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Bringing Reusable Packaging Systems to Life Lessons Learned from Testing Reusable Cups Table of Contents

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Bringing Reusable Packaging Systems to Life Lessons Learned from Testing Reusable Cups Table of Contents Bringing Reusable Packaging Systems to Life Lessons Learned from Testing Reusable Cups Table of Contents Introduction SECTION 1 SECTION 4 Setting the Scene Experimentation in Action — Lessons Learned — Reuse Model Insights Piloting Innovative Reusable Top Insights for Reuse How It Works Cup Systems Models SECTION 2 SECTION 5 The Journey of a Reusable What’s Next? — Building the Cup — A Multi-Stage Journey Future for Reuse Models Customer Awareness Sign-up Point-of-Sale SECTION 6 Drink Preparation Point-of-Handoff Appendix Point-of-Return Terms to Know Washing & Sanitizing Citations Pick-up & Delivery Acknowledgements B L E Inventory A T O F SECTION 3 Bringing Reusable Packaging C Systems to Life – Critical O Inputs & Considerations for N Scale S T T Engage Diverse Stakeholders E N Make Sustainable Material Choices Select the Perfect Spot Choose the Right Payment Model Optimize Health & Safety Protocols Measure Impact and Success Bringing Reusable Packaging Systems to Life 2 Dear Reader, If you visualize the current journey of most products and packaging in our economy, including the single-use cup, it looks like a straight line that starts with extracting finite raw materials and ends at the landfill. fter decades of relying on this food, are accelerating the growth of reuse The key to success for reuse models is seemingly convenient linear models. Over the last few years, we’ve seen continually testing, honing and refining them. Asystem, its long hidden costs in innovative companies explore and harness And assessing the environmental impact of terms of economic and environmental groundbreaking reusable packaging and reusable packaging is paramount during this consequences have become clear, bringing refill models, such as Algramo piloting phase of experimentation — we must ensure we us to a tipping point that necessitates a their “smart dispensing” reuse model with don’t introduce new unintended consequences better way forward — one that considers companies like Nestlé and Unilever, among when replacing one system with another. these materials as resources, not waste. others; or Loop expanding their reusable In this report, we share lessons learned to packaging model to the U.K., France and inform the growth of refillable and reusable A circular journey for materials rethinks the the U.S. with numerous large brands. packaging across formats and markets. flow of our systems — building in efficiencies We are excited to continue building on the that recognize and capture the long-term value Closed Loop Partners launched the NextGen momentum of NextGen’s reusable cup pilots, of resources. The circular economy relies on Consortium in 2018 in partnership with exploring new and diverse solutions that show a number of strategies, some traditional and Founding Partners Starbucks and McDonald’s, that a future where reusable models replace some innovative, that extend the lifespan of among other leading food and beverage single-use is both possible and probable. products and eliminate waste through reusing, companies, to address the world’s single- reducing, recycling, renting, remanufacturing use food packaging waste by advancing the and redesigning products and materials. design, commercialization and recovery of This shift in thinking and operating impacts packaging alternatives. As part of this, the every part of the value chain and creates a NextGen Consortium recently piloted several framework for global corporations, startups, new reuse models designed to reimagine the governments, cities and communities to to-go fiber cup, testing for efficiency, customer build economies that reduce costs, increase and operational alignment and scalability. Kate Daly, Managing Director, efficiency and protect the environment. This report shares what we learned from these Center for the Circular Economy pilots — assessing the impact we can have to Closed Loop Partners Reuse models play an important role in solve the challenges of the single-use cup, while this shift. Pressures from consumers and also recognizing the promise reuse models hold regulators, reacting to the consequences of for all types of food packaging beyond the cup. plastic waste in our waterways and even our Bringing Reusable Packaging Systems to Life 3 The NextGen Consortium is a global consortium that aims to address the world’s single-use food packaging waste by advancing the MANAGING PARTNER FOUNDING PARTNERS INNOVATION PARTNER design, commercialization and recovery of packaging alternatives. The Consortium works across the value chain – with brands, municipalities, material recovery facilities and manufacturers – to ensure we provide viable market solutions that scale throughout the supply chain and bring value to recovery systems globally. ADVISORY PARTNER SUPPORTING PARTNERS The NextGen Cup initiative is the first by the NextGen Consortium, and aims to advance recoverable solutions for the fiber, hot and cold, to-go