Participating in the circular economy, in which businesses reuse materials, could help you reduce waste and attract customers.

BY ANNA MEYER@ANNAVMEYER     If your business isn't participating in the circular economy, you may want to spend part of Earth Day on Thursday asking yourself, "Why not?" While many companies follow a linear economy in which products are created, used, and thrown away, companies that participate in the circular economy continuously recycle and reuse their materials. It's designed to make doing business and combating climate change mutually beneficial. For many businesses, getting existing customers to remain loyal to their brand could require switching to a circular model. A 2020 study from IBM and the National Retail Federation found that 57 percent of U.S consumers are willing to change their purchasing habits to help reduce negative environmental impact. "Companies can't afford to not put the planet first," says Mera McGrew, founder of the soap company Soapply. "Companies that are not aligning with consumers' values will be left behind." Founded in 2015, Soapply bottles soap in recycled glass that can be refilled, reused, and recycled. The New York City-based company participates in the Loop program alongside brands like Gillette, Tide, and Clorox. Created by the recycling company TerraCycle, the program helps companies sell their products in reusable containers that are managed and cleaned by TerraCycle. Customers pay a refundable deposit for the reusable packaging.     Soapply.COURTESY COMPANY Many business owners think participating in the circular economy means more expenses, but doing so can actually save businesses money by reusing materials, says Kate Daly, managing director of the Center for the Circular Economy at Closed Loop Partners, an investment firm in New York City. "Right now, many companies are only selling something once that they could be selling multiple times," Daly says. During the past three years, the Center for the Circular Economy has hosted competitions funded by brands including Starbucks, Walmart, and McDonald's to design sustainable alternatives to paper to-go cups and single-use plastic bags, with winners receiving funding and access to the center's accelerator program. Switching to a circular model also has benefits for hiring. Nearly 80 percent of respondents to a 2019 Glassdoor survey indicated that they would consider a business's mission when thinking about whether to apply for a job. When implementing sustainability initiatives, Daly advises auditing any plans from a user experience perspective to make sure that your solutions are convenient and accessible. You should also consider publishing a public sustainability report, as the Berlin, Germany-based meal delivery company HelloFresh did with its 2020 sustainability report. Included in the initiatives published in the report are goals to lower the company's carbon emissions by 60 percent per euro of revenue and to reduce food waste at its facilities by 50 percent per euro of revenue between 2019 and 2022. It also cited clear steps it's taking to use sustainable packaging. While it's important for companies to invest in sustainable practices, particularly when customers demand them, not all environmentally friendly initiatives are going to be a boon for business. "There's no point in creating a product or service, however 'green,' that customers don't adopt," Daly says, adding that business owners should reach out to other companies in their industry that have already made transitions to a circular economy. "I would encourage companies, regardless of their size, to not feel like they have to go it alone," Daly says. "Collaborating with stakeholders, whether it's in policy or consumer education, is really important so that a transition to circularity feels accessible no matter what."

Ulta Beauty teamed up with Loop to create a one-stop online shop for sustainable, cruelty-free, and vegan products. BY CHARLOTTE POINTING | MARCH 11TH, 2021   Ulta Beauty’s packaging just got more sustainable, thanks to a new partnership. The popular U.S. beauty chain has teamed up with Loop, a zero-waste venture owned by TerraCycle, a global leader in recycling. Together, the two companies have created Loop by Ulta, a one-stop online shop for all things sustainable beauty, stocking a range of cruelty-free and vegan-friendly brands, including Burt’s Bees, Soapply, Ecco Bella, and Meow Meow Tweet. Customers place their orders through the website and the products are delivered to their door, all very standard procedure. But here’s where things change: Instead of using the product and throwing it away when they’re finished, customers pop the empty bottles into a reusable “exclusively designed” Loop tote bag. They then make arrangements through the Ulta by Loop website to have their old empties picked up; these are subsequently cleaned, refilled, and placed back onto the virtual shelves for sale. Tom Szaky, the founder and CEO of Loop and TerraCycle, said in a statement sent to LIVEKINDLY: “Consumers are increasingly asking for more environmentally responsible options in this category and this collaboration provides them with a solution that is simple and convenient.” Ulta is trying to bring forward “innovative solutions” to the beauty industry’s waste problem. | @shoploopstore

