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Pioneering Sustainable Spirits: ecoSPIRITS' Game-Changing Technology image

Pioneering Sustainable Spirits: ecoSPIRITS' Game-Changing Technology

S1 E14 ยท Green New Perspective
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Hey there, welcome back to The Green New Perspective! In this episode, we sit down with Iain McPherson, Sales Director for Europe, Middle East & Africa at ecoSPIRITS, and explore the cutting-edge methods and revolutionary technology that are propelling sustainability forward in the beverage industry.

ecoSPIRITS has come up with a closed-loop distribution system that's all about slashing waste and carbon emissions by promoting reusable packaging solutions. They're on a mission to lead a transition to circular packaging technology, and with a growing network of partners, ecoSPIRITS is leading the charge toward a greener future in the spirits and beverage sector.

๐Ÿ•‘ ๐Ÿ’ก KEY MOMENTS

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0:01:34 - Premium Spirits Supply Chain Challenges

0:10:08 - EcoSpirit's Vision and Branding Strategies

0:15:38 - Circular Economy Tech for Sustainable Cocktails

0:21:01 - Adopting Sustainable Practices in Beverage Industry

0:28:04 - Excitement About Future of Eco Spirits

0:34:00 - Connect With Spirits on Social Media

๐ŸŒ SUSTAINABILITY PODCAST CREATED BY NEW PERSPECTIVE

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This podcast is proudly sponsored by New Perspective Marketing, a dynamic growth marketing agency in Boston, MA, celebrating 20 years in business. We help sustainably focused B2B organizations grow their brands and scale up revenue. If you or your organization is looking to grow, visit npws.com for more info.

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Transcript

Introduction to the Podcast and EcoSpirits

00:00:06
Speaker
Hello, you're watching another episode of Green New Perspective, a podcast dedicated to sustainability. My name is Dunja, I will be your host today, and joining me today as a guest is Ian McPherson, the Sales Director for Europe, Middle East and Africa at EcoSpirits. EcoSpirits is a company and a proud pioneer of the world's first low-carbon
00:00:29
Speaker
low waste spirits distribution technology. This innovative closed-loop system is transforming the way premium spirits are distributed, nearly eliminating packaging waste in the supply chain.

Redefining Spirit Distribution

00:00:42
Speaker
But eco-spirits is not just about reducing waste. They are leading the charge in redefining how we approach spirit distribution, making it more efficient, cost-effective and eco-conscious. By revolutionizing the supply chain, Ian and his team are
00:00:58
Speaker
paving the way for a new era of sustainable spirits. So let's explore their passion for sustainability within the spirits industry and their transformative impact.
00:01:19
Speaker
Welcome to doing your prospective podcast. Thank you, Dunya. It is a real pleasure and joy to be here and to be speaking to you. So thank you very much for asking me to participate.

Challenges in the Spirits Industry

00:01:33
Speaker
So for starters, can you give our listeners an overview of the challenges in the premium spirits supply chain and the environmental impacts associated with it? Yes. So back in
00:01:46
Speaker
2020, it was reported that there are 689 billion units of single-use glass packaging produced and
00:02:00
Speaker
About 70 billion were within the wine and spirits industry from wine and spirits bottles. So many countries have poor rates of recycling and a lot of this glass goes straight into landfill. Recycling also in its own is also highly energy intensive and its glass is heavy and it's expensive to transport.
00:02:25
Speaker
So reuse is by far the most effective way to reduce the environmental impact associated with the consumption. And so we believe the best way to manage the problem of waste is to produce less waste.
00:02:43
Speaker
in the first place. And that's why we are focused on reuse and the circular economy.

Circular Packaging Technology

00:02:53
Speaker
Yeah, this is the perfect actually spot to tell us a bit about DecoSpirits was a company mission and how you address the challenges that you just mentioned. Sure. So in terms of the mission, from the start,
00:03:12
Speaker
Our mission and aim has been to end single-use glass and by leading the spirits in the wine industry on a transition to a circular packaging technology. We are an innovative technology business. The company was founded back in 2018 in Singapore with the aim of developing the world's first closed-loop packaging technology for premium spirits in wine.
00:03:40
Speaker
The founding team, Paul Gaby, our founder and CEO, had a background in spirits distribution and could see the inefficiency of single-use glass packaging, especially when you ship spirits all over the world. That's complex and can be wasteful. Originally, there was a test with Raffles Hotel in Singapore,
00:04:08
Speaker
for the Singapore sling and the success led to the expansion across Singapore. And as a business, we will always be grateful for Raffles and Andacore for believing in eco-spirits and supporting a much more sustainable way of doing things. And from there, it wasn't long before we were then able to launch into Hong Kong, Australia and China.
00:04:35
Speaker
and then later on in 2019 moved to rolling out across the globe and within probably this year will be active in at least 25 markets across the globe.

