Henkel leads US$5m investment in reusable cleaning packaging start-up
13 Sep 2019 --- As momentum for single-use plastics alternatives increases, Henkel’s venturing arm Henkel Ventures is the lead investor in a US$5million investment round in US-based cleaning products company Truman’s. A six-month-old direct-to-customer start-up, Truman’s offers hard-surface cleaners that use reusable bottles and concentrate cartridges to reduce plastic. With the EU single-use plastic ban approaching in 2021, many companies in the packaging industry are anticipating future obstacles and are already adapting their production cycles accordingly.
“Truman’s is a start-up with an innovative direct-to-consumer business model in the cleaning products category and a promising growth perspective. Truman’s has a strong focus on sustainability, as its product solution aims to reduce single-use plastic bottles significantly. Thus, it was a perfect fit for us and we look forward to collaborating with the Truman’s team,” Robert Günther, Corporate Director Henkel Ventures, tells PackagingInsights. He envisions Truman’s to excel given Henkel’s expertise in strong brands and technologies, customer base and global footprint.
This minority investment in Truman’s marks another step towards Henkel’s commitment to globally invest in start-ups. The company is taking over the role as lead investor in a seed round totaling US$5 million. Günther explains how the company is seeking to invest in start-ups in the strategic search fields of Henkel Ventures, such as direct-to-consumer and service models or sustainable solutions and concepts on the personal and home-care side. “We invest stage-agnostic; however, our sweet spots are seed and A/B rounds in which we like to lead, though we also co-invest in strong syndicates,” he adds.
Robert Günther, Corporate Director Henkel Ventures,
spoke with PackagingInsights
Truman’s ships its products, a set of four simple hard surface spray cleaners, direct to its consumers. The start-up aims to reduce single-use plastic bottles by shipping concentrate-filled cartridges that are mixed with water in reusable bottles at the point of use. It takes 30 truckloads of ready-to-use cleaners to equal one truckload of Truman’s refill cartridges, according to the company. “Cleaning should be simple, convenient and environmentally friendly,” states Truman’s Co-Founder and CEO Jon Bostock.
Henkel has previously invested in recyclable plastic packaging. This May, the company launched a fully recyclable black plastic bottle for its Bref products. This packaging material – developed by specialist plastic supplier Ampacet – uses an alternative carbon-free black color, enabling used bottles to be detected by recycling facility infra-red (NIR) optical sensors and integrated back into the value chain.
Other market leaders are also investing in reusable models for household goods. In July, Unilever launched Cif ecorefill – a new at-home technology that allows consumers to refill and reuse their Cif spray bottles “for life.” Made with 75 percent less plastic, Cif ecorefill simply attaches to the current Cif Power & Shine bottles and seamlessly releases the super-concentrated product into the bottle, which is filled with water at home.
P&G have also made visible efforts to reduce their plastic usage. Under multinational FMCG giant Procter & Gamble (P&G), brands such as Ariel and Luxor declared their commitment to sustainability through a planned 30 percent reduction of plastic in Fabric Care products across Europe by 2025, which the company says will be the equivalent of “one line of detergent bottles around the earth.”
Also, in August, DS Smith Plastics launched a new line of returnable alternatives to single-use packaging in the retail arena, coined Loop Ready Packaging (LRP). The LRP range is largely targeting the retail space and seeks to deliver benefits for brands, retailers, consumers and the planet, according to the company.
Several other companies in the packaging industry are also quickly responding to the high demand for environmentally-friendly alternative packaging. This ranges from the personal care to food and beverage categories, and is spurred by both consumers and the impending EU Regulation.
By Anni Schleicher