A Sustainable Beauty Loop

Loop by Ulta’s approach creates a circular economy instead of the standard linear one (where products are bought, used, and then thrown away). A circular economy keeps resources in a loop (get it?), which reduces waste in a big way. Across industries, waste is an urgent problem, and the beauty industry is no exception. Globally, more than 120 billion units of cosmetic packaging are produced annually, and much of this ends up in landfills and the ocean. Dave Kimbell, the president of Ulta Beauty, says that “as the nation’s leading beauty retailer,” the company has a responsibility to bring forward “innovative solutions.” He said: “As we work to deliver more informed, conscious product choices to our guests, this first-of-its-kind partnership with the pioneers at Loop is an exciting step on our journey.” “We look forward to seeing our guests embrace Loop by Ulta Beauty as we all work together to create a lasting legacy for our world.” Shop Loop by Ulta’s sustainable product range here.

TerraCycle’s milkman-like delivery model, Loop, expands online and at brick-and-mortar locations. Kate Bertrand Connolly 1 | Nov 04, 2020 Following a successful pilot program that started in 2019, the Loop circular shopping platform from TerraCycle has expanded its online operation to provide an unlimited number of US consumers from coast to coast with home delivery of products packed in reusable packaging, as well as pickup of the empty packages. Loop also made its brick-and-mortar debut recently, in France. “Carrefour just brought Loop into its first store,” says Eric Rosen, publicist, US public relations, for Loop/TerraCycle. “We anticipate Loop being in-store in other retailers in 2021.” Carrefour’s online Loop service launched in Paris last year. Following a successful pilot program that started in 2019, the Loop circular shopping platform from TerraCycle has expanded its online operation to provide an unlimited number of US consumers from coast to coast with home delivery of products packed in reusable packaging, as well as pickup of the empty packages. Loop also made its brick-and-mortar debut recently, in France. “Carrefour just brought Loop into its first store,” says Eric Rosen, publicist, US public relations, for Loop/TerraCycle. “We anticipate Loop being in-store in other retailers in 2021.” Carrefour’s online Loop service launched in Paris last year. In the United States, consumers will find Loop products at Kroger stores starting in 2021. Also in North America, Burger King and Tim Hortons restaurants plan to launch Loop pilot projects next year. Loop’s online scale-up coincides with an explosion in internet shopping and home delivery fueled by the COVID-19 virus, though it’s also a natural next step considering the success of the pilot program. More than 100,000 people have signed up for the service to date. With the online version of Loop, consumers buy products that have been filled into reusable packaging made, for example, of metal or glass. They then return the empty packages to Loop, which cleans the packages for refilling by Loop’s brand partners. Loop packs consumer orders into reusable totes for delivery, and consumers return the empty packaging to Loop using the same totes. Loop products are packed and shipped from the company’s New Jersey warehouse to all US ZIP codes. (Frozen products are only shipped to locations where delivery can be made within 24 hours.) The platform launched in 2019 as a pilot program in the Mid-Atlantic United States and Paris, France. In July 2020, Loop launched online in the United Kingdom, working in partnership with retailer Tesco. A Canadian online launch is planned for Toronto in February 2021. Loop has expanded rapidly vis-à-vis brand partners and product selection, now offering more than 80 brands and 400 products in the United States and Europe. Product categories include grocery, beauty, health and personal care, and household essentials. Brand owners range from giants like Nestlé and Procter & Gamble to start-ups like Soapply. Next year will be an important one for Loop in brick-and-mortar restaurants and stores. Burger King plans to start a pilot Loop program in 2021 that will offer eat-in and to-go customers sandwiches and drinks packed in returnable, reusable food containers and cups. Consumers who choose the reusable packaging will pay a deposit when they place their order and get the deposit back after returning the packaging to Burger King. The pilot will start in select Burger King restaurants in New York City; Portland, Oregon; and Tokyo, with additional cities to join in the months that follow. Canada’s Tim Hortons quick-service restaurant chain has announced a similar Loop pilot. The program will start in 2021 at select Tim Hortons restaurants in Toronto. Also starting next year, US consumers will be able to visit Loop in-store at select Kroger locations. The plan for Loop in brick-and-mortar stores is not only to sell Loop products but also to collect the empty packaging for cleaning and reuse. Loop publicist Rosen discusses the program’s burgeoning expansion, both online and in-store, in this exclusive Packaging Digest Q&A. How many brick-and-mortar retailers in the United States will be selling Loop products in 2021? Is this a channel Loop is interested in exploring further? What have consumers said about their willingness (or not) to take empty packages back to a physical store? Rosen: As of now, in the United States, there will be one brick-and-mortar retailer, Kroger, selling Loop products in-store in 2021. There are, however, many retailers who are and will be integrating Loop into their ecommerce platforms. Yes, [in-store] is a channel Loop is pursuing and will continue to pursue. In fact, Loop just opened in its first brick-and-mortar retailer — Carrefour in France. As for consumers’ willingness to take empties back to a physical store, while we haven’t surveyed consumers, we believe returning empty packaging will be embraced. When will Loop be expanding into additional markets in Europe and Asia, either online or via brick-and-mortar stores? Rosen: Loop will be launching in Canada, Australia, and Japan in 2021. We will continue to seek opportunities to launch in other countries and will be announcing more as we solidify plans. How will Loop, brand owners, and/or retailers educate consumers about how in-store Loop works and its benefits? Rosen: Loop, brand owners, and retailers educate consumers through websites, social media, and earned media placements in outlets worldwide.

