Eco-Products president talks compostable foodservice synergies as Novolex acquires Vegware

10 Aug 2021 --- US-based Novolex has acquired Vegware, a compostable foodservice packaging provider headquartered in Edinburgh, UK.

The partnership aims to give Vegware additional access to the North American market. It will also broaden the presence of Eco-Products, Novolex’s compostable foodservice packaging business, in Europe.

“Early planned launches include the introduction of our Vanguard molded fiber grease resistance solution as well as the Cutlerease compostable cutlery dispensing systems to the Vegware product portfolio,” Eco-Products president Ian Jacobson tells PackagingInsights.

“The combination of Vegware and Eco-Products brings two of the most innovative product development teams together under the Novolex platform.”

Founded in 2006, Vegware has reported double-digit growth year on year. The company sells to over 70 countries and became Scotland’s fastest-growing exporter in 2021.

Committing to compostable
According to Jacobson, the demand for compostable packaging has “grown tremendously,” especially in the wake of the pandemic.

For example, Novolex launched a production line for manufacturing compostable cold beverage cups made from plant-based plastic, after Vegware unveiled paper lids made from sustainably-sourced paper lined with plant-based PLA in February.

The Vegware acquisition is motivated by the “tremendous growth” in compostable packaging demand.In Innova Market Insights 2021 Consumer Survey, 29 percent of UK consumers and 20 percent of US consumers viewed compostable packaging as the most environmentally sustainable packaging option.

Thirty-four percent of survey participants agreed to pay more for sustainable packaging, up at 38 percent in the US.

As consumers continue to support brands that prioritize sustainability, Novolex’s plans to invest in more eco-conscious packaging solutions run in parallel. “Our Vegware acquisition reflects that commitment by expanding our compostable packaging portfolio and our geographic reach,” notes Jacobson.

The Vegware brand will come under Novolex’s Eco-Products portfolio of brands, but will continue to sell its products under the Vegware label. The financial terms of the deal are not disclosed.

Global footprint expansion
Vegware mirrors Eco-Products’ packaging portfolio as it sources renewable, plant-based materials to manufacture cups, cutlery, tableware and takeout packaging designed to be commercially composted with food waste.

Composting sequesters carbon from the atmosphere and locks it in the soil. “Joining Novolex will allow Vegware to expand distribution of quality compostable products and waste management initiatives to our customers across the globe,” says Joe Frankel, managing director of Vegware.

Notably, besides developing its product portfolio, Vegware’s goals are to enhance its waste management and composting programs.

PackagingInsights spoke with Vegware’s Lucy Frankel ahead of the implementation of the EU Single-Use Plastics Ban, which is driving industry interest in compostable packaging solutions – particularly in the foodservice sector.

News from Novolex
Composting sequesters carbon from the atmosphere and locks it in the soil. However, when organic waste reaches landfills, it is starved of oxygen. When compost breaks down, it emits the greenhouse gas methane, which is harmful to the atmosphere.

Last week, Novolex reported it will target a 20 percent reduction of greenhouse gas emissions per ton of production by 2025, citing compostable packaging as a means of achieving this goal.

The Vegware acquisition follows Novolex’s July purchase of the businesses of Flexo Converters USA, a family-owned manufacturer of stock, custom and recycled paper bags and sacks.

By Anni Schleicher

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