Last week REDcycle, a popular soft plastics recycling programme operating at supermarkets across the country, pressed pause on the scheme. Citing a 350% increase in returned plastics since 2019, along with supply chain issues exacerbated by the pandemic, collections have ballooned while the processing has become untenable.
It’s another example of the sheer scale of our plastic problem. A problem largely driven by the FMCG industry. The Coca-Cola Company actually increased its plastic packaging over the past year, using around 3.2 million tonnes in 2021 alone.
While it’s a worthy and noble pursuit, factors such as budget, location and fear of change all impact a business’s ability to make the necessary changes to its packaging. Sustainable solutions can be cost-prohibitive for small businesses, not all processing plants take all types of plastic waste and not all suppliers offer recycled plastics as part of their product range.
From a marketing perspective, a change in packaging can affect brand visibility, brand recall and customer perception, leading many businesses to come to the conclusion that the risk is greater than the reward.
At Little Big Dairy we recently switched from dark coloured caps to clear on the more than 120,000L of milk we produce each week. The switch was significant; dark coloured lids contain dye pigments which reduce the value in recycling and make it difficult for the infrared lights at recycling processing facilities to identify and sort them as recyclable material.
However it wasn’t without significant business risk.
The colour of a milk bottle lid is the key identifier consumers use when they’re grabbing a bottle off the shelf on their way home.
Despite Japan banning the sale of coloured drink bottles in 1995, and Aldi being in the process of trialling clear lids in selected UK stores, decreased brand recognition is the reason this small yet significant shift is yet to gain traction globally.
Yet this small change illustrates that there are opportunities if you’re willing to research and explore alternatives. For businesses looking to kick start their journey, examining current supply chains and looking for opportunities to substitute plastic products for sustainable versions or make the switch to recycled plastics is a start.
The biggest barrier to change is often a lack of relevant knowledge, expertise and experience with the organisation. However you don’t need to have all the answers. You just need the support of those who do.
Joining industry associations provides access to a wealth of relevant knowledge, support and contacts to assist in making necessary changes.
The Australian Institute of Packaging (AIP) is the country’s peak body for education and training and regularly works with the Federal Government to run programmes aimed at improving FMCG packaging.
The Australian Packaging Covenant Organisation, an industry body that’s dedicated to keeping as much packaging out of landfill as possible, runs the Packaging Recyclability Programme while its Australasian Recycling Label (ARL) Program supports organisations in designing packaging that is recyclable at end-of-life.
PKN Packaging News is Australia’s leading publication dedicated to packaging and a constant source of information and inspiration.
It was our contacts at APCO who highlighted the impact of the pigments we used in our plastic products and sparked a small but mighty change in our business operation.
While major innovations in packaging are currently driven by industry, developing relationships with key government departments will ensure you’re kept up-to-date with relevant industry announcements and programmes.
Participation in initiatives such as the federal government’s AusIndustry Entrepreneurs Program, and Improving Sustainable Packaging Options for SMEs, are a great gateway to sustainable packaging options and will link you up with the relevant industry players.
Meanwhile in retail, meeting with your category managers early in the process regarding any packaging changes will help ensure a seamless transition once the new packaging is live. However change doesn’t happen overnight. Who Gives a Crap searched high and low for a plastic-free solution to its packing tape, having to make do until they could find a paper solution. Which they thankfully did.
Customers are naturally reluctant to change and with the seemingly infinite options in the FMCG space, the comfort of familiarity is often key to sales. Research shows that packaging design, including colours, fonts, text and imagery, is key to attracting your consumer’s attention and differentiating your product from a competitor’s. And when your customer is unsure which product to choose, it’s going to be the packaging that seals the deal.
Rather than fear the impact, making sustainable business changes is actually an opportunity to form deeper connections with your customers through strategic communications strategies that take them on the journey.
Brands need to educate their customers along the whole process. Communication that is clear, consistent and adaptable across all customer touchpoints will engage customers, dispel concerns and ensure you’re still front of mind at the checkout.
In our recent transition to clear lids, we prioritised our customers in the process, and banked significant goodwill through positive feedback, putting to bed the argument that sustainable change and profit can’t coexist.
While it’s not feasible for all small businesses to work towards net zero pledges or become certified B-corps, there are still many ways small businesses can work towards more sustainable packaging operations.
Each business is unique and what works for one may not work for another. But by drawing on the resources made available by government, industry, suppliers and membership bodies, businesses can find the tools to help them identify the area for improvement in their supply chain, including second-life plastics.
Start from the ground up by taking care of the little things and you’ll find the bigger things start falling into line.
Campbell Chesworth is business development manager of The Little Big Dairy Co, where he oversees the company’s sustainability program and its mission to become Australia’s first circular dairy by 2025.
