TERRACYCLE NEWS
ELIMINATING THE IDEA OF WASTE®
Davos 2019: TerraCycle launches reusable and refillable packaging initiative for e-commerce
TerraCycle
pepsico
Nestle
Unilever
BIC
Include USA
Danone
P&G
Mondelez International
Loop
Mars Petcare
The Body Shop
Coca-Cola European Partners
Jacobs Douwe Egberts
Lesieur
Beiersdorf
People Against Dirty
Nature’s Path
Thousand Fell
Greenhouse
Grilliance
Burlap & Barrel Single Origin Spices
The Clorox Company
RB
Reinberger Nut Butter
CoZie
Preserve
24 Jan 2019 --- Recycling specialist TerraCycle has launched a first-of-its-kind reusable packaging home delivery service in partnership with a host of leading global brands. Taking place today in Davos at the World Economic Forum (WEF), the launch fuses e-commerce and sustainability in a way that a green-minded public has long been calling for. Consumers will be able to use durable, reusable or fully recyclable packaging made from materials such as alloys, glass and engineered plastics. Could this be a step closer to saying goodbye to single-use plastics?
Innovation in the booming e-commerce market must, arguably, go further than recyclability. Within the online groceries market alone, growth is occurring at a double-digit rate in the past years. However, the levels of waste in e-commerce packaging remain high, which coupled with extended fuel usage for personal deliveries, makes it a market with sustainability issues. Within the booming industry, only 2 percent of companies use reusable or returnable packaging models, according to Jan Berbee, Partner in the reusable packaging for e-commerce startup, RePack, tells PackagingInsights.
Global giant P&G will be introducing reusable and refillable packaging on some of its most popular products.
The freshly launched Loop is a global packaging and shopping circular solution which aims to offer an improved environmental performance compared to current e-commerce solutions. The basic premise of the initiative is that consumers will order their product, receive it via shipping then after use it will be picked up at their homes. The products are then cleaned, refilled and either reused or recycled. Available products range from detergent and toothbrushes to ice-cream and peanut butter. The platform will launch in Paris and New York in the spring of 2019.
Among the brands taking part are Procter & Gamble (P&G), Nestlé, PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop, Coca-Cola European Partners, Mondelēz International, Danone, Jacobs Douwe Egberts, Lesieur, BIC, Beiersdorf, RB, People Against Dirty, Nature’s Path, Thousand Fell, Greenhouse, Grilliance, Burlap & Barrel Single Origin Spices, Reinberger Nut Butter, CoZie and Preserve.
“As a response to the global challenge in managing waste and the opportunity to improve consumers’ experience, a group of committed global brands, retailers, infrastructure companies, along with the World Economic Forum, have come together to create a new way to more responsibly consume products,” says TerraCycle CEO Tom Szaky.
“Loop will not just eliminate the idea of packaging waste, but greatly improve the product experience and the convenience in how we shop. Through Loop, consumers can now responsibly consume products in specially designed durable, reusable or fully recyclable packaging made from materials like alloys, glass and engineered plastics. When a consumer returns the packaging, it is refilled, or the content is reused or recycled through groundbreaking technology.”
Personal care
Global giant P&G will be introducing reusable and refillable packaging on some of its most popular products. An array of the company’s brands, including Pantene, Tide and Oral-B, will be participating.
- Pantene is introducing a unique bottle made with lightweight, durable aluminum for its shampoo and conditioner.
- Tide's purclean plant-based laundry detergent will be available in a new durable bottle made from stainless steel with a simple twist-cap and easy pour spout.
- Cascade has developed a new ultra-durable packaging for Cascade ActionPacs which enable consumers to skip the prewash.
- Ariel and Febreze are participating with durable, refillable packaging that is also available in stores, testing a new direct-to-consumer refill and reuse model.
- Oral-B will test circular solutions for both its electric rechargeable and manual toothbrushes.
- Oral-B CLIC, a new iconic design for manual toothbrushes features a durable handle equipped with a unique mechanism that allows consumers to only exchange the brush head. The Loop platform will recycle used brush heads for both manual and electrical brushes.
- Pampers and Always will test collecting used hygiene products from consumer homes for further recycling using ground-breaking proprietary technology developed by Fater, a P&G and Angelini Group Joint Venture. The technology turns used absorbent hygiene products into secondary raw materials for higher value applications.
Big brands like Häagen-Dazs and Tide are testing reusable packaging
Major brands are testing out reusable packaging in an attempt to cut down on plastic waste.
Häagen-Dazs ice cream in a reusable metal container. Loop
Some of the world’s biggest companies, including Unilever, Nestlé, and PepsiCo, are rolling out reusable packaging for certain products in an attempt to phase out single-use plastics — and to alleviate their own reputations as polluters. This move, still in the planning stages, is a necessary step in shifting the conversation on reducing carbon emissions from a consumer focus to one that holds companies responsible.
