Episode Transcript
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(00:00):
This sprout pencil is a 100% natural FSC certified wood,
which means for every tree we cut down, we have to plant at
least one or two other trees instead.
From one single tree we can produce 175,000 pieces of sprout
pencils. Meaning we take one tree, we
make 175,000 pieces of sprout pencils.
We potentially plant 175,000 cherry tomatoes or spruce trees,
(00:24):
or forget me nots. It's really circular in all the
senses. Hello and welcome to the
Conscious Design podcast. I'm your host, Ian Peterman, and
I helped turn product ideas intosustainable 7 figure businesses.
Join me for another episode where sustainability meets
(00:44):
innovation and business savvy. Today, I'm really excited to
have Michael Strassholm. He's the CEO and founder of
Sprout World. They are a certified B Corp and
they create innovative, sustainable products like the
world's first plantable pencil that you're holding right now,
which grows into herbs, vegetables and flours after use.
(01:04):
Welcome to the show. Thank you, Ian.
Yeah. So I'm excited to dive into
everything that you're doing, but I would love to 1st jump
back in time a little bit to origination of this.
How did you decide to found a company where you make plantable
pencils? Great question.
(01:27):
Actually, the idea originates from MIT in Boston, where three
young students came up with the idea of a pencil you can plant.
And they put it on kickstarter.com, the
crowdfunding site where I noticed it and thought it was a
great idea. Because back then in 2000
(01:49):
averted 2013, everyone was talking about sustainability,
but no one could really put words to what what that meant,
which is actually pretty much like today.
It's still a very fluffy word, right?
But I was doing a lot of speaking, the workshops and so
on, talking about sustainability.
And I thought it was a great product to illustrate what
(02:12):
sustainability was all about. The thing that that you take a
product and you use it for one thing, in this case writing, and
then instead of throwing it out,you literally give a new life by
planning it. And that to me was what
sustainability was, was all, allabout.
So I made a deal with these three young students to sell and
(02:34):
distribute in Europe. And pretty pretty soon it took
off a lot in Europe. We're selling a lot.
Then I made a deal with the withthe students to acquire the
patent behind the Sprout pencil as well as the global rights.
And they moved on to to other projects.
Thing was that they were robotics engineers at MIT, so
(02:58):
they were dreaming about building a robot that could make
pencils you can plant. They were not actually dreaming
about pencils you can plant. That was more my thing.
So I had to go over and acquiredit.
And they all three working now for big robotic companies in the
US and then really happy and we stay in touch.
(03:19):
Amazing. That's funny that robotics guys
came up with students came up with the idea for a pencil.
Let's talk a little bit. So obviously it has popularity,
right? You're selling and you're
selling globally, correct? Yeah, correct.
We've sold it in the last 11 years.
We've sold more than 80 million pieces of Sprout pencils
(03:40):
globally. About 20% of that is in the US.
Amazing. And I take a look at the
website, you have a lot of cool.It comes with some pretty simple
packaging easies. I love the idea.
I guess where is your biggest? Is this something that's more
promotional material? Like is that kind of who are
(04:00):
your biggest buyers? Who's the most interested in in
this concept? Originally, many years ago when
we launched or when I launched, I thought it would be a, a
retail or maybe school products.And when we launched in Denmark
actually as the first country inthe world, it was almost all in
(04:21):
retail. It was museums, especially
sitting in their, their shops and, and getting their museum
names and messages engraved. But pretty soon I started to get
inquiries from corporations, from companies that wanted to
buy the Sprout pencils too have their messages, the locals
engraved in the OR printed on the pencils to promote their own
(04:45):
messages, often times sustainable messages or or using
for conferences in hotels and and and so on.
So today actually about 75 to 80% of our business is to the
promotional industry to companies using it to, to
promote their, their own agendas.
And the last 20% is on Amazon direct to, to consumers where we
(05:09):
sell the the different editions as basically mainly gift
editions. So people are buying a pack of
five Sprout pencils and Mindful edition or Happy B edition to
use as a, as a, as a gift. But it's, it's, it's about 8075
to 80% is promotional or corporate business.
