In a press release published on January 16, 2020, food and beverage company Nestlé announced that it plans to invest up to 2 billion Swiss Francs (~2.07 billion USD) “to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of innovative sustainable packaging solutions.” Nestlé also announced a commitment to reducing its use of virgin plastic by one third within this period. Availability of recycled plastic for food contact materials has been limited by the higher costs in comparison to virgin plastics. “To create a market, Nestlé is therefore committed to sourcing up to 2 million metric tons of food-grade recycled plastics and allocating more than CHF 1.5 billion to pay a premium for these materials between now and 2025.” The investment follows the company’s pledge made in 2018 to achieve 100% recyclable or reusable packaging for its products by 2025 (FPF reported).

The company also announced the launch of a 250 million Swiss Franc venture fund to support start-up companies developing innovative packaging. This, the company says, will complement its own internal research being run by its Institute of Packaging Sciences (FPF reported).

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Nestlé (January 16, 2020). “Nestlé creates market for food-grade recycled plastics, launches fund to boost packaging innovation.”

Jordan Davidson (January 17, 2020). “Nestlé to Invest $2 Billion for Recycled Plastic Packaging.” EcoWatch

Emanuela Barbiroglio (January 16, 2020). “Nestlé Wants To Take A Break From Virgin Plastics.” Forbes

Erin Sloan (January 16, 2020). “Nestlé invests in food-grade recycled packaging.” PlasticsNews

Lillianna Byington (January 17, 2020). “Nestlé to invest up to $2B in sustainable packaging.” Food Dive

Saabira Chaudhuri (January 16, 2020). “Nestlé Tries to Tackle Big Food’s Plastic Problem.” Wall Street Journal