cup. We believe this is a critical step to unlock wider innovations and overcome the global infrastructural challenges of single-use packaging. From new materials and recovery strategies for the single-use cup, to reusable cup systems that seek to keep items in use for as long as possible – the NextGen Innovate Test Scale Consortium has built a multi-faceted, portfolio-based approach to innovation that sets the foundation Source, identify Accelerate performance, Link innovation to the for combating this global waste phenomenon. and nurture leading environmental & recovery global supply chain circular solutions testing and pilot solutions of our partners The NextGen Consortium is managed by Closed Loop Partners’ Center for the Circular Economy. Starbucks and McDonald’s are the Founding Partners of the Consortium. The Coca-Cola Company, Yum! Brands, Nestlé, Jacobs Douwe The NextGen framework of Innovate-Test-Scale advances the Egberts and Wendy’s are Supporting Partners. development of new cup solutions and recovery methods through The World Wildlife Fund (WWF) is the Advisory iterative loops of innovation and testing, enabling us to efficiently and Partner and IDEO is the Innovation Partner. effectively learn and refine as a Consortium before scaling solutions. Bringing Reusable Packaging Systems to Life 4 Introduction Setting the Scene INTRODUCTION Today, most of the single-use cups we get from our favorite coffee spot or drive-through end up in a landfill. It is estimated that nearly 250 billion of these single-use cups are distributed globally each year.1 nfortunately, the design feature that makes and lays the pathway toward a circular future. Through the efforts of the NextGen Consortium, we these cups reliable and easy for us to use are testing, funding and scaling these systems. “We are on the cusp of a reuse revolution and Uis also the problem. Most fiber cups, often known as paper cups, have a plastic liner to expect to see more big innovations related The report guides you through the learnings gathered prevent leaks. This plastic liner also makes the cup to other applications, such as shopping bags thus far during this multi-year program, exploring the more difficult to recycle as the fiber and plastic and food packaging. Reuse will be a growing different facets of reuse models – and the systems components that comprise the cup aren’t easily part of the plastic solution portfolio used by within those models that produce, distribute, separated in the recycling process, discouraging brands and retailers. It’s certainly not going to monitor, collect and sanitize cups to enable their N I recyclers from recovering the materials. Ultimately, solve the whole plastic waste challenge, but as use hundreds of times, by as many consumers, O N this means that a high percentage of these across a range of differing environments. By sharing I T more of these models come to market, we are T R cups end up in landfills each year, contributing the learnings in this report, we hope to provide excited to see new solutions that collectively C O to inefficient resource and material usage, you with guideposts, best practices, materials to 2 build reuse back into our cultural and U D greenhouse gas emissions and wasted energy. consider and actions to take when thinking about D behavioral norms.” U partnering with or creating your own reuse system O One way to address this issue is by leveraging C to advance the transition to the circular economy. — Bridget Croke, Managing Director, R reusable packaging options, which are more T Closed Loop Partners T durable and can be used multiple times. Reusable I N O packaging systems are good for the planet – In this report, we use reusable packaging as the I N moving us away from a take-make-waste model of starting point for exploring reuse models more material usage toward a circular economy in which broadly, and specifically, we explore tech-enabled goods and materials are reused and repurposed. reusable cup systems that could revolutionize the They are also good for business – converting way we drink our morning cup of coffee or iced 20% of global disposable plastic packaging into drink on-the-go. These reusable cup systems reusable packaging is a $10 billion opportunity.3 leverage the ubiquity of smartphones and work billion with businesses to design compatible hardware Reuse models will impact multiple sectors and and collection systems for cup management, industries. For example, reselling clothing or inventory and re-circulation. While not all utilize opportunity renting tools and equipment are all part of a technology, the key to any reusable cup system in converting to broader reuse ecosystem that extends the use is to ensure that both users and restaurants reusable packaging and lifespan of valuable materials in our economy and/or cafes have a seamless experience. Bringing Reusable Packaging Systems to Life 6 INTRODUCTION Reuse Model Insights The overall impact of reuse models depends on our willingness to collaborate across all aspects of the system — forging innovative new partnerships, advancing sustainability initiatives and developing new products and ways of collectively operating.
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