Starting in May, Unilever’s Axe and Dove deodorants will come in refillable steel containers that are expected to last eight years. PepsiCo will start selling Tropicana orange juice in glass bottles and certain flavors of Quaker cereal in steel containers. Häagen-Dazs, owned by Nestlé, will come in refillable stainless steel tins. Procter & Gamble’s Pantene shampoo will come in aluminum bottles, and its Tide brand detergent will come in stainless steel containers.
The idea is to get consumers to cut back on the single-use plastics that have become an indispensable part of everyday life. Businesses and consumers have long concentrated on the third “R” in “reduce, reuse, recycle,” but with this initiative, companies are renewing focus on the first two. (By the way, an estimated 25 percent of all recyclable products end up in landfills anyway.) And instead of encouraging changes on the supply side — i.e., putting the onus for sustainable living on the consumer, which was a common theme in arguments about whether plastic straws should be banned — this move indicates that companies are starting to accept their outsize contribution to global carbon emissions.
This initiative, which is part of a partnership with the recycling company TerraCycle, according to a report by the Wall Street Journal, suggests that businesses are becoming increasingly uncomfortable with the suggestion that their practices contribute to global pollution. “I sometimes wonder if it’s a fair accusation that we’re in the branded litter business,” Unilever CEO Alan Jope reportedly said at a conference this week. Helping people cut down on plastics is certainly a good way of challenging that accusation, but there’s a catch. For now, the TerraCycle program is in a pilot phase. It will be available to 5,000 shoppers in Paris and New York City in May, according to the Journal’s report, and will expand to London later this year and to 10 additional cities, including Toronto and Tokyo, in 2020.
Here’s how it works: Consumers who get selected for the trial get the chance to order hundreds of products online. Those products arrive in a reusable tote bag with no extra packaging. Once the containers are empty, TerraCycle picks them up, cleans them, and delivers refilled containers back to customers.
“People talk about recyclability and reuse and say they’d like to be involved in helping the environment, so let’s see if it’s true,” Simon Lowden, the president of PepsiCo’s global snacks group, told the Journal. “You simply have to start somewhere to test it and see what the barriers are and who actually buys into the model,” David Blanchard, chief of research and development at Unilever, told the paper.
It’s not surprising that these companies would want to test out costly new initiatives before offering them to the general public. But given the urgency of climate change — an October 2018 report by the United Nations’ Intergovernmental Panel on Climate Change said we have just 12 years to make unprecedented changes if we want to stave off the worst effects of global warming — it’s worth asking whether a lack of consumer interest or a perceived lack of sufficient profits will prevent reusable products from being offered to a wider consumer base.
Nestlé, one of the companies participating in the TerraCycle initiative, is also planning to phase out many of its single-use plastic products and make all of its packaging recyclable by 2025. The company plans to completely eliminate certain “hard to recycle” plastics — like films, ice cream cone wrappers, and laminated paper cups — from its packaging. As Fast Company’s Mark Wilson pointed out, this isn’t going to come cheap — there’s “no immediate financial gain” to be made from going green. Companies can either absorb those costs, as Nestlé appears to be doing here, or pass them on to shoppers, which seems to be the case with the TerraCycle program.
According to the Journal’s report, the reusable versions will cost “roughly the same” as their single-use counterparts, but users will have to pay deposits of $1 to $10 per container. Shipping starts at approximately $20. Given a choice between cheaper single-use products and more expensive reusable ones, why wouldn’t a cash-strapped shopper go with the cheaper option? (The answer, of course, is existential guilt and fear of watching a climate catastrophe play out in their lifetime, but not everyone can afford to go green.) Megacorporations aren’t the only ones redesigning products to make them more eco-friendly. The period underwear company Thinx recently designed a reusable tampon applicator that retails for $60, and other startups are making reusable versions of common household products like plastic wrap and Ziploc bags.
In a world where consumers are often blamed for not being green enough — remember all the debates about whether banning plastic straws is actually good for the environment? — the TerraCycle program, despite being in its initial stages, suggests a future where the onus for changing consumption habits is placed on corporations rather than individuals.
Loop and big brands boldly reinvent waste-free packaging
TerraCycle
pepsico
Nestle
Unilever
BIC
Include USA
Danone
Procter & Gamble
Loop
Mars Petcare
The Clorox Co.
The Body Shop
Coca-Cola European Partners
Mondelēz Intl.
Jacobs Douwe Egberts
Pladis
Lesieur
Beiersdorf
People Against Dirty
Nature’s Path
Thousand Fell
Greenhouse
Grilliance
Burlap & Barrel Single Origin Spices
Cozie and Preserve; retailer Carrefour; primary logistics and transportation company UPS
Loop represents a seismic shift in product consumption to a circular economy model—for ecommerce and retail—with reusable, luxury packaging at its core.
