A few thoughts on Recycling PS Vending Cups

1. A few thoughts on Recycling PS Vending Cups February 11, 2010

2. A view on Consumer Demands for Food Packaging Convenience • Handling properties • On-the-go consumption • Target Group specific – i.e. elderly consumers, teenagers etc. Environment Convenience Environment • Peace of mind – political correctness • Environmental friendly but not at higher costs • No sacrifice with respect to product safety and convenience/functionality Consumer Costs • Costs as a key driver especially in economically challenging times • Basic solutions vs. premium products • Simplicity as a consumer attitude Product Safety Costs Product Safety • A must have for any food related product • Ever higher standards incorporated Save a Cup Meeting London, February 11, 2010

3. PS-Cups: Excellent product with an image problem • PS Cups with ideal properties for Vending Industry – protection, functionality and costs • However, increasingly negative image of PS-Cups with respect to environmental aspects – seen as pure waste • Even without a professional recycling scheme the impact is much lower than generally assumed (e.g. plastic vs. china cups) • Environmental discussions are however often conducted with rather simplistic arguments – Marketing vs. finding true sustainable solutions • The recycling concept as a well accepted and proven approach to a sustainable environmental friendly solution (e.g. PET) • Even aluminium was able to generate a much better image in the past decade – Switzerland • PS as an ideal material for recycling – multiple re-usage  A strong industry initiative is needed in order to secure a good future Save a Cup Meeting London, February 11, 2010

4. Aluminium Recycling: A positive Communication Example Translation: „Searching: The best ideas for 100% Aluminum Recycling“ „Win 50‘000 Swiss Francs“ Save a Cup Meeting London, February 11, 2010

5. Existing European Recycling Initiatives • Several good recycling initiatives in place (e.g. Save-a-Cup, Stichting Disposables in the Netherlands) and established • Save-a-Cup is a true innovative approach launched 1992 in the UK • Collection of cups is crucial - but complicated and rather expensive • Success rate today still relatively weak: • Target must be to achieve a recovery rate of > 50% • Recycling Food to Food packaging as the most powerful solution • Broader support (industry and governmental) needed to really make an impact • Communication to end-consumers and influencers as a crucial task • Message “This cup will be recycled into a flower pot etc.” (single stream) vs. “You are drinking from a recycled cup” (close loop)  Current systems not yet strong enough and missing industry wide support Save a Cup Meeting London, February 11, 2010

6. PS-Recycling: Benefit for the entire Supply Chain Operators • Ensuring a cost optimized cup solution keeping all the tested functional advantages • Improved environmental image PS Producers • Securing long term business perspective • Improved image Recyclers • New source of business • Rising oil prices as additional growth engine Cup Manufacturers • Future of offered products • Image improvement  We are convinced that Recycling is the strongest industry answer for the future! Save a Cup Meeting London, February 11, 2010

7. Thank you for your attention. Save a Cup Meeting London, February 11, 2010