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Selling Toilet Paper and Paper Towels During the Pandemic Selling Toilet Paper and Paper Towels During the Pandemic
(8 days later)
As the chief executive of a company that makes toilet paper, Joey Bergstein has been through an intense few months.As the chief executive of a company that makes toilet paper, Joey Bergstein has been through an intense few months.
Mr. Bergstein, who runs Seventh Generation, has watched the coronavirus pandemic send demand for his company’s products — which also include household cleaners and paper towels — skyrocketing. The company has faced supply chain disruptions and limitations on how much it can produce, but is scrambling to fulfill orders, which remain higher than normal.Mr. Bergstein, who runs Seventh Generation, has watched the coronavirus pandemic send demand for his company’s products — which also include household cleaners and paper towels — skyrocketing. The company has faced supply chain disruptions and limitations on how much it can produce, but is scrambling to fulfill orders, which remain higher than normal.
At the same time, with protests around the country after the killings of George Floyd and other unarmed black men and women by the police, companies large and small have been moved to address discrimination and make public commitments to diversity initiatives.At the same time, with protests around the country after the killings of George Floyd and other unarmed black men and women by the police, companies large and small have been moved to address discrimination and make public commitments to diversity initiatives.
That feels natural for Seventh Generation, a progressive company owned by Unilever, the large European conglomerate that has made strong commitments to environmental and social causes. Yet Seventh Generation’s headquarters are in Vermont, and Mr. Bergstein acknowledged that his staff lacked racial diversity, and that changing that was a challenge.That feels natural for Seventh Generation, a progressive company owned by Unilever, the large European conglomerate that has made strong commitments to environmental and social causes. Yet Seventh Generation’s headquarters are in Vermont, and Mr. Bergstein acknowledged that his staff lacked racial diversity, and that changing that was a challenge.
This conversation, which was condensed and edited for clarity, was part of a series of live Corner Office calls discussing business during the pandemic. Visit timesevents.nytimes.com to join upcoming calls.This conversation, which was condensed and edited for clarity, was part of a series of live Corner Office calls discussing business during the pandemic. Visit timesevents.nytimes.com to join upcoming calls.
At a moment like this, with a national conversation about diversity, racism and police brutality going on, what’s your message to your employees and to your customers? How are you as a C.E.O. responding to this?At a moment like this, with a national conversation about diversity, racism and police brutality going on, what’s your message to your employees and to your customers? How are you as a C.E.O. responding to this?
It’s a devastating moment, and we’re responding on many different levels. I’m personally sad. I’m outraged by the actions of hate and violence and racism that just keep seem to coming back and back and back at us. George Floyd is the latest example, but there’s Ahmaud Arbery, Breonna Taylor, and sadly we can keep going on. For me, this is really personal. This son of a Holocaust survivor who lost her entire family, we know the impact of systemic institutional hate and we need to speak out, but even more we need to take action. I personally stand as an ally with the black community. It’s time for us to both speak out and to take action.It’s a devastating moment, and we’re responding on many different levels. I’m personally sad. I’m outraged by the actions of hate and violence and racism that just keep seem to coming back and back and back at us. George Floyd is the latest example, but there’s Ahmaud Arbery, Breonna Taylor, and sadly we can keep going on. For me, this is really personal. This son of a Holocaust survivor who lost her entire family, we know the impact of systemic institutional hate and we need to speak out, but even more we need to take action. I personally stand as an ally with the black community. It’s time for us to both speak out and to take action.
The Seventh Generation foundation committed $100,000 to the bail project to ensure that protesters and others who are incarcerated aren’t paying a bigger price for expressing the hurt that they’re clearly feeling. We’re also calling on Congress for safe, improved access to voting, which we think is a basic human right.The Seventh Generation foundation committed $100,000 to the bail project to ensure that protesters and others who are incarcerated aren’t paying a bigger price for expressing the hurt that they’re clearly feeling. We’re also calling on Congress for safe, improved access to voting, which we think is a basic human right.
Can you give us a sense of how diverse Seventh Generation is as a company and what efforts, if any, you’re making to try to become more diverse as an organization?Can you give us a sense of how diverse Seventh Generation is as a company and what efforts, if any, you’re making to try to become more diverse as an organization?
