In Waste Management, There’s a Crucial ‘R’ Often Overlooked – and It’s Not Recycling

August 19, 2024 Impact Team

Impact In Numbers

Key Insights

Impact Interview is our initiative where we explore the stories of changemakers and the initiatives they have developed to support sustainable development in Indonesia. This time, we are joined by Renata Felichiko Nurandhita (Renata), Chief Commercial Officer at Alner.

Hi Renata, can you give us a brief introduction about Alner and what problem is Alner trying to solve?

Alner is an Indonesian based startup that focuses on reusable packaging for your everyday needs such as FMCG products – like the shampoo you use and the cleaning products that you use to clean your house. Our main goal is to actually reduce single use plastic waste.

So what we sell in is not necessarily Alner’s product but we work together with brands and companies so we can sell their products using our reusable packaging.

Although our packaging is actually mostly made from plastic, it’s reusable plastic that can all be recycled and also is made from recycled materials also.

So what we emphasize here is not to not use plastic anymore but to reduce single use plastic. Some of the products that you buy in the supermarket can actually be reused at home, but if not reused, you will just throw it out and hence making it single use plastic.

We offer brands and companies solutions such as using our reusable packaging or facilitating the reuse of their existing packaging.

The issue from our experience is despite the brands being able to implement the reusable packaging themselves, they would have difficulty with the collection and processing of the used bottles.

Collecting the used packages can be very expensive because if you don’t have a reverse vending machine or a return point not everyone will actually return the reusable packages, customers will most likely just forget and just throw it out.

The bigger problem also lies with the sachets – that’s the ultimate single use packaging actually. To convert people who usually use the sachets every day to using reusable packages is very hard because reusable packages with that small size would be very expensive.

Moreover, they will still find it more convenient to just buy a sachet and just throw it out. So it’s a long habit that needs to be changed starting from now and we need to just keep reminding each other to be disciplined.

Alner is a part of a bigger ecosystem - there's the FMCG brand, then there's the warungs and there's also the consumer. Can you paint a picture for us on how Alner interacts with these different stakeholders?

At Alner, we work under two types of model. We either sell to the partners who become our resellers (usually these are small businesses) or we sell to the end customers directly.

In order to do that we collaborate with the FMCG brands for the product side, especially with FMCG who also have a mission to also go green.

Most FMCG brands are now still focused on the recycling aspect, so they just change their packaging to one that could be recycled. Still, not everything will or can be recycled.

We collaborate with FMCG brands providing our bottles or packages, which they fill at their factories. We then distribute, collect, and wash the packaging, continuing the cycle. If a brand already has reusable packaging, we assist with distribution, collection, and washing.

For end customers and small businesses, especially resellers, we introduce our products first. Our resellers are typically individuals aware of waste issues, such as waste banks and small warungs. These resellers, already familiar with the reuse system, help educate their customers about it. They are motivated to join because it not only raises awareness but also benefits their business. They continue selling the same products but in different packaging, with Alner promoting the reuse system and offering cashbacks to resellers.

Cashbacks work by returning the empty packages to us, at which point we refund the cost of the packaging. Essentially, this cashback is the payment for the bottle deposit. Once you return the bottle, you no longer need to pay for it. Typically, 20% to 40% of a product’s cost is attributed to its packaging. This encourages resellers and users to return the packages, as it benefits them financially. When they repurchase, it feels like a discount since they are only paying for the refill. It’s similar to buying gallons of water: you initially buy the gallon, then each time you reorder, you return the empty one and only pay for the water.

Packaging for some companies is a way for them to differentiate themselves and attract customers. When they use Alner’s packaging, will they be sacrificing the ability to distinguish themselves through packaging?

Interestingly, over 40% of our partners are small local businesses. We collaborate with them primarily on kitchen essentials like salt and biscuits. Typically, you would buy biscuits in a plastic jar, and we offer a similar reusable jar.