(05:30):
Interesting. Yeah, I was, I was kind of
thinking the long lines of what you were first thinking about
maybe schools, museums, but mostly basically like anywhere
that might have single use or seeming.
It's very easily taken pencils and stuff like that might be the
main thing, but it's so it's interesting that it actually is
(05:50):
the gifting. I would not have guessed
gifting. I could I could have guessed
that corporate, corporate thingswould have somebody would have
gotten onto that. But it's interesting that the
gift side is your other your other main area.
It's, it's, it's big and we see from we have a tremendous amount
of thousands of five star reviews on, on Amazon,
(06:12):
fortunately, and we see a lot, it's very often grandparents
buying for their grandkids or parents for their kids, or it's
a students buying for their teachers.
And it's all about when you givesomething, what you're giving is
saying a lot about you as a person.
So if you're giving something that is 100% natural, something
(06:34):
that can be planned after use instead of throwing out saying a
lot about you as as a gibble. So I think that's why it it, it
resonates so much with with people buying gifts.
Let's dive into I know you, you're, you guys are be
certified. You have a few other
certifications around it. Let's dive into a little bit of
(06:58):
like what? Because most people, if you
think about a pencil, they wouldgo, oh, of course, a pencil like
if you, it's wood, like you stick it in the ground, it goes
away. But there's also, you know,
metal in it and there's eraser and there's things that make it
not, not plantable and let aloneturn into something else.
So let's can you talk a little bit about your certifications
(07:21):
and then how are you able to achieve this?
It's, it's, it's important to, to, to mention that the, the
Sprout pencil is 100% natural FSC certified wood, which means
for every tree we cut down, we have to plant at least one or
two other trees instead. But also important to, to know
(07:44):
that actually from, from one single tree, we can produce
175,000 pieces of Sprout pencils, meaning we take one
tree, we make 175,000 pieces of Sprout pencils, we potentially
plant 175,000 cherry tomatoes orspruce trees or, or get me nuts
(08:05):
out there. So it's really circular in, in,
in all the senses. The, the seed capsules are 100%
vegan. It's cellulose, the based
material, the seeds of course are all the natural and we
source everything locally, meaning in Europe we source from
(08:26):
from Europe only and reproduce in Europe only.
We have production in the US also.
So, so we try to keep it very local.
We don't, we don't source from from China or from from places
where we don't sell, for instance.
That's very, very important to us.
(08:47):
So, so yes, we have a lot of certifications and, and we of
course proud to be be called because Corp is it's, it's about
not being best in the world, butbeing best for the world.
And that's very important to me and and to us.
Yeah. And I know it's I feel like I
could have an episode with everycompany just about becoming AB
(09:10):
Corp. The process it is and I know
there's a lot of work. So it's not, it's not something
lightly just started on a on a Monday.
It's it's something that you puta lot of effort into going
through. It's a long process.
We were first time certified in 2021.
It was about a six month processwhere we were delivering and
(09:33):
then going through all our numbers and data and and how we
are doing things. And then another about one year
where the B core was verifying our data and and our numbers and
so on. So it took almost 1 1/2 year.
We just got recertified in in 2024 because it's every three
years and fortunately that was alittle bit easier once we were
(09:56):
in the system. Well, that's good.
Second time, second time is a little bit easier.
I wanted to ask So it has seeds in it and there's there's a
company I've heard of that is able to put seeds inside of
cardboard. How are if you can share, how
are the seeds actually put? Is it in the paint that you put
(10:18):
on or coating on it, or is it actually in in the wood itself?
The Sprout pencil has a small seed capsule made from cinder
lows at the end where you normally have an eraser.
So what happens is that once you're done writing with your
pencil, you have a stop lift youplanted in a pot.
(10:40):
You just cover the seed capsule with soil and you water it and
the first time you water water it, the seed capsule will
dissolve. And then as you keep taking care
of the the the plant, you water it, the the seeds of the plant
will start to grow from the fromthe from the pot.
