TerraCycle

Last updated
TerraCycle
Company type Privately held company
Industry Waste management
FoundedSeptember 2001;22 years ago (2001-09) [1]
Founders Tom Szaky
Jon Beyer
Headquarters
Trenton, New Jersey
,
U.S.
Number of locations
21 countries
Key people
 Tom Szaky (CEO)
ProductsGoods made from recycled products
Services Recycling
RevenueIncrease2.svg $70 million (2023)
Website terracycle.com

TerraCycle is a private U.S.-based recycling business headquartered in Trenton, New Jersey. [2] It primarily runs a volunteer-based recycling platform to collect non-recyclable pre-consumer and post-consumer waste on behalf of corporate donors, municipalities, and individuals to turn it into raw material to be used in new products. TerraCycle also manages Loop, a consumer-products shopping service with reusable packaging. [3]

Contents

History

TerraCycle was founded by Tom Szaky and Jon Beyer in the fall of 2001. [4] [5] In 2002, the company bought a US$20,000 continuous-flow composting system invented by Harry Windle of Gainesville, Florida, to take organic waste and have it processed by worms into fertilizer. [5] [6] [7] Initial funding came from family and friends of Szaky and Beyer, as well as awards from business plan competitions. [5] [8] Further funding came from private investors. [5] [8] The first investor was Sumant Sinha, who gave $2,000 in exchange for 1% of the company stock. [5] [9]

The dining halls of Princeton University were the first sources of waste used. [5] [10] Instead of pure fertilizer, TerraCycle sold its products in liquid form upon concluding that liquid fertilizer could have better consumer reception. [10] [11] The original rationale for packing its liquid fertilizer in used plastic bottles was because the company could not afford new ones. [12] [13] Later, the company continued this process and marketed their gardening products as "Waste in Waste". [12] [14] Schools and local organizations collected bottles for TerraCycle in exchange for proceeds in what became known as the "Bottle Brigade". [5] [15]

TerraCycle's "plant food" packaged in reused bottles and reject spray bottle tops. CGW TerraCycle2 (14106012050).jpg
TerraCycle's "plant food" packaged in reused bottles and reject spray bottle tops.

The Coca-Cola Company and PepsiCo both gave TerraCycle a license to use their bottles in TerraCycle products. [16] [17] [18]

In 2004 and 2005, The Home Depot Canada and Wal–Mart Stores Canada began carrying TerraCycle products. [5] [19] During its growth, the company bought an abandoned mansion to house its interns and a warehouse for its fertilizer production and offices. [10] In 2007, TerraCycle developed Brigade and waste collection programs for Honest Tea, Stonyfield Farm, and Kraft Foods. [4] Seth Goldman, founder and CEO of Honest Tea, asked Szaky for a waste program for its Honest Kids brand. [12] [20] As Szaky himself designed sample products for the aluminum-plastic pouches, including pencil pouches and tote bags, Goldman agreed to sponsor the Drink Pouch Brigade. [12] [20] Upon deals with Safeway, Target, and Walgreens to buy the products, TerraCycle acquired approximately 20 million baled juice pouches stored by Encorp in British Columbia, Canada, which contained many Capri-Sun pouches. [12] [19] [21] Kraft granted TerraCycle permission to use Capri-Sun brand pouches in its products, [12] [22] They obtained additional sponsorship for the Drink Pouch Brigade as well. [12] [22] later followed by programs for other Kraft brands. [12] [22]

In 2008, TerraCycle partnered with Target to sell recycled Target plastic shopping bags fused together as reusable bags named "reTotes". [12] At the end of the year, TerraCycle lost $4.5 million. [20] As a result, the company changed its manufacturing processes to use pre-consumer extra and misprinted packaging labels from other companies in its upcycled products. [20] [23] TerraCycle changed to use the majority of its collected post-consumer waste for recycling into plastic molding pellets. [20] Around 2008, it ended its Bottle Brigade program. [24]

