A new initiative by a small company has compelled more than two dozen of the world’s biggest brands to begin testing reusable packaging. Loop, launched today at the World Economic Forum in Davos, Switzerland, has amassed a blue-chip roster of companies, all of which are piloting a new system of high-quality packaging that can be returned and refilled again and again. In essence, it changes the ownership model of packaging from consumer to producer. The big question is, will consumers buy into it? Today’s launch is the product of more than a year’s work by TerraCycle, the Trenton, New Jersey-based company that made a name for itself by turning hard-to-recycle waste (think juice boxes, coffee capsules, plastic gloves and cigarette filters) into new products. Along the way, the company, founded in 2001, has partnered with major consumer brands, retailers, manufacturers, municipalities and small businesses in more than 20 countries. Loop is the natural progression of that model, as well as the corporate relationships TerraCycle developed over the years. Its Loop partners include Procter & Gamble, Nestlé, PepsiCo, Unilever, Mars, Clorox, Coca-Cola, Mondelēz, Danone and a dozen or so smaller brands. European retailer Carrefour, logistics company UPS and resource management company Suez are also engaged in the system. The service will launch this spring in two markets: Ile-de-France, the region in north-central France surrounding Paris; and the New York region, which includes parts of Pennsylvania and New Jersey. Initially, about 300 products will be available in durable, reusable containers, many created especially for Loop. "The key thesis statement is we can't just recycle our way out of the garbage crisis," Tom Szaky, TerraCycle’s CEO and co-founder, explained to me recently. "We need foundational changes. Our version of the foundational change is: How do we solve for disposability at the root cause, while matching the benefits?" Loop brings back the old 'milkman model,' where products are delivered to your door at the same time empties are picked up, washed, refilled and readied for delivery to another customer. Simply put, Loop brings back the old "milkman model," where products are delivered to customers at the same time empties are picked up, washed, refilled and restocked for delivery to another customer. The customer gets the product but the company owns the package. The reality is somewhat more complex. Loop initially will be an e-commerce play. Consumers can order goods from the Loop website or that of a partner and have them delivered like traditional products ordered online. But there’s a twist: Customers pay a small deposit for a package that has been designed for 100 or more use-cycles. When the container is empty, customers place it in a specially designed tote for pickup or, in some cases, can bring it to a retailer. They can choose whether they want that product replenished; if not, their deposit is returned or credited to their account. The empties are sent to a facility where they are washed and refilled. The entire process is handled by TerraCycle, from sale and delivery to package return and cleaning. In effect, TerraCycle is the online retailer, buying wholesale and selling retail. The package remains the property of the brand. Eventually, Loop will expand to include brick-and-mortar retailers — Carrefour and Tesco in Europe have signed on and expect to introduce Loop products in their stores later this year; a U.S. retail partner hasn’t yet been named. In that in-store version, consumers can bring empties back in a QR-embedded container provided by Loop. Scratching a niche The rebirth of reuse has been long coming. Since the dawn of the recycling movement about 30 years ago, companies have tried a number of schemes to enable consumers to use packaging over and over. One plan featured small packets of concentrated liquids used to refill a bottle of household cleaner — just add water to the concentrate and, voilá, a full bottle of a brand-name product. Another approach, refill stores, emerged in cities in Europe and North America, enabling consumers to bring their own container to buy bulk goods. Refill stations also are in traditional supermarkets and in some personal care retailers. But none of these has caught on beyond a tiny niche. Consumers, outside of a precious few hardcore greenies, don’t really want to be inconvenienced, much as they may be seeking to avoid wasteful practices. Loop’s approach seeks to overcome those obstacles. The key, said Szaky, is trying to mimic the way consumers already buy, use and dispose of packaging. We realized that recycling and using recycled content is about trying to do the best you can with waste, but it's not solving the foundational reason we have waste. "We realized that recycling and using recycled content is about trying to do the best you can with waste, but it's not solving the foundational reason we have waste. We did a lot of reflection on that and realized that the foundational cause of garbage is disposability and single-use. We tried to come up with a way to solve for disposability but maintain the virtues of disposability, which are convenience and affordability." Szaky explained that his goal with Loop was to make the system simple and familiar. "You get a box at your door with your stuff in it. Though it's better, because your box is durable, and you don't have to worry about recycling all that cardboard." Similarly on the back end. "We're trying to emulate the way you do your recycling at home. You take your used packages and you either put them in the recycling container or into your garbage bin. And then you lug it down to the curb and your recycling company or your garbage company takes it." With Loop, consumers put empties in a tote or other Loop-provided receptacle, which is picked up via UPS or another carrier, or dropped off at a retail partner," explains Szaky. "There's no washing, no cleaning required. Just like a disposable object, you throw it back into one of those durable shipping containers you would've received from us." Szaky envisions a "reuse bin" eventually showing up in homes alongside garbage and recycling bins. "And when we pick up, you have the option to have it set to auto-replenish, so that you can actually make your shopping even easier, because your empties trigger your re-orders." Counter-worthy Part of the magic of Loop is reusable packaging, designed in partnership with the brand owners to be not just durable, but "counter-worthy" — attractive enough to keep in plain view, in the words of Virginie Helias, vice president and chief sustainability officer at Procter & Gamble. "You want to show it to your friends." But, she adds, the appeal is not just aesthetic: "It's also the fact that it's a better premium experience for people." For P&G, that meant designing new packaging for the Loop platform. And, in some cases, inventing new products altogether. For example, the company developed a toothbrush called Click, part of the company’s Oral B line. "It's basically a new design that reduced the plastic by 60 percent because you have a durable handle which is made of composite material," explained Helias. "And there is a mechanism which we call Click Fits, which allows you to detach the head from the handle." A Loop tote for delivering products to consumers. Procter & Gamble, Loop’s biggest partner, which also owns a 2 percent stake in the enterprise, has tapped into 10 of its most iconic brands as part of the Loop launch, including Ariel, Cascade, Crest, Febreze, Gillette, Pantene, Pampers and Tide. "What was great to see was that most of our P&G categories were actually highly relevant for people in terms of having durable packaging," said Helias. Unilever, another Loop launch partner, is putting eight of its brands into the Loop platform, including Rexona, Dove and Axe deodorants; Signal toothpaste; Häagen Dazs