Australia: A Profitable Beverage Container Collection Model
Serving the waste management business for several years, our partners in Australia, Envirobank, recognized the opportunity to collect beverage containers, which typically went to landfills. The challenge was to find a profitable financial model, considering the low scrap value of such containers and the logistic costs of traditional collections. Given our industry and worldwide experience, Envirobank presented Envipco a solid business plan supporting their desire to partner with us in providing a customized solution.
After establishing the local position regarding beverage container volume production, consumption, recycling legislation, current recycling infrastructure costs, incentives and effectiveness, Envipco presented Envirobank with a top-down approach. A high volume automated recovery platform for high density bring-back installed at public places and big box stores; the traditional Reverse Vending Machines installed at retail locations and shopping centers; and Low cost low volume brand-building RVMs installed at schools, cafeterias, canteens, offices and the like were proposed as the most effective way of collecting the used beverage containers.
Several of these machines have been adapted to include interactive features that display promotional offers and or discounts as an incentive to recycle. These features are further revenue generators in addition to the scrap values of materials. Seventy-five already installed units are running successfully and profitably, with several hundred more scheduled for installation in the coming months. The machines will increase volume as well as opportunities for container redemptions in the States of Australia, which is driven by container deposit recycling legislation.
