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]]>During a recent Sunday evening at a school gym in Toronto, the Ninja Monkeys, a co-ed floor hockey team comprised of five women and seven men who have played together for nearly a decade, nailed their competition to the wall. Then they headed to a nearby bar to celebrate their 13–9 win with a round of drinks.
Team captain Tammy Symes, a 39-year-old recreational athlete, loves to play sports so much she signs up for two softball teams and two floor hockey teams each year, sometimes adding in ultimate frisbee or soccer for an extra dose of fun. “I’ve made so many friends, it’s unbelievable,” said Symes. She also gets to flex her leadership skills, serving as captain for most of the teams she plays on.
Supporting all that healthy fun and personal growth is a unique business model. Kristi Herold founded the Toronto Sport & Social Club in 1996. She had competed on rowing and ski teams at Queen’s University in Kingston, Ont., but when she graduated and moved to Toronto, she fell into an accessibility gap in recreational sports—especially for women.
“I thought maybe I could play soccer. But at the time, the only soccer I could find for women was highly competitive,” said Herold during a recent interview at the company’s Toronto office. “I couldn’t play at that level.” Yet she also couldn’t imagine her post-university life without sports. “If you go and play after work, you’re going home happier, you get a little sweaty, you’ve had some laughs on the field. You’re going to be less stressed, and your health is going to be better.”
Herold, who ran two small businesses while completing her commerce degree, seized on the gap in recreational sport for adults as an opportunity to launch her own company. “I realized I had to go out and do something on my own,” said Herold, who sports an athletic build, wild curls, and a ready smile. “I’d heard about these clubs in the US and I thought, well, I’ll give it a try.”
That was back in the analogue days, so Herold called up friends and friends of friends to see if they might be interested in playing on a co-ed sports team in a downtown location. She explained her idea as “intramurals for people who aren’t in university anymore.” By targeting recent graduates who faced the same lack of sporting options she encountered, Herold managed to sign up 52 co-ed teams that first season to play soccer, ultimate frisbee, flag football, basketball, and beach volleyball.
She charged $350 per team for the season, signed Spalding and Wilson as equipment sponsors, and launched a sporting enterprise that, 23 years later, has 130,000 annual participants playing about 30 sports. It employs some 50 full-time and 250 part-time staff, has expanded to eight Canadian cities, and can boast of being one of the largest sports and social clubs in North America.
Even in her first year running the future sports empire, Herold knew she was on to a good thing. “I was out at games every night…and showing up at sponsor bars afterward to make sure everyone had a good time.”
The concept is relatively simple. Players pay to play for a season that runs about 12 weeks. They can join either as an individual or a group can sign up as a team. Sport & Social Club handles all the organizing: matching individuals with a team, providing equipment, setting rules, creating a schedule, renting venues, tracking standings, and arranging social gatherings.
There are single-sex, co-ed and open leagues. The goal is to make it welcoming to anyone, regardless of skill or experience, with an emphasis on fun and making friends. On co-ed teams, there must be a minimum number of both men and women in play at all times. As Symes said, “If you join, you get played, and you have a good time.”
Said Herold: “I wanted to show it was possible to start something that everyone can play.”
When her business proved to have legs that first year, she formed a 50/50 partnership with her boyfriend, Rolston Miller. He had recently retired as a semi-pro cyclist and was looking for flexible work. As the company had no money for stamps, his first task was to deliver printed flyers that promoted seasonal registration. He did that, of course, by bike.
The two married later that year. Miller focused on building a digital platform for the company that would eventually become the foundation for internal and external communications. Herold led the business as CEO. “We were really hustling,” said Herold. “We grew by word of mouth, didn’t spend much on marketing.”
One of the club’s earliest hires was Rob Davies, an operations whiz. In 2007, Herold and Miller invited Davies to buy into the company, which is now run by the three partners, with Herold as CEO, Davies as president, and Miller as director of marketing.
Meanwhile, on the home front, Herold and Miller were struggling to manage a growing family with three young children. They found ways to distribute the workload at home according to practicality, rather than gender expectations. Still, Herold often felt overwhelmed. She’d grown up in Sudbury; her father was an entrepreneur and her mother stayed at home. “I grew up wanting to be both of them, which was challenging,” said Herold. “I felt I was failing, both as an entrepreneur and a parent.”
That crisis led Herold to take bold action. In 2005, she decided to step away from the business for 16 weeks of the year. She did that for several years. It wasn’t easy, but it seemed possible, Herold said, because of her innate leadership style, which she described as “bottom up.”