Implementing a Closed-loop System

00:04:51
Speaker
And can you explain the concept of closed-loop distribution system that you developed? Yes, of course.
00:05:03
Speaker
Earth system allows spirits and wines to be transported in bulk, in the country of origin where it's produced.
00:05:12
Speaker
to the local markets where it's consumed. And in those local markets, the bulk liquid is processed into a fully reusable ecotote that is then made for delivery to the on-trade, so it enters the supply chain as bottles in a case would. Once in the venue, spirits and wines are transferred from the ecotote,
00:05:40
Speaker
to serving or dispensing through our SmartPore technology. So that once that eco tote is emptied, they're returned to the eco plant, they're sanitized, they're refilled and they're sealed. But importantly, that covers some of the hardware, Dunya, that we are also in the midst of rolling out
00:06:05
Speaker
our circular one, which is our cloud closed based software platform, which is integrating our closed loop network into IoT and Internet of Things platform. So we're confident this complete fusion of software and hardware will make circular much more secure, certainly more cost effective when you look at that chain and also scalable. And how has the industry responded to this approach?
00:06:35
Speaker
So yes, the response has been incredible. So to date, I think across the world, we operate in almost 2,000 bars and restaurants and hotels who've adopted the technology. And we expect this probably to double in the next 12 months. We've got more than 100 spirits brands who currently use the technology through our climate partner program.
00:07:05
Speaker
And our climate partner program is just an umbrella theorem for the brands and porters, distributors and venues that use the technology. And we have more than 400 on a waiting list, which is a great position to be in. And obviously, we're working hard to onboard
00:07:22
Speaker
those into the technology. Late last year, we announced the locations of eco plants in the United States where we've launched the closed loop service in California and Florida. We have more states planned in the US. We've just recently launched closed loop service in Canada and Denmark
00:07:45
Speaker
And as I had said, then, you know, we expect to be in 25, 26 countries right across Asia Pacific, Europe, the Americas by the end of the year. Importantly, we also have the industry leading brands and producers, so those global partnerships, including Perna Ricar, Diageo and Remy Concho, all
00:08:12
Speaker
participating with eco-spirits technology and rolling out across markets. And can you tell me more about the specific strategies and practices that you have implemented within your operations to ensure low carbon emissions and waste reduction? Yes. So the
00:08:35
Speaker
The specific strategies and actual practicalities of the operation, as I'd said, move the liquid and bulk to the local markets and they enter into, they're processed into a four and a half litre glass eco-tote.
00:08:55
Speaker
where it allows bars and restaurants and hotels then to remove the single-use glass and the cardboard and all the other waste that comes along with that. It provides, in terms of strategy, it provides quite a significant cost advantage, as you can imagine, and certainly a transformative carbon footprint reduction. So venues that use the ecosystem technology
00:09:24
Speaker
enjoy a variety of benefits. So up to 50% reduction in storage, 95% less physical glass and cardboard waste. You can imagine if you're working in a bar, you receive your glass bottles in a cardboard box. Once that glass bottle has been used, you still have to deal with it and also the cardboard.
00:09:47
Speaker
whereas the eco-tote is uplifted and removed and therefore the waste reduction is huge. And overall, eco-spirits can deliver 60 to 90% reduction in carbon emissions footprints of premium spirits and wine packaging and distribution.
00:10:07
Speaker
Um, since green new perspective is a podcast, uh, by marketing edges in your perspective, uh, we like to ask you some questions regarding the branding and the marketing strategies. So my next question for you is every, every brand has a story behind it. So when you were first starting out or, well, I don't know if you were working with echo spirits, but you might know the story. Uh, what was the vision of echo spirits identity?
00:10:35
Speaker
So you're right, Donnie, I wasn't part of EcoSpirits then and there is a compelling story. It was born out of a business need. Back in 2017, Paul and the founding team were running Proof and Company.
00:10:54
Speaker
They are a leading crafts business distributor across Asia Pacific. But in doing so and running that operation, they could see the amount of single-use glass packaging moving through the supply chain from Europe and then the Americas to where they were based in Asia. And they just started to question whether circular solutions were possible.
00:11:22
Speaker
probably at that point didn't know if any existing scalable circular packaging solutions were available and started to explore those options. And that vision evolved. And once it became clear that many in the industry shared that desire to follow a far more sustainable path, they could see the benefits both environmentally and financially.
00:11:49
Speaker
adopting the ecospirit system. And then developing the intelligence side, the development of Circular One system, which integrates the hardware, so the ecototes and the smart pores with the software platform is the way that really have been able to evolve that vision and really move towards a scale operation. And what were the biggest challenges, especially with the software?
00:12:20
Speaker
Yeah, there's a general consensus across our industry that sustainability is essential. It's essential, not just in wines and spirits, but globally it's essential for the future of certainly the bar and beverage sector.
00:12:42
Speaker
And as many will, I'm sure, echo that change is not always easy. This kind of transformation to a circular economy requires changing in behaviour at every point in the supply chain from the production of those spirits right through until the consumption in a bar or a tail.
00:13:11
Speaker
And so eco-spirits were working hard to make that transition process as seamless as possible and finding pioneering partners who can show others it can be done. And many of our early adopters have enjoyed the benefits of pioneering that technology.
00:13:34
Speaker
And in terms of marketing positioning, where do you see experience fitting within the broader landscape of Clinta, consistent mobility solutions? What we've been in an incredibly blessed position, Dunya, is that we have brilliant partners who have shared that vision. So whether that's been venues,
00:14:04
Speaker
like the accord that I mentioned, and trials with other large global hospitality organizations, whether it's the global drinks companies that we're working with, and also predominantly the premium spirits companies who have enjoyed
00:14:26
Speaker
being an early adopter and where, of course, there is significant value, particularly in a cost-effective sense, maybe because their economies of scale are not as large and where the cost of their bottles are significant. But I think what we're also seeing is consumers drive that change. So venues see and recognize when they make
00:14:52
Speaker
cocktails that are sustainable because of that supply chain,

