All things Export! My Ethique Journey & Incrediballs' Global Plans

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Ever wondered how to successfully expand a brand overseas? Well, I have a few insights, and some mistakes to learn from! This episode is all about my first-hand experience of catapulting Ethique to international success through 22 countries - what worked and what didn't. From understanding export regulations to choosing ethical retail partners, get actionable business strategies and insights. Plus, discover why Incrediballs is simultaneously launching in NZ, Australia, and the USA (is that a crazy decision...). Ideal for entrepreneurs looking for practical tips on global business expansion and sustainable partnerships.

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Kia ora and welcome back to another episode of Now, That's What I Call Business. I'm Brianne West. You may know me as the former CEO and founder of Ethique, or hopefully, if you've been listening to this series, you'll know all about Incrediballs, my brand new startup. Now last episode, we discussed the power of community, which is a thing I am super hot on all businesses trying to build because community-built businesses just go further. And that's exactly why I'm building a community for Incredibles six months before the product itself will actually launch. So today's episode, I'm going to talk about global expansion, exports, retailers, and basically how to get your products on shelves, why, when, blah, blah, blah.

Because a lot of people have questions about how to do this, and it seems that it's very much the pinnacle of achievement to get your products on, say, shelves in, I don't know, Target or Walmart somewhere. But how on earth do you do it? Well, I'm going to tell you a little bit about Ethique first. I'm going to tell you what we're going to do with Incredibles, and then I'm going to tell you how you can do it and what to look out for. So, I need an airline-related pun here, you know, so let's extend our... No, you know what? I can't think of anything that's not lame, so I'm just not going to.

So, let's get started. Okay, so Ethique was in 22 countries by the time I stepped down as CEO in April this year, right? And none of those were planned. Okay, that's not true. One of those was planned. The US was planned. Now, we did a relatively unusual method of export because most New Zealand companies will, of course, go to Australia first, find out that that's actually a lot harder than they expect, and then will probably leap over to America or potentially do some cross-border e-commerce into China.

We didn't do that. We started in America. We went to Australia pretty close afterwards, then actually we launched in Japan. Now I will talk primarily about those three markets because they've got the most to learn from and they're the most interesting. And to be honest, they're the ones I can remember the most about because honestly this just feels like an absolute lifetime ago. Okay, so if we go back to 2016, I have just finished a women's seminar, I think it was called, a women's seminar in Hawaii and it was all about mission-driven business and women entrepreneurs trying to change the world.

So it was right up my alley. It was one of my first international trips and honestly, I didn't want to go because I was absolutely terrified of being homesick and for the first week or so, I cried in the bathrooms a lot. But it got better. I got better. So if you get homesick, you're not alone. Anyway, I met a reporter there, a Forbes reporter called May May Fox, who I'm still in contact with today, and she wrote a piece for a teak and about me in Forbes magazine. And I tell you, I was so fucking excited about this article because Forbes magazine, for Christ's sake, Forbes magazine, I was what, 27? And I was going to be in Forbes magazine. Devastatingly, nobody read it. And I think maybe like four people read it and they were the people that I shared it with. And I was pretty gutted, but that's okay.

I was back at home. We were carrying on, we were making inroads. It was okay. And then a couple of weeks later, I woke up to a text message. It wasn't a text message, it was an Instagram message actually from a reporter from the Huffington Post. And she said, hi there, I really loved your story. Just letting you know I've written an article about you for the Huffington Post. Now I obviously knew what HuffPost was, so I had a look and it was a really beautiful article. It's still up there for today. But then I had a look at my emails and started panicking and then I had a look at our orders and started panicking more because we had gone viral. We were besieged with hundreds of thousands of orders and we had lots of money in the bank account, which is great. We had so many emails it was impossible to refer to them. We had phone calls, our answering machine was full, yeah, because this was 2016 and I think we really still had like a limit on the number of messages we could have.

Overall it was a positive virality if you like. There was a few people who were like, this stupid woman, you know, I got a death threat from it because, you know, what's going viral if you don't get some hate? But overall it was overwhelming to say the least and I think it was the most stressful time in business I've ever had and trust me, that's saying something. My team and I cried most days. We were four people. We could make 50 bars a day. So we had to email 98% of those orders and say, there's just not a chance we can get this to you.

