Lily Organics pushes to become a USDA certified processor and handler
Although it is a small company, operating entirely from a 15 acre site just North of Denver, Colorado, Lily Organics has been leading the way in North America over the past 15 years, working to a model that many natural and organic companies are increasingly aspiring to.
However, as company founder Lily Morgan points out, the route to producing your own ingredients as well as cosmetics products, and getting USDA certified is by no means an easy one.
Hours filling out forms...
“We spend hundreds of hours, filling out forms, making farm maps, producing certification manuals, learning the standards, having audits and inspections, living up to the audits, not to mention the thousands of manual labor hours to actually farm,” Morgan told CosmeticsDesign USA.
As part of the company’s long path towards total USDA certification for every step of its business, Morgan explained that it is currently in the midst of securing certification as a processor and handler, having already gained FDA inspection approval for its laboratory and production facility.
The USDA organic certification process is also being extended to the produce and ingredients it grows on the farm. Currently the company grows lavender, calendula, chamomile, yarrow, mint, fennel, sage, arnica, feverfew, rosemary and hops, together with a large selection of vegetables.
Investing in the supply chain
Although businesses such as Aveda and Intelligent Nutrients – both set up by natural cosmetics pioneer Horst Rechelbacher – have been developed around the direct supply of ingredients, Lily Organics claims to be the only USDA certified skin care company that is also an organic grower.
The company’s product range now numbers 22, including three cleansers, toners and creams, together with a lotion, a mask and a misting product.
However, one of the most recent additions to the product portfolio – Kukui Sensitive Facial Oil Treatment – has become the company’s first product to carry the USDA Certified Organic logo on its packaging.
Eyeing major growth
Although the company remains a small business with annual sales not exceeding $300k a year, the business is now well positioned to take advantage of industry-leading growth for natural and organic cosmetics.
Tapping into this trend the company is growing fast, with sales increasing at well into double figures during the course of the last year - even during the largely disastrous 2009. And the company says it is eyeing even greater growth in the coming years.
Currently, the company derives approximately one third of its sales through its own website, but an agreement with major national retailer Whole Foods is raising awareness of the brand and helping to drive sales growth.
New facility will fuel growth plans
“We have grand plans. We are going to build a new building on 10 acres right off the interstate 35 miles North of Denver,” Morgan said.
The facility will house the farm and production laboratory, as well as providing tours for visitors to see how the crops are grown, how the ingredient extraction process is carried out and the way in which the finished goods are made.
Even more ambitious are plans to house a retail facility to promote the product line, together with the possibility of a spa and retreat facility.
