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Tropic 2021: Stakeholder Report

Page 1

A Year in Review 2021


Contents OUR BIGGEST DEVELOPMENTS

..................................

2-6

INVESTING IN OUR AMBASSADORS

..........................

7 - 11

AWARDS AND PRESS

...........................

12 - 14

SUSTAINABILITY AND GREEN INITIATIVES ............................. 15 - 17

OUR INFINITE PURPOSE IN ACTION ............................................... 18 - 25

ome t Hello and welc eport! Stakeholder R

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orld.

elebration,

A Y EAR I N R EVI EW 2 021

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OUR BIG DEVELOP

IN 2


GGEST PMENTS

2021

A Y EAR I N R EVI EW 2 021

2


2021 WAS OFFICIALLY THE YEAR TROPIC PRODUCTS BECAME COSMOS CERTIFIED In 2021, we were delighted to see some of our products gain COSMOS certification from the Soil Association. But what does this accreditation mean? Well, it confirms that 95% or more of the agricultural ingredients contained in these products are organic, sustainably sourced, not tested on animals, and free from synthetic fertilisers made from burning fossil fuels. No herbicides (weedkillers) such as glyphosate are allowed either.

95%

or more of the agricultural ingredients are organic

Organic farming closes the loop, recycling all nutrients and organic matter back to the soil and makes use of what’s to hand. It’s hugely beneficial to the environment, not only because organic farmland stores 3.5 tonnes more carbon per hectare than regular farmland, but also because organic farms support around 50% more bees, butterflies and other pollinators too.

Soil Association, 2021


BIGGEST DEVELOPMENTS

Organic farms have around

50%

more bees, butterflies and other pollinators

Having been brought up in an agriculturally based family in India, respecting the health of the environment is of prime importance to me. So, using organic crops grown on healthy, balanced soil to create organic formulations is very close to my heart. KAVITHA

Head of R&D and Compliance

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IN 2021 WE RELEASED

These products have already become firm favourites among cus Ambassadors and staff. We can’t wait to keep developing

In total we released

34

NEW and updated products

July

May

16

April

Limited Editio Collections

r e b m e t p e S


BIGGEST DEVELOPMENTS

D...

stomers, g!!

MICA

“ May

6

Makeup Development Executive

Developing makeup products from start to finish must be the best job. Watching your ideas come to life and seeing people enjoy them is so fulfilling and exciting. We launched so many lovely additions to the range this year, but my personal favourites would have to be the Silk Gel Liners and the Lip Stains. They’ve all been so popular and I love how long-wearing they are. We really take our time working on perfecting all formulas and, even though it can be challenging at times, it’s always worth it!

19

on s

NEW makeup products launched

September A Y EAR I N R EVI EW 2 021

4



BIGGEST DEVELOPMENTS

ON YOUR MARKS,GET SET...

GLOW

Thanks to all you loyal glow-getters, we’re one of the UK’s most-read magazines, with a larger reach per issue* than Heat, Closer, Vogue and Vanity Fair – not that we’re comparing! *Glow readership is estimated at 3x circulation.

That’s an estimated readership of over

2.8 million people

MAGAZINE

REACH

Glow by Tropic 2,895,000 Vanity Fair 2,697,000 Vogue 2,678,000 Closer 2,499,000 Heat 2,338,000 Monthly reach of leading beauty and lifestyle magazines (in millions).

FLORENCE

Senior Brand Content Writer

This year the quality and readership of our magazine and general written content has improved dramatically, and that’s no doubt thanks to the fact we’ve used Ambassador focus groups to guide our Glow process (or Glow-cess!). 2022 only has more in store where this came from, and we can’t wait to start utilising Ambassador focus groups to drive our digital content, too!

965,000 people bought our last edition of Glow (Tropic print run, 2021).

STATISTA, 2021

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100/100

ETHICAL INDEX SCORE

Undoubtedly one of the highlights of 2021 was scoring 100/100 on The Good Shopping Guide’s Ethical Accreditation Index. Although it marked the 4th year of our accreditation, it was the first time we’d received full marks!

Tropic has successfully managed to consider several facets of corporate social responsibility that have come together to result in an Ethical Company that stands as a benchmark for other health and beauty brands to aspire to . The Good Shopping Guide. It’s safe to say we were chuffed to bits!