These businesses can use their branding with our specially designed stickers, which can be reused up to 50 times. The stickers hold up well against machine washing, even with hot water. This way, we can ensure their branding remains intact while also including information about returning the jars for cashback through Alner.

For small businesses and non-food products, we use bottles, for instance with our cleaning products. These sturdy bottles, which are not easily breakable, have become a selling point, with many customers claiming that they are attracted to buying the products because of the appealing packaging. We also invite brands to collaborate with us when designing stickers so that it features their branding and relevant information if they choose to use our packaging.

Can you share more about how Alner cleans these bottles? Do you leverage technology and automation to do so ?

We are confident in offering our washing service to brands. Each month, we conduct rigorous cleaning tests in collaboration with a lab to ensure the quality of our cleaning process.

Additionally, we have a specialized machine designed for washing bottles. This machine has been customized to accommodate the many bottle sizes, and takes into consideration the challenge of cleaning bottles with narrow openings and wider bottoms.

Despite using machines, the cleaning process is not fully automated; our staff also double checks to ensure thorough quality control.

How has the response been so far? Do you see enthusiasm from both brands and consumers alike?

Our customers and resellers have responded positively to Alner’s approach to the reuse system. For them, using Alner products and returning the containers reduces household waste, keeping their homes cleaner. They also find it very convenient since they only need to store the bottles until they return them; a simple rinse is enough, so there’s no need for thorough cleaning.

Moreover, they find our system economical. Most of our products are competitively priced, and while the initial cost for certain items might be slightly higher, the overall expense becomes lower than that of single-use packaging once they start returning the bottles.

For our partners they find several benefits in collaborating with us. First, it simplifies their inventory management. Typically, they need storage space for packaging and must restock regularly. With Alner, we collect, clean, and return the packaging, eliminating the need for them to store extra packages.

Second, it is more economical for them. Instead of purchasing new packaging each time, they only pay for our washing and collection services. Our pricing for these services is usually lower than the cost of new packaging, including stickers, making it a more cost-effective solution.

Where are you currently operating these services? How do you measure the scale and impact of your services?

Currently, we operate in Jakarta, specifically in the Jabodetabek area. Our customers are spread across this region, including some as far as the outskirts of Bogor, which is a two-hour drive from Jakarta. Interestingly, these distant customers consistently make repeat purchases every month, showing that there’s a strong demand for our services.

Understanding our impact beyond just financial metrics is extremely important. By tracking our sales and the number of returned bottles, we avoided approximately 138,000 single-use packages last year alone. This averages out to 11,500 avoided packages per month within Jabodetabek only!

Typically, customers return packages not in the same month they purchase but during their next monthly grocery shopping trip or within three months. With that in mind, we measure the packaging return rate over a period of one year, to account for the gap between purchasing and returning – currently this number has been consistently hovering around 70%.

Additionally, we have avoided more than 20,000 kilograms of CO2 emissions since 2021. We deliver products using our couriers and employ electric motorcycles for nearby areas.

For washing, we use a water treatment system, ensuring no water waste and allowing us to reuse processed water, creating a closed-loop system.

I'm interested in diving into how Alner distributes these reusable bottles. How does distribution work?

We have our in-house courier service to ship products and collect empty bottles. When customers order directly through our online channels, they often request our couriers to pick up the empty bottles during the delivery of new orders.

As for our resellers, customers typically return products to the reseller’s location. For example, if someone purchases Alner products from a waste bank in South Jakarta, they would return the empties to the same waste bank, though they are free to return it to other resellers as long as they are within the Alner partner network.

Excitingly, we recently launched our Experience Store at our office on April 1st. This in response to numerous inquiries we receive about having an offline store where customers can interact directly with us.

At the Experience Store, customers can explore our products, feel the bottles, ask questions about the brands, and even participate in refills.

We’ve partnered with Unilever for a transformative project, enabling customers to refill their Unilever products at our station using their own bottles. Additionally, our Experience Store features a reverse vending machine for those who prefer to return bottles directly to the machine.

