Diageo partners with ecoSPIRITS to offer products in refillable vessels across 18 markets
By Ralph Tathagata
To explore the viability of reusable packaging and distribution, Diageo is partnering with ecoSPIRITS, a circular economy startup, to offer Gordon’s gin, Captain Morgan rum and Smirnoff vodka in refillable 4.5-liter vessels across 18 markets over the next three years.
According to Diageo’s Global Marketing Sustainability Director, Deb Caldow, Diageo’s partnership with EcoSpirits began two years ago during its effort to identify startups tackling the industry’s sustainability challenges.
“We saw the company’s potential to change the way we provide spirits to bars and restaurants, helping to reduce glass bottle usage and ultimately the carbon emissions in our supply chain,” Caldow said.
Also commenting, Ewan Andrew, Diageo’s CSO and president of global supply chain and procurement, said, “We will be able to reduce both carbon and cost and the pubs and bars will benefit from the ease of having reusable spirits packaging.”
In 2020, Diageo set a 10-year “Society 2030 goal” to reach net zero carbon and 100 percent renewable direct energy, halving its Scope 3 carbon emissions.
EcoSPIRITS, based in Singapore, launched in 2018 and in May attracted $10 million in Series A funding led by Closed Loop Partners.
Thirty-two percent of glass containers are recycled in the U.S., according to the EPA. By contrast, in the EU, 80 percent of glass bottles were collected for recycling in 2021, according to the Close the Glass Loop partnership.
Also, according to Statista, new glass production is highly carbon intensive, from mining silica to melting glass within furnaces powered by fuel oil or natural gas to reach temperatures as high as 3,000 degrees Fahrenheit, often continuously. Glass manufacturing emitted 95 million metric tons of carbon dioxide in 2022.
Each ecoSPIRITS’ “ecoTOTE” is a 4.5 liter glass bottle encased in plastic with an inner aluminum frame. The container, built to last for 150 refills, has a lower carbon intensity than the equivalent number of bottles they replace at a bar after six refills, according to ecoSPIRITS. The system is supposed to replace 900 of the typical 750-milliliter glass bottles normally used by restaurants and bars over the lifetime of one ecoSPIRITS tote. The company estimates its totes have a 60 to 90 percent lower CO2 footprint than traditional bar bottles.
Diageo and ecoSPIRITS have offered Smirnoff in ecoTOTES to 38 bars, restaurants and hotels in Bali and Jakarta since 2022. From the ongoing trial in Indonesia, Diageo estimated the circular delivery method could slash the usage of glass bottles by 95 percent and help to reduce carbon emissions from transportation and distribution.
EcoSPIRITS claimed the initial success of the pilot to prove the commercial viability of circular packaging in Indonesia.
“We have already seen positive impact from a smaller trial and look forward to rolling it out in further markets as we continue to build towards our Society 2030 targets,” Caldow said.
“As we roll this out to more markets, we can build a broader evidence base, develop our systems and bring benefits across our supply chain,” he added.
RECOMMENDED ARTICLES
Comment
No comments found.