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2010 Philanthropy Award

Alacer gets strategic with its charity, building product lines specifically tied to beneficiaries and causes

Charitable efforts seem to come naturally for Alacer. The maker of Emergen-C vitamin-drink mixes supports communities in need across the globe with direct financial contributions and, in a true spirit of giving, by tying sales of targeted product lines to complementary causes. This way, Alacer brings its customer straight into the philanthropy mix.

For every box of Emergen-C Pink sold, 20 cents goes to the Keep A Breast Foundation (KAB) and its efforts to increase awareness of breast cancer. For every box of Emergen-C BLUE sold, the same percentage of proceeds goes to the Surfrider Foundation and its efforts to promote clean waters. Alacer also works closely with Operation Gratitude, a volunteer initiative responsible for the delivery of care packages to U.S. troops deployed in Iraq and Afghanistan. To date, 700,000 packets of Emergen-C have made that trip to combat zones overseas.

According to Ron Fugate, president and CEO of Alacer, this focus on philanthropy can be traced back to the company's origins. “It's been part of our DNA from early on,” says Fugate. “It's good for the business, good for company culture, and good for the brand.”

For Alacer, philanthropy is about much more than public relations. Fugate is a businessman at heart, able to set ambitious goals and deliver growth — Emergen-C sales have more than doubled under his leadership to 500 million packets annually — but that's not all he is. “As fun as success can be,” says Fugate, “we do need a higher purpose.”

The charitable relationships Alacer has worked hard to develop also work out well for the beneficiaries, of course. Kimmy McAtee, marketing manager for KAB, says the two entities' shared focus on wellness fuels a strong working relationship. McAtee differentiates her organization from other breast-cancer nonprofits through this focus on prevention, women's health and, especially, environmental factors that contribute to the disease.

Given the latter, KAB screens its corporate contributors carefully. “We wouldn't want to put out a product that's linked to cancer, even if it's raising money for us,” says McAtee. Alacer passed the test, and KAB has been working with them ever since, making sure to earmark donations for projects that are aligned with the company's mission as well as its own.

KAB spends significant effort on education and outreach, so they took Emergen-C Pink out on the road this past year. Grassroots education efforts included a tour dedicated to college campuses and a booth at a major music festival. Furthermore, thanks to product proceeds from Emergen-C, KAB upped its grants program, awarding five grants of $10,000 each in 2010 to organizations and individuals making a positive impact in the fight against breast cancer.

Selecting KAB as a beneficiary was no chance occurrence. Fugate knows well that young women are a primary consumer of Emergen-C products, so it makes eminent sense to collaborate with an organization targeting health for that demographic.

KAB focuses largely on young women because that population group remains, frustratingly, one of the least educated about breast cancer. Fugate and McAtee both see the synergies here, and confirm that the relationship between their organizations has been a positive one all around.

Additional charitable relationships have progressed just as smoothly for Alacer. Take Emergen-C Planet, a recent introduction created in partnership with Whole Foods Market. Alacer's new dragonfruit flavor was launched to support the health food retailer's Whole Planet Foundation, which provides microloans in poverty-stricken areas worldwide.

Asked whether the new flavors are born first and the charitable relationships form around them, or whether an alliance is established sooner in the product development cycle, Fugate says the seed is usually planted early. When the philanthropic partnership comes together with design and marketing requirements, “that leads toward a flavor profile pretty quickly,” he says.

Beyond these product ties, says Fugate, Alacer is happy to contribute directly to immediate causes, including international relief efforts that arise in response to natural disasters. He cites post-earthquake Haiti as a prime example of a situation wherein Emergen-C has a unique ability to provide meaningul aid with a nutritive drink packaged in shelf-stable, sanitary, single servings.

Overall, Fugate finds the philanthropic process to be a stimulating one that elicits strong consumer responses and, at least so far, poses little threat to cannibalizing sales from product lines not tied to a cause. Alacer has been able to raise what Fugate calls a “substantial amount of money” for several charities to date, but he attributes the continued success of Emergen-C products more broadly to consumer loyalty and the consumer's affinity for a wide variety of flavors.

“You know the expression — ‘doing well by doing good’ — that's a cliche for a reason,” says Fugate. “We've seen this effort do great good. It's an ancillary benefit that philanthropy has worked out so well for us as a company.”


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