With an estimated 8 million tons of plastic disposed of in oceans every year, plastic waste in the world’s waterways has become a truly global problem. According to the Ocean Conservancy, over half of the plastic that ends up in our oceans come from five countries – China, Indonesia, the Philippines, Thailand and Vietnam – a result of rapidly growing economies and consumer demand, which have not yet been met with sustainable waste-management systems.   In recognition of this growing epidemic, international Trenton-based recycling leader TerraCycle created The TerraCycle Global Foundation. With generous financial support from The PepsiCo Foundation, the company’s philanthropic arm, the TerraCycle Global Foundation is a dedicated public charity on a mission to dramatically reduce the volume of marine debris and plastic waste found in the world’s waterways.   “Tackling plastic waste is vital for both environmental protection and economic development in communities across the world,” said Jon Banner, EVP Global Communications and President, The PepsiCo Foundation. “At PepsiCo, we take very seriously our commitment to building a world where plastic need never become waste. We are proud to be the angel investor to create the TerraCycle Global Foundation, helping to catalyze funding others and enable the recovery of tons of plastic waste from our waters.”   The TerraCycle Global Foundation’s work is actively underway in Thailand, where the TerraCycle Thai Foundation, a locally registered independent non-profit, is collaborating with the Department of Marine and Coastal Resources (DMCR). The Foundation has installed river plastic capture traps which are designed to increase the amount of debris and marine plastics that are collected from Thai waterways, thereby intercepting it before it reaches and pollutes the ocean. The devices are part of the DMCR’s project to integrate action and participation into marine debris management.   Through its relationships with regional waste management companies, as well as TerraCycle Inc.’s larger network of research and development, and logistical and processing partners, the Foundation will sustainably recycle not only the waste collected through its own collection devices and efforts, but also the waste collected by all the other organizations participating in the Thai government’s marine debris management program. The end goal is to use recycled waste to create materials that can be incorporated in various applications—from primary packaging for major global brands to applications such as road or construction materials.   “Cleaning the country’s rivers and canals is a critically important priority for the Thai government,” said Suwan Nanthasarut, Senior Advisor, DMCR. “The Department of Marine and Coastal Resources is pleased to have public-private cooperation from nonprofit organizations like the TerraCycle Thai Foundation to assist in our river cleanup efforts.”   With plans to expand to local communities throughout central and Southeast Asia where local waste management systems are overwhelmed, the TerraCycle Global Foundation is working to implement a multi-collaborator, circular system of solutions designed to clean up waterways, increase waste collection and capture more recyclable material. The Foundation will also be educating local communities on how their behaviors impact their environment and ways to prevent and reduce plastic pollution.   “Through the Foundation, we hope to lead international public awareness about the need to address river and ocean plastics” said Tom Szaky, Chairman of the Board, TerraCycle Global Foundation. “By directly collecting, as well as engaging with a wide range of NGOs to collect plastic from waterways, and using our recycling solutions to process it into a high-grade material that manufacturers can integrate it into new products, we want to show there is value in these otherwise discarded plastics.”   By capturing marine plastic waste and finding recycling solutions for the collected materials, the Foundation offers a holistic approach to reducing plastic waste to create meaningful, long-lasting change that can be replicated across around the world. To learn more about the TerraCycle Global Foundation visit www.terracyclefoundation.org.

With an estimated 8 million tons of plastic disposed of in oceans every year, plastic waste in the world’s waterways has become a truly global problem. According to the Ocean Conservancy, over half of the plastic that ends up in our oceans come from five countries – China, Indonesia, the Philippines, Thailand and Vietnam – a result of rapidly growing economies and consumer demand, which have not yet been met with sustainable waste-management systems.   In recognition of this growing epidemic, Trenton-based TerraCycle created The TerraCycle Global Foundation. With generous financial support from The PepsiCo Foundation, the company’s philanthropic arm, the TerraCycle Global Foundation is a dedicated public charity on a mission to dramatically reduce the volume of marine debris and plastic waste found in the world’s waterways.   “Tackling plastic waste is vital for both environmental protection and economic development in communities across the world,” said Jon Banner, EVP Global Communications and President, The PepsiCo Foundation. “At PepsiCo, we take very seriously our commitment to building a world where plastic need never become waste. We are proud to be the angel investor to create the TerraCycle Global Foundation, helping to catalyze funding others and enable the recovery of tons of plastic waste from our waters.”   The TerraCycle Global Foundation’s work is actively underway in Thailand, where the TerraCycle Thai Foundation, a locally registered independent non-profit, is collaborating with the Department of Marine and Coastal Resources (DMCR). The Foundation has installed river plastic capture traps which are designed to increase the amount of debris and marine plastics that are collected from Thai waterways, thereby intercepting it before it reaches and pollutes the ocean. The devices are part of the DMCR’s project to integrate action and participation into marine debris management.   Through its relationships with regional waste management companies, as well as TerraCycle Inc.’s larger network of research and development, and logistical and processing partners, the Foundation will sustainably recycle not only the waste collected through its own collection devices and efforts, but also the waste collected by all the other organizations participating in the Thai government’s marine debris management program. The end goal is to use recycled waste to create materials that can be incorporated in various applications—from primary packaging for major global brands to applications such as road or construction materials.   “Cleaning the country’s rivers and canals is a critically important priority for the Thai government,” said Suwan Nanthasarut, senior advisor, DMCR. “The Department of Marine and Coastal Resources is pleased to have public-private cooperation from nonprofit organizations like the TerraCycle Thai Foundation to assist in our river cleanup efforts.”   With plans to expand to local communities throughout central and Southeast Asia where local waste management systems are overwhelmed, the TerraCycle Global Foundation is working to implement a multi-collaborator, circular system of solutions designed to clean up waterways, increase waste collection and capture more recyclable material. The Foundation will also be educating local communities on how their behaviors impact their environment and ways to prevent and reduce plastic pollution.   “Through the Foundation, we hope to lead international public awareness about the need to address river and ocean plastics” said Tom Szaky, chairman of the board, TerraCycle Global Foundation. “By directly collecting, as well as engaging with a wide range of NGOs to collect plastic from waterways, and using our recycling solutions to process it into a high-grade material that manufacturers can integrate it into new products, we want to show there is value in these otherwise discarded plastics.”   By capturing marine plastic waste and finding recycling solutions for the collected materials, the Foundation offers a holistic approach to reducing plastic waste to create meaningful, long-lasting change that can be replicated across around the world.

