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Recent Stories

Aug, 5, 2007

WORKPLACE

Enjoying the fruits of his labor

Nature’s Path finds success focusing on organic foods


NIKI DESAUTELS THE BELLINGHAM HERALD

Arran Stephens, CEO of the Canadian-based Nature’s Path, stands in the warehouse that used to house raw materials for his company’s products as he talks with reporters at the plant in Blaine.


ABOUT NATURE’S PATH

Headquarters:
Richmond, B.C. The company will have three manufacturing plants, a distribution center and one office. The entire company employs more than 250 people.
Blaine facility: Opened in 1999, the facility employs 150 people. It currently has 145,000 square feet of space. Expansion plans will soon be under way, with the first phase adding 30,000 square feet.
What they make: About 150 products, including cereal, cereal bars and toaster pastries. The products are made from organic ingredients.
Company history: The company was founded in 1985, growing 800 percent in the first four years. It stared with cereals, branching out into waffles and other breakfast-related products. The company now exports its brand to more than 30 countries, and makes more than 1 million cereal bars a week.
Brand names: EnviroKidz Organic (1 percent of sales go to help endangered species and environments), Lifestream and Nature’s Path Organic.
Web site: www.naturespath.com.
ABOUT ARRAN STEPHENS

Age: 63
Family: He and his wife, Ratana Stephens, have four children and three grandchildren. Two of his children, daughter Jyoti Stephens and son Arjan Stephens, work at Nature’s Path. Ratana Stephens is the company’s chief operations officer.
On his bookshelf: The book that has had the most impact on Stephens recently is “The Toyota Way,” by Jeffrey Liker. Since reading the book Stephens has been developing lean manufacturing practices at Nature’s Path. Other books he’s read lately are “Good to Great,” by Jim Collins and “Lean for Dummies,” by Natalie Sayer and Bruce Williams.
Leadership style: He focuses on being open and inclusive. “You have to be willing to learn or you start to fossilize,” Stephens said.
`

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DAVE GALLAGHER
THE BELLINGHAM HERALD

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BLAINE — During the work week when many company owners are tied to the office, Arran Stephens might be found tending his garden at his home in British Columbia.

It’s not that he doesn’t have enough to do with his cereal company, Nature’s Path. What he’s discovered in decades of running a company, however, is that the job really comes with its own schedule and he makes a point to fit his other passions around it.

“Being an executive is not a 9-to-5 routine; something involving work could strike me at any time,” Stephens said. “It’s important to me to be able to spend some time with other things I enjoy, whether it’s growing food or spending time with my children and grandchildren.”

Much like Stephens’ garden, Nature’s Path has been seeing growth for several years, and Stephens expects it to continue as the company carves a niche in the vast cereal market. By establishing itself in the organic cereal industry before it became a mainstream product, Nature’s Path now competes against companies such as General Mills and Kellogg, currently controlling more than 30 percent of the organic cereal market.

“I’m amazed and grateful that we’ve grown to this level. We believed in the vision, but never dreamed it would get to this scale. But it also makes us a target,” said Stephens. “It really helped that we were far ahead, so we can look at other aspects of the market while others are catching up.”

With the big, national companies interested in organic cereal, Stephens said he’s had “hundreds” of offers to buy the company, but so far he’s refused. Part of it is his desire to keep it a family business, but also to have an independent company in the organic food industry. He wants to make sure the company maintains what he considers a triple bottom line: Being socially responsible, environmentally sustainable and financially viable.

“Organic foods started off as a movement, and it made sense to me that would become mainstream and the big guys would swoop in,” Stephens said. “I didn’t think that would be a bad thing, but I do believe there should be family businesses in this industry.”

Stephens continues to stay focused on growing the company. It recently introduced organic toaster pastries and continues to grow its cereal market. The company is currently looking to add another 20 jobs at the Blaine facility and build another 30,000 square feet of space within the next year. The company is also looking at expanding other facilities.

“At first our goal was to reach $1 million (in sales), then we just kept raising bar,” Stephens said. “Now we’ve reached a point where we don’t set a monetary bar; now it’s more about being a trusted name in households. We’re still a small company in the overall cereal market, but to us it’s a different level now.”

The challenge for the company is maintaining its environmentally friendly ideals while growing. Stephens’ daughter, Jyoti, is the manager of sustainability for the company and has set a goal of having zero waste go to the landfill, having it all recycled.

“It can be difficult finding the time when the company is growing, but fortunately we have people on board who know about our goal,” Jyoti Stephens said. “The biggest issue is recycling all the small things. We’ve been able to tackle the big things that had been going to the landfill.”

The rise of Nature’s Path didn’t come without some bumps in the road. Arran Stephens recalls the early 1990s, when a rapid growth period left the company without enough capital. There was a period where he wasn’t sure he could make payroll.

“It was a terrible time for me. I never wanted to be in that situation,” Stephens said.

One thing he learned from that experience was the value of working with his suppliers. He went to each one and explained the situation and negotiated a payment plan; one even loaned Stephens money that he was able to pay back.

“The key was making sure to at least pay a little each month. Within a year we were able to pay it off,” Stephens said. “There was a temptation at the time to get some outside capital, but we resisted.”

Stephens believes the company will continue its double-digit growth for the next few years, partly because demand for organic food continues to grow in the mainstream market.

“We’re beginning to do more with food service, such as supplying the U.S. military and other areas like airplanes,” Stephens said. “It’s been a journey to get to this point, and it’s been an enjoyable one to this point.”


Reach Dave Gallagher at 715-2269 or dave.gallagher@bellinghamherald.com.

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