The new Loop circular shopping platform—unveiled today at the World Economic Forum in Davos—enables consumers to buy their favorite products in durable, not disposable, packaging. Supported by top brand owners such as Nestlé, Coca Cola, Unilever and Procter & Gamble, Loop relies on premium and long-lasting packaging that is designed for multiple reuse before ultimately being recycled. Loop is a business venture of recycling/upcycling and waste management company TerraCycle. Taking an audacious first step in solving what he sees as a global waste crisis that has been growing more than half a century, TerraCycle founder and CEO Tom Szaky recreates the “21st century milkman” by collaborating with more than 20 partners that represent more than 40 brands, global retailers, and package delivery and waste management companies. On top of massive environmental benefits as determined by lifecycle assessments, Loop elevates the consumer’s experience with the brand and its high-end reusable packaging. The shopping platform will launch this spring in two pilot markets—New York and Paris—with additional expansion underway. In an exclusive interview (see video at the top of this page), Szaky… • Tells us how Loop was developed and why; • Identifies the root causes of waste; • Explains how Loop challenges the idea of who “owns” product packaging—from consumer back to the brand; • Outlines the price-value equation for consumers, brands and retailers; and • Shares Loop’s additional growth plans, including expansion in the United Kingdom and Japan. The 43-minute video above showcases several brand’s Loop packages (some throughout, but most starting at 40:31) and also identifies the 20+ partners involved so far. Nestlé is one of the initial partners. Tommy See Tho, packaging manager at the Nestlé Product Technology Center for Ice Cream, has been working on the project from the beginning and designed the Loop packaging for five Haagen-Dazs products: non-dairy options Chocolate Salted Fudge, Coconut Caramel and Mocha Cookie; as well as traditional favorites Vanilla and Strawberry. Why participate in Loop? See Tho explains, “Nestlé is working to reduce its environmental impact in all its business operations, while also finding innovative new ways to connect with and provide great products to consumers. As part of these efforts, Nestlé is proud to join TerraCycle as a founding partner of Loop.” It took packaging specialists from Nestlé’s Product Technology Center for Ice Cream in Bakersfield, CA, one year to revolutionize the Häagen-Dazs pint to bring the brand to the Loop platform with a reusable container. See Tho tells us that the package—etched with the familiar Häagen-Dazs brand tapestry and design—is made of stainless steel and features a twist-off top. The metal canister keeps ice cream cold much longer than traditional paper-based ice cream packaging. “When creating more sustainable packaging, we also wanted to prioritize the consumer experience,” See Tho says. “For example, when opened, the package is designed so ice cream melts more quickly at the top to provide the perfect texture for enjoyment. The container is double-walled which keeps the ice cream cold but also makes the outside of the canister pleasant to hold. The metal lid is easy to open—it juts out so there’s a higher surface area to hold and twist. And, we rounded the corners of the container to make it easy to scoop and enjoy.” The Häagen-Dazs double-wall stainless steel container keeps ice cream cold for a long time outside the freezer yet is comfortable to hold. See Tho’s colleague, Walter Peterson, who is packaging sustainability manager at Nestlé USA, will be speaking at WestPack 2019 (Feb. 5-7; Anaheim, CA) at 1:00 - 1:55 p.m. on Tues., Feb. 5. In his presentation “How Nestlé Is Innovating Its Way to 100% Recyclable or Reusable Packaging,” Peterson will talk about Loop and about the company’s ambitious goal of moving to 100% recyclable or reusable packaging by 2025. So how does Loop work? In addition to the high-level interview with Szaky in the video above, multiple people at TerraCycle provide more details about this ground-breaking development. Have consumers experienced this concept? If so, what was their reaction? TerraCycle: We’ve been running Consumer Insight Testing over the last year (12 months in Greater NYC and six months in Greater Paris). The majority of consumers who have tested Loop like the platform and name three major hooks in varying orders: convenience, premium products and no waste. Which brands are participating? TerraCycle: These are the initial partners. However, partners are continually being added. Procter & Gamble, Nestlé, PepsiCo, Unilever, Mars Petcare, The Clorox Co., The Body Shop, Coca-Cola European Partners, Mondelēz Intl., Danone, Jacobs Douwe Egberts, Pladis, Lesieur, BIC, Beiersdorf, People Against Dirty, Nature’s Path, Thousand Fell, Greenhouse, Grilliance, Burlap & Barrel Single Origin Spices, Cozie and Preserve; retailer Carrefour; primary logistics and transportation company UPS and sustainable resource management company Suez. Procter & Gamble has created reusable, refillable packaging for 11 of its most popular products as part of a new effort that aims to change the world’s reliance on single-use packaging and disposable waste. (Photo: Business Wire) How can other brands get involved? TerraCycle: Loop participants must apply and be accepted into the platform. Brands interested in getting involved are welcome to contact the Loop Business Development team. Please email Anthony.Rossi@Global CPGs embrace transformative Loop circular shopping platform
TerraCycle
pepsico
Nestle
Unilever
Include USA
Danone
Mondelez International
UPS
Procter & Gamble
Carrefour
Tesco
Loop
In late February at the World Economic Forum, in Davos, Switzerland, Tom Szaky, Founder and CEO of TerraCycle, Inc., unveiled what could be one of the most significant and disruptive advances in packaging to date. Along with a number of the world’s largest Consumer Packaged Goods companies and retailers, TerraCycle has created Loop™, a first-of-its-kind shopping platform that will enable consumers to responsibly consume products in customized, brand-specific, durable packaging that is collected, cleaned, refilled, and reused.