ice cream; and Hellmann's mayonnaise. With the company’s deodorant brands, "The base of the stick packaging is now made from stainless steel. As you use the product, there's an insertable refill where you then give that back to us and then we send you a new one," explained David Blanchard, Unilever’s chief R&D officer. Like P&G’s Helias, Blanchard used the word "beautiful" repeatedly in our conversation to describe the company's various reusable packaging innovations, made from glass, aluminum, durable plastics and other materials. For example, regarding the deodorants, he said, "It's a beautifully crafted piece of packaging." Another Unilever innovation is Signal tooth tabs, an alternative to toothpaste. Essentially, it’s a small tablet of tooth powder you "chew, brush as usual, then rinse and smile," Blanchard explained. "We're creating a whole new format in a fully recyclable and refillable jar, so you get zero packaging, zero waste. It uses less water because of the way in which you simply put the product in your mouth and then clean and rinse." Will consumers buy in? No doubt, Loop is a well-designed system with a compelling offering and a powerhouse line-up of brands. But one key question remains: Will consumers buy in to reuse? It’s no small concern. Consumers — in Europe, North America, South America and Asia — repeatedly have foiled efforts by brands large and small to create products and delivery models that reduce waste, energy, water and other resources. In some cases, they believed that products were inferior or didn’t perform well. In others, the higher price was a barrier, and still others lacked the convenience of their conventional version. In many cases, consumers couldn't be bothered to change their well-worn habits. Szaky and his corporate partners believe they have thought through such pitfalls, although the Loop system hasn’t yet been tested in real-world settings. Szaky and his corporate partners seem to have thought through many of these downfalls, but the Loop system hasn’t yet been tested in real-world settings. Clearly, Loop’s big brand partners believe that their individual and combined efforts can break through. "It addresses a clearly growing expectation from people," says P&G’s Helias. "When we ask people about what's important for them, packaging now becomes intrinsically important. And the frustration with other packaging is becoming very close to other factors that we are hearing about in our studies." Unilever’s Blanchard agrees. "We think that about 25 percent of consumers today are looking to buy brands that have a more sustainable footprint or clearly have a purpose that resonates with them from a broad environmental sustainable purpose point of view. And then, there's probably another 50 percent of consumers who are then increasingly looking for brands to have that point of view or that sustainable footprint." There’s also comfort in numbers, he says. "We've looked at reuse in France. We're looking at a refill type of system in Vietnam. And we've not yet really cracked that business model. What Loop offered was the opportunity to be a part of a bigger consortium where consumers will get a much broader range of products. And therefore it gives them an opportunity to really do this with a bit more scale." Helias believes the reuse model has other benefits beyond the environmental ones. "You obviously develop a very intimate relationship with the consumer. And you build loyalty. It is all about enabling and inspiring responsible consumption, which is kind of our core agenda at P&G. And this addresses it beautifully. This is why we have so many brands excited about the idea." P&G, Unilever and the other partners will be watching the forthcoming launch closely, trying to discern what works. "I think the most important metric will be the depth of repeat," said Blanchard. "Do consumers come back to using these products time and time again? We would typically look to find at minimum a 50 percent repeat rate, so that half of those consumers over a period of time come back to use the product at least once, if not two or three times." And, of course, there are the environmental metrics. "It takes five Loop cycles of fill and reuse to be better from an environmental standpoint," said Helias. "We hope can go way beyond that but that's exactly why we are testing in market. It's to validate that assumption." Tom Szaky, for his part, is already looking ahead. "The next category, when we're ready, we want to test things like baby clothing and baby toys. We think there's a really good opportunity for this in what we call disposable durables. That's going to be a key question for us: How far and wide can this go?"

24 Jan 2019 --- Recycling specialist TerraCycle has launched a first-of-its-kind reusable packaging home delivery service in partnership with a host of leading global brands. Taking place today in Davos at the World Economic Forum (WEF), the launch fuses e-commerce and sustainability in a way that a green-minded public has long been calling for. Consumers will be able to use durable, reusable or fully recyclable packaging made from materials such as alloys, glass and engineered plastics. Could this be a step closer to saying goodbye to single-use plastics? Innovation in the booming e-commerce market must, arguably, go further than recyclability. Within the online groceries market alone, growth is occurring at a double-digit rate in the past years. However, the levels of waste in e-commerce packaging remain high, which coupled with extended fuel usage for personal deliveries, makes it a market with sustainability issues. Within the booming industry, only 2 percent of companies use reusable or returnable packaging models, according to Jan Berbee, Partner in the reusable packaging for e-commerce startup, RePack, tells PackagingInsights. Global giant P&G will be introducing reusable and refillable packaging on some of its most popular products. The freshly launched Loop is a global packaging and shopping circular solution which aims to offer an improved environmental performance compared to current e-commerce solutions. The basic premise of the initiative is that consumers will order their product, receive it via shipping then after use it will be picked up at their homes. The products are then cleaned, refilled and either reused or recycled. Available products range from detergent and toothbrushes to ice-cream and peanut butter. The platform will launch in Paris and New York in the spring of 2019. Among the brands taking part are Procter & Gamble (P&G), Nestlé, PepsiCo, Unilever, Mars Petcare, The Clorox Company, The Body Shop, Coca-Cola European Partners, Mondelēz International, Danone, Jacobs Douwe Egberts, Lesieur, BIC, Beiersdorf, RB, People Against Dirty, Nature’s Path, Thousand Fell, Greenhouse, Grilliance, Burlap & Barrel Single Origin Spices, Reinberger Nut Butter, CoZie and Preserve. “As a response to the global challenge in managing waste and the opportunity to improve consumers’ experience, a group of committed global brands, retailers, infrastructure companies, along with the World Economic Forum, have come together to create a new way to more responsibly consume products,” says TerraCycle CEO Tom Szaky. “Loop will not just eliminate the idea of packaging waste, but greatly improve the product experience and the convenience in how we shop. Through Loop, consumers can now responsibly consume products in specially designed durable, reusable or fully recyclable packaging made from materials like alloys, glass and engineered plastics. When a consumer returns the packaging, it is refilled, or the content is reused or recycled through groundbreaking technology.” Personal care Global giant P&G will be introducing reusable and refillable packaging on some of its most popular products. An array of the company’s brands, including Pantene, Tide and Oral-B, will be participating.

