Funday Sweets founder says governments should help SMEs match Mars Wrigley recycling goals
Daniel Kitay hopes Mars Wrigley’s move to paper packaging will unlock similar options for SMEs.
Mars Wrigley Australia made headlines earlier this week with the announcement that it’s switching to paper packaging for Mars, Snickers and Milky Way bars. The rollout is the result of $2.5 million in research and development over the past three years and is a world-first for the multinational brand.
Hitting shelves next April, the new wrappers can be recycled at any kerbside recycling bin. Bars will continue to be manufactured and packaged at its Ballarat, Victoria, plant. Speaking to AFR, Mars Wrigley also assured fans it would not be increasing prices for their favourite bars.
Daniel Kitay, founder of low-sugar confectionery brand Funday Sweets, hopes the move will unlock similar options for SMEs, but says boutique producers like his would struggle with the costs to transition without support.
“The more that people utilise these sorts of materials and different innovation, it will sort of become the status quo. It fundamentally brings in more suppliers into the market, and that will naturally decrease the price and allow smaller and medium-sized businesses to enter the market,” he said.
But pricing for recyclable paper packaging is prohibitive.
“The multinationals are in a really good position because they can absorb these costs a lot greater than smaller and medium-sized businesses can.”
“It’s a really challenging time for businesses that are getting cost increases left right and centre,” he said.
Kitay says the packaging cost would be four to five times greater than what he currently pays.
“For an SME, that increase, that commercial increase is very significant. To the point where it can actually be uncommercial at times. And that can stymie a lot of environmental innovation. And that’s a huge problem for a lot of businesses, and I spoke to a lot of businesses that are feeling the same thing.”
Speaking with SmartCompany, Kitay called for government or institutional support for SMEs looking to make the switch to greener alternatives.
“The challenge for a business that’s trying to make it work in a commercial environment where inflation is everywhere, we sort of need some assistance. And I would say probably from government, to actually intervene and say ‘this is a significant priority’.”
Funday Sweets produces its confectionery in a 100% carbon-neutral way. More than half of the energy it uses comes from renewable sources, it ships its packets in recyclable cardboard boxes, and edible waste byproducts from production are used as animal feed where safe to do so.
Its soft plastic packaging was suitable for store dropoff recycling, but this option has unfortunately hit a roadblock with the recent revelation of REDcycle’s failure.
“That project hasn’t actually turned out the way a lot of Australians would have expected that program to work out. That’s really unfortunate,” Kitay said.
In a recent chat with SmartCompany, Dr Anya Phelan, a lecturer at the University of Queensland Business School and entrepreneur in residence with the CSIRO Plastics Innovation Hub, agreed the REDcycle fiasco was “hugely disappointing” but said producers must share responsibility, and called for tighter regulation on packaging companies and food and beverage producers and the types of containers they use.
For SMEs though, that would mean tough, expensive decisions. And there’s still no support for those wanting to match the Mars Wrigley switch to recyclable paper, or to try biodegradable or compostable options, right now.
“We’ve never heard from any government body or institution saying ‘you’re doing a good job’, or ‘we can support you if you commit to providing x amount of funding towards it’ or anything like thatm” said Kitay.
“It would be good to see some support. I think we’d see greater adoption of it across industry as a result.”
