The three food scrap drop-off sites funded by Closed Loop Partners re-opened in October, and are already attracting over 1,000 regular weekly participants and collecting over 7,000 pounds of food scraps each week. Located at GrowNYC’s 79th Street, Abingdon Square and Tribeca Greenmarket farmers markets, these sites offer convenient composting opportunities to Manhattan residents, from downtown to the Upper West Side. Together, these sites collected over 33,000 pounds of food scraps in just one month, with greenhouse gas emission reductions equivalent to conserving 1,435 gallons of gasoline (EPA WARM). As the holidays approach, typically bringing with them substantially higher rates of at-home cooking and associated food scraps, GrowNYC aims to secure additional funding that will allow them to resume operations across all 76 of their original food scrap drop-off sites, helping make composting accessible to all New Yorkers.

“By collecting food scraps from across the city and diverting them from landfills that are costly to taxpayers, we can realize remarkable economic and environmental benefits,” says Ron Gonen, CEO of Closed Loop Partners. “As the city continues to build circularity into their systems, GrowNYC plays a critical role in recapturing valuable materials like food scraps, and we’re proud to partner with them.”

GrowNYC is one of the most established environmental organizations in New York City, engaging over three million New Yorkers every year in environmental programs that improve the city’s quality of life. Supported by recently restored funding from Speaker Corey Johnson and the New York City Council, New York City Sanitation Department (DSNY), Closed Loop Partners and City Council Member Keith Powers, the organization recently reopened 16 of their 76 food scrap drop-off sites across Manhattan, the Bronx, Brooklyn and Queens––showcasing public and private sector collaboration toward a more circular economy. All food scraps collected by GrowNYC are composted locally, in partnership with NYC Compost Project host sites and other community partners, including Big Reuse in Brooklyn and Queens, Earth Matter on Governors Island, the Lower East Side Ecology Center in Manhattan and Queens Botanical Garden.

“We are immensely grateful to Closed Loop Partners for their generous support, allowing us to bring back more food scrap collection sites in NYC, following COVID-related budget cuts earlier this year that brought our compost program to a standstill,” said GrowNYC President and CEO, Marcel Van Ooyen. “At GrowNYC, we work to make living an environmentally conscious lifestyle in the City second nature––something that, particularly right now, would not be possible for many New Yorkers, without help from partners like Closed Loop Partners, as well as the leadership of Speaker Corey Johnson and the City Council.”

In New York City alone, over 30% of the residential waste stream is made up of compostable organic waste, including food scraps, food-soiled paper and yard waste, which too often end up rotting in landfills, emitting greenhouse gases and contributing to climate change. On a macro level, roughly one third of the food produced for human consumption every year––approximately 1.3 billion tons––gets lost or wasted, costing industrialized countries roughly $680 billion in economic value. Thus, it’s critical that we recapture the value of food scraps, bringing value to communities, the planet and business. Especially at this critical moment, as we face the impacts of climate change in addition to the effects of a global pandemic, it is of the utmost importance that we come together to support invaluable services––especially those that build more resilient supply chains and communities.

For more information on GrowNYC’s compost collection sites, the types of materials you can drop off and ways you can support the organization, visit GrowNYC.org.

For information on food scrap drop-off locations citywide, visit nyc.gov/dropfoodscraps.

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity and project finance, as well as an innovation center focused on building the circular economy.

The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities. Their investments align capitalism with positive social and environmental impact by reducing waste and greenhouse gas emissions via materials innovation, advanced recycling technologies, supply chain optimization and diversion of materials from disposal.

About GrowNYC

GrowNYC was originally created in 1970 as the Council on the Environment of New York City (CENYC). Born out of the spirit of the first Earth Day, CENYC was initially a policy-based organization, writing comprehensive reports about quality of life issues like air quality, traffic and noise. New York City has changed a lot since then and so has the organization. As the largest and most established environmental organization in NYC, GrowNYC is proud to have played a pivotal role in helping New York City transform over the past five decades. Today, three million New Yorkers each year participate in GrowNYC programs.