The platform will launch in France and in the northeastern U.S. this spring as a pilot, offering more than 300 products in reusable packaging from such heavy-hitters as Procter & Gamble, Nestlé, Unilever, PepsiCo, Mondelēz International, and Danone, to name a few, as well as from smaller companies. The products will be available through the Loop e-commerce site as well as through retail partners’ e-commerce sites and brick-and-mortar locations.
The Loop platform is designed to transform the relationship between consumers and packaging, with the consumer now borrowing the package from the brand owner, much like the milkman model. Through its circular system, Loop offers the convenience of single-use packaging while at the same time removing the responsibility from the consumer of disposing the empty packaging. It gets to the root of packaging waste, rather than trying to manage waste through recycling and other methods after it’s been created.
Loop is also proving to have an extraordinary effect on package design. “It’s not just about eliminating waste; it’s about enabling the future,” says Szaky. “What brands have really started to see is that this is a platform through which they can commercialize innovation in packaging that was never possible in a disposable package—it was not even conceivable.”
Metal containers for Häagen-Dazs ice cream that keep contents cold, toothbrushes with removable, replaceable heads from Oral B, and a stainless-steel Clorox package that keeps wipes wetter longer are just some of the innovations created for Loop. Enhancing the consumer experience, reimagined packaging for products such as Pantene, Seventh Generation, and Crest transform the products into premium, luxury items.
A vision for a world without waste
For 15 years, recycling company TerraCycle has promoted and advanced the idea of a world without waste. It offers a range of free programs for the collection and recycling of hard-to-recycle materials, creating new products from the waste. Its most recent project was to establish the world’s largest supply chain for collecting and recycling ocean plastics, which are used by P&G for its Head & Shoulders haircare product bottles and its Fairy dish soap containers, as well as for packaging for Unilever’s prestige REN Clean Skincare line.
While these efforts are critically important, Szaky says they are not enough to reach the goal of a world without waste. Hence, TerraCycle created Loop—a circular economy shopping platform whose time has come. “It was far less difficult than I thought it would be to get CPGs and retailers to invest in the platform,” he shares. “It’s like the world is ready for it.”
Szaky says he believes there were three factors that influenced the decision by CPGs to participate, even though it involved a complicated and expensive commitment. First was their trust in TerraCycle, built through longstanding relationships. “They knew we were not just a ‘fly-by-night’ operation,” he says.
Second was the packaging crisis brought on by the issue of ocean plastics—a topic that didn’t exist three or four years ago. “People always cared about waste, but it’s more of a crisis now,” Szaky says. “And companies at their board levels are declaring it as a crisis in a way that’s never been done. In addition, there’s also a lot of legislation in the pipeline around anti-disposability [of packaging].”
The third factor, as mentioned earlier, was brand owners’ realization of the functional and aesthetic innovation opportunities afforded by reusable packaging. “What packaging people love about this is that now it’s not a race to the bottom on a price per unit, which it sort of was before. It was always how to make the pack cheaper,” says Szaky. “With Loop, cost is not the primary question. The primary question is, how durable is it?”
Design for reuse
To enter Loop as a manufacturer, the first “rule,” Szaky explains, is that you must move to a reusable package—“that’s simply not negotiable,” he adds.
Each CPG partner is responsible for their own package design, aided by guidelines and best practices developed by TerraCycle and logistics partner UPS. Through testing procedures conducted at its Package Design and Test Lab in Addison, IL, UPS identified solutions to issues related to shipping primary packaging via e-commerce. TerraCycle enumerates some of these suggestions in a design brief it provides brand owner partners when they sign on to Loop.
What TerraCycle looks for in a finished package design is durability, cleanability, and a positive Life Cycle Analysis. “Those are the three things we watch for,” says Szaky. “But then everyone gets to do everything they could ever want to in a pack. You get a far greater range of design choices, because you’re not restricted to a tiny little price. So, a $1 package with 10 uses is 10 cents per use, but a $5 package with 100 uses is 5 cents per use. That’s actually pretty neat in the sense of being able to change the relationship with the economics of packaging.”
