September 1999

Nell Newman's Organic Mission

by Tom Meier

For most of her life, Nell Newman, daughter of Paul Newman and Joanne Woodward, stayed far away from the public eye.

That was before she had her mission.

Today, as head of Newman’s Own Organics, a division of her father’s food company, which she started in 1993 with long-time family friend Peter Meehan, she frequently introduces herself publicly as "Nell Newman, Paul Newman’s daughter."

She’s practicing what she calls "self-promotion with a cause." Her cause, she says, is "to support the environment through the growth of organic agriculture." And she does it, not by preaching to win converts, but by producing products, 80 to 100 percent organically grown, that people already like — pretzels, chocolate, chips, cookies. Her company’s slogan, "great tasting products that happen to be organic," illustrates her tactic. It’s a "crossover" approach that reaches out to mainstream consumers who might not otherwise be exposed to organics. In short, she’s used her family name to become an organic pioneer.

How did she get here?

Nell traces her interest in both the environment and organic agriculture to her childhood in rural Connecticut. "Basically we grew up in the woods in an old farmhouse," she says. "My early upbringing shaped my view of the world and instilled an appreciation for farm-fresh, local foods. My formative years were spent fishing with my father and learning to cook with my mother. When I was ten, I knew more about the biodiversity of the river that ran through our backyard than I probably know now. Papa and I caught fish and ate them with corn and tomatoes from Rippey’s farm stand. From an early age he coached me on the hollow sound of a ripe watermelon, and the sweet scent of a perfect cantaloupe. I knew where food came from because I had a connection to what we ate. I grew it and picked it, or caught it and cleaned it."

She also had a love for animals, particularly falcons. She was deeply involved with the sport of falconry from a young age. But when she was eleven, she learned that Peregrine Falcons were facing extinction from the use of DDT. She recalls, "That was a horrifying realization for a young child to know that here was this fantastic bird of prey, flown by kings of England and able to dive at two hundred miles an hour, that was going extinct due to pesticides. That was sort of the catalyst which intrigued me to get into organics." The experience gave her an intimate understanding of the interconnection between healthy agriculture and a healthy ecosystem, she says.

Years later, after graduating from the innovative, hands-on College of the Atlantic in Bar Harbor, Maine, Nell became a wildlife ecologist and worked to help restore endangered species to their natural habitat, including her beloved falcons. As part of this work, she did a lot of fund raising. But there was "a tremendous amount of frustration" because, although she knew how important the work was, it was tough to raise enough money to continue many of the projects. "I joked that I was sick of trying to raise money; I just wanted to give it away," she says.

Then one day she came up with a possible solution. Why not start an organic food company? By supporting organic agriculture, she thought, she would be helping to reduce overall pesticide use — and could also donate profits back to charities and nonprofits that support environmental causes.

She’d need some start-up support; the challenge would be convincing her dad. So she baked the family a traditional Thanksgiving meal. Afterwards, she asked her dad how he liked it. He loved it. And then she told him it was done with all organic ingredients. "Oh you mean like that nut loaf with yeast gravy your mother used to make back in the seventies?" he quipped. Nell realized there was a need to educate people about what organic was. She began with her dad.

Later, she asked him what he thought about her starting an organic division within Newman’s Own. Nell had old friend Peter Meehan draw up a business plan and they presented it to her dad.

"Pete and I didn’t really know anything about the industry," she says. "But Dad was very supportive. He said,‘Okay, get out there and educate yourself, and I’ll pay you a small salary for a year to do it.’" So they did; they went to natural food shows, attended classes, and even audited a course on organic certification.

Products that appeal to everyone

And the next year they came up with their first product: pretzels. This was during the boom in the pretzel industry, Nell explains. "At the time, there seemed to be a wealth of whole-grain products on the market, but few appealed to people like my dad, who might buy organic if it looked like something familiar to him. There was no way I was going to talk my dad into doing a seven- grain one. He would have said,‘That’s not a pretzel, that’s a dog bone.’