Consumer Influence on Sustainability

00:14:58
Speaker
customers and their guests want to make those positive choices. And therefore that pool and that recognition across
00:15:11
Speaker
the general public is great because it is forcing in many respects that that whole supply chain to offer a far more sustainable solution. And what EcoSpirits technology does is it allows that to happen, but also in a cost-effective way.
00:15:33
Speaker
You mentioned that consumers are actually driving the change, but for those who are not aware of the benefits of echo spirits of your solution, do you, and if yes, how do you communicate the benefits of your product and your technology? Yes. As a circular economy technology,
00:16:00
Speaker
we see our role as being an innovator in the industry. You know, we're challenging some of the industry's longest held assumptions around packaging. And that is revolutionary. You know, primarily we work with brands and venues or climate partners, as I had mentioned.
00:16:21
Speaker
and we help them to communicate those benefits. So, for example, we have venues that have created special planet-friendly cocktails using spirits that are delivered only in the ecotote format. And that's great. Often we would do that by communicating through their cocktail lists and their drinks menus.
00:16:51
Speaker
Actually, as a live example, we're currently working with a solution with Avalon, who are the world's most planet-positive spirit, a Calvados made from apples. So the production of it is highly, highly sustainable and positive, along with London Essence, who have created
00:17:20
Speaker
fabulous technology that allows freshly infused tonics and mixers and removing all those teeny little glass bottles that we often see mixers and juices come in along with eco spirits to provide probably the world's most sustainable cocktail and that's great that given
00:17:46
Speaker
The sustainable spritz, I think, is what we're calling it. And many of the cocktail ingredients that are used within the cocktail are products that have been discarded at another point in the process. So there's a great story, but also there's a great taste. And as you know, I know that it's really important.
00:18:11
Speaker
So I think these sorts of things are important because our technology can also be used within a bar invisibly. It's important that guests and consumers know that the choices they make are having a positive impact.
00:18:31
Speaker
And their choices, as we know, will begin to drive organisations and companies towards a far more sustainable future. We do have, in addition to those sorts of activities, we also have our eco-spirits, forest and ocean programmes.

