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Unilever is testing refill solutions to tackle plastic waste

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Unilever is running refill pilot projects globally, seeking ways to reduce virgin plastic use and tackle plastic sachet waste. Learn how insights from three emerging markets are helping us understand the barriers to scaling reusable packaging models.

A Unilever refill machine, selling Dove, Lifebuoy and Sunsilk

Unilever has run over 50 refill and reuse pilot projects since 2018, seeking ways to help reduce our virgin plastic use. Learnings from these trials are helping to shape our strategies for reducing single-use plastic packaging, including flexible plastic sachets.

We spoke to our teams in Indonesia, Bangladesh and Sri Lanka to find out how they are evolving refill solutions within their respective markets.

Building on our waste bank network in Indonesia

In 2020, we piloted a refill machine, selling home and personal care brands like Dove, Rinso and TRESemmé, in a packaging-free store in Jakarta. We also introduced two digital machines in an apartment building and a general trade kiosk. These trials taught us that affordability, convenience and dosage control matter most to our Indonesian consumers.

We then tested an even more convenient refill model, with motorcycle drivers selling door-to-door from large jerrycans. This was more popular than either machine, but high operational costs made scaling this model challenging. However, the simple pouring system worked well.

To build on this, we began working with local partners like Alner, a TRANSFORM enterprise, introducing scalable manual refill stations to local stores (warungs) and our growing network of waste banks across Indonesia. Today, we serve an estimated 6,000 customers at 1,000 refill stations, saving approximately 6 tonnes of plastic per year.[a]

Sunsilk, Dove and Lifebuoy refill station in Bangladesh.

Designing refill solutions customised for consumers in Sri Lanka

In 2019, we worked with sustainable technology provider Vega Innovations to install two large high-tech refill machines in modern trade outlets. Each machine offered set amounts of personal and home care products, from brands like Dove, Sunlight and Sunsilk.

Initial responses to the pilot were promising. However, we wanted to expand our reach to include general trade, which accounts for the majority of the market, and increase access for low-income customers who tend to buy smaller quantities of products more regularly, so we broadened our approach.

We redesigned our machines to eliminate fixed volume options, allowing consumers to choose the exact amount they purchase, according to their needs and budgets. We also placed machines in more convenient locations like railway stations and apartment buildings for better accessibility. Offering savings of up to 20% compared to prepackaged prices, the refill machines help cater to consumer expectations of affordability, convenience and quality.

Bangladesh: innovating with the local market in mind

In 2021, we tested self-service refill machines in modern trade stores in Bangladesh. Despite the machines’ advanced features, they proved challenging to service and maintain. We wanted to develop a lower-tech solution that is more scalable, requires less maintenance and better serves the general trade market in Bangladesh.

After a year of prototyping with Bopinc, another TRANSFORM-funded organisation, we created a user-friendly, cost-effective machine that fits on store counters. Dispensing multiple products including Sunsilk, Dove and Lifebuoy, in varying amounts, our machines offer the premium experience of prefilled bottles at lower prices.

Bopinc’s expertise in early consumer engagement, innovative distribution models and creative behaviour change campaigns was instrumental in helping to bring the machines to market. The machines provide real-time sales data, helping us understand consumer preferences and price points to develop more valuable product offers. Approximately 43% of users are now returning customers.

A Unilever refill machine, selling Dove, Lifebuoy and Sunsilk, sits on a crowded counter in a small store in Bangladesh

Testing, learning and scaling sustainable packaging solutions

We’re working to ensure 100% of our plastic packaging is reusable, recyclable or compostable, by 2030 for rigid plastic and 2035 for flexible plastic. Every pilot offers fresh insights to help us find new ways to do this and reduce our virgin plastic footprint.

We know we can’t scale alternative reusable packaging models alone. It requires commitment across every level of the supply chain, from manufacturers and retailers to the waste management industry and governments. It is also clear that concerted voluntary efforts can only go so far, which is why supportive regulations will be essential for reuse solutions to grow at scale.

Unilever is advocating for enabling policies with the Business Coalition for a Global Plastics Treaty and working pre-competitively with our peers and partners, like the World Economic Forum and Ellen MacArthur Foundation, to agree on a common set of reuse definitions and metrics. Only by working together can we help drive the infrastructural change needed to transition from small single-brand pilots to multi-brand reuse models at scale.

[a]

Based on the 91,000 litres of products sold in 2023.


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