Jake Kloberdanz, CEO of Hope Wine, has taken the idea of “cause branding” 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 didn’t see any reason these same ideals couldn’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 “giving away our profit margin”, but Kloberdanz says the company will be in the black in 2009. He’s hired an executive from a major spirit company, and is negotiating with a big distributor to take the brand national (it’s now sold in ten states and on the company’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 “to grow Hope Wine into one of the largest and most recognized brands in the Wine industry.” And even if they’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