And most people were so wonderful about it and said, no worries, just send it when you can. And then, of course, Britney Spears made it worse by posting it on her Facebook page, which was a surreal moment, I will add, because I am a 36-year-old woman. I grew up watching Britney Spears and thinking she was amazing and wonderful and fabulous, and to have her share it was pretty ridiculous. In fact, my mother actually sent me a text message another morning saying, Britney Spears has shared you on Facebook, and I said, of course, no she hasn't. Don't be ridiculous because I'm an awful person and my mother is wonderful. And no, she was dead right.

Ashton Kutcher did it too, but that didn't hold the same level of excitement for me. That is all to say that we went viral, particularly in America. We went viral around the world, but particularly in America, and almost all of that interest was coming from the States. So began a conversation about how we were gonna take advantage of this. This is when we first started thinking about the US.

Now, the US is a terrifying market. It's enormous, it's incredibly complicated. It's effectively 50 different countries in one and that is something that you should consider if you ever think about the US. Now we were online first as companies go. We had a few retailers in New Zealand at that point. We didn't have any big chains from memory but we were we were in retail but we were primarily a D2C company. So we knew we were going to do an online first and we thought how about instead of trying to put all of the infrastructure in place to have our own online presence, because we did have a website but it wasn't set up in the States, we didn't have our own warehouse, we didn't have any of that, how about we work with a distributor and they can sell us online on our behalf, we can learn the market, we can learn off them and it will still be a profitable endeavour for us.

So we toured around the country looking for distributors, found an amazing one, they were the largest online pharmacy in America, which is quite a big deal, the biggest reseller to Amazon. They loved us. We met with them I think at 3 o'clock in the morning our time via Zoom overseas, so I should imagine our first impression was just fantastic. And then we went over and saw them and headed off. They were a fabulous bunch of guys and we started selling on Amazon. I'm not going to go into the whole journey. That's probably another episode. I don't want this one to be 4 million years long. But it was a very fruitful enterprise until last year when very sadly they did actually go into administration. So they are no more. For those of you asking me for their details in advance, I can no longer give you them.

However, they were great. And within just a couple of, within a year or two, we were doing a half a million dollars a month on Amazon. Now that taught us a lot about the American market because whilst Amazon's pretty guarded with this data, you can glean a little bit from the scenes. So we also supported that with PR. So we always had an American PR company. We supported it with a lot of online stuff, you know, social media marketing. And we started to dip our toe into retail. So we started with the likes of Moms Organics, M-O-M-S, which sounds fundamentally wrong when I say it like that.

Moms Organics, who are a really wonderful retailer, I'm a huge fan of, that we're still with today. And then we branched into the likes of Sprouts and so on much later on in the piece. Sprouts is like the gateway retailer into Whole Foods if you like, so they were a big win. Australia beaconed next. Now, Australia was one we'd wanted to for a while, but we were aware of all of the stories, particularly from the likes of NZT&E, who said Australia is not as easy as you think. The people aren't the same.

The culture is not the same. I mean, I know this. I've been to Australia a hundred million times. It's one of my favourite countries on the entire planet. And I knew it wouldn't be easy, but we partnered with a company called Nourish Life. Now, Nourish Life is another one who's recently had a checkered history. Also, unfortunately, their owner went into administration and collapsed not so long ago. But Nourish Life at that point was owned by a wonderful lady called Irene Falcone and she was so on board with the ATEEQ mission. She loved it.

And so she put a lot of her time and effort in helping us to get to understand the market alongside selling on her website, Nourish Life. Now, she was the pioneer of the natural movement in Australia, so she had a huge profile. She was wonderful to work with. Her and her team were fabulous and that was an absolutely charmed relationship. So for about a year, we were exclusive to Nourish Life online. They helped us build that profile in America and Australia. We didn't actually even have a PR company in Australia much. We've had one on and off, but until recently, honestly, I've not found Australian PR to be as good.

My personal experience, only PR companies don't get mad at me. We partnered with a distributor, this is the same distributor, it's going to get confusing, so I apologise. It's really not relevant to the story, but this distributor that we partnered with had also just bought Nourish Life, right? And they were the ones that then collapsed recently. So we partnered with this distributor and they got us into Priceline, which was wonderful. So Priceline was, I think, 500 stores at that point around Australia. If you have been to Australia, you've probably seen them. They are bright pink, so obviously they're my favourite.