With an estimated 8 million tons of plastic disposed of in oceans every year, plastic waste in the world's waterways has become a truly global problem. According to the Ocean Conservancy, over half of the plastic that ends up in our oceans come from five countries - China, Indonesia, the Philippines, Thailand and Vietnam - a result of rapidly growing economies and consumer demand, which have not yet been met with sustainable waste-management systems.   In recognition of this growing epidemic, TerraCycle created The TerraCycle Global Foundation. With  financial support from The PepsiCo Foundation, the company's philanthropic arm, the TerraCycle Global Foundation is a dedicated public charity on a mission to dramatically reduce the volume of marine debris and plastic waste found in the world's waterways.   "Tackling plastic waste is vital for both environmental protection and economic development in communities across the world," said Jon Banner, EVP Global Communications and President, The PepsiCo Foundation. "At PepsiCo, we take very seriously our commitment to building a world where plastic need never become waste. We are proud to be the angel investor to create the TerraCycle Global Foundation, helping to catalyze funding others and enable the recovery of tons of plastic waste from our waters."   The TerraCycle Global Foundation's work is actively underway in Thailand, where the TerraCycle Thai Foundation, a locally registered independent non-profit, is collaborating with the Department of Marine and Coastal Resources (DMCR). The foundation has installed river plastic capture traps which are designed to increase the amount of debris and marine plastics that are collected from Thai waterways, thereby intercepting it before it reaches and pollutes the ocean. The devices are part of the DMCR's project to integrate action and participation into marine debris management.   Through its relationships with regional waste management companies, as well as TerraCycle's larger network of research and development, and logistical and processing partners, the foundation will sustainably recycle not only the waste collected through its own collection devices and efforts, but also the waste collected by all the other organizations participating in the Thai government's marine debris management program. The end goal is to use recycled waste to create materials that can be incorporated in various applications, from primary packaging for major global brands to applications such as road or construction materials.   With plans to expand to local communities throughout central and Southeast Asia where local waste management systems are overwhelmed, the TerraCycle Global Foundation is working to implement a multi-collaborator, circular system of solutions designed to clean up waterways, increase waste collection and capture more recyclable material. The foundation will also be educating local communities on how their behaviors impact their environment and ways to prevent and reduce plastic pollution.

With the coronavirus pandemic forcing me to order more things than ever online — from groceries to toiletries to fancy dried beans — I’m accruing quite a lot of single-use packaging at my house. And I feel bad about it. Maybe I’ll soon be able to assuage some of that guilt when Loop, the reusable packaging service, expands nationwide over the next few months (tip via Fast Company). Loop, an initiative from recycling company Terracycle, sells name-brand CPG products directly to consumers that are packaged in reusable containers made from metal and glass. After the consumers use them up, they put the empty containers back in the tote they came in and Loop picks them up to be sterilized and refilled. Loop launched in the U.S. last May with a pilot program in the Mid-Atlantic region of the U.S. According to an Instagram post from the company, Loop will roll out its reusable-container service across the contiguous U.S. sometime this summer. Globally, Loop is available in Paris and has plans to head to Canada, Germany, Japan, and the U.K. this year. At launch Loop already had a roster of big-name partners like Kroger, Pepsi, Nestlé, and Walgreens. The platform has expanded to include roughly 200 products, including plant-based burgers and ice cream from Häagen-Dazs (my personal favorite). I know what you’re thinking — during a pandemic when we’re all anxious about contamination, are we really going to be okay with receiving groceries packed in containers that someone else has already used? Especially since bring-your-own mugs and reusable totes in retailers are becoming a thing of the past? Loop’s CEO certainly thinks so. He told Fast Company that Loop has seen evidence that “consumers are comfortable with reuse during COVID.” Since Loop has a reuse protocol in place — with stringent cleaning measures and pre-established health and safety checklists — he’s confident that they’ll be able to continue their closed-loop packaging practice without putting users at risk. If users are comfortable with this, Loop’s extended platform could be a real help to cut down on our persistent packaging problem. Even if your delivery boxes are technically recyclable, COVID-19 is causing challenges for the waste management industry as a whole. Many packaging elements — like styrofoam and ice packs — aren’t recyclable anyway. Considering that the EPA reported that over 32 million tons of packaging and containers went into landfills in 2017 — almost a quarter of the total waste from the entire year — this is an issue we need to take seriously. Today is Earth Day, so there’s no better time to take a moment and consider how we can help preserve our planet. Come this summer I know one small step that I’ll be taking cut down on the amount of packaging I’m tossing out. Bonus: I still get to enjoy my chocolate-fudge ice cream.  

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• When it comes to packaging, aesthetics matter.
• With Loop, companies treat packaging like an asset.
• Brands are using Loop to learn about customer habits.