• Pantene is introducing a unique bottle made with lightweight, durable aluminum for its shampoo and conditioner.
• Tide's purclean plant-based laundry detergent will be available in a new durable bottle made from stainless steel with a simple twist-cap and easy pour spout.
• Cascade has developed a new ultra-durable packaging for Cascade ActionPacs which enable consumers to skip the prewash.
• Ariel and Febreze are participating with durable, refillable packaging that is also available in stores, testing a new direct-to-consumer refill and reuse model.
• Oral-B will test circular solutions for both its electric rechargeable and manual toothbrushes.
• Oral-B CLIC, a new iconic design for manual toothbrushes features a durable handle equipped with a unique mechanism that allows consumers to only exchange the brush head. The Loop platform will recycle used brush heads for both manual and electrical brushes.
• Pampers and Always will test collecting used hygiene products from consumer homes for further recycling using ground-breaking proprietary technology developed by Fater, a P&G and Angelini Group Joint Venture. The technology turns used absorbent hygiene products into secondary raw materials for higher value applications.

“The time to act is now. We are passionate about harnessing the power of our global reach and the strength of our trusted global brands to scale-up more sustainable solutions. Transformative partnerships are key to achieve this mission as no one can succeed alone,” says Virginie Helias, P&G’s Vice President and Chief Sustainability Officer. Among the participating brands is also Nestlé’s Häagen-Dazs. Food and beverage Among the participating brands is also Nestlé’s Häagen-Dazs. With the launch of Loop, Häagen-Dazs is debuting a reusable stainless steel double-walled ice cream container, designed by Nestlé’s global research and development group in Bakersfield, US. The design and transportation will keep the ice cream fresh and cold from the moment the canisters are filled until they are delivered to consumers’ homes, the company report. The canister also ensures that when it is opened, the ice cream melts more quickly at the top than at the bottom of the container. Consumers shopping for Häagen-Dazs on Loop can select from non-dairy options (Chocolate Salted Fudge, Coconut Caramel and Mocha Chocolate Cookie) or from traditional favorites (Vanilla or Strawberry) during the New York City pilot of the program, scheduled to launch in the first half of 2019. At the moment of the launch, no information on the costs of the initiatives on the participating consumer have been shared. A key theme at the World Economic Forum is the adoption of a circular economy over a linear one. The Loop initiative is a clear example of how a rapidly growing market, which will undoubtedly continue to grow as the year continues, can adapt to sustainable calls. It no longer needs to be “business as usual.” By Laxmi Haigh

Major brands are testing out reusable packaging in an attempt to cut down on plastic waste. Häagen-Dazs ice cream in a reusable metal container. Loop Some of the world’s biggest companies, including Unilever, Nestlé, and PepsiCo, are rolling out reusable packaging for certain products in an attempt to phase out single-use plastics — and to alleviate their own reputations as polluters. This move, still in the planning stages, is a necessary step in shifting the conversation on reducing carbon emissions from a consumer focus to one that holds companies responsible. Starting in May, Unilever’s Axe and Dove deodorants will come in refillable steel containers that are expected to last eight years. PepsiCo will start selling Tropicana orange juice in glass bottles and certain flavors of Quaker cereal in steel containers. Häagen-Dazs, owned by Nestlé, will come in refillable stainless steel tins. Procter & Gamble’s Pantene shampoo will come in aluminum bottles, and its Tide brand detergent will come in stainless steel containers. The idea is to get consumers to cut back on the single-use plastics that have become an indispensable part of everyday life. Businesses and consumers have long concentrated on the third “R” in “reduce, reuse, recycle,” but with this initiative, companies are renewing focus on the first two. (By the way, an estimated 25 percent of all recyclable products end up in landfills anyway.) And instead of encouraging changes on the supply side — i.e., putting the onus for sustainable living on the consumer, which was a common theme in arguments about whether plastic straws should be banned — this move indicates that companies are starting to accept their outsize contribution to global carbon emissions. This initiative, which is part of a partnership with the recycling company TerraCycle, according to a report by the Wall Street Journal, suggests that businesses are becoming increasingly uncomfortable with the suggestion that their practices contribute to global pollution. “I sometimes wonder if it’s a fair accusation that we’re in the branded litter business,” Unilever CEO Alan Jope reportedly said at a conference this week. Helping people cut down on plastics is certainly a good way of challenging that accusation, but there’s a catch. For now, the TerraCycle program is in a pilot phase. It will be available to 5,000 shoppers in Paris and New York City in May, according to the Journal’s report, and will expand to London later this year and to 10 additional cities, including Toronto and Tokyo, in 2020. Here’s how it works: Consumers who get selected for the trial get the chance to order hundreds of products online. Those products arrive in a reusable tote bag with no extra packaging. Once the containers are empty, TerraCycle picks them up, cleans them, and delivers refilled containers back to customers. “People talk about recyclability and reuse and say they’d like to be involved in helping the environment, so let’s see if it’s true,” Simon Lowden, the president of PepsiCo’s global snacks group, told the Journal. “You simply have to start somewhere to test it and see what the barriers are and who actually buys into the model,” David Blanchard, chief of research and development at Unilever, told the paper. It’s not surprising that these companies would want to test out costly new initiatives before offering them to the general public. But given the urgency of climate change — an October 2018 report by the United Nations’ Intergovernmental Panel on Climate Change said we have just 12 years to make unprecedented changes if we want to stave off the worst effects of global warming — it’s worth asking whether a lack of consumer interest or a