Ghirardelli Chocolate - reusable packaging for internal logistics | Knowledge Hub | Circle Economy Foundation
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Business case
Ghirardelli Chocolate - reusable packaging for internal logistics
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Ghirardelli Chocolate company in San Leandro in the United States switched to reusable totes to cut packaging costs, prevent cardboard waste, and reduce product breakage. The reusable tote solution will allow Ghirardelli to realize $1.95 million in net packaging reduction savings over the five-year life of the project. In addition, it means that workers are less likely to develop repetitive stress injuries from taping and opening cardboard boxes.

Problem

Ghirardelli had been spending $520,000 a year on 580,000 cardboard boxes for internal distribution. These boxes would get soiled with use and so were thrown in the trash—resulting in an additional $2,700 spent on disposal. What’s more, the boxes tend to collapse when stacked, crushing the chocolate inside.

Solution

The StopWaste Partnership assessed Ghirardelli’s operation and identified reusable totes as a potential solution. The StopWaste Partnership then provided a cost benefit analysis and a $75,000 grant to help offset the large initial investment and get the project rolling.

Outcome

Material impact: 350 tons of cardboard waste prevented per year

Financial impact: $520,000 reduced packaging purchases a year, 325% return on investment, 1.2-year simple payback period

Social impact: decreases repetitive stress injuries

Additional information

Ghirardelli also buys sugar and cocoa butter in bulk to cut costs and increase efficiency. Silos at the plant are filled directly by a tanker truck, eliminating all packaging. The company also recycles cardboard and scrap metal, composts chocolate hulls, and donates edible outdated chocolate.

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