You asked Tom Szaky, founder and CEO of TerraCycle, all your trashy questions (ha ha ha, I'm so funny). And he answered them!
In a nutshell, TerraCycle takes what others call trash, upcycles those materials, and turn them into brand-spanking new products. Who thought you could make a hot little tote bag from KoolAid containers or a sweet homework folder from Capri Sun juice packs?
And just a little fun fact to brighten your day, Tom was named "The #1 CEO Under Thirty” by Inc. magazine in 2006. Eat your heart out, Mark Zuckerberg.
We're lucky enough to have Tom sticking around for a few days - so if you've got any follow-up questions, don't be shy! Jump in!
Q:
Hi Tom, thanks for taking questions. You've got a pretty big
range of products I see (everything from rain barrels, to tote bags, to
cleaning products). How did you get there from just starting with
your original plant food product? (by Eli)
A: Thank you for participating! Our development and growth is
definitely faster than your average company. At TerraCycle, our mission
is to find a meaningful use for waste materials (read: smelly garbage).
That mission led us to identifying so many different waste streams that
needed addressing. From drink pouches to wine barrels to plastic bags,
so much material is wasted. Because no one wants these materials, they
are easy for us to come by; because sustainable products are ‘all the
rage,’ retailers welcome us with open arms.
This combination
has allowed us to develop an incredible number of products quickly.
Unlike most companies, which spend years in product development and
testing, TerraCycle moves through these stages very quickly. First we
identify a waste stream, then we figure out what we can make from that
material. This is our strength -- creatively solving the “what the hell
do we make from it” issue. If a retailer bites, we are in full
production in a matter of weeks.
Q: What
is the typical product development process for TerraCycle? I'm
especially interested in material selection. Do you start by
selecting the ideal material for a new product and then do some product
design and testing? How do you evaluate if there will be
sufficient quantity of the waste (while there are obviously more than
enough 20oz. plastic soda bottles, I imagine it's a lot tougher to
determine if you will be able to reclaim enough cookie wrappers)?
Where do the materials ultimately come from? (combined question
by teej and dana1981)
Great
follow up question to build off my answer to Eli. Actually, contrary to
traditional manufacturing, our first step is identifying the waste
materials. Because we are upcycling, not recycling, we have to come up
with a finished product that utilizes the original shape and
composition of the material. Once we have a material identified and
product concept in mind, we test to see if our production costs and
needs are environmental and economical.
Great observation,
waste stream sourcing is difficult because its not consistent. If you
need to order 1000 rolls of a cloth, it can be made for you, but we are
restricted to using materials that already exist. The waste streams we
use by definition are in abundance. We are address the largest waste
streams, the ones that are doing the most ecological damage, so that
means there are 100’s of million if not billion being produced every
year.
Still, the issue remains that we must make a ship date
for Target and how can we assure the collection of enough cookie
wrappers in time? Luckily our partnership with Kraft Foods solves that
issue. In addition to Kraft, or in this case the brand Nabsico
specifically, providing enough funding to collect millions of wrappers
post-consumer. We also have deals to take all of the brand’s
post-industrial ‘kick offs.’ Any packaged goods manufacturer has some
small percentage of off-spec, end run or unused packaging. That small
percentage translates to millions of unusable impressions. These post
industrial streams help us solidify our manufacturing needs and are
just as eco-friendly. If not upcycled by TerraCycle, these ‘kick-offs’
go to a landfill or are incinerated to create energy.
Q:
We all know that the upcycling is an amazing idea, and very important,
but when you calculate the net cost of collecting, cleaning and using
an old seltzer bottle for housing your cleaning solution, is it also
cheaper for you as a business than manufacturing all your own
packaging? Keep up the awesome work! (by Deej)
A: Thanks for the kind words! Surprisingly it is much much cheaper.
Keep in mind the following figures are rough estimates. To buy a
standard plastic bottle to package your cleaners is (let’s say) 5
cents. To get a 50% post consumer plastic bottle, it jumps to 9-10
cents, for a compostable bottle made from corn plastic you are now
talking 20-25 cents per bottle. For our reused bottles, we pay an
average of one half cent per bottle, all purchased from local recycling
centers. We can clean 100’s at a time and are left with a bottle that
cost about the same as a regular bottle, but is the most eco-friendly
version possible. This is why TerraCycle prides itself on providing
eco-friendly alternatives at no premium.
Q:
I hear you retail through Wal-Mart and Home Depot. That's great
you've gotten them on board. How do you keep your prices
competitive with traditional products? I imagine that's important
when you're working with national chains. (by smallone)
A: Definitely. We are able to make eco-responsible products at big box
prices because we build our products from waste. More often then not of
base materials cost us nothing or close to nothing. It is our unique
business model that allows to make truly eco-friendly products at such
a low price. That is how I define eco-capitalism. Those same factors
that make us so eco-friendly also make us affordable and, in our case,
profitable. Often though, it is an issue and we make much less on a
product then your average manufacturer, but a smaller profit margin is
a small price to pay for helping retailers, consumers and manufacturers
get more involved in the green revolution.
Q:
How did you guys get the companies that are producing the
packaging/waste to get involved? It's great to see them (e.g.