  When he founded TerraCycle in 2001, Tom Szaky was in the business of keeping tough-to-recycle products out of landfills. In 2019, he expanded that mandate with a service called Loop, which focuses on reusing packaging instead of merely recycling it. In partnership with several well-known brands, Loop offers household goods from olive oil to laundry detergent in reusable containers that are either delivered direct to consumers or available through two major retail outlets, then collects, cleans and refills them—much like a modern-day milkman. When Szaky sought to better understand why people were purchasing items through Loop, he was surprised by the results. Survey data revealed that two-thirds of Loop customers were mainly drawn to the program because of its packaging design; only one-third prioritized the sustainability aspect. Since Loop is all about saving the planet by eliminating waste, Szaky had expected the inverse. “A better experience with packaging is the primary driver,” Szaky told Adweek. “The secondary driver is sustainability.” Earlier this week, during a presentation at the National Retail Federation’s annual conference in New York, Szaky stressed the importance of aesthetics in consumer decision-making. While people often buy shampoo twice as often as they buy conditioner, Loop shoppers purchase an equal amount of Pantene shampoo and conditioner, according to Szaky. Why? Although he didn’t disclose exact figures, internal polling revealed that people thought the bottles—which come in a matching gold-and-white color scheme, and feature images of sea life—looked good together. But it’s not just about beauty. Szaky argued that tubs of Häagen-Dazs ice cream sold on Loop are simply better than the typical cardboard cartons found at grocery stores because they’re dual-layered, providing thermal insulation so that consumers’ hands remain warm while the ice cream stays frozen. The inside of the container is also concave, making the ice cream easier to scoop out. Szaky added that even the product itself can benefit from better packaging. The team at Coca-Cola apparently told him Coke tastes best in a glass bottle, then aluminum, then plastic. One key change that allows for better packaging design through the Loop system, as opposed to a convenience store or vending machine, is the transfer of package ownership from consumer to manufacturer, Szaky said. When a company is responsible for a durable container meant for multiple uses, it’s treated like an asset as opposed to the cost of goods sold. Since Loop requires a security deposit with each purchase, companies are given extra leeway to invest even more money into their packaging design, generating better functions and features. “Can you imagine what you could do with a package budget of $30 per unit?” he said. He noted that customers have shown little to no sensitivity to the deposit price, either. A can of Clorox disinfecting wipes, for instance, costs $5.49 to purchase, plus an additional $10 deposit. Despite this, Szaky said Clorox wipes are one of the top five best selling products on the site. Last week, another Clorox brand, Glad, began selling sandwich bags on Loop for $4.99 with a $10 deposit. Once ordered, consumers receive 100 plastic bags in a square metal tin, along with a yellow zippered pouch to put the used bags in for recycling later. According to Nick Higgins, Glad’s marketing director, the package took six weeks to design, and consumer feedback throughout the process was positive. “If you think about our traditional manufacturing system, it’s been engineered to deliver products in a way that people use them and then it’s their responsibility for how they ultimately want to dispose of them,” Higgins said. While it’s still too early to tell how Glad’s metal tin is performing on Loop, Higgins said the brand is excited to gain insights into how people might reuse its products. “As a brand, we want to continue to make progress in this area,” he said. “Using something like Loop as a learning partner to understand consumer habits and practices, and the business models associated with that, is what makes this really attractive to us.” Loop, which debuted in May 2019 in select cities in the U.S. and France, is scheduled to roll out in the U.K., Canada, Germany and Japan later this year. Presently, the platform works with retailers Walgreens and Kroger, and about 100 major CPG conglomerates, including Pepsi, Nestle, Unilever and Procter & Gamble. While Loop has yet to make an official announcement, Szaky said the company will soon reveal new partnerships with a fast-food company and high-end cosmetics brand.         Szaky added that since Loop began, it has, on average, added a new brand every two days and a new retailer every three weeks. While the program remains in test mode, he’s optimistic that Loop will continue to grow. “Disposability is our competition,” he said. “It’s an easy enemy to hate, thank God.”

The statistics are sobering. Virtually every piece of plastic ever produced still exists and there is more microplastic in the ocean than there are stars in the Milky Way, according to Earth Day Network, Washington, D.C. It is thus little wonder that 100,000 marine creatures die every year from plastic entanglement—and those are the ones that are found, according to Ocean Crusaders, an organization based in Australia that specializes in waterway cleaning. These same creatures consume the plastic, which we humans then consume from our dinner plates, meaning there’s plastic in us too. Containers and packaging constitute 30% of all waste, per the U.S. Environmental Protection Agency, and the large amount that isn’t recycled is dumped into landfills or is incinerated, leaving behind noxious air pollution. It’s a compounded problem that continues to mount, with forecasts predicting that the amount of plastic will increase fourfold by 2050. But moves are afoot to change this dire state of affairs. Retailers and consumer packaged goods companies are looking for new ways to provide products that eliminate or vastly reduce packaging, such as proliferating bulk food sections and experimenting with processes that use less plastic. Scientists are also devising ways to make CPG packaging compostable or 100% recyclable while circular systems are being developed in which consumers refill containers for commonly used household items. But to make change happen on a big scale, everyone needs to be on board. Urged on by consumers that are increasingly decrying excessive packaging that is perceived as being wasteful at best, and reckless at worst, many American companies, which are also not happy with the present state of affairs, are looking for solutions to what is becoming a very grave problem of crisis proportions. The solutions are complex and multifold. “When you think about the myriad products, and the ways consumers use them, we need lots of solutions,” says Meghan Stasz, VP of packaging and sustainability for the Grocery Manufacturers Association (GMA), Arlington, Va. Reducing packaging is important not only to minimize the effect it’s having on the world but also to improve public perception. The people who care most about packaging waste are millennials and Gen Zers, who are increasingly the customers of tomorrow. “Packaging has become a hot topic of late because shoppers are becoming more concerned about their impact on the environment, especially younger shoppers,” says Tory Gundelach, VP of retail insights for New York-based consulting agency Kantar. “And more and more, they’re happy to put their dollars behind the companies that align with them.” According to research from Kantar, nearly two-thirds of millennials and Gen Z consumers say they prefer “brands that have a point of view and stand for something.”