MADE IN BRITAIN Did you know that 90% of Brits believe it’s important to buy British-made products? (Made in Britain, 2020) Similarly, 66% of Brits said they were more likely to buy British products since the outbreak of the Coronavirus pandemic (Made in Britain, 2020). Since 98% of the Tropic products we sell are made right here in the UK, we just had to become Made in Britain certified. You can find all our Made in Britain products over on our website product pages. Want a sneak peek of what’s cooking in the Tropic Kitchen? Follow our TikTok page @TropicSkincare for exclusive, behind-thescenes footage.

98% of the Tropic products we sell are made right here in the UK


BIGGEST DEVELOPMENTS

PROVENANCE 2021 was also the year we went live with Provenance® – a sustainability platform that empowers brands to make the impact behind their products transparent by independently approving their claims. Does every product really fund education? Are all of our skincare products really made in-house with renewable energy? Is our sunscreen really waterproof? Does our Face Lift really improve fine lines and wrinkles after just one use? The answer? Yes! And now you can check the facts too, since we have over 300 Proof Points on over 160 website product pages!

We have over

on over

Proof Points

website product pages!

300 160

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INVESTIN AMBASS


NG IN OUR SADORS

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I'm immensely proud! Our family of Ambassadors is at the heart of Tropic, so, we’re continually developing new ways to support them, so you get the best product consulation and beauty advice.

“ HELENA

Head of Ambassador Strategy and Technology

From launching our social media management platform, to developing a brand-new, in-depth skincare course, plus unveiling more fabulous incentives and campaigns than we’ve ever seen before – 2021 has been an incredible year! I’m immensely proud of all we’ve achieved together so far – the strength, resilience and true community spirit of all our Ambassadors this past year has driven us forward every day. We’re committed to continuing to invest in and empower our family of Ambassadors and 2022 is set to be another phenomenal year!

For every £1 spent with Tropic, an estimated 44p goes straight into paying, supporting and investing in Ambassadors.


INVESTING IN OUR AMBASSADORS

OUR BUDGET BREAKDOWN FOR 2021 44% 19% 16% 8% 7% 2% 2% 2%

Ambassador commission and investments Manufacturing and dispatch of products Taxes Admin and Tropic salaries Profit Charity and good causes Product and R&D Marketing

£40 million In 2021, our Ambassadors earned over

in commission!*

* This information is a simplified illustrative version of our financial accounts, and as of a result, may differ from other financial reports. This data also contains forward-looking statements and data for 2021. Although data contained in this presentation is to the best of our knowledge and is based upon what we believe are reasonable assumptions, there can be no assurance it will prove to be accurate, as actual results and future events could differ materially from those anticipated. Please do not place undue reliance on this data.

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AMBASSADOR AND CUSTOMER SUPPORT Our almost 40-strong Ambassador and Customer Support Team work their socks off to deliver an exceptional experience for you. Each day they: - Answer over 200 calls - Respond to hundreds of emails - Reply to any queries submitted through our webchat service

“ CLAIRE

Ambassador and Customer Support Manager

We answer over

200 calls a day

Whether it’s a skin consultation or a query about navigating our website, our team is the best in the business. So much so, we’ve extended our hours to 8am to 8pm Monday-Friday and are now also available on weekends, bank holidays and during the festive period too.

The team have been incredible over the last year. We have over doubled in size, which has meant a total of three months of training to make sure everyone is up to speed with everything. We’re available all days of the year (apart from Christmas Day) to ensure we’re giving the best customer service possible.


INVESTING IN OUR AMBASSADORS

KEEPING UP WITH DEMAND Products are flying out of Tropic HQ, and that’s all thanks to you! But don’t worry, we’ve been continually improving our HQ operations to ensure we’re keeping up with customer demand.

“ CARLTON

Managing Director

We sell an average of

30,000 products each day

What a year we’ve had! I manage over 10 departments, from Supply Chain all the way through to Dispatch. All working hard to ensure our Tropic products are on the cutting edge of green beauty, freshly made and swiftly sent out to customers. This year, we’ve made some huge changes in the way we work, while continuing to navigate the pandemic. In 2022, we’ll be finessing our operations even further.

