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CPGs Retool to Get Into the Loop

While there’s no scientific evidence to support this claim, there’s a widely shared consensus that most people eat ice cream directly out of the container. While a seemingly unimportant detail in the production of this popular dessert, for Nestlé, it was one of the most critical considerations as it planned out a new, radical design for its Häagen-Dazs ice cream brand. In January of 2019, Nestlé announced a partnership with TerraCycle, a global recycling organization that was rolling out a first-of-its-kind home delivery service called Loop. TerraCycle, known for its mission to eliminate waste by creating new products from the collection of hard-to-recycle materials, has been around for two decades. Last year, during the World Economic Forum in Davos, Switzerland, TerraCycle founder Tom Szaky unveiled Loop, a shopping platform that will enable people to consume products in customized, brand-specific, durable packaging that is collected, cleaned, and refilled. As the world shines a spotlight on sustainability initiatives that factor in recycling single-use packaging, Loop takes the eco-friendly, green model to the next level by introducing reusable containers. And some of the biggest food and beverage and consumer package goods (CPG) companies including Unilever, Procter & Gamble, Clorox, Mars, Coca-Cola, PepsiCo, Nestlé, and more, were onboard for the pilot program that launched last year. For its part, Nestlé joined Loop as it committed to expanding its global efforts to develop new packaging designs that minimize the impact on the environment, noting that by 2025 the company plans to make 100% of its packaging recyclable or reusable. As part of the Loop pilot program, Häagen-Dazs ice cream was delivered in a reusable, stainless-steel, double-walled ice cream container, which keeps product fresh and cold while maintaining the pint at a comfortable temperature for the person eating the ice cream straight from the container. The design also enables the ice cream to melt quicker at the top, and its rounded edges means the last spoonful doesn’t get stuck in the corners of the container. “The package design process was a critical part of the entire Loop process,” said Steve Yeh, a project manager at Häagen-Dazs. “It’s not just about making a reusable container, it’s also about creating a high-touch consumer experience.” According to Yeh, the Häagen-Dazs package went through a total of 15 iterations before it finally launched. “Nestlé committed major resources to design and develop the original package.” The team also worked closely with Loop on developing breakthrough cooling technology for the Loop Tote, which the ice cream container is delivered in via UPS. Terracycle officials admit there is a cost to manufacturing partners committing to Loop—from the investment in new durable packaging to the design of the product to the time spent understanding how to handle new packaging lines and how to scale to meet demand. But the reality today is that sustainability efforts are here to stay. And any new endeavor is going to require an upfront investment. According to a new business intelligence report from PMMI, the Association for Packaging and Processing Technologies (and Automation World parent company), packaging sustainability has moved beyond a trend and is now a global shift. Released in March 2020, the report, “Packaging Sustainability: A Changing Landscape,” reveals how sustainable packaging initiatives at CPGs are affecting machines, materials, and packaging formats. The report states that the global sustainable packaging market reported that total value of revenue was estimated at $220 billion in 2018 and is predicted to reach $280 billion in 2025, growing at a compound annual growth rate of approximately 6%. The report is based on information collected from 100 sources and 60 interviews. The majority of the CPGs interviewed are looking to switch to lighter weight, recyclable, and sustainable materials to reduce waste. About 36% of the CPGs interviewed are exploring the circular model of reuse/return/refill. The circular economy For decades consumers have been participating in the “throwaway lifestyle,” where single-use products are disposed of resulting in massive amounts of waste. According to the Environmental Protection Agency, the total generation of municipal solid waste (MSW) in 2017 was 267.8 million tons or 4.51 pounds per person per day. Of the MSW generated, more than 94 million tons of MSW were recycled and composted, equivalent to a 35.2% recycling and composting rate. In other words, we don’t have a good track record for recycling. TerraCycle thought there must be another way—which is Loop. “The genesis of Loop is a tighter, closed-loop system that has manufacturers taking back ownership of their packaging,” said Ben Weir, Loops’ business development manager for North America. “It’s bringing about the reusability of packaging in something that is durable and long-lasting and that can be cleaned and used hundreds of times.” It’s not a new concept, but rather a throwback to the milkman model in which consumers returned the glass containers. What’s new is the aesthetic benefits that will drive consumer brand perception—and, while not obvious at first—it is a better economic model for the manufacturer. “The concept of a circular economy is an economic model, not a sustainability framework,” said Tim Debus, president and CEO of the Reusable Packaging Association (RPA). “By decoupling growth from the consumption of finite resources, maintaining product values at their highest, and building market resilience to source material disruptions. It is estimated that the circular economy offers $4.5 trillion of value from new growth and innovation opportunities, and the world today is only 8.6% circular.” There is an enormous opportunity, but manufacturers may hesitate due to the upfront investment related to packaging design and retooling machinery. According to Nestlé’s Yeh, the company used its Bakersfield, Calif., facility to ramp up its production of ice cream in reusable and durable containers for the Loop pilot project. “We decided to retrofit an existing line to support the platform versus investing in a new line. It was not an easy changeover and required some reengineering. Some of the changes involved installing more modern equipment including better code daters and more modern metal detection.” Yeh said they also incorporated improvements to existing processes, which requires additional staff to handle the containers. “Once the platform expands, we would then visit a fully automated system.”
 
