Challenges

Waste Mismanagement

Every minute, 1 million plastic bottles are purchased globally, but 86% of  used bottles end up as litter, in landfills, incinerators, or into our oceans, which are choking with plastic waste. 

Currently, our oceans are estimated to contain over 170 trillion plastic particles, posing a serious threat to aquatic and terrestrial life; the average person ingests a credit card’s worth of plastic every week! Despite the fact that 2 million glass bottles are used worldwide each day, 80% of them are either littered or buried in dumpsites.

  • Furthermore, although aluminium cans are the most recycled beverage packaging, more than 30% of the 1 million pieces consumed daily worldwide are mismanaged. 
  • This waste mismanagement problems is most dire in developing markets whereby sufficient management capacity is lacking.
  • On average, beverage packaging litter constitutes an estimated 40% of total litter by volume, and is a major contributor to societal disamenity, waste-related illnesses, and is a safety hazards. 
  • Conversely, the Ande report (2023) highlights that landfills rank as the third-largest anthropogenic source of methane gas, contributing an estimated 11% of global methane emissions. This is equivalent to nearly 800 megatons of carbon dioxide equivalent (CO2e) annually. On the other hand, waste incineration, which is very detrimental for the climate, emits 2.5 times more CO2 to generate the same amount of electricity as a coal power plant.
  • The root cause of this beverage packaging waste mismanagement problem is primarily attributed to the prevailing throw-away culture among majority of the world’s population, coupled with inadequate comprehensive waste management systems and infrastructure.
  • In Kenya for example:
  • 2 billion PET bottles, over 600 million aluminium cans, and 350 million glass bottles waste is generated annually
  • But less than 10% is captured for recycling, and the rest is littered, disposed in unsanitary dumpsites, burnt in open air, or leaks into waterways

Beverage Counterfeiting

  • In Kenya:
  • 1 in every 5 products sold is counterfeit, and annual value of illicit trade is USD 8 Billion.
  • 59% of total alcohol sales is illicit, and producers lose on average 40% of their market shares
  • Beverage counterfeit syndicates rely on littered or dumped genuine used bottles as primary source of packaging

The annual global value of counterfeit and pirated goods is estimated at USD 2.8 trillion, leading to a total tax loss of about USD 270 billion, and approximately 5.4 million legitimate job losses (2022). The lack of legal, financial, and technological capacity, coupled with widespread corruption, has turned developing markets into hubs for illegal counterfeit activities, making it challenging to effectively combat this crisis.

  • Alcoholic beverages are among the most commonly counterfeited products. For instance, in seven developing Sub-Saharan markets of Ghana, Nigeria, Tanzania, Uganda, Zambia, Mozambique, and South Africa, the total volume of the alcoholic beverages market was estimated at 10.5 million hectolitres of pure alcohol equivalent (HL LAE) in 2017. Of this volume, 39.6% was illicit, and was estimated to generate nearly US$5 billion in revenue in 2017.

Counter Measures

Anti-counterfeit

In light of these challenges, our initial approach to addressing them involves disrupting counterfeiters’ revenue streams by empowering consumers with EcocanApp technology, allowing them to securely authenticate products before purchase, ensuring they only buy genuine beverages.

  • The second step is to deprive counterfeit syndicates of genuine used bottles by efficiently collecting them from the market through the Deposit Refund System (DRS).
  • Thirdly, we deploy the Track & Trace function to enable government agencies and beverage producers to monitor counterfeit, tax evasion, and product diversion activities in real-time, facilitating targeted law enforcement.
  • These combined efforts not only combat counterfeiting and beverage waste mismanagement, but also contribute to environmental conservation, increase the resource efficiency of beverage bottles, and create numerous job opportunities.

Waste Management

We collect used genuine bottles from the market via a Nordic-design Deposit Refund System(DRS), which is the gold standard for packaging waste collection.

A DRS is a take-back instrument whereby a small refundable fee is added onto the retail price of beverages at point of sale. This deposit assigns extrinsic financial value to used genuine bottles, thereby transforming them from supposed waste to potential resources. Consumers can reclaim this deposit by returning used eligible containers to designated collection stations for recycling. If the purchasing consumer instead litters or dumps the eligible packaging, other consumers can pick up the bottles and claim the applicable deposit.

  • By returning used bottles to us for recycling, consumers make a substantial impact on reducing litter volumes and thwarting product counterfeiting. This action denies counterfeiters access to authentic packaging. Such combined efforts showcases the impactful power of cooperation! In Kenya they call this Harambee!
  • The deposit incentive which is designed to promote consumer responsibility for sustainable management of used beverage containers, stands as one of the primary elements of a DRS. It not only contributes significantly to the system’s efficacy but also distinguishes it from other collection mechanisms.
  • For our DRS collection technique, we utilize a hybrid model that incorporates IoT-capable Reverse Vending Machines (RVMs) and the AI-powered EcocanApp for efficient eco-system administration. We are devoted to fostering a healthier world because our well-being is intricately linked to the environment around us. We invite you to join us in this journey.

Consumer Engagement

Through EcocanApp and RVMs, powered by advanced data analytics tools, we enable producers and advertisers engage consumers with targeted and personalised marketing campaigns.