The Circular System

The solution to plastic and packaging reduction that’s perhaps gaining the most traction is the system of refillable, reusable containers. Loop—which offers products in reusable glass and steel containers that are delivered to and picked up directly from consumers’ homes—launched at the World Economic Forum in Davos, Switzerland, a year ago. It has since debuted pilot programs in New York and Paris. Developed by Trenton, N.J.-based TerraCycle, Loop has the backing of CPG giants such as Procter & Gamble, Unilever, Pepsi, Coca-Cola, Danone and Nestle, as well as smaller companies such as Nature’s Path. It offers about 100 brands and is constantly adding more, including private label items. “We treat small companies the same as large ones,” says Benjamin Weir, business development manager of North America for TerraCycle. “We help them expand and show them that packaging is a great way to differentiate.” Photograph courtesy of TerraCycle The more brands involved, the greater consumer adoption of Loop is likely to be, he says, because shoppers will be able to meet all their needs at one store—or through one e-commerce site—“and we can capture as much of their basket as possible.” Here’s how Loop works: Customers purchase products through its website, and when the products are depleted, they leave the empty packages on their doorstep for free collection by UPS, a Loop/TerraCycle partner, which returns them to Loop for sanitization and reuse. Each container requires a deposit, which is refunded upon its return or at the end of a subscription. Items that can’t be reused, such as diapers, can be collected for recycling. Retailers are joining the Loop throng too. The Kroger Co. and Walgreens are credited as founding retailers in the U.S. “Our commitment to innovative solutions on our path to Zero Hunger Zero Waste aligns perfectly with Loop’s mission to create a convenient circular packaging platform for consumers,” Jessica Adelman, president of The Kroger Co.’s Zero Hunger Zero Waste Foundation, has been quoted as saying. Being involved with Loop is almost the cost of doing business today, says Virginie Helias, chief sustainability officer of Cincinnati-based Procter & Gamble. “Nine of 10 consumers now say they have a more positive image of a company when it supports a social or environmental cause, and half say they make purchase decisions based on a shared belief with the brand,” she says. Procter & Gamble is committed to making huge changes, and it fully backs the Loop system. “The idea of getting rid of disposable packaging and replacing them with beautiful, durable, refillable packaging is a huge idea and we are very committed to make it work,” Helias says. All of the companies involved with Loop are faced with a new and exciting challenge: creating new packaging. This packaging is much more durable, plastic-free and is good-looking enough to sit on any home’s counter.

In—and Out of—the Loop

Companies need to step up and take responsibility, says Darby Hoover, senior resource specialist for the Natural Resources Defense Council in New York: “If you introduce a package, your responsibility has not ended, and it should not be the responsibility of the consumer. [Companies] need to say they’re responsible for packages through the end of their life. That’s what’s powerful about a program like Loop.” Gundelach of Kantar supports a program such as Loop because it takes that responsibility away from the consumer. “It’s more likely to resonate than asking the shopper to do it themselves,” she says. And while this isn’t a perfect solution—she points to the emissions from the pickup vehicles, for example—Gundelach believes it’s a step in the right direction. “To do this on any meaningful scale is extremely complicated and takes the partnership of many different parties, but I think this is a longer-term solution,” she says, adding that companies in the CPG industry will have to reach some agreements that they will use the same sort of process. The losers in the Loop system could be the retailers, who may see sales declines for products that are now delivered by the modern-day “milkman.” But Stasz of GMA doesn’t anticipate that, noting that she “can’t imagine it would have more of an effect than e-commerce.” While the e-commerce model is phase one for Loop, eventually consumers will be able to shop for Loop in the stores of the company’s retail partners. This should start in 2020, Weir says, and is phase two. This program will be implemented through retail partners such as Kroger. It will go live in Kroger and Walgreens at 25 to 50 stores in a condensed geographic area. At these stores, consumers drop their used packaging in a Loop bin and pick up a new product in reusable packaging from the shelf. This would be a pay-as-you-go model vs. the e-commerce program, which offers consumers the option of subscription on demand. Consumers “will be able to shop and act as normal and have the option for durable, reusable packaging,” Weir says. He could well be right. According to GMA, nearly two-thirds (65%) of Americans say they’d be very likely to buy goods in refillable packages.

