Welcome Dansk Retursystem A/S

Agenda for today

Dansk Retursystem Ltd.

Environment

Responsibility

Future

Dansk Retursystem Ltd.

Collect – Count - Sort

Main requirements of the Statutory Order

• Dansk Retursystem A/S is granted exclusive right as administrative and collection company

• Mandatory registration for all suppliers of products on which deposits are payable

• Requirements for a high return percentage and a high quality of the recycling

• Requirements covering marking of all one-way packaging for beer, carbonated soft drinks, alcoholic soft drinks, iced tea, mineral water and ready-to-drink lemonade

• Option for the authorities to purchase or take over the company

The Danish deposit and return system • Danish consumers pay a deposit on

bottles or cans when they buy beer, soft drinks, mineral water, iced tea or ready-to-drink lemonade

• The deposit is refunded when the bottles or cans are returned

• Bottles and cans on which deposits are payable can be taken to a reverse vending machine, or returned to a selling location

• Many stores will also take back bottles and cans on which no deposit is refundable, e.g. products purchased in Germany

• Bottles and cans on which no deposit is refundable can also be taken to a local recycling centre

Background and history

• Established June 2000

• Owned by the breweries – regulated by the Statutory Order

• Board represented by the breweries and the retail trade

• Non-profit organisation

• Turnover around 1,5 billion DKK

• Around 450 permanent employees

• Three departments: I Hedehusene, Løsning og Svenstrup

Return percentage

• Between 2004 and 2013 the market share for one-way

packaging increased from 4 % to 73 %

• In 2013 Danes returned around 950 million empty items of

drinks packaging on which deposits were paid – glass

bottles, plastic bottles, and aluminium cans – that is an

increase of 11,8 % compared to 2012

• In 2013 Dansk Retursystem Ldt. collected enough aluminium

to produce around 400 million new cans

• 89% of all one-way packaging is returned to Dansk

Retursystem Ltd.

Increase of return percentage and market share

• The return percentage has been 89 since 2011 despite an increase in market share

Return percentage one way

Market share one way

Market share refillable

PE

RC

EN

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Collecting, counting and sorting

• Collects bottles and cans free of charge – 3 million every day

• 60-70 vans collects empty bottles and cans at app. 1.000 costumers every day

• Counts all packaging and refunds the deposits paid

• Sorts and separates glass, PET and aluminium, and sends the materials for recycling

• Pays handling fee to stores

• Carries out information campaigns

Nationwide deposit and return system

• Dansk Retursystem Ltd. collects all

over Denmark

• Dansk Retursystem Ltd. has more than

16.000 costumers – retail, trade,

restaurants, institutions offices e.g.

• Consumers can collect refunds on

empty bottles and cans at more than

6.000 different commercial locations in

Denmark

• 3.000 reverse vending machines

installed in stores throughout Denmark

• App. 750 producers and importers

have registered with Dansk

Retursystem Ltd.

Diposit mark – our trademark

A view on Dansk Retursystem Ltd.

Environment

Quality – Recycling – Closed Loop

Taking care of the environment

We want to contribute to a cleaner environment

• Ensuring that as many bottles and cans as possible are returned

• Working to ensure that bottles and cans are recycled as much as possible – bottle to bottle and can to can – closed loop

• Focusing on a high quality in recycling and saving virgin raw material and energy

• Making it as easy as possible to return bottles and cans - for the benefit of all of us

Environmental effect

• Recycling of the empty packaging leads to less use of the natural resources – e.g. oil, gas and metal.

• Producing cans of new aluminum requires 16 times more energy compared to producing from recycled materials

• Decomposing packaging from metal, glass and plastic takes nature up to one million years

• It is possible to produce 9 new cans out of 10 used ones

Non returned packaging HUSK EVA

• There is no detailed surveys about where the app. 10 percent of bottles and cans, which is not returned, end up

o Some end in the garbage and is combusted. This results in melted aluminum in the ovens

o Some end up end up in nature. On the 2014 nationwide rubbish collection, app. 20 percent was of the collected cans was deposit refundable cans

Responsibility

Involvement – Communication –

Active part of the society

Why does it work? • Historical – long-standing tradition for

collecting bottles in Denmark. It is a part of our upbringing

• Responsibility: You behave in an environmentally responsible way

• The Danish system is unified and easy to use

• Drink products sold in Denmark without the deposit mark are liable to confiscation and fines

• There are various ways to return – shops, pantstation and flaskepant.dk

How do we create awareness

The marketing focus on a higher return percentage.

• The good story is about recycling, pure nature, resource use and high quality.

• We have sponsored e.g.:

o World Wide Wonders

o Keep Denmark Tidy

o Flaskepant.dk – web return system

o RUC Case Competition

• Traditionel campaigns – spots,

advertisements, web, press relations

• We are attempting and getting

experiences from Twitter, Instagram,

Facebook, video, educational

materials

Campaigns for school children

• The Can Cleaner (Dåserydderen) an annual campaign for the youngest school children – includes educational materials ”Tom Dåse og hans genan-venner”

• Green Challenge an annual campaign for the oldest school children. Co-operation with local enterprises on solving current sustainable challenges

• We feel responsible for our common future and seeks to find both the physical and human resources and use them in the best way

Future

Innovation - New solutions –

A deposit and return system for all of us

Continuously developing of the system

• Developing the concept of Pant stations – in an attempt to meet the demands from market and consumers and make the return situation more user friendly

• Developing the return area in the shops – in an attempt to make the system more efficient and hygienic

• Develop concepts which meets and follows the general development in society

• Understand and adapt behavior from all consumers no matter age

• Preserve the exclusive right to run the deposit and return system

• In September 2012 we implemented a test of the Pant station concept at a recycling center in Denmark

• In March 2013 we opened another one close to a shopping center

• During the next 1-1½ years we will open another 11 Pant stations in a pilot

• Pant stations are an alternative to the returning area in shops

Testing the Pant station

Pant stations – all in one sack

• Consumers return their empty packaging in one sack – cans and bottles together. It means that large amounts of cans and bottles are not a problem

• It is easy, efficient and more hygienic

• The sack will be counted and the money is transferred to the bank account within 10 days

How does the Pant station work

What does consumers think about the system?

Tobias Vedfelt, clothing store apprentice: The Danish deposit and return system works out just fine. We are 3 boys sharing an apartment and we collect empty cans and bottles in large bags until we return them all at once to get the deposits. It is nice to get a deposit in the end of the month.

Mathias Lyster, clothing store clerk:

I’m very satisfied with the Danish deposit system. When I have filled a plastic bag with bottles and cans I return the packaging and get a “free” lunch. I think it's a little disgusting when you get greasy fingers though. I would suggest a disinfection container beside the reverse vending machine.

What does consumers think about the system?

Mathias Østergaard, high school student:

The Danish deposit system is super good but most youngsters do not consider returning packaging, when the deposit is so low. It might be good to have more separate reverse vending machines at key points where you could drop off packaging with or without a deposit.

Amanda Dahlmann, high school student:

It’s a really smart system. But I don’t return my empty packaging that often. It would be nice if I could drop them a little closer to where I live. I don’t think it's that logical to return the bottles and cans, while I’m shopping.

What does consumers think about the system?

Helle Enemann, artist:

The Danish deposit system works really well. I can’t

imagine what to do instead. The deposit provides

motivation, because you don’t throw money away. It might

be good if you could get your packaging picked up at

home once a month with your bulky or household waste.