McDonald’s and Starbucks pour millions into eco-friendly cup hunt

McDonald’s and Starbucks pour millions into eco-friendly cup hunt (FT)

• McDonald’s and Starbucks have been investing in eco-friendly packaging through their R&D budget as well as their partnership with Closed Loop Partners, which pursues sustainable investments.
• As part of this broader project, six sustainable packaging businesses recently pitched their products before the two chains and venture investors.
• Fast-food companies are struggling to find a scalable sustainable solution, with cups remaining one of the largest environmental challenges.

Analysis and Comments

• While acknowledging the need for change, it is important to understand the technical challenges being faced in finding cost effective replacements for takeaway coffee cups. Liquid, especially hot liquid, and cups that break down easily do not make a good combination.
• As the report describes, one set of solutions is around cups that are reusable, but it is hard to see this being anything more than a partial solution.
• One technical solution that has potential is the work being undertaken by Carlsberg to produce a paper based beer bottle.
• The development work on this is being advanced by Paboco – which is a joint venture between paper packaging material developer BillerudKorsnäs and bottle manufacturing specialist Alpla (grown from the start-up and innovation expert EcoXpac).
• According to press releases, Coca-Cola & Pernod will also shortly be joining the initiative.