perceived lack of sufficient profits will prevent reusable products from being offered to a wider consumer base. Nestlé, one of the companies participating in the TerraCycle initiative, is also planning to phase out many of its single-use plastic products and make all of its packaging recyclable by 2025. The company plans to completely eliminate certain “hard to recycle” plastics — like films, ice cream cone wrappers, and laminated paper cups — from its packaging. As Fast Company’s Mark Wilson pointed out, this isn’t going to come cheap — there’s “no immediate financial gain” to be made from going green. Companies can either absorb those costs, as Nestlé appears to be doing here, or pass them on to shoppers, which seems to be the case with the TerraCycle program. According to the Journal’s report, the reusable versions will cost “roughly the same” as their single-use counterparts, but users will have to pay deposits of $1 to $10 per container. Shipping starts at approximately $20. Given a choice between cheaper single-use products and more expensive reusable ones, why wouldn’t a cash-strapped shopper go with the cheaper option? (The answer, of course, is existential guilt and fear of watching a climate catastrophe play out in their lifetime, but not everyone can afford to go green.) Megacorporations aren’t the only ones redesigning products to make them more eco-friendly. The period underwear company Thinx recently designed a reusable tampon applicator that retails for $60, and other startups are making reusable versions of common household products like plastic wrap and Ziploc bags. In a world where consumers are often blamed for not being green enough — remember all the debates about whether banning plastic straws is actually good for the environment? — the TerraCycle program, despite being in its initial stages, suggests a future where the onus for changing consumption habits is placed on corporations rather than individuals.  

Loop represents a seismic shift in product consumption to a circular economy model—for ecommerce and retail—with reusable, luxury packaging at its core.

The new Loop circular shopping platform—unveiled today at the World Economic Forum in Davos—enables consumers to buy their favorite products in durable, not disposable, packaging. Supported by top brand owners such as Nestlé, Coca Cola, Unilever and Procter & Gamble, Loop relies on premium and long-lasting packaging that is designed for multiple reuse before ultimately being recycled. Loop is a business venture of recycling/upcycling and waste management company TerraCycle. Taking an audacious first step in solving what he sees as a global waste crisis that has been growing more than half a century, TerraCycle founder and CEO Tom Szaky recreates the “21st century milkman” by collaborating with more than 20 partners that represent more than 40 brands, global retailers, and package delivery and waste management companies. On top of massive environmental benefits as determined by lifecycle assessments, Loop elevates the consumer’s experience with the brand and its high-end reusable packaging. The shopping platform will launch this spring in two pilot markets—New York and Paris—with additional expansion underway. In an exclusive interview (see video at the top of this page), Szaky… • Tells us how Loop was developed and why; • Identifies the root causes of waste; • Explains how Loop challenges the idea of who “owns” product packaging—from consumer back to the brand; • Outlines the price-value equation for consumers, brands and retailers; and • Shares Loop’s additional growth plans, including expansion in the United Kingdom and Japan. The 43-minute video above showcases several brand’s Loop packages (some throughout, but most starting at 40:31) and also identifies the 20+ partners involved so far. Nestlé is one of the initial partners. Tommy See Tho, packaging manager at the Nestlé Product Technology Center for Ice Cream, has been working on the project from the beginning and designed the Loop packaging for five Haagen-Dazs products: non-dairy options Chocolate Salted Fudge, Coconut Caramel and Mocha Cookie; as well as traditional favorites Vanilla and Strawberry. Why participate in Loop? See Tho explains, “Nestlé is working to reduce its environmental impact in all its business operations, while also finding innovative new ways to connect with and provide great products to consumers. As part of these efforts, Nestlé is proud to join TerraCycle as a founding partner of Loop.” It took packaging specialists from Nestlé’s Product Technology Center for Ice Cream in Bakersfield, CA, one year to revolutionize the Häagen-Dazs pint to bring the brand to the Loop platform with a reusable container. See Tho tells us that the package—etched with the familiar Häagen-Dazs brand tapestry and design—is made of stainless steel and features a twist-off top. The metal canister keeps ice cream cold much longer than traditional paper-based ice cream packaging. “When creating more sustainable packaging, we also wanted to prioritize the consumer experience,” See Tho says. “For example, when opened, the package is designed so ice cream melts more quickly at the top to provide the perfect texture for enjoyment. The container is double-walled which keeps the ice cream cold but also makes the outside of the canister pleasant to hold. The metal lid is easy to open—it juts out so there’s a higher surface area to hold and twist. And, we rounded the corners of the container to make it easy to scoop and enjoy.”   The Häagen-Dazs double-wall stainless steel container keeps ice cream cold for a long time outside the freezer yet is comfortable to hold.   See Tho’s colleague, Walter Peterson, who is packaging sustainability manager at Nestlé USA, will be speaking at WestPack 2019 (Feb. 5-7; Anaheim, CA) at 1:00 - 1:55 p.m. on Tues., Feb. 5. In his presentation “How Nestlé Is Innovating Its Way to 100% Recyclable or Reusable Packaging,” Peterson will talk about Loop and about the company’s ambitious goal of moving to 100% recyclable or reusable packaging by 2025. So how does Loop work? In addition to the high-level interview with Szaky in the video above, multiple people at TerraCycle provide more details about this ground-breaking development.   Have consumers experienced this concept? If so, what was their reaction? TerraCycle: We’ve been running Consumer Insight Testing over the last year (12 months in Greater NYC and six months in Greater Paris). The majority of consumers who have tested Loop like the platform and name three major hooks in varying orders: convenience, premium products and no waste.   