"The more I thought about it, the more it looked like an opportunity. I thought, maybe there’s a whole bunch of people out there who might eat organic if it looked familiar," she says. So she and Peter came up with a white-flour pretzel that would appeal to "mainstream eaters" but was 100 percent organic. "I guess we did something right, because within three years we were the number one pretzel in health food. We’d paid back all our startup costs, and donated our first profits to charity."

That was over seven years ago. Sales of their pretzels have grown every year (this year sales are up 28 percent). It’s still the number one pretzel in the natural food industry.

Newman’s Own Organics also has the number one cookie in natural foods — Fig Newmans, a name coined by Meehan. Nell explains that she and her father instantly loved the name, but first, they had to get permission from Nabisco to use it. "Dad called them and said,‘We’ve got this great little organic division, we’ve got this great name, and we give all the profits to charity. What do you think?’ And the then president of Nabisco said,‘Sounds like a great idea.’" Nell says to say thank you, they let Nabisco decide how a portion of Fig Newmans’ profits are given away to charities.

Fig Newmans are significant for another reason too. They were the first fig bar to use organic figs. Today, according to Meehan, Newman’s Own Organics is the number one purchaser of organic figs in the country. In fact, Nell explains, they have practically created the organic fig market. A few years ago the supply of organic figs in the country greatly exceeded demand. "The first certified organic grower I contacted sold 75 percent of her crop as conventional because there was no market for them!" Nell says.

Since Fig Newmans appeared on the market, two or three other food companies have come out with fig bars using organic figs, says Peter, which further grows the organic fig industry.

Fig Newmans is the company’s only product that is not 95 to 100 percent organic. "My initial motivation was to be 100 percent organic," explains Nell, but the cost of organic corn syrup was over a dollar more a pound than conventional, which would have made the retail price of Fig Newmans more than four dollars a box. "Somebody will always stand up at organic farming conferences and say,‘I’d pay five bucks a bag for them,’" she says, but Nell is interested in reaching out to more mainstream shoppers who probably wouldn’t pay that much. So a trade-off was made. Fig Newmans are made with 80 percent organic ingredients. But Nell and Peter intend never to produce anything that’s less than 80 percent organic.

Actually, this commitment to using at least 80 percent organic ingredients has had an influence on the industry, according to Bob Scowcroft, executive director for the Organic Farming Research Foundation. He says, "Nell’s passion has helped create an environment in the industry in which newcomers to the field are almost exclusively producing products of 95 to 100 percent organic."

Supporting sustainable agriculture in third world countries

Newman’s Own Organic chocolate bars ("dangerously good" according to Nell) are 99.9 percent organic. They come in six varieties, but one thing remains constant about all of them.

To produce the chocolate, Nell teamed up with Joe Whinney, who runs the Organic Commodity Project. Whinney spent several years in Costa Rica helping small cacao farmers become certified organic and farm-grower cooperatives. The cacao is not grown on big clear-cut plantations but rather on the shady understory of the jungle, making it sustainable agriculture. Most of the cacao is grown around the La Amistad Biosphere Reserve, which is run by the Nature Conservancy. In addition, Whinney’s organization subsidizes the farmers when global cacao prices are low in a form of International Fair Trade. Nell admired all of this and wanted to support it.

"Besides my love for chocolate, I was drawn to this project because growing the cacao in this ancient way meant that no rainforests would need to be destroyed. We want to encourage this method by supporting the farmers economically. And Joe had the same ethical standards we do," she says.

It’s clear the admiration goes both ways. "We work with a variety of companies," he says, "yet Nell’s commitment to truly sustainable agriculture is about as high as it gets. There’s just tons of integrity."

A mission of education

"My mission is to educate people about organic agriculture," says Nell. The Newman name gives her a unique platform — an opportunity to have a deep impact — and she knows it. She frequently gives talks at trade shows and conferences; she’s appeared on Oprah with her father, and on Extra. She’s spoken at a variety of places and events, including the Chef’s Collaborative, the National Aquarium in Baltimore, the Spring Garden Festival in Kohler Wisconsin, even the L.A. Times Small Business Conference. (Recently she was asked to speak at a women federal judges’ conference but had to decline because of scheduling conflicts.) She also frequently does product demos in stores.

While serious about organic, she tries to win people over gently. "It’s a fine line between educating and proselytizing," she says. "It’s a different tone. And I usually don’t listen when people proselytize to me."

