Single Serve Solutions
Buholzer Brothers - Muenster Mild and Creamy - Tradition of Quality
Nestlé Works to Spark Shift From Virgin Plastics to Food-Grade Recycled Plastics

Nestlé Works to Spark Shift From Virgin Plastics to Food-Grade Recycled Plastics

Tuesday, January 21st, 2020

The packaging sustainability race continues on with one certainty: The first to find a replicable answer will be a champion for the industry, the land, and the eco-conscious consumers that fill it. Upping the ante substantially, Nestlé has announced it plans to invest up to CHF 2 billion (just over $2 billion USD) in sustainable packaging solutions and innovations.

Mark Schneider, CEO, Nestlé"No plastic should end up in landfill or as litter," said CEO Mark Schneider. "Making recycled plastics safe for food is an enormous challenge for our industry. That is why in addition to minimizing plastics used 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. We welcome others to join us on this journey."

Building on its 2018 commitment to make 100 percent of its packaging recyclable or reusable by 2025, the company said in a press release that it will invest to lead the shift from virgin plastics to food-grade recycled plastics with plans to reduce its use of virgin plastics by one third in the same period. In tandem, Nestlé will also work with others to advance the circular economy and endeavor to clean up plastic waste from oceans, lakes, and rivers.

Andrew Morlet, CEO, Ellen MacArthur Foundation"We are pleased to see Nestlé commit a CHF 2 billion investment toward creating a circular economy for plastics, alongside a reduction of its use of virgin plastic in packaging by one third by 2025. By eliminating the plastics we don’t need, innovating in areas like reuse models and new materials, and circulating the plastics we do need—also in more challenging food grade applications—we can create an economy where plastic never becomes waste. Achieving the commitments announced today will significantly contribute towards realizing this vision," said Andrew Morlet, CEO of the Ellen MacArthur Foundation, a U.K. registered charity that aims to inspire a generation to re-think, re-design, and build a positive future through the framework of a circular economy.

Nestlé identifies this move as creating a market of food-grade recycled plastics, which are currently in limited supply because most plastics are difficult to recycle for food packaging. The company also stated that quality and safety of food are paramount, and that packaging plays a major role in assuring both.

Nestlé has made a commitment to make 100% of its packaging recyclable or reusable by 2025

To create a market for these resources, Nestlé is committed to:

  • Sourcing up to 2 million metric tons of food-grade recycled plastics
  • Allocating more than CHF 1.5 billion ($1,548,937,500 USD) to pay a premium for these materials between now and 2025
  • Seeking operational efficiencies to keep this initiative earnings neutral

In addition to significant in-house research through the Nestlé Institute of Packaging Sciences, the company said it will launch a CHF 250 million (over $258 million USD) sustainable packaging venture fund to invest in start-up companies that focus on these areas.

How will this move inspire other players, big and small, to change up their packaging strategies? Deli Market News will continue to report.