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Mike Noel Governmental Affairs Manager, TOMRA CT Bottle Bill Redemption Reopening: Impacts and Learnings

CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Page 1: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Mike Noel

Governmental Affairs Manager, TOMRA

CT Bottle Bill Redemption Reopening:Impacts and Learnings

Page 2: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

• On March 17th the CT DEEP announced it would be exercising “enforcement discretion” for retailers offering container redemption services

• DEEP stated the discretion was being offered to allow flexibility to retailers who were finding it difficult to stock shelves during increased consumer demand and implement enhanced cleaning measures while offering container redemption services.

• During DEEP’s suspension of enforcement of retailer redemption requirements over 90% of beverage dealers (retailers) closed their bottle rooms and stopped offering over the counter redemption services to the public.

Background

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Page 3: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Consumers ability to redeem containers worth millionsin deposits was severely limited

With 15 operational Redemption Centers left in the state, customers had barely any recourse to get their deposit money back for more than two months.

Page 4: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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“Beverage container deposit systems generally account for 20-60% of our collective materials input batch

.... Simply put, as our industries have ramped up production to meet unprecedented demand for packaged food and beverages, a strong,dependable supply chain of recycled material is essential.”

Letter sent to Commissioner Dykes

Following the shutdown, food and beverage packaging industry associationsexpressed alarm at the drop-off in input material for essential goods

Page 5: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Before the pandemic TOMRA collected about 1 million units per day for recycling via RVMs

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Containers Collected for Recycling (TOMRA CT Online RVM only)

Data represents online RVMs only, which make up 75% of TOMRA’s CT portfolio

Page 6: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Within a week of DEEP’s enforcement suspension, container deposit recycling collection volume dropped to near zero

Containers Collected for Recycling (TOMRA CT RVM only)

Enforcement suspension

Data represents online RVMs only, which make up 75% of TOMRA’s CT portfolio

Page 7: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

• On May 1st, DEEP announced retailer redemption enforcement will return on May 20th.

• Sets temporary limitations for a phase-in period between 5/20 – 6/3 to “likely include a

• daily limit on the number of containers,

• limited hours to facilitate cleaning,

• appropriate social distancing requirements, and

• the wearing of masks.”

• Full reopening announced for June 3rd.

Phased reopening announced for May 20th and June 3rd

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Page 8: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

We launched a ‘Touch-Free Recycling’ featureand scaled it across Connecticut

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Touch-Free Recycling: How it Works

Page 9: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

We spread the word any way we could

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Page 10: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Upon reopening volume bounced back within 4 days

Containers Collected for Recycling (TOMRA CT RVM only)

Enforcementre-instated

Data represents online RVMs only, which make up 75% of TOMRA’s CT portfolio

Page 11: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Pre vs. Post-Suspension Summary

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Containers Collected for Recycling (TOMRA CT RVM only)

Enforcement suspended

Enforcementre-instated

Data represents online RVMs only, which make up 75% of TOMRA’s CT portfolio

Page 12: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Did consumers stockpile their containers or not?

Our theory…

Page 13: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Field Survey Findings & ObservationsMay 20st – 22nd

Page 14: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Between May 20 – May 22, TOMRA volunteers visited and observed redemption at 199 retailers across the state of Connecticut to gather insights on redemption behavior, operational needs and social distancing.

Overview

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Chains Visited

21

32

7

4

6

23

4

54

7

40

Towns Most Visited

Page 15: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

General Observations

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Are the store’s RVMs

turned on?*

74%

25%

*Some stores visited may have simply been closed for cleaning or closed due

to limiting redemption hours rather than not offering redemption at all.

Approximate number of recyclers observed

432Nearly all wore masks and were adhering to

posted distancing requirements

Page 16: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Some stores decided to only offer automated redemption

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Most Big Y locations and at least one Shop Rite location directed consumers to RVMs for redemption, stating that they would not accept containers manually in store, presumably due to the limited touch points and person-to-person contact offered by RVMs.

Page 17: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Key Learnings

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Dedicating staffto monitor and

provide customer service during the

phase-in period improved the experience for

everyone

Reopening beforethe weekend was wise

Retailers really stepped up to the plate and deserve

credit

Connecticut’s deposit’s program

has a loyalconsumer base

Page 18: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Pictures from the field

Page 19: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Big YWest Hartford, CT

Page 20: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

What We Saw

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CostcoMilford, CT

ShopRiteClinton, CT

Page 21: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

What We Saw

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Stop & ShopStamford, CT

Big YMansfield, CT

Page 22: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

What We Saw

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CostcoNorwalk, CT

Page 23: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

What We Saw

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Stop & ShopGlastonbury,

CT

Page 24: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

Health & Safety Best Practice Precautionsfor Redemption Operations During COVID-19A value chain perspective

Page 25: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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We worked with retailers to implementnew social distancing best practices

Page 26: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Page 27: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Page 28: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

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Page 29: CT Bottle Bill Redemption Reopening: Impacts and Learnings · packaged food and beverages, a strong, dependable supply chain of recycled material is essential.” Letter sent to Commissioner

www.tomra.com

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