This gentle style is the key to their crossover approach. "We want to offer organic food products with wide consumer appeal," says Nell. "That was the motivation for the motto,‘great-tasting products that happen to be organic,’ Because then you don’t have to convert people to some whole other way of thinking. People don’t change so easily. If it tastes like a hot dog or tastes like a pretzel, or it tastes like a bar of chocolate, they’ll buy it and enjoy it without having to be convinced. And then perhaps they’ll come around to the organic thing and say,‘Well maybe it is a good thing.’"

By helping more consumers shop organic, Nell and company are also contributing to the growth of many small, often family-based organic farms throughout the country — and internationally.

In terms of day-to-day responsibilities, Peter says that Nell is the public spokesperson and resident organic expert. In addition to her busy schedule of talks and product demos, she researches various suppliers to ensure that all of Newman’s Own ingredients are certified organic. Peter is head of sales and marketing and handles much of the business, working with their processors, retailers, and distributors. Both Nell and Peter do product development.

Although she never saw herself in this role, Nell showed an early flair for marketing years ago when she suggested to her father that he highlight "All Profits to Charity" on his Newman’s Own packaging. Up until that time, it appeared only in small print on the back.

Nell says she had to overcome a fear of public speaking, but the depth of her cause gives her strength. She never wanted to be an actress, although she’s had many chances to enter the field. One of the only acting gigs she ever did was to narrate an environmental documentary called "The Eagle and the Hawk," which was aired on PBS in the seventies. She was twelve at the time. She’s said publicly that she’s more impressed with environmentalists than actors.

Making organic fun

Though serious about their mission, there’s a streak of fun that runs through everything they do at Newman’s Own Organics, based in Northern California. This they got from "Papa" Paul Newman, whose desk at the home office of Newman’s Own in Connecticut is a plastic patio table with a big beach umbrella and a nameplate on the desk that reads: Assistant Lifeguard on Duty.

Take the way they decide what products to produce. "It’s whimsical," Nell admits. "We do whatever tickles our fancy. My sister jokes we only make what we like and we only like what we make." Instead of rushing to market anything they think will sell, they really only produce what they truly enjoy and is fun for them.

And even their packaging is fun, with bright and colorful photos of Nell and "Pa" Newman in various American Gothic poses. Instead of "blasting the products with organic messages," says Peter, they use the backs for crazy stories. This was a tradition started by Paul Newman, and remarkably, all the stories on the packages are written by either Nell, Peter, or Paul. Nell says, "Whoever writes the best one gets to put it on the back."

Getting people involved

Of course, Nell and her little division are also carrying on another tradition from her famous father — giving all after-tax profits to charity. Newman’s Own has given away over 100 million dollars since 1981. (According to Peter, if Paul Newman were a private foundation he would be in the top one percent of all charitable foundations nationwide.)

The way Nell’s division gives, however, is unique. In what Peter calls "the best idea we’ve ever come up with," Newman’s Organics keeps a list every year of people who have helped them out in special ways and then lets these people decide how a portion of the company’s profits are given away. The list might include store owners, brokers, even employees packing pretzels. It’s not a contest or a form of payola for the biggest accounts, but rather a special thank you to people who, at whatever level they work, have shown a real understanding for Newman’s Own Organics’ deeper goals. For example, sometimes a tiny store might display a whole wall of their products "without even knowing they’re eligible for something like naming a charity gift," says Peter. (It’s this humble devotion that they reward, a devotion that Nell and Peter themselves display.) And Newman’s lets these recipients decide how a certain chunk of the profits will be given away. Then Newman’s sends a check to the person’s chosen charity saying it’s from Paul Newman, but the person to really thank is the individual store owner, etc.

This lets people participate in one of the fundamental missions of the company, which is giving money away. Says Peter, "Nell and I have found that it’s so fun and rewarding to give money away, that we thought the best way to explain it to people was to let them get a taste of what it feels like to give. Once they do this, they get so revved up about our product line because they actually get to experience first hand what we’re all about." This creates like a "loyalty club" that turns these people into evangelists for Newman’s Own Organics.

