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Building a Business Organically: Johannes Gutmann and Sonnentor
EXCERPTS
BUILDING SONNENTOR
Sonnentor put emphasis on sourcing its materials and ingredients from the Waldviertel region or from neighboring countries. Moreover, the company also dealt fairly with partners and suppliers, which extended far beyond the organic production. Approximately 40 percent of Sonnentor’s more than 700 organic products were produced by the company’s 150 partner farmers. Sonnentor also had a presence in the Czech Republic since 1999. Moreover, the company also started organic farming projects in Romania in 2006 and in Albania in 2007... |
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EXPANDING THE MARKET AND BUSINESS
Barring a short experiment with Austrian discount chain Hofer, Sonnentor sold its products to specialist organic stores rather than to supermarkets. The key reason was that supermarkets required products within a specific time span, a demand Sonnentor could not always meet given its model of packaging and labeling manually...
GUTMANN – THE SUN IN PERSON
Industry observers felt that Gutmann’s unorthodox style was the differentiator for him as well as for Sonnentor. His reputation for eccentricity playe ad an important role in the success of the company, they said. While on one hand, he set himself up as different from his competitors in Sonnentor’s early foray into local markets, he also had the freedom to experiment without bothering about his reputation. During the initial years, Gutmann used to sell his organic products in the open air market in Austria wearing his 80-year-old lederhosen, matching scarlet shoes, and small round spectacles...
THE ROAD AHEAD
As of 2014, Sonnentor, with a 50 percent market share in the specialized organic trade (tea and spices, not including food trade), was leading the domestic market. Its products were sold in more than 45 countries globally. Since its inception, it had a constant annual growth rate of 10 to 20 percent. The company had over 150 partner farmers who supplied organic herbs to the company as against three organic farmers when it started out in 1988...
EXHIBITS
Exhibit I : Growth of World Organic Food Market
Exhibit II : Sonnentor’s Brand Symbol
Exhibit III : Sonnentor Shops in Austria
Exhibit IV : Screenshot of Sonnentor Webshop
Exhibit V : Sonnentor’s Product Catalogue
