South Africa: strong growth in recyclability

Since 2010, South Africa’s upmarket retail chain, Woolworths, has been a trailblazer in the introduction of recyclate into packaging. With a reputation similar in stature to the UK’s Marks & Spencer (and affectionately referred to simply as ‘Woolies’), this premier retailer now sells more than 2,000 of its food and household products in packaging containing between 30 and 70 percent recycled content, and some made from 100 percent post-consumer recycled HDPE.

Now, a dozen years since beginning this journey, the recent opening of PET washing and decontamination facilities at
Zibo Containers’ plant in Cape Town means an additional
1,000 packaging items from this one retailer alone can now
be recycled locally.

Explains Latiefa Behardien, chief technology and sustainability officer for Woolworths Foods: ‘This investment represents a huge boost for recycling in South Africa. It reduces packaging waste to landfill, improves the circularity of critical resources, and creates much-needed jobs. But it’s particularly exciting for us as it means an additional 1,000 of our semi-rigid PET thermoformed food packs can now be recycled, and reused in the production of similar PET thermoformed packaging – this is circularity at its best.’

As part of Woolworths’ vision for ‘zero packaging waste to landfill,’ packs are designed for circularity.

One example Behardien cites is a recent switch to ‘easy-wash-off’ adhesive, such as Avery Dennison’s CleanFlake technology that ensures label adhesive washes off entirely in the recycling process, leaving no residue to compromise the recyclate.

‘This results in the entire pack – not just parts of it – being recycled,’ Behardien adds.

While acknowledging that recycling alone cannot solve the world’s pollution problems, this has significant potential to impact cleaning up waste systems, creating jobs and reducing the use of virgin plastics.

‘Every step along the way helps to bring about a cleaner country for all,’ Behardien says.

Reducing pack sizes for Africa’s retailers

The informal retail sector represents almost 40 percent of retail sales in sub-Saharan Africa. This vibrant market is innovative in meeting consumers’ needs for smaller pack sizes, especially in the face of the ever-increasing cost of living.

Against this scenario, a potentially lucrative opportunity exists to provide low-cost dispensing systems, simultaneously addressing both sales growth and packaging reduction challenges.

From single cigarettes to small bags of sugar, coffee and sweets, informal retailers find ways to break apart manufacturers’ packs to meet consumer needs.

For instance, throughout Africa, commodities such as paraffin and cooking oil are sold in used soft drink bottles.

However, small pack sizes or sachets offer little value to waste pickers (collectors), even if recyclable, and the endemic absence of municipal services in these communities means much rubbish ends up in the environment.

Global retail specialist, Smollan, representing some of the world’s best-known FMCG and commercial brands, promotes responsible retailing activities in sub-Saharan Africa where business can have a positive effect on the environment and society – effortlessly and efficiently.

In conjunction with DY/DX Digital, a global product design consultancy, Smollan has co-created the Smartfill dispenser to meet this challenge.

The smart dispensers have been proven in the spaza market, not only enhancing sales by offering small pack sizes but also providing valuable data on quantities purchased.

A spaza is an informal convenience shop, selling small everyday household items, usually run from home to supplement household incomes. These shops grew as a result of sprawling townships established during the apartheid era – that made travel to formal shopping areas increasingly difficult or expensive.

By offering smaller purchase volumes, which can’t be manufactured affordably on an industrial scale, brand owners can tap into new customers/markets

According to Marc Wetselaar, COO of DY/DX Digital, thanks to Smartfill installations, sales in Thembisa, a township to the north of Johannesburg, jumped by some 400 percent monthly and the number of purchasing transactions by 450 percent.

‘People gravitated to the dispensers and easily understood the concept,’ he explains.

However, while technology is a key ingredient, it’s merely part of the solution.

Adds Michael Smollan, the group’s chief growth officer: ‘We’ve increasingly focused on sustainability and how we can support our customers. Smartfill helps brand owners to transition to more environmentally-conscious packaging options, while still growing their businesses.’

As brand owners look for continued sales growth while trying to solve packaging waste challenges, an answer may just lie within the informal trade.