The Product Line

CPG companies are making their own mark on plastic reduction. Two years ago, Pepsi launched Drinkfinity, a reusable bottle/recyclable pod system for flavored water. Meanwhile, Coca-Cola is making a bottle from recycled marine plastics; Colgate unveiled a new recyclable toothpaste tube; Nestle committed to 100% reusable and recyclable packaging by 2025; and Unilever has vowed a 50% plastic reduction by the same year. London-based Unilever is also going out on many different limbs. In the Philippines, it launched the Hair Refillery, a shopping mall pilot that lets consumers refill bottles from brands such as Dove and Tresemme. In the U.K., Cif cleaning spray is now sold with refill cartridges that consumers put in existing bottles and fill with water. The trigger heads on the original spray bottles are designed to be used thousands of times. And in Chile, Unilever is piloting an app-powered, intelligent dispensing system that uses electric tricycles to deliver laundry detergent to homes. Companies are either reducing the plastic (using less per product), finding a plastic that can be 100% recycled or exploring alternatives, which include bioplastics produced with bacteria, seaweed, corn, mushroom rot, wood pulp and even shrimp shells. However, CPG companies are still facing some backlash because they’re still producing single-use products. “We’re continuing to see a major commitment by the CPG companies to improve their packaging,” says Stasz of GMA. “That means different things to different companies. To packaging design, to new kinds of materials, to delivering products to consumers in new ways and in new formats. From research we did this year, all the largest 25 CPG companies in the world have made public commitments that 100% of their packaging be recyclable or compostable by 2030 and some as soon as by 2025.” Recycling in itself has become a problem. In 2018, China stopped accepting U.S. imports of recyclable materials, and across the U.S., recycling is becoming more expensive. So much so that many towns and municipalities to eliminate curbside recycling programs. This is all the more important because recycling is becoming a big issue: Less than 14% of plastic packaging—the fastest-growing form of packaging—is recycled, according to the Natural Resources Defense Council. Eighty-seven percent of Americans told GMA they are very concerned about single-use plastics and packaging waste. It’s vital that more emphasis be placed on recycling, says Melissa Craig, senior manager of packaging sustainability for Unilever North America, Englewood Cliffs, N.J. Unilever’s new packaging is designed with PCR (post-consumer resin), but in order to have sufficient PCR, “we need everyone contributing to the circular economy, which means ensuring everyone is recycling. The more we can get consumers to recycle, the greater the supply of PCR for packaging so we can use less virgin plastic.”

At the Store Level

Retailers also play a big part in reducing the amount of plastic packaging waste by taking a stance. Monrovia, Calif.-based Trader Joe’s announced it had removed nearly 4 million pounds of plastic from its stores last year. This included the introduction of biodegradable bags for flowers and greetings cards, removing excess packaging and switching to recyclable trays for fresh meat. Walmart has committed to incorporate at least 20% PCR content in the packaging of its private label line by 2025. This, the retailer says, will also be 100% recyclable, reusable or industrially compostable. The Bentonville, Ark.-based chain is also encouraging suppliers to eschew all PVC (polyvinyl chloride) by 2020. Minneapolis-based Target will eliminate expanded polystyrene foam packaging from private label products by 2022, and Issaquah, Wash.-based Costco ditched PVC clamshell packaging, which not only can’t be recycled but also releases toxic chemicals into the environment as it degrades. So it’s no surprise that Whole Foods Market is making a difference too. Its changes include switching to smaller bags for produce; replacing hard-plastic rotisserie chicken containers with bags that use about 70% less plastic; eliminating polystyrene/Styrofoam meat trays; and using salad boxes made of 100% commercially compostable material in its prepared foods department.

Away From Home

More is happening abroad. South Africa’s Pick n Pay grocery chain is experimenting with “nude zones,” where consumers fill their own containers with produce laser-etched with codes. Metro in Quebec started allowing customers last spring to fill their own reusable containers with meat, seafood, pastries and ready-to-eat meals, and Ekoplaza in Amsterdam now carries more than 700 products in plastic-free packaging, which looks like plastic but is actually made from all-natural, biodegradable materials. In the U.K., Waitrose has introduced packaging-free aisles; Tesco has asked its suppliers to look into packaging solutions and vows to have only recyclable or compostable packaging by 2025; Iceland is getting rid of plastic packaging for its entire private label line and has also committed, over the next five years, to using recyclable paper versions of food trays to enable it to become plastic-free by 2023; Sainsbury’s is halving its packaging by 2020; and the Co-op says a whopping 80% of its products will be “easy to recycle” by 2020. In Europe, there have been many moves to reduce plastic. Americans are simply less concerned than Europeans, says Neil Saunders, managing director and retail analyst for GlobalData Retail in New York. “Americans have more of an ambivalent attitude toward environmental issues and this results in less pressure on the industry to institute change,” he said. “Regulation is likely more lax in the U.S. than in some parts of Europe, where recycling is now mandatory for householders.”

Bulk Foods Bulk Up

What can make an enormous difference in the amount of packaging waste a store produces is having a bulk department. At Phoenix-based Sprouts Farmers Market, bulk food sections are large and even larger in new and remodeled stores. In some locations, bulk accounts for a massive 30% of a store’s selections. However, as anyone who’s ever used them can attest, refilling containers—particularly liquids—can be time-consuming and messy. Neil Stern, senior partner with McMillanDoolittle, Chicago, thinks bulk sections have their place in stores “where the customer is sufficiently committed, such as stores offering a broad selection of natural/organic products.” However, he says, conventional stores may need to offer more convenience and experience, such as “some sort of concierge service,” where customers would drop off their containers to be refilled and pick them up at the end of their shopping trip. Around the world, packaging-free stores are opening up, aimed at reducing the swathes of plastic and heightening consumers’ awareness of this problem. The trouble is, are these stores catching on yet, or are they just attracting the ultra-eco-conscious? In New York’s Brooklyn, there’s Precycle and in Vancouver, British Columbia, there’s Nada, where customers can use their own containers or buy them. There’s also The Refill Shoppe in Ventura, Calif.; the Filling Station in New York; and Zero Market in Denver, which sells personal care and home products. Lyndsey Manderson, co-founder of Zero Market, is planning to open a second, larger location to sell food.