Now that the Loop program is national in the United States, how many locations are cleaning the empty, returned packages?

Rosen: In the United States, the cleaning facility is in Pennsylvania. We will be adding facilities as we scale.

What, if anything, has changed in the logistics of the Loop program (outgoing and incoming packages)? What, if anything, has changed with the lifecycle analysis of the packages sold in the Loop program because of the additional distances?

Rosen: Nothing has changed in the logistics. Based on Loop’s third-party lifecycle analysis, creating a durable (or “reusable”) container uses more energy and resources than creating a disposable (or “single-use”) container. However, over time, the reusable container has a lower environmental and economic cost, as it does not need to be remanufactured on every use. Instead, it is transported and cleaned, which is a much lower environmental cost. According to Loop, the efficiency of a reusable package in Loop is even more evident as consumers participate repeatedly. After two to three uses of the packaging, the environmental impact is breakeven. By 10 uses, there is a more than 35% reduction in environmental impacts.

Are all products still being shipped to consumers from Loop’s New Jersey warehouse? Is that still the plan moving forward, to have just one warehouse?

Rosen: Loop’s New Jersey warehouse ships all products in the United States. As we scale, we intend to have additional warehousing in other parts of the country. The Loop warehouse in France is in Lille, and the one in the United Kingdom is in Crick.

How well are the durable packages holding up to use, cleaning, and reuse? Are the brands getting the number of uses they hoped they would?

Rosen: The durable packaging is holding up well as it goes through Loop cycles. I can’t comment on the brands, and what their expectations were/are.

Is UPS still Loop’s only partner for deliveries/pickups? Are there any plans for additional delivery services to be involved, especially as volumes and delivery areas are growing?

Rosen: Yes, Loop’s US logistics partner is UPS. In France, it’s Colisweb, and in the UK, it’s DPD. There are no plans for additional delivery services to be involved.

The allergen warning on the Loop website states: “Please note that the Loop Tote is packed in a facility that may have handled wheat, milk, eggs, tree nuts, peanuts, and soy, and may contain traces of the same. If you or someone in your family has a serious food allergy, Loop may not be for you.” Are there any plans to address this, so people can safely order Loop products without worry from allergens?

Rosen: There are no current plans to address this.

Who designs the Loop packages?

Rosen: Each brand partner is responsible for the design of its packaging. All packaging must be approved by Loop.

What is the size range of Loop packages?

Rosen: The smallest container is 20 ml (less than an ounce) for Tea Tree Oil from The Body Shop. The biggest package is an 8-lb container for kitty litter from Purina.

How have consumers reacted to Loop since its launch last year?