Tuesday, November 17 (New York) — Today, Closed Loop Partners’ Center for the Circular Economy released their U.S. and Canada Recycling Infrastructure and Plastic Waste Map, as part of their broader Advancing Circular Systems for Plastics and Packaging Initiative. The comprehensive visual tool brings to light the diversity of plastic waste and the volumes and flows by country and state, highlighting critical opportunities to recapture valuable plastics and re-incorporate them into manufacturing supply chains.

The analysis shows that the U.S. and Canada are sending 11.5 million metric tons of plastic packaging to landfill every year, with the recycling system currently only capturing 18% of packaging.  This comes at a time when demand for recycled content is growing rapidly, with over 250 brands and retailers in the U.S. publicly committing to increase their use of recycled content in products and packaging. Yet, the supply of recycled content to meet this fast-growing demand is missing. Closed Loop Partners found that the current supply of recycled plastics meets just 6% of demand for the most common plastics in the U.S. and Canada.

Enhancing the transparency of supply chains and better measuring and understanding the current flow of materials are essential first steps to improve plastics recovery. Closed Loop Partners published the U.S. and Canada Recycling Infrastructure and Plastic Waste Map to identify the magnitude of the plastics waste challenge, the key infrastructure gaps and the opportunity areas. By increasing visibility across the plastics value chain, we can drive collaboration among diverse stakeholders––from policymakers and brands, to plastics manufacturers and materials recovery facilities. 

The analysis also highlights the diverse formats, applications and end-of-life markets for plastics, demonstrating the need for multiple solutions to stem plastic waste. Mechanical recycling in the U.S. and Canada recaptures the value of 2,557 million metric tons of plastic packaging after final use per year, primarily from polyethylene terephthalate (PET) plastic bottles kept in circulation. But, mechanical recycling is not an end of life solution for many other forms of plastic waste, like apparel, construction plastics, automotive applications and more, where there may be an opportunity for advanced recycling to fill this gap and solve for these hardest-to-recycle plastic-based products. However, these solutions still cannot serve all materials and markets perfectly or in perpetuity, and we must also deploy and scale reuse and rental systems, among others, to help extend the life of materials and reduce the overall volume of virgin plastic entering the market. Current strategies to address plastic waste are complementary, but taken alone they will be ineffective at producing a circular system for all plastics. Without a multi-pronged approach, plastic waste in all forms, from various industries, will continue to grow. 

“To efficiently and effectively tackle all plastic waste, we must first understand the volume and types of plastic flowing through our economy,” says Kate Daly, Managing Director of the Center for the Circular Economy at Closed Loop Partners. “Using plastic packaging as a starting point, this analysis helps investors, brands, entrepreneurs and policymakers understand the diversity of plastic waste in our system and make data-driven decisions. This tool helps galvanize stakeholders to accelerate our collective journey toward a circular economy for plastics through multiple plastic-waste mitigation strategies, and we call upon additional industries to share their data on plastic waste streams to shed light on the additional opportunities.” 

Closed Loop Partners embarked on this study to map the volume of plastic packaging and containers specifically, but this is far from the only plastics that must be solved for. The plastics growing in landfill are diverse, including plastics from car parts, healthcare and textiles. The firm is working with organizations across the U.S. and Canada to leverage additional data on other plastic materials and add to this dataset to drive greater transparency and better understanding of all types of plastic waste flowing through current systems. The firm calls upon industry to look beyond packaging and collect data on all plastic waste to create a circular future.

