YourgutBB: A Business with Sustainability in Heart and Mind
Our first article for #GDMCases where we connect, learn, and exchange ideas about sustainable businesses in Malaysia.
GDM Case Number One: YourgutBB!
YourgutBB is a local startup company with a natural product that helps to improve our ‘guts microbiome dynamic’. Their brand highlights the vision of their product, to be ‘your gut best buddy’. You can check Yourgutbb’s Facebook page to learn more about the company.
This article shares an elementary analysis made to understand their sustainable practices which have been implemented in various facets of the business. The assessment was made based on a slide presentation (for those interested to be part of their ‘Buddy Program’), and my chats with Wilson (the co-founder) of this green Malaysian startup.
Why do we start with this analysis?
Like many sustainable-oriented entrepreneurs, Yourgutbb has implemented various aspects of sustainability in their business model, day to day practices, and production processes. However, what is challenging and also vital to the business is to understand their sustainable stories and strategically share them.
Mapping and structuring their current practices offer the means to view their business practices from a new perspective. This exercise can also help to identify their strength, pain points, as well as opportunities. Through this process, we hope to elicit insights that can offer some potential ideas or new directions for their business strategy.
As part of the GDM initiative, this analysis offers the means for us to share a technique that might be helpful for others to identify the different layers of sustainable practices within their company.
What is the method used?
The analysis focuses on seven sustainable parameters typically used in Design for Sustainability:
- Design — Relates to the design process and aspects related to the early phase of the product development process.
- Materials & Component — Includes the material or other parts procure for the manufacturing process.
- Production Process — Concerns the activities and other elements involved in manufacturing/producing the product/s
- Packaging — Refers to the processes and procedures involved in packaging and preparing the finished product to be delivered to the customers.
- Distribution — Connects to the activity involved in collecting the packaged products from the collection point, transporting products to locations, and delivering them to the customers.
- Product use — Refers to the phase where the customer received, preparing, and using the products.
- Next cycle of life — Focuses on the phase after the users no longer need a product, therefore, it will go to the next cycle of life.
The method used
The 1st step: We map and structure their current practices based on these parameters.
The 2nd step: We identify and elicit sustainable elements based on the current practice within each parameter.
The 3rd step: We also identify other elements related to the product. These elements are not directly connected to sustainability. However, they are considered relevant to the company’s brand and its marketing touch-points.
The 4th step: We add the terms used by the company based on their presentation. The main reason for this step is to connect the sustainable elements with the existing terms that have been used thus familiar with the company.
The outcome of the analysis
The image is the outcome of our analysis. This outcome was presented and discussed further with three representatives from YourgutBB — Wilson, TC, and Chai. During the meeting, we had an in-depth discussion about their current practices, pain points, and challenges faced by the different stakeholders, and also their vision and aspiration for the future. In the next post, I will discuss in detail the content of the exploration in each parameter.
*It is important to note that there are a lot of aspects that may be connected to each parameter. However, we only focus on some relevant elements to reduce the complexity of the analysis.
DESIGN
The first parameter, DESIGN relates to the design process and aspect related to the early phase of the product development process. In this assessment, we focus on the value offerings of the product. The first offering is also the core value of the company brand — Naturally grown probiotics for your gut!
The second offering relates to the segment of the market where the product is positioned — Artisanal and premium drinking beverages.
The first value is connected to offering good nutrients to our body which is part of our well-being. Subtle and often overlook, personal wellbeing is also part of the effort of being sustainable. For example, emotional well-being, physical well-being, comfortable living, personal development, inclusivity, and equality are part of the elements related to individual well-being. While the second value is related to a feel-good consumption that is connected to its market positioning.
These elements are associated with the company’s aims of becoming a living example for a business that promotes a healthier lifestyle and advocates for a better future through better people.
MATERIAL / COMPONENT
The second parameter, MATERIAL / COMPONENT includes the materials or other parts procure for the manufacturing process. In this parameter, we identified the ingredients used in the production process which include the cultures, milk, as well as local flavors that are based on local ingredients available within the proximity of each studio. These ingredients are connected to two categories of sustainable materials: organic materials and local materials. They also emphasize the use of high-quality ingredients for their yogurt drinks. The sustainable elements highlight the use of natural and local resources which link to the company vision for a better environment for all.