“I like to think of me as the base of a tree. I’m here to support. I say, tell me what I can do so you can go and do your work. It’s not me, standing on top, talking down.”
She and Miller divorced in 2012 but they’ve maintained their business relationship.
Now, after a decade of focusing on family while Herold placed the business in a slow-growth mode, she’s back in her CEO chair full-time. And she has a new goal of getting one million people off the couch, which means leading the company into an era of ambitious expansion.
Over the past two years, Sport & Social Group has expanded into new markets by buying up clubs that were already operating in Ontario and Michigan. Leaning on the parent company’s infrastructure and its custom digital platform, the newly acquired clubs can sign up and retain more members than they had previously. More acquisitions are in the works.
In the #MeToo era, ambitious growth in the sport industry comes with a responsibility to create a safe place for women. Herold aims to create gender balance—in the workplace and at play. Currently, about 40 percent of the club’s staff is female. And about 45 percent of its membership is female. Herold celebrates those stats in the male-dominated sporting industry.
So far, the company has not faced harassment issues, but Herold wanted to be ahead of the issue and hired an old friend from Queen’s University, Bay Ryley, to deliver online training for employees, teaching them how to identify and report harassment.
Sport & Social Group’s also developed gender policies that are trans-inclusive. Such measures are particularly important in co-ed sport, with teams required to have a minimum number of both genders in play at all times. For example, on the soccer field, two of six players must be women and two must be men. The other two can be any gender.
To register in single-sex or co-ed leagues, players can self-identify as either male or female at registration. Those who don’t identify a gender when they register are welcome to play, though their teams may not count them as either men or women to meet gender requirements. In open leagues, there are no gender requirements.
Within Herold’s expansion plans is a mission to improve access to sport for children. The company has started a foundation called Keep Playing Kids and aims to connect adult mentors—including Sport & Social members—with kids who need sport support. “We know that if you play when you’re younger, you develop a love for it, and you’re more likely to play as an adult,” says Herold. “We want everyone to keep playing.”
This post was made possible due to the generosity of Startup Toronto.
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]]>Annabel Kalmar learned first-hand how hard it is for farmers to earn fair prices for their products. As a student of agriculture economics in the late 1990s, she harvested coffee in the fields of the Dominican Republic, interviewing farmers along the way. The experience sparked a passion for changemaking.
“I wanted to help farmers get access to a different way to market,” explains the German-born entrepreneur, who went on to work in microfinance with the World Bank, earn an MBA at the London School of Business, and work in the UK as a business strategist.
Recently, she pivoted to entrepreneurship as a means for changemaking. After moving to Toronto with her husband and three children in 2017, Kalmar launched Tea Rebellion. Her idea—two decades in the steeping—is to disrupt the way tea is traditionally marketed, traded, and consumed. By buying and selling single-source, direct-trade tea, her company creates economic opportunities for several female-led farms in developing countries, takes an active role in community building, and supports organic farming methods.
But Kalmar’s ambitions aren’t just altruistic. She grew up in Germany drinking loose-leaf black tea, but what she tasted of London tea culture failed to impress.
“I was always disappointed with what was in front of me,” says Kalmar, explaining that mass-produced teas are typically blended from multiple sources, then finely ground and packaged in bags. What ends up in the cup, she contends, is undrinkable without sugar and milk.
As a student of agriculture economics, Kalmar had seen how new trade models transformed chocolate, coffee, and wine. Educated consumers came to appreciate—and pay more for—flavours associated with particular regions, ensuring that growers of those premium products are fairly compensated.
“A lot of people learn about wine, but they know nothing about tea,” says Kalmar. “I wanted to bring that knowledge and appreciation of the origins to more tea drinkers.”
With Tea Rebellion, she intends to shake up the status quo. “I’m not just selling tea.”
Instead of participating in the commodity markets in tea-growing countries—many with roots in colonialism—Kalmar initially sought out fair-trade certified suppliers. Since her World Bank days, she knew the certification system could improve working conditions on farms by setting standards for fair pay and ethical treatment of producers. She reached out to Fair Trade Canada and began contacting farmers.
To her surprise, farmers were not saying, “Oh great, let’s do fair trade,” remembers Kalmar. “The farms I talked to said it’s too difficult. It creates additional costs. There is too much bureaucracy.”
Rather, the farmers—even some fair-trade certified producers—pointed to direct trade as a preferred alternative.