Rosen: We have had an overwhelmingly positive response to Loop since its launch. In fact, meeting consumer demand is what led to the rapid expansion — from 10 states to every ZIP code in the contiguous 48 states. We have more than 100,000 sign-ups, and that continues to grow.    

Loop is taking its effort to curb single-use packaging national with expansion to 48 states. After a successful pilot run, the revamped “milkman” delivery and e-commerce platform — which helps to repackage beauty and consumer goods into reusable and refillable packaging — is looking to facilitate greater circularity. New Jersey-based company TerraCycle first tested its Loop venture in New York City, and later diffused the premise of circularity to consumers in the mid-Atlantic and abroad to Paris and, most recently, the U.K. And both brands and consumers are biting. “Consumers across the country have urged us to bring Loop to them so we’ve scaled as quickly as possible to make that happen,” Tom Szaky, founder and chief executive officer of Loop and TerraCycle, said in a statement.

Loop, the global circular shopping platform from TerraCycle, is now available in every zip code in the 48 contiguous U.S. states. The service now features more than 80 brands and 400 products globally, including France and the United Kingdom, with more than 100,000 people signed up for the service. Loop facilitates shopping for products featuring durable, reusable packaging, attempting to do away with single-use formats while also simplifying the recycling of durable packaging. Participating companies include Unilever, Melanin Essentials and Soapply. U.S. consumers can currently order more than 100 products from more than 30 brands in beauty and other categories. The assortment will double by the end of 2020, per Loop. In 2021, Loop will expand from online-only to brick-and-mortar retail partnerships, including some Kroger stores. Next year, Loop is also expanding to Canada, Australia and Japan. “Consumers across the country have urged us to bring Loop to them so we’ve scaled as quickly as possible to make that happen,” said Tom Szaky, founder and CEO of Loop and TerraCycle. "With consumers shopping more and more online this year, the need for our sustainable, waste-free solution has become even more important."

Executives from The Clorox Co., Nestlé and entrepreneur Soapply share insights into the sustainability and cleanliness of reusable packages for products sold through Loop’s shopping platform, especially in a post-pandemic world. Last year, recycling/upcycling firm TerraCycle launched Loop, a shopping platform for zero-waste-packaging products, with the support of some of the world’s biggest brands (see “Loop and big brands boldly reinvent waste-free packaging.”) Together, the eco-commerce provider and the brands have learned that there is indeed a market of consumers who will by Crest mouthwash, Tide laundry detergent, and myriad other products from Loop’s online store — then return their empty packages to be cleaned, refilled, and reused. Since its early 2019 introduction, Loop’s business has grown from a direct-to-your-doorstep model with regional service to testing of mass-market retail partnerships to imminent national coverage. Retail partners include Kroger and Walgreens in the US market, Canada’s Loblaws, and the U.K.-based Tesco chain. Germany and Japan are on the horizon, too.

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. 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.  

