’s also essential to the science-based understanding of its natural ingredients’ benefits for a better life.
At LMR, sustainability is not a philosophy: it is a day after day commitment to action. Since its creation in 1984, it has embedded it in the DNA of her company. Today, it still drives everything we do.
About BSR
BSR™ is a global nonprofit organization that works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, BSR™ develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration. Our mission is to work with business to create a just and sustainable world. We envision a world in which everyone can lead a prosperous and dignified life within the boundaries of the Earth’s natural resources.
As one of our key areas of expertise, BSR works with companies’ supply chain, sourcing, and procurement functions to develop supply chains that deliver business value and are inclusive, resilient, and transparent, creating long-term benefit for all involved stakeholders. This includes a particular focus on transparency and traceability in the supply chain via advanced technologies such as blockchain and artificial intelligence.
About Wholechain
Wholechain is a blockchain based traceability solution built by Envisible to enable trust, coordination, and transparency in fragmented supply chains. Wholechain enables visibility within global supply chains, allowing businesses to manage risks and increase efficiencies and consumers to make more responsible decisions. Examples of other uses of Wholechain include Fair Trade USA and Topco Associates, the largest grocery coop in the US, and Mastercard. Last year Wholechain won the Fish 2.0 Competition at Stanford for Supply Chain Innovation. Find out more at Wholechain.com.
Note: A company feature of this article is also published on The Estée Lauder Companies corporate site.
Aveda, the high-performance, plant-powered hair care brand with a mission of care, alongside its parent company, The Estée Lauder Companies (ELC), today announced the success of a pilot program to leverage blockchain technology in its Madagascan vanilla supply chain in partnership with natural ingredients supply chain partner LMR Naturals by IFF, local Madagascar vanilla supplier Biovanilla, global sustainable business partner BSR, and blockchain innovation partner Wholechain. Blockchain technology provides further traceability by collating data from supply chain partners in real-time via a secure, digital system. Aveda is one of the first beauty companies to launch a successful, commercial blockchain pilot at such scale, and the program will bring blockchain-enabled, traceable vanilla to more than 125 Aveda products starting this spring.
Transparency in Supply Chain
Blockchain technology provides an immutable reference that can be used to verify claims of the source and quality of ingredients, such as the Madagascan vanilla Aveda uses in its products. 80% of the world’s vanilla comes from the island of Madagascar, and small farms are responsible for most of the production. Complexities in the vanilla supply chain are multilayered, ranging from price fluctuations to major climate challenges and intensive farming needs, which is why vanilla was selected for this pilot program.
Using mobile phones and QR codes, Wholechain creates a tamper-proof record using blockchain tracing of each vanilla bean’s journey throughout the supply chain. Beginning with a cooperative of 450 smallholder farmers in Madagascar, the technology traces the beans along the process from the sale to the local co-op; to LMR, Aveda’s fragrance house partner in Grasse, France; and finally, across the Atlantic to Aveda’s manufacturing facility in Blaine, MN. These products, including Aveda’s Invati franchise, will be on store shelves in the Spring of 2021.
Ultimately, this traceability is important because it will help to demonstrate sustainable, responsible sourcing, high quality ingredients, and more transparency for all stakeholders. Beyond these long-term benefits, this pilot provides a strong proof-of-concept for the use of blockchain to increase traceability in complex supply chains, benefitting the wider business community by establishing robust best practices for responsible sourcing in the beauty sector and beyond.
For generations, vanilla beans were traced using a unique stamp called a “Fitomboka”, which was embedded directly on the bean and served as a record keeping system for the farmers. The Fitomboka has now been digitized onto a digital card, and data is captured directly from the farmer co-op in Madagascar using mobile phones and QR code IDs. At the co-op, each farmer has a digital ID card that converts their unique traceability code and other key data attributes via a QR reader. This information is then recorded via blockchain technology, making it completely tamper-proof. From the time the vanilla leaves the producer’s hands, it is tracked through the supply chain on blockchain to validate its quality and authenticity.