 The Supply Chain Situation

The picture painted of plastic packaging is not a complimentary one, but plastic does have its place and is used for a reason. It helps preserve food and protect food during its journey to store shelves. The supply chain is responsible for a lot of packaging, says Gundelach of Kantar. “The brands aren’t adding packaging just for fun, but more times than not the packaging is designed for the end shopper [and] how is that product making it through the supply chain.” However, because of geography and distance, U.S. supply chains, especially for perishable products, can be more complex and demanding than those in Europe. “This pushes a lot of companies into using plastic to protect products,” says Saunders of Global Data. “Plastic is also a relatively cheap and lightweight solution, which helps keep distribution costs down, something that’s vital in a low-margin sector where the consumer demands low prices and value for money,” he says. “In Europe, this remains an issue but the more compressed supply chain makes it easier for many operators to look to alternatives.” Susan Selke, director and professor for the School of Packaging at Michigan State University in East Lansing, says there could be problems if packaging is reduced because it could lead to more product waste if the interior goods are damaged. “There are generally more environmental costs associated with that product waste than benefits associated with less packaging,” she says.

In late 2019, PepsiCo set a new target for 2025 to reduce the use of virgin plastics for its beverage brands by 35% through the increased adoption of recycled content and alternative packaging. Here, Roberta Barbieri, Vice President Global Sustainability, PepsiCo, elaborates on the strategies the company is using to reach its ambitious sustainable packaging goals.   Packaging World:   Why did PepsiCo feel the need to up the ante with its announcement of a goal of reducing the use of virgin plastics across its beverage portfolio by 35% by 2025?   Roberta Barbieri: We share concern over the growing threat that plastic packaging waste poses, and we recognize the significant role we can, and must, play in working to change the way society makes, uses, and disposes of plastics. Last fall we announced a new target to reduce 35% of virgin plastic content across our beverage business by 2025, which equates to the elimination of 2.5 million metric tons of cumulative virgin plastic. This is another step forward in our journey toward a world where plastics need never become waste.   Does this change or replace any previous goals?   It does not. The target we announced builds on our other packaging goals for 2025: to make 100% of our packaging recyclable, compostable, or biodegradable and increase our use of recycled content in plastics packaging to 25%.   What will the use of alternative materials entail? Will it include the use of biopolymers?   Among the alternative materials to be used, beginning this year, bubly will no longer be packaged in plastic, and Aquafina will be offered in aluminum can packaging in U.S. foodservice outlets. Brand tests will also be conducted this year on the move to aluminum cans for Aquafina in retail.   Regarding biopolymers, as more carbon-efficient technologies like bio-based packaging scale, we’ll consider how this can further support our reduction targets.   In 2011, PepsiCo announced work on a 100% plant-based bottle. What is the status of that technology?   PepsiCo is continuing to invest in the development of more sustainable plastic packaging materials. Plant-based packaging is a more resource and carbon-efficient way of making plastic than through the use of oil-based polymers, providing a pathway for PepsiCo to improve the environmental impact of its packaging. We have been continuing to look for ways to scale the technology.   In 2011 and into 2012 we were able to produce a small number of 100% bio-based PET bottles, but that technology didn’t scale to be an effective solution for our packaging needs and business. Most recently, we’re working with industry partners as part of the NaturALL Bottle Alliance and through that work plan to develop fully recyclable plant-based plastic for use in our bottles, made from renewable feedstocks like sustainably farmed trees or agricultural residues that will not diminish food resources and will be less carbon-intensive than oil-based PET.   We are also innovating to transform our snack packaging to be more resource efficient. In India, Chile, and the U.S. in 2018 and 2019 we tested industrially compostable thin-film packaging for snack products that will biodegrade over time if disposed of in well-managed composting facilities. We worked with technology pioneer Danimer Scientific to develop this material, and together, we’re also developing a next-generation film that we aim to be fully biodegradable regardless of how it is disposed.   How will you avoid the discoloration and haziness associated with 100% rPET when you roll out your 100% rPET LIFEWTR bottle—a bottle known for its aesthetics—in the U.S.?   Just as we do with our 100% rPET Naked Juice bottle, PepsiCo will select the highest-quality rPET we can source for the LIFEWTR bottle. In 2020 and beyond we’ll have more brands around the world move to 100% rPET plastic packaging. As of Q1 2020, all our Lipton bottles in the Netherlands and Belgium will be 100% rPET.   How do you plan to overcome the lack of availability of recycled materials in order to meet your goals? What needs to happen to increase recycling rates and availability, especially when so many other major CPGs have made commitments similar to PepsiCo’s?   There simply isn’t enough recycled content in the supply chain today to enable us to reach our goals, and the only way to make more is to drive higher recycling rates. This is why we are investing to boost recycling rates and have also formed new partnerships to help develop enhanced recycling technologies.   Because higher recycling rates mean a greater supply of recycled plastic, we are investing in recycling infrastructure and consumer education with key partners, and we have joined a range of partners to help build new systems that we believe will make plastics use more sustainable.   PepsiCo and The PepsiCo Foundation are accelerating efforts to boost recycling rates across the world. Between July 2018 and July 2019, we pledged over $51 million globally in partnership initiatives, with a specific focus on some of the areas with the poorest infrastructure and highest risk of contributing to plastic pollution. Investments include The Recycling Partnership, Circulate Capital, Global Plastic Action Partnership, TerraCycle, Alliance to End Plastic Waste, Recycling with Purpose, and Recycle Rally.    PepsiCo’s new goals include the expansion of your SodaStream business. How do you intend to do this?   We have been working to create a portfolio of options that go beyond the bottle, meeting consumers’ individual needs and putting smiles on their faces, whether they’re at home, away from home, or on-the-go. At the heart of the Beyond the Bottle strategy is SodaStream. Over its lifetime, one SodaStream bottle can avoid the use of thousands of single-use bottles. Through the expansion of PepsiCo’s SodaStream business, an estimated 67 billion plastic bottles will be avoided through 2025.   Can you provide a very brief overview of the Hydration Platform?   The hydration platform is a connected ecosystem built to reflect how people drink water today that is made up of three components: a beautifully designed hydration dispenser, a companion, user-friendly smartphone app, and a personalized QR code sticker for reusable bottles that allows consumers to be effortlessly recognized by the dispenser. This ecosystem allows users to set their own daily hydration goals and automatically tracks their way to meeting them. Additionally, it tracks their environmental impact with a unique count of plastic bottles saved with each pour as well as over time saves unique preferences (like favorite flavors and carbonation levels) for future use.   Has the platform been launched yet? If so, what have been the results?   With our partners and customers, we’re continuing to test and optimize all aspects of our hydration platform—including branding. In fall 2019, we began rolling out our units in a beta test to select locations where there is a high demand for plastic waste reduction. We’re also working with travel and hospitality partners to bring our hydration platform to people who want to stay hydrated while they’re on the go.