Which brands are participating? TerraCycle: These are the initial partners. However, partners are continually being added. Procter & Gamble, Nestlé, PepsiCo, Unilever, Mars Petcare, The Clorox Co., The Body Shop, Coca-Cola European Partners, Mondelēz Intl., Danone, Jacobs Douwe Egberts, Pladis, Lesieur, BIC, Beiersdorf, People Against Dirty, Nature’s Path, Thousand Fell, Greenhouse, Grilliance, Burlap & Barrel Single Origin Spices, Cozie and Preserve; retailer Carrefour; primary logistics and transportation company UPS and sustainable resource management company Suez.   Procter & Gamble has created reusable, refillable packaging for 11 of its most popular products as part of a new effort that aims to change the world’s reliance on single-use packaging and disposable waste. (Photo: Business Wire)   How can other brands get involved? TerraCycle: Loop participants must apply and be accepted into the platform. Brands interested in getting involved are welcome to contact the Loop Business Development team. Please email Anthony.Rossi@TerraCycle.com.   Are there product categories better or less suited to participating in Loop and why? TerraCycle: Any product category can be integrated into Loop. Currently Loop operations are flexible enough to handle ambient, chilled and frozen supply chains, as well as [temperature-]control items.   You say some packaging is being “scientifically” designed. Explain more, please. TerraCycle: For example, Nestlé partnered with TerraCycle to create brand-new packaging for its Haagen-Dazs brand that will keep ice cream frozen without the use of conventional refrigeration for an extended period of time—which is essential for doorstep delivery. The Loop Tote is also scientifically designed and, coupled with the Haagen-Dazs package, it enables the ice cream to stay frozen longer.   Who designs the packaging? Does each brand create its own packaging or is there a Loop or third-party design firm involved? TerraCycle: Each brand is responsible for designing its own packaging. Loop acts as a consultant in supporting each brand’s packaging innovation.   Durable graphics on Seventh Generation's soup pumps withstand aggressive cleaning between fills.   How does the package design take into consideration user experience or package functionality, as well as where the product is used or stored? TerraCycle: We encourage each Loop brand to design the most premium, durable, innovative packages to give the consumer the best experience possible.   Do different brands (of shampoo, for example) all use the same style package? How do brands maintain their image/equity/branding? TerraCycle: As of now, there is only one brand per category. Packaging style is up to the brand and Loop encourages them to be innovative and creative.   Are the packages direct-printed or do they have labels? If labels, are they durable, too, or are they easy to remove and reapply? TerraCycle: All packages are intended to be zero waste. Loop advises brands to utilize etching and printing.   Are all the packages rigid or is flexible packaging an option? Are flexible packages durable enough to be cleaned and reused? TerraCycle: All packaging in Loop is durable and all packaging material is agnostic. Brands/partners can use the material of its choosing provided it’s durable. Flexibility doesn’t necessarily equate to bad—that is, silicon is flexible but hyper durable.   How many minimum trips does the packaging have to withstand? How is it determined/tested that the package will, indeed, survive that many uses/reuses? TerraCycle: Packages are designed with durability in mind. The lifespan of each package will vary depending on each. There are variables in lifespan including aesthetics that can cause a package to be taken out of circulation and recycled. Loop partners use materials that can be recycled and turned back into a future pack at end of life.   Can packs at end of life be recycled into other products, following the TerraCycle model? Or does it have to be package-to-package recycling only? TerraCycle: The concept of the model is there is no waste. So, anything generated in the platform has a recycling solution.  Some things will not be package-to-package, but all will be recycled.   Just how durable are these packages? Scuffs and other visual defects could be a deterrent to some consumers in the whole reuse consumption concept. TerraCycle: Durability varies by package and consumers participating in Loop are aware the packaging is reused. It is determined by the brand when the package is taken out of circulation and recycled. The exact number of times is dependent on the specific packaging.   Signal innovated the product, a single dose of toothpaste in a "tab," as well as creating a reusable jar.   If consumers return the package for refilling/reuse once it’s empty, won’t they run out of product? Or is the concept to create a pool of packages that are reused for/by different consumers? For that matter, is the concept to create a pool of packages that are used/reused for/by different brands? TerraCycle: Loop brings to market a new subscription model: subscription based on consumption. Since the empty packages are returned to Loop, we are aware of consumers’ consumption rates and replenish only when they have finished the product. The target for turnaround is two days.   Will Loop use parcel carriers for product distribution or is it all direct delivery by Loop? TerraCycle: In the United States, Loop has partnered with UPS for its delivery.   What about Paris? TerraCycle: In Paris we have a delivery partner, but UPS is not the primary delivery partner.   Will Loop be doing the fulfillment/shipping of these products or will the brands have that responsibility? TerraCycle: All Loop products are stored at the Loop warehouse and sent to the consumer from the Loop warehouse. Loop receives empty packages back from consumers, sorts them, cleans them and returns the clean packages to the brands to be refilled.   How many Loop facilities are there and where are they located? TerraCycle: There are four Loop facilities: a warehouse in central NJ and a cleaning facility in Eastern PA; and a warehouse in the outskirts of Paris and a cleaning facility in Eastern France.   Who pays for shipping? Anything available like the Amazon Prime example of a membership with free shipping? TerraCycle: The consumer pays for shipping. However, the more product ordered—and the more full each Tote—the less the cost of shipping.   Who will be doing the cleaning and refilling? TerraCycle: All packaging is cleaned by Loop’s proprietary cleaning system.   