It's awesome and I noticed you guys have you have the pencils
(11:06):
is where you started, but you'veexpanded your product line a
little bit from there. Could you talk about, you know,
how, when did you decide to expand from just just pencils
and start going into other otherproducts?
We're holding this global patentfor writing instruments you can
plant. And some years back, we were
(11:26):
doing a brainstorm. We are talking about what other
products could be considered thewriting instruments you can
plant. And we are a company with a lot
of female employees. So we were sitting in this
brainstorm and one of the femaleemployees were saying, why don't
we make makeup liners you can plant.
And I said that sounds like a horribly, horribly bad idea
(11:48):
because how big is that, that market?
I mean, that cannot be very big.The eyeliners, brow liners, lip
liners, whatever. I think to mock me.
They started opening their, their backs and every, every
single female employee had at least one lip liner or eyeliner
in their backs. One of them had six or seven
different ones. And I started to look into the
(12:12):
market and it's, it's a billion,the billion dollar market is
huge, much bigger than the normal pencils of course.
And so we decided to develop initially an eyeliner.
We went to all the big, we had discussions with everyone from
loyal to is still order to and so on.
(12:32):
And they all loved the idea, butthe development process was
very, very long. I mean, they wanted to launch in
three, 4-5 years and me being me, I didn't have patience for
that. So instead we went the other way
around and we developed togetherwith a German makeup
(12:53):
manufacturer. We developed at 100% natural
formula for an eyeliner, one which is actually allergy
certified, meaning you cannot get allergies from from our
eyeliners, which is a big problem because once you touch
your skin a lot of people have allergies.
And it's very sensitive too, like you can use something
(13:16):
somewhere else, but you'll it'llyou'll react to your eyes.
A lot of people will react to that and strangely enough, there
are almost no eyeliners, brow liners and this kind of product
that are allergy certified. It's very, very few the
products. So we, we managed to, to get
that certification energy certified, which is is very
(13:39):
important. And then we, we launched it, the
products about 3-4 years ago. It's still, is still a small
part of our business because we are, we are big in the
promotional and the corporate business.
But actually we are going to to relaunch probably later this
year the whole makeup line. So that's, that's very exciting.
(14:02):
It's a very amazing, it's a completely different market
because it's not corporate, it'sdirect to consumers.
It's, it's a different kind of people buying, right.
So it'll be very exciting. I'd be curious to see and think
maybe maybe even corporate mightbe interested in because that's
a very unique thing to give away, right?
(14:24):
It's more, it's, it's more unique in another way too.
So I, I would assume and maybe it's, maybe it's the wrong
assumption, but I would assume at least some of the corporate
side would be interested in and having these as promotional
material too. And that's a real great
observation because actually where we have sold the most of
(14:45):
our makeup liners so far again, because we didn't have so much
focus on on retailer yet. We're selling a little bit on
Amazon, but but not otherwise. But we actually sold a lot to to
corporate also to cosmetic companies using it as in in
goodie bags. Or buy 2 products and get sprout
eyeliner for free together with with that for instance.
(15:08):
So yeah, the promo. So kind of a promo material.
Exactly. But also actually because we
have a lot of hotel customers like the Hilton, the
Intercontinental, all these big change and and we have a hotel
hotels that are buying for theirshops also because when people
women are traveling, maybe they forget their the eyeliner so
(15:30):
they can buy a all natural one in the hotel shop.
Hey, it's your host Ian. I'm really glad you're enjoying
this episode. I absolutely love highlighting
amazing brands and founders for the awesome things they are
doing. I've helped hundreds of
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So if you're serious about building a brand people love,
(15:52):
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(16:14):
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Enjoy the rest of the episode and don't forget to like,
subscribe and share. I feel like they all, almost all
hotels will have a pencil and a pen in the room and they always
(16:39):
have those kinds of toiletries, right?
All the stuff that you probably probably forgot at home at some
point. They do have so that that is
awesome. Their their being able to offer
that. That's a cool a cool option to
have. Again, the hotel business is one
of our biggest clients because they use in the, in the hotel
(16:59):
rooms where before you had a plastic ball pen, now they have
a sprout pencil. A lot of hotels are doing
conferences and events. So they're using it there.
