Moving Beyond Plastic: National Co+op Grocers Program at Expo West Explores Packaging Alternatives

This article originally appeared in Presence Marketing’s April 2022 Industry Newsletter

 By Steven Hoffman

What are the pain points, and where have manufacturers, distributors and retailers made progress in finding sustainable alternatives to a world awash in non-biodegradable plastic packaging waste? That was the topic of conversation at a recent panel held on March 10, 2022, at Natural Products Expo West in Anaheim CA, co-hosted by National Co+op Grocers (NCG) and Presence Marketing.

The natural products channel, like most, has embraced plastic over the years for its obvious benefits: it’s durable, lightweight, versatile, cost effective and helps lengthen shelf life and ensure food safety, among other attributes.

However, much plastic packaging is designed for single use, and as such, according to data collected by the Environmental Protection Agency (EPA), 69% of plastic packaging ends up in landfills or the ocean. The rate of recycling of PET bottles and jars was 29% in 2018. Same for HDPE containers – only 29.3% of these containers were recycled. In the U.S., plastic products generation increased by 4.3 million tons from 2010-2018, due in large part to an increase in plastic packaging production. After food, plastics are the second-most-common type of materials to be sent to a landfill, according to the EPA. The issue is of such concern that National Geographic  warned that the amount of plastic trash in our oceans is expected to nearly triple to 29 million metric tons by 2040, unless society takes drastic action.

In striving to take the lead and set a positive example, NCG identified a number of advocacy initiatives for the organization and its members, including promoting waste reduction and alternative packaging at the manufacturer and distributor level. In particular, NCG works with industry partners to research and provide the most environmentally friendly options possible in NCG programs and services, including tangible items such as branded packaging, to help reduce plastic packaging in the waste stream, according to the co-op organization’s website.

In this panel, hosted by Heidi Traore, Supplier Relationship Development Manager for NCG, and Milton Zimmerman, EVP of Presence Marketing, and moderated by Steven Hoffman of brand marketing and PR agency Compass Natural, the following industry leaders offered their insights, and highlights of their responses are below.

• Alyssa Harding, Packaging Collaborative Director, One Step Closer, and Senior Consultant, Anthesis Group

• Blair Kellison, CEO, Traditional Medicinals

• Ricardo Perdigao, CFO/COO, Sambazon

• Dave Pirazzini, Director of R&D, REBBL

Q: Where do you believe the pain points are for most brands in terms of their packaging?

- Alyssa Harding: “Companies are successfully reducing the amounts used for their product packaging, but rather than reinvesting the saved money on further R&D, many are keeping the money as profit. It is important for longer term profitability and sustainability to take your saved money and reinvest it back into research to find sustainable packaging solutions.”

- Blair Kellison: Everything in life is possible, and we need to focus our resources on sustainable packaging. However, to the extent that ultimately economics is going to be a factor in driving this movement.” 

- Ricardo Perdigao: “Reducing waste and solving the current issues in product packaging cannot be corrected with just one solution, but the combination of many solutions across the supply chain. Changing the established manufacturing system and concept is one of the biggest challenges. As business leaders, you believe in something and you go after it. Our beliefs lead us to sustainable packaging.”

- Dave Pirazzini: “Manufacturing lines are full, so it can be difficult to find manufacturers to take the time and work with you on a perfect sustainable solution. Additionally, companies have confusion on the best materials, what is most recyclable, etc. For example, Tetra packaging is a solution, but only 55% of facilities in the U.S. can recycle it.”

Q: How is your company researching and making packaging materials reductions?

- Alyssa Harding: “There are opportunities to use less materials and remove unnecessary parts of your packaging while still being effective and appealing to consumers.”

- Blair Kellison: “Traditional Medicinals has been working on a sustainable packaging overwrap for the past six years. This is still in progress. Once completed, the company will begin using compostable overwrap.”

- Dave Pirazzini: “Control what you can. REBBL reduced the amount of corrugate in its packaging with no negative effects to its product packaging or presentation.”

- Ricardo Perdigao: “If we can make things from plants, and turn them back into plants, that is a promising solution we are exploring.”

Q: What has been a success in your packaging journey?

- Alyssa Harding: “The opportunity through One Step Closer to offer sustainable packaging expertise and counsel tailored to a number of mission-based natural products companies.”

- Blair Kellison: “Recycling aside, let’s just not produce waste to begin with. Last year in 2021, Traditional Medicinals got zero waste certified.”

