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Bringing Back the Milkman Model for Waste-Free E-Commerce

milk bottles on stairs next to a front door. Before many households had refrigerators, milk was typically delivered directly to doorsteps all over the United States, first by horse-and-cart and later by truck. While from today’s perspective it may seem like a less efficient delivery approach, it did have one major benefit we can emulate in 2019: the milk bottles were made of glass. These empty glass bottles were collected, cleaned, and reused over and over again. Today, most consumers buy their milk in plastic containers or plastic-coated cardboard – which go straight into garbage or recycling bins. 80% of all plastic ends up in our oceans or landfills; there are 6.9 billion tons of plastic waste on the planet. Unfortunately, recycling isn’t anywhere near efficient enough to cope with growing economies, and it’s predicted that we’ll run out of landfill space in some states within 25 years. To address these ominous forecasts, an innovative recycling company called TerraCycle earlier this year invested $10 million in Loop, a start-up aiming to revolutionize the way we reuse packaging and make e-commerce a zero-waste operation.

How Does Loop Work?

Known as the “milkman model,” this closed-loop initiative operates through the following steps:
  • Step 1: Consumers set up a Loop account from which they can order groceries from all participating brands via the Loop platform or associated stores such as Walgreens or Kroger.
  • Step 2: Purchases are delivered to the consumer’s door using Loop’s waste-free delivery system.
  • Step 3: Consumers pay a small deposit to receive their shopping in reusable, sustainable packaging made from glass, metal, and plastic.
  • Step 4: Empty containers are collected and returned to Loop HQ for cleaning, refilling and future reuse.
Other companies like The Wally Shop and Infinity Goods offer similar services but Loop is making waves with over 25 high-profile partnerships including Nestle, Unilever, Procter & Gamble, and PepsiCo. Despite the additional round of shipping, this process is estimated to be 75% better for the environment thanks to the colossal savings made on materials and energy compared with single-use packaging.

What are the Advantages of Adopting the Milkman Model?

For consumers, it’s waste-free shopping made easy. For the brands, upfront costs include redesign and the development of hardy packaging which must be able to withstand multiple washes while still looking clean and untampered. However, these expenses are outweighed by positive brand awareness and the fact that customers will develop long-term loyalty to participating brands via a platform like Loop. This service is currently available in select zip codes in a handful of U.S. states and France, with plans to launch soon in Canada, Germany, Japan, and the UK. But could closed-loop initiatives like this be applied on an industrial scale? The automotive industry is leading the way with reusable packaging, in part because the robust materials provide safer transit for car parts and safer working environments for employees. General Motors, for example, reports it has made 142 of its facilities landfill-free, including 79 manufacturing plants worldwide. For manufacturers interested in applying the milkman model, the first step is to examine all packaging throughout your organization, from the wrapping used for consumables in the facility kitchen to the large pallets used to transport manufacturing equipment. Procurement can then work with suppliers to eliminate single-use packaging wherever possible and investigate the cost of the logistics involved in shipping empty containers back to suppliers. Whether a company such as Loop will one day offer this sort of service on an industrial scale remains to be seen. Reusable packaging is achievable, but brands that are truly committed to waste-free packaging will need to formalize their policies and standards across the board, collaborate with their suppliers, and make an upfront investment in sustainable packaging.

Loop Review: A Waste-Free Packaging Service For Returning Containers

The service promises to help you cut waste. It’s better at emptying your wallet. When I first heard about Loop, a reusable packaging service designed to help cut down on waste, I couldn’t wait to try it. As a conscious consumer, I am proud of my reusable straws and grocery bags, but I struggle to find affordable, plastic-free alternatives to some of my favorite food brands and household items like shampoo. Plastic packaging has become a frequent target of activist groups campaigning against the deluge of garbage entering the oceans. Items like candy wrappers and soda bottles are some of the most common pieces of trash found on beaches during cleanup efforts, and a handful of giant consumer goods companies are largely responsible for the mess. Several of these companies, including Procter & Gamble, Unilever, Nestle and Coca-Cola, have partnered with Loop, redesigning some of their products’ packaging to discourage people from trashing it. Launched by recycling company TerraCycle, Loop delivers products from name brands like Clorox and Hidden Valley in packaging that can be returned, refilled and redistributed. The service made its debut to much fanfare at the World Economic Forum in January. The returnable, reusable containers are meant to stay in circulation longer than traditional packaging in an attempt to slash not only waste but also climate-warming greenhouse gas emissions. But does it really work in practice? That’s what I wanted to find out. Loop launched a beta test in May, and I signed up for a trial membership over the summer and used the service for two months. Spoiler alert: It wasn’t exactly what I expected. For an in-depth look at what it’s like to use Loop, check out our full review below. Haagen-Dazs ice cream in a metal tin, designed for the Loop service. LOOP Haagen-Dazs ice cream in a metal tin, designed for the Loop service.

 

HOW IT WORKS

After creating a personal account on the Loop store website, you can start shopping. Available products include groceries and items for housecleaning and personal hygiene. The most popular things sold on the service so far have been cleaning products, such as Cascade dishwasher pods and Clorox disinfectant wipes; foods like Häagen-Dazs ice cream; and personal care items, including Pantene shampoo and conditioner, according to Loop representative Lauren Taylor. I placed two orders over the course of my trial, purchasing rolled oats, dry salted almonds, nut butter, coffee, all-purpose cleaner and gummy bears for my first order, and just coffee and oats for my second. They all came in metal containers except for the nut butter, which was in a glass jar. I was disappointed to find that the service offers only a limited number of products, and I was stunned at how much it costs to buy this stuff from the Loop website. (More on that later.) The goods are shipped within two days through UPS and arrive in a very sturdy and large tote bag. Once you’ve emptied the reusable containers, you load up the tote and send them back to be cleaned for reuse. You don’t have to ship all your empties back at the same time ― which makes sense because, as I discovered, my gummy bear supply doesn’t run out at the same rate as my all-purpose cleaner supply. You can also set up your account to automatically refill products in your tote. Loop is currently available in only a few states along the East Coast: New York, New Jersey, Maryland, Pennsylvania, Connecticut, Delaware, Massachusetts, Rhode Island and Vermont, and in Washington, D.C. It also ships to Paris. Next year Loop will expand to London, Toronto, California, Germany and Tokyo, Taylor told HuffPost. She didn’t share how many users have signed up so far, but she said Loop will add more brands and products to its online store as more people use the service. Joan Marc Simon, executive director of Zero Waste Europe, called Loop “a good initiative with the best intentions,” adding that there’s a lot that needs to change about it. I agree, but there are also some great things about the service, so let’s start there. Procter & Gamble, one of the multinationals that partnered with Loop, designed packages for multiple brands -- from personal LOOP Procter & Gamble, one of the multinationals that partnered with Loop, designed packages for multiple brands — from personal hygiene products to cleaning supplies — to be sold on Loop’s website.

 

WHAT YOU’LL LIKE 

1) It’s not too complicated to use

Disposable packaging is tough to quit because it’s incredibly easy and convenient. For a service like Loop to be successful, it has to be as simple and hassle-free as throwing out a candy wrapper, said Simon. Loop isn’t quite as simple as that, but it’s not too difficult to figure out. The online shopping experience was smooth, and the goods arrived as described on the website. Returning Loop’s big tote bag with the empty canisters was easy enough, though not as easy as taking out the trash or recycling. I made a quick pitstop on my morning commute to drop off the goods at a UPS and a day later received an email confirmation that my empty products had been received and a deposit refund was on its way to my credit card.

2) It’ll make you feel good about yourself

As someone who reads and writes a fair amount about plastic, I have serious guilt over my consuming habits. Every plastic soap dispenser or soda bottle I toss away contributes to my sense of personal failure. Even though I bought only a few items from Loop, those were items that didn’t end up in my trash can. Taylor said that Loop has “prevented the manufacturing of thousands of single-use, disposable packaging.” Simon agreed that reusing packages with Loop makes sense as a way to reduce waste. Knowing that Loop was helping me slash my plastic use, even in a small way, made me feel good.