Loop's co-founder explains how the sustainable packaging platform works with brands like P&G, Unilever and more to enable ecologically sound consumption patterns with durable containers designed for refill and reuse   In today’s climate that favors “out with the old and in with the new,” the world has become used to the convenience of disposability—and at huge cost to the environment. However, consumers and retailers alike are more aware than ever of the consequences of throwaway culture, and the opportunity is ripe for new ways of buying and using goods.   Enter Loop, a circular shopping platform that transforms the packaging of everyday essentials from single-use disposable to durable and refillable designs, curbing waste while also offering the same products consumers already buy in premium-quality containers. PSFK spoke to Loop’s co-founder Tom Szaky, also CEO and co-founder of recycling company TerraCycle, to learn about the platform’s imminent launch, and how it functions to help consumers truly own their product while placing the ownership of the packaging in the hands of the producer. Ultimately, Szaky emphasizes that recycling needs to be as convenient as disposing to sustain mainstream adoption—something Loop is striving to achieve.   PSFK: Could you describe the work that you do at Loop? Tom: I run and founded TerraCycle, now 16 years ago. TerraCycle’s mission is to eliminate the idea of waste. We don’t want to see ourselves as a waste management company, but more of a waste elimination organization.   We have a number of divisions to accomplish that. What we have been doing the longest and are effectively the most known for is turning things that have been considered not recyclable into nationally recyclable items, everything from dirty diaper recycling, which we’ve just launched with Pampers in Holland, to chewing gum recycling, which we do with Cadbury in Mexico, and hundreds of other waste streams.   Our second division is about making products from recycled materials. We take ocean plastic and turn it into Head & Shoulders bottles or Dawn dish soap bottles, for example. At the World Economic Forum in Davos about a month ago, we launched Loop, which is our third business unit. It’s entirely focused on how we solve waste at the root cause, which comes down to rethinking disposable items.   Could you elaborate on how Loop works? Loop is really an engine for brands and retailers. For brands, Loop enables them to develop durable versions of their products, like making Tropicana bottles in extremely durable glass instead of cartons.   There’s an ecosystem of products that most of the world’s biggest producers are involved in, from Unilever to P&G and many others, so that consumers can access the materials.   As a consumer, you would be able to go into your favorite store, see your favorite products, but instead of in disposable packaging, it’s in this beautiful, premium, reusable package. And instead of having to clean it yourself, to wash it out and refill it, we do that for customers. At Loop, we enable the benefits of disposability without the negatives. How did you approach designing a process that would fit into consumers’ lives and integrate recycling into them seamlessly? The first question we asked when we came up with the idea for Loop was, “Why does garbage exist?” We landed on, “Well, disposability.” But you can’t just vilify disposability. We wanted to think about, “Why are people, even today, just absolutely in love with the concept of disposability?”   The answer is that it brings unparalleled convenience and affordability. To solve the problem, we have to look at the positives, at what the value of it is for consumers, as problematic as it is. The thesis for Loop was, “How do we solve for the negatives of disposability while maintaining its positives?”   We realized it came down to ownership. One of the strange things about the products we buy, anything from our coffee cup to our shampoo, is that we really want the content, but we end up owning the package at the end. I’d argue, none of us really wants to own the package. If the manufacturer could own the package forever, they would be motivated to make it long lasting and durable. Suddenly, everything clicks.   How did you approach shifting that ownership from consumers to the retailers? It started with the producers of the products. It begins with the visible part, the package design, and making it into something durable. There are two ways to make something physically durable: One is to make it out of strong materials, but the other is to allow it to age. Actually allowing something to age dramatically increases the total number of times it can go around, which is a different concept in a world where everything is always brand spanking new.   Then, it needs to be cleanable, strong enough to endure being cleaned many times, and needs to be refillable. Those elements are the first major hurdle.   The second is integrating it for retailers. The key learning here is that retailers are very limited on resources these days, so they can’t do a lot of development. The want to enable a packaging-free aisle, if you will, a popular idea right now. At Loop, the goal is to enable this while forcing them to change as little as possible in their ecosystem.   The benefit of working with existing brands and existing retailers is they don’t have to convince consumers to buy their products—they’re already being sold effectively at a location where consumers already shop. The difference is just offering the option to have it in disposable and durable packaging.   The last piece is sustainability.We very quickly learned that durability brings about not just reuse, but also an amazing increase in luxury—in design based on the materials required. What happens is, then we can appeal not just to those concerned about the environment, but also to those who just want a better-looking product.   Did retailers and the partners you work with understand the benefit right away? Did Loop have to convince them?  Our very first partner was Procter & Gamble. We’ve been working with them through TerraCycle for many years. It did take a phenomenal amount of discussion, convincing and meetings because it’s a risk, on their time as well as money.   The second one was NestlÈ, and then Pepsi, Mars and Unilever, and things became progressively easier. Once those were established, it was a whirlwind. Almost every week a new partner is joining. You mentioned the side benefit of durable packaging is that it can create a better overall product experience. Could you expand on this? Did this appeal to retailers? With Loop, one of the things we focus on is helping retailers make distinguished packaging. The benefit to them is that it’s still the same product from the same brand, but with upgraded packaging.   How have consumers reacted to the concept? The response has been overwhelmingly positive. It’s phenomenal how many people have signed up for it. One of the things consumers are hoping for is that Loop scales quickly. We’re going to be starting in Paris, then New York, then London and Toronto, but they’d like to see it in more and more places. They also want a range of goods.   It’s good that we were able to start with the really big retailers, but based on consumer feedback we’re also going after some of the smaller startups to enable a diversity of products. Consumers understand that there’s a garbage problem. While some prioritize the environmental aspect, others really like the design aspect, and some really like the convenience aspect. When you put all that together, it’s a pretty big ecosystem of benefits. It doesn’t really matter which side of that consumers are on, as long as they get on board.   Could you explain the timing of your launch? The world is really strong right now for a system like this. People have woken up to the problem of garbage, as have retailers. They have made big commitments, big pledges, big promises. The companies that have to take part are ready to go, and that wasn’t the case two, three years ago.   How have consumer expectations for at-home delivery and online shopping influenced your work? It absolutely helps. A lot of what Loop relies on is existing supply chains, and by having a lot of ecommerce drivers already in place, we’re not putting more trucks on the road. Consumer comfortability with ecommerce supports us. Overall what is important to us is that customers feel that Loop is as convenient if not more convenient than the way they already consume. What can we expect for your launch this spring? May is when New York and Paris go live. We’ll be announcing the U.S. retailers at that time. There’ll be even more products than what’s already available. Every day more and more companies join and leverage more products. What’s also great is that they’re pushing each other, competing to foster innovation.   Could you speak about the future avenues for product reuse that Loop has the potential to open as it changes consumer behavior toward recycling? Establishing relationships with consumers related to reuse unlocks huge layers of opportunity. For example, if you go into a normal retailer like Amazon.com, you can see your order history. That’s pretty straightforward, and you’ll be able to see your order history in Loop as well, but you’ll get one more thing. Because we know what you bought and also when you returned it, we know what’s in your house. By definition, that’s everything that you bought but haven’t returned yet.   That is really interesting for the consumer because imagine if suddenly you have someone in your family that is allergic to peanuts. You can suddenly click one button and it would say, “Here is everything in your home that has peanuts in it.” Instead of having to go on the back of every product and figure it out yourself, can you imagine if with one click it would just highlight for you everything that’s a problem? Then with a second click, you could send that all in and substitute it for the non-peanut versions of the same type of product. There’s a lot of potential there.   Another is a feature that’s enabled right at the beginning: Shoppers can set their account so that their empty product triggers a reorder. They shop with their used product, which means they never get the wrong amount. If you think about it, what are the challenges with subscription models? Consumers love them, but one of the big complaints is it’s a box every month, and what if they go on vacation? What if they stop using that product? If they set it by having their used items trigger their reorders, then it’s by definition perfectly timed.   Another example of something we’re developing now is diagnostics. Imagine, since we know it’s your used motor oil container when you send back your used oil in your oil container, we could diagnose it for you by measuring the engine scrapings that are left diluted in your oil. That could then tell you what the health of the inside of your car are. Imagine cat litter. If we take the used cat litter, we could diagnose it and tell you about the health of your cat. What about a used dirty diaper and the health of your child?   There is a lot uncharted territory in knowing that a used product came from a certain consumer. Those are just a few examples of where that relationship could go in the future.   Tom Szaky. Loop Loop is combining consumer insight with innovation to enable a better way to consume. For more from similar inspiring companies, see PSFK’s reports and newsletters.   

