Ocado Retail and recycling technology company Polytag have announced what they claim is a world-first trial to test the viability of a Digital Deposit Return Scheme (DDRS) in the UK.
The trial will examine the feasibility of a key component of a DDRS – the application of ‘unique-every-time’ QR codes to packaging, which will be applied to Ocado Retail’s recyclable two-pint and four-pint milk bottles over the course of the next 12 weeks.
This will enable households to scan their discarded packaging from home before recycling it and redeem their deposit through a mobile app when legislation is finally enforced. Until now, it has only been possible to print ‘unique-every-time’ QR codes using digital label printing at significantly reduced speeds and far higher costs.
Upon scanning the QR codes, consumers will also receive instructions and a call-to-action for shoppers to simplify the recycling process.
English, Welsh and Northern Irish governments are expected to announce the response to a DRS consultation in the coming months, with increasing pressure on the devolved administrations to consider a complementary digital solution.
This follows criticism of the Scottish DRS rollout. Due to go live in August 2023, the scheme, which is deploying the reverse vending machine (RVM) model, resulted in a legal challenge by the Scottish Grocers’ Federation, who argued the costs were unfairly high for smaller retailers. On 7 November, it was announced the scheme would be scaled back amid similar concerns.
A recent report from the independent environmental consultancy, Resource Futures, estimated that an all-in DDRS would result in cost savings of £3.4bn over an 11-year period, compared to the RVM model, largely thanks to eliminating the need for the nationwide installation of reverse vending machines. A digital scheme is also likely to be less carbon-intensive, mainly due to not installing RVMs across the country and negating the need to drive to collection points.
Polytag’s QR code and app-based mobile phone technology means recyclable goods can be tracked and traced through the circular economy, providing stakeholders with never-before-seen packaging lifecycle information, and opportunities to collaborate through the use of global, interoperable data standards.
Alice Rackley, CEO of Polytag, commented: “This world-first trial will have game-changing implications for recycling in this country. A successful trial, supported by the world’s largest online-only supermarket, Ocado Retail, will be a significant step towards the implementation of a DDRS in this country that will provide a much more convenient and environmentally friendly way for households to recover their deposits. Not only that, brands will be presented with radical new marketing tools and a wealth of data on how consumers are recycling their products.”
Additionally, the trial is expected to provide brands and retailers with a direct-to-consumers marketing channel, on a national scale, enabling them to tell their sustainability stories to increasingly eco-conscious shoppers. Upon scanning the QR code, consumers access landing pages – built by Ocado Retail – to share customised campaigns and links out to relevant content and reward schemes.
Participants will be invited to take part in a survey at the start and the end of the trial to track their recycling habits over the course of the 12 weeks and gain their thoughts on Ocado Retail’s overall sustainability strategy.
Laura Fernandez, Senior Packaging and Sustainability Manager at Ocado Retail, said: “As the world’s largest online supermarket, we champion the use of innovative technology as we strive to become the UK’s most sustainable grocery retailer. Polytag’s digital platform offers plenty of environmental and economic benefits for retailers and customers alike – it’s easy to use and when used at scale, could have a hugely positive impact on the nation’s deposit return scheme. We’re looking forward to seeing how our customers respond to the trial and how many would redeem their deposit at home.”
NAM Implications:
- Given that the real payoff for Ocado has to be selling on their know-how…
- Every new activity/process builds their expertise.
- Watch this space…