“Foundational to effective action and investment is an informed understanding of where, how much and what quality of plastic waste is being generated in the United States and Canada,” says Anne Johnson, Principal and Vice President of Global Corporate Sustainability for Resource Recycling Systems (RRS). “Packaging waste only scratches the surface of the plastic waste problem. Polyester textiles contribute to 13.4 billion pounds of landfill waste in the U.S., and require both traditional and new advanced recycling platforms to recapture their value after use. This data visualization tool can be built upon to shine a light on the full spectrum of plastic waste in existence today, providing much-needed transparency and collectively advancing a circular economy for plastics.”

“We are excited to see this U.S. and Canada Recycling Infrastructure and Plastic Waste Map from Closed Loop Partners,” says Peylina Chu, Executive Director for the Healthcare Plastics Recycling Council. “As the healthcare industry looks for circular solutions for the millions of tons of clean healthcare plastic, this map helps set a precedent for collaborative efforts along the plastic value chain that can help efficiently identify and leverage synergies between healthcare plastics and other valuable scrap plastic streams as we all add data and share insights on this global waste challenge.” 

A more robust understanding of the status quo, strengthened by investments and policies that fill opportunity gaps highlighted by the current waste flow, will increase capacity to process more used material across the country, deliver feedstock for both mechanical and advanced recycling, create demand pull, generate additional jobs, mitigate greenhouse gas emissions and advance the transition to a circular economy. 

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity and project finance, as well as an innovation center focused on building the circular economy. The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities. Investments align capitalism with positive social and environmental impact by reducing waste and greenhouse gas emissions via materials innovation, advanced recycling technologies, supply chain optimization and landfill diversion. Learn more here. 

About Advancing Circular Systems for Plastics and Packaging Initiative

At Closed Loop Partners, we envision a waste-free future for plastics. We launched our Advancing Circular System for Plastics and Packaging Initiative understanding that there is no silver bullet solution to solve complex global waste challenges. Ending plastics waste will require a combination of approaches such as design innovation, reuse and advanced recycling to accelerate the transition to a circular economy for plastics. Our Center for the Circular Economy partnered with Target Corporation, Bank of America, Colgate-Palmolive, 3M, The American Chemistry Council and Sealed Air to produce the U.S. and Canada Recycling Infrastructure and Plastic Waste Map. Our technical partners on this project included Resource Recycling Systems and The Recycling Partnership. Learn more about our investments, collaboration and research here.

Closed Loop Partners’ $2.6 million loan adds to a previously-awarded $390,000 grant by The Recycling Partnership to the city, which was provided by the American Beverage Association via its “Every Bottle Back” initiative. In total, the $4.5 million project comes at a key moment for strengthening recycling infrastructure across the United States, particularly in the Southwest, highlighting the importance of collaboration between the public and private sectors to catalyze capital and galvanize stakeholders that can scale impact.

Closed Loop Partners provided the funding through its project finance arm, the Closed Loop Infrastructure Fund. Launched in 2014 in partnership with 12 of the world’s largest consumer goods and retailers, the fund finances recycling infrastructure and innovations across the U.S. to advance the circular economy. With growing pressures from climate change, the need to build resilient local supply chains and mitigate environmental damages has come to the fore. The circular economy provides tangible solutions––lowering greenhouse gas emissions and redirecting waste from landfill, while generating significant economic benefits by keeping valuable materials in circulation. To fully transition to circular material flows, increasing access to strong and stable recycling infrastructure is essential. 

Over the next 10 years, the initiative is projected to collect 124 million pounds of recycled material, including over 5 million pounds of new polyethylene terephthalate (PET) and 2 million pounds of new aluminum, creating strong feedstocks for eventual use in various manufacturing streams. The city will send the collected material to American Waste Control, an advanced Materials Recovery Facility (MRF) in Tulsa for processing. By ensuring that the pipeline of collected materials will be met by demand, the economic viability and long-term circular flow of resources is secured.

“We are thrilled to help bring this initiative to fruition for the City of Broken Arrow,” says Bridget Croke, Managing Director at Closed Loop Partners. “Opening access to and advancing recycling systems in Oklahoma is critical to building local and regional circular systems in the Southwest, and will have significant ripple effects to advancing the circular economy across the United States.”