Then Nell and Peter decide how the rest of the profits are given away. The organizations that Newman’s Own Organics gives to reveal Nell’s passions: the Organic Farming Research Foundation, Predatory Bird Research Group, Habitat for Humanity, Henry A. Wallace Institute for Alternative Agriculture, Grand Canyon River Guides, Rainforest Action Network, and many others. Peter says they give to many organizations to "spread the money around" rather than giving larger donations to fewer nonprofits. The largest single grant they’ve given is $30,000.

And Nell is combining organics with traditional charity giving in unique ways. For example, she says, "We’re involved with the start-up of a new camp for kids with life- threatening diseases in the Los Angeles area that’s going to be a working organic farm." Called the Painted Turtle Camp, it was masterminded by Paige and Lou Adler, Nell says.

Bob Scowcroft says that Nell is bringing a new level of conscience to the organic industry. "She and Peter are doing a great job in reminding people about philanthropic activities and giving something back," he says. "Nell is reminding the organic industry what they’re here for in the first place, because for a long time organic food companies were reinvesting all of their profits back into themselves. Now they’re revisiting some of the philanthropic ideals that they started with."

It’s clear in talking to Nell that she feels deeply enriched by being able to give. And when she speaks about organic agriculture and the environment, you feel her genuine passion. (Refreshingly down to earth and intact, Nell doesn’t even have e-mail. "I only surf in the ocean," she jokes. No California beach girl, she’s taken up surfing only a few years ago as a way to stay connected to nature.)

Peter confides: "She won’t tell you this but her dad is so incredibly proud of her. He thinks she’s the world’s greatest spokesperson for organics. But especially for her to give away all the after-tax profits is incredible. Remember, she doesn’t have Paul Newman’s income. It’s really a substantial thing for her to do that. Both of us probably give away two to three times what we make at Newman’s Own Organics."

Challenges

Though Peter and Nell both readily admit that they’ve "ridden on Paul Newman’s coattails," they are quick to point out that the ride has not lacked its own challenges.

Nell’s latest frustration is genetically modified foods. "It’s almost ruined my idea of a good time in the organic business. To me the only way to solve this problem right now is a total moratorium," she says. Recent events in Europe’s banning of genetically modified food products might just lead to Nell’s wish.

Another challenge for Nell, as a person who values her privacy, is to continually expose herself to the public. People often want to talk more about her Paul-Newman-blue eyes than organic agriculture. But she endures it with "incredible grace and poise," says Bob Scowcroft.

For the common good

Nell is an organic pioneer, according to Scowcroft, precisely because she’s using her globally recognized family name to educate people about issues important to the planet.

And although Newman’s Own Organics makes up far less than ten percent of the Paul Newman’s Own empire, it’s growing exponentially. This year alone, says Peter, their division will double in size. So far, Newman’s Own Organics has donated over $500,000 to charity. Peter says there’s an outside chance they may match that figure this year alone. Organics is booming, but their rate of growth far exceeds the growth for the organic industry as a whole.

This heartens Nell. She wants to help grow organic "as fast as possible with as much integrity as possible. This company is just my way to better myself and the environment. So that’s why I do it. I’m not out there to make money, you know. I’m out there to try and do something on a bigger picture. My long-term goal is to get as big as Newman’s Own."

As consumers, we can support these goals by buying Newman’s Own Organics products. "Our key word is participation," says Peter. "If we can make something good and you can buy it, now you can support sustainable agriculture, give money to charity, and eat a great cookie. How hard does life have to be? You’ve gotta eat. It’s just the simple act of buying. You don’t have to salute anything. You don’t have to cut a check. You don’t have to think about it. You just, if you like the products, buy them."

"I consider our donation twofold," Nell concludes. "We not only give to charity, but we grow organic farmland. This affects water quality, quality of life for farmers, animals, all of us. We’re a little division, but what we’re doing is so big, you can’t measure it only in money."



Products available from Newman’s Own Organics:
The Second Generation Pretzels (five varieties), Tortilla Chips (three varieties), Fig Newman Cookies, Chocolate Bars (six varieties), Champion Chip Cookies (four varieties of chocolate chip cookies). New products will be announced later this year. For more information, see their web site.

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