Reset Plastic: the Jointly Developed Plastic Strategy of the Companies of Schwarz Group

We encounter plastic every day - whether as packaging or as everyday items such as household goods or toys. However, the increasing use of plastic has consequences for our environment because resources and energy are needed to manufacture it.

The jointly developed REset Plastic strategy of the companies of Schwarz Group is therefore pursuing ambitious targets to reduce the use of plastic, to increase the portion of recycled materials, to drive forward recyclability and to promote the circular economy. By means of the REset Plastic measures, we are actively contributing to climate protection and the conservation of resources.

To us, today’s waste is tomorrow’s recyclable material. For, recycling reduces the use of resources immensely and keeps valuable raw materials in the recycling loop.

That is why we use recycled materials in our private-label packaging whenever possible. For example, we used “post-consumer recycled material” in the packaging of the Lidl “Metzgerfrisch” private-label chicken. What makes it special: The recycled plastic comes from recycling bags or containers. By means of innovative washing and sorting processes, we managed to prepare the recyclable material in such a way that it fulfills the high statutory requirements for food packaging and is food safe.

We also rely on recycled material in the area of laundry, cleaning and household products. In order to increase the use of recycled plastic, our retail divisions, Lidl and Kaufland, work together closely with our environmental division, PreZero. And this has been successful: In 2023, we were able to increase the proportion of recycled material in private-label packaging made of plastic by an ambitious 19 percent. The prospects are bright for reaching our target of a 25 percent recyclate content by 2025.

Another example of the innovative use of recycled material is our Bobby Car made of recyclate. A legendary toy classic - REthought! The chassis of the blue children’s car consists of 70 percent recycled post-consumer plastics - such as empty yogurt tubs disposed of in recycling bags or containers. This Bobby Car is the excellent result of the collaboration between PreZero, Kaufland in Germany and the BIG Spielwarenfabrik GmbH & Co. KG.

How does the recycling process work?

Everything starts with the consumer, who disposes of their plastic packaging in waste bags or containers. PreZero, the environmental division of Schwarz Group, collects the recyclable material in the refuse collection trucks and sorts the waste in state-of-the-art sorting plants. The plant separates the different types of plastic. Afterwards, the material is cleaned thoroughly, shredded, melted and processed into granulate. This regranulate is then used to manufacture new merchandise or packaging. For example, as in the blue Bobby Car, which was exclusively sold at Kaufland in Germany as a limited “Recycling-Helden” (Recycling Hero) edition. In this way, a high-quality, sustainable product, which also brings a lot of joy, is created out of waste.

Our jointly developed REset Plastic strategy far exceeds the use of recycled plastic. It comprises specific measures to promote the circular economy - in addition to the use of recyclate, these include plastic reduction, packaging optimization and recyclability (Design4Recycling).

Thanks to REset Plastic, we were able to reduce the use of plastic in private-label packaging and transport aids by 34 percent in our retail divisions, Lidl and Kaufland. As such, we exceeded the original reduction target of 30 percent by 2025 as early as the 2023 fiscal year.

In order to maximize the recyclability of private-label packaging, we start right at the design process. Our unique PET recycling loop is a perfect example of recyclability and using recyclate: For our recycling loop, all steps are carried out within companies of Schwarz Group, from collection to recycling up to the production of new PET bottle bodies. By means of this closed loop, we were able to avoid using a significant amount of new plastic and carbon emissions were reduced. And we are extremely proud of that: Today, the body of all PET single-use bottles of the German Lidl and Kaufland private labels is made from 100% recycled plastic.

The companies of Schwarz Group also promote awareness of the circular economy among consumers and suppliers, such as through sustainable packaging guidelines for suppliers. By consistently implementing REset Plastic, the companies of Schwarz Group show that waste is not a burden, but a valuable resource instead.