Sustainability efforts for beauty companies may cost more in the short term, but often pay out over time. Beauty brands that want to be part of TerraCycle’s Loop program must develop durable packaging that can be reused at least 10 times. It costs more for businesses upfront, but has the potential to help brands reduce their packaging costs over the long term. It’s one example of the return on investment for sustainability — Ren, Pantene, Melanin Essentials, Love, Beauty and Planet, Soapply, Plaine and The Body Shop are among the brands working with and selling through the Loop operation. “Manufacturers are hitting parity on price and sustainability anywhere from two to three uses sometimes,” said Benjamin Weir, Loop’s director of business development and sales innovation. “We’re pushing the system to be as durable and as reusable as possible.” For Procter & Gamble, which has invested in Loop, the cost of making Loop-approved packaging is actually more expensive — but the business views it as an investment in learning. “While ROI is definitely something we are getting in certain pockets of our business, it is not the sole criteria for learning in this space, particularly with some of the pilots we are running,” said Anitra Marsh, associate director of global sustainability and brand communications at P&G Beauty. Marsh was referencing Loop, as well as Olay Whips refills, which launched in the fall. “We have to learn before we can bring things to scale.” Another P&G pilot launches Monday: The business is testing paper board tube packaging for deodorant, available exclusively at Walmart. “If you’re looking at return on investment, sustainability initiatives are the long game. There are no short wins with sustainability,” said Sarah Jindal, Mintel’s senior innovation and insights analyst for beauty and personal care. She called Loop’s efforts “a great example of that initial upfront investment that pays in bucketloads,” and said renewable energy is another key example. “At some point, once you’ve made that initial investment, you no longer have an electric bill that you’re paying to someone else,” she said. P&G, for example, has saved more than half-a-billion dollars after years of energy conservation programs across the company, said Kelly Vanasse, chief communications officer for P&G beauty and grooming. “That’s one example — the work we’re doing on zero waste to landfill, it’s the same thing.…The more we continue to realize those successes, it just creates a virtuous circle.” Jindal stressed that the timing of returns from sustainability initiatives can vary. “Returns will come in many different forms at many different levels at many different time points,” Jindal said. Unilever, for example, has started to see increasing sales momentum from “sustainable living brands.” Sustainable living brands grew 69 percent faster than the rest of the business in 2018, compared with 46 percent faster in 2017, the company said. Biossance, the skin-care line born out of biotech operation Amyris, has worked to build up its own virtuous circle — a sustainable supply chain in order to offer Amyris-produced squalane to the broader beauty market at “desirable price points,” said president Catherine Gore. “The promised land is really connecting sustainable ingredients, sustainable thinking, sustainable manufacturing and sustainable packaging with the cost effective-nature of that. We’ll really hit our sweet spot when all of the brands can afford to make these types of changes.” Biossance’s key sustainability initiatives revolve around sustainable sugarcane in Brazil. The company makes its own squalane with that sugarcane, versus harvesting from sharks. Sugarcane stalks are used for boxes, and gas off-put is used to power the plant. “All of that has been optimized so we can offer squalane by the ton to consumers and brands worldwide at a much more desirable price point than [killing sharks],” Gore said. “The whole idea is to keep the mission first, and in order for that to be accessible, it has to be at the right price point.” There’s also a softer side to the ROI equation. As sustainability permeates consumer consciousness, companies and brands that have taken steps in earth-friendly directions expect to see dividends coming in the form of consumer loyalty. “The concept of brand loyalty…has kind of flown out the window, but this view on sustainability — because it is becoming so important to the consumer, and it is so visible to the consumer — that becomes one of those really important parts of, ‘do I want to buy from this brand, or do I want to buy from that brand?” said Jindal. “That loyal relationship becomes really important in the fragmented world we’re living in where you’ve got new brands popping up almost every single day,” Jindal said. Right now, consumers are at the stage where they notice obvious things, Jindal said, like packaging. But as beauty companies delve deeper into sustainability and talk openly about their initiatives, consumer expectations are likely to evolve. “The more prevalent that information becomes, it becomes that much more important to a wider range of consumers,” Jindal said. “They’ll look at [company practices] and say, ‘you know what, I don’t agree with the practices of that company, so I won’t buy from them anymore.’ It’s as simple as that, to flip that switch, because there are so many brands out there they can choose from.” For Biossance, sustainability is a key part of customer retention. “There’s a large community that’s very close to our shark-saving initiative,” Gore said. The company estimates that by producing squalane, it saves two million sharks per year. That, combined with Environmental Working Group certification and other commitments, like zero waste by 2025, compostable boxes and going carbon neutral in 2020, keep customers coming back. “As we share those stories, it holistically brings a very dedicated community together that believes in the sustainability, wants to put their purchase power toward that, and trusts in the brand,” Gore said. P&G also sees customers caring more about sustainability. “When we have products consumers love, they’re like, ‘OK, I love your product — now help me love your product even more. What are you doing from a sustainability perspective?’ Everyone wants to do the right thing…today, doing the right thing is being more sustainable,” Vanasse said.

"There are no short wins with sustainability."

