Beverage company Coca-Cola (NYSE: KO) is launching a first-of-its-kind closed loop retail equipment program.
The company is asking retailers to return or recycle new in-store beverage shelves in an effort to increase the overall sustainability of its operations.
Coca-cola is developing a family of 100% recyclable merchandise display racks for use in grocery and convenience stores in the U.S. The first "Give It Back" racks are free-standing units made of recyclable corrugated cardboard and designed to communicate sustainability to shoppers, Coca-Cola said.
According to Coca-Cola, the racks are the first step in an industry-first initiative to build a closed-loop retail equipment program. The company will create recyclable in-store merchandise racks and then recover, reuse and/or recycle the displays.
"By creating a 100 percent recyclable merchandise display rack, Coca-Cola is asking grocery and convenience stores to join our sustainability efforts by returning or recycling our racks, just like we ask consumers to return or recycle our product packaging," said Gary Wygant, Vice President, Business Development, Coca-Cola Recycling.
Initially being tested in select markets, the new stand-alone racks are expected to become widely available in late 2011. When fully implemented across Coca-Cola’s U.S. operations, this closed-loop approach to display racks is expected to be both the first and the largest closed-loop merchandise display rack recovery program in the U.S. consumer packaged goods industry.
The corrugate merchandise racks are the first in a family of recyclable displays that will include a rack made entirely of recycled PET plastic.
Implementing the closed-loop process and utilizing recyclable materials will improve the chances that Coca-Cola’s displays do not end up in a landfill. Coca-Cola said currently it is diverting, on average, more than 90%of its waste at its primary U.S. manufacturing facilities.
"With the GIVE IT BACK rack, we’re helping people feel good about their purchasing decisions as we work towards our overall sustainability goals," said Bruce Karas, Director, Sustainability and Environment, Coca-Cola Refreshments.
According to research by the Hartman Group, more than 70% of shoppers consider sustainability when making a purchase.
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