We’re a small company based in Vermont, which is not the most racially diverse state. We started working really closely on inclusion about five years ago. We actually have a work force which is almost 70 percent female. And yet what we were finding when we took a look in the mirror some time ago was that we weren’t seeing women represented on the executive team and our board and the higher levels of management at the same rate that they were present in the country. Now we have a leadership team which is 50-50 male-female. So we we’ve made good progress in creating a space where we think that women can succeed.We’re a small company based in Vermont, which is not the most racially diverse state. We started working really closely on inclusion about five years ago. We actually have a work force which is almost 70 percent female. And yet what we were finding when we took a look in the mirror some time ago was that we weren’t seeing women represented on the executive team and our board and the higher levels of management at the same rate that they were present in the country. Now we have a leadership team which is 50-50 male-female. So we we’ve made good progress in creating a space where we think that women can succeed.
Racial diversity has been a bigger challenge for us, to be really frank. When we started our efforts, less than 6 percent of our company were people of color. We’re now at about 16 percent, which is still not anywhere close to what we need to be.Racial diversity has been a bigger challenge for us, to be really frank. When we started our efforts, less than 6 percent of our company were people of color. We’re now at about 16 percent, which is still not anywhere close to what we need to be.
You mentioned that you joined with other companies in urging Congress to secure voting rights, but are you going beyond that and actually taking a position on who people should vote for?You mentioned that you joined with other companies in urging Congress to secure voting rights, but are you going beyond that and actually taking a position on who people should vote for?
We’re not calling on people to vote one way or another. What we want is to get people to come out to vote, and we want to do everything we can to help ensure that there’s as big a turnout as there possibly can be.We’re not calling on people to vote one way or another. What we want is to get people to come out to vote, and we want to do everything we can to help ensure that there’s as big a turnout as there possibly can be.
What determines when you speak out about one cause but perhaps stay silent on another? What about gun rights, L.G.B.T. rights and other causes?What determines when you speak out about one cause but perhaps stay silent on another? What about gun rights, L.G.B.T. rights and other causes?
It comes back to your values. It comes back to our mission. Seven Generation has a really clear mission, which is about transforming the world into a healthy, sustainable and equitable place for the next seven generations. We use that really as a guiding star for the issues that we want to engage in. And I think it’s really important that we don’t engage in every issue that’s out there. Gun rights is an area I’ve got personal points of view on, but I’m not sure that my personal point of view is as relevant in that conversation, so I’ve withheld that.It comes back to your values. It comes back to our mission. Seven Generation has a really clear mission, which is about transforming the world into a healthy, sustainable and equitable place for the next seven generations. We use that really as a guiding star for the issues that we want to engage in. And I think it’s really important that we don’t engage in every issue that’s out there. Gun rights is an area I’ve got personal points of view on, but I’m not sure that my personal point of view is as relevant in that conversation, so I’ve withheld that.
What were the first impacts of the coronavirus on your business?What were the first impacts of the coronavirus on your business?
It first really became clear that there was a real crisis brewing in January. We had launched an ultra-concentrated laundry detergent last year that comes with this easy-dose cap. Those caps are made in China. In January, we had a really big challenge on our hands to be able to get these. The second piece was in January when there were three cases reported in Seattle. And at that point we decided that we would extend the coverage of our inventory on our disinfecting products, because we suspected that there was going to be an increase in demand, but it wasn’t anywhere close to the surge that we saw when March came around.It first really became clear that there was a real crisis brewing in January. We had launched an ultra-concentrated laundry detergent last year that comes with this easy-dose cap. Those caps are made in China. In January, we had a really big challenge on our hands to be able to get these. The second piece was in January when there were three cases reported in Seattle. And at that point we decided that we would extend the coverage of our inventory on our disinfecting products, because we suspected that there was going to be an increase in demand, but it wasn’t anywhere close to the surge that we saw when March came around.
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
You’ve mentioned that you anticipated some demand, but nothing like what was about to come.You’ve mentioned that you anticipated some demand, but nothing like what was about to come.
The week of March 8 we saw a surge in demand of somewhere between 600 and 750 percent. When you build a supply chain and package, you normally have about a 30 percent buffer to be able to meet a surge in demand. Nobody built a supply chain to be able to respond to that kind of surge in demand. So the team has been in a constant state of triage ever since, and we’re still in that.The week of March 8 we saw a surge in demand of somewhere between 600 and 750 percent. When you build a supply chain and package, you normally have about a 30 percent buffer to be able to meet a surge in demand. Nobody built a supply chain to be able to respond to that kind of surge in demand. So the team has been in a constant state of triage ever since, and we’re still in that.