The goal for a Loop package is to be able to withstand 100-plus uses, which is not such a stretch if you consider how many times a consumer might refill a reusable water bottle. “Here’s the point,” says Szaky, “once you get to 100 uses, it’s actually not that hard to get into the thousands. It’s hard to know, because we haven’t been able to prove 10,000 uses. For now, we’re aiming for 100 or more uses for every container.”
The three most common types of materials being used for Loop packaging are, in order, stainless steel and aluminum, glass, and engineered plastics such as polycarbonate. So far, materials such as flexibles, disposable plastics, fibers, or leathers have not shown up in any Loop packaging.
Given that the aim of Loop is zero waste, the tote in which products are delivered and empty containers are returned is also reusable.
Consumer convenience
Another factor that makes Loop so timely is consumers’ growing acceptance and use of e-commerce for CPG products. Loop will have its own e-commerce sites—Loopstore.com in the U.S. and maboutiquelook.fr in France—and Loop products will also be available on some CPG and retail partner websites.
Retail partners such as Carrefour in France, Tesco in the U.K., and others will also be selling Loop products in their physical stores. In fact, Carrefour is so enthusiastic about the system it has put many of its private-label products into reusable packages.
In the case of products ordered through e-commerce, the “loop” begins when a consumer places an order online. Their products are then delivered to their doorstep in the reusable Loop tote. When they are done with a product, the consumer places the empty package in one of the totes and alerts Loop to pick it up. (Both products ordered through Loop as well as through its partners’ sites are collected by Loop.) For staple products the consumer wants replenished immediately, the pickup triggers a new shipment.
Consumers who purchase Loop products at a brick-and-mortar store can bring their empties directly back to the store.
The beauty of the program at end of use is that consumers don’t have to clean or sort the empties. “It’s a completely disposable experience,” says Szaky. Sorting and cleaning is done by TerraCycle, which not only has the technology for straightforward cleaning jobs (e.g., cleaning rigid containers), but is also developing a range of technologies to handle more complex packaging components such as trigger sprayers and pumps. The company plans to have a warehousing and cleaning facility in every region in which Loop products are sold.
With Loop, zero waste also means zero product waste. So when TerraCycle receives the containers for cleaning, it evaluates the leftover or used product to see if it can be recovered or recycled. Products are categorized as non-recoverable, as in the case of orange juice or window cleaner, or recoverable. “For recovery, there are two types of products,” Szaky explains. “The first is a product you can recover, but it would be unreasonable to reuse it, such as a razor blade or a toothbrush, which we then recycle. The other is a product, such as the casing of a pen, that it’s not unreasonable to reuse.”
The final stage of the loop is the return of empty, clean packages to brand owners for refilling. The loop is closed when consumers receive new products.
To ensure consumers return the empty packaging and the Loop totes, they pay a deposit for the items when they order the products. “This is key, since these are expensive packages,” says Szaky. “They are never owned by the consumer; the consumer borrows them. And, like anything you borrow, you put a deposit around it.”
When the consumer returns the package, they receive 100% of the deposit back—no matter the shape in which they return it. TerraCycle’s view is that the durability of the package is not the consumer’s responsibility; it’s the responsibility of those who made it.
Will Loop succeed?
There are many reasons Loop should succeed—and in a big way. Among them, the furor over disposable, single-use packaging, the ease of e-commerce, the enhanced consumer experience allowed through higher-quality packaging, and Loop’s appeal to CPGs that are pushing to meet their own aggressive sustainable packaging goals. But will it take off?
Szaky says signs are good. As more of the world’s largest CPGs join the platform, momentum is building, spurring others to join or be left behind. In just one week, he shares, SC Johnson with its Method and Ecover brands, global snacking company Pladis, and Reckitt Benckiser signed on. “And it wasn’t even a unique week,” he says.
Another sign boding well for Loop is the response it has received from the 25 families in New York and the 25 in Paris that have already trialed the platform. Szaky says TerraCycle learned from these trials that once consumers start receiving their products in reusable packaging, they start getting “allergic” to disposability. “The question is, what is the tipping point?” he questions. “Do 20 percent of the products in your life have to be durable for you to say, ‘Forget disposability, I’m done.’”
Compared with other strategies launched to reduce or eliminate packaging waste, such as “package-free” stores and self-dispensing systems, Loop celebrates packaging, enhancing its many functions, such as beauty, product protection, and convenience.
“Packaging isn’t evil,” declares Szaky. “Neither is the idea of plastic or metal or paper. The evil, I think, is spending a lot of effort creating something awesome and then using it once and throwing it away.”
TerraCycle's Bold Waste Reduction Idea
By now, everyone is aware that over-packaging is ruining the environment. But how to remedy the situation? Certainly FMCG companies don't want consumers to use fewer products, less often—that's a radical idea that would certainly work, but will certainly lead to lower sales and profits.