3) It will change the way you think about waste

Testing Loop deepened my sensitivity to waste and made me want to be more proactive. I became more skeptical about the materials around me: Did I have to buy a plastic tub of coffee grounds, or could I wait a day to stop by the store that offers beans in bulk? It seems promising that Loop has convinced several large consumer goods companies to rethink packaging, and it’s easy to envision a world where every company follows suit. Erik Loomis, a history professor at the University of Rhode Island, cautioned me about being too optimistic: By touting their participation in so-called sustainable programs, these companies get an image boost that distracts from how they operate on a global scale and discourages the public from asking what they could be doing better. “If we’re going to actually deal with climate change, we have to deal with the big questions that hold corporations responsible,” Loomis said. Fair enough.

WHAT YOU’LL DISLIKE

1) It’s not cheap, and the product range is limited 

It’s easy to rack up a large bill with Loop. Though there’s no membership fee (hooray!), there are plenty of other costs built in. You not only have to purchase the products and cover shipping costs, you also must pay a deposit for each reusable container, since you’re essentially renting those from the company. The tote bag is a $15 deposit, and a glass jar of cake mix requires a $3 deposit, while a bottle of body wash takes a $5 deposit. It adds up fast. My first order came to a whopping $85.70. For only six items! To be fair, $32 was for packaging deposits and $20 was for shipping. And I snagged a $20 discount as a first-time customer. For my second round of orders, I bought only two more products, so the total was $37 with the deposits. After using the service for two months, buying a total of eight products and receiving refunds for all my deposits, I paid a total of $69.70. (HuffPost provided funds for the purposes of reporting this piece.) Some of the products in Loop’s online market seemed overly expensive to me. Part of the issue here is that Loop offers just one brand per product (for now), with no cheaper, off-brand alternatives to choose from. Never before have I purchased a $14 nut butter ($16, including the jar deposit), but there were no other options. I can usually find similar goods at my supermarket for less than I can on Loop’s website because there’s more choice outside Loop and I can hunt for a bargain. Product selections are limited on Loop's website. Some categories offer only one choice. If something you want seems too pric LOOPProduct selections are limited on Loop’s website. Some categories offer only one choice. If something you want seems too pricey — like this $14 nut butter — you can’t shop around for a better deal.   Some of these prices are prohibitive if you’re on a tight budget. Which made me wonder if the service would ever become affordable for people who don’t have piles of extra money lying around. Loomis said services like Loop turn environmentalism into “a consumer movement,” something that can be practiced only by well-off people. Right now, Loop is too burdensome for the average working person. The service, he said, appears to have been created “by rich people for rich people.” Taylor said that Loop will keep partnering with additional brands to offer more choices and that most of the current prices are “comparable” to what you’d see in a brick-and-mortar store. She said that Loop doesn’t want to be a luxury service made just for the rich.

2) It’s not totally waste-free

The whole point of Loop is to slash the amount of trash produced by shopping. The company even developed a reusable tote bag to avoid cardboard boxes and packing material. But when my first order arrived, I noticed something odd: Every item, including the tote bag, comes with a plastic seal on it! I asked Taylor about this, and she said it’s a quality control measure. The seals are meant to prove that items haven’t been tampered with during shipping. You can actually send back the plastic seals, along with your empties, to be recycled, Taylor added. Loop’s parent company operates a number of experimental programs for hard-to-recycle items like these. So you don’t have to worry about the plastic wraps ending up in a landfill or an incinerator. My tin of rolled oats, with the clear plastic seal around the lid. Loop says you can send these seals back with your empties KATE BRATSKEIR My tin of rolled oats, with the clear plastic seal around the lid. Loop says you can send these seals back with your empties to be recycled by its parent company, which specializes in hard-to-recycle items.   When it comes to reducing greenhouse emissions, the results are murkier. Online shopping can in some instances have a smaller carbon footprint than in-person shopping, but there are many factors at play here, and they’re tough to measure. I’ll point out, though, that fast shipping uses more resources ― and Loop ships pretty quickly. Using the service instead of driving a car to the store is probably less carbon-intensive, said Simon, especially if lots of people sign up for Loop. “One shipping vehicle can transport [totes] for hundreds of families, which is better than having hundreds of families driving to the supermarket individually,” Simon said. But, in my case, I would have walked to the grocery store instead of driving, so I’m not convinced that having goods delivered to my door by truck is my best option for slashing emissions.

3) It takes up a lot of space

The Loop tote bag is huge. Seriously huge. It drove me and my husband crazy, occupying all that precious floorspace in the living room of our teeny New York City apartment. We also don’t have a lot of countertop space to hoard the reusable containers. Though Loop didn’t totally fit my lifestyle, it might work just fine for someone with more storage space.

4) Sometimes visiting the corner store is just more convenient

It takes a couple of days for the service to send you new items when you run out. That’s not a huge inconvenience, but it could be a problem if you’re waiting on a product you use every day, like bath soap or shampoo. On its website, Loop recommends ordering everyday products two at a time, in case you run out unexpectedly. Ordering two bottles of shampoo is easy in theory, but it takes some getting used to if you’re not a big online shopper, which I’m not. Look at the size of the Loop tote. It's huge. And if you live in a tiny apartment, like me, its size is kind of a pain. LOOP Look at the size of the Loop tote. It’s huge. And if you live in a tiny apartment, like me, its size is kind of a pain.

THE TAKEAWAY

After using Loop for two months, I decided it’s not the best fit for me. The service isn’t quite ready for prime time, though parts of the experience I liked. I was willing to put up with some inconveniences ― such as paying the deposits on Loop’s reusable containers and stuffing the enormous tote bag behind my couch ― if it meant I’d create less waste. But ultimately the price of buying items through the service was too steep. I would definitely try it again in the future if it were cheaper and the product selection improved. Loomis, the history professor, thinks it’ll take more than that for Loop to succeed at replacing plastic packaging. “If you want to make [reusable packaging] accessible, you need the government’s investment to make it part of American policy rather than a boutique consumer item.” When I asked Simon, the zero-waste expert, if he thought Loop would ever go mainstream, he wasn’t overly optimistic. “I hope the system succeeds, but for the moment I would be surprised if it does,” said Simon. “It definitely needs to be fine-tuned and simplified, but I guess that is the rationale behind the pilot: to learn from mistakes before scaling up.” Taylor said the service will get better as it grows. She added that Loop isn’t meant to be a silver bullet for plastic waste: “There is no single solution to solve the waste crisis we are in.”     Charlotte Maiden Publicist, U.S. Public Relations Loop Global Office: (609)-393-4252 ext. 3712 Cell: (732)-865-6154 1 TerraCycle Way Trenton, NJ  08638 USA www.terracycle.com Eliminating the Idea of Waste® Please consider the planet before printing. This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited. If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto.  

Dove Products Make Some Real Big Promises About Its Use Of Plastic

https://s3.amazonaws.com/media.mediapost.com/dam/cropped/2019/10/21/doveproducts-600_GqrxFYf.jpg Unilever's Dove brand will use only 100% recycled plastic bottles in North America and Europe by the end of 2019 -- “where technically feasible,” it says -- and will package single packs of Dove in plastic-free material around the world starting next year. “Development is also underway to replace the plastic outer wrap of beauty bar multipacks with a zero-plastic material,” Unilever reports. More radically, earlier this year, Unilever disclosed that Dove, Degree and Axe will begin testing new stick deodorant containers made of stainless steel designed to be reused and refilled up to 100 times. Calculating that a consumer would use one stick a month, that container could last more than eight years. Dove also reiterated its plans for this development on Monday. But for now -- or at least the near future -- the move to recycled plastic for containers will apply for Dove and its branch brands, Dove Men+Care and Baby Dove. “Dove continues to search for solutions where recycled plastic is not currently technically feasible, including for caps and pumps,” it says. A Nielsen report says 73% of millennials will pay more for a product made from sustainable material, and now many packages boldly boast their environmental qualifications for consumers to see. Many major brands are working on similar initiatives, but Dove says it’s ahead of the pack. “By taking these steps, Dove will be the biggest brand in the world that has moved to 100% recycled packaging," says Richard Slater, Unilever chief research and development officer, in a statement. “This should send a clear signal to the global recycling industry that there is a huge consumer demand for recycled packaging. We will continue to innovate across our brands to change the way we use plastic for good.” Earlier this month, Unilever committed itself to cutting its use of virgin plastic by half -- that's more than 100,000 tons -- by 2025, and to helping to collect and process more plastic packaging than it sells. It claims those goals make it the “first major global consumer goods company to commit to an absolute plastics reduction across its portfolio.” For the recyclable deodorant sticks, Unilever is working with a Trenton, New Jersey company named Terra Cycle whose Loop system is not only being tested on several Unilever products worldwide but also by products from Procter & Gamble, Coca-Cola, Nestle and other major brands. Under the arrangement that Unilever announced earlier, consumers would order goods from the Loop website and have them delivered conventionally. But customers will pay a deposit. When they are done, they can bring it to a retailer for a refill, or return it for a refund. The containers are cleaned and reused. ' Loop is also testing a delivery plan for a wide variety of consumer goods. Unilever has said it wants all of its plastic packaging to be reusable, recyclable or compostable by 2025. It believes it is making good progress, and says the company’’s packaging volume is now at the same level it was in 2010, despite “the business growing significantly.”