Carbon Footprint Reduction Efforts

00:18:53
Speaker
So we work with Green Steps, geotagging and proof of planting business and company.
00:19:01
Speaker
with those partners, we generate additional carbon mitigation beyond the substantial carbon footprint reduction that takes place through our technology. So under that forest program, every time an ecotote is filled
00:19:18
Speaker
goes to the venue, is emptied and comes back. A tree is geotagged and the partner venue is named as the owner of that tree. And how we often bring that to life, every venue has their own forest.
00:19:39
Speaker
They have their own URL where you can go and see their forest grow. And there you can see a picture of the tree. You can see a picture of the planter, the species, the impact that that's had.
00:19:53
Speaker
and also the brands that have contributed to that because that consumer, that guest and customer has made that choice to buy that cocktail. And we do that just by putting a little QR code on the menu and the customer can scan it and sees all that information. And of course, beyond that, there is the additional secondary benefits that that planter has
00:20:23
Speaker
has a job because of that, has been trained on how to use smartphones and all these additional benefits. But that type of activity really brings it to life because when you and I go and enjoy a gin and tonic weekend that's been delivered in an eco-spirits format, we can scan that QR code and see the impact and the benefit of the choice we've made.
00:20:48
Speaker
We're using ecology so it works a similar way. Use it as an agency to offset our additional emissions. So yeah, I know what you're talking about. As an industry pioneer, what advice would you give to other spirits producers of beverage companies that are considering adopting more sustainable practices? Yes. I think for spirits companies and drinks producers,
00:21:18
Speaker
I think we can say that we're convinced the future is circular. It is the single use of glass, not necessarily the glass itself, that is the problem. And that's why our technology... But do you feel that consumers think that glass is a fully sustainable and circular product?
00:21:46
Speaker
I think, Dunya, that glass currently benefits from a perception that it is cleaner and somehow doesn't contribute to the waste that something like plastics does. Now, if you look at the reporting from people like Zero Waste Europe and others,
00:22:16
Speaker
they have shown that actually single-use glass is far more harmful than any other single-use packaging. And people do perceive, and of course recycling is good in comparison to landfill. So it is good. But recycling a glass bottle still requires
00:22:43
Speaker
the vast majority of the energy required to produce a virgin glass bottle.
00:22:54
Speaker
I think one of our operators has started to talk about the amount of oil that is required to produce recycled glass. And I think only then would people start to think about, because you're right, Dunya, there is a perception that glass is somehow cleaner. But reuse is by far and away much better. And as I read on
00:23:23
Speaker
LinkedIn, I think, recently, you know, the story or the description or analogy that a book in the library being used thousands of times keeps the value within that book much more so than you buying a book and then
00:23:44
Speaker
reading it and taking it somewhere for it to be recycled, where the value of it is lost and it may be turned into something else, but of a much lower value. And of course, more energy has had to be used to do all of that. And I think we probably need to educate everybody in that this is a far better
00:24:09
Speaker
I think a far better future than trying to recycle because we operate in a number of small islands as well where recycling is just not an option. So there are no recycling facilities.
00:24:24
Speaker
and therefore everything goes into landfill or has to be removed from the island, which of course can be costly and indeed travels more miles. So glass is really important in the
00:24:42
Speaker
because we know it looks after wines and spirits very well, we just think how you use it and the reuse of it is a much better way than trying to recycle. And of course there's lots of excitement around the reuse economy today, but the challenge is finding those solutions that can deliver it on a global scale.
00:25:07
Speaker
But I think in answer to your first question, we're delighted to see an increasing amount of exciting sustainable packaging innovations appearing. Lots of companies are looking at how to tackle the problem.
00:25:23
Speaker
of both the packaging waste and carbon emissions. You know, we've seen the paper bottos from Friggle Pack and the initiatives, you know, Diageo's partnership with the UK Glass producer, Nturk, and, you know, to create the world's first net zero bottos at scale. So, you know, I think we see lots of other things happening, but I think your point is key, you know,
00:25:53
Speaker
helping people understand that reuse is really what we want to get to and recycling while it's better than landfill is not the optimum solution. Yeah, I've talked with some recycling operators and their point was that recycling should be the last option before landfill, but not the final option.
00:26:21
Speaker
And I feel like people not understanding how recycling works see it as a magical solution to reducing waste, not just packaging waste, but, you know, altogether. We definitely need to work more on educating people on how this circularity really works. So thank you for talking about circularity within the packaging industry.
00:26:47
Speaker
Yeah, I think our listeners are going to benefit from it. So your echo spirits has experienced growth and success in the market.