“We are excited to begin curbside recycling in the City of Broken Arrow. We have already had great participation from our citizens, who are interested in the positive economic and environmental impact recycling will have on our city. The Broken Arrow Municipal Authority looks forward to this initiative to make our city more sustainable,” says Mayor Craig Thurmond on behalf of the Broken Arrow Municipal Authority.

The project officially launches in the fall of 2020, and marks the beginning of a cart-based recycling system for the City of Broken Arrow. For more information on this project, visit RecycleBA.com.

About Closed Loop Partners

Closed Loop Partners is a New York based investment firm comprised of venture capital, growth equity, private equity and project finance, as well as an innovation center focused on building the circular economy.

The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities. Their investments align capitalism with positive social and environmental impact by reducing waste and greenhouse gas emissions via materials innovation, advanced recycling technologies, supply chain optimization and diversion of materials from disposal.

About the City of Broken Arrow

Located in northeast Oklahoma, Broken Arrow is the fourth largest city in the State of Oklahoma, with an estimated population of over 113,000 people spread out over 61 square miles. Broken Arrow is also home to the third largest manufacturing hub in the state, with many employees working in the energy sector. Residents in Broken Arrow enjoy a high quality of life, characterized by low crime, high performing schools, affordable housing and easy access to many parks and recreational facilities. The City of Broken Arrow sets the standard by providing the best municipal programs and services.

October 15  – On August 25, 2020, Adam Vehik was elected by the Balcones Resources’ Board of Directors to assume the responsibilities of President of the Corporation. Vehik will assume his post as President immediately, leading the continued growth of the company following its acquisition of Sarasota-based, AI-powered recycling facility, Single Stream Recyclers (SSR).

Prior to his 10-year tenure as Chief Financial Officer of Balcones Resources, Vehik had an extensive career in finance, law, marketing, and strategy & technology commercialization, spending four years in private equity and working in the White House during the Clinton Administration. He also garnered international experience, working in Johannesburg, South Africa and Granada, Nicaragua, and conducting expeditions in the Arctic Circle and Australian Outback, studying applications of closed loop ecosystems across a variety of contexts. For the last five years, he has served as a Board Member for Hill Country Conservancy, the most influential land trust in Central Texas. Vehik received his JD and MBA from the University of Arkansas, received his undergraduate degree in Economics from Vanderbilt University, and studied International Economics in Perth, Australia and International Law in Prague, Czech Republic.

Backed by leading circular economy investment firm Closed Loop Partners, Balcones Resources is an Austin-based environmental services company whose primary business is related to the collection, processing and selling of recyclable materials in the commercial and residential sectors of our economy. Today, Balcones processes and sells more than 250,000 tons of recyclables per year in Austin, Dallas, Little Rock, and Sarasota. The company’s recent acquisition of Single Stream Recyclers will help support its continued growth and the scaling of a circular economy in the South.

Disclaimer:

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

New York (Oct. 9, 2020) — Today, Hy-Vee Inc. joined the Consortium to Reinvent the Retail Bag as a Supporting Partner, alongside Founding Partners CVS Health, Target and Walmart, and joined by DICK’S Sporting Goods, Kroger and Walgreens. Closed Loop Partners’ Center for the Circular Economy launched the Consortium and its Beyond the Bag Initiative earlier this year with the aim of identifying, testing and implementing viable design solutions and models that more sustainably serve the purpose of the current retail bag.

Hy-Vee, Inc. is an employee-owned supermarket chain operating more than 275 retail stores across eight Midwestern states. “The opportunity to join the Beyond the Bag Initiative and address the shared challenges presented by single-use plastics with some of the largest and most influential retailers in our country is crucial  as we remain committed to reducing our environmental impact,” said Jay Marshall, Hy-Vee’s Vice Chairman and President of Hy-Vee’s Supply Chain and Subsidiaries. “Through this collaboration, we can truly move the needle on a global waste issue and bring to life some much-needed solutions. We look forward to contributing our knowledge and insights and collectively collaborating with other Consortium Partners to pave the way for a more sustainable future.”