FREE DELIVERY

FREE MAGAZINE

We’ve also continued to offer free delivery when you spend over £30 since making this change in March 2020.

We’ve also continued to offer a free Glow magazine for orders over £60.

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KEEPING UP WITH DEMAND

£2.5 million We’ve spent over

on new machinery to speed up production in our Tropic Kitchen.

The state-of-the-art machines have also allowed us to manufacture pressed powders and lipsticks in-house for the very first time.

We fill

1 million bottles, tubes and pots every month in our Tropic Kitchen.


INVESTING IN OUR AMBASSADORS

“ SONKE

Mechanical Engineer Manager

In February 2020, Susie and Carlton were on a business trip to South Korea when they sent me a short video of a prototype filling machine. Now, 1.5 years later, this vision has become reality. Our 14-metre-long automatic filling machine cleans, fills, weight checks and applies caps and pumps to over 27 products (and counting!). We’ve also implemented one for our hot pour products, including our fabulous lipsticks, which means we can bring them in-house for the first time. These investments in automation will change the way we operate significantly and I’m extremely excited!

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WAREHOUSE To manage increased customer demand, we’ve expanded our warehouse capacity exponentially in the last year. We’ve almost doubled our number of raw material palettes (from 400 to 850) and tripled our packaging palettes (to over 2,000) to ensure we always have packaging in stock.

ROB

Warehouse Manager

The orders keep coming in, don’t they? The warehouse has supplied 1,500 ‘bulk’ orders for the Tropic Kitchen this year alone. That’s over 600 tonnes of ingredients which are then formulated into the Tropic products you know and love. Each day, our 20-person strong team loads enough Tropic parcels to fill a huge 44-tonne lorry through DPD orders alone. On top of this, for our Royal Mail orders, we fill three 18-tonne lorries!


INVESTING IN OUR AMBASSADORS

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AWARDS A


AND PRESS

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AWARDS A sneak peek at Tropic’s 2021 trophy cabinet? You asked, we delivered. Drumroll please...

C

This year’s awards total is

Our total award tally now stands at

44

271

BEST EE BRAND R -F Y T L E RU

BEST CARBON NEUTRAL BRAND

SUSTAINABILITY AWARD FOR MARIE CLAIRE

GLAMOUR BEAUTY POWER LIST

At Tropic, we’re always trying to lead by example and go the extra mile for our precious planet. That’s why we were so delighted to be named the inaugural winners of ‘Best Cruelty Free Brand’ at Marie Claire’s first ever Sustainability Awards!

We also scooped the prize for Best Carbon Neutral Brand at this year’s Glamour Beauty Power List Awards.

A RECORD

BREAKING

2 3 AWARDS

BEAUTY BIBLE RECORD! Plus, we smashed a 25-yearlong Beauty Bible record by bagging an incredible 23 prizes at the Beauty Bible Awards. After all, records are meant to be broken!


AWARDS AND PRESS

HALL OF FAME Lots of our products are something of skincare celebrities. Let’s look at their popularity:

Colour Palette and Body Smooth both won this year, and now have

9

awards each

Our Skin Shade Tinted Moisturiser was watched by over one million people on ITV’s This Morning (including Phillip Schofield and Holly Willoughby). Speaking of Holly Willoughby, she was spotted wearing our Silk Gel Liner and featured it on her lifestyle blog too.

We’ve received over

500

pieces of coverage this year, including being in print in Vogue, not once, but twice.

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IN THE PRESS MTV EMA Awards This year, Tropic helped to get the world’s biggest artists stage-ready at the MTV EMAs in Hungary. Our Summer Goddess was a real hit and was worn by the dancers for Maluma’s performance. Check it out here!

#lovetropic

“ NICOLE

Head of Marketing

Our following has increased by

22%

across Instagram and Facebook

#lovetro

We’ve all spent more time online this year than we could’ve ever imagined, which is why we’ve been busy optimising our website to offer you a better online shopping experience. From the recent homepage and product page update to new offer functionality, an updated Skincare Routine Finder and more recently our new live shopping events, we’re constantly innovating and we’ve plenty more exciting projects underway! I’ve loved seeing so many of you engage with us on our social channels – our following has increased by 22% across Instagram and Facebook meaning we’ve reached millions of customers, spreading the word about everything we do here at Tropic. The positive reviews have been rolling in via our new review program with Trustpilot – it’s clear that we’ve some very happy customers!