You know, you, you sit down for a conference, you get a notebook
and a pencil to, to take notes with or they're using it as a,
as a promotional item to promotethe, the hotel.
(17:23):
You get a sprout pencil on your arrival, for instance, all at
fairs and and and so on. Right well, and I'd imagine
telling you hotels they have also been becoming more and more
sustainable and thinking about that.
So it matches it's it's another way for them to say, hey, we
have we are thinking about even even something as basic as the
(17:44):
pen or pencil in your room. Here's what amazing you're
relaunching the makeup line. Is it just eyeliners?
I know there's a lot of different like how expansive are
you making your your makeup line?
How? Where does drawing you?
Where's the ends of drawing utensil where you're covered
(18:05):
still? The funny thing is that because
we hold this global patent for writing instruments you can
plant in legal terms are considered a writing instruments
because you write on your your face.
So OK. So writing.
And drawing. Basically, writing and drawing
are the kind of the same, OK? Exactly.
Exactly so, So what is covered by our patent is lip liners, is
(18:30):
brow liners and eyeliners, but actually also lipstick, which is
something that that we're working on eventually.
Problem with lipstick is that you have the warden pencils for
lipstick, but but they are they are thicker than normal normal
(18:52):
pencils. So we're working to develop the.
Right the. Capsules that will actually be
big enough to fit on a on a lipstick.
Right. OK.
Yeah, those are a lot bigger. They're like double or more the
size. Exactly.
And but, but the, the lipstick market alone is, I mean
(19:13):
humongous. It's it's, it's a huge market.
Would you be able to do like lipbalms then?
Is that this because they're usually kind of categorized the
same as color? No color or well, even.
There's even lip balm with tintsin it now too so.
In in principle, yes, because also with a lip balm, it's just
(19:33):
like drawing on your, on your lips.
So it's it's covered as well, yes.
Amazing. I guess it's very interesting.
We have a patent like that and then you start to explore and
then you realize, oh, wait, there's these, there's these
other things that actually we could do with it and be able to
make something cool that Prince protected still.
(19:57):
I think that's what happens whenyou work with the innovation
you, you, you start in, in one place.
In this case it was a fortunately a great success with
the normal pencils, but. But then you start to look in
other directions. You, you start to look at the
market, you start to listen to, to your customers and, and your
(20:18):
employees in Michaels and, and then you, you, you suddenly
start to go in, in, in other directions, but but without
going astray because we are staying within the, the patent
and what we are good at, which is writing instruments.
That's amazing. So you have pencils, you have
(20:40):
makeup, the ones that fit. Is there anything else that you
can expand or that you're are looking at expanding into?
I think I thought you have pencil sharpeners even on your
website? Yes, we have supplementary or
complementary products like notebooks, pencil sharpeners.
(21:01):
We are looking at pencil erasersbecause when we developed the
Sprout pencil we we got rid of the eraser at the end and put a
seed capsule. So we're looking at.
We also have done and still doing coloring books for
instance, because we have color pencils.
You can plan also. OK.
(21:22):
But, but we try to stay within the what complements like let's
say the stationary side of, of, of business.
But of course over the years we've become quite the experts
on seeds and plants and how you can use them for different
things. So we of course also are looking
at at what can be developed thathas seeds in it.
(21:47):
Amazing. So you have these, how have your
products, I'm assuming that those go as well as is it still
I guess are are people interested in the notepads and
kind of things like that as promotional too?
Is that kind of blanketed as people see it all as really
(22:07):
great promotional material? I think so.
For us it's it's more like an add on.
People don't buy notebooks from us alone.
They, they buy Sprout pencils and then they buy the, the, the
notebooks to, to go with it or they buy the pencil sharpeners
to, to go with it. So people see us as a, a company
(22:30):
with writing instruments and, and seeds and, and plants and
and that's, that's how we've grown so big.