Automating the Loop The Loop circular platform works like this: Consumers buy a product online through the Loop store or at a retail location—Nestlé will offer Loop containers in more than 200 Häagen-Dazs shops across the U.S. this year, and Kroger and Walgreens have partnered with Loop to offer products in retail stores later this year. The customer pays a small, fully refundable one-time deposit to “borrow” the package. The delivery is then scheduled online when the customer checks out and pays for shipping to have the Loop Tote filled with product delivered, via UPS, to the customer’s doorstep. When the containers are empty, the consumer puts it back into the Loop Tote and schedules a pick-up. The containers are sent to a Loop facility to be cleaned using state-of-the art cleaning technology and are then sent back to the manufacturer to be refilled. If a consumer purchases ice cream through the Loop subscription, for example, Nestlé fills the sanitized steel container in its Bakersfield, Calif., facility and ships it back to TerraCycle to fulfill the e-commerce orders. Loop is operating the entire supply chain to ease the burden on partners, Weir said, but right now the circular Loop is a largely manual process. “There is tremendous opportunity for technology advancements to be made whether it is IoT (Internet of Things) or [other] levels of traceability in the system, there is definitely opportunity there,” he said. RPA’s Debus agreed, noting that the ability to put some kind of tracking technology on an individual package could become a vehicle for inventory management (where the product is), predictive analytics (when the container will come back), and monitoring for quality control, traceability, and recall capabilities. A lot of the tracking technology available today, such as RFID tags, are outfitted on large pallets or containers used in transporting products, but there are new offerings available now that provide real-time visibility of returnable assets without building out an RFID infrastructure. Roambee, for example, provides an “infrastructure-less sensing platform,” called the Honeycomb IoT Application Programming Interface (API) Platform, that uses Bluetooth, a cellular network, or ultra-low power radios to send data directly to the cloud where it can be analyzed. Of course, it may not make sense to equip every container of Häagen-Dazs with a sensor, and that doesn’t have to happen. “We don’t do 100% tagging, but we do 100% extrapolation of data,” said Vidya Subramanian, Roambee co-founder and vice president of products, noting that it does not have to be a sensor. The tracking method could be as simple as a QR code. “Location helps derive context. If it’s at a cleaning facility you can extrapolate that location to action, like it is available for filling. We take location and assign context to it.” The Honeycomb platform does three things: drive compliance of expected action, drive performance in terms of velocity and movement, and keeps the brand secure—making sure that the product has not been compromised in the chain of custody. Preparing the packaging line Of course, before CPGs can even think about tracking containers, they must first think about switching over lines to accommodate new kinds of packaging—be it durable goods or light-weight materials. According to Rich Carpenter, general manager of product development at Emerson Automation Solutions, three things have to come together to enable trouble-free line changeovers. “The manufacturer has to buy in to modular manufacturing and demand it from their suppliers. The control suppliers have to embrace plug-and-play technology so that when the system arrives on site it can easily plug into whatever automation is there be it PLC [programmable logic controller], SCADA [supervisory control and data acquisition], or DCS [distributed control system]. And the OEM has to make equipment in a way that is more reconfigurable and easier to do product changeovers so as needs change the equipment can adapt to it.”
These things are starting to converge, and, as PMMI’s Packaging Sustainability report points out, there is a real opportunity for machine builders to be proactive now to help manufacturers meet their sustainability packaging goals. Loop is one option for manufacturers trying to make good on sustainability promises. And it seems to be catching on. “We’ve moved from 25 global brands to 150 global brands in a year’s time,” Weir said. “And the idea of an elevated offering is resonating with the consumer.” Manufacturers, too, are thinking about how Loop can be applied upstream, as well. “Working with TerraCycle has challenged our way of thinking across the board,” Nestlé’s Yeh said. “We are currently exploring new avenues to reduce our own single-use packaging across our supply chain. For example, we’re working more closely with our suppliers to receive our ice cream ingredients in reusable containers.”