“We are thrilled to welcome Hy-Vee to the Consortium to Reinvent the Retail Bag. The collaborative power of our Consortium enables us to have impact at scale and accelerate the pace of innovation to find alternatives to the current retail bag,” says Kate Daly, Managing Director of the Center for the Circular Economy at Closed Loop Partners. “We continue to invite other retailers to join us and send a unified signal for transformational change to address this long-standing environmental challenge.”

The Kroger Co. is the Grocery Sector Lead Partner of the Consortium, directing priorities and activities for the initiative within the specific sector. “Our commitment to phase out single-use plastic bags across our enterprise is a critical part of our Zero Hunger | Zero Waste social impact plan,” said Lisa Zwack, Kroger’s Head of Sustainability. “We’re thrilled to welcome Hy-Vee to the Consortium and we encourage other retailers to join our search for innovative, sustainable solutions to the traditional single-use plastic bag.”

Single-use plastic bags are among the top 10 items found on beaches and waterways, and it’s estimated that we use 100 billion plastic bags per year in the U.S., contributing to a global waste challenge. The short use (12 minutes, on average) and long lifespan of the plastic bag have led to rising concerns. This is a challenge that is top-of-mind for communities and consumers who are concerned about the impact of single-use plastics on our environment and for brands who are seeking more sustainable solutions. Current alternatives can be costly and inconvenient, often trading one environmental issue for another. The retail bag needs reinventing.

In August, the Consortium launched a global innovation challenge to source solutions to replace the current plastic bag – including tech-enabled reuse models, new materials, and software and hardware innovations. The Challenge closed last week with more than 450 submissions. Consortium Partners, including retailers and Environmental Advisory Partners, alongside third-party experts will carefully review and select the Shortlist and Winners. All submissions are viewed through the lenses of sustainability, accessibility, customer behavior and alignment with reuse and recovery infrastructure. Winning concepts are eligible to receive a portion of $1 million in funding, participate in a Circular Accelerator to receive further assistance in scaling, and access testing and potential piloting opportunities.

The initiative not only brings together major retailers as Consortium Partners, but also engages with stakeholders across the bag value chain, including suppliers, materials recovery facilities, municipalities, advocacy groups and others to support this collaborative approach designed to promote viable market solutions that can scale, and bring value to retailers, customers and end markets. The Consortium takes a holistic three-year approach to identify and scale affordable, accessible and less wasteful solutions. It will aim to test and launch near term solutions early on in the Initiative, while also continuing to refine longer term solutions to ensure that the industry is designing both for today and tomorrow’s needs. The initiative spans multiple complementary workstreams, spurring innovation, advancing materials recovery through infrastructure investments, identifying best practices for policy and engaging consumers.

About Hy-Vee

Hy-Vee, Inc. is an employee-owned corporation operating more than 275 retail stores across eight Midwestern states with sales of $10 billion annually. The supermarket chain is synonymous with quality, variety, convenience, healthy lifestyles, culinary expertise and superior customer service. Hy-Vee ranks in the Top 10 Most Trusted Brands and has been named one of America’s Top 5 favorite grocery stores. The company’s more than 85,000 employees provide “A Helpful Smile in Every Aisle” to customers every day. For additional information, visit www.hy-vee.com.

About the Center for the Circular Economy at Closed Loop Partners

The Center for the Circular Economy at Closed Loop Partners convenes competitors to solve material challenges and advance the circular economy. Its first initiative, the NextGen Consortium, united leading food and beverage companies to identify and commercialize a widely recyclable, compostable and/or reusable cup. Twelve winning cup solutions were selected and the Consortium is supporting the testing and piloting of these new solutions to accelerate their path to scale. Now, in partnership with leading retailers in the United States, the focus is on the single-use plastic retail bag, a challenge and opportunity that is top-of-mind for communities and consumers concerned about the impact of single-use plastics on our environment. Learn more about the Center’s work here.

