Pay for the product, not packaging — how a chilean startup is innovating smart packaging

The six-month programme – which is led by Accenture, in partnership with Anglo American, Ecolab and Schneider Electric – helps circular innovators scale their solutions by providing them

with tailored support and mentorship, and connecting them with industry leaders. Algramo uses radio-frequency identification (RFID) tagged containers and internet of things (IoT) technology

to deliver product ‘by the gram’ to customers’ doorsteps on an electric tricycle stocked with refills. Users order whatever household products they need, schedule a tricycle visit and pay

via the app. They can then refill their smart containers, eliminating waste and providing flexibility as to the amount ordered. The Unilever pilot saw some customers refill their detergent

bottle 15 times, with each refill eliminating the need to recycle or send to landfill a 135g plastic bottle – removing the need for just over 2kg of plastic thanks to one Algramo product, it

claims. “Throughout the pandemic, we have seen an increase in demand for our refill services and IoT-connected vending machines, says Brian Bauer, Head of Circular Economy and Alliances at

Algramo. “We are now dispensing homecare, personal care and pet food in a manner that decouples packaging waste from consumption.” FINANCIAL BENEFITS FOR LOW-INCOME CUSTOMERS There are

financial benefits too. Algramo was founded in 2011 after then-student José Manuel Moller moved to the outskirts of Santiago and realized that lower-income consumers were often unable to buy

in bulk, forcing them to buy smaller amounts for higher prices. Moller estimates that this meant they could pay as much as 30-50% more than the same product in a larger container. So he set

up Algramo to supply small stores in poor areas of the city with vending machines dispensing household products. The company has since expanded with its home delivery service, launched

pilots with Unilever, Purina and most recently with Walmart and is now present in Santiago, New York and Jakarta. _This article was originally published in the World Economic Forum._

------------------------- _ALSO READ: An American city had unsafe drinking water and too many plastic bottles. Here’s what it did _ -------------------------