Reusable CPG Packaging Platform Loop Expands Nationwide

In the midst of the COVID-19 pandemic, many high-profile sustainability initiatives have taken a back seat to single-use packaging, with many grocery stores banning reusable bags and Starbucks no longer accepting refillable mugs. Despite this, Loop is going all in on reusable packaging, launching its waste-free CPG delivery platform nationwide through retailers Walgreens and Kroger with heavyweight brand partners including PepsiCo, Nestlé and Unilever. Loop, which launched a pilot last spring in New York and Paris, sells products like Nature’s Path granola and Haagen Dazs ice cream, with products from beverage brands like Chameleon Cold Brew and Tropicana currently in development. It also offers household and personal care items from companies like Procter & Gamble and The Clorox Company. The products are offered in reusable jars and containers delivered to consumers in a reusable tote, and when the containers are empty, consumers pack them up in the tote and schedule a pickup with partner UPS, who sends them to be cleaned and sterilized. If consumers have a subscription (about 30% of Loop users do), returning a container triggers the purchase of a new item to be sent. Non-subscribers put down a small deposit on the container and get it back when it’s returned. “Loop tries as best as it can to emulate the convenience of disposability to make it feel like a disposable system,” said Loop CEO Tom Szaky, who is also CEO of parent company TerraCycle. The worries surrounding reusability that have arisen amidst the COVID-19 pandemic haven’t seemed to apply to Loop, said Szaky, though they have been experiencing similar supply chain backups as other food and beverage companies. Though the nationwide online launch with Walgreens and Kroger was already in the works, it’s actually been accelerated to early this summer as more consumers have shifted to purchasing products online. “It’s not that single use is safe or unsafe, it’s not like reusable is safe or unsafe, it’s how you deploy those ideas that makes it safe or unsafe,” he said. “It’s the systems behind it that govern safety.” TerraCycle’s larger mission is to “eliminate the idea of waste,” said Szaky, through collecting and recycling materials that are not traditionally recyclable, like toothbrushes and candy wrappers, and also integrating waste back into products, like using ocean plastic in a Head & Shoulders bottle. With Loop, Szaky has taken the goal of waste elimination one step further, starting a division that “tries to solve waste without it ever occurring.” The root cause of waste is using things once, but single-use packaging hasn’t always been the norm, said Szaky, with milk bottles delivered by a milkman being a prime example. In fact, it only rose to prominence in the mid-1900s as packaging moved from being the property of the manufacturer to property of the consumer. “Do you want to own a coffee cup when there’s no coffee in it, or own a toothpaste tube when there’s no toothpaste in it?” said Szaky. “Why should we?” Owning the packaging comes at the price of the consumer, and as packaging is made cheaper, it’s usually made less recyclable. To address this problem, Loop partners with CPG companies to create reusable versions of their products that lower their carbon footprint, in a concept that Szaky said is “sort of like the idea of organic but instead of caring about farming practices, we care about reusability.” According to Szaky, brands are motivated to join Loop for two reasons: they get to innovate in ways they never have before, and they’re able to upgrade their sustainability. Once brands partner with Loop (and pay an onboarding fee), the company works with them to support the creation of sustainable packaging, like stainless steel ice cream containers and glass jars for beverages and nut butter. “Loop provides a much-needed innovation platform, challenging companies to take a fresh look at our value chains and integrate reusable product packaging as part of our efforts to waste-reduction,” said Laurent Freixe, Nestlé CEO for Zone Americas, in a press statement. “Nestlé is proud to be a founding investor and partner of Loop with the debut in the U.S of the Häagen-Dazs reusable container. It’s a critical part of our commitment to work with consumers to protect our planet for future generations.” Because new product development takes time, it can take from one to two years from the time brands sign on to the platform to actually begin shipping product to consumers. Szaky said of the 400 brands that have signed on, about 100 are currently shipping within the Loop system and the rest are in various stages of development. Partners like PepsiCo’s Tropicana orange juice, Purely Elizabeth granola, oatmeal and bars, Canadian brand Greenhouse’s kombucha and Nestle’s Chameleon Cold Brew are still in development. Retailers like Walgreens and Kroger are first launching Loop stores digitally, offering a selection of Loop products on their respective websites, before brick-and-mortar rollouts this fall where Loop will have its own section in the stores. Loop will also be rolling out in the United Kingdom, Canada, Germany and Japan. The company has also created its own private label brand, Puretto, to test consumer interest. Puretto items, which include products like cheddar crackers, pretzels and bagel chips, are usually sold for six to 12 months, long enough to show proof of concept, and indicate that a national brand is considering developing a product for the category. While individual companies, not Loop, ultimately set the price for items, Szaky said prices are typically kept close to that of the original product. In a time when certain products like baking ingredients or cleaning wipes are seeing online surges, there hasn’t been a push for one particular item on Loop. According to Szaky, products typically don’t perform “better or worse” on the platform. “If you buy a certain ecosystem of products and you like the idea of reusable, you’re buying that same ecosystem of products, but now in reusable,” he said.

Plastic Bags Are Making a Comeback. Will It Last?

Back in vogue. After decades of bitter fights, environmentalists seemed to be winning the war against single-use plastics in recent years, with cities around the world banning or taxing them. Then the coronavirus arrived, raising fears that reusable goods might lead to infections. The impact has been swift. From Maine to Hawaii, plastic-bag bans have been suspended or postponed. In San Francisco, reusable shopping bags — once totems of the city's vibrant commitment to sustainability — have simply been outlawed. These reversals have sparked deep concern among activists. Some fear the bans will never be reinstated; others that reusable products may be permanently tainted as “unsafe.” The good news is that activists aren’t the only ones demanding more sustainable packaging these days. So are consumers — and some of the world's biggest corporations are paying attention. Campaigns against consumer plastics date roughly to the discovery of the Pacific garbage patch in 1988. The environmental movement was soon galvanized, and single-use plastics — especially grocery bags and straws — became a focus of global activism. Much of this was misdirected. According to the Environmental Protection Agency, plastic bags and wraps amounted to only about 0.3% of all the waste generated by homes and businesses in 2010. By comparison, containers and packaging make up about 30%. Nonetheless, the proliferation of ocean plastic has worried consumers well beyond San Francisco. Last year, a survey of 6,000 people in 11 countries found that 77% perceived plastics to be the "least environmentally-friendly packaging material.” Perhaps unsurprisingly, 72% said they're buying more environmentally friendly products than they were five years ago, and 83% thought it was important for companies to design products that can be reused or recycled. Those shifting perceptions haven’t gone unnoticed by consumer brands. Over the past decade, some of the biggest have adopted ambitious sustainability agendas. In 2017, Apple Inc. rolled out an aggressive strategy to embrace sustainable paper and cardboard, which resulted in a 30% reduction in plastic use in iPhone 7 packaging. The next year, nearly 300 global organizations, including companies such as Nestle SA, Mondelez International Inc. and Colgate-Palmolive Co., pledged to eliminate unnecessary plastic packaging entirely. Some of those commitments may not amount to much. But the broader trend is unmistakable. For example, last May, 5,000 U.S. households gained access to a zero-waste e-commerce site called Loop. It offers brand-name products packaged in custom-designed glass and metal containers, which the company will deliver to your doorstep in reusable tote bags. Once you’re done with them, Loop will collect all the packaging for washing and refilling. Tom Szaky, the chief executive officer of TerraCycle, the company behind the site, told me that the experience isn't all that different from throwing stuff out; it asks almost nothing of the consumer. Loop isn’t making much money to start. But its animating idea — that reuse should be as easy as throwing something away — is powerful enough that some very big consumer-goods companies are now designing packaging specifically for the site. Want Clorox wipes delivered in a reusable metal container? Loop has them. Want the same experience with Haagen-Dazs ice cream or Pantene shampoo? Loop has those too, along with products from 400 other brands. It also has a waiting list of would-be shoppers that's about "100,000 long," Szaky says. Later this year, the company will start offering pick-up-and-return services at retail outlets around the world. "Manufacturers are promising recyclability and reusability," Szaky told me during a Zoom session, "and we're the easiest way to do it." Loop may or may not be successful in the long-term. But the fact is, consumers everywhere are expressing a clear preference for sustainability — and brands are increasingly responsive. Whatever happens with plastic-bag bans, it’s highly likely that this dynamic will ensure that single-use plastics continue to fade from the marketplace. The coronavirus, for all of its challenges, won't change that hopeful trend.

