Top-of-the-line liquor bottles vary in shape, design and color to catch the eye behind most bars, but Diageo is ditching them to explore reusable packaging and distribution possibilities .
In partnership with circular economy startup ecoSPIRITS, the drinks giant will offer Gordon's Gin, Captain Morgan Rum and Smirnoff Vodka in refillable 4.5-litre containers in 18 markets over the next three years.
Each ecoSPIRITS “ecoTOTE” is 4.5 liter glass bottle wrapped in plastic With inner aluminum frame. According to ecoSPIRITS, the container is built to withstand 150 refills and has a lower carbon intensity than a comparable number of bottles that are replaced after six refills at the bar. The system is envisioned to replace 900 typical 750-milliliter glass bottles typically used in restaurants and bars over the lifetime of one ecoSPIRITS tote. The company estimates that its tote bags have a 60-90% lower CO2 footprint than traditional bar bottles.
In a statement, Euan Andreu, Diageo's CSO and President of Global Supply Chain and Procurement, said: „Pubs and bars can now easily package reusable spirits, reducing both carbon and costs. They will benefit from this,” he said.
Glass bottles account for 20% of CO2 in the spirits business
Packaging accounts for a significant portion of carbon emissions in the production and distribution of spirits. The commonly used 750-milliliter glass bottles account for 20 percent of the carbon footprint of corn-based spirits, second only to the 36 percent of the distillation process. 2012 Beverage Industry Environment Roundtable. Warehousing, corn production and transportation followed with about 10% each.
![Image showing EcoTote glass removed from plastic housing. Credit: EcoSpirits](https://www.greenbiz.com/sites/default/files/2023-12/ecoSpiritsEcoPlant.png)
![Image showing EcoTote glass removed from plastic housing. Credit: EcoSpirits](https://www.greenbiz.com/sites/default/files/2023-12/ecoSpiritsEcoPlant.png)
Glass bottles can be recycled over and over again. In the United States, 32% of glass containers are recycled. According to the EPA. In contrast, in the EU, 80% of glass bottles were collected for recycling in 2021. According to the “Close the Glass Loop” partnership.
The production of new glass is often continuous and carbon-intensive, from mining the silica to melting the glass in furnaces powered by fuel oil or natural gas at temperatures as high as 3,000 degrees Fahrenheit. Masu. Glass production will emit 95 million tons of carbon dioxide in 2022. According to the Bureau of Statistics.
$10 million in Series A funding
In 2020, Diageo set a 10-year Society 2030 target to reach net zero carbon and 100 per cent renewable direct energy, and halve Scope 3 carbon emissions.
Diageo's partnership with EcoSpirits began two years ago in an effort to identify startups addressing the industry's sustainability challenges, said Deb Kaldor, director of global marketing and sustainability at Diageo. That's what it means.
Singapore-based EcoSPIRITS was founded in 2018 and raised $10 million in Series A funding led by closed-loop partners in May.
„We recognized the company's potential to reduce the use of glass bottles and ultimately reduce the carbon footprint of the supply chain by changing the way spirits are delivered to bars and restaurants.“ Kaldor said in an email.
“For a circular economy to be achieved globally, innovators like ecoSPIRITS need the support of industry leaders like Diageo who are facilitating the transition from linear to circular packaging,” said Gaby. This was stated in a press release in late May.
Reduce 95% of bottles from your bar business
Diageo and EcoSpirits have been supplying Smirnoff EcoTotes to 38 bars, restaurants and hotels in Bali and Jakarta since 2022. From ongoing trials in Indonesia, Diageo estimated that the circular delivery method could reduce the use of glass bottles by 95 per cent, helping to reduce carbon emissions from transport and distribution.
![Illustration of the ecoTOTE Spirits On Tap System.](https://www.greenbiz.com/sites/default/files/2023-12/eS%20Smirnoff-SmartPour-2.0S-1470.png)
![Illustration of the ecoTOTE Spirits On Tap System.](https://www.greenbiz.com/sites/default/files/2023-12/eS%20Smirnoff-SmartPour-2.0S-1470.png)
EcoSPIRITS claims the initial success of a pilot to prove the commercial feasibility of circular packaging in Indonesia.
“We have already seen positive effects from small-scale trials and look forward to rolling it out to further markets as we continue to develop towards the Society 2030 goals,” Kaldor said. . “By deploying this to more markets, we can build a broader evidence base, develop systems and benefit the entire supply chain.”
Among the projects supporting Diageo's Scope 3 targets for 2030 was an initiative announced in August to begin production of Smirnoff, Captain Morgan and Tanqueray bottles in 2027. UK Elton net zero reactor. The furnace is fueled by hydrogen and green energy. Glass manufacturer Encirc, which aims to reduce CO2 emissions typical of glass bottle production by 90%. Diageo aims to offset the remaining 10% of its emissions through carbon capture.
How to use
Once the ecoTOTE is empty, ecoSPIRITS transports the box to the nearest of 30 regional ecoPLANT hubs, typically within 500 miles. The totes are then cleaned, refilled and redistributed.
“ecoPLANT is at the heart of the entire ecoSPIRITS system because it allows us to reach small markets like the Cayman Islands and the Dominican Republic, or large markets like the UK, France and Italy on a closed-loop basis. Because we can provide services,” he said. Paul Gabie, CEO and Co-Founder of EcoSpirits.
In early November, the company launched in the United States. Las Vegasin partnership with South Point Hotel Casino & Spa.
August, ecoSPIRITS package Bacardi Rum Comes to Carnival Cruise Line Ships.