- Ricardo Perdigao: “First, set an objective, track progress, and work toward that objective. In its bowl products, Sambazon successfully converted its packaging to paper and plant fiber. The company is ahead of schedule on achieving ‘zero waste’, and 70% of its products are recyclable.”

- Dave Pirazzini: “REBBL changed its practice to shipping flattened empty bottles to our manufacturing plant, therefore reducing having to ship amounts of the larger, empty blown bottles. We started blowing the bottles on our own manufacturing lines; blowing bottles is when the plastic bottle shape is formed to be ready to fill.”

Q: What can retailers do to help?

- Alyssa Harding: “Cut out waste in the deli and bulk section, and reduce/eliminate single-sized plastics available in the store. Run an analysis of your store and locate your largest materials of consumption and begin your project right there. Start with your own footprint, and then move to helping the brands that are carried in your retail store.”

Blair Kellison: “If we have lost the business of our co-ops, we have lost our business model. We must work together to make progress on such a significant issue.” – Blair Kellison

- Ricardo Perdigao: “Consult with your business partners, express your objectives, and work together to succeed with sustainable packaging for your brand.”

- Dave Pirazzini: “If we are all truly mission driven and strive for sustainable packaging to better the industry, we should share our successes and help each other to succeed in this movement.”

Q: Closing comments

- Alyssa Harding: “Your company can be philanthropic, while also being profitable.”

- Blair Kellison: “We don’t just talk the talk; we want to walk the sustainable walk. To be a truly responsible business, we manage and measure our environmental impact and strive to minimize our footprint. The old adage ‘You can’t manage what you don’t measure’ is really true in our experience.”

- Ricardo Perdigao: “The most powerful marketing is your people. Hire a staff with similar values. Have your whole company telling people about the importance of sustainable packaging. Word of mouth is important.

- Dave Pirazzini: “As manufacturers, retailers and industry members, this is an important conversation in which we all must engage. I feel like I got as much out of this panel as the audience. It was great for me to learn about what other companies are doing with their sustainability initiatives.”

Resources: Learn more

• One Step Closer to Zero Waste:  https://osc2.org/zerowaste/

• National Co+op Grocers Advocacy Initiatives: https://www.ncg.coop/advocacy-activities-national-coop-grocers

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Single-use Plastic Waste a Major Concern for Majority of Consumers

Photo: Hartman Group

This article originally appeared in Presence Marketing’s January 2022 Industry Newsletter

By Steve Hoffman

According to the Hartman Group’s new report, Sustainability 2021: Environment and Society in Focus, more than four out of five consumers say that they are very concerned about the amount of single-use plastic that we are using as a society. Survey respondents also expressed concern about single-use plastic’s implications not only for the environment but also for human health. Plastic and other packaging waste are among the most visible aspects of sustainability to consumers because they must actively participate in the process of disposing these items and determining what can be recycled, reported the Hartman Group. The market research firm added that consumers feel it is up to companies to offer better solutions that allow them to rely less on plastic while maintaining the convenience they have come to expect.

Packaging in 2020: Will CPG Companies Take the Lead on Plastic?

Originally Appeared in Presence Marketing News and New Hope Network’s Idea Xchange, January 2020
By Steven Hoffman

Presenting the theme, “Plastic Free by 2033,” Presence Marketing, in partnership with National Co+op Crocers (NCG), will host a panel on sustainable packaging solutions for natural products businesses at Natural Products Expo West in Anaheim, CA.

With its processing facilities and environment overwhelmed by handling nearly half the world’s waste for the past quarter century, China isn’t taking the U.S.’ recyclable waste anymore. And as costs skyrocket, many cities and municipalities across America have stopped plastic and paper recycling programs. As we enter the “post-recycling age,” according to retail innovation expert Piers Fawkes, consumers and businesses are becoming acutely aware that much of the amount of product packaging we generate ends up as waste that is choking landfills and the oceans. 

Those of us in the natural products market may be more aware of these issues than much of the population, but as owners and operators of consumer products companies, we also are responsible for much of the single-use plastic packaging making its way into the environment. 

Certainly, sustainable packaging is an issue that goes beyond natural products companies. As we enter a new decade, any industry using product packaging that is not recyclable, reusable, compostable or elsewise environmentally friendly is facing growing consumer backlash and the higher cost of creating and disposing of waste in what is being termed the circular economy.