Sustainability efforts for beauty companies may cost more in the short term, but often pay out over time. Beauty brands that want to be part of TerraCycle’s Loop program must develop durable packaging that can be reused at least 10 times. It costs more for businesses upfront, but has the potential to help brands reduce their packaging costs over the long term. It’s one example of the return on investment for sustainability — Ren, Pantene, Melanin Essentials, Love, Beauty and Planet, Soapply, Plaine and The Body Shop are among the brands working with and selling through the Loop operation. “Manufacturers are hitting parity on price and sustainability anywhere from two to three uses sometimes,” said Benjamin Weir, Loop’s director of business development and sales innovation. “We’re pushing the system to be as durable and as reusable as possible.” For Procter & Gamble, which has invested in Loop, the cost of making Loop-approved packaging is actually more expensive — but the business views it as an investment in learning. “While ROI is definitely something we are getting in certain pockets of our business, it is not the sole criteria for learning in this space, particularly with some of the pilots we are running,” said Anitra Marsh, associate director of global sustainability and brand communications at P&G Beauty. Marsh was referencing Loop, as well as Olay Whips refills, which launched in the fall. “We have to learn before we can bring things to scale.” Another P&G pilot launches Monday: The business is testing paper board tube packaging for deodorant, available exclusively at Walmart. “If you’re looking at return on investment, sustainability initiatives are the long game. There are no short wins with sustainability,” said Sarah Jindal, Mintel’s senior innovation and insights analyst for beauty and personal care. She called Loop’s efforts “a great example of that initial upfront investment that pays in bucketloads,” and said renewable energy is another key example. “At some point, once you’ve made that initial investment, you no longer have an electric bill that you’re paying to someone else,” she said. P&G, for example, has saved more than half-a-billion dollars after years of energy conservation programs across the company, said Kelly Vanasse, chief communications officer for P&G beauty and grooming. “That’s one example — the work we’re doing on zero waste to landfill, it’s the same thing.…The more we continue to realize those successes, it just creates a virtuous circle.” Jindal stressed that the timing of returns from sustainability initiatives can vary. “Returns will come in many different forms at many different levels at many different time points,” Jindal said. Unilever, for example, has started to see increasing sales momentum from “sustainable living brands.” Sustainable living brands grew 69 percent faster than the rest of the business in 2018, compared with 46 percent faster in 2017, the company said. Biossance, the skin-care line born out of biotech operation Amyris, has worked to build up its own virtuous circle — a sustainable supply chain in order to offer Amyris-produced squalane to the broader beauty market at “desirable price points,” said president Catherine Gore. “The promised land is really connecting sustainable ingredients, sustainable thinking, sustainable manufacturing and sustainable packaging with the cost effective-nature of that. We’ll really hit our sweet spot when all of the brands can afford to make these types of changes.” Biossance’s key sustainability initiatives revolve around sustainable sugarcane in Brazil. The company makes its own squalane with that sugarcane, versus harvesting from sharks. Sugarcane stalks are used for boxes, and gas off-put is used to power the plant. “All of that has been optimized so we can offer squalane by the ton to consumers and brands worldwide at a much more desirable price point than [killing sharks],” Gore said. “The whole idea is to keep the mission first, and in order for that to be accessible, it has to be at the right price point.” There’s also a softer side to the ROI equation. As sustainability permeates consumer consciousness, companies and brands that have taken steps in earth-friendly directions expect to see dividends coming in the form of consumer loyalty. “The concept of brand loyalty…has kind of flown out the window, but this view on sustainability — because it is becoming so important to the consumer, and it is so visible to the consumer — that becomes one of those really important parts of, ‘do I want to buy from this brand, or do I want to buy from that brand?” said Jindal. “That loyal relationship becomes really important in the fragmented world we’re living in where you’ve got new brands popping up almost every single day,” Jindal said. Right now, consumers are at the stage where they notice obvious things, Jindal said, like packaging. But as beauty companies delve deeper into sustainability and talk openly about their initiatives, consumer expectations are likely to evolve. “The more prevalent that information becomes, it becomes that much more important to a wider range of consumers,” Jindal said. “They’ll look at [company practices] and say, ‘you know what, I don’t agree with the practices of that company, so I won’t buy from them anymore.’ It’s as simple as that, to flip that switch, because there are so many brands out there they can choose from.” For Biossance, sustainability is a key part of customer retention. “There’s a large community that’s very close to our shark-saving initiative,” Gore said. The company estimates that by producing squalane, it saves two million sharks per year. That, combined with Environmental Working Group certification and other commitments, like zero waste by 2025, compostable boxes and going carbon neutral in 2020, keep customers coming back. “As we share those stories, it holistically brings a very dedicated community together that believes in the sustainability, wants to put their purchase power toward that, and trusts in the brand,” Gore said. P&G also sees customers caring more about sustainability. “When we have products consumers love, they’re like, ‘OK, I love your product — now help me love your product even more. What are you doing from a sustainability perspective?’ Everyone wants to do the right thing…today, doing the right thing is being more sustainable,” Vanasse said.

