Patagonia Wool Crisis

On Thursday Aug. 13th, 2015, People for the Ethical Treatment of Animals (PETA) released footage of cruel treatment at a farm in Argentina which supplied Patagonia Inc. wool used in it’s clothing.  Following the release, thousands shared the graphic video and voiced their opinions on Patagonia’s social media platforms including Facebook, Instagram and Twitter and to their online blog, thecleanestline.com.  Four days after the video release on Monday morning, Patagonia issued a statement saying they would no longer buy wool from Ovis 21, the farm responsible for the animal cruelty.  However, the “environmental friendly” company is receiving harsh criticism.  


Background:

Founder of Patagonia, Yvon Chouinard, created a company that has been a leader in the world of values-led business.  According to Chouinard’s autobiography, Patagonia will always contribute to environmental issues, even if it means that business suffers.  In an article in Inc. Magazine Chouinard said, “I know it sounds crazy, but every time I have made a decision that is best for the planet, I have made money. Our customers know that—and they want to be part of that environmental commitment.”  It’s true, people care.

In 2008, Patagonia appointed Rose Marcario as CEO, the first female to run the company in 2o years.  Bloomberg reported that Patagonia sold close to $575 million dollars in 2013.  According to Forbes, Marcario has doubled profits in the last three years.


Patagonia’s mission statement is “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”  The privately owned company backs this up by annually donating 1% of sales towards environmental organizations. Their 2013 black Friday ad read, “Don’t Buy This Jacket.”  Instead of buying new, Patagonia urged consumers to “reduce, repair, reuse and recycle” old clothing and also encouraged people to sign a pledge promising their commitment to conserving used clothing.  People both signed the pledge and bought Patagonia product in mass.

 Immediately after PETA released the graphic video of animal cruelty taken place at Ovis 21, the video went viral.  Each of Patagonia’s social media channels were bombarded with negative comments and the video was constantly reposted by the public and the link was shared in the comment fields.  A flurry of outraged consumers attacked Patagonia claiming, “they were a scam” and that their brand image of protecting the environment stood to cover up animal cruelty in their manufacturing process.  Several news organizations covered the issue like Business Insider, NPR, Vogue, Huffington Post, CBS News and others.  Patagonia was in deep trouble.

Business Insider, Yahoo News, SF Gate,  NY Daily News, Fashionista and several other networks reported on the issue and followed the initial breaking news story with another story featuring quotes from Patagonia’s CEO and the repercussions the company will face.  Outside magazine said, “The company’s response was fast.  And honest.”

Although Patagonia cut ties with Ovis 21 immediately, the company will face problems.  Retailers will face issues on existing clothing lines in store.  The production of wool is essential to the success of their most popular line of clothing.  Argentinian farms could be effected due to the slowdown of wool production which serves as a valuable economic asset.