Was or is there a need for any new type of packaging machinery to handle the cleaning, handling or refilling? TerraCycle: Yes, there was a need to develop new packaging machinery to handle the cleaning. The cleaning system is state-of-the-art and designed specifically for Loop packaging. Loop has designed cleaning processes specifically for Loop products. All packaging is sanitized and adheres to strict brand audits.   PepsiCo's Quaker cereal replaces the typical and often-criticized bag-in-box with a steel canister that is easy to open and pour from—and then can be resealed to keep the product fresh.   For any food or beverage products, how will brands ensure that packages are properly cleaned before refilling? How are they able to guarantee safety? What more can you tell us about the custom cleaning technologies developed by Loop scientists? TerraCycle: Loop’s state-of the-art cleaning systems have been scientifically developed to sanitize each item. The cleaning process was built in response to the stringent quality assurance controls of each of the brand partners. The system is proprietary, so we can’t provide more information. Loop partners with some of the world’s biggest brands and those brands have very stringent standards to which Loop adheres. All packages inside the tote are sealed and must pass strict quality assurance.  There will also be a tamper-evident seal on the Loop Tote to ensure the Loop Tote was not tampered with before opening.   Will this be for any consumer-initiated sales or only for recurring/subscription purchases? TerraCycle: Each product has a one-time purchase and subscription option.   What more can you tell me about the “groundbreaking technology” used for recycling the packaging? TerraCycle: Here are a few examples of some of the items being recycled for the first time through new and innovative technology. • Gillette/Venus Razor Blades: Through Loop, razor blades will be recyclable for the first time in France. • Always Pads: Through Loop, panty liners and pads will be recyclable for the first time in France. • Pampers: Through Loop, used baby diapers will be recyclable for the first time in France. • Oral-B Electric Toothbrush and CLIC Manual Toothbrush: Loop will collect used toothbrush heads and recycle them.

In late February at the World Economic Forum, in Davos, Switzerland, Tom Szaky, Founder and CEO of TerraCycle, Inc., unveiled what could be one of the most significant and disruptive advances in packaging to date. Along with a number of the world’s largest Consumer Packaged Goods companies and retailers, TerraCycle has created Loop™, a first-of-its-kind shopping platform that will enable consumers to responsibly consume products in customized, brand-specific, durable packaging that is collected, cleaned, refilled, and reused. The platform will launch in France and in the northeastern U.S. this spring as a pilot, offering more than 300 products in reusable packaging from such heavy-hitters as Procter & Gamble, Nestlé, Unilever, PepsiCo, Mondelēz International, and Danone, to name a few, as well as from smaller companies. The products will be available through the Loop e-commerce site as well as through retail partners’ e-commerce sites and brick-and-mortar locations. The Loop platform is designed to transform the relationship between consumers and packaging, with the consumer now borrowing the package from the brand owner, much like the milkman model. Through its circular system, Loop offers the convenience of single-use packaging while at the same time removing the responsibility from the consumer of disposing the empty packaging. It gets to the root of packaging waste, rather than trying to manage waste through recycling and other methods after it’s been created. Loop is also proving to have an extraordinary effect on package design. “It’s not just about eliminating waste; it’s about enabling the future,” says Szaky. “What brands have really started to see is that this is a platform through which they can commercialize innovation in packaging that was never possible in a disposable package—it was not even conceivable.” Metal containers for Häagen-Dazs ice cream that keep contents cold, toothbrushes with removable, replaceable heads from Oral B, and a stainless-steel Clorox package that keeps wipes wetter longer are just some of the innovations created for Loop. Enhancing the consumer experience, reimagined packaging for products such as Pantene, Seventh Generation, and Crest transform the products into premium, luxury items. A vision for a world without waste For 15 years, recycling company TerraCycle has promoted and advanced the idea of a world without waste. It offers a range of free programs for the collection and recycling of hard-to-recycle materials, creating new products from the waste. Its most recent project was to establish the world’s largest supply chain for collecting and recycling ocean plastics, which are used by P&G for its Head & Shoulders haircare product bottles and its Fairy dish soap containers, as well as for packaging for Unilever’s prestige REN Clean Skincare line. While these efforts are critically important, Szaky says they are not enough to reach the goal of a world without waste. Hence, TerraCycle created Loop—a circular economy shopping platform whose time has come. “It was far less difficult than I thought it would be to get CPGs and retailers to invest in the platform,” he shares. “It’s like the world is ready for it.” Szaky says he believes there were three factors that influenced the decision by CPGs to participate, even though it involved a complicated and expensive commitment. First was their trust in TerraCycle, built through longstanding relationships. “They knew we were not just a ‘fly-by-night’ operation,” he says. Second was the packaging crisis brought on by the issue of ocean plastics—a topic that didn’t exist three or four years ago. “People always cared about waste, but it’s more of a crisis now,” Szaky says. “And companies at their board levels are declaring it as a crisis in a way that’s never been done. In addition, there’s also a lot of legislation in the pipeline around anti-disposability [of packaging].” The third factor, as mentioned earlier, was brand owners’ realization of the functional and aesthetic innovation opportunities afforded by reusable packaging. “What packaging people love about this is that now it’s not a race to the bottom on a price per unit, which it sort of was before. It was always how to make the pack cheaper,” says Szaky. “With Loop, cost is not the primary question. The primary question is, how durable is it?” Design for reuse To enter Loop as a manufacturer, the first “rule,” Szaky explains, is that you must move