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Synlait launches stainless steel milk bottles in South Island supermarkets
video

TINA MORRISON

Last updated 05:30, October 5 2021
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Synlait is selling a stainless steel reusable milk bottle through
supermarkets.
Supplied

Synlait is selling a stainless steel reusable milk bottle through
supermarkets.

Synlait Milk is launching [16]the first product under its own brand
today, a reusable stainless steel bottle of milk that will be available
initially in two South Island supermarkets.

The 1.5 litre bottle of homogenised milk will be on sale from Tuesday
for $15.29 at New World supermarkets in Ilam and Fendalton in
Christchurch. The initial cost includes $9.99 for the Synlait Swappa
Bottle and $5.29 for the milk. Subsequent purchases when customers
return their bottle to store will cost just $5.29 for the milk.

Synlait is branching out from being a manufacturer of products for
other companies to developing its own consumer brands after
[17]acquiring Dairyworks in 2019, which supplies supermarkets with
Dairyworks, Rolling Meadow and Alpine products. Its move into
Synlait-branded milk comes after several years’ experience
[18]supplying Foodstuffs South Island with fresh milk and cream under
its Pams and Value labels.

The supermarket group will monitor sales at the two pilot stores and
should have a good understanding of consumer uptake within two to four
weeks, Reid said.

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“If we hit the numbers that they want us to hit, then they will start
rapidly rolling us out to other stores,” said Synlait director of
sustainability and brand, Hamish Reid. “It would be brilliant if we got
national coverage within a few months.”

Synlait swappa bottles come off the production line at the milk
factory.

Reid, who joined Synlait in 2017 with a background in consumer food
marketing, said Synlait has “oodles” of milk available from its 280
farmer suppliers to support a national roll-out.

Private label brands like Pams account for some 70 per cent of fresh
milk sales nationally, with the remaining 30 per cent taken by
Fonterra’s Anchor brand and Goodman Fielder’s Meadow Fresh. Smaller
brands like Lewis Road make up only about 2 to 3 per cent of the total
market.

Synlait would like to carve out a “double-digit” share of the branded
milk market, Reid said.

The cost of taking back the swappa bottles for washing and refilling
precludes Synlait from competing with the more price sensitive
private-label market, he said.
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Still, even a reasonably modest market share would remove a lot of
plastic bottles from the market, he said.

“New Zealanders have been telling us for years that they are deeply
concerned about plastic waste, but in milk there haven’t been many
options,” he said. “Synlait Swappa Bottle is a step in the journey
towards eliminating plastic waste.”

The company has been working on the sustainability project for several
years and considered other materials such as glass, recycled plastic
and plant-based plastic but “pretty quickly wrote them off”, Reid said.

“Milk in glass bottles is actually a bit of an environmental crime
site,” he said. “We eliminated that really from day one.”
Synlait supplies Foodstuffs in the South Island with fresh milk and
cream under the supermarket’s Pams and Value brands.
Supplied

Synlait supplies Foodstuffs in the South Island with fresh milk and
cream under the supermarket’s Pams and Value brands.

Glass was heavy to transport, and most recycled glass was downcycled
into lower value products like roads and footpaths with only a few
niche companies taking glass bottles back to clean and refill them, he
said. Milk in glass bottles also deteriorated quickly due to its
exposure to light, he said.

“It’s a bit of a nostalgic kind of throwback really,” he said. “It’s
something that people will always hark back to, those golden days when
we used to get milk delivered to our doorstep. The reality was it was
really poor quality.”

The centralisation of milk production means milk now has to travel a
long way, and shipping heavy glass around the country increased the
product’s carbon footprint, he said.
Synlait director of sustainability and brand Hamish Reid says contrary
to what many people may think, milk in glass ...
Supplied

Synlait director of sustainability and brand Hamish Reid says contrary
to what many people may think, milk in glass bottles “is actually a bit
of an environmental crime site”.

Synlait wanted to do something “really radically different” from
plastic, in line with its purpose of ‘doing milk differently for a
healthier world’, he said.

Reid said he hoped the swappa bottles could be used hundreds of times,
and testing of prototypes at home showed they were “really robust”.

If consumers took to milk swappa bottles, the company planned to roll
out other products in similar containers.

The model has taken off overseas, pioneered by TerraCycle’s Loop
initiative which partners with big global companies like Nestle,
Unilever and Procter & Gamble to offer re-usable containers.

Synlait hoped other companies would also embrace the concept, allowing
costs for infrastructure like reverse vending machines in stores to be
shared, Reid said.
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Establishing the company’s credentials as a domestic brand will help
Synlait expand into selling its branded products overseas.

“We think there are lots of opportunities for our business and other
businesses in New Zealand to own more of the value chain, to take a
bigger slice of it rather than giving too much of it away in commodity
prices for businesses abroad to realise the full benefit from,” Reid
said.

“We could be producing way less food with a lower environmental impact
and we could be selling it for a lot more if we are smarter and that’s
what Synlait is really trying to pioneer.”
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