There’s never been a better time for beauty brands trying to save the planet. Retail interest is growing in sustainable packaging and eco-conscious ingredient sourcing, and brands that appear to be ignoring their environmental footprints are met with swift disapproval. But the movement to green goods hasn’t yet translated into many consumers going out of their ways to make purchases prioritizing the fight against climate change.

Loop, a retail platform with a closed-loop (get it?) distribution system, is a high-profile test of people’s willingness to factor sustainability into their shopping habits. It’s the brainchild of Tom Szaky, co-founder and CEO of recycling company TerraCycle, whose dream of zero-waste consumption caused him to look into the past to inform the future. Szaky compares Loop to mid-20th century milkmen regularly dropping off glass milk bottles and picking up finished ones. Its distribution system is based on refillable packaging and doorstep delivery. Can Loop alter practices in a consumer packaged goods space in which disposability has been paramount? Heather Crawford, VP of marketing and e-commerce for Loop Global, argues its convenience is transformative. “This platform is actually designed for consumers to be able to easily adhere to,” she says. “Loop takes into consideration the fact that changing behavior is difficult. So, in the Loop model, people simply put their empties in the tote and send it back. It is no different for a consumer than putting empties in a recyclable bin or garbage can.” About a third of waste generated in this country is recycled, and I’m judicious about doing my part to keep the virtuous cycle going. Loop’s promise to further cut down on the waste stream I generate is incredibly appealing. As a realist, however, I know there’s only so much I will sacrifice to protect the environment. With its shippable totes and simple e-commerce interface, Loop seemed like a sustainability endeavor I could get behind and, distinct from in-store refillable programs, perhaps stick with. So, I decided to trial the service to see just how practical it is for the average consumer. Loop’s pilot program launched last spring in Paris and New York City. At the time, it was limited to 5,000 households in each city. Since then, Crawford points out, it’s added six new states of coverage as well as struck retail partnerships with Walgreens and Kroger. Currently, Loop is offered through the retailers’ websites, but its goal is to establish a presence in their stores this year. I’m located in New York City, and opted to try Loop’s online store, and stick to beauty and personal care orders. Loop’s assortment contains 31 beauty and personal care products from nine brands: Pantene, Ren, Soapply, Love Beauty and Planet, The Body Shop, Gillette, Venus, Crest and Puretto, an in-house line. Some brands and categories such as bath and body have more robust selections than others. A lonely mouthwash constitutes the entire oral care category. The majority of products carried by Loop are in the grocery and household categories, but Crawford says beauty is a key growth category, and the number of brands within it are excepted to rise this year. She declined to name brands that are coming to Loop. Loop customers order products packaged in refillable containers on its website, and the products arrive at their doorsteps in eco-friendly totes. After consumers are finished with them, Loop picks up the empty products and cleans the packaging to be used again. While browsing the grocery category, I noticed several items were out of stock. Beauty didn’t have that problem. The items were ready for purchase, and I bought two. Specifically, I purchased a 300-ml. bottle of Ren’s Atlantic Kelp and Magnesium Anti-Fatigue Body Wash, and an 8-oz. bottle of Soapply’s Liquid Hand Wash. Loop’s customers pay deposit fees. The deposit fees I paid ranged from $1.25 for Soapply’s Liquid Hand Wash to $5 for Ren products. On top of the deposit fees, there’s a $15 fee for the tote that products are delivered in. The deposits are 100% refundable once products are returned to Loop. Still, for me, the fees tacked on $21 to a $48 order. The price for my order of hand soap and body wash totaled $88.56, with tax. Thankfully, Loop comped the amount for the purposes of this piece because sustainability sure doesn’t come cheap. Product pricing on Loop can vary from product pricing elsewhere. Soapply’s Liquid Hand Wash cost $22.50 on the brand’s website. On Loop, without the bottle deposit, it was $23.75. Surprisingly, Ren’s Atlantic Kelp and Magnesium Anti-Fatigue Body Wash was significantly less expensive on Loop. It rang in at $24.30 versus $28 on its own site. After I placed my order, it was delivered via UPS the following evening. My two small beauty products arrived in a large tote. Apparently, there are no small totes at the moment. The delivery is fully eco-friendly, from the materials the tote is made of to the packing materials keeping the products safe and secure. I live and work in a very small one-bedroom Brooklyn apartment with minimal closet space (read: none). Holding on to the bulky tote while I enjoyed my products wasn’t practical or appealing to me. To declutter, I promptly decanted the bottles into empties I already had, and returned them along with the tote to my local UPS store to be shipped back with the included free shipping label. Loop allowed me to retain the deposit amounts in my online account for future orders or have them refunded to my card. I chose the refund, and the money was credited back to me in seven days.