A Commitment to Sustainable Sourcing
For Aveda, integrating social, ethical, and environmental performance metrics into the process of selecting and maintaining suppliers is key to sustainable sourcing practices. This includes establishing on-the-ground, meaningful environmental and social programs that will benefit the communities from where the brand sources ingredients. Blockchain technology will contribute to this by laying the groundwork to ensure transparency in Aveda’s supply chain, providing transparency from the bottle back to the farm.
Barbara De Laere, Aveda Global Brand President, said, “Aveda has prioritized sustainable sourcing for decades, and we now have the technology to demonstrate this to the consumer. Our products are built on natural ingredients, and the long-term viability of those ingredients and the people cultivating them is vitally important to Aveda. With blockchain, we now have a direct connection to our farmers in Madagascar, providing us, our salon partners and our customers more transparency into our supply chain. This transparency is of utmost importance to us as a brand, and we are proud to give our network visibility to the positive impact that, ultimately, they are having on this local community.”
“This new investment supports The Estée Lauder Companies’ efforts to continuously improve and strengthen our sourcing practices while remaining sensitive to the local communities in which we operate,” said Greg Polcer, Executive Vice President of Global Supply Chain at The Estée Lauder Companies Inc. “Blockchain technology adds an extra layer of transparency to our sourcing practices, verifying our vanilla supply chain’s compliance with the highest ethical and environmental standards, and strengthening trust with our suppliers, consumers and investors.”
Bertrand de Preville, LMR Naturals by IFF General Manager said: “LMR and IFF are proud to leverage our transparent and responsible sourcing principles on vanilla for Aveda and the Estée Lauder Companies, in a country like Madagascar, where this sustainable vanilla supply chain improves the livelihood of hundreds of families.”
A Blueprint for the Industry
“It’s really exciting to see the beauty sector pursuing the use of blockchain at such a large, commercial scale,” said Thibault Gravier, Global Supply Chain Director, BSR. “Improving supply chain transparency across sectors really depends on the investment and leadership of companies like Aveda and The Estée Lauder Companies. The success of this pilot provides a true proof of concept for others to follow.”
Whereas many commercial blockchain pilots are theoretical (relying on sample data) or extremely small in scale, ELC and Aveda’s program is one of the largest scale pilots to be launched in the beauty industry. The implementation of digital tracing capabilities at the beginning of the supply chain process helps to facilitate positive impacts across the value chain including greater transparency for the end consumer. Additionally, digital traceability enables a level of visibility needed to facilitate the management and mitigation of complexities in supply chains arising from unforeseen events such as climate changes or global pandemics. Tracing and verifying the steps in the supply chain from 450 smallholder vanilla farmers all the way to Aveda’s manufacturing facility, the extensive pilot provides a true proof of concept that can be leveraged by others in the industry to improve transparency and raise sourcing standards.
12 Years of Giving Back in Madagascar
Since 2008, Aveda and its partners Global Greengrants Fund and WaterAid, have provided community and institution-led sustainable and equitable access to water, sanitation and hygiene (WASH) through gravity-fed water supply systems for 60,000 people in marginalized communities throughout Madagascar including Ampasimanjeva, Ambodiranonambilona, Betampona, Taindambo and Vohimasina. Aveda is currently working on an additional water project in Madagascar with global partner charity: water to bring WASH to nearly 26,000 people the Miandrivazo and Antananarivo Avaradrano districts through large-scale piped systems. These systems will use solar power or electricity grid power to pump water from boreholes and springs into a reservoir tank, and then distribute the water by gravity to tap stands located throughout the communities.
A More Sustainable Future
Enabling blockchain technology is one of several sustainability goals that Aveda has achieved this year. Aveda recently launched its online Ingredient Glossary, which details what the brand’s key ingredients do and where they are sourced from. Additionally, earlier this year, Aveda “flipped the switch” on a new 3.6 acre, 900kW ground-mounted solar array at its headquarters in Blaine, Minnesota. The solar panels collect sunlight throughout the day, converting the light into electricity and supplying it to the manufacturing facility on campus, sending excess energy back to the grid. The new array is part of the brand’s vision to be a renewable energy generator.
