The latest announcement from Terracycle is the launch of a scheme called Loop—which will allow consumers to buy products in returnable reusable containers. It is a bold initiative, and is to be applauded for its commitment to cutting plastic waste. However, we at Vesta have a few concerns about its operational model and whether it can really be effective in the long run.

Is this just business as usual?

Customers buy online, and receive their product in a durable plastic package. They can leave it outside and it will be taken away once it’s empty. Sure—the scope for reuse is exciting, but there is no fundamental change in the overall model, and we think the scope for reuse might be limited (see below).

An operational minefield

The cleaning, sorting and management of each container is a pretty significant undertaking and will come with a fairly serious cost. At Vesta we looked extensively into the economics of pick up and re-use, and the costs were a real pain point for FMCG. Unless Loop seeks to provide massive infrastructure—akin to another municipal pick up system, it will be hard to reach cost efficiency

More dumb plastic

Plastic is cheap, it lasts for ages and you can make it strong in virtually any shape. That’s why it’s great. It’s not great if it’s used once, and the direction Loop is going in should be supported. However, how many uses do they expect to get from these refillable packages? Leaving them outside, picking up, dropping off, and industrial cleaning all take their toll. When they get damaged, will consumers still use them? There is limited appeal to dented, dirty, and and scratched shampoo bottle sitting on your bathroom shelf. How many will end up thrown away or chucked in the recycling?

Is this convenient enough?

Environmental credentials alone may not make for a sticky service. A lot of very worthy services have fallen into disuse as they offer no more than what’s available, while asking for extra effort on the part of the consumer. This service is heavily reliant on collection, which is always tough on logistics. That can lead to the kind of consumer pain that will quickly lead to churn. For example, if a pick-up is missed, we are effectively looking at rather a lot of litter on doorsteps.

At Vesta we believe that a more radical overhaul of the way products are provided to consumers will be necessary to address the plastic epidemic. Refillable, reusable plastic is unquestionably the right way to go, but without a stronger and lasting incentive—more than consumers’ willingness to lower their environmental impact—we are concerned that initiatives like the one announced today will struggle to gain and hold traction. It would be a tremendous shame if such a well-intentioned and well supported service created a range of even longer lasting plastic waste.

According to a Guardian newspaper investigation, supermarkets are a major source of plastic waste. It is estimated that they produce 1m tonnes of plastic waste every year.

Thus, the news that the Dutch supermarket chain Ekoplaza has opened Europe’s first plastic-free supermarket aisle, has been considered a turning point by campaigners. As Sian Sutherland, co-founder of A Plastic Planet stated: “for decades shoppers have been sold the lie that we can’t live without plastic in food and drink. A plastic-free aisle dispels all that. Finally we can see a future where the public have a choice about whether to buy plastic or plastic-free. Right now we have no choice.”

The store in Amsterdam has over 700 plastic-free products, including meat, rice, sauces, dairy, chocolate, cereals, yogurt, snacks, fresh fruit and vegetables: all available in one aisle. Ekoplaza has confirmed similar aisles will be created in all of its 74 branches by the end of the year.

Campaigners argue that the products will not be anymore expensive than plastic-wrapped goods. Furthermore, alternative biodegradable packing can be used, thus making the change more scalable and convenient.

The move to plastic-free shopping aisles will become more necessary in the UK due to the recent change in government environmental policies. Theresa May, the UK Prime Minister, stated that the UK is committed to eliminating all avoidable plastic waste by 2042; in particular, waste such as the carrier bags, food packaging and disposable plastic straws, would be abolished.

However, to ensure that a plastic-free future can be achieved, it is important for supermarkets, and other retailers, to find cost-effective ways of reducing waste and monitoring sales. Vesta Smart Packaging can help with this: their smart containers know when they’re running low and will re-order the contents automatically (i.e. when the products are required). This will make it cheaper and easier to re-fill the items found on plastic-free shopping aisles.

With the rise of global environmental concerns, the need to reduce our reliance on raw materials has never been higher. But such change will not be easy: it requires us to make pro-active adjustments to our lifestyles and positive improvements to the ways in which products are made, used and, most importantly, re-used.

A recent report commissioned by the WWF and Resource Association (produced by Eunomia Research and Consulting, 20th November 2018,  demonstrates current flaws in the UK’s recycling system and outlines policy measures that could be used to transform it. This timely document provides detailed analyses on the effectiveness of different policy interventions; ideas that could be essential for the implementation of the imminent Resources and Waste Strategy for England.

It identifies a short-list of four types of policy measures to increase demand for recycled materials:
– Materials taxation
– A fee-rebate (or ‘feebate’) system
– Tradable credits
– The establishment of a single Producer Responsibility organisation.

The report considers the ‘feebate’ system to be the ‘most attractive policy option’ due to its “versatility in design, the reduced administrative complexity relative to the tax-based measure, and the stability of the incentive it gives”. It involves placing a levy on all packaging, which can then be refunded to organisations that demonstrate their use of post-consumer recycled materials. Thus, financial incentives would encourage companies to use recycled products and (through a system of certified credits) encourage them to pro-actively explore green solutions to their business needs.

This is where Vesta Smart Packaging could help. Using IoT technology, our smart containers know when they’re running low, and re-order their contents automatically. This not only encourages the consumer to use refillable, durable and smart alternatives, but also reduces waste, thereby creating efficient and sustainable business models that would comply with a ‘feebate’ system, if (or when?) such a policy is implemented.

Change is coming: prepare your business for the future with Vesta Smart Packaging.

In a salutary move, British supermarkets and food companies have launched a new voluntary pledge to cut plastic packaging.

In a first response to the growing awareness and anxiety around the plastic epidemic, most of the UK’s largest supermarkets signed up to support the UK Plastics Pact – an industry-wide initiative which says it aims to transform packaging and reduce avoidable plastic waste.

‘Tesco, Sainsbury’s, Morrisons, Aldi, Lidl and Waitrose are among the 42 businesses so far supporting the new pledge, which includes an aspiration that by 2025 all plastic packaging can be reused, recycled or composted.’

As The Guardian reports, the government has been debating introducing sanctions to a sector which has traditionally born no responsibility for waste disposal, and has been largely unregulated. By signing the pledge, supermarkets get ahead of parliament, and can begin to create their own recycling and re-use paradigms.

Refillable and reusable solutions are the future, and a combination of bio-friendly and intelligent packaging has the potential to create a real alternative to single-use plastics.

In the wake of the UK government’s commitment to work towards plastic-free isles in stores, one of Britain’s supermarket chains has gone one better; it has set itself the target of becoming wholly plastic free within five years.

Citing advances in technology, Iceland’s CEO told The Guardian ‘there really is no excuse any more for excessive packaging that creates needless waste and damages our environment’. The company’s first step was to remove plastic straws from its own brand range of products, and all new food ranges will feature paper-based food trays.

This is a welcome development, especially in the wake of the ‘one million tonnes’ revelation, but it is essential that domestic consumers change their habits too.

In the case of too many products—particularly domestic cleaning agents— single-use plastic containers remain the only purchase option. The onus is then placed on the consumer and the local authority to dispose of these, in a waste paradigm that has led to the current crisis of plastic in our oceans.
To combat this effectively, householders need easy affordable solutions which fit into busy lives.

Vesta Smart Packaging represents a paradigm shift. Using the Internet of Things, Vesta imbeds refillable solutions into homes, offering an integrated delivery system and environmentally sound alternative to one-use plastics.
Vesta knows when cleaning products are running low, and delivers to refillable containers, combining peace of mind, affordability and environmentally sustainability.