About the Consortium to Reinvent the Retail Bag

The Beyond the Bag Initiative, launched by the Consortium to Reinvent the Retail Bag, aims to identify, pilot and implement viable design solutions and models that more sustainably serve the purpose of the current retail bag. Closed Loop Partners’ Center for the Circular Economy launched the initiative with Founding Partners CVS Health, Target and Walmart. Kroger joined as Grocery Sector Lead Partner, DICK’S Sporting Goods as Sports & Outdoors Sector Lead Partner and Hy-Vee and Walgreens as Supporting Partners, alongside Conservation International and Ocean Conservancy as Environmental Advisory Partners. OpenIDEO is the Consortium’s Innovation Partner.

Read the full report

New York, Sept 24 – Today, Closed Loop Partners’ innovation center, the Center for the Circular Economy, announced the release of its timely report, The Circular Shift: Four Key Drivers of Circularity in North America. The report highlights critical trends driving circularity in the region, putting circular economy solutions at the center of business strategy, innovation development, policy changes, and new institutional partnerships.

The tumultuous events of 2020 have shed light on the importance of strong, stable, transparent systems, exposing the risks of overcomplicated, opaque supply chains and the limitations of continually extracting finite resources. In North America and around the world, supply chain disruptions, growing amounts of waste, and health and safety risks have called attention to the flaws of business-as-usual. As these challenges come to the fore, the urgency of rethinking systems that throw $10 billion worth of resources into U.S. landfills has increased. With growing investments and interest in less wasteful systems, the circular economy in North America is in the midst of a sea change.

Since 2014, Closed Loop Partners has been operating and investing in the circular economy, finding opportunities in the space and supporting its rapid growth across the U.S. Drawing from the firm’s investment intelligence and its Center’s research, the report delves into the Four Key Drivers of the Circular Economy in North America, exploring how innovation, investment, policy and partnership act as key enablers of the emerging economic model.

These factors shape and strengthen the landscape for circularity as investable opportunities have noticeably advanced, with momentum and innovation in the space growing rapidly. Capitalizing on the circular economy ultimately promises to recapture business value, offering a $4.5 trillion global opportunity by 2030, according to Accenture. Unexpected partnerships and visionary policy will be essential to accelerate the shift toward an economic model that is enduring, and able to withstand future shocks.

Against the backdrop of this year’s NYC Climate Week, the link between the circular economy––the reduction of both extraction of raw materials and of waste––and the consequences of climate change have never been stronger, or more apparent. The circular economy is not a singular solution, nor a short-term fix. To achieve circularity goals, such as decarbonization and dematerialization, change must be sweeping and collaboration must be far-reaching. Much like environmental solutions must include every stakeholder in the path forward, so must the circular economy.

“The clock is ticking on our current linear economic system and the circular economy offers a path forward: a robust framework that aligns the interests of shareholders, corporations, local communities and the environment,” says Kate Daly, Managing Director of the Center for the Circular Economy at Closed Loop Partners. This report builds on the achievements to date and the necessary actions to move forward, underscoring the urgency of focused investment, innovation opportunities, policy change and unexpected collaborations to achieve system-wide change.

Nestlé today announced a USD 30 million investment in the Closed Loop Leadership Fund, the private equity fund of circular economy investment firm Closed Loop Partners to lead the shift from virgin plastics to the use of food-grade recycled plastics in the U.S. This investment is the first to utilize Nestlé’s packaging venture fund established earlier this year, which is part of the company’s overall investment of up to CHF 2 billion to accelerate the development of innovative sustainable packaging solutions.