Plastic Bags Are Making a Comeback. Will It Last?

Back in vogue.After decades of bitter fights, environmentalists seemed to be winning the war against single-use plastics in recent years, with cities around the world banning or taxing them. Then the coronavirus arrived, raising fears that reusable goods might lead to infections. The impact has been swift. From Maine to Hawaii, plastic-bag bans have been suspended or postponed. In San Francisco, reusable shopping bags — once totems of the city's vibrant commitment to sustainability — have simply been outlawed. These reversals have sparked deep concern among activists. Some fear the bans will never be reinstated; others that reusable products may be permanently tainted as “unsafe.” The good news is that activists aren’t the only ones demanding more sustainable packaging these days. So are consumers — and some of the world's biggest corporations are paying attention. Campaigns against consumer plastics date roughly to the discovery of the Pacific garbage patch in 1988. The environmental movement was soon galvanized, and single-use plastics — especially grocery bags and straws — became a focus of global activism. Much of this was misdirected. According to the Environmental Protection Agency, plastic bags and wraps amounted to only about 0.3% of all the waste generated by homes and businesses in 2010. By comparison, containers and packaging make up about 30%. Nonetheless, the proliferation of ocean plastic has worried consumers well beyond San Francisco. Last year, a survey of 6,000 people in 11 countries found that 77% perceived plastics to be the "least environmentally-friendly packaging material.” Perhaps unsurprisingly, 72% said they're buying more environmentally friendly products than they were five years ago, and 83% thought it was important for companies to design products that can be reused or recycled. Those shifting perceptions haven’t gone unnoticed by consumer brands. Over the past decade, some of the biggest have adopted ambitious sustainability agendas. In 2017, Apple Inc. rolled out an aggressive strategy to embrace sustainable paper and cardboard, which resulted in a 30% reduction in plastic use in iPhone 7 packaging. The next year, nearly 300 global organizations, including companies such as Nestle SA, Mondelez International Inc. and Colgate-Palmolive Co., pledged to eliminate unnecessary plastic packaging entirely. Some of those commitments may not amount to much. But the broader trend is unmistakable. For example, last May, 5,000 U.S. households gained access to a zero-waste e-commerce site called Loop. It offers brand-name products packaged in custom-designed glass and metal containers, which the company will deliver to your doorstep in reusable tote bags. Once you’re done with them, Loop will collect all the packaging for washing and refilling. Tom Szaky, the chief executive officer of TerraCycle, the company behind the site, told me that the experience isn't all that different from throwing stuff out; it asks almost nothing of the consumer. Loop isn’t making much money to start. But its animating idea — that reuse should be as easy as throwing something away — is powerful enough that some very big consumer-goods companies are now designing packaging specifically for the site. Want Clorox wipes delivered in a reusable metal container? Loop has them. Want the same experience with Haagen-Dazs ice cream or Pantene shampoo? Loop has those too, along with products from 400 other brands. It also has a waiting list of would-be shoppers that's about "100,000 long," Szaky says. Later this year, the company will start offering pick-up-and-return services at retail outlets around the world. "Manufacturers are promising recyclability and reusability," Szaky told me during a Zoom session, "and we're the easiest way to do it." Loop may or may not be successful in the long-term. But the fact is, consumers everywhere are expressing a clear preference for sustainability — and brands are increasingly responsive. Whatever happens with plastic-bag bans, it’s highly likely that this dynamic will ensure that single-use plastics continue to fade from the marketplace. The coronavirus, for all of its challenges, won't change that hopeful trend.

Plastic Bags Are Making a Comeback. Will It Last?

Back in vogue. After decades of bitter fights, environmentalists seemed to be winning the war against single-use plastics in recent years, with cities around the world banning or taxing them. Then the coronavirus arrived, raising fears that reusable goods might lead to infections. The impact has been swift. From Maine to Hawaii, plastic-bag bans have been suspended or postponed. In San Francisco, reusable shopping bags — once totems of the city's vibrant commitment to sustainability — have simply been outlawed. These reversals have sparked deep concern among activists. Some fear the bans will never be reinstated; others that reusable products may be permanently tainted as “unsafe.” The good news is that activists aren’t the only ones demanding more sustainable packaging these days. So are consumers — and some of the world's biggest corporations are paying attention. Campaigns against consumer plastics date roughly to the discovery of the Pacific garbage patch in 1988. The environmental movement was soon galvanized, and single-use plastics — especially grocery bags and straws — became a focus of global activism. Much of this was misdirected. According to the Environmental Protection Agency, plastic bags and wraps amounted to only about 0.3% of all the waste generated by homes and businesses in 2010. By comparison, containers and packaging make up about 30%. Nonetheless, the proliferation of ocean plastic has worried consumers well beyond San Francisco. Last year, a survey of 6,000 people in 11 countries found that 77% perceived plastics to be the "least environmentally-friendly packaging material.” Perhaps unsurprisingly, 72% said they're buying more environmentally friendly products than they were five years ago, and 83% thought it was important for companies to design products that can be reused or recycled. Those shifting perceptions haven’t gone unnoticed by consumer brands. Over the past decade, some of the biggest have adopted ambitious sustainability agendas. In 2017, Apple Inc. rolled out an aggressive strategy to embrace sustainable paper and cardboard, which resulted in a 30% reduction in plastic use in iPhone 7 packaging. The next year, nearly 300 global organizations, including companies such as Nestle SA, Mondelez International Inc. and Colgate-Palmolive Co., pledged to eliminate unnecessary plastic packaging entirely. Some of those commitments may not amount to much. But the broader trend is unmistakable. For example, last May, 5,000 U.S. households gained access to a zero-waste e-commerce site called Loop. It offers brand-name products packaged in custom-designed glass and metal containers, which the company will deliver to your doorstep in reusable tote bags. Once you’re done with them, Loop will collect all the packaging for washing and refilling. Tom Szaky, the chief executive officer of TerraCycle, the company behind the site, told me that the experience isn't all that different from throwing stuff out; it asks almost nothing of the consumer. Loop isn’t making much money to start. But its animating idea — that reuse should be as easy as throwing something away — is powerful enough that some very big consumer-goods companies are now designing packaging specifically for the site. Want Clorox wipes delivered in a reusable metal container? Loop has them. Want the same experience with Haagen-Dazs ice cream or Pantene shampoo? Loop has those too, along with products from 400 other brands. It also has a waiting list of would-be shoppers that's about "100,000 long," Szaky says. Later this year, the company will start offering pick-up-and-return services at retail outlets around the world. "Manufacturers are promising recyclability and reusability," Szaky told me during a Zoom session, "and we're the easiest way to do it." Loop may or may not be successful in the long-term. But the fact is, consumers everywhere are expressing a clear preference for sustainability — and brands are increasingly responsive. Whatever happens with plastic-bag bans, it’s highly likely that this dynamic will ensure that single-use plastics continue to fade from the marketplace. The coronavirus, for all of its challenges, won't change that hopeful trend.