To what extent were you able to meet that demand? Where does it stand now, three months later?To what extent were you able to meet that demand? Where does it stand now, three months later?
It really depends on the category. We sell everything from laundry detergent to dish soap to toilet paper and disinfecting products, cleaning products, diapers, wipes. Every category has a little bit of a different story, but in some categories we’re selling two and a half, three times what we would normally be selling even today. Over all, our business is almost twice the size of what it was a year ago.It really depends on the category. We sell everything from laundry detergent to dish soap to toilet paper and disinfecting products, cleaning products, diapers, wipes. Every category has a little bit of a different story, but in some categories we’re selling two and a half, three times what we would normally be selling even today. Over all, our business is almost twice the size of what it was a year ago.
What was it about toilet paper that made it so hard to come by?What was it about toilet paper that made it so hard to come by?
First of all, nobody anticipated the level of stocking up you would see on toilet paper. That shocked everybody. But any of these paper businesses are very capital-intensive businesses. You only make money in that business if you’re running your machines pretty close to capacity. So when you have a big surge in demand, it’s hard to increase more than you’re already producing, because you’re generally producing pretty close to capacity. You don’t have the kind of flexibility that you would normally expect to have in another business.First of all, nobody anticipated the level of stocking up you would see on toilet paper. That shocked everybody. But any of these paper businesses are very capital-intensive businesses. You only make money in that business if you’re running your machines pretty close to capacity. So when you have a big surge in demand, it’s hard to increase more than you’re already producing, because you’re generally producing pretty close to capacity. You don’t have the kind of flexibility that you would normally expect to have in another business.
When Paul Polman left as chief executive, a lot of people wondered how deep the roots of cultural change were at Unilever.When Paul Polman left as chief executive, a lot of people wondered how deep the roots of cultural change were at Unilever.
Yeah. And huge kudos to Alan Jope, who’s come in and is doubling down on his commitment to the space as well.Yeah. And huge kudos to Alan Jope, who’s come in and is doubling down on his commitment to the space as well.
When Unilever first came to us to discuss buying the business in 2016, the company wasn’t for sale. We were doing really well. We were growing rapidly. We had incredible, patient investors, and there was no reason for us to sell the business. But when they approached us, what we realized was if we were to ever sell the company, the only company we could ever sell it to would be Unilever, because the values are so aligned to what we were standing for. What we realized was that for a company that believes in transforming the world and the way that business is done, we could go from affecting millions of people here in the U.S. to potentially billions of people around the world.When Unilever first came to us to discuss buying the business in 2016, the company wasn’t for sale. We were doing really well. We were growing rapidly. We had incredible, patient investors, and there was no reason for us to sell the business. But when they approached us, what we realized was if we were to ever sell the company, the only company we could ever sell it to would be Unilever, because the values are so aligned to what we were standing for. What we realized was that for a company that believes in transforming the world and the way that business is done, we could go from affecting millions of people here in the U.S. to potentially billions of people around the world.
There’s a lot of concern that in the midst of all of this, especially with so many consumers having to be much more cost conscious with unemployment being what it is, that environmental concerns are going to take a back seat, that people might go for the cheapest rather than the greenest product on the shelf. What’s your early read on how that’s going to play out over the next months and years?There’s a lot of concern that in the midst of all of this, especially with so many consumers having to be much more cost conscious with unemployment being what it is, that environmental concerns are going to take a back seat, that people might go for the cheapest rather than the greenest product on the shelf. What’s your early read on how that’s going to play out over the next months and years?
You’d be shocked if I didn’t say that sustainability continues to be critically important for people. The reality is right now that people are most concerned about their basic health and safety needs for themselves and for their families. What we hear a lot from people is that they want to bring home products they feel are safe for their family and good for the world around them. For me, that’s a great sign that there’s still absolutely demand for sustainable products like ours.You’d be shocked if I didn’t say that sustainability continues to be critically important for people. The reality is right now that people are most concerned about their basic health and safety needs for themselves and for their families. What we hear a lot from people is that they want to bring home products they feel are safe for their family and good for the world around them. For me, that’s a great sign that there’s still absolutely demand for sustainable products like ours.
But beyond that, the fact is you can’t live a healthy life on a sick planet. And even if sustainability isn’t at the top of people’s mind, it needs to be a conversation that we have.But beyond that, the fact is you can’t live a healthy life on a sick planet. And even if sustainability isn’t at the top of people’s mind, it needs to be a conversation that we have.