MERCHANDISING AND STRATEGY CHANGES
A glance at retailers that are restrategizing
Posted November 2007
Tully’s now features fair trade certified and organic espressos in all company-owned stores and expects its 48 franchised stores to be converted by the end of 2007.
To pull off a move of this size — billed as the first and largest of its kind — Tully’s teamed with TransFair USA, the only third-party certifier of Fair Trade products in the U.S. The nonprofit organization helps farmers in some of the poorest communities in Latin America, Africa and Asia bring in a “fair, above-market price” compared with selling to local intermediaries.
The move comes after the coffee retailer and wholesaler introduced the beans at the University of Washington in 2006 and conducted trials at San Francisco-area locations starting in April.
On the same day in September when Tully’s announced certification of its coffee beans, the roaster announced another partnership. Tully’s will serve its hot beverages in fully renewable and compostable paper cups that will be collected and transported to organic composting facilities in Everett and Maple Valley. The cups are sources from International Paper and come with a certification by the Biodegradable Products Institute.
The cups do away with the conventional lining made from petrochemicals in favor of a bioplastic made from corn. Tully's claims this material requires less energy to make and is greenhouse gas neutral.
MERCHANT DU VIN
Domestic and international brewers are creating new recipes aimed at adults who experience wheat allergies or who choose a wheat- or gluten-free diet.
Anheuser-Busch, the leading American brewer with nearly half of U.S. beer sales, crafts Redbridge using sorghum as the primary ingredient. Sorghum is a safe grain for those allergic to wheat or gluten. Anheuser-Busch describes Redbridge as full-bodied lager with a well-balanced, moderately hopped taste.
Redbridge is available at several taverns in King and Snohomish counties in addition to area grocers Whole Foods Market, QFC and Metropolitan Market.
Predating beer giant Anheuser-Busch’s entrance to the gluten-free market was Derek Green. The Englishman formed Green’s to create his mix of lagers, ales and beers. Discovery, Endeavour, Pilgrim, Pioneer, Herald and Trailblazer are the labels exclusively distributed by Tukwila-based Merchant du Vin Corporation.
Find Green’s at Old Town Alehouse and Squid And Ink in Seattle, The Grape Adventure in Kent along with upscale supermarkets Central Market, Larry’s Market and Whole Foods.
These beers target adults with Celiac disease, those suffering from Irritable Bowel Syndrome and vegans or vegetarians wanting to cut certain ingredients out of their lifestyles. Celiac disease is a common disorder affecting more people than Cystic Fibrosis, Multiple Sclerosis and Crohn’s disease combined.
The reverse mortgage industry saw waves of change in 2007.
Institutions selling reverse mortgages worked to lower costs on the products. Ginnie Mae, a federal housing organization that guarantees loans for low- and middle- income households, helped drop interest rates by moving to sell reverse mortgages to Wall Street investment banks.
Countrywide, a top mortgage originator and servicer, began offering reverse mortgage products this year. In addition to offering loans backed by the federal government, the California-based company offers SimpleEquity Reverse Mortgages that can provide a larger loan than is typically available.
In acquiring Seattle Mortgage, Bank of America secured the country’s third largest reverse mortgage company. Seattle Mortgage operates branches under its own name or though a branch network in Washington, Kentucky and Texas with plans for additional locations in Washington, California and Oregon.
Wells Fargo, with its years of experience in the reverse mortgage market, is by far the industry’s biggest player.
The National Reverse Mortgage Lenders Association estimates 80 to 85 percent of reverse mortgages are backed by the federal government. The number of reverse mortgages has spiked in recent years in Washington according to the NRMLA; in 1996 there were 117, in 2001 there were 341 and in 2006 there were 2,018 federally backed mortgages.
Reverse mortgages allow homeowners at least 62 years of age to tap the equity built up in their homes while continuing to live there. The homeowner receives funds from the lender using a variety of options. Oftentimes the payments are tax-free.