Stephens, Arran and Ratana

Founders of Nature’s Path

B orn Arran Stephens on January 6, 1944, on Vancouver Island, British Columbia, Canada; son ofRupert and Gwen Stephens; married Ratana Stephens, a native of India, in 1969; children: Shanti, Gurdeep, Jyoti, Arjan. Education: Ratana Stephens holds a BA in psychology and an MA in English literature.

Addresses: Home—Richmond, British Columbia, Canada. Office—9100 Van Horne Way, Richmond, BC V6X 1W3 Canada. Web site—http://www.naturespath.com . Web site—http://www.arranstephens.com .

Career

A rran Stephens founded the Golden Lotus vegetarian restaurant, Vancouver, British Columbia, Canada, 1967; co-founder/operator of LifeStream, 1971-1981; co-founder of Nature’s Path, 1985; president and CEO of Nature’s Path, 1985—. Ratana Stephens worked as a college lecturer in India in the late 1960s; after moving to the United States in 1969, she helped her husband run LifeStream; co-founder of Nature’s Path, 1985; managed the couple’s Woodlands Natural Foods Restaurants through the 1980s and into 1995; chief operating officer, Nature’s Path, 1995—.

Member: Organic Trade Association, Whole Grains Council, International Federation of Organic Agriculture Movements, Canadian Health Food Association.

Awards: Together (awarded to Nature’s Path): People’s Choice Award, National Natural Foods Association, 1994; President’s Award, Natural Foods Expo West, 2003; Top 100 Employers (Canada), Maclean’s magazine, 2003, 2004, 2005; Organic Foods Award, Soil Association, 2004; British Columbia Export Award, Canadian Manufacturers & Exporters/ Ministry of Economic Development, 2005; E. F. Schumacher Award for Greenest Business, Green Party of British Columbia, 2007. Arran Stephens: Ernst & Young Entrepreneur of the Year Award (Pacific Region), 2002; Organics Award of Excellence for lifetime achievement, Canadian Health Food Association, 2002; CEO of the Year, Canadian Institute of Food Science and Technology, 2003; inducted into the Canadian Health Food Association’s Hall of Fame, 2005.

Sidelights

A s pioneers of the natural-foods movement, Ar-ran and Ratana Stephens operated one ofCanada’s first vegetarian restaurants in the late 1960s. In 1985, they founded Nature’s Path, intent on providing consumers with healthy, wholesome, sustainably grown foods. Since then, the Canadian foods company has become North America’s leading producer of organic breakfast foods. Nature’s Path owns 30 percent of the organic cereal market, thanks in part to its highly popular EnviroKidz line. The company, which manufactures hot and cold cereals, energy bars, whole-grain breads and pastas, waffles, snack foods, and baking mixes, distributes its products in 40 countries.

Nature’s Path is the only family owned independent business successfully competing in the organic-foods sector. Company president and CEO Arran Stephens says he is not surprised his company does well against giants like General Mills, Kellogg’s, and Kraft. Speaking to Susan McClelland of Maclean’s, he told this story: “I once was asked how a pipsqueak company like mine could ever compete against the giant cereal producers. I responded with, ‘Have you ever heard of David and Goliath?’ In my case, David has a product the public wants.”

Arran Stephens was born January 6, 1944, in Canada on Vancouver Island. He was the youngest child of Rupert and Gwen Stephens. Arran grew up on the Vancouver Island family farm—an 89acre expanse dedicated to berry and vegetable-growing. By the day’s standards, Rupert was an unconventional farmer. He experimented with organic farming, using sawdust for mulch and relying on manure and seaweed instead of chemical additives. In 1957, Ru-pert gave up farming and moved the family to Los Angeles so he could pursue a career in songwriting. Used to farm life, the teenage Arran struggled in the bustling city. Eventually, he found his place among the hippie counterculture of the 1960s and lived on the streets, struggling to survive as an artist and poet.

In January of 1967, Arran traveled to India seeking spiritual enlightenment. He spent seven months there, studying under many mystics, including a notable Indian guru named Sant Kirpal Singh, author of Man, Know Thyself. In India, Arran studied the Buddhist notion of “right livelihood,” the idea that one ought to find an occupation that uplifts and supports all living beings. Keeping this in mind, Arran returned to Vancouver and opened the Golden Lotus. It was one of Canada’s first vegetarian restaurants.

In 1969, he returned to India and was asked if he would be interested in an arranged marriage. Arran consulted his guru before saying yes. After a one-day engagement, he married Ratana, who at the time worked as a college lecturer. “I’d say our marriage was divinely arranged,” Arran told Conscious Choice writer James Faber. “At one point I was scared, but surrendered and trusted the judgment of my teacher. It was an absolutely sublime experience for me, and we fell in love.”

