Transforming the future of reusable packaging

Q&A with Alessandro Marchiaro, co-founder of circolution.

Reusable food packaging pioneer and a winner of Amcor’s Lift-Off program, circolution, is expanding the deposit return system from beverages to pre-packed retail products with its “packaging as a service” model for reusable containers across multiple materials.

circolution’s model centers on renting out standardized white-label food containers that can be used over and over again. For example, a coffee roasting company renting circolution containers would fill them with coffee beans, apply their own label and then distribute the branded containers for placement on supermarket shelves. When a coffee drinker buys and eventually uses up the beans, they could conveniently return the empty container to existing deposit machines available in many European Union supermarkets. From there, circolution collects the empty containers for washing, drying, inspection and quality control, ensuring they are ready for a new cycle. Then the process starts over again.

In addition to offering smart reusable containers in various materials, shapes and sizes optimized for different product categories, circolution manages the entire supply chain, including warehousing, transportation, cleaning and inspection of the containers to ensure a smooth process. This innovative approach not only simplifies logistics, but can also reduce the carbon footprint compared to non-reusable packaging.

Alessandro shares more about circolution’s journey in this Q&A.

How did circolution go from a concept to where it is today?

Our journey started in late 2019 as part of Futury, a Frankfurt-based incubation program. The idea came from the desire to develop a solution that addresses the problem of packaging waste, especially in the fast-moving consumer goods sector.

Inspired by Germany’s bottle deposit system, the world’s largest circular economy system since the 1950s, we understand that the entire supply chain benefits from reusable solutions, including businesses and the environment. Our ambition was to expand beyond beverages into other product categories. We have progressed from a purely conceptual phase through prototyping, customer testing, acquisition, market validation and more.

Are there common misconceptions about packaging as a service?

Yes, definitely. Here are a few examples of common misconceptions:

• Perceived cost: Many people think that packaging as a service is a lot more expensive than traditional packaging methods, but in reality, it can often be more cost-effective due to reduced material waste and improved efficiency.
• Lack of customization: Some may believe that packaging as a service offers limited customization options, but in fact, in most cases it actually offers a wide range of customizable solutions tailored to each client's specific needs.
• Quality concerns: There may be concerns about the quality of packaging serviced, but this is not the case. High-quality materials and production standards meet the same industry requirements as traditional packaging methods, if not higher ones, due to more strict inspection and control processes.

“Reusable packaging is a key part of a circular economy for plastic. It has the potential to address plastic pollution and bring significant business benefits, such as improved brand loyalty, better user experience and lower costs. A shift from single-use packaging to reusables is one of the key tenets of a circular economy for plastics because it has the potential to eliminate waste and plastic pollution and keep packaging in high value use.”
— The Ellen McArthur Foundation

What considerations are there to expanding your packaging-as-a-service model geographically?

Our solution is designed to fit existing infrastructure and scaled supply chains. For instance, our containers can be returned at existing deposit machines, which are not only available in Germany, but also in many other European countries. However, to adapt to emerging markets, we may need to follow a less automated approach compared to countries where the infrastructure is already in place. As an example, we might need to implement manual returns processes if deposit machines are not yet available.

Additionally, our model relies on reusable packaging systems and reusable supply chains. Fortunately, logistical companies and industrial washing facilities are widely available globally. Of course, there will be minor adaptations depending on the geographical location and available infrastructure to ensure the system scales appropriately and meets the required standards.

By leveraging existing resources and adapting to local conditions, we aim to bring circolution’s innovative packaging solutions to consumers worldwide.

Alessandro explains how circolution worked with Amcor to introduce recyclable AmFoil™ AluFix® peelable can lidding for their reusable coffee, cacao and powder containers. The recycle-ready lids offer effortless opening for the consumer, and high-barrier properties for product freshness and aroma preservation.

How has circolution benefited from being an Amcor Lift-Off winner?

Winning the Amcor Lift-Off program has proven to be extremely valuable to circolution. While the funding significantly supported our growth, the real game changer has been accessing Amcor’s expertise and vast network of partners. This partnership has opened many doors and enabled us to co-develop innovative technology for our reusable containers, making them the first on the market to meet the same shelf life as single-use packaging. We’re excited about the future possibilities this collaboration will bring.

What would you like to say to anyone who is interested in driving a more sustainable future?

Systemic change is achievable. I truly believe in that. Together, we can create a more sustainable future. If you are passionate about the circular economy, sustainability, reusable packaging, I invite you to join us on this journey.

Learn more about Amcor Lift-Off
Learn more about circolution