Group including the world’s two largest food & beverage retailers will identify and commercialize a recyclable and compostable cup globally
NextGen Cup Challenge launches in September with up to $1M in funding to awardees
July 17, 2018 – The NextGen Cup Consortium and Challenge, convened by Closed Loop Partners, announces that McDonald’s joins Starbucks as a founding member of the group joining together to develop a global recyclable and/or compostable cup solution. This announcement follows recent commitments by both companies to drive innovation of their packaging and help reduce waste.
McDonald’s is committing $5 million in partnership with Closed Loop Partners to help launch the NextGen Cup Consortium and Challenge announced earlier this year, bringing the total funds dedicated to the Challenge to $10 million. The Challenge kicks off in September and invites innovators, entrepreneurs, industry experts, and recyclers to submit their ideas for the next generation of recyclable and/or compostable cups. Awardees will receive acceleration funding up to $1 million based on key milestones. Up to seven of the awardees will enter a six-month accelerator program to help scale their solutions.
“McDonald’s is committed to using our scale for good to make positive changes that impact our planet and the communities we serve,” said Marion Gross, Senior Vice President and Chief Supply Chain Officer, McDonald’s USA. “We are excited to join Starbucks and Closed Loop to help solve this pressing challenge as collaboration is key to finding a scalable, lasting global solution.”
“We are proud to come together with industry partners like McDonald’s to drive innovative, scalable solutions for cup waste,” said Colleen Chapman, vice president of Global Social Impact focused on sustainability for Starbucks. “A better cup will benefit the entire industry and we invite others to join us as we move these efforts forward.”
NextGen builds on years of work in the industry and is a critical step in the development of a global end-to-end solution that will potentially allow the 600 billion cups globally to be diverted from landfills and given a second life.
NextGen is building a robust advisory council including leaders in environmental NGOs including WWF, human-centered design, academic leaders, the paper and plastic industry, recyclers, composters, and municipalities to ensure that the work is grounded in the needs of the entire value chain and the cups make it from shelf to consumer and back through the recovery system to another high value use.
“There has never been a greater need to tackle the ways in which we source and recover materials. McDonald’s participation is a strong step forward in building momentum from major brands to come together and develop innovative approaches to materials waste,” says Erin Simon, director of sustainability research and development (R&D) and material science at World Wildlife Fund, U.S. “Working together across the entire value chain of these major companies will allow us to create a comprehensive and lasting solution to this critical conservation challenge.”
Launching in September, The NextGen Cup Challenge, in partnership with OpenIDEO, is the first initiative in this journey. The NextGen Cup Challenge will be open to supply chain leaders, innovators and solution providers that have promising solutions to recovery of single use cups, with a focus on the fiber based hot and cold cup, starting with creating a fully recyclable and/ or compostable cup in North America.
“To date we have received more than 1,000 inquiries from companies and individuals interested in participating in the challenge and we anticipate some exciting and impactful proposals,” says Kate Daly, Executive Director of the Center for the Circular Economy at Closed Loop Partners. “In our experience investing in circular economy innovation, we find the most successful path to scaling a systems-changing solution is to bring together key players along the entire value chain in a pre-competitive collaboration. This is the type of partnership we need to foster innovative solutions without sacrificing profit. We are working with consortium members to build a robust shared set of technical, performance, and environmental criteria that we will announce later this summer.”
While NextGen intends to work on the entire cup system, including cups, lids and straws, its first challenge will focus on the fiber-based hot and cold cup, as this is the most significant challenge faced by the industry.
For more details on the consortium or challenge, visit www.nextgencup.com.
Each year, an estimated 600 billion paper and plastic cups are distributed worldwide. Most of these are not recyclable or compostable. The NextGen Cup Consortium and Challenge launched in 2018 to bring together entrepreneurs, industry, and recyclers to identify and commercialize the next generation of recyclable and/or compostable cups. Closed Loop Partners, Starbucks, and McDonald’s invite the industry to join this effort to identify a global solution to this shared challenge.
About Closed Loop Partners
Closed Loop Partners is an investment platform that invests in sustainable consumer goods, recycling and the development of the circular economy. Investors include many of the world’s largest consumer goods companies and family offices interested in investments that provide strong financials returns and tangible social impact. In 2018, CLP launched the Center for Circular Economy, a New York City-based collaboration center for innovators to commercialize products, services and technologies that are leading the transition from a linear take, make, waste economy to a restorative one in which materials are shared, re-used, and continuously cycled.
McDonald’s is the world’s leading global foodservice retailer with over 37,000 locations in over 120 markets. Over 90 percent of McDonald’s restaurants worldwide are owned and operated by independent local business men and women. This year McDonald’s announced a series of commitments demonstrating how it will use its Scale for Good to positively impact the planet and the communities it serves. You can read more about McDonald’s Scale for Good initiatives here.
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at http://news.starbucks.com or www.starbucks.com.
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