Eco-Products gobbles up $2M for compostable food items
With organic, locally-produced food items in high demand, it was only a matter of time before an enterprising startup or two took the next logical step: greening the supply chain. Eco-Products, a Boulder, Colo.-based maker of compostable food service supplies, has put the wraps on a $2 million first round of funding with Boulder-based Greenmont Capital Partners.
The proceeds will be used to expand the company’s operations and to finance the opening of its first department store, Ellie’s Home Store, in Boulder this November. In addition to its own line of products, the store will sell a variety of green household utensils and aim to become the city’s one-stop shop for consumers interested in eco-friendly goods — a rapidly growing component of the upscale Lifestyles of Health and Sustainability (LOHAS) market.
Eco-Products makes items like cups, plates and trays out of bagasse (sugarcane) and corn plastics (polylactide) and also sells green cleaning products. While it doesn’t seem to have affected its business, the company’s decision to use food-based feedstocks could dent its public image somewhat, especially in light of the current biofuel controversy.
According to the LOHAS Journal, these green products, which range from green building and organic cleaning supplies to eco-tourism and hybrid vehicles, comprised an estimated $209 billion U.S. market in 2006. At the time, close to 1 in 5 consumers, or 41 million individuals, identified with this demographic; this number is likely to have only grown over the last 2 years.
The firm, which has been in business since 1990, supplies a wide range of clients, including Google, Toyota, Stanford University and Sysco.
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About the Author, Jeremy Jacquot
Jeremy Jacquot is a doctoral student at the University of Southern California who is studying watershed management and global biogeochemical cycling. He previously studied marine biology at UCLA where he earned his B.S. in 2005; he is the Los Angeles correspondent for TreeHugger, where he focuses on science/technology and business news.