TerraCycle produces very cool consumer products from recycled food packaging. But for businesses trying to grow revenues in this “soft recovery” the coolest thing about TerraCycle is its creative business strategies for generating top-line revenue results with attractive profit margins.
How it engage its customers is what makes TerraCycle’s strategy unique. For example, it “up-cycles” Capri Sun wrappers to create products like pencil holders that target the very school children who are the principal consumers of Capri Sun juices. Its customer engagement program involves encouraging school children to collect the wrappers as a fund raiser for their school and a path for learning about recycling. Beyond this being a brilliant social marketing example it also makes money. From a production-cycle perspective, TerraCycle takes a zero-cost waste stream and converts it into a product with attractive margins.
Nancy Baiche would have an entirely green school if she could, but for now she's happy believing that teaching the prekindergarten classes at Williams Ledger Elementary School about recycling could impact the world and maybe save the earth someday.
"They love it," she said. "They're becoming little voices that I'm hoping in the future will become bigger voices."
Recycling is part of the curriculum in prekindergarten classes every year, but this year the eight classes at Williams Ledger are getting hands on experience while earning extra money for the school.
Baiche, a prekindergarten aide in Bernadine Wagner's class at Williams Ledger, said she was looking for lessons and educational tools to help her students understand recycling when she came across the TerraCycle program.
"There's a lot of information out there for adults, but it's really hard to teach to a 3- or 4-year- old," she said.
TerraCycle is a company that takes trash such as drink pouches and chip bags and turns it into products such as CapriSun tote bags and pencil bags made from cookie wrappers.
When Tom Szaky sees a discarded juice pouch, he doesn't see garbabe; he sees a pencil case. An old vinyl LP cries out for new life as a clock. Candy wrappers? An awesome kite. But these are not the musings of an idealistic tree hugger. For the 28-year-old CEO of Trenton, New Jersey-based TerraCycle, they're a revenue model.