The newlyweds settled in Canada and continued running the restaurant. Later, Arran wrote a book about his experiences in India. In 1971, the Stephenses helped found a natural-foods supermarket called LifeStream. “Back then,” Arran told Maclean’s, “there were no tofu or soy products around. We had to make them ourselves.”

Bickering among partners forced them to sell the company in 1981, though they later reacquired it from Kraft in 1995. Meanwhile, the couple continued to operate their vegetarian restaurant, now called Woodlands. In 1985, Arran and Ratana founded Nature’s Path and began selling its products from the back of the restaurant. One early favorite included organic manna bread made from a recipe they discovered in The Essence Gospel of Peace, an ancient Aramaic text.

Nature’s Path added breakfast cereals and, in 1990, opened the first certified-organic cereal-manufacturing facility in North America. It was located in Delta, British Columbia. At this point, the company struggled and the Stephenses found themselves short on capital, wondering if they could make payroll. To stay afloat, they negotiated payment plans with suppliers after getting behind on their bills. While Arran concentrated on Nature’s Path, Ratana managed the Woodlands Natural Foods Restaurants, which had grown to four locations. They sold the restaurants in 1995 after Nature’s Path was back on solid footing. Ratana then joined the company and became chief operating officer.

Arran credits his wife’s business acumen with getting them through the tough times. Ratana had grown up in the confectionery business. As a child, she watched her family lose its house and business after the venture failed. She did not want her kids to have the same experience. In an interview with former University of British Columbia history professor Catherine Carstairs, posted to the Nature’s Path Web site, Arran discussed his wife’s management style: “In any business, everything boils down to good management and good PR with your customers and staff. Ratana brought that personable-ness, charm, and heart into Nature’s Path. She’s also very bottom-line oriented. She can make a nickel scream!”

During the 2000s, Nature’s Path enjoyed steady growth at an annual rate of 25 to 30 percent. The company added another cereal plant in Blaine, Washington, and opened a factory in Mississauga, Ontario, which makes toaster pastries. Arran and Ratana make a point to know each employee’s name—there are about 300. Each day, they visit one of the plants to check on the workers. The Stephenses also focus on social responsibility and environmental sustainability. Nature’s Path uses recycled paperboard and vegetable-based inks for packaging. The head office features a green roof and an organic garden for the staff. In addition, one percent of sales from EnviroKidz is donated to species and habitat conservation and education programs.

As larger corporations try to gain a foothold in the organic market, Nature’s Path works to stay ahead of the pack. Offers to buy the company come in all the time, but instead of selling, the Stephenses wish to compete. Arran says product development is key. Nature’s Path likes to take traditionally unhealthy but popular foods and recreate them. One example is the toaster pastry. Nature’s Path created one with less sugar and devoid of the white flour and trans fats that are prevalent in most toaster pastries. The product sells well.

“We try to be quite strategic in coming out with something that is better than our competition’s,” Arran told Nick Roskelly of Stagnito’s New Products Magazine. “Our goal is be No. 1 or No. 2 in a category. If we can’t do that, then I think we should be looking at developing another product.” As for the future, Arran plans to expand Nature’s Path reach by venturing into the food-service market. He is especially interested in working with airlines and the military.

Selected Writings

Journey to the Luminous: Encounters with Mystic Ad-epts of Our Century. Elton Wolf Publishing (Seattle, WA), 1999.

Sources

Periodicals

Food in Canada, January/February 2006, p. 62; January/February 2007, p. 42.

Maclean’s, October 27, 2003, p. 70.

Stagnito’s New Products Magazine, March 2004, p. 36, p. 38.

Online

“ALifelong Journey,” Conscious Choice,http://www.consciouschoice.com/2000/cc1303/alifelongjourney1303.html (May 21, 2008).

“Enjoying the Fruits of His Labor,” Bellingham Herald,http://www.bellinghamherald.com/business/v-print/story/147567.html (March 31, 2008).

“Interview with Arran Stephens: President & Founder of Nature’s Path Foods,” Nature’s Path, www.naturespath.com/index.php/plain/content/download/959/5916/file/Arran_Interview_DrCarstairs.pdf (March 31, 2008).

“Our People,” Nature’s Path, http://www.naturespath.com/about_us/our_people (March 31, 2008).

“Our Roots,” Nature’s Path, http://www.naturespath.com/about_us/our_roots (March 31, 2008).

—Lisa Frick