Loop – Reuse like the milkman

Disposability was sold as a convenience in the post-war years of the 1950s, but it’s become a plague of plastic and nonrecyclable trash that now pollutes every corner of the world. It’s enough to make one nostalgic for the milkman—that reliable delivery person who not only dropped off milk in convenient glass bottles, but also picked them up again to be refilled and reused. Ah, those were the days… and we may see those days again. Loop—an online “circular shopping platform”—aims to revive the image and model of the milkman on a larger scale, offering customers door-to-door delivery of brand-name grocery store products in durable packaging that Loop will collect and use again. http://www.greenenergyfutures.ca/wp-content/uploads/2019/10/Milkman-cropped.jpg

Reusability: Back to the future

“Loop is a very utopian idea,” says Tony Rossi, Loop’s Philadelphia-based vice president of business development. “About three years ago, our CEO challenged us and himself to really solve the idea of waste at its core.” For Loop, this means enabling brands and retailers—the heart of our “take, make, dispose” linear economy—to move away from single-use packaging into durable, multiuse containers. Ultimately, the idea is to spark a wider movement to a circular economy, an economic model based on getting us much use out of the products and resources that are already in circulation, and thereby reducing both consumption and waste. The image of the milkman is a perfect embodiment of the circular economy. “One of the things that we found with the milkman model was that the milk bottle was an asset that was owned by the milk company,” Rossi explained. This made it desirable for the milk company to invest more in its milk bottles, to ensure that they would be long-lasting and durable. Tony Rossi of Loop

From laundry detergent to ice cream

Häagen-Dazs container Häagen-Dazs container Much more than milk, you can buy a grocery list of goods from Loop: tea, laundry detergent, shampoo, even ice cream, all in reusable containers. Loop is working with some of the world’s biggest brands to test this back-to-the-future idea of selling products in reusable containers. The list Rossi gave of some of Loop’s early partners was impressive: Procter and Gamble, Unilever, Nestle, Clorox, Mars, and Danone, to name a few. The containers Loop uses to ship these products aren’t your run-of-the-mill Ziplocs or Tupperware containers. Just as the milkman model would suggest, there is significant investment in high-quality, durably designed containers for Loop’s products. “For me one of the most innovative and kind of jaw-dropping products so far has been the Häagen-Dazs ice cream container,” says Rossi. “It’s double-walled.” Loop’s Häagen-Dazs container is not only designed to have the longest lifespan possible—it is also designed to keep your ice cream deliciously frozen, all the way from the Loop warehouse to your door. But Loop’s containers aren’t just utilitarian; they are also beautifully designed. “There is a counter- or shelf-worthiness to the package, where you as a consumer are proud to put that on your counter,” said Rossi. Loop is trying to make sustainability “irresistible.” Loop how it works

How it works

Loop has no storefront. Instead, customers visit loopstore.com and place an online order, which Loop ships to their door via courier. When they are done with their products, customers can schedule a Loop courier to come pick up the empty containers. Loop has even designed a reusable shipping tote to be used for both delivery and pick-up, thus avoiding the Styrofoam and bubble wrap waste nightmare of most online purchases. Loop works on a deposit system, in which customers pay a deposit on the packaging of the products they order. You would, for instance, be required to pay a five-dollar deposit on your Häagen-Dazs ice cream container on top of the cost of the ice cream itself. Once you return the empty container, however, you would be reimbursed for the amount of the deposit.

Coming soon!

Before you get too excited, note that Loop is currently in its pilot phase, with test markets operating in the eastern United States and in Paris, France. Each test market has 5,000 participating households, but demand is high. There are currently waiting lists in these markets, with people itching to give Loop a try. With so much demand, Loop is working on launching the platform directly through retailers, as well as expanding the platform globally. Loop plans to launch new markets in the western United States, Germany, Japan, and Australia next year. Canada can expect to see Loop in the Greater Toronto Area in fall 2020. Loop featured products A sampling of Loop products in reusable containers.

Better for the environment?

While Loop’s circular economy model does a tremendous job of reducing packaging waste, the shipping and the materials used to make their new, durable containers must still be taken into account. According to Rossi, Loop has done multiple life cycle analyses of the impact of its reuse model as compared to that of single-use models. These analyses take into account eight different environmental factors, including carbon emissions, water usage, and impact on air and water quality—and reuse consistently comes out on top. “On average, it takes about three reuses of that durable package to have the same environmental footprint as three single-use packages,” Rossi explained. If a package is used between three and seven times, it performs 51 per cent better than single-use packaging in terms of environmental impact. If used more than seven times, this improvement increases to 70 per cent.

Waste not! Change is coming

Waste and other environmental issues are all over the news and social media these days, whether it be microplastics, plastic bags, or Greta Thunberg’s climate strikes. For Rossi, this increase in public attention and awareness of the environmental impact of our current lifestyles can mean only one thing: change is coming. “People aren’t content with the way that things are today. And everybody acknowledges the fact that we need to change. And I think that’s a powerful message. And that is forcing the hands of anybody who makes products, or is in business, to think about their environmental footprint.” Indeed, change is desperately needed. As Rossi said, “We realistically can’t fast forward 30 years into the future and continue to behave the way we’re behaving today.” He hopes Loop can play a role in spreading the gospel of the waste-not circular economy. Loop is a company owned and operated by TerraCycle, a social enterprise based in the United States that specializes in collecting and repurposing hard-to-recycle waste and operates in 20 countries. We interviewed Rossi after he presented on Loop at the Recycling Council of Alberta Sea Change conference held in Jasper, Alberta, October 2–4, 2019.