Instead, Some of the world's largest consumer-goods companies are trying to tackle the global plastic packaging problem by offering consumers an alternative to recycling. Today, at the World Economic Forum in Davos, Procter & Gamble, Nestlé, Pepsi and others are unveiling Loop, in which their products, like detergents and shampoos, would all be sold in reusable packaging. After using the products, customers put the empty containers in a Loop tote on their doorstep. The containers are then picked up by a delivery service, cleaned and refilled, then shipped back out to consumers. Details of this innovation will be announced today at the World Economic Forum in Davos, Switzerland.These FMCG giants are working with US waste recycling firm TerraCycle on the Loop project.
"There is no need to clean and dispose of the package. As consumers finish their products, they place the empty package into one of their Loop Totes. Loop will pick up directly from their home," TerraCycle said in a joint statement.
We assume that all these Loop advocates conducted LCA on the program. If Loop passed the test, it could be innovation with legs, er, wheels. At least it shines a brighter light on the packaging problem that plagues the planet.
KFC, Walmart Canada Latest to Target Plastic Use Reduction
TerraCycle
pepsico
Nestle
Unilever
Include USA
Danone
Mondelez International
Procter & Gamble
Loop
Coca-Cola European Partners
Plastic is a hot topic in Davos this week and more big-name companies are stepping up commitments to reducing plastic waste -- playing catch-up to other industry leaders.
Fast-food chicken chain KFC said Thursday that all plastic-based, consumer-facing packaging will be recoverable or reusable by 2025. Walmart Canada announced plans on Wednesday that include reducing plastic bag use by 2025 that will take about 1 billion bags out of circulation, and replacing single-use plastic straws with paper alternatives by 2020.
“This commitment represents a public acknowledgment of the obligation we have to address these serious issues” of environmental sustainability, KFC Chief Executive Officer Tony Lowings said in a statement.
Waste from plastic has become a flashpoint with environmentalists and consumers, and companies are reluctant to be seen as falling behind. Oreo maker Mondelez International Inc. and Nestle SA are among food giants that announced similar sustainability goals last year. KFC parent Yum! Brands Inc. previously said it will source all fiber-based packaging from certified or recycled sources by 2020, as a supporting partner of the NextGen Consortium. Starbucks Corp., McDonald’s Corp. and Coca-Cola Co. are also partners.
Walmart Canada, with 411 stores and more than 85,000 employees, announced additional goals, including a 2025 target to have 100 percent recyclable, reusable or compostable packaging for its own private brand products as part of a global commitment launched by The Ellen MacArthur Foundation in 2018. Thus far, more than 290 companies have signed on for the 2025 date.
‘Aspirational Goal’
“This is an aspirational goal when you think about it,” said Conrad MacKerron, senior vice president of As You Sow, a nonprofit group focused on shareholder advocacy. Still, publicly committing to such a target helps investors and consumers hold companies accountable, MacKerron said. There are also cities in the U.S. that have made zero-waste commitments, MacKerron said, citing San Francisco as an example. Nestle SA and PepsiCo Inc. are among some 25 consumer companies taking part in a program announced Thursday at the World Economic Forum in Davos that provides products in reusable packaging that can be returned for a refund. The “Loop” initiative, which refers to a theoretical circular economy where nothing is wasted, is led by New Jersey-based recycling company Terracycle Inc. KFC also said Thursday it made good on a promise that by the end of last year all chicken purchased would be raised without antibiotics important to human medicine. That initiative got underway in 2017 after pressure from shareholders. Other fast-food chains began phasing out chicken with antibiotics years earlier. Chick-fil-A Inc. began in 2014, Subway eliminated it in 2016 and Taco Bell, also owned by Yum! Brands, reached the goal in 2017. Still, KFC helped tip the chicken industry in an important way, according to Lena Brook, director of food campaigns at the Natural Resources Defense Council. “KFC proved that even in perhaps a more complex reality that change is possible if you commit to it,” Brook said.Some Big Brands Are Turning to Reusable Containers to Reduce Plastic Waste
Big companies are testing a return to the “milkman model”—that is, addressing waste by shifting to reusable containers.
Twenty-five of the world’s biggest brands said they will make the change this summer, including Procter & Gamble Co., Nestlé SA, PepsiCo Inc. and Unilever PLC, the Wall Street Journal reported. These companies will use glass, steel, and other reusable containers that can be returned and cleaned to be used again.
The participating companies see it as a way to reduce waste—and there’s a lot of it. According to data reported by the Earth Day Network, 9.1 billion tons of plastic has been produced since the 1950s when it was first introduced, and most of it still exists in some form.
“From a philosophical point of view, we have got to lean in and learn about this stuff,” Simon Lowden, the marketing head for PepsiCo’s snacks business told the Journal. “People talk about recyclability and reuse and say they’d like to be involved in helping the environment, so let’s see if it’s true.”