Do you have any, I know you see you source the seeds locally or
you're using local to wherever you're manufacturing and
selling. I saw you have, you know, herbs,
flowers, plant like is there anykind of limit other than
(22:53):
obviously the physical size of the seed kind of what kind of
seeds can you put in there? I mean, there are some
limitations the size of the seeds, as you mentioned, because
the the seed capsule is only so big.
So, so there are certain seeds that are too big, for instance.
The other thing that that limitsus is that we want seeds that
germinate quite fast after you plant it.
(23:16):
So for instance, let's say basilseeds or or forget me not seeds
or cherry tomatoes, Sunflower germinates within 345 days after
you plant the pencil, which is OK.
For instance, back in the days, we also did a lot of Rosemary
pencils with Rosemary seeds and,and Rosemary is extremely
(23:38):
popular in the Mediterranean, here in Europe, for instance,
in, in Italy, in Spain and in Greece and so on, also parts of
the US. But the problem with with
Rosemary is that it takes four to six weeks before it starts to
sprout to germinate. And people don't have patience
for that. People think the products not
(23:58):
working, it's taking too long. So, so we are by nature
impatient people. So we want to see something
happen pretty fast and and that's, that's a limitation.
So we, we test all the seeds, all the source that we're
working with, we test them to make sure that they germinate
(24:19):
fast. And that's so that's the
criteria also. Right, because you have, it's
got to break down the, the cellular shell and then and then
start germinating and you got todo it in a time frame someone
would be excited about. I guess really you're, you're
trying to make sure people are so excited they're pulling it
out early. We also look at seeds in in
(24:41):
terms of do they have a story? Is there something that you can
that you can talk about in, in, in terms of this specific seed?
For instance, Forget me not seeds, which is a beautiful
flower, is a very, very popular sprout pencil because when you
give something, someone a sproutpencil with forget me not seeds
(25:05):
and you are sending a message tothe receiver, please, please
don't forget me. Same with with the basil.
Basil is the most popular one wehave because everyone knows how
to use basil in, in, in cooking,whether it's pizza or pasta or
or whatever. Sunflower is a very, very
popular seed also because sunflower is a is a beautiful
(25:29):
yellow orange flower that grows very big and it it symbolizes
hope. For instance, we have done a
project in in Ukraine on on the makeup liners with the sunflower
seeds because the sunflower is the national flower of of
Ukraine and it symbolizes. They know that.
(25:50):
So we always look too. Can they germinate fast?
Is there a good story and and what can you use the flour or or
herb or or vegetable for? We just recently launched the
chili because OK Chili is is a great.
(26:11):
Everybody knows how to use that too.
Exactly, everyone knows how to use it or not use a chili.
Right. I love that there's this extra
layer to, you know, otherwise you just buy a pencil, right?
But this has this extra layer ofthe seed, which you can really
be thoughtful. You can, you know, even from
like a corporate standpoint, youcan put whatever message you
(26:33):
want on it, but then it's also what's the seed going to become?
And that's as kind of it's this double layer of messaging that
takes time where you got to use a pencil and then you can then
you can plant it and see what comes out of it, which is I
think a very a unique thing to be able to do in terms of
(26:54):
especially from like a corporategift or even a personal gift
standpoint. It's like this double, double
thing that you can do. Exactly.
And it's important to that. We are not considering ourselves
a pencil company. A lot of people think that
pencils are very old school and how many pencils are being sold
That cannot be that many and so on.
(27:14):
But actually it's more than 15 billion pieces of pencils being
sold and produced every year. I think about 4 billion of them
is in the United States alone. So, so the market is pick, but
what you would never find a sprout pencil side by side with
a noble pencil. We're not selling a pencil.
We are selling a messenger, a sustainable messenger.
(27:37):
We are selling something you canplant.
And and it's much more about storytelling and how can you
tell your story with a Sprout pencil?
Right. I think that's an interesting
point and I'm glad you brought that up.
But it is it people aren't thinking of it, which I think is
a good thing, is you're not thinking of it as just a pencil
(27:58):
because otherwise you go, well, this pencil is so much cheaper,
I can get whatever. But you're really focusing on,
yeah, it happens to be a pencil.But that's not, that's not its
only job. It's not just there to be a
writing instrument. It's to tell a story.