“Loop takes into consideration the fact that changing behavior is difficult.”

TWEET THIS

Loop’s process wasn’t onerous, and lived up to the promise of not forcing me to change my conduct in a manner that would stop me from shopping at it. The company plans to reduce consumers’ efforts even more by teaming up with retail partners to set up Loop at stores to enable consumers to shop dedicated Loop aisles and return refillable products to the stores they’re frequenting. Loop didn’t specify when it will arrive inside stores or which physical stores will take part in its program. Despite people meticulously separating out waste materials into recycling bins, 91% of plastics wind up in landfills. That statistic emphasizes to me the importance of Loop’s system, and makes the endeavor a definite plus in my estimation. I’m heartened knowing the Soapply and Ren bottles I received aren’t destined for the ocean. The benefit for the planet is evident, but I wondered what the brands, specifically Soapply, the sole indie beauty brand currently on Loop’s site, gain by joining its selection. Asked about Soapply’s involvement, founder Mera McGrew responds, “Being selected to launch with Loop alongside all the major players in the consumer goods space was an exciting recognition of the leadership role Soapply is playing in the market. The immediate success we had on the platform, the continued growth we’ve seen, and the positive consumer response to Soapply have not only helped our bottom line, but continued to solidify our role as an emerging leader within the consumer goods space.” Prior to Loop, Soapply had a refill system with bottles made from recycled glass that replenish its 8-oz. bottles three times at a discounted price of $31.50 for 25.4 ounces. For the brand, the value of Loop is to amplify education and impact. “Startups and indie brands have resource limitations that require a constant reassessment of costs and a clear understanding of potential benefits connected with any decision or investment,” says McGrew. “Soapply is a public benefit corporation, so working collaboratively with Loop gives Soapply an opportunity to reiterate some of our core values and be a part of a larger system that is looking to empower individual consumers to help tackle the world’s waste problem.” Soapply is the only indie personal care brand available in Loop’s selection. Other brands are Pantene, Ren, Love Beauty and Planet, The Body Shop, Gillette, Venus, Crest and Puretto, an in-house line. Brands can’t partake in Loop unless they have sustainable packaging. Loop’s requirements are exacting. All containers have to withstand sanitization and survive over 100 uses. “Any business, regardless of how big or small, knows that any changes to packaging can represent a lot of dollar signs—sourcing, designing, changing production lines, etc.,” says McGrew. “If a product’s packaging isn’t already reusable and refillable, updating packaging for Loop would certainly represent a cost to any brand.” Crawford says, “We want to partner with companies large and small that want to redesign packaging to be durable and reusable. We have indie beauty brands which are in the process of on-boarding, and we’ve had very strong response to those we’ve launched thus far, with initial penetration rates [or percentages of the target market they’ve reached] of 35%-plus on new beauty product launches.” My experience with Loop demonstrates it makes eco-oriented beauty and personal care consumption pretty painless, but not universally affordable. A huge feat will be a program that’s attainable for low- to middle-income families. As Loop expands and scales, it will be fascinating to watch how it overcomes that large hurdle. In its current iteration, though, it’s undoubtedly a step in the right direction.