Not all is gloom and doom, however. Innovation in sustainable consumer products packaging is happening, and a number of natural and organic products leaders, as well as some larger food and beverage and CPG corporations, are setting the pace. The good news is many businesses are taking action, from the emergence of dedicated bulk retail stores to TerraCycle’s Project Loop and Nestlé’s Institute of Packaging Sciences. Other manufacturers are investigating how to create sanitary single-serve containers without the waste. Shippers, too, are expanding the use of bio-based pallet wrap, corrugated bubble wrap, mushroom-based packaging, software to reduce waste, and more. And as the garbage piles up, sustainable packaging innovation comes not a moment too soon. 

Here are some highlights from companies that have been in the news recently for taking action to reduce the impact their product packaging has on the environment.

TerraCycle and Loop – Claiming it is boldly re-inventing waste-free packaging, renowned recycling firm TerraCycle unveiled at the 2019 World Economic Forum in Davos a service called Loop, which it says is a new approach to the days when the milkman collected reusable empty bottles and replaced them with refilled ones. Instead of the milkman, however, the local UPS driver delivers products from companies such as Procter & Gamble, Unilever, Nestlé, PepsiCo and others in durable, non-disposable packaging designed for multiple reuse before ultimately being recycled. When the products are consumed, the UPS driver returns to pick up the used packaging and sends it back to Loop where it will be cleaned, refilled and resold once again. Since its launch with a few hundred products in a handful of cities, Loop has engaged more than 10,000 consumers and a number of large household brands, as well as leading natural products companies.

Nature’s Path – Organic food leader Nature’s Path has committed to making all of its packaging reusable, recyclable or compostable by 2025, and was a founding brand partner with Loop, the reusable packaging program that launched earlier this year. The company is exploring fully compostable packaging, including films that will keep its breakfast foods fresh. It also is working toward fully recyclable plastic packaging. “As part of our 2025 packaging commitment, we’re currently testing new packaging options such as reusable (LOOP) and compostable with the OSC2 Sustainable Packaging Collaborative in the U.S.,” said Manuel Gorrin, Sustainability Manager for Nature's Path. The company also increased pallet efficiency by 17% for its Que Pasa Tortilla Chips line, reducing the number of truck loads and carbon emissions by 20 metric tons, the company says.

Pete and Jerry’s Organics – To reduce the need for packaging, nationally known organic egg producer Pete and Jerry’s Organics debuted a reusable egg carton in December 2019 at Hanover Co-op stores in New Hampshire and Vermont. The cartons, which retail for $2.99, are made from recycled BPA-free plastic and are refillable from a display of loose eggs discounted from a standard dozen to allow consumers to compensate for the initial investment in reusable packaging, the company said. "Reusable cartons are a logical next step in our ongoing commitment to sustainability, moving consumer behavior from recycling to reuse. We plan to expand this program in 2020 to reach even more consumers and amplify the program's impact with major retailers clamoring for this type of sustainable innovation," said Pete and Gerry's Organics CEO Jesse Laflamme.

Tom’s of Maine (Colgate-Palmolive) – After more than five years in development, the Colgate-Palmolive Co. announced it has finalized the design of what the company says is a “first-of-its-kind recyclable toothpaste tube.” The tube will debut in the U.S. this year under Colgate’s Tom’s of Maine brand. Roll-out to select international markets under the Colgate brand will follow. The company also says it plans to fully convert to recyclable tubes by 2025, when it says all of its products will be in 100% recyclable packaging.

Patagonia – In calling out the outdoor industry for its plastic problem – from product packaging to the plastic shrink wrap used to ship pallets to trade shows, the company used itself as a role model, and unveiled its own internal waste audit that it says can be used by manufacturers throughout the industry. “We shouldn't forget the pack-in, pack-out mentality we use in the backcountry when we hit the trade show floor,” the company said. "The trade show industry itself is large, complex and wasteful," Patagonia Environmental Analyst Tellez said. "Patagonia and the Plastic Impact Alliance can spearhead a theory of change to ensure meaningful, actionable impacts through collaboration–not just talk.”

Justin’s – Partnering with flexible packaging provider ProAmpac, Justin’s, maker of natural and organic nut butter products and snacks, began using a high-barrier pouch made with 25% post-consumer recycled (PCR) materials. “Finding ways to make our packaging more sustainable has been a long-time goal and continues to be something we’re committed to,” said Justin’s Founder and CEO Justin Gold. “We’re beyond excited to take another step in more sustainable packaging solutions with them.”