Global Expansion and Innovations

00:26:56
Speaker
So can you share some of the insights into your pipeline generation strategies and how you identify potential partners and customers who align with your sustainability goals, which is also important. Yeah, it is. And the partners we work with in different countries, they are licensed operators.
00:27:17
Speaker
So in each market, and they differ in size and their background, but they all share a desire that is to help lead that transition to circular.
00:27:30
Speaker
So the majority of our operators come from hospitality, drinks distribution or production backgrounds and they have the network and experience to drive growth in that local market. So that's what we look for and they very much drive that with their teams and their insight and their knowledge.
00:27:54
Speaker
to really expand and multiply the impact of our circular technology. Mm-hmm. And looking ahead, what excites you the most about the future of EcoSpirits? Maybe you were not here when the company started, but who knows how much you're going to, you know? Maybe you're going to be...
00:28:26
Speaker
Well, there's lots to excite. And there's lots of different areas. And I think one of the encouraging and exciting things has been
00:28:42
Speaker
the response of so many of our different climate partners so far and the interest in it. So that's incredibly, incredibly exciting as we roll out across the globe. And the range of brand owners and producers that we work with from the very largest and all of, I'm sure many of your listeners will know,
00:29:10
Speaker
through to some of the smaller operators too. I think one of the most exciting ones is that we've launched primarily with spirits, but we now have a circular wine solution. And that's just kicking off in Australia. We've been working...
00:29:38
Speaker
It is because there's a lot of wine and a lot of glass, single-use glass bottles, don't you? So it is incredibly exciting and we're looking forward to rolling that out and how that will operate and save billions of single-use glass bottles.
00:30:02
Speaker
while still being able to pour a beautiful and enjoyable glass of wine for customers around the world. So that's incredibly exciting. And I think primarily, at the moment, much of our technology is deployed within the on-premise. But we also have now rolled out some pilot activity with off-premise.
00:30:33
Speaker
technology as well. And I think that's incredibly exciting to see how therefore customers can interact with their technology. We've seen some developments of circular products in supermarkets and retail environments across the world.
00:30:54
Speaker
But this will be great to see how customers interact with our technology and how that develops. And my last question for you, Ian, is how can we as individuals support your mission, Echo Spirit's mission, and how can businesses support your mission? How can they join the circular team? Yes.
00:31:22
Speaker
So there are a number of things that if I think about businesses first and how they can support. I mentioned earlier, we're in a
00:31:36
Speaker
An incredible situation. We have a long list of brands and distributors and venues who are seeking to use the technology. And that's great. And I think I would encourage businesses to consider not just today, but also the future challenges of
00:31:58
Speaker
of having a supply chain that is not sustainable or aware, they are not utilising the most up-to-date technology that would allow for reuse rather than single use.
00:32:16
Speaker
I think for individuals, it's far more enjoyable. I would say look out for the bars and restaurants that you go to. Do they talk about eco spirits? And choose sustainable cocktails. So we've recently just launched an
00:32:38
Speaker
In the UK, we have Cointreau, an eco-tote, and we have Desde Lado de Aguave, Los Arcos, so you can enjoy a sustainable margarita.
00:32:50
Speaker
or with fair Catholic year and an avodka, you can have a fully sustainable Espresso Martini. So I think from that point of view, as a member of the public, that's one way. What we do know, Dunya, is that the choices that people make, the reputations and the
00:33:19
Speaker
credentials, the sustainable credentials that those products and those companies have plays a much bigger role in the buying patterns of all consumers. And I think we've certainly seen that and our venue partners have seen that. And therefore, we know that consumers, customers, guests all around the world are already playing their part in doing that. And I'm sure that will just continue.
00:33:48
Speaker
Well, Ian, thank you. This is the end of our conversation. I would like to toast you with a sustainable margarita right now.

Connecting with EcoSpirits

00:33:59
Speaker
But before we wrap up, can you tell our listeners, our audience, how they can connect with you and learn more about eco spirits and everything wonderful that you're doing?
00:34:11
Speaker
Yeah, of course, we do have, we have an Instagram page, so just going on to Instagram and going on to EcoSpirits. We can share all those links with you, Dunya, and you may be able to
00:34:35
Speaker
to share them as well, or put them on. You bet. Because it's not global is the Instagram feed. So that will allow people to see some of the technology, they'll be able to see some of the venues, some of the brands that are using it and the markets and where we are.
00:34:52
Speaker
already operating and we are on Facebook and of course have a web page as well and on LinkedIn. But Instagram probably brings it to life a little bit more with some of the videos and images which I'm sure some of them will find quite exciting. Well, thank you once again. This was wonderful. Thank you, Dunya. Thank you for your time.
00:35:23
Speaker
That concludes today's episode of Green New Perspective. We hope you enjoyed the conversation with Ian McPherson, Sales Director for Europe, Middle East, and Africa of EcoSpirits. To stay up to date with the latest episodes, be sure to subscribe to our podcast on your favorite streaming platform. Thank you once again for joining us, and remember to follow our podcast for the latest news in clean tech, biotech, agri-tech, and nature tech space. Until next time, bye.