Australian-based sustainable packaging developer SECOS Group (ASX: SES) has been selected by Woolworths (ASX: WOW) to market its compostable products for sale through the supermarket giant’s network of Eco stores.
Commencing this month, SECOS will supply its 8L Kitchen Caddy Bag and 36L Bin Liner products to 86 Eco stores with a view to eventually expanding supply to the broader Woolworths retail network.
It will launch the products under the MyEcoBag brand in Australia and plans to expand the range to include MyEcoWorld for other bag offerings, as well as a MyEcoPet portal for compostable pet waste bags.
Households who participate in approved council food organic waste programs will be able to purchase the bags for containment and disposal of food waste directly into their green waste bins.
SECOS aims to replace traditional single-use plastic packaging with its earth-friendly bags and liners to facilitate the diversion of household food waste to organic treatment stations.
In 2012, it became one of the first companies in Australia to have its biopolymer resin and film products certified as compostable.
The resins are included in the manufacture of products such as bin liners, kitchen caddy bags and dog waste bags, and have the benefit of reducing greenhouse emissions and capturing organic food waste for processing into a fertile mulch.
SECOS chief executive officer Ian Stacey said the Woolworths appointment would be a good opportunity for the company to expand its retail presence.
It is currently working to garner market share in grocery and convenience stores across Australia, Mexico and the US.
“Many Australian councils are in the process of issuing households with kitchen caddies and compostable bin liners to enable them to divert food waste from landfill via their green bin waste collection,” he said.
“We are pleased to be able to broaden our product portfolio and customer base in what we feel will be a strong growth area in Australia and around the world.”
He said supply volumes would be subject to instore sales and ongoing demand.
Industry research shows of the 80 million tonnes of plastic produced each year worldwide for single-use flexible packaging, approximately 20 million tonnes is used to create up to 1 trillion plastic bags.
On average, each bag is utilised for 12 minutes.
Compostable alternatives have been shown to reduce the environmental pollution caused by a proliferation of plastic bags, which can take decades to break down.
At mid-morning, shares in SECOS Group were trading 82.14% higher at $0.102.
Shares in Woolworths were up 0.08% to $38.25.