“This investment is one of many solutions we are exploring to address the global plastic waste challenge,” said Véronique Cremades-Mathis, Global Head of Sustainable Packaging, Nestlé. “It will help create a more sustainable recycling system and, at the same time, assist us in achieving our commitment to reduce our use of virgin plastics by one third by 2025. This is particularly important as increasing the use of recycled plastics could substantially reduce the environmental impact of our packaging.”

Closed Loop Leadership Fund is a private equity fund that was created to acquire companies along the value chain to build circular supply chains. The fund invests in companies that aim to increase recycling rates in the U.S. and keep valuable materials in packaging supply chains by integrating and improving all aspects of supply chains, from access, collection, sortation to processing.

According to the United States Environmental Protection Agency, the U.S. recycling rate for all materials, including plastics, is around 25 percent. Recycling rates, however, can vary significantly by material type. This is due in part to the different ability of municipal recycling systems to accept and process materials.

“It is important that we do our part to help keep recyclable materials out of landfills, and increase recycling rates in the U.S., and this investment is a significant move in that direction. It is also a critical step in our effort to secure access to high-quality, food-grade recycled plastics which can be converted into new packaging material for use across our product portfolio,” said Steve Presley, Chairman & CEO of Nestlé USA.

The investment will be used for the financing of Closed Loop Leadership Fund’s acquisition of well-established, best-in-class companies that are advancing the circular economy in the U.S. The Fund aims to increase recycling rates by an additional twenty-five percentage points in areas serviced by the portfolio companies.

“Nestlé’s investment is a significant commitment to help modernize, optimize and capitalize circular economy infrastructure in the U.S. and harness innovative technologies to keep materials in manufacturing supply chains,” said Ron Gonen, CEO of Closed Loop Partners. “In addition to the investment, Nestlé has committed to create an end-market for the food-grade recycled plastics processed through the companies we acquire. This will enable us to fully close the loop on valuable materials.”

Through its investment in the Closed Loop Leadership Fund, Nestlé will have access to recycled plastics feedstock processed by companies in which the Fund will invest in order to achieve greater volumes of food-grade recycled plastics for its packaging.

As consumer interest in more sustainable packaging continues to grow and manufacturers compete for supply, having access to high-quality food-grade recycled PET, polyethylene (PE) and polypropylene (PP) will increase Nestlé’s ability to incorporate recycled plastics into packaging across its food and beverage portfolio. The increasing use of recycled plastics will help reduce carbon footprint, aligned with the company’s ambition to achieve zero net greenhouse gas emissions by 2050.

This investment has the potential to impact a variety of brands in its U.S. portfolio. Nestlé uses PET in bottles for Coffee mate and Starbucks creamers, in trays for Stouffer’s entrees, and across its bottled water portfolio which has doubled the amount of rPET used since 2019 across its still water portfolio in the U.S. to 16.5%. The company uses PE in rigid canisters of Nesquik powder, and PP in Lean Cuisine trays and the new Gerber Incredipouch, a first-of-its-kind, single-material baby food pouch designed to increase recycling value. Flexible films appear in a variety of packaging formats, including bags of Nestlé Toll House morsels and the wraps on refrigerated cookie dough.

This announcement builds on Nestlé Waters North America’s USD 6 million investment in Closed Loop Partners’ Infrastructure Fund, which finances recycling programs and infrastructure improvements to create a circular economy in the U.S.

Contacts:

Media:
Christoph Meier Tel.: +41 21 924 2200
[email protected]
Investors:
Luca Borlini Tel.: +41 21 924 3509
[email protected]

Disclaimer:

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

New York, August 25 – Today, Algramo — a Chile-based startup solving economic and environmental issues through its vending machines that dispense staple products such as household cleaners “by the gram” — launched its first United States based refill vending machine pilots in multiple locations across New York City. The pilots represent the first exciting step in Algramo’s expansion into North America, and will provide invaluable insights to accelerate the next generation of modern, convenient, and cost conscious refill systems that advance the future of retail.