The world's biggest brands have a garbage problem. This man can help

The world's largest consumer goods companies have a big problem: The plastic waste that piles up in landfills and oceans has their corporate logos all over it. To try to fix it, they're increasing recycling efforts, sponsoring beach cleanups and switching up packaging materials, among other things. The most radical effort, though, is also the hardest to pull off: Get consumers to switch from single-use to reusable packages.   It may seem impossible, but Procter & Gamble, Unilever, Nestlé, Clorox and PepsiCo are all trying it out, thanks to Tom Szaky.   Szaky is the founder and CEO of TerraCycle, a recycling company based in Trenton, New Jersey. He's also the driving force behind Loop, an innovative service he likens to a 21st century milk man. Launched in May, the service sells brand-name goods like Tide detergent, Pantene shampoo, Gillette razors and Häagen-Dazs ice cream all in reusable packages. Participants pay a refundable deposit for each package, use the products, throw the empty containers into a Loop tote and send them back to be cleaned and refilled. Tom Szaky, founder and CEO of TerraCycle, convinced Procter & Gamble, Unilever, Nestlé and other large consumer goods makers to launch a new shopping service using reusable packaging. (Mark Kauzlarich for CNN) Tom Szaky, founder and CEO of TerraCycle, convinced Procter & Gamble, Unilever, Nestlé and other large consumer goods makers to launch a new shopping service using reusable packaging. (Mark Kauzlarich for CNN)   The stakes are high for all involved. For Szaky, failure could mean the loss of a significant investment and his reputation as a green business whiz. The companies, too, poured time and money into the project. For them, failure means one fewer solution to their plastic waste problem.   It's "the biggest risk we've ever done," Szaky told CNN Business's Rachel Crane. "It's in every way a massive gamble."   But Szaky is no stranger to risk.   Can one man bring back reusable packaging?    Durable packaging fell out of fashion decades ago, when cheap, disposable plastics replaced glass bottles and containersToday, reintroducing the public to a system of reusable packaging is a tall orderConsumers have become accustomed to the ease of quickly tossing things away. Reusing items, however, requires them to take an extra step to preserve the packages. That's why, when Lisa McTigue Pierce, executive editor of Packaging Digest, heard about Loop, she was skeptical.   "When I first got the information, I thought to myself, 'Wow, this is never going to take off,'" she said. But then she had another thought. "This is Tom Szaky at TerraCycle ... one of the best marketers I have ever seen," she said. "If anybody could make this work, it's going to be Tom."   That's because Szaky has a history of pulling off the improbable. A number of Loop products, all of which are in reusable containers, are arranged before a Loop tote.  (Mark Kauzlarich for CNN) A number of Loop products, all of which are in reusable containers, are arranged before a Loop tote. (Mark Kauzlarich for CNN)   Eighteen years ago, as a freshman at Princeton, he came up with the idea to sell worm poop as a natural fertilizer. Szaky turned it into a business, and soon dropped out of college to make it grow.   He convinced Princeton undergraduates to work for free, and persuaded older friends to leave their steady jobs for leadership positions at the company. In its early years, leaning on paltry funds from investors and winnings from entrepreneurship competitions, TerraCycle teetered on the edge of collapse.   But then Szaky convinced big-box retailers like Home Depot and Walmart, which were already stocking established fertilizers like Miracle-Gro, to take a chance on his product. It's easy to see why they might have turned him down. TerraCycle's plant food was not only made from waste but packaged in waste, too: used soda bottles and discarded caps.   While Szaky was chasing meetings with major retailers, other eco-friendly companies and environmentalists were swearing to never work with the likes of Walmart. But Szaky has always believed that in order for his green products to make a difference, he would have to work with — not against — corporate America. He's taking that approach with Loop today.   "My goal consumer is someone in the middle of America who may still even not be convinced on climate change, because if I can get him to participate, then we can really change the world," he said. "This is why we're working with the largest manufacturers, the largest retailers. Because that is what America likes today."   Szaky has always been able to get people's attention.   In 2003, when he was just 23 years old, the Canadian Broadcasting Corporation ran a short documentary about TerraCycle. In it, Szaky talks openly about his fears and the risk he's taken, revealing that he asked investors for money to build a facility that would help fill nonexistent orders, and that he was pushing a new product he wasn't sure worked. His openness is charming, as is his obvious commitment to the cause: Szaky lugs furniture left behind by Princeton students back to a dilapidated house dedicated to putting up staffers over the summer, and refuses to buy any new packaging — or do anything the "normal" way. Three years later, at age 26, Szaky had landed on the cover of Inc. Magazine, which lauded TerraCycle as "the Coolest Little Start-Up in America."   Since then, he's written four books and maintained his status as a media darling, even launching a TerraCycle reality show called "Human Resources" on the now defunct network Pivot. It lasted for three seasons. Szaky, left, speaks with a coworker in his office. Recycled plastic bottles form a curtain that walls off his office at the TerraCycle headquarters in Trenton, New Jersey. (Mark Kauzlarich for CNN) Szaky, left, speaks with a coworker in his office. Recycled plastic bottles form a curtain that walls off his office at the TerraCycle headquarters in Trenton, New Jersey. (Mark Kauzlarich for CNN)   Szaky, now in his late 30s, is still able to punch above his weight. Two years ago, at the ritzy World Economic Forum in Davos, Switzerland, he landed a spot on stage with the CEOs of Walmart, Alibaba and Heineken to discuss the future of consumption. And he is still successful at enticing employees, some of which have taken major pay cuts, to work out of TerraCycle's modest headquarters in Trenton, New Jersey, which is decorated with trash.   Heather Crawford, vice president of marketing and eCommerce for Loop, left a managerial position at Johnson & Johnson to join TerraCycle in November. "Tom is a visionary who genuinely dreams about a waste-free world," she said. "He has these idealistic goals that he drives the whole team towards, and he asks people to do the impossible."   Over the years, TerraCycle evolved, moving on from fertilizer to transforming items that are difficult to recycle into something new. Today, TerraCycle repurposes used batteries, backpacks, coffee capsules, cooking oil and more. The company is doing well: In the first six months of 2019, TerraCycle reported net income of $1.8 million on revenue of $11.2 million. Sales were up 19% from the same period a year earlier, driven in part by new recycling partnerships with Gillette, Williams and Sonoma, Reebok and General Mills.   In September, TerraCycle also launched a car seat recycling event with Walmart. The event proved so popular, Walmart shut it down early, citing an "overwhelming response."   "We have a successful, profitable, growing business," Szaky said. The new venture could change that. With Loop, "we are sort of putting that on the line," Szaky noted.   "We've put close to 10 million of our own dollars into it. We're going to put even more," he added. "Any big idea requires that leap."   Convenience is key   In order for Loop to work, it has to be easy for consumers.   Today, consumers demand convenience, noted Pierce of Packaging Digest. "Without that — even with Tom and all of his strong partners, the consumer packaged goods companies — I don't know that it would work.   Especially when you think of the cost premium for this service," she said. "That convenience angle is everything."   Although Loop products are designed to cost about the same as their traditional counterparts, users do have to put down a deposit when they make a purchase online. The deposit can range from 25 cents to $10, depending on the item.   Consumers get it back unless they break, keep or lose the package. But some customers may be unwilling or unable to put down a deposit upfront. Individual deposits add up, and if people use the service for long periods of time, they won't get that money back for a while.   Szaky, who recognizes that the deposit could be a roadblock for some, aims to make Loop as convenient as possible. His hope is that customers will toss their empties into a used tote just as they would toss their empty containers into the trash. There's no need to wash them first: Loop handles the cleaning. And thanks to the rise of e-commerce, consumers see delivery as the most convenient option already.   Plus, in 2020, Loop products are slated to be available in major retailers like Walgreens and Kroger. That means, in addition to at-home pickup and delivery, consumers will be able to buy and drop off Loop products in person. Ultimately, Szaky wants to build a big enough network to allow customers to pop into one local store to buy a Loop product, and swing by another to drop a Loop package off.   For Szaky, ubiquity will be a marker of success.   "I would sit back and start feeling like we're doing it when I see Loop pop up unconsciously," he said. "I would feel we really got there where it's a common question of, 'Hey, would you like that in disposable or durable?'"   Szaky thinks things are moving in the right direction. Companies that committed to join the pilot with just a few products have added others, and more are in the pipeline. Loop currently includes 120 products and the service adds an average of two new products every week.   When new brands join, their competitors tend to hop on board, as well, afraid of being outdone. For example, Loop launched with reusable Häagen-Dazs ice cream containers, and soon "the biggest ice cream companies, their competitors, called us and said, 'How do we get involved? How do we go even bigger?'" Szaky recalled. This is "what competition is supposed to do, is keep making products better and pushing each other." Nestlé designed a reusable Häagen-Dazs container for Loop, sparking envy from its competitors. (Brinson + Banks for CNN) Nestlé designed a reusable Häagen-Dazs container for Loop, sparking envy from its competitors. (Brinson + Banks for CNN)   Today, Loop operates in parts of France and the East Coast in the United States, and is used by more than 10,000 people. Orders are continuously increasing each week, and repeat order rates are strong, the company says. Next year, the service will launch in London, Toronto and Tokyo, as well as parts of Germany and California.   Scaling up so broadly and so quickly is risky, however.   "One of the things that keeps me up at night is building out the actual operational scale-up plan," said Crawford.   A lot had to happen just to get Loop to the pilot phase. Companies had to develop new durable containers that were easy to clean and use. It took Nestlé 15 tries to get that envy-inducing ice cream container right. Szaky and his corporate partners have to make sure that packages are delivered, collected, cleaned and reshipped in a timely manner — a complex logistical proposition, especially considering how many different companies are involved. Loop currently uses one cleaning facility in Southeast Pennsylvania to process its US-based orders. But as it continues to expand, TerraCycle says it will need to add more facilities in other parts of the country.   For now, the project is small, and the Loop team is taking careful notes on consumer behaviors, complaints and preferences. But if Loop gets as big as Szaky wants it to, the system will have to work, impeccably, on its own.   "All of the moving pieces, logistically, operationally, new facilities in all of these regions and all of the steps and pieces that need to happen in the expansion plan is something that's going to take a tremendous amount of time and attention from our team, and also support from partners," Crawford said.   If things go wrong — orders get held up, items are out of stock, or people feel burdened by yet another shopping platform — people could give up on the idea of reusables.   Historically, consumers have often valued convenience over the environment. Starbucks, for example, has tried for years to get consumers to use reusable cups, selling durable versions of their cup for a few dollars and offering discounts to customers who bring their own mugs. But the company has consistently found that despite its efforts, just a small fraction of consumers actually bring their own cup to the store. Can Loop finally crack the code, convincing consumers to switch to reusables?   Meanwhile, the clock is ticking: companies participating in Loop won't wait forever for the concept to prove out.   Eventually, "their primary concern is going to be return to shareholders," Crawford said. "At some point in this process it needs to become profitable."   Experts are optimistic that this time, things could be different.   With Loop, Szaky's "timing is impeccable," said Pierce. Consumers are looking for solutions to the plastic waste crisis, and Loop could be a good one. Ultimately, companies may go in a different direction, like biodegradable wrapping or package-free grocery aisles instead of reusable containers. Szaky's company TerraCycle transforms hard-to-recycle items, like batteries, backpacks and coffee capsules, into something new. (Mark Kauzlarich for CNN) Szaky's company TerraCycle transforms hard-to-recycle items, like batteries, backpacks and coffee capsules, into something new. (Mark Kauzlarich for CNN)   No matter what, big corporations will have to seriously reconsider the way their goods are being sold. Unilever said on Monday that it plans to cut its use of non-recycled plastic in half by 2025. To deliver on that promise, the company will have to collect over 660,000 tons of plastic per year, and continue to innovate its product line. In addition to reusable packages, Unilever has tried out soap-like shampoo bars, bamboo toothbrushes and cardboard deodorant sticks, among other things.   "The challenge around packaging is not going to go away," said Tensie Whelan, director of NYU Stern School of Business's Center for Sustainable Business. "Growing regulatory scrutiny of it is not going to go away. Growing consumer concern about it is not going to go away. And growing cost of waste disposal and the environmental impact is not going to go away."   Szaky knows that his partners are in desperate need of a solution. When he first approached companies about Loop, he targeted ones that were featured on a Greenpeace list of worst plastics polluters, because he knew they had a potential public relations crisis on their hands. He's hoping that the scope of the problem will inspire the type of changes needed to make Loop a success.   "Loop is a gargantuan ask," Szaky acknowledged. "We're going into a Procter & Gamble and saying, 'reinvent the packaging of these world-famous products completely, build production lines to fill this reinvented package, oh, and, by the way, I have no proof if anyone's going to buy it at all.'"   And Szaky knows that people are paying attention to what he's doing. Loop has "a very big responsibility," he said. "I think a lot of people are going to think about whether there's a future in reuse by whether we succeed or not."

