Daily Newsletter

08 August 2023

Daily Newsletter

08 August 2023

Lidl to introduce fully compostable teabags

The move will assist the retailer towards its 2050 single-use plastic reduction goals.

RanjithKumar Dharma August 07 2023

Germany-based discount supermarket chain Lidl has unveiled plans to roll out fully compostable teabags, as part of its sustainable initiatives.

The plant-based, compostable teabags can be disposed of in either food or green waste bins at consumers' homes.

This move will enable the retailer to redirect approximately 800 million teabags away from traditional waste bins and, consequently, from ending up in landfills.

Produced using plant-based plastic called polylactic acid, the new teabags maintain the previous version's quality and flavour whilst being compostable.

Lidl's own-brand teabag varieties, ranging from its Deluxe Fairtrade Assam Tea to Knightsbridge Gold Blend Tea and Red Label Tea, will undergo this change.

The retailer will introduce these teabags in its stores within the next few months.

This initiative is part of the company’s ongoing efforts to lower its own-label plastic packaging by 40% by the end of 2025.

Lidl's head for Responsible Sourcing and Ethical Trade Shyam Unarket said: Those buying teabags from Lidl are supporting our efforts to reduce single-use plastic going to landfill.

“We understand that even a few small changes to our products can benefit our customers, while helping us improve our impact on the planet - one cup at a time.

In June this year, Lidl announced the integration of Prevented Ocean Plastic into its one-litre San Celestino Italian sparkling mineral water bottles.

The retailer utilises a minimum of 30% Prevented Ocean Plastic in its water bottle packaging.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.

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