Encorp Pacific (Canada)

2

1970 Litter Act1994 Encorp Pacific Inc. established1998 Beverage Container

Stewardship Program Regulation2004 Recycling Regulation

How We Got Started

3

Roles & Responsibilities

The Public

Provincial Government

Local Governmentsmunicipalities and regional

districts

Non-Government Organizations

environmental and consumer

Government and Non-Profit Sector

Not-for-profit Corporate Sector

Encorp Pacific (Canada)– a product

stewardship agency Retailers

Brand Owners

For-profit Corporate Sector

Private Sector Recycling Industry –

depots, processors, transporters and recyclers

4

Unredeemed DepositsCommodity ValuesContainer Recycling Fees

calculated for each container typeno cross-subsidy between container types

How the System is Funded

5

How Encorp’s system worksENCORP gets paid the deposits & Container Recycling Fee

Brandowner packages beverages in their choice of container Sells the beverages to the retailer Charges the retailer deposits and container recycling fees (CRF) Pays Encorp the deposits and CRF

SYSTEM

PROCESS

$

1 BRAND OWNER

6

ENCORP creates consumer awareness programs

Pays deposits and CRF to brandowner when beverages purchased Sells beverages and charges purchaser deposits and CRF

How Encorp’s system works

2 RETAILER

7

ENCORP creates consumer awareness programs

How Encorp’s system works

Pays deposits and CRF Takes empty containers to depot Receives refund of deposit

3 CONSUMER

8

ENCORP reimburses depots for deposits and pays handling fees

Depot pays deposit refund to consumer Depot places containers in bags Depot stores bags for pickup

How Encorp’s system works

4 DEPOT$

9

ENCORP pays fee to transporters

Driver collects full bags and loads truck Driver enters number and type of bags into handheld computer Transports containers to nearest processor

How Encorp’s system works

5 TRANSPORTER$

10

ENCORP pays fee to processors

Processor bales containers to make them easier to ship Glass containers are crushed

How Encorp’s system works

$6 PROCESSOR

11

ENCORP receives payment from sale of materials

Recycler converts containers into raw material or new products Glass containers are crushed

How Encorp’s system works

$

7 RECYCLER

12

Sales GrowthActual Sales - Units (000's)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

815,000

2000

849,000

2001

894,000

2002

948,000

2003

1,012,000

2004

1,058,000

2005 Actual

1,122,000

2006Forecast

13

68.00%

70.00%

72.00%

74.00%

76.00%

78.00%

80.00%

Recovery Rate

72.48%

2000

72.48%

2001

74.04%

2002

74.99%

2003

72.97%

2005 Actual

72.50%

2006Forecast

74.16%

2004

14

Growth of bottled water sales in single serve plastic new types of retail outlets & distribution new types of consumers

Increased high-density urban development storage redemption convenience

Industrial, Commercial & Institutional (IC&I) sector return-it@work

Recycling Fatigue lower priority for local governments

Challenges

15

Thank you!