Plastic waste is everywhere in grocery stores. Can they cut down?

Stores like Aldi and Trader Joe’s are trying to decrease excess plastic, but experts say it’s not enough. a woman and child exam plastic-wrapped vegetables in a supermarket Plastic packaging can be both a blessing and a curse. It’s usually deployed to protect food, preserve freshness, and prevent spoilage and waste, which are all good things. At the same time, supermarkets can’t seem to help themselves from overpackaging items to the point of perversion, like a single banana — which already comes in its own Mother Nature-approved wrapper — plated on a Styrofoam tray and shrink-wrapped in even more plastic. Other forms of plastic appear completely gratuitous. Do pasta boxes really need tiny film windows for previewing the noodles? Supermarkets aren’t the only source of packaging waste, but they’re a major contributor. They’re also where most people interact with brands like Nestlé, which sells more than 1 billion products a day, 98 percent of which come in throwaway formats. When the Break Free from Plastic initiative audited more than 187,000 pieces of trash from 42 countries across six continents last October, the names that reared their heads most frequently were Coca-Cola, PepsiCo, and — yes — Nestlé. Supermarkets have been promoting recycling as a way out of this morass, but it hasn’t been enough, according to environmentalists, who say that single-use plastic needs to be purged from the get-go. It’s a concept that a growing breed of “zero-waste” grocers are experimenting with, too. “If your bathtub was overflowing, you wouldn’t reach for a mop to clean it up; you would turn it off at the source,” says David Pinsky, an anti-plastics campaigner at Greenpeace. “And that’s what we need to do on plastics.” LESS THAN 14 PERCENT OF THE NEARLY 86 MILLION TONS OF PLASTIC PACKAGING PRODUCED GLOBALLY EACH YEAR IS RECYCLED The fact of the matter is we’re not doing a good enough job of recapturing plastics, which are made from nonrenewable resources such as crude oil and natural gas and contribute to climate change throughout their life cycle. Less than 14 percent of the nearly 86 million tons of plastic packaging produced globally each year is recycled, and of that, only 2 percent goes into high-value applications. The rest is landfilled, incinerated, or buffeted into the environment, where it clogs up the seas, the beaches, and the digestive tracts of sea life. Much of the trouble with recycling plastic is it’s “incredibly finicky,” says Darby Hoover, a senior resource specialist at the Natural Resources Defense Council. Different municipalities accept different types of plastic, and the little triangle with the number at the bottom of a plastic container — if you can even find it — refers to the type of resin and not if or how it can be recycled. Sometimes, despite a recycling facility’s best efforts, a plastics stream becomes contaminated, which impairs sellability. But even if a facility does get it right, there isn’t always a market to funnel all the different types of plastic. “What’s been happening with China, in particular, is that it was America’s No. 1 buyer of plastic and paper, but now it’s saying that the stuff we send to them needs a much lower contamination rate, and we can’t do that,” Hoover says. Complicating the matter is complex packaging such as Tetra Pak cartons — the type plant-based milks, soups, and broths come in — and Capri Sun-type juice pouches — which contain different layers of material fused together — are even more difficult to reclaim. “So they’ve got aluminum and different types of plastic, then a bunch of glue that holds it all together,” Hoover says. “It’s very, very hard to separate out all those materials and figure out how to recycle any of them.” THE GLOBAL PLASTIC PACKAGING MARKET IS EXPECTED TO SOAR TO $412 BILLION IN 2024 The problem isn’t going away anytime soon. Plastic packaging is a booming industry with a powerful lobbying presence that can block lawmakers from enacting bans on plastic bags, Styrofoam containers, and other landfill fodder. Fueled by growing demand for flexible and functional food and beverage packaging, the global plastic packaging market is expected to soar from a value of $344 billion today to $412 billion in 2024. We throw away most single-use plastics within minutes of use, yet they can persist in the environment for 1,000 years. “We do need to fundamentally rethink the way that we use plastics,” says Sara Wingstrand, project manager of the Ellen MacArthur Foundation’s New Plastics Economy initiative, which has rallied more than 350 businesses, governments, and other organizations, including Coca-Cola, PepsiCo, Unilever, Walmart, and Target, in 2018 to support the elimination of unnecessary plastic packaging and transition the rest to reusable, recyclable, and compostable versions by 2025. “Recycling is a part of the solution, but it’s becoming evident that there is no way that we can recycle our way out of the plastic pollution crisis.” One key hurdle is that supermarkets are often blissfully unaware of how much plastic they’re employing. The material is relatively cheap and it makes up a fraction of a business’s operating expenses, Wingstrand says. And the thing is, you can’t reduce what you haven’t measured. Some supermarkets are trying, though. In South Africa, the supermarket chain Pick and Pay is trialing packaging-free “nude zones,” where customers can bring their own containers for fruits and vegetables that are laser-etched with the supplier code and sell-by date in lieu of plastic stickers. Similar “food in the nude” campaigns are taking place at grocers in New Zealand, which banned single-use plastic bags in July. This past April, Metro, a supermarket chain in Quebec, became Canada’s first major grocer to allow its customers to fill up their own reusable containers with meat, seafood, pastries, and ready-to-eat meals. https://cdn.vox-cdn.com/thumbor/u-Xqw_V0nRmznEIr5ktTg8u209A=/0x0:7200x5141/1200x0/filters:focal(0x0:7200x5141):no_upscale()/cdn.vox-cdn.com/uploads/chorus_asset/file/19235711/GettyImages_1168981697.jpg Shoppers examine bags of salad at a PriceChopper supermarket. Robert Nickelsberg/Getty Images The United Kingdom, where a “polluter’s tax” on any single-use packaging that doesn’t contain at least 30 percent recycled materials is poised to debut in April 2022, is also making strides. Its major supermarkets have committed to a UK Plastics Pact to design out “problematic or unnecessary” single-use packaging by 2025. Waitrose is piloting refill stations at select stores for pasta, wine and beer, and detergent, and Sainsbury’s plans to introduce refillable packaging “at scale.” As part of its pledge to use only reusable, recyclable, or compostable packaging by 2025, Aldi has banned black plastic trays, which near-infrared sensors at recycling centers have trouble picking out from a sorting belt. Tesco, Britain’s largest supermarket, has convened with its suppliers to examine solutions that may require a design or materials overhaul. It’s even mulling banishing brands that use “excessive or inappropriate” packaging. It should come as no surprise that supermarkets in the US — bolstered by America’s corporate-friendly policies — have lagged behind. “Europe is probably more favorably predisposed to regulation and restrictions,” says Neil Saunders, managing director of retail at GlobalData, an international data-analytics consultancy. (Case in point? The European Union has a roadmap for making all plastic on the European market recyclable by 2030.) “Whereas the US is much more focused on freedoms of companies and individuals, and government is probably