method: Adam Lowry & Eric Ryan

Key takeaways

Persistence and resilience are crucial in building a successful business, especially when facing rejection and setbacks.
Authentic branding and design can differentiate products in a crowded market and connect emotionally with consumers.
Innovative thinking, such as using inverted bottles, can create unique product experiences that stand out.
Building relationships with industry professionals and investors requires boldness, networking, and sometimes thinking outside the box.
Partnerships built on mutual respect and understanding are vital for enduring success in entrepreneurship.
Focusing on sustainability and environmental impact aligns with consumer values and can lead to a strong market position.
Eventually, entrepreneurs may choose to sell their business to support its growth and legacy, while continuing to influence their industry.

Summary

Founders' Backgrounds and Inspiration

Adam Lowry and Eric Ryan, childhood friends from Michigan with backgrounds in sailing, auto industry, and diverse professional careers, reconvened in San Francisco in the late 1990s. Their shared interest in sailing, environmental issues, and design catalyzed their entrepreneurial spirit. Adam studied chemical engineering at Stanford, working on climate change research; Eric studied business at the University of Rhode Island and worked in advertising. Their friendship reconnected unexpectedly on a flight, and they bonded over concerns about toxic cleaning products and a desire to create a healthier, environmentally friendly alternative.

The Genesis of Method and Product Development

Inspired by the dullness of traditional cleaning products and their environmental toxicity, Adam and Eric set out in 1999 to create visually appealing, non-toxic cleaning solutions. Adam's chemical engineering background helped in formulating products from simple, grocery store ingredients like vinegar, baking soda, and natural oils. Eric focused on designing sleek, attractive bottles, choosing stock bottles inspired by European designs. They initially funded their venture with $45,000 each from family and worked out of their group house in San Francisco, experimenting with formulations and branding on a tight budget.

Early Business Strategy and Challenges

The entrepreneurs targeted local grocery stores in the Bay Area, pitching their products directly to store managers, often through repeated visits and demos. They emphasized design, eco-friendliness, and consumer appeal, aiming to reach an audience that traditionally didn't buy green products. Their dedication paid off when Target agreed to a 90-store test, driven by their innovative inverted bottle design. They relied heavily on persistence, resourcefulness, and grassroots efforts like personal demos and storytelling to build initial traction.

Growth, Investment, and Big Bets

To scale, Adam and Eric raised a total of about $25 million over several funding rounds, with initial investments from friends, family, and early angel investors, followed by a major $1 million institutional round. They collaborated with renowned industrial designer Karim Rashid to redesign their product packaging, which significantly boosted their market appeal. Their strategic focus on design, sustainability, and authentic branding enabled them to secure shelf space in major retailers like Target and Whole Foods, despite skepticism from traditional players.

Product Failures and Relationship Dynamics

Not all their big ideas succeeded; a notable setback was their 'block' line of personal care products, which failed, resulting in substantial financial loss and tension between the founders. However, their complementary working styles and conscious effort to understand each other’s approaches helped them maintain a strong partnership. Their shared perseverance and ability to adapt allowed them to recover and continue innovating.

Exit and Legacy

In 2013, they sold Method to EcoVare, aiming to ensure the company's long-term sustainability and advancement of their mission. Post-sale, they moved on to new ventures—Adam founded Ripple Foods, and Eric launched Oli. Despite no longer owning Method, both still feel a strong emotional connection to their creation, seeing it as a part of their identity and legacy.

Show notes

In the late 1990s, Adam Lowry and Eric Ryan took on the notion that "green doesn't clean" by setting out to make soap that could clean a bathtub without harming the environment. Adam started experimenting with baking soda, vinegar, and scented oils, while Eric worked on making sleek bottles that looked good on a kitchen counter. Just a few years later, Adam and Eric were selling Method cleaning products in stores throughout the country, after a bold gamble got them on the shelves of Target. PLUS, for our postscript "How You Built That," how Loren and Lisa Poncia turned a 100 year-old family business into an organic beef supplier: Stemple Creek Ranch.

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