Posts with term Procter & Gamble X

Rinse, refill, repeat

P&G Beauty strikes a major blow to plastic waste with its new refill system including a reusable aluminium shampoo bottle and recyclable¹ pouch that uses 60% less plastic²

Tom Szaky, CEO of TerraCycle, works with every major cosmetic company in the world, helping them to be more sustainable. He says this is the first time he has seen a large company with mainstream brands create a refillable bottle at scale, out of an alloy. “From a supply chain point of view, this is a big undertaking. Hopefully, it will inspire other organisations to do the same and create a movement where we start buying more of our shampoos in reusable systems versus single use systems.”

P&G to launch refillable shampoo bottles in 2021

The consumer goods giant unveiled images of the new format for the first time today (22 October). Customers will be encouraged to purchase a reusable aluminium bottle, which they can refill from new pouches. The pouches consist of a flexible plastic packet with a rigid plastic neck.
Several of P&G’s brands are already listed on Loop – TerraCycle’s multi-brand refill platform which is currently operating in the US, France and the UK. Loop sees customers pay a deposit fee on each piece of packaging that is refunded to them when TerraCycle’s courier partners collect the empty containers.

Sustainability Takes Center Stage

It’s a bit of an understatement to say that health concerns are currently driving consumer behaviors and purchases in today’s marketplace. Research conducted by Paris-based Ipsos in July showed that 85% of consumers are concerned about the COVID-19 outbreak. According to the Washington, D.C.-based International Food Information Council, that same percentage of consumers (85%) reported that they’ve changed the way they eat or prepare food in the wake of the pandemic. While the novel coronavirus is a major, and arguably overriding, worry, that doesn’t mean that people aren’t making decisions based on other timely situations, from social issues to environmental concerns.

Retailers Design the In-Store Experience for Reusable Packaging

Tom Szaky, the chief executive and founder of TerraCycle, imagines a world where shoppers take their trash with them to the grocery store. In his vision, people purchase products like ice cream and deodorant in reusable containers. At the cashier, they pay an additional cost: a refundable packaging deposit. They return empty containers to the store, which collects them for cleaning and reuse. The consumer gets each deposit back and buys another tub of ice cream or stick of deodorant from the shelf. The cycle starts again. Soon Mr. Szaky is going to find out if his idea can work in the real world. Retailers including Kroger Co. next year plan to make space in stores for Loop, TerraCycle’s refillable packaging platform. Tesco PLC in the U.K. and Carrefour SA in France also are planning to install in-store Loop “corners”—areas of a store designed for products packaged in Loop’s containers—in the next 12 months. Loblaws Inc. in Canada and Woolworths Group Ltd. in Australia will bring Loop stations to stores sometime in 2022, a Loop representative said. Aeon Co., Japan’s largest supermarket group, plans to introduce Loop corners to 16 stores in the greater Tokyo area next March. “We want people to come in and fall in love with these really cute, beautiful packages, understand the message and get excited about it,” said Satoshi Morikiyo, general manager of  convenience goods at Aeon. “Shopping trips are not necessarily something people look forward to, but this is a cool experience that offers something of a discovery—something new and fun.”

Reuse and refill: The model that will help consumers quit single-use plastics

By moving away from disposable packaging, companies can address the global problem of plastic waste. According to the United Nations Environment Programme, only about 9 percent of the 9.9 billion tons of plastic generated globally since the 1950s has been recycled. And almost halfPDF of the plastic waste poisoning marine life, contaminating food, and clogging waterways and sewers comes from consumer packaging. As citizens and governments wake up to this plastic pollution problem, they’re turning to business to solve it. In response, companies are trying to craft new approaches to plastic, whether reducing overpackaging or rolling out biodegradable materials made of seaweed and cornstarch. But one solution — the reuse and refill business model — stands out for its potential to shift consumer behaviors while unlocking new revenue streams and cost savings for companies. It’s easy to see why cheap, sturdy, and lightweight plastic quickly became a convenient, even innovative, packaging option for consumers. The popularity of plastic skyrocketed in developed countries in the 1970s after the invention of the polyethylene shopping bag. Within two decades, plastic packaging had flooded the world; consider how, in developing countries, companies have marketed items as varied as shampoo and hot sauce in tiny single-use sachets. Products in cheap, throwaway packaging solved immediate consumer problems — for example, by offering unbeatable value pricing to millions of low-income consumers — but created a long-term health and environmental disaster. Now, businesses such as Chilean startup Algramo, literally meaning “by the gram,” are tackling the crisis by offering the same value to consumers, but in reusable containers. Algramo makes products including rice, detergent, and other everyday staples available in small, affordable quantities via smart vending machines and reusable containers. Its bottles are equipped with RFID tags that allow consumers to earn discount credits with each use, incentivizing them to refill rather than throw away the containers. Flush with funding from Closed Loop Partners, Algramo is set to introduce this innovation in the U.S., too. It has good reason to do so: On a per capita basis, North America, Japan, and Europe generate the most plastic waste. Algramo is in good company. As part of the New Plastics Economy initiative, launched two years ago by the Ellen MacArthur Foundation and the U.N. Environment Programme, more than 400 organizations have set concrete targets toward reducing plastic use by 2025. Many of those companies, both startups and established brands, are testing reuse and refill solutions. Their motivations aren’t strictly altruistic: The Ellen MacArthur Foundation estimates a US$10 billion business opportunity in converting even 20 percent of global plastic packaging to a reusable model.  