a lot more reluctant to legislate on certain things.” “THE [US] GOVERNMENT IS PROBABLY A LOT MORE RELUCTANT TO LEGISLATE ON CERTAIN THINGS” That isn’t to say there has been zero progress. Target is working on ditching expanded polystyrene foam packaging from its own-brand packaging by 2022. Select products in its Everspring line of home essentials are packaged in containers with up to 100 percent post-consumer recycled plastic. Costco has eschewed PVC clamshell packaging, which is not recyclable and can leach toxic chemicals when it degrades, for recyclable PET or recycled PET made from water bottles. Straws and Styrofoam meat trays are now verboten at Whole Foods, which is also replacing its hard plastic rotisserie chicken containers with bags that use roughly 70 percent less plastic, a spokesperson says. Walmart, the world’s No.1 brick-and-mortar retailer, aims by 2025 to incorporate at least 20 percent post-consumer recycled content in its own-brand packaging, which will also be 100 percent recyclable, reusable, or industrially compostable. In terms of general merchandise packaging, Walmart says it will work with suppliers to nix PVC by 2020. But a June report by Greenpeace, which rated 20 leading US supermarkets on their efforts to eliminate single-use plastic, found a universal failure to “adequately address the plastic pollution crisis they are contributing to.” In fact, no supermarket scored more than 35 out of a possible 100 points. Even the American iteration of Aldi, which rose to No. 1 for setting out a plastics reduction target and plan, needs to ramp up its ambitions, according to Pinsky. Since 90 percent of the products on its shelves are private label, rather than from name-brand suppliers, Aldi has a bigger say in its packaging decisions. “Aldi’s only committed by 2025 to reduce its plastic footprint by 15 percent,” he says. “So while some supermarkets are starting to take small steps in the right direction, none are acting with the urgency or the ambition that’s needed to truly tackle the plastic pollution crisis.” Transparency, Pinsky says, is a sticking issue. No supermarket, for instance, publicly reports its plastic footprint, which makes it difficult for the public to evaluate progress year over year. Time-bound, comprehensive plans are still few and far between. And some grocers are merely substituting one single-use material for another, as in the case of Trader Joe’s, which drew plaudits earlier this year for plans to strip its stores of 1 million pounds of plastic by removing plastic bags from its checkout counters, switching to compostable produce bags, and replacing Styrofoam trays with recyclable alternatives. But plant-based bioplastics, which stores increasingly favor, can still contribute to microplastic pollution if released into the environment, Pinksy notes, and molded fiberboard could harbor cancer-causing chemicals. “WE NEED TO SHIFT OUR CULTURE BACK TO MORE REUSE SYSTEMS” “It’s clear that recycling or substituting materials is not going to solve this problem; we need to see a focused reduction of plastic production in the first place,” he adds. “We need to shift our culture back to more reuse systems.” One result of the plastics backlash is the idea of the zero-waste supermarket. Brianne Miller, a marine biologist, was so sickened by the swaths of plastic that greeted her in different dive sites around the world — even the remote ones — that she left academia to co-found Nada, a zero-waste grocer that is not only the first of its kind in downtown Vancouver but in all of Canada. At Nada, everything, including fruits, vegetables, meats, grains, cheeses, nut butters, and sauces, is sold loose. Customers can load up their own jars, containers, and drawstring bags, or pick up cleaned and sanitized ones that are available for sale. Depending on what they need, they can pick up a barrel of crackers or just a handful. But customers are just one piece of Nada’s master plan; the store also works with its suppliers to deliver their products free of disposable packaging. “In many instances, suppliers are dropping off products every couple days or every week, so it’s quite easy, for example, to have things like coffee beans dropped off in a reusable Rubbermaid tote,” Miller says. “And then when the next shipment comes in, the container goes back to the supplier, and then it’s refilled and reused again, so we have this circular loop of containers that are coming and going from our store.” Nada sources as close to the store as possible, which helps with the minimalist approach, since products don’t have to be coddled across vast distances. “Instead of shipping cucumbers from across the country, we have the local farm, so that packaging isn’t necessary in the first place,” she says. Zero-waste supermarkets, especially full-service ones like Nada, may seem like an answer to our plastic packaging problem, except they’re still a rarity. In.gredients, an East Austin business that billed itself as America’s first zero-waste grocery store, shuttered permanently in 2018. There is a smattering of others in London, Berlin, Amsterdam, Stockholm, and Hong Kong, but they are largely boutique outfits with narrow aisles and more hipster appeal than options. For the vast majority of people, single-use plastics are still an inescapable aspect of their shopping reality. One other solution is a return to the old “milkman delivery” model of yore. The brainchild of TerraCycle, a New Jersey-based “waste solution development” firm, Loop offers popular products — think Häagen-Dazs ice cream, Hidden Valley ranch dressing, Tropicana orange juice, and Quaker Oats oatmeal — in durable glass and aluminum tubs designed to be returned, cleaned, and refilled. Nestlé, Procter & Gamble, Unilever, PepsiCo, Coca-Cola, and Danone are just some of the marquee names that have thrown in their support. Loop has also roped in a number of retail partners, including Kroger and Walgreens in the United States, Tesco in the United Kingdom, and Carrefour in France. “It’s super important to us to meet consumers where they’re already shopping,” says Heather Crawford, Loop’s vice president of marketing and e-commerce. Unlike with bulk or zero-waste supermarkets, customers don’t have to sling their own containers or wash them, which could help adoption. “People want a better, more sustainable option with less waste, but they’re not always willing to change their behaviors to get there,” she says. “Loop removes all of the friction from the systems that exist in the current zero-waste solution.” Tory Gundelach, vice president of retail insights at the consulting agency Kantar, sees a growing desire from customers for forward-thinking efforts such as Loop. “Younger shoppers, particularly, are becoming more attuned to the effect of their actions on the environment or society as a whole,” she says. “Shoppers increasingly want to see the retailers and brands they engage reflect their own personal values.” Nearly two-thirds of millennials and Gen Z-ers say they prefer “brands that have a point of view and stand for something,” Kantar’s research has found. And therein lies supermarkets’ business proposition. Reducing packaging through resource-efficient design or losing it altogether can save money on raw materials and shipping costs — always a plus for the bottom line — but it can also win over a demographic that is only going to grow into its spending power. “Shoppers are telling us, ‘I’m putting my dollars against the retailers and the brands that feel like they have values that line up with my values,’” Gundelach says. “And to do that, of course, brands and retailers have to put out what their values are that they stand for.”