Loop launches in May with a pilot program. The company behind it says it will help customers cut down on single-use materials Loop will launch a pilot program in Pennsylvania in May 2019 for reusable packaging for products like Crest mouthwash, Coca-Cola bottles, Hidden Valley Ranch dressing bottles and more. A Trenton, New Jersey-based sustainability company is rolling out a new program, offering a ton of household products packaged in ways that could reduce our contributions to the rapidly-declining state of our environment. TerraCycle recently announced it's launching Loop in the northeastern U.S. and in France. Loop will allow shoppers to buy products like shampoo, deodorant, mouthwash, ice cream, juice, and detergent from major distributors but packaged in reusable containers. The pilot program will be available in Pennsylvania, New Jersey and New York in May. The point is to help consumers cut down on those single-use plastic containers that usually end up in landfills — like plastic Coke bottles, Febreze canisters, Pantene shampoo bottles, and Haagen Dazs ice cream tubs. With Loop, containers will be made from steel or glass. In Philly we learned the depressing reality not too long ago that even recyclable materials get sorted into the trash because they're contaminated with leftover food or water, too hard to sort by material, or are hard to sell to other countries on the recycling market. Actually, 25 percent of what we recycle in this city ends up in a landfill. So, here's how it'll work. Customers will be able to visit Loop websites and order waste-free products from brands like Pepsi, Nestle, Procter & Gamble, and Unilever. Then, they'll receive their products in a tote that eliminates shipping materials like cardboard boxes. Haagen Dazs is one of the brands partnering with TerraCycle that will transform its single-use products into reusable containers. After users are finished with the products, they won't need to clean or dispose of the containers. Loop will pick up the containers from the customer's home, clean them for safe reuse, and replenish the products. According to a report from the Wall Street Journal, the products will cost "roughly the same" as their cost on grocery store shelves. But, users will have to pay deposits of anywhere between $1 and $10 per container. Loop is currently recruiting 5,000 interested customers for the pilot program. According to the Journal, it will expand to London and 10 additional cities later this year and into 2020.