Sustainable packaging goes beyond traditional recycling

When buying food and beverage items, consumers are looking for delicious treats and drinks, but younger consumers are also looking to enjoy products that can help the environment. The average consumer is more aware that single-use containers, often made of plastic, are negatively affecting the environment. A Consumer Brands Association report found 86% of Americans believe we are experiencing a packaging and plastic waste crisis. What are producers doing to address this crisis? CPG brands create their own sustainability solutions Most legacy food and beverage companies have set sustainability goals for their organizations. Many of those goals include increased availability of products that come in sustainable packaging. ConagraNestle and Unilever all made recent pledges to increase sustainable materials in their packaging over the next five years. Conagra intends to make all of its plastic containers renewable, recyclable or compostable while Nestle and Unilever both signed the European Plastics Pact, which designates that participants are committed to boosting the recycled plastic content for single-use products and creating reusable packaging. In California, PepsiCo is testing a better substitute for plastic rings on beverage six-packs: molded pulp and paperboard packaging. This trial demonstrates how CPG producers are working to address customer desires for sustainable packaging that still fills the durability needs of companies. “[W]e’ve worked collaboratively with our suppliers to ensure the two solutions that we’re testing meet the needs of our consumers and customers while also addressing our functionality and sustainability requirements,” Emily Silver, PepsiCo Beverages North America’s vice president of innovation and marketing capabilities, said to BeverageDaily. While many brands are creating their own packaging solutions or reducing their virgin plastic use, several are also investing in a broader eco-friendly packaging infrastructure. Nestle is planning to purchase roughly $1.6 billion worth of recycled plastic over the next five years, and Perrier has launched an investment program for startups that are developing packaging options that have a “positive environmental and social impact.” Loop takes reusing to the masses Rather than simply reducing or recycling virgin plastic, some companies are addressing waste by offering accessible, reusable packaging. Recycling business TerraCycle debuted its circular delivery service Loop to consumers in 2019, and it is currently available in Paris, France, and the northeast region of the US. Loop’s online platform allows users to shop for consumer packaged goods products in reusable packaging from a variety of brands, which are shipped in a reusable container -- the Loop Tote -- that rids the need for single-use shipping materials. “While disposable design focuses on making our packaging as cheap as possible, durable design focuses on making containers as long lasting as possible, allowing us to access unparalleled materials, design, and function,” the Loop site states. After using up the products, Loop customers return the empty packaging via free UPS pickup where it is returned to Loop to be cleaned and disinfected in preparation for reuse. “Customers are demanding that brands step up and provide solutions that produce less waste,” said Loop Publicist Eric Rosen. “Brands are responding to this push by investing in sustainable packaging solutions such as Loop’s reuse model.” The service is currently available online, but Loop products will be available in Walgreens and Kroger retail locations in the US later in 2020. Once Loop products arrive at retail, customers will also be able to make in-store returns of reusable containers instead of shipping them. Loop’s brand partners include food brands such as Haagen DazsHidden ValleyTropicana and Chameleon Cold Brew. The service also offers personal care and cleaning products from brands such as GilletteDoveTide and Clorox. Rosen said that Loop welcomes participation from any type or size of CPG brand as long as they are committed to transforming their packaging from single-use to multi-use. “One challenge is redesigning packaging that lasts many reuse cycles,” Rosen said. “Brands must find the right material and design to suit their product. TerraCycle acts as a consultant for the packaging development process and tests all packaging for cleanability and durability prior to approval in the platform.” Rosen also revealed that Loop will be expanding internationally in 2020. Loop will partner with Tesco in the UK, Loblaws in Canada and Aeon in Japan. The platform also plans to be available in Germany and Australia in 2021. “Consumers can support brands that are taking the next step from recyclable packaging to reusable packaging,” said Rosen. “[R]ecycling is never going to be enough to solve waste at the root cause.”  