AWARDS AND PRESS

CUSTOMER REVIEWS Of course, we love seeing what the press and professionals have to say about our products. But do you know what we love more? Hearing what you – our valued customers – really think of our skincare staples and new releases. Thankfully, it looks like Tropic has a special place in your heart too! Over

10,000

opic

reviews were posted on our website

Over

92% of customers gave our products 4 or 5 stars

We now have over

6,000 ‘EXCELLENT’ reviews on Trustpilot

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SUSTAINAB GREEN IN


BILITY AND NITIATIVES

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FOR 4 YEARS RUNNING, WE’VE BEEN A CERTIFIED CARBONNEUTRAL® COMPANY and double offset our emissions – and 2021 was no different. We’ve offset the equivalent of over

6,000

football pitches worth of forest growing for an entire year. We work closely alongside Natural Capital Partners. They are CarbonNeutral® leaders who help companies achieve their climate action targets while supporting people’s livelihoods and the natural world.

In 2021, we double offset all our emissions through:

The Acre Amazonian Rainforest Conservation project in South America – an initiative that aims to protect biodiverse habitats by preventing deforestation across

105,000 hectares of pristine forest.


SUSTAINABILITY AND GREEN INITIATIVES

The Rimba Raya Biodiversity Reserve, we worked with local communities to help protect

65,000

hectares of forests in Indonesia from the threat of unsustainable palm oil conversion.

UN Global Compact wind farms – harnessing wind energy to help power

700,000 households using 68 wind turbines in Southwest Mexico.

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This year, we joined forces with Forestry England to plant and care for a forest of 7,000 trees in Queen Elizabeth Country Park!

This forest is important not just for the planet, but also for all our mental and physical wellbeing

England currently has just 13% of its total land area dedicated to wooded green spaces (compared to 19% in Scotland and 31% in France). This forest is important not just for the planet, but for our physical and mental wellbeing too. We’ve also funded a Goshawk nesting camera in the forest, so keep your eyes peeled for updates throughout 2022.

We raised enough money to fund the planting and care of

7,000 trees in Queen Elizabeth Country Park


SUSTAINABILITY AND GREEN INITIATIVES

MORE GREEN HIGHLIGHTS PCR

We joined the Better Business Act – a coalition campaigning for a cleaner, greener, fairer future for all.

You can now return used pipettes (including mini pipettes and Hydrogel Eye Mask packaging) to us, and we’ll recycle them on your behalf.

We ditched bubble wrap completely from our parcels.

All our website product pages now have recycling information on them.

Our full-sized body washes are now made with majority PCR (post-consumer recycled) plastic.

We’ve now been landfill-free for the 3rd year in a row.

FUTURE AMBITIONS We’re implementing ways to reduce our carbon footprint overall

If COP26 and the Earthshot Prize has taught us anything, it’s that we can’t rest on our laurels. That’s why we’re implementing ways to reduce our carbon footprint overall, as opposed to only double offsetting. We’ve already identified ways to make this happen, such as how we import all our ingredients, as well as looking at how members of the Tropic team commute into work.

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OUR INFINIT IN AC


TE PURPOSE CTION

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In 2021 we funded enough for over

12,000

children to be educated for an entire year who otherwise wouldn’t be

Since our partnership started in September 2019 we’ve funded over

4.5 million school days


OUR INFINITE PURPOSE IN ACTION

We’re delighted to have kickstarted the third year of our powerful partnership with United World Schools. With every Tropic purchase funding education, we’ve managed to bring hope and new opportunities to children in some of the world’s poorest, most remote regions.

We can’t forget about the two new UWS schools that are being constructed and funded by Tropic

Our Tropic Treks initiative helped Nepalese children experience their first day at school! We can’t forget about the two new UWS schools we’ll be opening either! One will be in a village called Madamsingh in Eastern Nepal, and the other in a village called Ampandrivotse in Southwest Madagascar. These schools will bring education to two brand new communities for the first time.

