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.

Austin, Texas (August 6)- Balcones Resources, an Austin-based environmental services company, backed by leading circular economy investment firm Closed Loop Partners, announced today the acquisition of Single Stream Recyclers (SSR), Florida’s first artificial intelligence- (AI-) powered recycling facility based in Sarasota, Florida. This represents the growing footprint of best-in-class recycling facilities in the South focused on updating, optimizing and reinvigorating recycling infrastructure in the United States to keep valuable materials – paper, plastics, and metals – in manufacturing supply chains.

“Bringing Single Stream Recyclers into the Balcones orbit moves us several leaps forward in our shared vision to scale modern, innovative recycling infrastructure to build circular supply chains. The energy, integrity, and expertise that SSR’s operators bring to the table will only enhance our playbook and bring our specific level of excellence to more markets,” said Joaquin Mariel, COO of Balcones Resources.

Single Stream Recyclers focuses on processing recyclables from residential and commercial single-stream programs within the Florida market. The company is on the forefront of modernizing recycling by pioneering advanced technologies, including AI, robotics and optical sorters. The facility currently has 14 robots installed, using the AMP Robotics system, to increase the efficiency of sorting and the quality of recycled materials; in turn transforming the economics of the recycling system.

John Hansen and Eric Konik, founders of SSR and industry veterans, have been working together since 2006 to modernize the recycling industry. They have more than 50 years of combined experience in recycling, with a deep expertise in building and operating best in class facilities that create bales of commodities ready to go back into packaging and product supply chains. They are known for their successful hands-on approach to growing recycling facilities, with expertise and insight into how each division of an organization functions together.

“We built SSR as we saw a huge need for improved recycling infrastructure with more efficient processing capabilities. With the growing demand from companies for high quality recycled content, it is time to build the materials recovery facilities of the future that will be the hubs of these supply chains. In partnership with our friends at Balcones and Closed Loop Partners, we can scale the systems needed to realize that circular vision,” said John Hansen, Co-founder of SSR.

Balcones Resources is a best-in-class recycling and resource management company that has been in business for more than 25 years, handling commercial and residential recycling, among other services in Texas and Arkansas. Balcones was looking for a partner that would bring the same level of operational excellence and long-term relationships to help expand into new markets.

“Single Stream Recyclers is a valued community partner and has the kind of experience and operational knowledge that aligns with our organization’s management team. Together we will be able to offer state-of-the-art equipment and innovative technology that will help us continue to revolutionize the recycling industry,” said Kerry Getter, Chairman and CEO of Balcones Resources.

This will be Balcones’ first acquisition since Closed Loop Partners obtained a majority stake in the company in 2019. The purchase of Single Stream Recyclers is part of Balcones’ strategy to scale recycling across the United States and provide new opportunities and further sustainability initiatives for their employees, customers, and investors.

“To scale the new economic model of the future – the circular economy – we need partners committed to building models that efficiently return high value recycled commodities back into products and packaging. With Balcones Resources and Single Stream Recyclers joining forces, alongside our broad network of engaged investors, including corporate investors like Microsoft, institutional investors and family offices, together we can eliminate waste, reduce costs and increase efficiencies,” said Maite Quinn, Managing Director, Closed Loop Partners.

About Balcones Resources
Balcones Resources began operations in 1994 and has grown into a nationally recognized firm and one of the top 50 recyclers in North America. With more than 200 employees across its three locations, Balcones is a recycling partner for municipalities, multi-tenant facilities, corporate campuses, manufacturing facilities and distribution centers. For more information on Balcones Resources and its environmental services, visit BalconesResources.com.

About Single Stream Recyclers, LLC
Single Stream Recyclers is a materials recovery facility located in Sarasota, Florida. They process materials from all over the west coast of Florida. The facility sorts, bales and ships aluminum, cardboard, food and beverage cartons, glass, paper, plastics, metal and other recyclables from residential curbside and commercial recycling collection. SSR is heavily invested in technology to help create the best possible end products and reduce contamination as well as residue. Learn more at www.singlestreamrecyclers.com.

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 at www.closedlooppartners.com.

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.