Sustainability and the Economy

In the circular economy there is a growing need for durability in product packaging. Not only could a model of packaging reuse help the environment, but, when done right, could also be financially effective for manufacturers. Tim Debus, president and CEO of the Reusable Packaging Association presenting at PACK EXPO East. Tim Debus, president and CEO of the Reusable Packaging Association presenting at PACK EXPO East. The term “circular economy” is gaining traction as of late, as people around the world realize the linear economy of take, make, dispose—which for decades has been a mainstream mindset for many people—has created a massive amount of waste that is destroying the environment. The circular economy is a closed-loop system that regenerates resources through reuse, refurbishing, and recycling. Of course, recycling is a popular approach, but, unfortunately, is not making much of a difference. According to the Environmental Protection Agency (EPA), of the  267.8 million tons of municipal solid waste (MSW) that was generated in the U.S. in 2017, about 94 million tons of that was recycled and composted, equivalent to a 35.2% recycling and composting rate. That doesn’t make a dent at the dump. “In the 1970s we recognized the problem of pollution…but we haven’t been successful in decades,” said Tim Debus, president and CEO of the Reusable Packaging Association (RPA), who was presenting on the Innovation Stage at PACK EXPO East in Philadelphia. “It’s been a 50 year effort of recycling and we are not at the point where it is an effective way to manage waste.” Debus points out, too, that packaging makes up 30% of the total solid waste—and only 3% of that packaging is reusable. As a result, there needs to be a drastic shift in the way we package and reuse products in the circular economy. For that, he points to a need for the durability of materials to ultimately drive efficiency in a zero-waste system. Durability vs. Disposability The “throwaway lifestyle,” in which consumers buy single-use products that they ultimately dispose of, means that manufacturers are making products with low cost goods. While it may seem like a good economic model for manufacturers, in reality, a circular system that uses durable materials will provide a more positive long term payback. “The circular economy is not [only] a sustainability model, it is an economic model and a way of doing business and managing resources,” Debus said. The three components of the new circular economy include: ·     Designing waste out of the system by creating continuous use of materials. ·      Maintaining the value of products at the highest level possible. ·      Restoring the natural ecosystem thereby allowing  biological  systems to flourish and provide more raw/natural materials.   “Durability should be one of the leading design components of products and of the system in which products are used. Collaborating with supply chain partners needs to be a part of the design as well,” Debus said. An example of this is the TerraCycle Loop model. Loop provides beautiful, counter-worthy containers that can be refilled over and over and conveniently delivered to the consumer’s door. The company has partnered with some of the biggest consumer packaged goods (CPG) companies, and developed a subscription-based home delivery service where the packaging from food and household goods don’t get thrown out or recycled, but reused. Clorox wipes, for example, are delivered in a stainless steel container vs. a plastic container. Not only does it look nice—and can be displayed on the countertop—but it is designed for reuse.  When empty, the durable canister is placed in a Loop tote to be picked up and sent back to a cleaning facility and then refilled.  So, it is functional, a little fancy, and actually financially effective for manufacturers. According to Debus, reuse pays back repeatedly over time.  For example, if a company with one million shipments per year designs a durable container for reuse, they can get perhaps six uses out of that container per year. The idea being that every other month it is returned back to be refilled and shipped forward. So they don’t need a million containers. In this scenario they need about 166,000 containers that can provide one million uses—which results in a significant amount of cost savings—especially if the container is designed to last 10-to-20 years. There are other factors in play here, as well, such as new government regulations like the Extended Producer Responsibility (EPR) policy. EPR shifts responsibility back to manufacturers to clean up the wastes produced from their products and packaging after the consumer is through with them. “What we’ve been doing as an industry is packaging boxes and away it goes—the cost is off of my books. But someone else is picking up the cost, like municipalities. There is no market for that anymore,” Debus explained. As a result, the U.S. is picking up on the same EPR rules that are popular in Europe, and which we are seeing a little bit already in the U.S. for carpet, chemicals, and car batteries. But these takeback programs will soon focus on packaging. Manufacturers are no longer absent from responsibility, Debus said, which makes the circular economy based on durable containers even that much more appealing.

Sustainability and the Economy

Tim Debus, president and CEO of the Reusable Packaging Association presenting at PACK EXPO East. In the circular economy there is a growing need for durability in product packaging. Not only could a model of packaging reuse help the environment, but, when done right, could also be financially effective for manufacturers. The term “circular economy” is gaining traction as of late, as people around the world realize the linear economy of take, make, dispose—which for decades has been a mainstream mindset for many people—has created a massive amount of waste that is destroying the environment. The circular economy is a closed-loop system that regenerates resources through reuse, refurbishing, and recycling. Of course, recycling is a popular approach, but, unfortunately, is not making much of a difference. According to the Environmental Protection Agency (EPA), of the  267.8 million tons of municipal solid waste (MSW) that was generated in the U.S. in 2017, about 94 million tons of that was recycled and composted, equivalent to a 35.2% recycling and composting rate. That doesn’t make a dent at the dump. “In the 1970s we recognized the problem of pollution…but we haven’t been successful in decades,” said Tim Debus, president and CEO of the Reusable Packaging Association (RPA), who was presenting on the Innovation Stage at PACK EXPO East in Philadelphia. “It’s been a 50 year effort of recycling and we are not at the point where it is an effective way to manage waste.” Debus points out, too, that packaging makes up 30% of the total solid waste—and only 3% of that packaging is reusable. As a result, there needs to be a drastic shift in the way we package and reuse products in the circular economy. For that, he points to a need for the durability of materials to ultimately drive efficiency in a zero-waste system. Durability vs. Disposability The “throwaway lifestyle,” in which consumers buy single-use products that they ultimately dispose of, means that manufacturers are making products with low cost goods. While it may seem like a good economic model for manufacturers, in reality, a circular system that uses durable materials will provide a more positive long term payback. “The circular economy is not [only] a sustainability model, it is an economic model and a way of doing business and managing resources,” Debus said. The three components of the new circular economy include: ·     Designing waste out of the system by creating continuous use of materials. ·      Maintaining the value of products at the highest level possible. ·      Restoring the natural ecosystem thereby allowing  biological  systems to flourish and provide more raw/natural materials.   “Durability should be one of the leading design components of products and of the system in which products are used. Collaborating with supply chain partners needs to be a part of the design as well,” Debus said. An example of this is the TerraCycle Loop model. Loop provides beautiful, counter-worthy containers that can be refilled over and over and conveniently delivered to the consumer’s door. The company has partnered with some of the biggest consumer packaged goods (CPG) companies, and developed a subscription-based home delivery service where the packaging from food and household goods don’t get thrown out or recycled, but reused. Clorox wipes, for example, are delivered in a stainless steel container vs. a plastic container. Not only does it look nice—and can be displayed on the countertop—but it is designed for reuse.  When empty, the durable canister is placed in a Loop tote to be picked up and sent back to a cleaning facility and then refilled.  So, it is functional, a little fancy, and actually financially effective for manufacturers. According to Debus, reuse pays back repeatedly over time.  For example, if a company with one million shipments per year designs a durable container for reuse, they can get perhaps six uses out of that container per year. The idea being that every other month it is returned back to be refilled and shipped forward. So they don’t need a million containers. In this scenario they need about 166,000 containers that can provide one million uses—which results in a significant amount of cost savings—especially if the container is designed to last 10-to-20 years. There are other factors in play here, as well, such as new government regulations like the Extended Producer Responsibility (EPR) policy. EPR shifts responsibility back to manufacturers to clean up the wastes produced from their products and packaging after the consumer is through with them. “What we’ve been doing as an industry is packaging boxes and away it goes—the cost is off of my books. But someone else is picking up the cost, like municipalities. There is no market for that anymore,” Debus explained. As a result, the U.S. is picking up on the same EPR rules that are popular in Europe, and which we are seeing a little bit already in the U.S. for carpet, chemicals, and car batteries. But these takeback programs will soon focus on packaging. Manufacturers are no longer absent from responsibility, Debus said, which makes the circular economy based on durable containers even that much more appealing.  