TerraCycle launched in the UK in September 2009 as its first market in Europe, and operates in 12 European markets. [25] By 2009, the firm moved away from manufacturing to licensing all of its products. [20] [26] The same year, it outsourced its vermicompost production to worm farmers in North Carolina. [27] In the UK, by 2010 its programmes have diverted over 57 million items of packaging waste from landfill (around the weight of a jumbo jet) while earning over £744,000 for schools, charities and non-profit organisations. [28]

From 2012, the firm and various tobacco companies partnered to launch a widespread collection and recycling system for cigarette butts. [29] The cigarette filters, generally made from cellulose acetate, are refined into pellets that are then used in the production of plastic items such as shipping pallets, benches, and ashtrays. [30] The company promises that the recycled plastic from cigarette filters will only be used in industrial products and not in household plastics, due to exposure to nicotine. [30] Tobacco and paper are composted in this program. [29] [31]

In January 2014, Progressive Waste Solutions announced a 19.99% interest acquisition in TerraCycle Canada to cooperate on recycling initiatives in Canada. [32] In October 2016, TerraCycle and Suez Environment announced that Suez acquired 30% of TerraCycle's European operations to develop collection and recycling programs in Europe. [33] At the World Economic Forum in January 2017, TerraCycle, Procter & Gamble and Suez announced production of the world's first recyclable shampoo bottle made from plastic recovered from beaches, rivers and waterways for the Head & Shoulders brand. The first bottles went on sale in France in June 2017 and in October the project was recognized by the United Nations as a winner of a Momentum For Change Lighthouse Activities Award. [34] In 2019, TerraCycle announced Loop, a closed-loop reusable packaging platform for consumer packaged goods companies. [35] The system ships food, household cleaning, personal care products in a reusable padded container. The products are delivered in reusable containers, which are returned to the Loop tote, picked up by Loop, cleaned, refilled and reused. [36]

Products and services

TerraCycle has created approximately 200 products, all of which are licensed to manufacturers, instead of being manufactured by TerraCycle itself. [20]

It began with the production of fertilizer made from vermicompost, which is produced by feeding organic waste to worms. The worms' excrement was then liquefied into "compost tea" by mixing it with air and warm water in large vats. [37] It was packaged in reused plastic water bottles. [5] [15] The spray bottle tops were rejects from other companies. [5] [8] Residue left over from the vats was used in potting soil and seed starter products. [37] [38]

The company diversified its production into upcycling around 2007 and began creating products from other waste items [4] such as making coin pouches and tablet cases from retired U.S. Postal Service bags. [27] Various products are produced from pre-consumer waste and post-consumer waste, including messenger and tote bags. [24] [27]

Plastic packaging waste, that is not upcycled, is recycled into a raw material that can be used in plastic products, including playgrounds, plastic lumber, plastic pavers, bike racks, park benches, and garbage and recycling cans. [39] [40]

Its recycling programs enable individuals or groups to collect specified waste materials in exchange for donations to a selected cause or school. [4] [22] Users sign up via the firm's website, [22] and shipping and donation costs are generally covered by a sponsoring company related to the specified recycling program. [20] [27] The waste materials, typically non-recyclable, are either refurbished, upcycled, or recycled. [41] [42]

Corporate affairs

Headquarters

The front of TerraCycle's headquarters. Front of TerraCycle HQ.jpg
The front of TerraCycle's headquarters.

TerraCycle's main headquarters are located in Trenton, New Jersey. [2] The office was originally a 20,000 square feet (1,900 m2) abandoned warehouse for a newspaper distribution facility. [43] [44] The headquarters were purchased by TerraCycle in the summer of 2004. [45] Its renovations were done by TerraCycle's internal design team, led by employee Tiffany Threadgould, [46] and its walls are painted annually by local graffiti artists at "Graffiti Jams". [5] [20] [22]

