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QUESTION & ANSWER: JOHN REPLOGLE

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CEO calls his shuttle a plus

More Information

  • Business: Sells natural laundry detergent, diapers and other products that are designed to be healthier and safer

    Based: Burlington, Vt.

    Founded: 1988

    Size: More than 100 employees, $150 million in annual sales

    Name: Comes from the Great Law of the Iroquois Confederacy that states, "In our every deliberation, we must consider the impact of our decisions on the next seven generations."

    Website: www.seventhgenera tion.com/learn/blog



John Replogle's new job came with quite a commute.

Replogle quit as CEO of Durham-based Burt's Bees in February and in March became CEO at Seventh Generation, a Burlington, Vt., company that sells environmentally friendly laundry detergents and other natural household products.

But Replogle (rep-luh-gul), 45, who has lived in Raleigh with his wife and four daughters for more than five years, didn't move. Most weeks he spends Monday through Thursday in Vermont, living out of an apartment next to Seventh Generation's headquarters. On Fridays, he works out of an office near Raleigh's Cameron Village. Every third week he travels or stays in Raleigh.

"Companies don't need to all sit under one roof," he said during a recent telephone interview. "It can be an arrangement of talent brought in from all places to get the right collection of people together.

"It's a sign of things to come for leadership and business over the coming decade," he added.

Some other highlights from Replogle's discussion with (Raleigh) News & Observer writer Alan M. Wolf:

On why a Raleigh office makes sense for a Vermont company:

For starters, Raleigh is a convenient place to reach Seventh Generation's retailer customers in the South and central parts of the country, Replogle said. As the company expands, he may make Raleigh an official sales office, and add other positions there.

From a personal standpoint, when he's in Vermont, Replogle spends more time "hyper-focused" on running the business and working with his management team.

"When I'm in Raleigh, I stay connected through Skype and other modern tools we have, but it also gives me a chance to lift my head up and do some strategic planning," he added.

On the challenges Seventh Generation faces:

Rising commodity costs and increasing competition are two major challenges. Cost is a big one because consumers have been cutting their household budgets during the recession, and natural products tend to be more expensive.

The good news is that the "downturn has caused a shakeout of some of the bigger companies trying to enter the space," he said.

One big competitor is Green Works, the line of household products sold by Clorox, which is also the parent corporation of Burt's Bees.

The Seventh Generation brand is now known by about one in four U.S. consumers, and Replogle said his goal is to double that in the next four years.

"It's a brand with tremendous potential," Replogle said. "I'd like us to become, over time, a household name."

On making tough changes:

As at Burt's Bees, Replogle became CEO of Seventh Generation after its founder had stepped aside and a previous CEO had left. Part of his first few weeks at Seventh Generation were spent redefining roles, setting a strategic plan and cutting some jobs.

"I've seen this before and I think I know what needs to be done," Replogle said. "It's still a lot of hard work."

The private company now employs more than 100 people, all of whom are shareholders, and has about $150 million in annual sales. Some of his next steps include accelerating innovation and product development, to find new ways to "stretch the brand," he said.

In March, Seventh Generation introduced a laundry detergent bottle made from 100 percent recycled cardboard and newspaper.

Replogle also is spending some time recruiting employees, including a chief marketing officer with a strong background in consumer packaged goods.

On some of the upsides of his new company:

Seventh Generation has no debt and is sitting on "a great deal of cash" that will help it expand. More consumers are interested in products that are healthier for their families and good for the environment.

"We've got the wind at our back," Replogle said. "We formulate a safer product for under the kitchen cabinet."

alan.wolf@newsobserver.com or 919-829-4572

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