And they were an absolute nightmare to work with. They did not make life easy. They were just very difficult. They didn't respond to emails. They were just difficult. But you'll find that retailers often are, because buyers are overworked and they are expected to make as much profit per square meter, per store as possible, and they are not given necessarily enough resources to do it. So, working with buyers, you will find, it can become very difficult.

And all buyers are wonderful, and they try bloody hard, but you have got to make it easy for them because their lives are tricky. So we launched into Priceline, that was great. It was wonderful to finally have some nationwide distribution. Then we moved to another distributor, a more well-suited one. This distributor had about 9,000 accounts around Australia. Obviously, we didn't want to be in all of them. Now I'm going to talk more about strategic retail later on in this episode, but we definitely didn't want to be in all of them because it's hard to service and it doesn't necessarily lend any credence to your brand.

When you're thinking about retail, it's something you want to consider is that a lot of people will see your brand first in retailers, and therefore they will make assumptions about your brand based on where they are. So bear that in mind. Retailers can lend a lot of authority to your company. So again, Australia was online first and then we moved gradually into retail. And again, I'm not going to talk much about the retail expansion. That's another episode. And then finally, for today's discussion, there was Japan. Now Japan was a wild card.

We were approached by a distributor. It was actually Trilogy's distributor at the time, and that in itself immediately led that email quite a lot of credence because you are just approached day in, day out by all sorts of people who love your brand and want to help you grow it or people who are just like to try and sell on Amazon or people who just want to buy a bunch and flick it off. There is all sorts of approaches when you're a business, you will know this and you will find this and eventually it stops becoming exciting and starts becoming a hardship to sort out the wheat from the chaff as it were. Now we knew because they distributed Trilogy they were worth talking to.

So we had a chat with them. We went over to Japan a couple of times. We got friendly with them. They were some of the nicest people I have ever met in my life and they are in fact still a Teaks Japanese distributor. We did talk to a couple of others while we were over there too and made the most of it and it was just a really cool experience. What I found completely different, right, was how conservative Japanese distributors are in terms of what they will forecast. So when you are having distributor conversations, there is all sorts of stuff that needs to go on from things like pricing and marketing plans and forecasts and KPIs and so on and so forth.

It all gets obviously quite complicated and it needs to. You need to be very clear of who does what and who's responsible for what and why and when. And one of these things that you talk about is KPIs or forecasts or what people are going to expect to sell within the year. Now in America, in that very first conversation we had with the distributor, they said, we will do you $10 million in the first year. And I didn't believe them, but I love the gumption. We did not plan for them to do $10 million, which is good because they didn't. Now Japan, on the flip side, a Japanese distributor said to us, we will do you $150,000. I'm converting from yen here.

So we were a little disappointed with that because we thought that's low. And it's certainly not gonna cover our costs for doing it. Is it worth doing? So we went home and we had a really good thing. We had a lot of chats. Mrs. Tristan and I, our COO, we had a chat with the rest of the team. Is this going to be worth exploring? You know what, sod it, let's do it.

So we did. Now, we launched a bit of a roar in 2019 in Japan through a company called Cosmic Kitchen. Now, we met the wonderful owner who took a shine to a teak and he put a lot of support our way and there was a bit of a launch event which 800 people turned up to. There was lots and lots of press. A distributor did the most incredible job drumming up interest because we didn't have anything to do with the marketing or PR for Japan and never have.

They did everything, they got people excited and we sold out before we actually even had shelves and then the next week we sold out a year's worth of stock in a month. I think I'm remembering that right, it might even mean a week. It was absolutely bonkers. We completely underestimated the demand for this brand and a big part of the reason was because the packaging was kawaii, which means effectively cute in Japanese and you could hear echoes of people saying the word kawaii. I unfortunately still can't speak much Japanese and I remember thinking just how interesting it was what the different purchasing levers were for each country. So to go back to that in Australia a big part of it was the plastic thing because or the plastic free thing I should say because Australia was having a conversation at the time there was the war on waste on TV, there was a lot of conversation about plastic and exporting waste to developing nations and how disgraceful that is and that was part of the nation's consciousness. Also of course Australia by and large is relatively environmentally aware, relatively. We'll put climate change aside there for a sec because unfortunately some of the people in government are less aware but that's certainly not the people's fault. Anyway, America was a little bit different.