Aveda’s headquarters are situated on a 58-acre campus in Blaine, Minnesota alongside honeybee colonies, an employee-curated vegetable garden, electric vehicle charging stations and miles of running trails. The land is National Wildlife Federation Certified, and employees enjoy frequent sightings of a variety of wildlife including turkeys, deer, turtles and groundhogs. The main office building has an emphasis on sustainability: it is powered by solar and wind energy, is carpeted with recycled fibers, has composting and recycling bins throughout the building and an organic cafe on the first floor. To learn more about Aveda’s sustainability initiatives, visit aveda.com/sustainablefuture.
About Aveda
Founded in 1978 in Minneapolis, MN, Aveda creates plant-based hair, skin and body products for beauty professionals and consumers. Aveda innovates in botanical technologies, combining the principles of modern science and Ayurveda, the ancient healing art of India, to develop performance-driven hair, skin and body products — made with pure flower and plant essences — that are created with respect for the Earth, and a comprehensive menu of ritual-based treatments for holistic beauty.
Throughout the years, Aveda has pioneered new benchmarks of environmental responsibility in beauty. It was the first company to sign the Ceres Principles in 1989 — a nonprofit organization mobilizing business leadership on climate change, water scarcity and other sustainability challenges — and the first beauty company to manufacture with 100 percent wind power in its primary facility. Aveda was also the first beauty company to receive a Cradle to Cradle charter for its commitment to sustainable products, packaging and production. In 2013, Aveda was honored with the first Legacy Leaders Award from Cradle to Cradle for its pioneering role in environmental leadership. Aveda received the Sustainability Leadership Award in 2017 during the Sustainable Beauty Awards organized by Ecovia Intelligence for its leadership in packaging, green formulations and sustainable ingredients. Since 1999, Aveda’s annual Earth Month campaign, held each April, has raised $65 million to support environmental projects around the world.
Aveda products are available in Aveda Experience Centers and more than 9,000 professional hair salons and spas in more than 40 countries and at www.aveda.com.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, Tommy Hilfiger, M·A·C, Kiton, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin, Tom Ford, Smashbox, Ermenegildo Zegna, AERIN, RODIN olio lusso, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, BECCA, Too Faced and Dr. Jart+.
About LMR Naturals by IFF
LMR is a leading Natural Ingredients producer, crafting highest quality, traceable and responsible natural ingredients for perfumery, flavors, cosmetics and aromatherapy. Created in 1984, in Grasse, France, the heartland of perfumery, LMR blends craftsmanship with science and creativity. With quality, plant, people and innovation at heart, LMR masters the full breadth of natural capabilities, from seed to bottle. This integrated expertise is an essential component of its responsible and transparent sourcing platforms around the world. It’s also essential to the science-based understanding of its natural ingredients’ benefits for a better life.
At LMR, sustainability is not a philosophy: it is a day after day commitment to action. Since its creation in 1984, it has embedded it in the DNA of her company. Today, it still drives everything we do.
About BSR
BSR™ is a global nonprofit organization that works with its network of more than 250 member companies and other partners to build a just and sustainable world. From its offices in Asia, Europe, and North America, BSR™ develops sustainable business strategies and solutions through consulting, research, and cross-sector collaboration. Our mission is to work with business to create a just and sustainable world. We envision a world in which everyone can lead a prosperous and dignified life within the boundaries of the Earth’s natural resources.
As one of our key areas of expertise, BSR works with companies’ supply chain, sourcing, and procurement functions to develop supply chains that deliver business value and are inclusive, resilient, and transparent, creating long-term benefit for all involved stakeholders. This includes a particular focus on transparency and traceability in the supply chain via advanced technologies such as blockchain and artificial intelligence.
About Wholechain
Wholechain is a blockchain based traceability solution built by Envisible to enable trust, coordination, and transparency in fragmented supply chains. Wholechain enables visibility within global supply chains, allowing businesses to manage risks and increase efficiencies and consumers to make more responsible decisions. Examples of other uses of Wholechain include Fair Trade USA and Topco Associates, the largest grocery coop in the US, and Mastercard. Last year Wholechain won the Fish 2.0 Competition at Stanford for Supply Chain Innovation. Find out more at Wholechain.com.
Wednesday, October 21, 2020
9 minutes
Posted by
Jayson Berryhill
Co-founder and CEO, Wholechain