ChicoBag’s Bag Monster Bets on Eco-Conscious Consumers

The average American throws out 500 plastic bags a year. ChicoBag’s founder and president, Andy Keller, wants to cut that number to zero.

Six years ago, after a trip to a local dump strewn with plastic shopping bags, Keller, then unemployed, became convinced environmentally conscious shoppers would pay a premium for reusable bags that could be folded small enough to fit in a purse or hang on a belt. Despite lacking experience in manufacturing or distributing consumer products, Keller, a former software sales rep, launched a business to follow his hunch, charging $5,000 on his credit card and taking out an $80,000 line of credit on his home. By April 2005, he had patented the bag’s design, hired a Chinese manufacturer, and persuaded local retailers to carry his product. As sales picked up, he borrowed about $100,000 from his family, mostly to increase production.