When you're launching into a country, you are talking to your early adopters. You need to bear that in mind. These are the people who will buy from you with the least amount of persuasion. So the people we were talking to in America were super environmentally aware and super on board. But the environmental movement was a little bit slower getting going in America. And as a result, I still don't think Ethique is particularly mainstream in America. I'm sure it will be, but I'm going to give it another 10 years. In Japan, the reason they bought it was because the packaging was cute. And look, it's great to lean into and understand the market because then you can, to use a horrible word, exploit that.

Now our distributors did the most wonderful job. You should see the displays they put together. They were beautiful. We went and we actually used some of their designs in other countries, with their permission, obviously. And they just smashed it out of the park. They did a lot of PR around the environmental movement because our distributor was very environmentally aware, really wanted to change the way Japan thought about plastic. It was an amazing relationship. And at one point, prior to COVID, they did, I think they smashed it, they put up $6 million sales to us, so significantly more retail in a year. I mean, for a country we really were umming and ahhing about because we just didn't know enough about it. That was a hell of a gamble.

But let me be clear, it was a gamble. Because we also went into China through cross-border e-commerce. This is something I will admit I was super hot on. So China, yes, if you want to go into retailers, you used to have to test on animals. That law has since been revoked, but now to do so, you need assurances from the government, from your local government, and New Zealand, to my understanding, has still not sorted that out with the Chinese government. So if you want to sell on retail shelves, as a cosmetics company, you have to allow your brand to be open to animal testing.

So as a result, of course, retail sales to China was an absolute no for us. It wasn't even a thing anybody considered for even a fleeting second. But cross-border e-commerce, you don't have to worry about any of that because it's literally just like buying online. But you do it through a company called Tmall, which is, let's say it's like a really complicated Amazon that's a lot different, and not like Amazon at all. But it's an online platform that you use. With Tmall, we hired a wonderful, wonderful brand manager to run it. She had worked with another New Zealand cosmetics company to take them into China through cross-border. She was one of the funniest people I've ever met in my life still.

Again, we worked with a New Zealand based distributor to do it. Now, we gave it a year and it just didn't work. Now, there's going to be a variety of reasons. We changed distributor about a year in and tried it again and it still didn't work. And I think there was a couple of reasons for it. We invested a lot and I don't think at that point, because this was also when the company sort of started changing ownership. I don't think the company's heart was in it. The people that needed to commit to it couldn't. So there wasn't enough support given to the people that were running it. So that was a company's fault.

But also, I just don't think we ever learnt enough about the market to understand the reasons that people there weren't sure what it was or why you buy it. So there's a couple of shampoo bar companies over doing cross-border e-commerce relatively well. They have managed to crack it. We never did. That's not to say we ever won't, but it is not a priority for Ethique at present. So there you go, three successes and a less success in some of my insight into why I think that was. I've talked for 20 minutes about Ethique, and I mean this to be equal thirds Ethique and Incrediballs and how the hell to do it yourself.

So I'm going to get a move on. But if you have questions, send them to me via, you know, send it to social media, post them underneath this podcast, and I will answer them. I'd really like this podcast to be a little bit more interactive. So send in questions, I will answer. Okay, so what are we doing with Incredibles? Pretty much exactly the same thing. Yep, it'll be an online launch first and then we'll move into physical retail. Now I talked about why online first in the episode prior to the last one. Now I like an online launch because you can get immediate customer feedback, you get immediate sales, you understand what's going on.

And if something is going wrong and customers don't like the packaging or they don't like this or that the flavours are wrong, which you should have sorted out with product testing, but sometimes some things go wrong, you can easily change things quicker if it's just online versus if you're in a hundred million retailers. Second reason I like to launch online is I like to prove that there's a demand for the brand so that when retailers come to you, there isn't the sort of cap in hand, what can I do for you to take our brand on shelves. Retail is a very expensive, so there are slotting fees and marketing and all these other things you need to do to support your brand in stores. And if you've already shown that you have demand, that your customers love your product, that gets easier. I will always say online first, but with Incredibles, which is a little different to a teak, people are unlikely to just go to an online store to just buy drinks.