Unpackaged Eco explores shop, refill, return model

https://insidefmcg.com.au/wp-content/uploads/2019/09/Unpackaged-Eco.jpg With climate change front and centre in the mind’s of consumers in Australia and around the globe, FMCG businesses and retailers are removing plastic, cutting back on packaging and reducing food waste, to say the least. But pressure is building to reduce waste further across the supply chain and in stores. Zero waste retailers are no longer a myth and are starting to gain momentum in the current climate. In August, Australia’s largest bulk foods and zero waste retailer The Source Bulk Foods unveiled its first outlet in Singapore. And earlier this week, Coles announced that it was trialling its first zero waste to landfill store as part of its sustainability initiatives. Irene Chen, founder and CEO of Unpackaged Eco, is working with Australian suppliers and retailers to help make zero waste achievable. Unpackaged Eco is a Melbourne-based shop, refill and return model, similar to the Loop model developed by Terracycle and used by Nestlé, Coca-Cola, PepsiCo and Mondelēz, to name a few. The start-up was founded just under 12 months ago, borne from Chen’s own frustrations about waste as a consumer. “I saw the plastic waste issue and felt a little bit helpless about what I could do from a practical perspective, and I realized that perhaps there’s another solution to this,” Chen told Inside FMCG. With a background in retail, she started to examine it from that perspective. https://insidefmcg.com.au/wp-content/uploads/2019/09/Unpackaged-Eco-1.jpg “Unpackaged Eco is a way for consumers to purchase their everyday products in reusable and durable packaging. We give them the option to come back and refill in-store. When they’re done with their container, they return it back to us, we clean and return it back to be reused,” Chen explained. Unpackaged Eco has launched a private label range across four shops in Melbourne with manual dispensers in-store to test the refill model for products such as dish washer liquid, handwash, laundry liquid and multi cleaner. The team are also looking to venture into shampoo and conditioner as well as dry food and eventually dairy and other groceries. “I think one of the learnings that we’ve had from early trials and feedback from customers is that, they want to shop zero waste across the board, not just two or three items. Otherwise, it’s just a lot of trouble to go to five different shops. Our aim is to offer a good basket of products to customers, and obviously, with brands involved it will really elevate the offering.” https://insidefmcg.com.au/wp-content/uploads/2019/09/kindeco-600x401.jpg The business is also developing technology that uses a combination of radio-frequency identification (RFID) and quick response (QR) to track every single container. “We want to harness that whole refill, shop, return model, and collect data to enable us to make better decisions around packaging; to understand consumption patterns a bit better, to help brands and retailers really get some customer insights on how they shop. So that’s very exciting. We’re just under six months away from a trial launch.” Customers will be able to tap to borrow containers, and tap to return. The container deposit management system is automated to make borrowing and returning seamless. “The technology will help us get a little bit closer to the customer. We’re so used to disposing so to actually encourage a shift in behavior, I think we need to do a bit more than just put a refill station there. I think we need to actually engage with the customer,” Chen said. Commenting on industry efforts on sustainability, Chen believes the intentions and goals are right. “I’m talking to most of the brands, they all have the similar 2025 packaging targets, which is great. I think what’s missing for us as a means to get there.” She expects brands may be reluctant to commit to costs of such a project but said it needs to be viewed as a long-term solution. “Packaging now, instead of being a single use disposable thing, is an investment. So you lay out more upfront, but the more times you reuse it, and refill, the more you save,” she said.

Sustainable Packaging: The Reuse Revolution

TerraCycle’s Loop leads the charge as brands, retailers and consumers all express a desire to reduce packaging waste https://assets1.consumergoods.com/styles/content_sm/s3/2019-09/P%26G_-_Tide.jpg?itok=FfpB_Qhs TerraCycle launched its Loop initiative in the spring, giving consumer packaged goods brands a platform to have their products delivered in reusable containers, as in the old days of the milkman bringing glass bottles to the doorstep. What followed was a small pilot in the Northeast that quickly garnered a waiting list of 90,000 consumers requesting the service.   “If we tried to launch [Loop] five years ago, I don’t know if it would’ve worked,” says Anthony Rossi, the program’s global vice president of business development. “But if there’s one thing we’ve seen so far, it’s that the consumer is now ready.”   A recent Nielsen survey found that 75% of consumers globally would “definitely” or “probably” change their consumption habits if doing so would have a positive effect on the environment; nearly half of U.S. consumers said likewise.   “And these consumers are putting their dollars where their values are, spending $128.5 billion on sustainable fast-moving consumer products this year,” says Kyle McKinley, vice president of design solutions at Nielsen. “Since 2014, these influential shoppers have grown sustainable product sales by nearly 20%, with a compound growth rate that’s four times larger than conventional products.” Nielsen expects sustainable-friendly shoppers in the U.S to spend upward of $150 billion on sustainable goods by 2021.

Good for Business

  Reducing waste isn’t just good for the world, it’s good for business. With consumers showing signs of wanting to play their role in reducing waste, brands and retailers are motivated to develop more sustainable goods and packaging options. Just this summer, a coalition of industry companies including Procter & Gamble, PepsiCo and SAP founded the Brands for Good coalition; separately, a host of CPGs, retailers and packaging providers formed the Sustainable Packaging Coalition. (Neither group responded to requests for an interview.)   Participants in the Brands for Good coalition are making commitments to embed social purpose into their brand promises and products; to use brand influence to make sustainable living accessible for consumers; and to collaborate with other players to change behavior to create a positive impact on the planet. Each company will launch its own projects with that shared mission in mind.   P&G played an integral role in the launch of Loop and is one of more than 100 brands already working with the platform. Three years ago, the CPG giant stood side by side with TerraCycle at the World Economic Forum to discuss its use of ocean plastics in Head & Shoulders bottles, and at that time began discussing the idea of reusable services. It has since also launched Tide Purclean, a plant-based liquid detergent, and has an overall goal to make all product packaging recyclable or reusable by 2030.   Other major CPGs such as Coca-Cola, PepsiCo, General Mills, Unilever and Diageo, to name a few, have set similar public goals in an effort to reduce global waste by making packaging more recyclable.

Making a Commitment

  Nestle, another founding Loop partner, has “committed to making 100% of our packaging recyclable or reusable by 2025,” says Elizabell Marquez, director of marketing for the company’s Haagen-Dazs brand. The Nestle Institute of Packaging Sciences was created last year to advance these efforts, she notes. https://assets1.consumergoods.com/styles/content_sm/s3/2019-09/The_Clorox_Company_-_Disinfecting_Wipes1.jpg?itok=0AoUJ0yH

  Clorox Co., also a Loop partner, is expected this month to announce an “ambitious product and packaging-related sustainability strategy as part of our broader environmental, social and governance strategy,” promises Andrea Rudert, associate director, corporate responsibility. Clorox previously set a goal to improve the sustainability of half of its product portfolio by 2020, with 2011 being the baseline year.   “We surpassed that goal two years early,” Rudert says. “In fact, as of the end of our 2019 fiscal year, we made sustainability improvements to 58% of our product portfolio.” The company has recyclable primary packaging for 92% of its lineup.   Other manufacturers making sustainable commitments include SC Johnson, which last spring launched Windex in special packaging at Target, Walmart and other retailers. The bottles are made from 100% recycled ocean plastic and are non-toxic and cruelty-free.   Windex is also planning this fall to launch a “Social Plastic” bottle that will include recycled ocean-bound social plastic sourced by Plastic Bank from Haiti, the Philippines and Indonesia. The effort is designed to help the environment but also provide social benefits to people living below the poverty line in those nations, according to a company release.   SC Johnson also expanded Windex’s concentrate cleaner offerings into products from such brands as Pledge, Scrubbing Bubbles, Shout and Fantastik. The concentrate refill bottles use 80% less plastic compared to a brand new, larger trigger bottle; consumers mix tap water with the concentrate into a reusable trigger bottle to significantly reduce plastic waste.   Elsewhere, Hasbro will phase out the use of plastics in its packaging beginning in 2020, doing away with the polybags, elastic bands, shrink wrap, window sheets and blister packs that have long been part of the toy buying experience. The company eliminated wire ties from packaging in 2010, and has been working with TerraCycle to recycle materials from old toys and games to make innovative social spaces and items like play areas, flowerpots and park benches.   Yet another TerraCycle partner, Colgate-Palmolive, has been recycling used toothpaste tubes and toothbrushes into playground materials. The company also recently unveiled a recyclable toothpaste tube that will launch in 2020 via the Tom’s of Maine brand but extend to all brands by 2025. The tube uses the “number 2” plastic commonly found in soda bottles.

