• Finding better packaging solutions: Nestle Packaging Research Institute
    Finding better packaging solutions: Nestle Packaging Research Institute
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Nestlé has announced it will invest around AU$3 billion (CHF2 billion) to shift from virgin plastic to food-grade recycled plastics. It will also establish a sustainable packaging venture fund to invest in start-up companies that focus on packaging innovation.

In 2018, the company said 100 per cent of its packaging would be recyclable or reusable by 2025. Its 16 January announcement added it would reduce its use of virgin plastics by one third in the same period.

Nestlé Oceania head of corporate affairs Margaret Stuart, said that while the company works towards 100 per cent of its packaging being recyclable, leading the shift from virgin plastics to food-grade recycled plastics creating a market will be a "game changer".

To meet the new target, Nestlé will source up to two million metric tons of food-grade recycled plastics, it said. More than AU$2.2 billion (CHF1.5 billion) will be allocated to paying a premium for materials between now and its 2025 deadline, the company said.

Through the Nestlé Institute of Packaging Sciences, the company will launch an AU$377 million (CHF250 million) sustainable packaging venture fund to invest in start-up companies that focus on packaging innovation, including new materials, refill systems and recycling solutions.

In September last year, the company launched the Institute to help the company develop sustainable packaging solutions. At the time, CEO Mark Schneider said it would enable Nestlé to accelerate its efforts at bringing functional, safe and environmentally friendly packaging solutions to market and to address the global challenge of plastic packaging waste (Food & Drink Business 13/09/2019).

The new targets and venture fund build on the company’s commitment to research, sourcing and manufacturing to make recyclable or reusable packaging and ultimately contribute to its zero net greenhouse gas emissions by 2050 goal.

Nestlé said it would provide regular progress updates and make operational efficiencies to keep the latest initiative earnings neutral.

For food and beverage manufacturers, the integrity and safety of products is paramount, and packaging plays a major role in that equation. Schneider said: “No plastic should end up in landfill or as litter. Making recycled plastics safe for food is an enormous challenge for our industry.

“That is why in addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable. We are taking bold steps to create a wider market for food-grade recycled plastics and boost innovation in the packaging industry.”

Stuart said: "[A]lmost a third of packaging in our supply chain in Australia includes recycled content – predominantly in our products packaged in glass and metal, for example our Nescafé jars and Milo tins. 

"The company-wide goal will not only increase the amount of recycled materials used by Nestlé, it will “trigger action across the broader industry,” she said. From a local standpoint, the company will work closely with suppliers to develop new packaging solutions as well as ways to advance the local plastics circular economy.”

Planet Ark head of sustainable resource programs Ryan Collins told Food & Drink Business commitments such as these made by Nestlé are important for the development of robust markets and recycled materials. 

“If Australia’s circular economy is going to truly develop, we need a widespread commitment from major corporations to using recycled content.

“It is great to see the commitments to develop innovative packaging solutions from Nestlé. Recycling is really only part of the story. To truly close the recycling loop, we need to be buying back the material being recycled.”

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