TerraCycle explained

TerraCycle
Type:Privately held company
Industry:Waste management
Foundation:[1]
Founders:Tom Szaky
Jon Beyer
Location City:Trenton, New Jersey
Location Country:U.S.
Locations:21 countries
Key People:Tom Szaky (CEO)
Products:Goods made from recycled products
Services:Recycling
Revenue: $70 million (2023)

TerraCycle is a private U.S.-based recycling business headquartered in Trenton, New Jersey.[2] It primarily runs a volunteer-based recycling platform to collect non-recyclable pre-consumer and post-consumer waste on behalf of corporate donors, municipalities, and individuals to turn it into raw material to be used in new products. TerraCycle also manages Loop, a consumer-products shopping service with reusable packaging.[3]

History

TerraCycle was founded by Tom Szaky and Jon Beyer in the fall of 2001.[4] In 2002, the company bought a US$20,000 continuous-flow composting system invented by Harry Windle of Gainesville, Florida, to take organic waste and have it processed by worms into fertilizer.[5] [6] Initial funding came from family and friends of Szaky and Beyer, as well as awards from business plan competitions.[7] Further funding came from private investors.[7] The first investor was Sumant Sinha, who gave $2,000 in exchange for 1% of the company stock.[8]

The dining halls of Princeton University were the first sources of waste used.[9] Instead of pure fertilizer, TerraCycle sold its products in liquid form upon concluding that liquid fertilizer could have better consumer reception.[9] [10] The original rationale for packing its liquid fertilizer in used plastic bottles was because the company could not afford new ones.[11] Later, the company continued this process and marketed their gardening products as "Waste in Waste". Schools and local organizations collected bottles for TerraCycle in exchange for proceeds in what became known as the "Bottle Brigade".The Coca-Cola Company and PepsiCo both gave TerraCycle a license to use their bottles in TerraCycle products.[12] [13] [14]

In 2004 and 2005, The Home Depot Canada and Wal–Mart Stores Canada began carrying TerraCycle products.[15] During its growth, the company bought an abandoned mansion to house its interns and a warehouse for its fertilizer production and offices.[9] In 2007, TerraCycle developed Brigade and waste collection programs for Honest Tea, Stonyfield Farm, and Kraft Foods. Seth Goldman, founder and CEO of Honest Tea, asked Szaky for a waste program for its Honest Kids brand.[16] As Szaky himself designed sample products for the aluminum-plastic pouches, including pencil pouches and tote bags, Goldman agreed to sponsor the Drink Pouch Brigade.[16] Upon deals with Safeway, Target, and Walgreens to buy the products, TerraCycle acquired approximately 20 million baled juice pouches stored by Encorp in British Columbia, Canada, which contained many Capri-Sun pouches.[16] [15] [17] Kraft granted TerraCycle permission to use Capri-Sun brand pouches in its products,[16] [18] They obtained additional sponsorship for the Drink Pouch Brigade as well.[16] [18] later followed by programs for other Kraft brands.[16] [18]

In 2008, TerraCycle partnered with Target to sell recycled Target plastic shopping bags fused together as reusable bags named "reTotes".[16] At the end of the year, TerraCycle lost $4.5 million. As a result, the company changed its manufacturing processes to use pre-consumer extra and misprinted packaging labels from other companies in its upcycled products.[19] TerraCycle changed to use the majority of its collected post-consumer waste for recycling into plastic molding pellets. Around 2008, it ended its Bottle Brigade program.

TerraCycle launched in the UK in September 2009 as its first market in Europe, and operates in 12 European markets.[20] By 2009, the firm moved away from manufacturing to licensing all of its products.[21] The same year, it outsourced its vermicompost production to worm farmers in North Carolina. In the UK, by 2010 its programmes have diverted over 57 million items of packaging waste from landfill (around the weight of a jumbo jet) while earning over £744,000 for schools, charities and non-profit organisations.[22]

From 2012, the firm and various tobacco companies partnered to launch a widespread collection and recycling system for cigarette butts.[23] The cigarette filters, generally made from cellulose acetate, are refined into pellets that are then used in the production of plastic items such as shipping pallets, benches, and ashtrays.[24] The company promises that the recycled plastic from cigarette filters will only be used in industrial products and not in household plastics, due to exposure to nicotine. Tobacco and paper are composted in this program.[25]