Australian shavers now have their own recycling program

Australia’s first national recycling program for razors badged the Gillette Razor Recycling Program has launched after P&G brands Gillette and Venus joined forces with TerraCycle.   The program covers disposable and refillable razors, blade cartridges and plastic packaging for all brands of razors and their packaging. Just like a takeaway coffee cup, while technically recyclable, the metal and plastic components of razors are also time consuming to separate and sort. This means that they usually end up in landfill. Now any household, community organisation, business or individual can sign up to recycle these items as well as raise money for the school, sports club, or charity of their choosing. To participate in the program, shavers sign up through the TerraCycle website, download a free shipping label and place their used razors in any cardboard box or carton. These can then be sent for free through Australia Post. TerraCycle Australia and New Zealand, general manager Jean Bailliard said he expected that this would be one of TerraCycle’s most popular recycling initiatives to date. “We expect there are many Australians who will be very keen to start collecting and returning their razor blades and packaging so they can be recycled, rather than placing them in landfill. “Later in the year once normal routines commence, we will also be encouraging community participation through sports clubs, gyms and our existing community networks to increase the volume of collections even further,” he said.

Ulta launches Conscious Beauty initiative

Dive Brief:

  • Ulta on Tuesday announced the creation of Conscious Beauty, an initiative that will launch in the fall and certify beauty brands under five pillars: clean ingredients, cruelty free, vegan, sustainable packaging and positive impact.
  • The clean ingredients label will certify that a brand meets Ulta's "Made Without List," which consists of parabens, phthalates and other ingredients from over 25 chemical categories, according to a company press release.
  • As part of the sustainable packaging initiative, which highlights brands made with reduced, recyclable or refillable packaging, Ulta will pilot a "circular shopping experience" with Loop. The beauty retailer is also pledging that 50% of all packaging sold by 2025 will be recyclable, refillable, or made from recycled or bio-sourced materials.

Dive Insight:

In the midst of a pandemic that has threatened to put many things on the back burner, including sustainability initiatives, Ulta Beauty has announced a wide-ranging effort to hold itself accountable to more conscious practices. The beauty retailer set its first sustainable packaging goals as part of the initiative, and partnered with various third parties for the certification process, including ClearForMe to verify brands have clean ingredients, and PETA, Leaping Bunny and Choose Cruelty-Free to help certify cruelty-free brands. The company also established a Conscious Beauty Advisory Council to "ensure accountability and drive the initiative forward." Currently, the council includes CEO and co-founder of Loop, Tom Szaky, and co-founder and COO of Credo Beauty, Annie Jackson, among others. A partnership with Credo Beauty was announced by Ulta in June, and the clean beauty collection, dubbed the Credo Collection, will launch within the conscious beauty platform. While all of the certifications are meant to help customers identify brands that share their values, it's the sustainable packaging initiative that Ulta itself is committing the most to. In addition to setting a 50% sustainable packaging goal, the retailer also plans to support the Sustainable Packaging Coalition, and will use How2Recycle instructions on its owned brand packaging and print materials. Ulta is hitting on some of the biggest issues in the beauty space, and retail more broadly, with this launch. For years, the level of waste created by retail packaging has been scrutinized, and retailers have turned their focus to tackling that and other major sustainability issues, including making products with more sustainable materials and building up the circular economy. Loop is one of the companies at the forefront of sustainable packaging, partnering with companies like Procter & Gamble, Unilever and Kroger in 2019 to test out refillable packaging solutions. Clean and sustainable beauty initiatives have also grown to define the beauty space in recent years, with Sephora launching a Clean at Sephora category in 2018 and Neiman Marcus debuting an online shop centered around clean beauty products in 2019. Even big-box players like Walmart and Target have added brands to their assortment that focus on clean ingredients. "As the beauty retail leader, we have the unique opportunity to inspire positive change in our industry," Dave Kimbell, president of Ulta Beauty, said in a statement. "With Conscious Beauty at Ulta Beauty, our focus is to educate, guide and simplify product choice and elevate those brands doing good for our world. This initiative helps our guests readily navigate our assortment through the lens of what matters most to them."

The pandemic could have ruined this sustainable business. But instead, it's expanding nationwide.

