Starbucks, McDonald’s, other partners invest $ 10 m to promote sustainable packaging

24 / 10 / 2021

• CSR
• news

Starbucks, McDonald’s and other partners announced injecting additional funds of $ 10 million to promote sustainable packaging.

Closed Loop Partners announced an additional $10 million commitment from the NextGen Consortium’s Founding Partners, Starbucks and McDonald’s, to continue the Consortium’s work; identifying, accelerating and scaling commercially viable, circular foodservice packaging solutions.

Since 2018, the NextGen Consortium has made significant headway in advancing sustainable packaging innovation and recycling infrastructure to help end foodservice packaging waste, with an initial focus on redesigning the single-use hot and cold fiber cup. The Consortium’s NextGen Cup Challenge sourced 480 solutions globally to redesign the cup, selecting 12 winning solutions across three areas: innovative cup & cup liners, new materials, and reusable cup service models. Following the Challenge, the Consortium has continued to advance the development of innovative cup and cup liner innovations, and the Consortium’s Circular Business Accelerator supported six early-stage teams to help test and refine their solutions.

In 2019 and 2020, Accelerator teams executed on-the-ground tests at a large tech company’s campus with four solutions, including two reusable systems, moving to the pilot phase across 14 local, independent cafes in the San Francisco Bay area. These solutions received valuable feedback from customers, restaurants and other key stakeholders. Drawing on insights from those pilots, the Consortium released a first-of-its-kind report, Bringing Reusable Packaging Systems to Life, sharing a blueprint and open-source resource to encourage collaboration and the growth of reuse models. The Consortium also continued its work across the broader foodservice packaging value chain, conducting dozens of lab- and commercial-scale tests with recyclers, material test labs and paper mills to evaluate the performance, recyclability and recoverability of the fiber cup solutions. As part of this work, the Consortium collaborates with paper mills, recycling facilities and municipalities to expand recycling access and recovery of fiber cups as well as NextGen cups.

“Through NextGen, we’ve made great progress in growing more sustainable packaging solutions, and there is a lot more work to be done. Faced with increasing climate risks, eco-conscious customers and a resource-constrained world, the foodservice industry must double down on its efforts and band together to strategically tackle the mounting waste challenge,” said Kate Daly, Managing Director of the Center for the Circular Economy at Closed Loop Partners. “Starbucks, McDonald’s and other partners in the Consortium make clear their commitment to collaboratively accelerate more circular foodservice packaging solutions, and we encourage stakeholders––from packaging manufacturers to recyclers to designers––to join us in advancing NextGen solutions.”

With the additional $10 million in funding, the Consortium will expand its efforts, including and beyond the fiber cup, to strengthen the sustainable packaging ecosystem. The Consortium will deepen its customer research and testing of reusable packaging systems, explore the circularity of additional packaging materials such as polypropylene (PP), and accelerate the development of more widely recyclable and compostable fiber-based packaging solutions, as well as the infrastructure pathways needed for their recovery. The Consortium’s increased focus on PP is driven by the growing demand for recycled PP in foodservice packaging, and the need to optimize recycling infrastructure to capture the material. With its additional focus on polypropylene, in 2020, the Consortium joined The Recycling Partnership’s Polypropylene Recycling Coalition as a Steering Committee member, collaborating to allocate millions of dollars in grants to recycling facilities to improve polypropylene recycling.

“Starbucks’ work with the NextGen Consortium has been an important part of our ongoing efforts to reduce single use cup waste, part of our larger goal to reduce waste sent to landfills by 50% by 2030,” said Michael Kobori, Chief Sustainability Officer at Starbucks. “There has never been a more critical time for industry collaboration to shift away from single-use packaging, promote reusability, and champion recyclability. We are thrilled to continue our work with the NextGen Consortium to drive sustainable solutions for our planet.”

“Over the last three years, the NextGen Consortium has demonstrated that working together as an industry helps accelerate sustainable change, and is paving a clear pathway forward for the industry to scale packaging solutions that can benefit the planet and the communities we serve,” said Marion Gross, Senior Vice President and Chief Supply Chain Officer at McDonald’s North America. “Knowing that industry-wide collaboration is essential to creating lasting, scalable impact, we invite others to join us in this important work to advance solutions and eliminate packaging waste.”

Individual waste mitigation efforts by Founding Partners Starbucks and McDonald’s further bolster the Consortium’s work to accelerate sustainable packaging innovation, foster more robust recovery opportunities for packaging, and develop, enhance and optimize emerging reuse models. Starbucks continues to innovate to encourage the use of personal reusable cups in stores, most recently in partnership with Ocean Conservancy, and will continue to test and learn from programs geared toward reducing single-use cups around the world. McDonald’s has also made strides toward reuse, partnering with TerraCycle’s Loop platform to pilot reusable cups in the brand’s UK stores, and continues to make tremendous progress in ensuring its packaging comes from renewable, recycled or certified sources.

“Getting to a circular economy will require every community, organization and industry to be involved in making it a reality. The food & beverage industry touches all people, and so the need for more sustainable packaging for our customers is a top priority,” said Alpa Sutaria, General Manager, Sustainability, North America Operating Unit, The Coca-Cola Company. “We are proud not only to continue our work with the NextGen Consortium, but to increase our commitment, now as a Sector Lead Partner. We invite others to join us in this effort to strengthen and scale circular solutions for packaging.”

“With approximately 11 million metric tons of plastic waste ending up in our oceans every year, we need to bring circular packaging solutions to the table. We know that to tackle this massive, shared challenge, all stakeholders have to be involved,” says Erin Simon, Head of Plastic Waste + Business at the World Wildlife Fund (WWF). WWF is an environmental advisory partner for the Consortium. “The NextGen Consortium can play an important role in catalyzing the collaboration we need by enabling cross-sector partnerships and open-source insight sharing, and we are proud to be a partner in this important work.”

Moving forward, even greater collaboration among businesses, industry groups, nonprofits and others will be needed to solve systemic waste challenges. Through the expanded commitment of the NextGen Consortium, the multi-year collaboration will continue to work across the value chain––with global brands, municipalities, NGOs, recyclers and manufacturers––to advance viable market solutions that scale throughout the supply chain and bring value to recovery systems.