In a natural resource constrained world, reusing valuable packaging materials is a critical part of building a more circular economy. Smart reusable packaging can help minimize the amount of waste left behind from single-use plastic packaging in landfills and oceans. At the same time, Algramo’s refill system allows customers to purchase cleaning products at an affordable price. Algramo not only makes the sustainable option the cheaper option, but also the more equitable and convenient option.

The various Algramo refill systems, which activate this week, will dispense cleaning products including, Clorox Splash-less Cleaning Bleach* and Pine-Sol Multi-Surface Cleaner*, Softsoap Liquid Hand Soap from Colgate-Palmolive Company, and hand sanitizer from EcoLogic Solutions in the pilots taking place at Essex Market in the Lower East Side of Manhattan, Building 77 at the Brooklyn Navy Yard and The Laundry in BK with a goal of growing throughout the city and beyond. Harnessing the power of digital technology, Algramo’s smart refill system will incentivize reuse, improve operations, and strengthen customer relationships and the community. Their low-contact system meets rigorous health and safety standards, minimizing the various touch points between customers and their purchasing of a product and getting it home.

Customer experience, cost competitiveness, ease of integration at small businesses, and measurable impact on waste reduction will all be key priorities tested in these pilots. The aim is to ensure that this business model is applied in a way that works for busy New Yorkers. Accelerating systems change is not easy and paving the way forward for scalable “refill on the go” models requires continuous testing and honing of solutions. These pilots are a critical part of the learning process, building on successes thus far and advancing developments for the system as a whole.

“These pilots will be invaluable in proving the viability and superiority of refill models that eliminate the need for single-use plastic packaging and address social and economic barriers to more sustainable options,” says José Manuel Moller, CEO and Founder of Algramo.

Closed Loop Partners, the lead investor in Algramo and a pioneer of circular economy focused investments, is bringing Algramo to the United States. “Algramo is on the forefront of a new retail experience; their tech-enabled refill system optimizes the customer experience and meets the growing demand from customers for convenient, accessible and waste-free solutions. We are seeing a lot of market demand for this solution,” says Bridget Croke, Managing Director at Closed Loop Partners and Algramo Board Member.

Founded in 2012, Algramo began in Chile and already operates in over 2,000 family owned stores that reach over 325,000 end-customers in Santiago de Chile. This year, Algramo expanded to the U.S. and was selected to join Newlab’s Circular City Studio that empowers urban tech startups to help make New York more equitable, livable, and resilient.

“Colgate-Palmolive has committed to eliminate plastic waste by designing and delivering circular and alternative solutions for our products,” says Emily Fong Mitchell, General Manager, Personal Care North America, Colgate-Palmolive. “We are excited to partner with Algramo on this pilot as we work to achieve our ambition.”

“EcoLogic is proud to partner with Algramo and its synergistic mission of working towards a more sustainable future. We are thrilled to be working with Algramo’s modern and convenient reuse model to reduce our impact,“ says Anselm Doering, the CEO of EcoLogic.

*These products are not EPA registered

About Algramo
Algramo came into existence to solve a problem impacting millions of low-resource families: the poverty tax. This market failure occurs when low-resource families buy products in small formats and pay up to 40% more for products. Algramo solves the poverty tax with a reusable packaging distribution system that enables families to buy the exact quantity of products they need at bulk prices. Algramo is honored to bring together brands, retailers and packaging producers to work towards catalyzing reusable packaging on a globally significant scale to keep packaging in the economy and out of the environment. Learn more here.

About Closed Loop Partners
Closed Loop Partners is a New York based investment firm comprised of venture capital, growth equity, private equity, project finance and an innovation center focused on building the circular economy. Investors include many of the world’s largest consumer goods companies and family offices interested in investments that provide strong financial returns and tangible social impact. Learn more here.