Business leaders in Davos this week for the World Economic Forum also discussed the issue of plastic waste. A new shopping platform, called Loop announced at the forum on Thursday that it would start delivering products like shampoo and laundry detergent for manufacturers in reusable containers, doing away with the disposable plastic containers, The Associated Press reported.
Brands partnering with Loop include Nestle, Procter & Gamble, PepsiCo, and others.
“Our goal is that by 2030, all of our packaging will be reusable or recyclable,” Virginie Helias, the vice president, and chief sustainability officer at Procter & Gamble, told the AP.
Loop will start its offer with 300 products, with plans to expand down the line. Products include Pantene shampoo, which would be delivered in an aluminum pump container, and Haagen-Dazs Ice Cream, which would come in a stainless steel tub.
“We have invented a process whereby we deconstruct PET plastic and polyester fiber into it base ingredients and then repolymerize them back into virgin-quality plastic. A great example would be to take an old used polyester carpet or sweater and turn that into a water bottle for one of our many clients such as Coca Cola or Pepsi-Cola,” Daniel Solomita, Loop founder and CEO, said in a statement to Fortune.
While the company could help decrease garbage waste, it would also mean more delivery trucks, according to Tom Szaky, the CEO of the recycling company TerraCycle, which is behind Loop.
In 2016, transportation, including cars, trucks, commercial aircraft, and railroads represented 28% of U.S. greenhouse gas emissions, according to the Environmental Protection Agency. Light-duty vehicles accounted for 60% of the total transportation-related emissions, followed by medium- and heavy-duty trucks at 23%.
TerraCycle promises 'future of consumption' with Loop reuse system
TerraCycle
pepsico
Nestle
Unilever
Include USA
Mondelez International
UPS
Procter & Gamble
Suez
Tesco
Loop
Mars Petcare
The Body Shop
Coca-Cola European Partners
The Clorox Company
Danon
Dozens of major brands have partnered to launch this ambitious new packaging model in the U.S. and France. TerraCycle and Suez break down how it could change the waste equation in the coming decades.
After years of quiet planning and rigorous testing, TerraCycle has unveiled what it believes will be a revolutionary change in packaging: Loop. Debuted at the World Economic Forum in Davos, Switzerland this week, the new shopping system is the first of its kind to offer hundreds of name brand products in reusable and refillable packaging.
In addition, many products traditionally viewed as inefficient to process — pens, diapers, razor blades — will now be recycled for the first time in many areas. This builds on the New Jersey company's foundational business of finding value in what is considered unrecyclable — but on an entirely new level.
Designed to be more attractive and functional than common versions, these new goods will be available on a pilot basis in the U.S. and France, starting this spring. With the convenience of delivery and pick-up service via online ordering — and eventually at retail stores — Loop is being billed as a rare opportunity to wean consumers off single-use disposability.
"The thesis of Loop is we want to bring about the future of consumption, and the tenet of that would be the idea that waste doesn't exist," said TerraCycle CEO Tom Szaky in an interview with Waste Dive.
The pilot program is expected to launch this spring in the Paris metro area and the New York City area – including parts of New Jersey and Pennsylvania. French retailer Carrefour has signed on as a partner, and a U.S. retailer is in the works.
While the initial list of participating companies have had to make upfront investments in new packaging design (though on a limited scale to start), the ability to meet both consumer demands and sustainability targets is seen as worth the price of admission.
A spokesperson for the French unit of Coca-Cola European Partner (CCEP) told Waste Dive it sees a way to expand existing refillable glass bottle sales and "bring this unique experience directly to consumers at home in line with a no waste vision and our sustainability strategy." Loop is considered a clear fit for CCEP's "This Is Forward" plan — part of Coca-Cola's broader "World Without Waste" initiative to ensure all packaging is recyclable and fully recovered by 2025.
Other major partners — including Procter & Gamble, Nestlé, PepsiCo, Unilever and Mondelēz International — have set their own future sustainability targets or made financial commitments to recycling initiatives in recent years.
While these pledges have often been met with skepticism from major environmental groups, it's possible this Loop announcement may be perceived differently. Szaky noted that eight of the 10 companies on a 2018 Greenpeace list of the most commonly found brands in ocean clean-ups are Loop partners — a potential signal of their willingness to take more ownership over plastic pollution. Greenpeace itself is also participating in the Davos launch event.
A new consumer culture?
