Marks & Spencer and Ocado venture pilots world-first digital DRS in UK recycling boost

13 Dec 2022 --- Ocado Retail, a joint venture between Marks & Spencer Group and Ocado Group, is partnering with Polytag to trial an on-pack Digital Deposit Return Scheme (DDRS) technology through QR codes on milk bottles. The project is designed to improve the recycling rate of single-use plastic packaging in the UK. 

During the 12-week trial, Polytag’s “unique-every-time” QR codes will be applied to Ocado Retail’s 1.6 million fully recyclable two-pint and four-pint milk cartons, with labels featuring instructions and a call-to-action for shoppers. Consumers can bin the packaging at any existing recycling facility and redeem a deposit into their mobile wallet using the QR code.

“This world-first trial has game-changing implications for recycling in this country. A successful trial, supported by the online-only supermarket Ocado Retail, will be a significant step toward implementing a DDRS in this country that will provide a much more convenient and environmentally friendly way for households to recover their deposits,” says Alice Rackley, CEO at Polytag.

“Brands will also be presented with radical new marketing tools and a wealth of data on how consumers recycle their products,” she adds.

Incentivizing recycling
The QR codes households can scan with their smartphones to receive detailed recycling information is an attempt to prove that a DDRS is viable, the Wales-based DDRS provider shares.

During the trial, Polytag’s unique codes will be applied to fully recyclable two-pint and four-pint milk cartons.Upon scanning the QR code, consumers access landing pages – built by Ocado Retail – to share customized campaigns and links to relevant content and reward schemes.

The trial will provide Ocado with a direct-to-consumers marketing channel on a national scale, enabling it to broadcast its environmental sustainability goals to increasingly eco-conscious shoppers.

“As the world’s largest online supermarket, we champion innovative technology as we strive to become the UK’s most sustainable grocery retailer,” says Laura Fernandez, senior packaging and sustainability manager at Ocado Retail.

“Polytag’s digital platform offers environmental and economic benefits for retailers and customers alike – it’s easy to use and, when used at scale, could have a hugely positive impact on the nation’s DRS. We’re looking forward to seeing how our customers respond to the trial and how many would redeem their deposit at home.”

Ocado Retail recently announced a pause to the construction of new automated distribution centers in the UK, which were scheduled to open in 2024 and 2025, in a bid to scale back sales expectations given a downward trend in demand. However, the DDRS pilot could support the company’s recyclability goals in line with the increasing policy moves toward DRS.

Responsible behavior?
While Ireland, Malta and Scotland implemented a DRS to increase recycling rates earlier this year, consumer research carried out by Tetra Pak before the launch of the UK government’s flagship recycling policy revealed that more than half (58%) of UK consumers do not understand what DRS entails.The unique-every-time QR codes can be scanned on smartphones to receive detailed recycling information.

“The British public is willing and excited to use the new DRS, but confusion over which materials are included risks undermining it,” Alex Henriksen, managing director at Tetra Pak North Europe, said at the time.

“The most straightforward, user-friendly DRS is one that includes a wide range of materials and offers a digital option, allowing consumers to engage with the scheme from home.”

However, a more recent survey among 2000 adults by Reward4Waste – a recycling technology company based in England – revealed that nearly two-thirds (68%) of consumers would prefer a DDRS using an app at home or on-the-go.

Additionally, in July, Evian and Reward4Waste partnered to create a DDRS for Wimbledon to boost water bottle recycling at the tennis championships. Sporting the catchphrase “scan, recycle, win,” the project allowed users to enter a draw to win two pairs of tickets to the Wimbledon 2023 Women’s Finals by scanning the QR code on the recycling points and barcode on Evian drinks containers. It also showed return points throughout the grounds and Wimbledon town center.

Discussing the difficulties this project presented and how they were overcome, Rachel Warren, marketing director at Reward4Waste, and Tony McGurk, chairman at Reward4Waste, told PackagingInsights that the “challenge was to create a hybrid solution that supports QR codes and standard EAN barcodes on Evian Centenary bottles, using the existing Reward4Waste platform and deploy it in less than three months.”

By Radhika Sikaria