TerraCycle Turns Waste into Wonder Alliston Ackerman
The
emerging concept of "eco-capitalism" holds that organizations must be
accountable for their performance in the consumption and production of
natural capital, an economic term for the goods and services available
from nature.
TerraCycle is arguably the
first-ever eco-capitalist corporation as the company not only limits
its consumption of natural capital and minimizes waste; it actually
reverses the entire process.
For example, TerraCycle Plant Foods are created by feeding organic
waste to worms, liquefying their poop and packaging the liquid in
reused soda bottles.
"We are creating revolutionary products that have never been created,"
says Tom Szaky, CEO, TerraCycle. "What puts an even bigger twist on
that is the fact that we are making them from materials that up to this
point have been considered to be waste."
Winning from the Beginning
TerraCycle was founded in the fall of 2001 in a Princeton University
dorm room by Tom Szaky and Jon Beyer when they were inspired by -- get
this -- a box of worms. The idea was simple: take waste, process it and
turn it into a useful product. The initial business plan was written
for a contest sponsored by the Princeton Entrepreneurship Club. As a
result, Szaky and Beyer were permitted access to Princeton's dining
hall waste the following summer in order to process their prototype
"Worm Gin."
Toward the end of that same summer, Szaky and Beyer found their first
investor. The company continued, funded by prize money from business
plan contests and angel investors.
A major breakthrough was achieved in May 2004 when The Home Depot began selling TerraCycle Plant Food on its Web site. In 2005, Whole Foods, Home Depot Canada, Wal-Mart Canada, Wild Oats and Do-It-Best
also began carrying the line. Most recently, TerraCycle -- which
achieved approximately $3 million in sales in 2007 -- was named one of
the 100 most innovative companies by Red Herring magazine and awarded
the Environmental Stewardship Award from Home Depot Canada.
Still, TerraCycle has its share of challenges as a small innovative
company: "In terms of funding, one of our biggest challenges has been
product development and quality control. Again, there is no blueprint
and we have had to set our own standards," says Szaky. "All in all, we
have just learned to use the knowledge we have acquired through these
ups and downs relatively quickly. As a flat company, we can respond and
continue to be nimble in our business prowess."
A New Category
Beyond plant food, TerraCycle is launching four brand new
environmentally safe cleaners: Natural All Purpose Cleaner, Natural
Bathroom Cleaner, Natural Window Cleaner and Drain Maintainer and
Cleaner.
These all-natural, non-toxic cleaners are made using the latest
technology, turning naturally occurring essential oils into effective
and safe cleaners for any situation. The cleaners are sold nationwide
at OfficeMax and The Home Depot stores.
"What makes our products unique outside of the product being good for
the environment is the fact we package it in reused soda bottles. We
even get the spray heads from end runs that companies were going to
throw away. Our products have a zero footprint on the environment,"
says James Artis, a spokesman for TerraCycle.
Got garbage? Visit www.terracycle.net
to join one of the company's many "Brigade" programs. TerraCycle will
pay for your cookie wrappers, juice pouches, yogurt containers,
soda bottles, energy bar wrappers and more.
Learn
how this emerging approach is impacting today's businesses by enabling
Retail and Consumer Goods decision makers immediate access to critical
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The
emerging concept of "eco-capitalism" holds that organizations must be
accountable for their performance in the consumption and production of
natural capital, an economic term for the goods and services available
from nature. 
