Lidl x Algramo

An in-store refill station / Source: Algramo

EuropePackaging

5 MINUTE READ

Sophie Benson

WHAT WE SAY:

Consumers want to use refillable products because they are better for the environment and they reduce plastic waste, but a lack of availability is standing in their way. That is where supermarkets need to step in and remove the barriers. Lidl’s partnership with Algramo could do just that.

By placing refill stations in the laundry aisle, Lidl has the opportunity to normalise refilling as a regular part of shopping. Is one trial, in one store, a refill revolution? No, but it is a move in the right direction and, crucially, it changes the framing of refills from exclusive and expensive to inclusive and affordable.

KEY FACTS:

Lidl has partnered with circular, reusable product platform Algramo to launch in-store laundry detergent refills.
The six-month trial took place in one of Lidl’s UK stores, beginning in May 2022, and was designed to measure the performance and popularity of in-store refills.
To use the service, shoppers select a refill bottle - currently made from HDPE, hopefully soon to be plastic-free. They choose their detergent, place the bottle in the machine for automatic filling (up to 980 millilitres) and collect a ticket printed with a barcode, which is scanned at the point of sale.
On the first purchase, concentrated bio and non-bio detergent cost GBP 1.69 (USD 2.08) and concentrated fragrance detergent cost GBP 1.89 (USD 2.32).
Formil is the chosen detergent brand and the value supermarket ensures refills never cost more than a single-use product. After the initial purchase, refilling represents a cost saving of GBP 0.20 (USD 0.25) per bottle. Smart packaging, using an RFID chip embedded in the bottle, means the refill station recognises when a bottle is being reused and automatically applies the discount. This also rules out the use of consumers’ own bottles.
Lidl claims reusing a refill bottle saves 59 grams of plastic each time and estimates the trial could eliminate 2,970 single-use containers.
The brands chose to make refill bottles from HDPE because it is a durable and sturdy plastic that can be reused multiple times before being recycled. The exact number of times it can be refilled and reused will depend on the way in which a consumer handles the bottle. Lidl does state, however, that it will replace damaged bottles free of charge.

Graphic on how to use the refill station / Source: Lidl

A refillable Formil bottle / Source: Algramo

DIVE DEEPER:

Laundry detergent bottles are commonly made from PET and HDPE. While these are technically the two most recyclable types of plastic in use today, they still have a low recycling rate on average. HDPE bottles, for example, are only recycled in Europe between 10-15% of the time, according to Euric. In 2018, the top 10 liquid laundry detergent brands in the US sold a combined 375 million units and the global market is expected to reach a value of USD 180 billion by 2026. Even if the plastic used for these products is more recyclable than other types, most of those bottles end up in landfills, the oceans and the open environment.
Reusing these bottles as many times as possible is an imperative step in reducing the impact of plastic on the planet. As many as 93% of consumers would be interested in incorporating refills into their shopping, but lack of availability is the leading barrier for purchase.
Difficulty of getting into the habit, perceived messiness and price serve as further barriers.
By partnering with Chilean startup Algramo, which combines automated dispensing with smart packaging, Lidl immediately removes a number of such consumer barriers.
The presence of a refill station in a value retailer also shifts the perception of refills, which are associated with extra expense. 40% of consumers believe that zero-waste or plastic-free options are always more expensive.
Existing refill schemes in other stores demonstrate the scope for the expansion of Lidl’s initiative. Tesco offers refills for brands, including Alberto Balsam, Coca Cola, Ecover, Heinz and Persil, while ASDA partnered with Unilever to provide refills for products from Persil, PG Tips, Cif, Simple and Alberto Balsam.
UK retailers Marks & Spencer, Morrisons, Ocado and Waitrose & Partners, alongside supply chain company CHEP, formed a Refill Coalition, in March 2022, aiming to co-design and scale an end-to-end refill solution to be trialled in stores, putting refills in front of more consumers and raising expectations for their presence.
As part of its efforts to reduce plastic waste, Lidl claims it has removed one billion pieces of plastic from its stores and has made a commitment to reduce plastic packaging by 40% by 2025.
Algramo claims it has reused 691,238 pieces of packaging and saved 87,622 tons of plastic to date. In April 2021, Algramo closed a USD 7.3 million Series A investment round to fund global expansion. Led by Dalus Capital, the round also included Angel Ventures and Closed Loop Partners.

"At Lidl, we believe you shouldn’t have to pay more for doing the right thing. It’s why we’re especially proud to be trialling this pioneering refill technology that not only helps customers reduce their plastic usage, but also their weekly shopping bill."

Mark Newbold - CSR Manager, Lidl

Key Design Considerations:

Swap out the plastic

Plastic is still a big part of the equation in this collaboration, meaning fossil fuels are still being used to create the packaging and the mechanical stress of opening and closing the cap can cause the shedding of microplastics, even if the bottle is reused multiple times. Glass, aluminium and steel containers - as used by Beauty Kitchen’s ReRe programme - should be prioritised to ensure refillable solutions stand the test of time.

Can you incorporate recycling into your refill stations?

Recycling rates for HDPE, and most plastics, are low. Integrating a recycling station into your in-store refill stations would encourage consumers to recycle damaged bottles efficiently and effectively, but consider if their use could be misconstrued, leading to more frequent disposal of packaging.

Bottle geometry is key

The shape of your laundry bottle can have significant impacts. Cutting design features, such as handles, curves and shoulders can improve space efficiency and therefore reduce associated transport emissions. Conversely, avoiding hard edges and opting for more organic shapes can improve environmental stress crack resistance because of the presence of surfactants in laundry detergent. You should research and understand where the biggest environmental savings could lie, in order to inform your packaging shape design.

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Lidl x Algramo

WHAT WE SAY:

Consumers want to use refillable products because they are better for the environment and they reduce plastic waste, but a lack of availability is standing in their way. That is where supermarkets need to step in and remove the barriers. Lidl’s partnership with Algramo could do just that.

KEY FACTS:

DIVE DEEPER:

Reusing these bottles as many times as possible is an imperative step in reducing the impact of plastic on the planet. As many as 93% of consumers would be interested in incorporating refills into their shopping, but lack of availability is the leading barrier for purchase.

Difficulty of getting into the habit, perceived messiness and price serve as further barriers.

By partnering with Chilean startup Algramo, which combines automated dispensing with smart packaging, Lidl immediately removes a number of such consumer barriers.

The presence of a refill station in a value retailer also shifts the perception of refills, which are associated with extra expense. 40% of consumers believe that zero-waste or plastic-free options are always more expensive.

As part of its efforts to reduce plastic waste, Lidl claims it has removed one billion pieces of plastic from its stores and has made a commitment to reduce plastic packaging by 40% by 2025.

Algramo claims it has reused 691,238 pieces of packaging and saved 87,622 tons of plastic to date. In April 2021, Algramo closed a USD 7.3 million Series A investment round to fund global expansion. Led by Dalus Capital, the round also included Angel Ventures and Closed Loop Partners.

Mark Newbold - CSR Manager, Lidl

Key Design Considerations:

Swap out the plastic

Can you incorporate recycling into your refill stations?

Bottle geometry is key

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