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We’ve been helping to tackle UK hunger and poverty since September 2020 by working with the Trussell Trust. Each day, the Trussell Trust delivers 5,100 emergency food parcels to people in need. But they can’t do it alone. We’re honoured to have donated over £150,000 for the Trussell Trust since our partnership began, and this money will fund the operations of 25 community foodbanks for a whole year.

6

in Scotland

6

in N.Ireland

6

in Wales

7

in England

Funding 12 months’ worth of vital operational support to

25

food bank centres across the UK


OUR INFINITE PURPOSE IN ACTION

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For every purchase of our Limited Edition Festive Collection, we will fund the planting of a tree with Eden Reforestation Projects. So far we’re on track to plant over

500,000 trees across Kenya, Madagascar and Mozambique.

Not only restoring the environment, but providing local employment opportunities for those living in extreme poverty too.

For every purchase of our Limited Edition Festive Collection, we will fund the planting of a tree with Eden Reforestation Projects


OUR INFINITE PURPOSE IN ACTION

The Great Barrier Reef stretches across 14 degrees of latitude. We must act now to reduce greenhouse gases entering the world’s atmosphere.

£30,000 We’ve donated over

for the foundation

Reef Restoration Foundation is an Australian notfor-profit social enterprise that’s working to restore the Great Barrier Reef. With 10% of our Ocean Dive Serum profits being directly donated to this work, we’ve raised over £30,000 for the charity. This has allowed them to expand their operations across Fitzroy Island, so more coral regeneration can take place.

We’re growing corals at an accelerated rate to fight the loss of biodiversity on coral reefs. Through the leadership of companies like Tropic Skincare, we’re able to do what we do. Ryan Donnelly - CEO Reef Restoration Foundation

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They may be our longest-standing charitable partner, but our support for the Winnie Mabaso Foundation has never wavered. The charity works tirelessly to support vulnerable and orphaned children in South Africa, as well as anyone who is underprivileged and in desperate need.

Our donations have funded the purchase and the refurbishment of a ‘forever home’ for vulnerable young women.

Our donations have funded the purchase and the refurbishment of a ‘forever home’ for vulnerable young women.

In 2021 we, alongside our Ambassador network, raised over

£50,000 for our longest-standing charity partner

“ Lisa Ashton MBE Founder - The Winnie Mabaso Foundation

We were overjoyed that our Tropic family continued to support us this year. 2021’s fundraising has allowed us to continue with the renovations at Tropic House. It’s always been such a concern to us where our girls will go when they are no longer placed with us by Social Services, but now, they know they’ll always have somewhere to call home. I wish you could have seen their faces when we shared the news with them – tears of joy and disbelief at the generosity shown to them by their Tropic family.

MabasLove x


OUR INFINITE PURPOSE IN ACTION

£300,000 This brings our grand total to over

since 2017

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In England and Wales, one million young women are struggling with low wages, rising living costs and cuts to universal credit. Concerned by these figures, we partnered up with the Young Women’s Trust – a feminist organisation working to achieve economic justice for young women. Designed alongside independent artist, Immy Patron, we sold a sustainably-sourced tote bag – with 100% of the profits going straight to the Young Women’s Trust.

£40,000

We’re so pleased to say that we’ve raised over

and counting!

Our donation could fund a professional course of lifestyle coaching for over 200 young women – helping them to stay motivated, identify their skills and set goals.

Thank you so much for our last call, I felt so encouraged and motivated and it really made a difference. I’m sure you are all doing this every day and you need to know it really helps.

A young woman who had a session with a coach in 2021 and is now in work.

You can still pick up a bag with all the proceeds going towards the Young Women’s Trust!


OUR INFINITE PURPOSE IN ACTION

We’ve supported

60 people get off the streets

Through their unique crowdfunding model, Beam helps homeless people secure accommodation, begin careers, and find true independence.

I am really glad to say that I have started work as a cleaner for 2 different companies. These jobs mean that my benefit cap will be lifted, and I will be able to afford to pay my rent and support my children. I am feeling so grateful! Eunice

At the start of the year, we gave our Diamond Executive Ambassadors a £1,000 Beam gift card, so they could choose who to donate to on our behalf.

