ACM: competition rules offer room for collaboration on recycling of coffee capsules
The Netherlands Authority for Consumers and Markets (ACM) is favorable to a collaboration between producers of coffee capsules aimed at recycling more plastic and aluminum coffee capsules. Nine producers of coffee capsules will make joint investments in sorting machines, as a result of which waste-processing companies will become better at picking out coffee capsules from the residual waste. The waste-processing companies will subsequently ensure that the capsules are recycled. The Royal Dutch association for coffee and tea companies (its full Dutch name: De Koninklijke Nederlandse Vereniging voor Koffie en Thee, or KNVKT) had asked ACM to test this collaboration against the competition rules. ACM carried out an informal assessment of this collaboration, and does not see any objections. For example, ACM did not find any risks of price increases or exclusion of competitors as a result of this initiative. At the same time, ACM does find it important that, in addition to this collaboration, the producers continue to innovate in order to make coffee capsules more sustainable.
Martijn Snoep, Chairman of the Board of ACM, adds: “Businesses are allowed to collaborate in order to realize sustainability goals. In fact, the Dutch Competition Act offers such opportunities. We are ready to help businesses find answers to any questions they may have regarding such collaborations. Various businesses and organizations have already come forward and discussed with us their initiatives, which help realize the transition towards sustainable energy and other sustainability goals. We welcome such steps.”
Recycling of coffee capsules
Most coffee capsules are made from aluminum or plastic. A large share of all capsules is discarded and incinerated. Coffee-capsule producers (which represent 90 percent of the market) wish to change that with this collaboration. The following producers are involved: brand owners Jacobs Douwe Egberts, Nestlé, Nespresso, and Simon Levélt, as well as private-label producers Ahold Delhaize Coffee Company, CAPPAC, Euro Caps, Beyers Koffie and UCC Coffee Benelux. One key element of this collaboration is that they will make joint investments in technologies (such as sorting machines) that will make it easier for waste-processing companies to pick out coffee capsules from the residual waste. Waste-processing companies sort the coffee capsules, and subsequently transport these capsules to the location where they will be recycled.
ACM has informally tested this collaboration against its Policy Rule regarding ACM’s oversight over sustainability agreements, and does not see any objections. Higher levels of recycling will contribute towards a circular economy. ACM does not see any risks of adverse effects on competition, such as price increases. In addition, the producers that participate in the initiative do not exchange any competition-sensitive information, and other producers and waste-processing companies are also able to participate in the collaboration. ACM does have one point of attention for the KNVKT, which is to ensure that the initiative has no negative effect on investments in making coffee capsules more sustainable in ways other than through recycling. ACM finds it important that producers of coffee capsules continue to invest in other possibly sustainable options. One other option for packaging material is, for example, a compostable capsule.
ACM and sustainability
Sustainable production and consumption are essential for a sustainable society. ACM’s oversight over sustainability claims of companies helps realize that. Consumers must be able to make more sustainable choices with confidence. Businesses that undertake sustainability efforts must be protected against businesses that compete unfairly by using misleading claims. In addition, ACM wishes to create the right conditions for promoting the transition towards a more-sustainable economy. ACM takes away impediments, and creates opportunities where possible. For example, ACM provides answers to questions about in what situations competitors are allowed to collaborate in order to realize sustainability goals.
When in doubt about their sustainability arrangements, businesses have the opportunity to contact ACM with their questions. They can do so by sending an email to info [at] acm [punt] nl.
More information about collaborations and sustainability? Visit Arrangements between businesses about sustainability (in Dutch).