Starbucks and Packaging Recycling
Starbucks wants its cups to be 100% recyclable by 2012. That’s a great goal for a company that uses three billion cups annually.
So Starbucks has begun to gathered stakeholders from every step in their supply chain and beyond to discuss the matter. Cup Summit included suppliers, paperboard companies, municipalities, recyclers, waste haulers, manufacturers, and environmental NGOs.
While cross-channel discussions were reportedly a big eye opener, many are skeptical, which is typical of any ambitious undertaking.
Sourcing 100% recycled paperboard is relatively easy. The key issue is related to the recycling the used cups.
Regulations are the first obstacle. Starbucks must be able to get their cups as old corrugated cardboard (OCC) so they can be recycled in the first place. That’s the basic regulatory hurdle.
Then the next obstacle is that the cups must be recyclable at the local level. The communities must first recycle, and not all do. Understand that recycling has always been a numbers game. That is, is there enough of the used material to sell it in bulk to someone who will use the material as a raw material. So even if there is a market for a material, there may not be a market near enough to make the transaction economically viable. In simple terms, low volume of a material and transportation costs (both economic and for sustainablity-minded companies, carbon footprint) may be deal breakers.
Recycling old corrugated cardboard is widespread, so getting the cups to qualify is important. But keep in mind they are contaminated by the contents. For example, you can’t recycle pizza boxes because of the grease and cheese residue. On disposal, Starbucks’ cups held or still hold, coffee, tea, milk, sugar and other toppings which could preclude recycling.
This segues to the real elephant in the room (pardon my mixing of metaphors throughout), Starbucks’ customers. Most cups leave by the front door or the drive through and how do you control them? Influencing guest actions has been a real bugbear for amusement parks and hotels because even if these organizations provide recycling containers, they aren’t often used properly and often the recyclable material is tossed in the trash receptacle anyway.
So it’s very tough for organizations whose guests operate within their boundaries, but like I said, most Starbucks cups leave the premises and end up far from Starbucks’ control.
From where I sit, the initiative deserves credit. It’s ambitious, it’s worthwhile and to succeed it must be a game changer. Like Gazelle, this is one project I’ll be following going forward.
What do you think? Is the project feasible? What would have to change? Let me know!
Backhaul recycling: the gold recycling standard for chain retailers
There is no doubt that backhauling is the gold standard for recycling for chain retailers.
Simply put, backhaul recycling is sending the truck back tothe distribution center full of recyclable materials. Scrap paper, cardboard, plastic bags, stretch film (shrink wrap), pallets, etc.
This technique is a economy of scale play. Each store’s volumes may be too low to encourage store level recycling or individual market areas may or may not viable recycling programs for a given material. By backhauling the recyclables, chain retailers amass enough volume of each material to be able to get preferred pricing and make a lower investment in compactors and balers and otehr recycling equipment.
Retailers may even backhaul sufficient volumes of recyling materials that the recycler will “spot a truck” at the loading lock or the retailer may be able to deal “mill direct,” where they can negotiate directly with the paper mill or what have you.
The United States Postal Service has a Zero Waste Initiative which involves backhauling. Check out a presentation called Implementing Backhaul Recycling here.
Waste Audits in the UK
Believe it or not, in the past 4 months Midas has gotten more than half a dozen inquires about waste audits and recycling consulting engagements from companies outside of the USA. The first was from Jordan, then Dubai, then Nigeria, where interestingly, I do have some business contacts. Sadly, Midas does not conduct waste audits outside of the US and Canada.
If you are in the UK, The Greenhouse provides businesses with tailored waste management programs to minimize their waste output and costs. Check them out. In 2008 their reveunes were over $8,000,000. The Greenhouse has a particularly interesting case study for a large carpet retailer where they utilize backhauling of recyclables. I say so because Midas has long considered backhauling to be the gold standard in recycling for chain retailers because it allows them to leverage their scale.
Polystyrene Recycling
Wal-Mart gets a lot of bad raps. Be the top dog and it’s inevitable. That said, a Wal-Mart branded Polystyrene recycling container recently appeared at my city’s recycling drop off facility. It appears the retail giant is stepping up and leveraging it’s scale to create demand for an otherwise non-recyclable material.
Undoubtedly they will backhaul the Recyclable polystyrene material to one of their DCs for economies of scale.
This is reminescent of Coca-Cola and PET, where it’s demand for recycled material in it’ s bottles spurred the PET recycling market. What’s truly impressive is that Wal-Mart appears to be moving beyond it’s loading dock and partnering with municipal recycling efforts. That’s a nice move. Well done Wal-Mart!