Procter & Gamble and Nestlé (both founding investors) — along with PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop, Coca-Cola European Partners, Mondelēz International and Danone — are among the initial partners that have designed new packaging for Loop. Achieving this level of participation from the companies behind so many household brands was seen as essential for consumer buy-in. According to Szaky, a key component is elevating the experience of reusable shopping (beyond its current niche version of bringing mason jars and cloth bags to a local bulk store) through added convenience and an element of "luxury." Prices are expected to be comparable to current options aside from a refundable deposit, and many containers are made from glass, stainless steel or durable plastic. Some, such as a new Häagen-Dazs container, will even keep products frozen or fresh for longer. As envisioned, this system will start out as a delivery/pick-up service — something Szaky has previously described as akin to the old "milkman" model. UPS will deliver the products in reusable shipping bags, and once consumers are done, transport the bags to a regional cleaning facility, where containers will be sanitized and products recycled. This is said to be the first time feminine care products and diapers will be recycled in France, and the first time for razor blades in the U.S. "There are some big firsts baked into Loop, and that's really using a lot of TerraCycle's original competency. If it's reasonable to recover and reasonable to reuse, then it must be reused, is the rule," said Szaky.
Get waste news like this in your inbox daily. Subscribe to Waste Dive:
A world without "garbage"
Loop might be an easier fit for regulatory trends in European countries that encourage more recycling (though it will be exempt from extended producer responsibility rules), but it could prove a greater shock to the U.S. system if scaled successfully. The most directly affected parties will be packaging manufacturers — glass, for instance, might see more demand, while single-use plastic demand could decline. The potential decrease in tonnage for both waste and recycling collections also raises questions of what Loop will mean for the U.S. waste and recycling industry itself. "I'd say at the very beginning, if I was working over at Republic or Waste Management or even Waste Connections (Waste Connections owns a quarter of our Canadian company) I think they wouldn't even see this as a threat because it would seem super small compared to what is in the dumpster," said Szaky. "The real question is 10, 20, 30 years from now, if durable, reusable, repairable, that type of movement really hits scale — and I think Loop could be one of the vehicles that accomplish that — then you may see an effect on the loads, and unless you get involved in that, then you would see it competitively." Last year, Waste Connections CEO Ron Mittelstaedt told Waste Dive he believes "reuse is the pathway that will help diversion by non-generation" in future decades, although he didn't directly mention TerraCycle. No U.S. waste and recycling industry companies have invested in Loop to date. Suez, the France multinational that has a stake in TerraCycle's European operations, invested 4% in Loop. The company also partnered with Procter & Gamble and TerraCycle to launch a shampoo bottle made of ocean plastic at Davos in 2017. Jean-Marc Boursier, senior executive vice president of recycling and recovery at Suez's Northern Europe division, feels the concept fits into his company's view that increasing waste volumes can't be the primary corporate growth metric. According to Boursier, rising GDP, industrial activity and population growth should all be considered signs of a healthy economy — but that doesn't necessarily have to translate to more waste. "The question is, can we optimize waste production, and do we need to still dump everything into a very large landfill?" said Boursier, referring to the U.S. market. "Or, shall we consider waste as not only a nuisance, but as a product that we could transform into something more valuable?" Boursier declined to offer any direct advice on how U.S. service providers that still derive a significant portion of their revenue from landfills could adapt to such a model. Speaking about companies in general, he offered this outlook: "Either you enter — if you have an industrial company — into this world of circular economy with a negative view, where you believe that it is a constraint and it might have some increased costs at first glance. In which case you will be very reluctant to change the world — and we need to change our way if we are going to protect the planet," he said. "Or you take the lead and you try to differentiate yourself positively." Boursier sees Loop as a way for big brands to do that, adding that while it's too soon to know the full potential, "I believe it can change the world."Next steps
After the first two pilots launch this spring, Loop is expected to expand into the London area in late 2019 with retailer Tesco. Toronto, California and Tokyo — in conjunction with the 2020 Summer Olympics — are on tap for next year. According to Bloomberg, the company has invested an estimated $10 million in this concept. Asked how he sees this growing as part of TerraCycle's business, Szaky noted that the timeframe might be long, but the change will be apparent when the company's market share in a given area shifts away recycling disposable products to durable ones. Based on life-cycle assessments, consumers will need to reorder products upward of five times for the environmental effects to even out. Watching how many repeat participants Loop can attract, and at what scale, will be key to tracking its progress. In the meantime, Szaky is also still looking for acquisition opportunities in specialized waste streams — such as the 2018 purchase of light bulb recycler Air Cycle — and remains open to a scenario in which TerraCycle's core business of recycling challenging materials shrinks as Loop grows. When asked if the long-term plan was to still file for an IPO once the company approached $70 million in revenue, Szaky replied: "It absolutely is, and Loop just helps us get there faster."Volta às aulas traz lições de consumo consciente
As férias estão acabando e muitas famílias se preparam para comprar material escolar, além de novos uniformes, livros, apostilas, mochilas, calçados… E o que é feito com todos esses itens usados? Ficam encostados no armário ou vão para o lixo, gerando mais volume nos aterros?Várias dicas podem contribuir para que todo o material seja aproveitado ao máximo e resultando em mínimo de resíduos.