It's not something people are going to want to do. It's kind of annoying. So we need to be in retailer and we're gonna need to be in retailers quicker than Atik will. So it will be a quicker merge. And like I've already spoken to one of New Zealand supermarkets, who's very keen to have a chat with us when we're ready. And I anticipate a large style retail launch, certainly within Aotearoa in or let's say middle to late next year with a subsequent one in Australia and then very specific retail in America afterwards.

America will be online for longer because I don't want to build a big team quickly. I don't want to build an American based team quickly. I want to take my time and do these things very slow. Well, no, I don't want to go slowly. That's not true because I want this to be a $100 million brand in four to five years. Yep, big goals. But I do want to be a lot more specific about retail in America because this is going to be, you know, this is still an unusual product, you know, soda tablets dropped into a glass of water, making you a glass of soda. That's still an unusual concept.

People are going to be a little bit confused by it. So we're going to need to do a lot of education. But in terms of getting into the market, we'll be doing exactly the same thing. We'll be using PR in all of our markets. We'll be using a lot of social media. We'll be building that community. We'll be asking that community where they want to see us on shelves. Having immediate consumer feedback with people, with our customers. What is it that you want? What is it you want to see?

Now, if you are looking to move into export or retail, there is a lot to it, and this is where I recommend, and this isn't self-promote. Well, yes, it is. This is literally my podcast. I can do self-promotion if I bloody want to. But if you are looking to do this, go to businessbutbetter.co and have a look at the export and retail modules because I talk about all of this at greater length, how to do it, what you need to do, from things like knowing when to export to all of the things you need to think about from can you afford it?

How do you assess a market? How do you know what marketing messages to say within that market? How the hell do you set up a warehouse and distribution and legal compliance and tariffs? Export is complicated, but it's also worth it and I don't want to put you off. But this podcast is already at 20 minutes and this shit can get a bit dry. So head over there, do the modules, do the worksheets. It's totally free. It is literally just a resource for you to go and build better businesses that change the world. I'm going to leave you with a couple of tips in terms of how to export ethically because a question that comes up quite a lot is Amazon and why the hell I chose to launch Ethique which literally stands for ethical on Amazon and it's a good question because let's be honest Amazon is not known in any areas for being an ethical employer or company although I am pleased to see that they are trying to do something about some of their transport emissions and there are some other initiatives.

However, I believe that the way emission driven companies like Ethique will have the most impact is with scale. If Ethique only partnered with other companies that were on every single brand valley that we had, we would not be anywhere. We'd probably still be in my garage. Because you have to use the system within to change the system. If we wanted to be selling shampoo bars and displacing the half a billion plastic bottles by 2030, we needed to be in the world's largest marketplace. And as a result, we have now displaced tens of millions of plastic bottles, in part because of working with retailers that, yeah, perhaps don't fit. There is a caveat though, and you are going to find your own ethical barriers here. Animal testing, obviously, as I spoke about with China, a retailer, or retailer. That's not even a starter. If the company wants to, if the retailer or the distributor wants to adulterate your product in some way, then it's a non-negotiable. And to use an example there, about four years ago, so 2018 prior to the absolute clusterfuck that was 2020, thank you COVID, we were given a multi-million dollar opportunity in the States through a big retailer you will have heard of, I won't say the name. And they loved the product, they wanted it on shelves within about eight weeks, which is bloody quick in the retail world, and they were very excited about having a long-term partnership with us.

And I just had this weird nagging feeling about it the whole time because it just felt too good to be true. And you know what the saying is, if you think it's too good to be true, it probably is. So I was waiting for the other shoe to drop and the contract came, we all had a good breathe through it, and there was only one problem, which was your products must be individually packaged in poly bags. And I didn't think it would be a big deal. I just flagged that and said, Hey, we won't do this because we won't use plastic. We're a plastic free company. And they said, Oh yes, but we need it for leakage.

And I said, that's great. Solar bars don't leak. And they said, okay, that's fine. But we still need you to put them in poly bags. And when I said, why? And they said, Oh, it's our system. And I said, well, we won't do that. And they said, but that's our system. And I said, I'm sorry, we won't supply you. The fabulous thing about my ATEEQ team is like, we're literally talking millions of dollars of revenue and every single member of the team was like, yeah, no, done. So the worst thing was, is that reseller said, well, don't worry though, it's taken off at our distribution centre. It's just for our system. So your consumer won't even know. So basically they were saying, if you're worried about brand reputation, don't worry about it because people won't know. So just do it anyway. And to me, that really sums up what's wrong with business in a lot of ways.