Can the zero-waste movement survive the coronavirus?

It’s official: Your reusable mug has been tainted — with suspicion. Starbucks announced last Wednesday that it is “pausing the use of personal cups and ‘for here’ ware in our stores” due to the novel coronavirus outbreak, and Dunkin’ and Tim Hortons quickly followed suit. That secondhand side-eye doesn’t just apply to coffee containers. Given the rapid, worldwide spread of COVID-19 — the severe respiratory disease caused by this new coronavirus — all manner of reuse habits that just a few months ago might have been considered environmentally virtuous now invoke the same kind of germaphobic fear response as a public coughing fit. Renting clothes so you don’t have to buy new ones that you’ll only wear once or twice? Rent the Runway updated its frequently asked questions last week to reassure concerned customers that “there is currently no evidence that COVID-19 can be transmitted from soft surfaces like fabric or carpet to humans.” Shopping with a reusable bag to avoid single-use plastics? A local news station in Buffalo ran a segment warning viewers to wash or disinfect their bags between each use, citing research showing that a completely different type of virus can be transmitted from reusable bags to other parts of a grocery store via shoppers’ hands. Reusing goods and packaging as many times as possible, instead of disposing of them and then buying new ones, is one of the greenest practices there is. It prevents energy and resources from being spent on manufacturing and shipping new stuff. It diverts old stuff from landfills and oceans. These facts are at the heart of the so-called zero-waste movement, which has spawned books, blogs, and package-free stores in recent years. And there have been promising recent signs of a burgeoning “circular economy” — that is, a no- or low-waste system that encourages reuse rather than disposal. ThredUp, an online secondhand clothing store, grew from receiving 4 million clothing items for resale in 2014 to 21 million in 2018. In 2019, fast-casual chain Just Salad says it diverted 75,000 pounds of plastic from landfills with its $1 reusable bowls, which customers wash at home and then bring back to be filled with salad again. Last May, Terracycle launched Loop, an online store that sells groceries and household items in reusable packaging that shoppers return to Loop once they’re empty in exchange for a deposit. But can the circular economy continue to grow during what some epidemiologists are already calling a pandemic? Reusable or secondhand items are unlikely to spread the novel coronavirus, as long as they’re washed or disinfected in between uses. But new items come with an aura of cleanliness, while reusable and secondhand goods often fight the perception of being unsanitary. The key to encouraging reuse at a time when coronavirus infection numbers are rising might be recognizing that neither stereotype is true. “No disposable package is today sterile, just to be explicitly clear,” said Tom Szaky, the founder and CEO of TerraCycle in an interview with Grist. Different kinds of disposable packaging have different microbial limits set by independent standard-setting organizations — and unless a product is explicitly marked sterile, none of those limits are zero. That means a certain level of bacterial contamination is considered acceptable and inevitable. Take a disposable plastic bottle, Szaky said. “That bottle is going to be moving through a bottle plant. It’s going to be put onto a pallet. That whole process is being touched and dust is being collected on it,” he said. “In no way should you take the message from me that a disposable package is dangerous … It’s just not surgically sterile and not even close.” For Béa Johnson, the author of Zero-Waste Home, one of the founding texts of the zero-waste movement, the hygienic uncertainty in the supply chain is one reason she prefers a reusable water canteen to disposable water bottles. “With disposables, you have no idea who has touched it. With your own reusables, you do!” she wrote in an email to Grist. “Being afraid of reusables is as ridiculous as being afraid of Corona beer,” Johnson added. So why do we tend to think of plastic packaging as being sanitary when it’s not? Szaky traces that idea to the 1950s, when the oil industry first introduced disposable plastic packaging and goods. “Disposability brought about unparalleled affordability and convenience. Moving from a plate you had to wash — probably by hand, because there weren’t even dishwashers then — to a disposable plate you could throw away was massively liberating and also very cheap,” Szaky told Grist. “And I think what ended up happening is people got this misperception that wrapping something in plastic also made it more sanitary.” Loop’s circular model is aimed at doing away with the stereotype that packaging has to be disposable to be sanitary. Szaky emphasized that the process of rewashing Loop’s reusable packaging is “at the most sophisticated level washing can be.” The cleaning facility “looks like a silicon wafer factory,” he told Grist. But Vineet Menachery, an assistant professor of microbiology at the University of Texas Medical Branch, says that level of sophistication isn’t necessary to prevent the spread of coronavirus. Depending on temperature and humidity, coronaviruses can survive on hard surfaces like steel or plastic for two to nine days — but only if you don’t do anything to stop them. “Relatively minor cleaning will actually dissolve or destroy the virus, and so if you use anything with between 60 and 70 percent ethanol, the virus will be destroyed in less than 60 seconds,” Menachery told Grist. When it comes to reusable cups, mugs, and plates, plain old soap and water does the trick. “If you’re regularly cleaning stuff, you should be fine,” Menachery said. “My house, we have three kids, so we’re running the dishwasher all the time. I wouldn’t expect any virus to survive a dishwasher.” As for secondhand or shared clothing —or cloth napkins — Menachery said people are unlikely to get COVID-19 from fabric because “if the surfaces absorb, it’s harder to transmit the virus.” But again, washing fabric with detergent and water will destroy the coronavirus. I asked Menachery about the likelihood of contracting COVID-19 from a shared or secondhand object like a library book or a secondhand appliance from Craigslist. “A Clorox wipe or something like that would definitely dissolve the virus,” he said, though he added that those products might be hard to find right now. As for reusable shopping bags, Menachery said he’d used one himself at the grocery store recently. “I’d be less worried about my shopping and more worried about maybe the touch screen when you’re punching in your codes for the ATM or whatever,” he said. In other words: Buying new rather than secondhand won’t protect you from COVID-19. You’re more likely to get coronavirus buying something new that got coughed on by the last person to walk down the aislethan from a secondhand item that’s been washed with soap and water or wiped down with sanitizing wipes. The bottom line, Menachery said, is that the best way to avoid getting COVID-19 from an inanimate object — whether it’s new or used —is not to touch your eyes, nose, or mouth after you touch it. “The inanimate object could be coated,” he said. “And as long as you don’t bring it to the mucosal surface, it’s hard to get infected that way.” Regardless of how long the coronavirus epidemic lasts, the problems of environmental degradation, climate change, and plastic pollution will still be with us when it ends. So Szaky says, don’t take coronavirus as a sign you need to give up your vintage clothing habit or avoid shopping at a package-free store. “That’s really important for the environment to do, and we shouldn’t suddenly forsake that because of all the fear around this particular issue,” said Szaky.