When the coronavirus pandemic hit the United States, local governments and big companies quickly changed their tune on reducing single-use plastics. They started prohibiting cloth totes in grocery stores and rejecting reusable coffee mugs at cafes. They embraced disposables once again, seeing them as the safer, more hygienic option.
Maine delayed its plastic bag ban from April 2020 to January of next year. San Francisco in March instructed businesses to bar customers from using their own bags, mugs or other reusable items in order to promote social distancing. Meanwhile, Starbucks (SBUXstopped allowing people to use their own mugs, and McDonald's (MCDdecided to close self-serve soda fountains as it reopens its doors.
For Loop, a shopping service that sells items from Häagen-Dazs ice cream to Tide laundry detergent in reusable packages rather than the single-use containers that normally hold the products, consumer fears around reuse could pose an existential threat. But instead of retreating during the pandemic, the project has reported sudden increases in sales and is about to expand in a big way. Loop, which launched as a pilot last year in the Northeastern US and Paris, is planning to expand to the 48 contiguous states by July 1.

Loop to Launch E-Comm Platform Nationwide

Loop products in returnable packaging are scheduled for launch nationwide this month, while retail partners in the U.S., France, and Japan plan to offer Loop in their stores later this year. For those consumers going the e-commerce route, there is a $20 shipping fee for orders under $150. In addition, the tote used to deliver and return product comes with a $15 deposit fee. For those consumers going the e-commerce route, there is a $20 shipping fee for orders under $150. In addition, the tote used to deliver and return product comes with a $15 deposit fee. As of presstime, consumers across the U.S. who are interested in shopping online for a range of grocery, household, and personal care products in gorgeously designed, durable, and resusable packaging will have the chance in June, when Loop launches nationwide. Since May 2019, the ground-breaking Loop circular shopping platform has been available in 10 states in the Northeast and in Paris. According to Tom Szaky, founder of recycling company TerraCycle and of Loop, the 10-month pilot allowed participating Consumer Packaged Goods companies, retailers, and Loop itself to gain insights and tweak the program for wider availability. Just as exciting, if not more so, according to Szaky, is the news that Loop will be launching in retail stores, including Kroger in the U.S., Carrefour in France, and AEON in Japan, later this year. Currently 400 brands have joined Loop, 20% of which are now available for purchase on Loopstore.com and 80% of which are still in development. Says Szaky, it can take a CPG anywhere from six to 18 months from the time they join Loop until they have product ready to ship. Among some of the more well-known CPGs that have signed on are Seventh Generation, Clorox, Procter & Gamble, Nestlé, Unilever, and Mars Petcare. Loop also sells a “private-label” brand, Puretto, which Szaky says is being used by name-brand companies to test products on the platform while they develop their own, unique version. “As soon as that version is live, we disable the Puretto version,” he explains. Szaky notes that the rapid speed of the nationwide launch—Loop was only just unveiled in February 2019—is due to the fact that “it’s a platform and not a producer or retailer.” He continues, “By being a platform, it is really our fantastic brand partners that are doing all the production and ramping up, and the retailers that are doing the scale up and later the in-store deployments. What we really have to ramp up is the ability to accept that used packaging, sort it out, and clean it. And that’s an area that TerraCycle has almost two decades of experience doing in disposables. Now we just have to bring the same experience to reusables.” With the e-commerce model, all packaging—both filled and empty—is handled through Loop’s Northeast location, from which it sends orders to consumers and where it cleans the empty packaging. Loop will also soon be adding another location on the West Coast. “As the stores move into bigger and bigger volumes, we will deploy in total seven major facilities in the U.S.,” Szaky says. “I expect that to take about two to three years.” Outside the U.S., Loop has one facility in each country in which it operates and is planning to add more. When the in-store platform becomes available, CPGs will supply the stores with product directly. Then, when consumers are through with the product, they will drop off the empty packaging at the store, and Loop will pick it up for cleaning. For those consumers going the e-commerce route, there is a $20 shipping fee for orders under $150. In addition, the tote used to deliver and return product comes with a $15 deposit fee. Deposits are also required for every package and range anywhere from $1.25 for a glass liquid soap dispenser bottle from Soapply, for example, up to $10 for a rust-resistant metal container with one-touch dispensing lid for Clorox disinfecting wipes. One of the biggest learnings from the Loop pilot says Szaky is that the deposit costs have not deterred consumers from using Loop. “I thought they would be, but they haven’t in any capacity,” he says. “Even deposits as high as $10 have not been a deterrent. So we’re very, very happy about that.” Not only that, Szaky says, but they also found that within 90 days of purchase, there was a 97% return rate for the packaging by consumers. “I was surprised, but I think it has to do with the fact that people want the product inside, and they’re happy to have us professionally clean it and have it professionally refilled so they can access it again.” For the in-store business, the only deposits are for the containers, which consumers are refunded when they return the empty packaging to the store.