Tesco and Faerch establish closed-loop PET recycling partnership as supply drys up

25 Oct 2021 --- Tesco and Faerch are partnering on a closed-loop recycling solution for the secondary plastic packaging used to transport and hold products on Tesco shelves. The “industry-first” solution will recycle an estimated 2000 metric tons of plastic into food-grade packaging annually. 

PET shelf-ready packaging is widely used by UK supermarkets to transport products but is typically downcycled into non-food applications.

Through this new “tray-to-tray” initiative, Tesco’s secondary PET will be collected by Faerch and converted through an advanced recycling process into new food-contact PET pots, tubs and trays.

According to Rabobank, advanced recycling continues to flourish, despite criticism from NGOs and media reports challenging the cost-effectiveness and environmental performance of these technologies.

Hitting the 30%
Tesco guarantees the packaging for its own brand cut fruit, selected yogurts and meat will contain 30% recycled PET (rPET) originating from its stores.

The supermarket giant says it will require all its own brand and branded suppliers to use food contact approved PET for shelf-ready packaging to achieve this goal.Tesco guarantees the packaging for its own brand cut fruit, selected yogurts and meat will contain 30% rPET originating from its stores.

The announcement comes ahead of the UK’s Plastic Packaging Tax, which will enforce a £200 (US$275) per metric ton tax rate for plastic packaging containing less than 30% recycled plastic produced or imported into the UK. The tax will be implemented in April 2022.

Overcoming PET shortages
With the ever-increasing demand for PET bottle flake, Tesco’s recycling setup in stores helps address the shortfall in rPET availability.

Tesco and Faerch have signed a multi-year supply agreement.

The rPET shortage is also causing alarm in the EU. Recently, the soft drinks industry urged the EU to establish a legal framework for efficient deposit return systems and provide the non-alcoholic beverage industry with “priority access” to rPET.

Supporting the circular economy
Tesco is tackling plastic waste through its 4Rs strategy, “removing packaging where they can, reducing it where they can’t, reuse more and recycle what’s left.” Since the strategy’s inception in 2019, Tesco has removed a billion pieces of plastic from its UK business. The supermarket aims to remove a further half a billion this year.

Tesco has reportedly reduced the materials used each year in its packaging by more than 2000 metric tons and recently partnered with TerraCycle’s reusable packaging service Loop in ten stores and launched soft plastic recycling facilities across all large stores.

“Wherever we can, we remove or reduce packaging, but where it is needed, we want to improve circularity to make our packaging as sustainable as possible,” comments William Guest, sustainable packaging manager at Tesco.

“One way we can do that is by ensuring packaging meets food contact requirements, remains within the food packaging sector, and is recycled back into food contact packaging.”

“This is a perfect example of how collaboration between packaging manufacturers, retailers and their suppliers can deliver lasting change and material circularity,” adds Mark Tollman, Group Strategic Sales Director from Faerch.

“The ‘Tray 2 Tray by Faerch’ project demonstrates PET packaging can be recovered and recycled at an industrial level and made back into food-grade pots and trays.”

Edited by Joshua Poole