Marketing

The TerraCycle company logo is a green infinity symbol with two arrows pointed toward one another. Szaky designed the logo during a lecture at Princeton. [26] In 2007, Scotts Miracle-Gro Company charged the company with false advertising and trade dress violations in TerraCycle's choice of colors, claiming they were similar to its own products. [43] [15] [47] In response, TerraCycle started a media campaign known as "suedbyscotts.com". [48] [49] Scotts dropped the case after TerraCycle agreed to recolor its packaging to orange and green, and remove pictures of fruits and vegetables on its labels. [50]

TerraCycle was the subject of a National Geographic reality television series named Garbage Moguls.[ citation needed ] The pilot premiered on Earth Day, April 22, 2009. [12] The show featured the company's team searching for solutions to various waste streams. [12] [27] In 2014, Pivot launched Human Resources, a reality TV series providing a behind-the-scenes look at day-to-day operations at TerraCycle's headquarters. [51] It also partnered with game developer Guerillapps to make a Facebook-based flash game known as Trash Tycoon . [52] [14]

In 2021, TerraCycle agreed to update its labeling after settling a lawsuit accusing it of misleading product labeling. It was alleged that the company did not disclose the limits to the quantity of packaging that would be recycled. [53]

Related Research Articles

<span class="mw-page-title-main">Recycling</span> Converting waste materials into new products

Recycling is the process of converting waste materials into new materials and objects. This concept often includes the recovery of energy from waste materials. The recyclability of a material depends on its ability to reacquire the properties it had in its original state. It is an alternative to "conventional" waste disposal that can save material and help lower greenhouse gas emissions. It can also prevent the waste of potentially useful materials and reduce the consumption of fresh raw materials, reducing energy use, air pollution and water pollution.

<span class="mw-page-title-main">Extended producer responsibility</span> Strategy designed to promote the integration of environmental costs associated with goods

Extended producer responsibility (EPR) is a strategy to add all of the estimated environmental costs associated with a product throughout the product life cycle to the market price of that product, contemporarily mainly applied in the field of waste management. Such societal costs are typically externalities to market mechanisms, with a common example being the impact of cars.

<span class="mw-page-title-main">Zero waste</span> Philosophy that encourages the redesign of resource life cycles so that all products are reused

Zero waste, or waste minimization, is a set of principles focused on waste prevention that encourages redesigning resource life cycles so that all products are repurposed and/or reused. The goal of the movement is to avoid sending trash to landfills, incinerators, oceans, or any other part of the environment. Currently 9% of global plastic is recycled. In a zero waste system, all materials are reused until the optimum level of consumption is reached.

<span class="mw-page-title-main">Plastic bag</span> Type of container made of thin, flexible, plastic film, nonwoven fabric, or plastic textile

A plastic bag, poly bag, or pouch is a type of container made of thin, flexible, plastic film, nonwoven fabric, or plastic textile. Plastic bags are used for containing and transporting goods such as foods, produce, powders, ice, magazines, chemicals, and waste. It is a common form of packaging.

<span class="mw-page-title-main">Disposable product</span> Product designed to be discarded after use

A disposable is a product designed for a single use after which it is recycled or is disposed as solid waste. The term is also sometimes used for products that may last several months to distinguish from similar products that last indefinitely. The word "disposables" is not to be confused with the word "consumables", which is widely used in the mechanical world. For example, welders consider welding rods, tips, nozzles, gas, etc. to be "consumables", as they last only a certain amount of time before needing to be replaced. Consumables are needed for a process to take place, such as inks for printing and welding rods for welding, while disposable products are items that can be discarded after they become damaged or are no longer useful.

<span class="mw-page-title-main">Plastic milk container</span> Plastic bottle used to store commercially sold milk

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<span class="mw-page-title-main">Reuse</span> Using again

Reuse is the action or practice of using an item, whether for its original purpose or to fulfill a different function. It should be distinguished from recycling, which is the breaking down of used items to make raw materials for the manufacture of new products. Reuse—by taking, but not reprocessing, previously used items—helps save time, money, energy and resources. In broader economic terms, it can make quality products available to people and organizations with limited means, while generating jobs and business activity that contribute to the economy.