They’re Fixing The World’s Plastic Problem Using ‘The Milkman’ Concept – With All Your Favorite Products

For several generations of young Americans, the idea of a ‘milkman’ is a completely foreign concept. But if you lived in the 40s, 50s, and 60s, and you were in the middle-class, you likely had a delivery truck dropping off fresh bottles of milk on your front porch—and you would leave the empties outside to be picked up. It was super convenient—and, better yet, there was no waste generated in the process. With tons of plastic containers overrunning landfills, and an innovative partnership of consumer brands emerging, the milkman idea of circulating containers is making a comeback. Loop launched in Paris and New York one year ago as a company that ships customers their favorite products packaged in reusable stainless steel or glass containers to be collected later for cleaning and refilling—just like your grandfather’s milk. They quickly expanding their operation to cover much of the U.S. Mid-Atlantic region, and this month Loop will be bringing their pioneering business model to the UK, a move they hope will make them the biggest eliminator of single-use plastics in the global grocery market. They also announced plans to expand soon into Canada, Germany, and Japan. Loop teamed up with some of the biggest consumer industry giants to create eco-versions of hundreds of popular products like Tropicana, Haagen-Dazs, or Hellmann’s mayonnaise; cleaning products like Tide and Clorox wipes; and skin and hair care essentials like deodorants, from companies like Dove, Pantene, L’Oreal, and Crest. Procter & Gamble, Loop’s biggest partner, which also owns a 2 percent stake in the enterprise, tapped into 10 of its most iconic brands as part of the Loop 2019 launch, including Ariel, Cascade, Crest, Febreze, Gillette, Pantene, Pampers, and Tide, according to GreenBiz. Image by Loop Stateside, the refillable products are available at Kroger and Walgreens, in addition to the online Loop store, and they cost nearly the same as their plastic counterparts, except for the cost of a deposit. Founded by the brilliant recycling company TerraCycle, Loop plans to expand across the U.S. this year where more consumers in specific zip codes can place empties inside their Loop insulated zipper tote on the doorstep—to be picked up, washed, and reused. In France, where Loop has already partnered with Carrefour—one of the largest grocery chains in Europe, consumers pay a small deposit on the items purchased, in case the packages aren’t returned later. This includes small bottles, where a deposit might only be a few cents, or large tubs that might contain laundry soap or paper towels. 1953 photo by Ben van Meerendonk / AHF, collectie IISG, Amsterdam When asked about the hefty carbon footprint of shipping the products all over the country and then shipping them back for washing and refilling, Loop’s founder, the mastermind of Terracycle, Tom Szaky, explained that if you add up all the energy and shipping it takes to create and distribute plastic, the carbon footprint is cut in half—plus you are digging up the actual root of the plastic problem, so it can be eliminated. Furthermore, as drone delivery technology becomes more and more feasible in major cities, delivery will become much cheaper and more energy efficient. Companies like DHL, UPS, Amazon, Google, Dominoes, Rakuten, and 7-11 all have drone-delivery technology. According to the Business Insider 2018-2020 report on online grocery shopping, 10% of consumers utilize online grocery store options, while the market value of these services doubled from $12 billion in 2016 to $26 billion in 2018 and shows no sign of slowing down. It’s possible that in the next ten years thanks to companies like Loop, all the benefits of the friendly neighborhood milkman will be resurrected to create a healthier planet for all.