Meow Meow Tweet – By its own admission a “teeny company,” Meow Meow Tweet founder Tara Pelletier developed a formula for deodorant she loved, but couldn’t abide by the multiple plastic component parts – most of which are not readily recyclable – in the hard plastic containers used to house most deodorant products. Why, she asked, should a product she’d use for a few weeks or months come in a plastic case that would be around longer than she’d be alive? Searching for an alternative, Pelletier settled on a company that made sturdy paper tubes. While her team needs to hand-fill each tube and margins are “paper thin” because the tubes cost 60 times as much as mass-produced plastic options, it’s worth it, she says, not just because it makes ethical sense but to help demonstrate to others that there are workable, functional, creative alternatives to the plastic that has infiltrated every aspect of modern commerce, National Geographic reported. In related news, learn how other personal care companies are tackling the plastic problem in this New Hope Network report.

Tetra Pak – Shelf-stable packaging leader Tetra Pak announced in December 2019 that it has become “the first company in the food and beverage industry to responsibly source fully traceable plant-based polymers” using sustainably produced sugarcane. “We see plant-based materials as playing a key role in achieving a low-carbon circular economy. In the future all polymers we use will either be made from plant-based materials or from post-consumption recycled food grades,” said Mario Abreu, VP of Sustainability for Tetra Pak.

Giant Eagle - Grocery chain Giant Eagle claims it is the first major grocery retailer to commit to removing single-use plastic from its stores by 2025. “We know it’s a lofty target, and will involve conversations with many partners, but we feel strongly that committing to anything less will only limit our potential success,” said Dan Donovan, Giant Eagle’s Senior Director of Corporate Communications. The company says it will begin moving away from the use of plastic bags, straws, single-serve fresh food containers and bottled beverages. In related news, in 2019, national fast-food restaurant chain KFC said that by 2025 all plastic-based, consumer-facing packaging will be “recoverable or reusable.” KFC said the move is part of a long-term plan to implement a more sustainable packaging strategy in its restaurants.

Carlsberg – International beer brand Carlsberg announced it is in the prototype phase in creating a sustainable, “bio-based,” fully recyclable paper beer bottle it calls the “Green Fibre Bottle.” The prototypes are being made from sustainably sourced wood fibers and either a recycled polymer film barrier or one made from bio-based polymers. The company says it has been working on the idea since 2015.

Procter & Gamble – Through its popular Head & Shoulders shampoo brand, P&G has launched what it says it the world’s first completely recyclable shampoo bottle. Teaming with recycling experts TerraCycle and SUEZ, P&G made the bottle with 25% recycled beach plastic. The company says it aims to make more than half a billion hair care bottles with 25% post-consumer recycled plastic. (That’s still a lot of plastic!)

Unilever – One of the world’s largest consumer products companies, Unilever, announced in October 2019 its commitment to reduce its use of virgin plastic by half, and a promise to help collect and process more plastic packaging than it sells. Cutting down on plastic is “the area that’s going to require the most innovation,” Richard Slater, Unilever’s head of research and development, told MSN News. Unilever currently generates 700,000 metric tons of plastic packaging each year, MSN News reports. (That, too, is a lot of plastic!)

Nestlé – Targeted among a number of CPG giants in a 2019 Greenpeace report as moving too slowly to phase out single-use plastic, Nestlé in 2019 established the Institute of Packaging Sciences to develop its own internal solutions rather than rely on suppliers, it said. The institute will focus on refillable or reusable packaging, simplified packaging materials, recycled packaging materials, high-performance paper and/or bio-based barriers, and compostable and biodegradable materials. Nestlé CEO Mark Schneider said, "Our vision is a world in which none of our packaging ends up in landfill or as litter. To achieve this, we introduce reusable packaging solutions and pioneer environmentally friendly packaging materials. Furthermore, we support the development of local recycling infrastructure and deposit schemes to help shape a waste-free world." According to Nestlé, it was able to develop recycled paper packaging for its Yes snack bars and for Nesquik All Natural cocoa powder in less than a year. “This ambitious timeline shows more progress toward sustainability is possible if sufficient resources and ambition are applied,” said Food Dive.