Together, we’ve helped: • Over 60 people get off the streets • More than 25 people find employment We’re honoured to have given individuals, like Eunice, a new start in life.

On average, two women in England and Wales are killed every week by a current or former male partner. Staggered by these statistics, we partnered with Action Breaks Silence, an educational charity established to create a world where women and girls can live their lives free from the fear of gender-based violence.

It’s not about protecting daughters, but rather educating sons – taking the misogynistic root out of gender-based violence before it can take hold.

So far, we’ve raised over £50,000 for Action Breaks Silence. This will fund an entire e-learning platform that will teach girls to be empowered, boys to be empathetic, and a whole new generation to care about the safety and wellbeing of others. We hope that it will be accessible to all UK secondary schools in 2022.

£50,000 We’ve raised over

for Action Breaks Silence so far...

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LGBTQ+ and akt At Tropic, we believe you should always be accepted and embraced no matter your sexual orientation or gender identity. However, we recognise that not everyone in mainstream society shares these values.

24% of all homeless youth identify as LGBTQ+

Over the last six years, the number of homophobic hate crime reports in the UK has tripled, with transphobic hate crime reports quadrupling too – (Vice World News, 2021). In addition, 24% of all homeless youth in the UK identify as LGBTQ+. Worried by these figures, we decided to donate to akt – a charity giving a warm and safe haven to our homeless LGBTQ+ youth. Our effective donations in 2021 covered the cost of 50 young people with a 2 day stay at emergency accommodation.

Young Carers charities

39% young carers said nobody in their school was even aware of their responsibilities

Young carers are unsung heroes, now more than ever – but they’re often hidden. For instance, 39% of young carers said nobody in their school was aware of their caring responsibilities. (The Children’s Society, 2021) To say thank you to these extraordinary young people, we donated more than 100 gift sets each to Fife Young Carers, Carers Trust South East Wales, Action for Children in Northern Ireland and Action for Carers Surrey.


OUR INFINITE PURPOSE IN ACTION

HEALTHIER

Discontinued product donations We always ensure that any discontinued products get a deserving home – which is why we donate them to fabulous local causes like:

We couldn’t forget about our NHS heroes! So, we donated thousands of goody bags to The Ambulance Staff Charity and Cavell Nurses’ Trust, who then distributed these bags across their UK-wide network.

• • • • • • • • • • •

East Surrey Domestic Abuse Services Bundles of Joy Women In Prison Stripey Stork Sutton Women’s Centre Sutton Night Watch Oasis Domestic Abuse Service Southwark and Lewisham Womens’ Space Evolve Housing Foal Farm Kairo’s Trust

We also sent some goody bags to all the clinical and non-clinical staff at Tropic HQ’s local hospital in Croydon.

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MORE EMPOWERING WORK We’ve always recognised, valued and championed the cultural identities of our Tropic family.

In the UK

1 in 5

black women feel societal pressure to straighten their hair at work. Determined to make Tropic HQ as inclusive as possible, we adopted The Halo Code – a pledge that promises individuals the freedom and security to wear all afro-hairstyles without restriction or judgment.


OUR INFINITE PURPOSE IN ACTION

INCLUSIVE MAGAZINES Over two million people in the UK are estimated to be living with sight loss. So, to ensure everyone could enjoy our latest edition of Glow Magazine, we made it available in audio format – accessible through Spotify and Apple Music. Our Glow Magazine and Festive Guide are also available in screen reader-assistive technology versions. Please get in touch if you would like to request a copy.

TROPIC IS STRONGER THAN EVER!

“ CONNOR

Brand and Social Responsibility Manager

The past year has had lots of twists and turns, but it’s safe to say that Tropic is stronger than ever. We’ve made decisions that put our people and planet above all else. Championing our Infinite Purpose is what makes Tropic unlike any other beauty brand – and why my role at Tropic is incredibly rewarding. Whether you’ve placed one order or a thousand, you’re helping to create a healthier, greener, more empowered world, every time. Thank you so much. We have so much planned for 2022; a new organic range, even more sustainable packaging, the opening of our forest and new UWS schools, and so much more under wraps that we can’t wait to share with you very soon! I ‘m so excited to see what we can achieve together next!

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” 25


#lovetropic


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