Kraft/Nabisco, Clif, etc.) participating and supporting
TerraCycle. What do the companies provide by sponsoring a
program? (by teej)
A: It’s really wonderful to be working with these companies. We started
working with other smaller, organic brands like CLIF, Stonyfield Farm
and Honest Tea. Those companies helped us get these programs up and
running, in essence putting our innovative upcycling programs on the
map. The sponsorship helps us to run the programs, everything from
shipping and donations, to administrative over head and marketing.
The addition of Kraft Food and their iconic brands like Nabisco, Capri Sun and Balance Bar are helping us take these programs to the next level. Their sponsorship dollars open to the programs to thousands more organizations and individuals. By years end, there will be 4,000 people in our Drink Pouch program and 3,500 in our Cookie Program. That is all thanks to the wonderful support of Capri Sun and Nabsico. Working with these companies is great because almost every food store and pantry in America has a Kraft product, so if we are going to make a real difference we need the help and support of the largest manufacturers in the country.
Q:
I see you're working with Kraft, OfficeMax, and Target! Congrats,
first of all. That's very exciting. Do you have any other
companies short listed that you'd like to start working with? (by stins)
A: Thank you very much. Yes, we are hoping to work with everyone!
Retailers, manufacturers, you name it! Seriously though, our short list
includes ramping up our presence at Wal*Mart, who is making big
sustainability waves right now and we would love to help them. On the
manufacturing side, Frito-Lay, P&G, Unilever, Sara Lee and Purina
are next on our list. We are currently in some level of discussion with
all of these companies.
Q: Besides leading
your company, are you supporting efforts that focus on better waste
management on an international level? If so, who do you support? What
else does TerraCycle do for social and environmental responsibility?
(combined question by letsgrowgreen and smallone)
A: Ha! Unfortunately, I have very, very little time outside of
TerraCycle. Most days I spend 14-16 hours working for TerraCycle in
some manner. Which leaves little time for much other then sleep and my
wife. However I think that more and more companies are building
themselves around waste and the extreme success of companies like Waste
Management and one day TerraCycle (hopefully!) will inspire more and
more to see waste and garbage as an opportunity not a problem.
Our social and environmental responsibility comes in many forms. Our
brigades, in addition to saving 2 million soda bottles and almost 10
million drink pouches to date, have donated over $75,000 to non-profits
and charities. In addition we are based in an Urban Enterprise Zone in
the distressed capital of New Jersey, Trenton. We are a second chance
employer and hire regardless of criminal background, drug issues, etc
as long as someone works hard and follows the rules here, we are
concerned with their past. We employ anywhere from 20-40 people
(depending on production schedules) from the local neighborhoods.
While we are not in the financial position yet to have solar power or
LEED certification, one day we will definitely do both. In the
meantime, we do all the simple things at the office that everyone
should do: recycle everything possible, turn off lights and PCs
conserve water where possible.
Q: My question
pertains to your innovative brigade programs that allow grassroots
groups to recycle juice pouches, cookie packaging, etc..., gather them
up and send them to you in free shipping pouches; if I understand it
right, you pay 2 cents per pouch/package and then cut a check to a
charity of the group's choice. This is an incredible program. My
question is, what can we, as individuals do to overcome the resistance
we receive to implementing this kind of program? What can we do
to "market" this kind of program to friends, family and neighbors? (by jenGreenhance)
A: Great question Jen, a tough one too! You can contact us for
letters and flyers pertaining to the program to help promote. Also
consider getting a tote bags or pencil case to show people. The
finished products bring the programs, the purpose and lesson together
very nicely. I know that sounded like a sales plug but it's true. A
good forced viewing of 11th Hour or An Inconvenient Truth is always good to get people motivated.
Q: What influence will "green" social networking have on promoting sustainability? (by letsgrowgreen)
A: I think that is yet to be seen. We are currently working on a social
networking space on our website. But I will leave the details out, as
not to ruin the surprise. I think the social networking could be a
really positive force for the movement. I always looked at Social
Networking like the modern pinnacle of peer pressue. If all of your
Facebook friends are in a group then you better join that group,
right? If we could use the peer influence to become a green
influence it might have great results. A crude example would be, if
everyone you know on Facebook signs a petition, you’ll probably sign it
as well.
Q: Can you tell us what the single most
important thing an ecopreneur should know before moving forward? Is
there one piece of advice you wish someone had told you when you were
starting out? (by jenGreenhance)
A: To a young ecopreneur? To always stay true to your mission. In its
formative years, TerraCycle was broke and operating out of a dingy
garage. Still I turned down a million dollar business plan contest,
because the VCs providing the capital wanted me to move away from used
soda bottles and our green focus and instead become a traditional
fertilizer company. If I had agreed and gone with the money and the
suggestions of the more experienced business men telling me what to do,
I never would have moved from fertilizers to all the wonderful items
were are manufacturing now.
If you have a plan and a dream and
you believe it will work then stick with it, no matter what. It won’t
be easy or quick, but the payoff in endless if you see it through.
Edited by stins - Wed, 06 Aug 2008 19:17:48 GMT