to a reusable package—“that’s simply not negotiable,” he adds. Each CPG partner is responsible for their own package design, aided by guidelines and best practices developed by TerraCycle and logistics partner UPS. Through testing procedures conducted at its Package Design and Test Lab in Addison, IL, UPS identified solutions to issues related to shipping primary packaging via e-commerce. TerraCycle enumerates some of these suggestions in a design brief it provides brand owner partners when they sign on to Loop. What TerraCycle looks for in a finished package design is durability, cleanability, and a positive Life Cycle Analysis. “Those are the three things we watch for,” says Szaky. “But then everyone gets to do everything they could ever want to in a pack. You get a far greater range of design choices, because you’re not restricted to a tiny little price. So, a $1 package with 10 uses is 10 cents per use, but a $5 package with 100 uses is 5 cents per use. That’s actually pretty neat in the sense of being able to change the relationship with the economics of packaging.” The goal for a Loop package is to be able to withstand 100-plus uses, which is not such a stretch if you consider how many times a consumer might refill a reusable water bottle. “Here’s the point,” says Szaky, “once you get to 100 uses, it’s actually not that hard to get into the thousands. It’s hard to know, because we haven’t been able to prove 10,000 uses. For now, we’re aiming for 100 or more uses for every container.” The three most common types of materials being used for Loop packaging are, in order, stainless steel and aluminum, glass, and engineered plastics such as polycarbonate. So far, materials such as flexibles, disposable plastics, fibers, or leathers have not shown up in any Loop packaging. Given that the aim of Loop is zero waste, the tote in which products are delivered and empty containers are returned is also reusable. Consumer convenience Another factor that makes Loop so timely is consumers’ growing acceptance and use of e-commerce for CPG products. Loop will have its own e-commerce sites—Loopstore.com in the U.S. and maboutiquelook.fr in France—and Loop products will also be available on some CPG and retail partner websites. Retail partners such as Carrefour in France, Tesco in the U.K., and others will also be selling Loop products in their physical stores. In fact, Carrefour is so enthusiastic about the system it has put many of its private-label products into reusable packages. In the case of products ordered through e-commerce, the “loop” begins when a consumer places an order online. Their products are then delivered to their doorstep in the reusable Loop tote. When they are done with a product, the consumer places the empty package in one of the totes and alerts Loop to pick it up. (Both products ordered through Loop as well as through its partners’ sites are collected by Loop.) For staple products the consumer wants replenished immediately, the pickup triggers a new shipment. Consumers who purchase Loop products at a brick-and-mortar store can bring their empties directly back to the store. The beauty of the program at end of use is that consumers don’t have to clean or sort the empties. “It’s a completely disposable experience,” says Szaky. Sorting and cleaning is done by TerraCycle, which not only has the technology for straightforward cleaning jobs (e.g., cleaning rigid containers), but is also developing a range of technologies to handle more complex packaging components such as trigger sprayers and pumps. The company plans to have a warehousing and cleaning facility in every region in which Loop products are sold. With Loop, zero waste also means zero product waste. So when TerraCycle receives the containers for cleaning, it evaluates the leftover or used product to see if it can be recovered or recycled. Products are categorized as non-recoverable, as in the case of orange juice or window cleaner, or recoverable. “For recovery, there are two types of products,” Szaky explains. “The first is a product you can recover, but it would be unreasonable to reuse it, such as a razor blade or a toothbrush, which we then recycle. The other is a product, such as the casing of a pen, that it’s not unreasonable to reuse.” The final stage of the loop is the return of empty, clean packages to brand owners for refilling. The loop is closed when consumers receive new products. To ensure consumers return the empty packaging and the Loop totes, they pay a deposit for the items when they order the products. “This is key, since these are expensive packages,” says Szaky. “They are never owned by the consumer; the consumer borrows them. And, like anything you borrow, you put a deposit around it.” When the consumer returns the package, they receive 100% of the deposit back—no matter the shape in which they return it. TerraCycle’s view is that the durability of the package is not the consumer’s responsibility; it’s the responsibility of those who made it. Will Loop succeed? There are many reasons Loop should succeed—and in a big way. Among them, the furor over disposable, single-use packaging, the ease of e-commerce, the enhanced consumer experience allowed through higher-quality packaging, and Loop’s appeal to CPGs that are pushing to meet their own aggressive sustainable packaging goals. But will it take off? Szaky says signs are good. As more of the world’s largest CPGs join the platform, momentum is building, spurring others to join or be left behind. In just one week, he shares, SC Johnson with its Method and Ecover brands, global snacking company Pladis, and Reckitt Benckiser signed on. “And it wasn’t even a unique week,” he says. Another sign boding well for Loop is the response it has received from the 25 families in New York and the 25 in Paris that have already trialed the platform. Szaky says TerraCycle learned from these trials that once consumers start receiving their products in reusable packaging, they start getting “allergic” to disposability. “The question is, what is the tipping point?” he questions. “Do 20 percent of the products in your life have to be durable for you to say, ‘Forget disposability, I’m done.’” Compared with other strategies launched to reduce or eliminate packaging waste, such as “package-free” stores and self-dispensing systems, Loop celebrates packaging, enhancing its many functions, such as beauty, product protection, and convenience. “Packaging isn’t evil,” declares Szaky. “Neither is the idea of plastic or metal or paper. The evil, I think, is spending a lot of effort creating something awesome and then using it once and throwing it away.”