Both fair trade and direct trade have their places, according to Kalmar. They may create similar results in some cases, but they start with different goals.
Fair trade aims to improve the lives of farmers by setting ethical and environmental standards and creating transparency. Certification establishes minimum prices to ensure farmers are paid fairly. Incidentally, fair-trade standards may also improve the quality of the end product.
The goal of direct trade is to bring premium products to market. This model allows farmers to differentiate their products and charge prices that are typically higher than the minimums set in fair-trade systems. Higher prices will almost certainly improve the lives of farmers.
Kalmar dug into the research and discovered that many consumers are confused by a recent proliferation of certifications, which influenced her decision to change her strategy to direct trade.
Tea Rebellion now buys from six farms around the world: Japan, Indonesia, Taiwan, Nepal, Kenya, and Malawi. That allows Tea Rebellion to work with smaller, socially minded farms—not just those that are scaled to afford a fair-trade certification process.
The direct relationship means there is no middleman; Kalmar can visit frequently to influence the end product and the social impact of the farm.
In Nepal, Kalmar helped raise CAD$10,000 to build a primary school for the children of workers living on the tea farm. The school will save some 30 children from walking several hours over rough terrain to attend school, which improves attendance and frees parents to work consistently.
In Malawi, Kalmar chose to buy from a farm that provides health care infrastructure for the community surrounding the farm. In Japan, where chemical farming methods have historically been the norm, Tea Rebellion works with a pioneer of organic farming.
In three of the six farms she buys from, Kalmar has formed close partnerships with women in leadership positions, strengthening their positions in what has been a male-dominated business. She didn’t initially set out to work with female-led farms, but she found that in developing countries where language or gender created barriers, she was able to form better relationships with farms where women led.
For example, in Taiwan, Kalmar works with Ai Fang, one of two daughters involved at Jhentea, a family-owned farming operation. Ai Fang has worked in the family business since the age of 18, learning the art and science of tea growing, processing, packaging, and brewing from her mother.
According to Jhentea’s website, the company was founded by a man in the early 19th century, but a marital split in the mid-20th century left a woman in charge. She was the first female tea master in the region, and ever since the farm has been passed down to female family members. Ai Fang’s daughter, Valencia, who is now learning about tea, represents the next generation.
In Shizuoka, Japan, the Kinezuka family operates NaturaliTea, a cooperative of farmers. Though the farm’s formal leaders are men, Kalmar formed a direct business relationship with one of male founder’s two daughters, including Tamiko Kinezuka, who manages the farm’s tea processing and is responsible for quality control. That relationship has been beneficial to her career.
“In Japan, the tea industry is still overwhelmingly controlled by older men at all levels, from the farms to the markets,” Kinzuka explains. “Some of this is changing as younger generations take over, but the shift is very slow. Working with someone like Annabel allows us to demonstrate the unique contributions that we can make, and prove our commitment to rejuvenating a stagnating industry.”
Kalmar loves to share the stories of growers she works with, shining a spotlight on tea producers through Tea Rebellion’s packaging, website, and social media. When tea drinkers know more about growers, growing methods, and the country of origin, they can learn to appreciate the difference between the chocolatey undertone of a black tea from the high mountains of Nepal, and the bright and floral flavour of a black tea grown in Taiwan. Says Kalmar, “I want to help people develop their palates.”
By telling the tale behind each tea, Tea Rebellion also shares power with farmers. They can then develop recognizable brands, creating a rationale for higher prices, which injects more money and investment into their communities.
Kalmar has a vision that would connect tea growers and tea drinkers, as well as put Tea Rebellion on the tips of tongues everywhere. She would like to rival a global brand like Twinings as the “go-to” for tea drinkers, and source tea in many more tea-growing countries.
For now, Kalmar is bootstrapping her business growth, investing her own funds, working from home, and depending on interns to lend a hand. Her website lists 24 types of tea (you can order direct) and she sells to some 25 retailers, most of them in Toronto. Prices are similar to other premium brands, though competing North American labels such as Tease and David’s Tea don’t promise single-sourced products.
Kalmar’s goals include hiring a team and marketing her brand at tea festivals and conferences around the world. That will require a significant investment, and she’s gearing up to present her idea to investors.
But the ultimate goal is to build prosperous tea farms. “If I can build a sustainable business with Tea Rebellion, I can support these farms for the next 10, 20, 30 years,” she says. “And that’s really what I want.”
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