This as-told-to essay is based on a conversation with Michael Stausholm, founder and CEO of SproutWorld. It has been edited for length and clarity.
Back in 2013, I saw a Kickstarter campaign for a plantable pencil. Three young students at the Massachusetts Institute of Technology (MIT) had invented the pencil in their class. The idea was to use the writing instrument, then plant it and watch herbs and vegetables grow from seeds encased in the pencil.
I thought this was brilliant. At the time, I was consulting with major companies, including Nike and Walmart, about sustainability efforts. I knew people had a really hard time understanding what sustainability was.
Yet, this pencil was a perfect illustration. It was a useful item, made from all-natural materials. It was designed with the end in mind: when it was no longer useful, users could quite literally give it new life. I wanted to integrate the pencil into my work.
I licensed limited rights, and then bought global rights
I reached out to the students and licensed their intellectual property to sell the pencil in Denmark, where I live. Just one month later, I obtained the rights for all of Europe and started my company, SproutWorld.
I had been interested in the Sprout pencil as a symbol, but almost as soon as I began selling it, I saw the huge commercial potential. That first summer, we sold 50,000 pencils. I had no idea how much space that inventory would take up. I had pencils all over my house, and the neighborhood kids were helping to pack them up.
Within a year, I reached out to the MIT students again, asking to purchase the global rights for the pencil. They were robotics students who dreamed of building robots, not pencils. I can’t share the specifics of the deal, but I was very happy with it and so were they, which tells me it was fair for both sides.
Thirteen years later, I still keep in touch with them, and they’re proud of how their classroom project has grown.
I was ready to turn down a major deal to project the brand
I thought schools would love the pencils, but I realized they weren’t viable customers because of their small budgets. Soon, corporations began reaching out about making custom-branded pencils. That side of the business flourished. Even today, our sales are about 80% commercial, and 20% direct to consumers.
The first major global brand to reach out to me was Ikea. They wanted about 50,000 pencils for an anniversary celebration at their Italian stores. There was just one problem: they didn’t want the SproutWorld logo on the pencil — they only wanted Ikea branding.
I’ve lived and worked in Asia, and I understood that as soon as I compromised on our branding, it would be easier for other companies in China and India to make copycat pencils. I wanted to do business with Ikea, but I had to decline. They asked me if I was sure, and I said yes. I dared to say no to a corporate giant in order to protect the company’s future.
Ikea came back, and we later made branded pencils for Michelle Obama
A couple of months later, Ikea reached back out — they wanted the pencils, and were willing to include our SproutWorld branding. That was a major milestone for the company.
Then, in 2018, an agency from New York City contacted me about using the pencils for one of their artists. I saw they represented major musicians, so I was a little disappointed when they said the work was for an author. However, we then obtained the purchase and sales agreement, which was signed by Michelle Obama. Working with the first lady, with her emphasis on healthy eating, was a perfect fit for our brand.
Today, we’ve sold more than 85 million Spout pencils around the world. We even make eyeliner pencils. Last year, we profited about $1.7 million across the globe.
The symbolism of the pencil is still important to me
I’m thrilled with the commercial success of the Sprout pencils. And still, the symbolism of the product is incredibly important to me.
Sustainability is a hard concept to get your head around. The pencil is an entry way: if you can choose a sustainable, all-natural pencil, what other changes can you make? No one can be 100% sustainable these days, but even if individuals and businesses change 20% of their behavior, that would make a difference.
Our motto is “from small things, big things grow.” That’s what drives us as a company: inspiring global change, one pencil at a time.
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