So, needless to say, we said no to that. When you are planning your international expansion, you do need to have a think about your values and who aligns and where the greater good is. And that sounds like something out of a bloody Simon Pegg movie. Hot fuzz if you're wondering what the hell I'm talking about. But if your brand is going to do more good and displace more bottles, for example, by being somewhere, then that's a good thing. But if you're going to do more harm because you need to package that product in plastic, then I think that's a bad thing.

It's something for you to weigh up. You need to have a lot of transparency when you're talking with your retailers and your distribution partners. You will understand their supply chain. You want to understand every step of where your product will go and why it will go and how the people there are treated and paid. And look, you are probably not going to be able to affect much, particularly if you're small. But you know what? I thought that too and listen to this. That same distributor that I talked about in America that we picked up, that was an enormous behemoth of a business. They changed their warehouse, one of their warehouses, to be plastic free based on working with us because we explained to them why it was important, why it mattered and how they could do it.

It took them a long time but they bloody did it. So you can change the system by working within the system, not just screaming at it from the outside. It's really important to make sure you get on with your distributors, your retailers. You're gonna talk to them a lot. You know, get to know them, get to understand if they have any community work, what social impact they have. I love retailers who are proactive in their community, or they support local initiatives, or just give back in some kind of meaningful way.

It's a really lovely thing you can share. You also want to make sure you do your due diligence. So research those retailers, research those distributors. There's an awful lot more that goes into it. This is why, again, I have spent so much time putting together Business for Better, which is a free resource, which is the only free resource in the world for entrepreneurs. There is no membership fee. And for those asking why the hell I made it free, well, it's because Ethique was so successful. I don't need to worry about it. I don't need Business for Better to make money.

I don't want it to lose money, but I am not using it as my source of income. I'm very, very privileged and lucky to be able to do this and I really want more people to take advantage of it. The final question is, why on earth is Incredibles launching into three different markets at once when every single piece of business advice will tell you you should launch in one market and become profitable there before exporting? Well, I disagree vehemently with that piece of advice. Absolutely incorrect in my opinion. And most companies export before they become profitable. A lot of companies are often never profitable in New Zealand simply because the market's too small. So that should not necessarily be a consideration. What needs to be a consideration is if you can afford to export. I haven't talked much about preparing for export because again this is short, sharp and sweet. But one of the big things in the module is understanding the actual costs it will take for you to go into that market.

And it's probably a lot more than you think. And Incredibles can afford it. We haven't had any investment into Incredibles apart from our own private money at this stage. We might look at doing equity crowdfunding later next year. But we know that we can afford to invest in marketing and distribution in Australia, the USA and New Zealand at the same time online because we want to be part of an early mover advantage. We want to change the world. We want to displace as many plastic bottles as possible. So we know we can afford it.

We know how to support it. We also have had the advantage, of course, of having done it before. This makes life a lot easier for us. It is not necessarily something other people could do. That has been long and drawn out, and I didn't mean it to be. I apologise. If you're looking to export, head over to Business With Better. Go and have a look at the Education Hub. Send me some questions. I would love to talk about this more because export journey is so exciting, and we're now cracking into it with Incredibles, and I'm so excited to tell you more about that soon.

Thank you for joining me on this journey across borders. Export is intricate, it's complicated, it's fun, it's amazing and there is nothing like walking down the shelves of a store in a different country and seeing your product sitting there. Remember your brand isn't about what you sell, it's the values you uphold and especially when you're making that global leap, you are not just going to leave those values in the dust, you're going to take them with you and you're going to change things. If you have found the value in today's episode, I'd love a share or a review to spread the word to as many people how to change the world through ethical business. Next week, we will be talking about something that's really close to my heart, obviously, sustainable business practices.

We're not just going to talk about why it's important, but delve into the how you actually build a sustainable business because I heard a statistic the other day that 83% of business owners want to be more sustainable but have no idea how. I find that hard to believe but you know what I'm gonna make it a little bit easy for you if you're within that 83% so if you're looking to align your business practices with the planet's needs trust me you won't want to miss it. So this has been now that's what I call business and remember we're not just talking business we're changing the world. See you next week.

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