Live Better Index

Wal-Mart's consumer research shows that many of their consumers are out front in the company's move toward "greener" products. Wonder how a recession will change things, if at all. As a sustainability index goes, I would have to say it is based on a narrow product range and a 1.5% adoption rate for organic milk isn't all that great. Still, Wal-Mart is listening to consumers and not asleep at the wheel. From the PR Newswire:

BENTONVILLE, Ark., April 21 /PRNewswire-FirstCall/ -- On the eve of celebrating Earth Day, Wal-Mart issues new consumer research that shows shoppers are considering the environment before making a purchase. Today the retailer announced an adoption rate increase of 66 percent from last year in its sustainability Live Better Index, which has been tracking consumers' decisions to purchase five key eco-friendly products since April 2007. This growth in the sustainability index shows that concern for the environment has a growing presence in shopping baskets of the retailer's 200 million annual customers.

The sustainability Live Better Index follows the adoption rates -- sales compared to other products in the category -- of five eco-friendly products based on Wal-Mart sales data. The overall adoption rate of these products serves as a nationwide trend indicator of consumer demand for 'green' products. These products were selected because consumers can make a conscious decision to purchase them for their environmental and cost-saving benefits versus other products in the same category.

"When the sustainability Live Better Index was established, we wanted to help Americans understand that environmental choices were accessible and affordable for everyone," said Stephen Quinn, chief marketing officer at Wal- Mart. "The fact that product adoption has increased dramatically in one year shows that the decisions our customers make in the aisles coupled with Wal- Mart's commitment to providing more eco-friendly choices at the best value is helping consumers and the planet live better together."

Eco-Friendly Products on the Rise

The sustainability Live Better Index data for April 2008 show a 37 percent increase in adoption of organic milk and a 47 percent increase in adoption of compact fluorescent light bulbs since April 2007. In October 2007, Wal-Mart began a nationwide transition to sell only concentrated liquid laundry detergent as part of its commitment at the Clinton Global Initiative, contributing to the increased adoption rate of concentrated liquid laundry detergent. As a whole, adoption rates of the five sustainable Live Better products have increased significantly over the past year:

    1.  Compact fluorescent light (CFL) bulbs - Average adoption rate of
      19.7 percent (up from 13.39% in 2007)
        - Delaware leads the category with an adoption rate of 25.8 percent
  2.  Organic baby food and formula - Average adoption rate of 4.12 percent
      (down from 4.31% in 2007)
        - California continues to lead the category with an 8.58 percent
          adoption rate
  3.  Organic milk - Average adoption rate of 1.58 percent (up from 1.15% in
      2007)
        - Virginia has the highest adoption rate of organic milk at
          2.7 percent
  4.  Extended life paper products - Average adoption rate of 67.5 percent
      (up from 50.77% in 2007)
        - Minnesota has the highest adoption rate with 78.1 percent
  5.  Concentrated/reduced-packaging liquid laundry detergents - Average
      adoption rate of 76.3 percent  (up from 22.86% in 2007)
        - Oklahoma leads the category with an adoption rate of 96.3 percent

To reflect the growing consumer preference for eco-friendly products, Wal-Mart will now track additional product categories including sustainable coffee and eco-friendly cleaning products in the Live Better Index. These additions follow the introduction of the Sam's Choice coffee (Apr. 2008) and Clorox Green Works(TM) (Jan. 2008) lines to Wal-Mart stores.

Wal-Mart tapped into the growing influence of environmental concerns on consumer shopping behavior, as shown by the new sustainability Live Better Index findings, and launched its most comprehensive environmental sustainability campaign this April to celebrate Earth Month. The campaign highlights eco-friendly products available at budget-friendly prices, including all of the products tracked on the sustainability Live Better Index. New products introduced to consumers included t-shirts made from transitional cotton and recycled plastic soda bottles and Sam's Choice sustainable coffees.

American Consumers Continue to Drive Change: Live Better Index 2008 Findings

As the number of eco-friendly products at Wal-Mart grows, many states across the country are starting to take notice and are increasing their commitment to eco-friendly products:

    -- California is now the "greenest" Wal-Mart state in the country,
     surpassing last year's leader New Hampshire, with an average adoption
     rate of 38.8 percent.
  -- New Mexico had made the most progress since 2007 with a more than
     96 percent increase in their overall adoption rates.
  -- In just three months, eco-friendly cleaning products garnered a
     4.8 percent adoption rate across the United States.
  -- Washington leads the way for sustainable coffees with a 0.7 percent
     adoption rate.

More details on the Live Better Index can be found online at http://www.livebetterindex.com.