PRODUCTION PROCESS
The third parameter, PRODUCTION PROCESS concerns the activities involved in producing yogurt drinks. The company decentralized its production process to ensure products are fresh, locally made, and produced on demand through their production studio. This production process is unique to the company as it allows them to significantly reduce their carbon footprint with an efficient production system that doesn’t require any storage or distribution centers. Their yogurt drinks are produced and then sent directly to the customers. (I’m still amazed at how freshly made they are)
Another sustainability element is social manufacturing where they decentralized the production process and involved the local community as one of the stakeholders in the business. I personally think this is one of the key strengths and uniqueness of YourgutBB. The company collaborates with individuals who own the production studio. They connect with the local community and work together to build a distribution system and link with local suppliers for their ingredients. Such collaboration highlights their vision to go beyond a business operator. Their initiatives serve and empower the local community.
PACKAGING
The fourth parameter, PACKAGING refers to the processes and procedures involved in packaging and preparing the finished product to be delivered to the customers.
Yourgutbb uses reusable flasks as the yogurt container and a jute string as a carrier (in place of e.g., plastic bags, corrugated paper carrier et). These are part of their sustainability asset with a focus on reusable packaging. The use of natural and organic materials as a carrier is natural and organic not to mention it is lightweight with a significant reduction of material use compared to conventional solutions. Such solutions allow the company to abolish the need for single-use plastic in its packaging and distribution processes.
These can be essential features that connect well with consumers who appreciate sustainable lifestyles. Besides, indirectly, they may create curiosity among other businesses to inquire about their packaging considerations and decisions, how it impacted their business and the potential of replications. You can check videos at Yourgutbb if you would like to learn about their process of handling return bottles and the use of jute string in their distribution process.
DISTRIBUTION
The fifth parameter, DISTRIBUTION connects to the activity involved in collecting the packaged products from the collection point, transporting products to locations, and delivering them to the customers.
YourgutBB initiates an interesting distribution system through their buddy system. This localized distribution system focuses on local empowerment where products are distributed by buddies registered in the area. Buddies receive a 30% commission from their sales and are also able to buy the drinks at a reduced rate. This concept offers affordability to access their products as well as opportunities to generate income for the local community.
This system reminded me of the Yogurt Ahjummas (Yogurt Aunties) in South Korea who managed to create a cultural shift in the country’s taste for dairy and now a cherished part of the community. Here is the link to an article about the Yogurt Ahjummas in the New York Times.
I wonder if such a system can induce a culture shift in Malaysia’s dairy culture? From my personal experience growing up, yogurt was a nice yet luxurious thing to consume. Culturally, yogurt is not considered a daily necessity. Now, middle-income families may afford such drinks on a daily/weekly basis yet it might not necessarily be the case for most low-income families.
Offering ways to generate income and affordability of healthy consumptions to the local community are part of YourgutBB ways of building a lasting relationship with the local community.
PRODUCT USE
The sixth parameter, PRODUCT USE refers to the phase where the customer received, prepared, and used the products.
The products are either delivered by buddies or bought at the studio by the customers. Their plain yogurt drink has no sugar added while the flavored version contains only up to 5% of sugar content. Such a product promotes a healthy way of living with good nutrients for our physical well-being. Their customer base is currently composed of customers from high to middle-income groups. The company aspires to make its products affordable across all communities in Malaysia. They believe in the importance of ensuring good nutrients and a healthy way of living for all.
Of course, it is common knowledge that healthy and nutritious food is essential for our well being. One of the constant questions that is driving so much ongoing research is HOW? Studies of the microbes that live within a human body and their impact on human health partly shed the light on relationships between the food we eat and the means of developing a vibrant and lively microbiome ecosystem in our body. For those that might be interested, I found a link for a free course about ‘The human microbiome’. Another reference to share is a book by Jack Gilbert, and Rob Knight, ‘Dirt is good. The advantage of germs for your child’s developing immune system’.
NEXT CYCLE OF LIFE
The last parameter, NEXT CYCLE OF LIFE focuses on the phase after product use where the users no longer need the product, therefore, it will go to the next cycle of life. Examples of possible next cycle of life would be the grave (decomposed), the incinerator (waste management system), to fulfill a new need/function (e.g., upcycle, recycle, downcycle), to repeat the same/function need over and over again (circular). Regrettably, the next cycle of life can also be part of our natural environment, be it rivers, oceans, forests, and mountains.
If we look at the next cycle of life for YourgutBB’s products, the reusable flask initiative is part of the circular economy actions. Their decentralized distribution system offers a good setting and arrangement in collecting, processing, and returning used bottles. Furthermore, through a subscription approach the percentage of returned and reused bottles increases. Apart from this, the jute string used as the bottle holders are easily decomposed and the yogurt themselves is consumed and if not ends up as organic waste in the system.
In the next article, we will share our summary of the case, reflections on this experience, and ways to improve the next GDM Case! Thank you for reading.