Amazon – Since introducing its Frustration-Free Packaging (FFP) program designed to reduce waste by providing consumers with easy-to-open packaging that also is 100% recyclable and shippable without the need for an additional box within a box, Amazon has expanded the program to include vendors. It has also taken other measures including using flexible, recyclable mailers for small items and optimizing box fit to avoid waste. However, adoption of the FFP program among vendors has been slow. Though time consuming, the FFP certification process can be worth it for sustainably minded brands selling on Amazon, advises digital marketing strategist Kevin Weiss in New Hope Network’s Idea Xchange.

Further Reading:

Coming Full Circle: Sustainable Retail in a Post-Recycling Age
By Piers Fawkes, founder and CEO of PSFK, Dec. 1, 2019
https://www.psfk.com/2019/12/sustainable-retail-circular-economy.html

10 Dynamo Sustainable Packaging Revelations of 2019
By Lisa McTigue Pierce, Packaging Digest, Dec. 11, 2019
https://www.packagingdigest.com/sustainable-packaging/10-dynamo-sustainable-packaging-revelations-of-2019-2019-12-11

2020 Will Be the Year Major Brands (Finally) Rethink Packaging
By MindBodyGreen, Dec. 8, 2019
https://www.mindbodygreen.com/articles/pepsico-unilever-and-more-make-using-less-plastic-easier

The Top 5 Packaging Trends for 2020
By Nathan Dube, Industrial Packaging, Nov. 14, 2019
https://www.industrialpackaging.com/blog/the-top-5-packaging-trends-for-2020

Pay Attention to These 2020 Packaging Trends
By The Unique Group, Nov. 25, 2019
https://theuniquegroup.com/pay-attention-to-these-2020-packaging-trends/

Packaging Trends in 2020 for Food and Beverages
By Gaurav Jain, Entrepreneur Magazine, Dec. 18, 2019
https://www.entrepreneur.com/article/344012

Why Reusable Food Packaging Has a Promising Future
By Jessi Devenyms, Food Dive, June 25, 2019
https://www.fooddive.com/news/why-reusable-food-packaging-has-a-promising-future/557119/

New Method Upcycles Plastic Waste to Valuable Products
By New Hope Network, Oct. 25, 2019
THE CIRCULAR ECONOMY
https://www.newhope.com/news/new-method-upcycles-plastic-waste-valuable-products-0

Eco-friendly Plastic: Hemp & Reclaimed Ocean Packaging
By A.J. Herrington, The Hemp Magazine, May 8, 2019
https://thehempmag.com/2019/05/eco-friendly-plastic-hemp-reclaimed-ocean-packaging/

Can Unilever Stop Massive Plastic Pollution of Our Oceans?

Originally Appeared in Presence Marketing News, August 2019
By Steven Hoffman

An estimated 1 million ocean animals are killed each year as a result of plastic pollution. Now, one of the world’s biggest plastic polluters – Unilever – has made it a top priority to reduce plastic pollution. According to CNBC, on any given day, 2.5 billion people use Unilever products that comprise 400 household brands, yet the company knows its $158-billion market cap has come as the expense of the environment. According to Unilever, the company invests more than $1 billion annually on research and development, of which new plastics innovation is a component. In 2018, Unilever’s brands most committed to sustainability, including such “sustainable living” brands as Ben and Jerry’s, Seventh Generation and Pukka Herbs, grew 46% faster than the rest of its business and delivered 70% of its turnover growth.

“All of Unilever's brands are on a journey towards reducing their environmental footprint and increasing their positive social impact. Sustainable living brands are those that are furthest ahead on the journey to achieving the company’s ambitious sustainability goals,” Unilever said in a statement. As a result of its initiatives, the consumer giant says it has cut down on plastic use by 15% and is beginning to use bioplastics and refillable metal bottles for bodycare and other items. Since the company signed on in 1017 to an Ellen MacArthur Foundation initiative called The New Plastics Economy, Unilever committ3ed to making all of its plastic packaging either reusable, recyclable or compostable by 2025. Addressing the issue of packaging is a great way to start changing the way plastic is used, Shelie Miller, a University of Michigan professor who studies packaging and sustainability, told CNBC. “Packaging is produced to become waste,” she says. “That makes it unique among manufactured goods.” Natural products manufacturers can find a wealth of sustainable packaging resources at OSC2’s Climate Collaborative: https://www.climatecollaborative.com/packaging_resources, and at New Hope Network: https://www.newhope.com/manufacturing-and-supply-business-resources/what-can-my-brand-do-help-solve-our-plastics-problem.