In January 2014, Progressive Waste Solutions announced a 19.99% interest acquisition in TerraCycle Canada to cooperate on recycling initiatives in Canada.[26] In October 2016, TerraCycle and Suez Environment announced that Suez acquired 30% of TerraCycle's European operations to develop collection and recycling programs in Europe.[27] At the World Economic Forum in January 2017, TerraCycle, Procter & Gamble and Suez announced production of the world's first recyclable shampoo bottle made from plastic recovered from beaches, rivers and waterways for the Head & Shoulders brand. The first bottles went on sale in France in June 2017 and in October the project was recognized by the United Nations as a winner of a Momentum For Change Lighthouse Activities Award.[28] In 2019, TerraCycle announced Loop, a closed-loop reusable packaging platform for consumer packaged goods companies.[29] The system ships food, household cleaning, personal care products in a reusable padded container. The products are delivered in reusable containers, which are returned to the Loop tote, picked up by Loop, cleaned, refilled and reused.[30]

Products and services

TerraCycle has created approximately 200 products, all of which are licensed to manufacturers, instead of being manufactured by TerraCycle itself.[31]

It began with the production of fertilizer made from vermicompost, which is produced by feeding organic waste to worms. The worms' excrement was then liquefied into "compost tea" by mixing it with air and warm water in large vats.[32] It was packaged in reused plastic water bottles.[33] The spray bottle tops were rejects from other companies.[7] Residue left over from the vats was used in potting soil and seed starter products.[34]

The company diversified its production into upcycling around 2007 and began creating products from other waste items such as making coin pouches and tablet cases from retired U.S. Postal Service bags.[35] Various products are produced from pre-consumer waste and post-consumer waste, including messenger and tote bags.[36]

Plastic packaging waste, that is not upcycled, is recycled into a raw material that can be used in plastic products, including playgrounds, plastic lumber, plastic pavers, bike racks, park benches, and garbage and recycling cans.[37] [38]

Its recycling programs enable individuals or groups to collect specified waste materials in exchange for donations to a selected cause or school.[39] [18] Users sign up via the firm's website,[18] and shipping and donation costs are generally covered by a sponsoring company related to the specified recycling program.[31] [35] The waste materials, typically non-recyclable, are either refurbished, upcycled, or recycled.[40] [41]

Corporate affairs

Headquarters

TerraCycle's main headquarters are located in Trenton, New Jersey.[2] The office was originally a abandoned warehouse for a newspaper distribution facility.[42] [43] The headquarters were purchased by TerraCycle in the summer of 2004.[44] Its renovations were done by TerraCycle's internal design team, led by employee Tiffany Threadgould,[45] and its walls are painted annually by local graffiti artists at "Graffiti Jams".[31] [18]

Marketing

The TerraCycle company logo is a green infinity symbol with two arrows pointed toward one another. Szaky designed the logo during a lecture at Princeton.[21] In 2007, Scotts Miracle-Gro Company charged the company with false advertising and trade dress violations in TerraCycle's choice of colors, claiming they were similar to its own products.[42] [33] [46] In response, TerraCycle started a media campaign known as "suedbyscotts.com".[47] [48] Scotts dropped the case after TerraCycle agreed to recolor its packaging to orange and green, and remove pictures of fruits and vegetables on its labels.[49]

TerraCycle was the subject of a National Geographic reality television series named Garbage Moguls. The pilot premiered on Earth Day, April 22, 2009.[16] The show featured the company's team searching for solutions to various waste streams.[16] [35] In 2014, Pivot launched Human Resources, a reality TV series providing a behind-the-scenes look at day-to-day operations at TerraCycle's headquarters.[50] It also partnered with game developer Guerillapps to make a Facebook-based flash game known as Trash Tycoon.[51] [52]

In 2021, TerraCycle agreed to update its labeling after settling a lawsuit accusing it of misleading product labeling. It was alleged that the company did not disclose the limits to the quantity of packaging that would be recycled.[53]