Alner is competing with single use plastic that is distributed practically everywhere (supermarkets, warungs, marts). What strategy is Alner exploring to ensure that it can compete with single-use plastic in terms of distribution?

We’re introducing a reverse vending machine in our Experience Store. This machine will serve as a trial to gauge customer’s reaction – whether they find it easy to use and convenient. As we’ve just implemented it for roughly a month, it’s currently still in the validation phase.

If this initiative proves to be successful, our plan is to explore collaborations with other venues such as malls, schools, or office complexes to install these machines, providing convenient bottle return points.

In addition to the reverse vending machine initiative, we continue to offer a free bottle pickup service. This service is aimed at encouraging customers to return their bottles and is currently free to start building the habit first.

There are still many areas in Bali experiencing drought and lack of clean water, which is what we are increasingly wary about.

Apart from conservation efforts, we also campaign for the importance of using rainwater. We target school children, the general public, and entrepreneurs, including the tourism industry.

Waterbom, for example, has supported the Bali Water Protection program by donating sumur imbuhan (recharge well) technology developed by the Bali State Polytechnic.

This well is designed to increase the absorption of rainwater and return it to the ground more efficiently. To date, almost 100 of these sumur imbuhan (recharge wells) have been created through the Bali Water Protection program.

When we were researching into Alner, we noticed that you've been involved in various initiatives like the ADB. How has participating in these initiatives contributed to Alner's journey?

Our goal is to run the business sustainably, generate sales, and achieve profitability. However, we understand how important it is to learn and gain experience to kickstart our journey.

Participating in initiatives such as the ADB has been instrumental in our growth. It has allowed us to expand our team, acquire necessary equipment, and prepare to engage with larger brands to join our cause, supplying products for us to sell.

Moreover, it has provided us with exposure to other organizations sharing similar goals, bridging potential collaboration opportunities. For instance, through the ADB, we’ve established partnerships with additional “mitras” (partners). These mitras provide valuable insights on how we can expand.

What are some future expansion plans for Alner?

For our expansion plans, we want to focus on optimizing the current pickup and delivery operations first before expanding to other areas outside of Jabodetabek.

Secondly, we believe that there are a lot of products that could benefit from a reuse system. Thus, our goal is to broaden our product range. Currently, we collaborate with approximately 10 to 15 brands, having a product range of around 200-300 items already – we definitely believe we could do more.

Various products in Alner's reuse packaging

Furthermore, we are beginning to explore other product categories beyond FMCG. For instance, we are in conversations with local businesses such as coffee shops to offer reusable packaging for their beverages. Given that many coffee shops have started to sell their coffee in 1-liter bottles driven by the pandemic, we think that there is an opportunity to introduce a reuse system for these products.

What are some of the significant lessons your business has learned throughout its years of operation? What advice would you offer to someone starting their own social enterprise?

Firstly, I would emphasize the importance of flexibility in navigating unexpected situations. Initially, in 2020, our target users were primarily resellers – small businesses with whom we sought partnerships to distribute and educate about our products.

However, the onset of the pandemic drastically shifted the landscape, making it challenging for businesses to survive. Recognizing the need to adapt, we pivoted towards establishing an online presence to directly reach end customers. This shift proved successful, as we discovered there’s significant demand for our products digitally and interest in embracing reuse practices.

Secondly, I would stress the significance of actively listening to customer feedback. Customer input serves as a crucial guide in shaping how a business operates. While it’s essential to have a vision for your product or service, it’s equally important to remain receptive to customer perspectives.

Listening to their feedback allows you to address concerns, refine offerings, and ultimately enhance customer satisfaction. For instance, feedback regarding packaging aesthetics and information on stickers has played a pivotal role in shaping our product's evolution.

If people want to learn more about what Alner does and try out your services, where can they do so?

Learn more about Alner by clicking their social links below

Share this article