By now, everyone is aware that over-packaging is ruining the environment. But how to remedy the situation? Certainly FMCG companies don't want consumers to use fewer products, less often—that's a radical idea that would certainly work, but will certainly lead to lower sales and profits.  

Plastic is a hot topic in Davos this week and more big-name companies are stepping up commitments to reducing plastic waste -- playing catch-up to other industry leaders. Fast-food chicken chain KFC said Thursday that all plastic-based, consumer-facing packaging will be recoverable or reusable by 2025. Walmart Canada announced plans on Wednesday that include reducing plastic bag use by 2025 that will take about 1 billion bags out of circulation, and replacing single-use plastic straws with paper alternatives by 2020. “This commitment represents a public acknowledgment of the obligation we have to address these serious issues” of environmental sustainability, KFC Chief Executive Officer Tony Lowings said in a statement. Waste from plastic has become a flashpoint with environmentalists and consumers, and companies are reluctant to be seen as falling behind. Oreo maker Mondelez International Inc. and Nestle SA are among food giants that announced similar sustainability goals last year. KFC parent Yum! Brands Inc. previously said it will source all fiber-based packaging from certified or recycled sources by 2020, as a supporting partner of the NextGen Consortium. Starbucks Corp., McDonald’s Corp. and Coca-Cola Co. are also partners. Walmart Canada, with 411 stores and more than 85,000 employees, announced additional goals, including a 2025 target to have 100 percent recyclable, reusable or compostable packaging for its own private brand products as part of a global commitment launched by The Ellen MacArthur Foundation in 2018. Thus far, more than 290 companies have signed on for the 2025 date.

‘Aspirational Goal’

    “This is an aspirational goal when you think about it,” said Conrad MacKerron, senior vice president of As You Sow, a nonprofit group focused on shareholder advocacy. Still, publicly committing to such a target helps investors and consumers hold companies accountable, MacKerron said. There are also cities in the U.S. that have made zero-waste commitments, MacKerron said, citing San Francisco as an example. Nestle SA and PepsiCo Inc. are among some 25 consumer companies taking part in a program announced Thursday at the World Economic Forum in Davos that provides products in reusable packaging that can be returned for a refund. The “Loop” initiative, which refers to a theoretical circular economy where nothing is wasted, is led by New Jersey-based recycling company Terracycle Inc. KFC also said Thursday it made good on a promise that by the end of last year all chicken purchased would be raised without antibiotics important to human medicine. That initiative got underway in 2017 after pressure from shareholders. Other fast-food chains began phasing out chicken with antibiotics years earlier. Chick-fil-A Inc. began in 2014, Subway eliminated it in 2016 and Taco Bell, also owned by Yum! Brands, reached the goal in 2017. Still, KFC helped tip the chicken industry in an important way, according to Lena Brook, director of food campaigns at the Natural Resources Defense Council. “KFC proved that even in perhaps a more complex reality that change is possible if you commit to it,” Brook said.

Big companies are testing a return to the “milkman model”—that is, addressing waste by shifting to reusable containers. Twenty-five of the world’s biggest brands said they will make the change this summer, including Procter & Gamble Co., Nestlé SA, PepsiCo Inc. and Unilever PLC, the Wall Street Journal reported. These companies will use glass, steel, and other reusable containers that can be returned and cleaned to be used again. The participating companies see it as a way to reduce waste—and there’s a lot of it. According to data reported by the Earth Day Network, 9.1 billion tons of plastic has been produced since the 1950s when it was first introduced, and most of it still exists in some form. “From a philosophical point of view, we have got to lean in and learn about this stuff,” Simon Lowden, the marketing head for PepsiCo’s snacks business told the Journal. “People talk about recyclability and reuse and say they’d like to be involved in helping the environment, so let’s see if it’s true.” Business leaders in Davos this week for the World Economic Forum also discussed the issue of plastic waste. A new shopping platform, called Loop announced at the forum on Thursday that it would start delivering products like shampoo and laundry detergent for manufacturers in reusable containers, doing away with the disposable plastic containers, The Associated Press reported. Brands partnering with Loop include Nestle, Procter & Gamble, PepsiCo, and others. “Our goal is that by 2030, all of our packaging will be reusable or recyclable,” Virginie Helias, the vice president, and chief sustainability officer at Procter & Gamble, told the AP. Loop will start its offer with 300 products, with plans to expand down the line. Products include Pantene shampoo, which would be delivered in an aluminum pump container, and Haagen-Dazs Ice Cream, which would come in a stainless steel tub. “We have invented a process whereby we deconstruct PET plastic and polyester fiber into it base ingredients and then repolymerize them back into virgin-quality plastic. A great example would be to take an old used polyester carpet or sweater and turn that into a water bottle for one of our many clients such as Coca Cola or Pepsi-Cola,” Daniel Solomita, Loop founder and CEO, said in a statement to Fortune. While the company could help decrease garbage waste, it would also mean more delivery trucks, according to Tom Szaky, the CEO of the recycling company TerraCycle, which is behind Loop. In 2016, transportation, including cars, trucks, commercial aircraft, and railroads represented 28% of U.S. greenhouse gas emissions, according to the Environmental Protection Agency. Light-duty vehicles accounted for 60% of the total transportation-related emissions, followed by medium- and heavy-duty trucks at 23%.