Notes and References

  1. Web site: Company Overview of TerraCycle Inc. https://archive.today/20130725152539/http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=11882957. dead. July 25, 2013. Bloomberg Businessweek. 25 July 2013.
  2. Web site: Trenton-based TerraCycle is making sustainability a mainstream movement. Jersey's Best. 23 April 2020 . 2 March 2021. 23 July 2020. https://web.archive.org/web/20200723020239/https://www.jerseysbest.com/trenton-based-terracycle-is-making-sustainability-a-mainstream-movement/. live.
  3. Web site: TerraCycle announces $25M investment into Loop Global Holdings. Waste Today. 2 March 2021. 14 December 2020. https://web.archive.org/web/20201214130815/https://www.wastetodaymagazine.com/article/terracycle-loop-investment-round/. live.
  4. Web site: The Coolest Little Start-Up in America. Inc. Magazine. 30 March 2014. Burlingham. Bo. 10 May 2015. https://web.archive.org/web/20150510212814/http://www.inc.com/magazine/20060701/coolest-startup.html. live.
  5. News: Jo Piazza . Garbage In, Garbage Out. A Princeton Success Story . . July 28, 2002 . 14 April 2010.
  6. Web site: Where there's muck there's brass. Business Life (British Airways). Ideas. 3 September 2010. 10 April 2014. Read, Stuart. Wiltbank, Robert. 15 April 2015. https://web.archive.org/web/20150415070348/http://businesslife.ba.com/Ideas/Features/Where-theres-dirt-theres-brass.html. live.
  7. Web site: But the Employees Are Really Spineless. The New York Times Company. 10 April 2005. 7 April 2014. Strauss, Robert. 8 April 2014. https://web.archive.org/web/20140408210748/http://query.nytimes.com/gst/fullpage.html?res=9F06E0DF173EF933A25757C0A9639C8B63. live.
  8. Web site: Where There's Muck, There's Brass. Immpreneur.com (F. Peacock Enterprises, LLC). 10 April 2014. Field, Anne. 13 April 2014. https://web.archive.org/web/20140413132102/http://immpreneur.com/stories/terracycle/. live.
  9. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 2020-11-21.
  10. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 40–41. 2020-11-21.
  11. CEO Tom Szaky (Interviewee). The duke of rubbish. News clip. Fortune Small Business. 22 December 2009. 3 August 2020. 1 November 2019. https://web.archive.org/web/20191101142929/https://money.cnn.com/video/smallbusiness/2009/03/25/fsb.terracycle.trash.smb/. live.
  12. Web site: The Incredible Story Of How TerraCycle CEO Tom Szaky Became A Garbage Mogul. Business Insider. 29 August 2011. 10 April 2014. Bhasin, Kim. 13 April 2014. https://web.archive.org/web/20140413140749/http://www.businessinsider.com/exclusive-tom-szaky-terracycle-interview-2011-8. live.
  13. Web site: Terracycle: Building a Small Empire on a Foundation of Compost. Advertising Age. 22 October 2011. 11 April 2014. Neff, Jack. 28 May 2015. https://web.archive.org/web/20150528183727/http://adage.com/article/special-report-ana-annual-meeting/terracyle-building-a-small-empire-a-foundation-compost/230598/. live.
  14. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 95. 2020-11-21.
  15. Web site: From Refuse to Riches. The Reader's Digest Association, Inc. Reader's Digest Asia. 26 April 2012. 10 April 2014. Fenn, Donna . https://web.archive.org/web/20100715101724/https://www.rdasia.com/From_Refuse_to_Riches . 2010-07-15 . dead.
  16. Web site: Garbage mogul makes millions from trash. Cable News Network. CNN Money. 2009. 7 April 2014. Feldman, Loren. 16 April 2021. https://web.archive.org/web/20210416015240/https://money.cnn.com/2009/03/24/smallbusiness/trash_talker_terracycle.fsb/index.htm. live.
  17. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 135–137. 2020-11-21.
  18. Web site: Greening Hollywood: TerraCycle's Big Green Business. TheHuffingtonPost.com, Inc.. Huffington Post: Green. 25 December 2008. 7 April 2014. Donner, Paige. 8 April 2014. https://web.archive.org/web/20140408225743/http://www.huffingtonpost.com/paige-donner/greening-hollywood-terrac_b_151800.html. live.
  19. Web site: Start-Up Seeks Profits in Mounds of Garbage. The Wall Street Journal. The Wall Street Journal Online: Small Business. 7 April 2014. Brat, Ilan.