Precycling is the practice of reducing waste by attempting to avoid buying items which will generate waste into home or business. The U.S. Environmental Protection Agency (EPA) also cites that precycling is the preferred method of integrated solid waste management because it cuts waste at its source and therefore trash is eliminated before it is created. According to the EPA, precycling is also characterized as a decision-making process on the behalf of the consumer because it involves making informed judgments regarding a product's waste implications. The implications that are taken into consideration by the consumer include: whether a product is reusable, durable, or repairable; made from renewable or non-renewable resources; over-packaged; and whether or not the container is reusable.

<span class="mw-page-title-main">Upcycling</span> Recycling waste into products of higher quality

Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless, or unwanted products into new materials or products perceived to be of greater quality, such as artistic value or environmental value.

<span class="mw-page-title-main">Tom Szaky</span> Hungarian businessman

Tom Szaky is the CEO and founder of TerraCycle, a private, US-based business headquartered in Trenton, New Jersey that turns non-recyclable pre-consumer and post-consumer waste into raw material to be used in new products.

<span class="mw-page-title-main">Milk bag</span> Plastic bags that contain milk

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<span class="mw-page-title-main">Sustainable packaging</span> Packaging which results in improved sustainability

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<span class="mw-page-title-main">Recycling in Japan</span>

Recycling in Japan, an aspect of waste management in Japan, is based on the Japanese Container and Packaging Recycling Law. Plastic, paper, PET bottles, aluminium and glass are collected and recycled. Japan's country profile in Waste Atlas shows that in 2012 Recycling Rate was 20.8%.

<span class="mw-page-title-main">Retort pouch</span> Type of food packaging

A retort pouch or retortable pouch is a type of food packaging made from a laminate of flexible plastic and metal foils. It allows the sterile packaging of a wide variety of food and drink handled by aseptic processing, and is used as an alternative to traditional industrial canning methods. Retort pouches are used in field rations, space food, fish products, camping food, instant noodles, and brands such as Capri-Sun and Tasty Bite.

Ecologic Brands Inc. is a United States company that specializes in creating eco-friendly packaging for consumer products. The products are made from sustainable materials and are designed to be recyclable or compostable. The company also provides branding and marketing services to help companies promote their environmentally conscious products.

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<span class="mw-page-title-main">Disposable cup</span> Drinking cup intended for a single use

A disposable cup is a type of tableware and disposable food packaging. Disposable cup types include paper cups, plastic cups and foam cups. Expanded polystyrene is used to manufacture foam cups, and polypropylene is used to manufacture plastic cups.

<span class="mw-page-title-main">Recycling in Australia</span> Method of waste management in Australia

Recycling in Australia is a widespread, and comprehensive part of waste management in Australia, with 60% of all waste collected being recycled. Recycling is collected from households, commercial businesses, industries and construction. Despite its prominence, household recycling makes up only a small part (13%) of Australia's total recycling. It generally occurs through kerbside recycling collections such as the commingled recycling bin and food/garden organics recycling bin, drop-off and take-back programs, and various other schemes. Collection and management of household recycling typically falls to local councils, with private contractors collecting commercial, industrial and construction recycling. In addition to local council regulations, legislation and overarching policies are implemented and managed by the state and federal governments.

<span class="mw-page-title-main">Packaging waste</span> Post-use container and packing refuse

Packaging waste, the part of the waste that consists of packaging and packaging material, is a major part of the total global waste, and the major part of the packaging waste consists of single-use plastic food packaging, a hallmark of throwaway culture. Notable examples for which the need for regulation was recognized early, are "containers of liquids for human consumption", i.e. plastic bottles and the like. In Europe, the Germans top the list of packaging waste producers with more than 220 kilos of packaging per capita.

<span class="mw-page-title-main">Recycling in South Korea</span>

South Korean waste disposal policy operates under the Ministry of Environment. Waste is required to be separated into four parts: landfill waste, organic waste, recyclable waste, and large waste items. Recyclable waste such as: paper, plastics and glass, should be separated before disposal. Fines are applicable to violations of the policy.

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