So love that. I wanted to ask because I know
you've been through so many, so many different certifications
(28:21):
and you've you've done all thesethings.
Obviously B Corp is like the hardest, big biggest one.
I think that you guys have done.What's the next for you that's
been not necessarily the hardestto do, but had the most impact
on how you think? What's that?
What's the next one that you've impacted you guys the the most?
(28:42):
I definitely. Think that in terms of
recognition and what it's all about and what it covers is the
B call per certification becauseit, it's a 360Β° look at how we
do business, how we work with materials and how we produce and
(29:03):
so on. That that's definitely the, the,
the biggest one. But I'm also very proud of, of,
of the energy certified certification for the makeup,
for instance, because that's very rigorous.
Also, for instance, certain certain colors on the lip liners
could not be certified because they, they contained things that
(29:25):
could not be allergy certified. So we had to drop for instance
yellow eyeliner because the yellow color could under no
circumstance be be certified andwe wanted everything to be
allergy certified. And but also we are what is
called CDX certified. CDX is an audit on your
(29:50):
production facilities, which hasbeen done to our facilities in
both Europe and USA where CDX gointo the a production facility
and they look at everything fromsalaries to how workers are are
treated to what are the conditions, everything around
(30:12):
and, and confirming that everything is is, is good and
that that workers are treating the way they should be or even
even better. And then that's, I worked in
Asia for almost 15 years where I've seen conditions in
factories that you won't believehorrible, horrible conditions,
(30:35):
people not even being allowed togo to the restroom during their,
their working hours and so on and so on.
So I'm, I'm very proud that thatwe are producing only in Europe
and only in the US where people are paid much more than the
minimum wage. They are treated like normal
people. Makes a big difference for me.
Amazing. Well, yeah, all those and and
(30:56):
you have so many, but those, those are all three really
great. And I would never have guessed
the when you said that most eyeliners are not certified.
That is kind of a a crazy thing for me to think that that most
aren't there and that yellow like color is such a huge
component to whether you can even be certified or not.
(31:18):
The thing about the makeup businesses that a lot of makeup
brands, they claim to be sustainable.
They want to be sustainable, butat the end of the day, they're
not really concerned about it because it's expensive, it's
troublesome, it's it's a lot of effort and, and so on.
The beauty business is about selling a lot of lip liner and,
(31:40):
and makeup and cream. What are your skin care and so
on and so on. It's more about pretty faces
then it's about actually making a difference, unfortunately, but
that's something that we would like to change of course.
Yeah, I'm excited to see becauseit's now you have makeup with an
extra story of the seed as well.I think it's a very, I think
(32:03):
it's going to be very interesting.
Hopefully your launch, when you relaunch, you're able to give
him more, more attention becauseit's definitely a space and
needs more disruption. So that's amazing you guys are
going to be able to tackle that.I hope so.
The problem was also with the beauty business is that all
small brands are against the thevery, very big ones that use
(32:24):
millions and billions of dollarsin euros in in marketing alone.
But yes. We'll get around that.
Absolutely. Well, it's been a pleasure has
been great chatting with you about what you guys are doing
and your products and the story to be told with those.
And before we wrap up, I do wantto make sure for anybody that
(32:47):
wants to reach out, connect withyou partner.
What is the best way to contact you guys and just anything else
you want to add before we wrap up?
I'll definitely go to our website, sproutworld.com or
maybe visit our brain store at Amazon.com where you just look
(33:11):
up Sprout World and then you'll find all the the products.
Amazing. Amazing.
Well, thank you so much for being on the show.
I really appreciate your time and look forward to seeing more
of your makeup around the world.Thank you, Ian was my pleasure.
And that wraps up another episode of the Conscious Design
(33:32):
Podcast. If today's episode inspired you
to bring your product idea to life and turn it into a
sustainable 7 figure business, visit petermanfirm.com or click
the link below. Your ideas have the power to
change the world, and we're hereto help make that happen.
Thank you for joining us, and I'll see you on the next
episode.