  20. Web site: Hasbro brings its toy and games recycling programme to the UK with TerraCycle. Toy News Online. 2 March 2021. 12 April 2021. https://web.archive.org/web/20210412114830/https://www.toynews-online.biz/2020/06/22/hasbro-brings-its-toy-and-games-recycling-programme-to-the-uk-with-terracycle/. live.
  21. Web site: Alchemist of all garbage. https://ghostarchive.org/archive/20221211231225/https://www.ft.com/content/d9fdcf0c-ffc6-11de-921f-00144feabdc0. 11 December 2022. subscription. live. The Financial Times Limited. ft.com. 12 January 2010. 7 April 2014. Birchall, Jonathan.
  22. Web site: Eliminating the Idea of Waste: Interview with Stephen Clarke (TerraCycle). says. Robert Johnston. 2019-04-03. eco-. en-US. 2019-09-03. 2019-09-04. https://web.archive.org/web/20190904083704/https://www.beeco.green/blog/eliminating-the-idea-of-waste-interview-with-stephen-clarke-terracycle/. live.
  23. Web site: TerraCycle to recycle cigarette butts. Plastics News. November 16, 2012. 25 July 2013. Wright, Shawn. 8 April 2014. https://web.archive.org/web/20140408212126/http://www.plasticsnews.com/article/20121116/NEWS/311169984/terracycle-to-recycle-cigarette-butts. live.
  24. Web site: Trenton-based company TerraCycle develops a way to recycle cigarette butts (with video). Times of Trenton. 13 December 2012. 8 April 2014. Brill, Emily. 11 May 2015. https://web.archive.org/web/20150511003944/http://www.nj.com/mercer/index.ssf/2012/12/trenton-based_company_terracyc.html. live.
  25. Web site: Australia gets cigarette butt recycle scheme with TerraCycle. Fairfax Media. Brisbanetimes.com.au. 4 March 2014. 7 April 2014. Smith, Bridie. 19 April 2014. https://web.archive.org/web/20140419025358/http://www.brisbanetimes.com.au/national/australia-gets-cigarette-butt-recycle-scheme-with-terracycle-20140303-340jt.html. live.
  26. REPEAT-Media Advisory: Progressive Waste Solutions and TerraCycle to Announce Recycling Partnership. Market Wired.com. 29 January 2014. 6 April 2014. 7 April 2014. https://web.archive.org/web/20140407092732/http://www.marketwired.com/press-release/repeat-media-advisory-progressive-waste-solutions-terracycle-announce-recycling-partnership-1873528.htm. live.
  27. SUEZ and TerraCycle join forces in Europe to develop innovative recycling solutions. 2016-12-13. 2016-12-21. https://web.archive.org/web/20161221003335/http://www.suez-environnement.com/news/press-releases/suez-and-terracycle-join-forces-in-europe-to-develop-innovative-recycling-solutions. live.
  28. Web site: UN recognizes P&G recyclable bottle made of beach plastic. Plastics Today. 2 March 2021. 20 September 2020. https://web.archive.org/web/20200920140636/https://www.plasticstoday.com/packaging/un-recognizes-pg-recyclable-bottle-made-beach-plastic. live.
  29. News: TerraCycle to unveil 'Loop'. Marie Mohan. Anne. 17 July 2018. Greener Package. 28 July 2018. 16 April 2019. https://web.archive.org/web/20190416150819/https://www.greenerpackage.com/recycling/terracycle_unveil_%E2%80%98loop%E2%80%99. dead.
  30. Web site: Loop. loopstore.com. Sep 18, 2020. March 30, 2019. https://web.archive.org/web/20190330102410/https://loopstore.com/. live.
  31. Web site: TerraCycle: The Google of garbage?. Telegraph Media Group Limited. telegraph.co.uk. 17 June 2010. 7 April 2014. Young, Lucie.
  32. Web site: Splendor in the Grass. New Jersey Monthly. Living: People. 20 December 2007. 6 April 2014. McDonald, Natalie. 8 April 2014. https://web.archive.org/web/20140408033513/http://njmonthly.com/articles/lifestyle/people/splendor_in_the_grass.html. live.
  33. News: Rob Walker . Rob Walker (journalist) . The Worm Turns . . May 20, 2007 . 2010-04-14 . 2009-04-11 . https://web.archive.org/web/20090411094509/http://www.nytimes.com/2007/05/20/magazine/20wwln-consumed-t.html . live .
  34. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 115. 2020-11-21.
  35. News: Lewis: Mogul aims to make millions from garbage. The Denver Post: Business. 4 March 2009. The Denver Post. 10 April 2014. Lewis, Al. 13 April 2014. https://web.archive.org/web/20140413141634/http://www.denverpost.com/business/ci_11828569. live.
  36. Web site: TerraCycle Fashions a New Life For Old Wrappers. The Wall Street Journal. 1 July 2008. 10 April 2014. Bounds, Gwendolyn.