In the Loop

  With TerraCycle’s two-decade-long history of working with brands to eliminate waste, it’s no surprise the company was able to partner up with manufacturers such as P&G, Unilever, Bic, Mars and Danone to launch a strategy around reusable packaging. TerraCycle began as a solution to help brands recycle products that aren’t recycled at traditional facilities, such as cigarette butts, chip bags and various personal care products. That remains the company’s largest operation. Second to that effort is working with brands to integrate recycled content into its packaging, as it did through the aforementioned efforts with P&G’s Head & Shoulders on the ocean plastics and Colgate for playground materials.   TerraCycle’s newest business unit is Loop, which Rossi describes as “dusting off the idea of the milkman and bringing it to any product that’s single-use today.” Loop is, in fact, a way to completely eliminate packaging waste. “Recycling is a Band-Aid on a cut, and what we need to do is attack the problem at its core. And the problem is single use and disposability.”   Nestle became a founding partner of Loop because the concept presents an “innovative and disruptive approach to changing how products are packaged – and delivered – and how consumers enjoy them,” says Marquez.   The short of it: Shoppers buy a brand’s durable, reusable (and exclusive) Loop packaging, which gets delivered through Loop in a special tote bag. When the contents are up for a refill, the user puts the packaging back in the Loop bag for free pickup; Loop then sanitizes the packaging to be refilled by the brand and shipped back to the user.   Kroger and Walgreens in the U.S, as well as Carrefour and Tesco in Europe, are Loop’s current retail partners. They help sell and distribute the Loop platform, with consumers signing up for Loop through the retailers.   A key element to the model is the brand’s involvement with the packaging. While Loop helps brands develop containers that can be used hundreds of times, can be sanitized and are strong enough to withstand the frequent shipping, they remain the brand’s asset.   Nestle, for example, owns the sleek, steel Haagen-Dazs container it developed for Loop, which Marquez says is a way to show that sustainability can be delivered in upscale, premium wrapping. The stainless steel container is etched with the familiar Haagen-Dazs tapestry, carries double lining for extra cooling and has an easy twist-off top, she explains.   “Loop is encouraging participating brands to create durable and reusable packaging designs that are more visually appealing,” says Rudert at Clorox. “The hope is that consumers will keep products on their countertops because they are ‘show off’ worthy.”   Clorox teamed with Loop for its pilot launch, testing a container for Clorox disinfecting wipes and a bottle for Hidden Valley Original Ranch dressing. (Glad food protection products are in the works.) Other Loop packaging examples include a simple, white container for Mars pet food; a Nature’s Path granola jar; and P&G’s range of chic steel or glass bottles for Tide, Crest mouthwash and other products.   “A lot of times, innovation in sustainability is perceived to start with these smaller, grassroots brands, and we keep sustainability on the fringes and we target that eco-friendly person,” Loop’s Rossi says. “What’s exciting about Loop is we’re trying to make sustainability irresistible to everyone. We’re working with big national brands and big national retailers, because for us to have the positive environmental impact that we want to have, sustainability can’t be kept to the fringes of society. It needs to be in everyone’s house.” https://assets1.consumergoods.com/styles/content_sm/s3/2019-09/Nestle-Haagen_Dazs_Lifestyle-TEASER_0.jpg?itok=rkO8tmbw

Going Forward

  Rossi’s somewhat Utopian vision is to see Loop operating nationwide, in every ZIP code, within five years. In the meantime, he encourages brands to think about incorporating more recycling into the design process. For example, if a detergent brand has decided to use “number 2” plastic (one of the most recyclable materials) but designs it in black, that’s a color that recycling machines often don’t pick up.   The Rochester Institute of Technology has been studying sustainability in packaging since the 1980s, says Dan Johnson, professor and chair of the school’s department of packaging science. Its efforts take a full supply chain view, examining issues such as transportation energy and product damage, not just material use and formats.   “Brands need to remember that not all successes in sustainability need to be customer-focused,” Johnson says, adding that consumer behavior around sustainability can be a bit of a wild card. “A good deal of the wins are only detectable by packaging geeks like our faculty, but [those actions] may be the largest contributor to meeting corporate sustainability goals around packaging.”   Johnson is inspired by some of the brand activity out there today, but warns that “economic and technical challenges in the recycling process are creating a shortage of both quality recycled raw material and credible outlets for collected recyclables. Thankfully, this gap in technology is beginning to be addressed by advances in areas like chemical recycling and advanced mechanical sortation technology.”   Back on the consumer-facing front lines, Nielsen’s McKinley says brands must stay true to who they are when considering their sustainable packaging designs. “As you act on collective sustainability needs in an authentic way for your brand, leverage the tools you already have: everyday analytics, innovation testing, consumer resonance and more.”   Clorox’s Rudert adds that brands and retailers should continue to raise greater consumer awareness on the urgent need for more sustainable commerce models. “When consumers are willing to pay for these products, companies will be incentivized to invest in the innovations needed to create sustainable change.”

TerraCycle Adds Loop To Its Circular Economy Repertoire

TerraCycle Adds Loop To Its Circular Economy Repertoire

Older readers may remember the days when the milkman would take away your empty milk bottles and replace them with full ones. CocaCola and hundreds of other products came in reusable containers. Commerce operated on what was known as the circular economy principle — the packaging that protected consumer products got returned to the source, cleaned, and used again and again. Then came plastics, those space age wonders that allowed anything and everything to be packaged in single use containers that were simply discarded. Corporations loved them because they were cheap and relieved them of the burden of collecting all those glass bottles and reusing them. What used to be considered a necessary part of doing business now became somebody else’s problem. As usual when an economic model allows companies to privatize the profits but socialize the costs, profits soared. Society, unfortunately, has not been so lucky. Today, millions of tons of plastics are resting for all eternity in landfills or floating in the world’s oceans. Pictures of plastic waste have been circulating on the internet for the past few years, showing mounds of plastics washed up on beaches on some of the world’s most remote islands. Microplastics have been found in the deepest parts of the ocean an atop the highest mountains. The public is finally recognizing that plastic waste is a huge problem that is getting worse by the day. TerraCycle is a global company that sees a business opportunity in promoting a circular economy. “We have found that nearly everything we touch can be recycled and collect typically non-recyclable items through national, first-of-their-kind recycling platforms,” it says on its website. “Leading companies work with us to take hard-to-recycle materials from our programs, such as ocean plastic, and turn them into new products, and our new Loop platform aims to change the way the world shops with favorite brands in refillable packaging offered with convenience and style.”

Introducing Loop

Loop tote

Credit: Loop

Recently, TerraCycle created a wholly owned subsidiary called Loop. “We envision the future of how we consume as a place where we receive higher quality, better designed products, that we can “throw in a bin” when they are finished with no cleaning, no sorting, and no hassle. But instead of that bin being a trash or recycling bin, it’s a Loop reuse bin, where everything is cleaned and goes around again and again. The future is not just about sustainability, it’s about a better life, where we can access breakthrough sustainability unconsciously.” At the latest World Economic Forum meeting, Loop announced it had formed circular economy partnerships with Procter & Gamble, Nestlé, PepsiCo, Unilever, Mars, Clorox, Coca-Cola, Mondelēz, and Danone. Customers can order products from a variety of companies that are shipped to them in returnable and reusable containers packed inside a reusable blue Loop container. When the products are consumed, the containers are placed inside a similar Loop container, picked up by UPS or other package delivery service, and returned to the point of origin for re-use. Customers pay a modest service fee of the use of the Loop container. CleanTechnica reader Jessica Feinleib uses the Loop service and can’t say enough good things about it. “This is a great clean tech idea,” she says. Taming the torrent of single use plastic containers is vital to reducing the amount of carbon dioxide in the atmosphere. According to an article from EDF on Medium, the International Energy Agency claims in a recent study that the manufacture of plastics will be one of the biggest drivers of an increase in the use of petroleum between now and 2050. In other words, we can all start driving electric cars but oil production — and the carbon emissions from oil — will continue to rise unless we do something about our insatiable appetite for single use plastics. In the final analysis, destroying the world for the sake of convenience is a monumentally dumb idea.