  37. News: Making Design Out of Rubbish. The New York Times. 10 August 2011. 10 April 2014. Green, Penelope. 17 April 2014. https://web.archive.org/web/20140417103445/http://www.nytimes.com/2011/08/11/garden/terracycle-makes-design-out-of-rubbish.html?pagewanted=all&_r=0. live.
  38. Web site: It's A Wrap: TerraCycle and Mars Co-Produce Plan to Stop Flow of Candy Packaging Into Landfills. LA Weekly, LP. 2 November 2012. 10 April 2014. Dwass, Emily. 13 April 2014. https://web.archive.org/web/20140413142102/http://www.laweekly.com/squidink/2012/11/02/its-a-wrap-terracycle-and-mars-co-produce-plan-to-stop-flow-of-candy-packaging-into-landfills. live.
  39. Web site: One man's rubbish is Terracycle's bounty. CNN Money (Cable News Network). Inner City 100. 13 May 2011. 6 April 2014. Shambora, Jessica. 13 March 2014. https://web.archive.org/web/20140313032139/http://money.cnn.com/2011/05/11/smallbusiness/terracycle_trash_cash_inner_city_100.fortune/index.htm. live.
  40. Tom Szaky (Interviewee). How I Did It: TerraCycle. News clip. Huffington Post. 30 July 2013. 7 April 2014. 8 April 2014. https://web.archive.org/web/20140408230122/http://on.aol.com/video/how-i-did-it--terracycle-517872307. live.
  41. Web site: TerraCycle Recycles The 'Non-Recyclable' - Cigarette Butts, Candy Wrappers And Its Own Profits. TheHuffingtonPost.com, Inc.. Huffington Post: Small Business. 30 July 2013. 7 April 2014. Bradford, Harry. 10 July 2014. https://web.archive.org/web/20140710122354/http://www.huffingtonpost.com/2013/07/30/terracycle_n_3678691.html. live.
  42. Web site: A dirty business. The Denver Post. 8 May 2007. 10 April 2014. Lewis, Al. 29 January 2015. https://web.archive.org/web/20150129021304/http://www.denverpost.com/search/ci_5841001. live.
  43. Web site: A Recycling Company's New Office Reflects Its Ethic. The New York Times Company. You're the Boss Small Business Blogs. 10 October 2011. 6 April 2014. Szaky, Tom. 8 April 2014. https://web.archive.org/web/20140408223357/http://boss.blogs.nytimes.com/2011/10/10/as-our-company-grows-up-does-our-office-space-have-to-do-the-same/#more-48983. live.
  44. Book: Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. Penguin Group. Szaky, Tom. 2013. New York, New York, USA. 978-1-59184-595-9. 81. 2020-11-21.
  45. Web site: PHOTOS: Inside TerraCycle's Incredible 99% Recycled Office. Business Insider.com. 25 August 2011. 6 April 2014. Bhasin, Kim. 7 April 2014. https://web.archive.org/web/20140407093604/http://www.businessinsider.com/terracycle-office-tour-2011-8?op=1. live.
  46. Web site: Hofman. Mike. Legal Lemons, PR Lemonade. Inc. Magazine. 30 March 2014.
  47. Web site: Loten. Angus. After a Good Fight, David Forced to Settle with Goliath. Inc. Magazine. 30 March 2014. 12 October 2007. https://web.archive.org/web/20071012174405/http://www.inc.com/news/articles/200709/terracycle.html. live.
  48. Web site: Talk Show. https://archive.today/20140406231227/http://www.businessweek.com/stories/2007-04-22/talk-show. dead. April 6, 2014. Bloomberg L.P.. BloombergBusinessweek Magazine. 22 April 2007. 6 April 2014.
  49. Web site: Fertilizer Foes Settle Fight. Chief Executive Group, LLC.. 4 October 2007. 10 April 2014. Shirazi, Fayazuddin A.. 13 April 2014. https://web.archive.org/web/20140413130611/http://chiefexecutive.net/fertilizer-foes-settle-fight-2. live.
  50. Web site: Hey Pivot fans, thanks for watching!. TakePart. 27 March 2013 . Sep 18, 2020. February 16, 2020. https://web.archive.org/web/20200216055200/http://www.takepart.com/pivot/. live.
  51. Web site: TerraCycle launches waste-to-profit Facebook game. CNET. 7 September 2011. 10 April 2014. Lombardi, Candace. 13 April 2014. https://web.archive.org/web/20140413142148/http://www.cnet.com/news/terracycle-launches-waste-to-profit-facebook-game/. live.
  52. News: Recycling the world's trash into cash. CNN. 10 April 2014. Allen, Natalie. Knight, Matthew. 13 April 2014. https://web.archive.org/web/20140413131620/http://www.cnn.com/2011/10/10/world/americas/terracycle-recycling-waste-szaky/. live.
  53. Web site: Segran . Elizabeth . Recycling in the U.S. is an absolute mess. This lawsuit shows just how hard it is . . 1 June 2022 . 16 November 2021.

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