A package makeover for Kirkland Signature Tempura Shrimp greatly reduced the size of the box. The original version is in the back.

Spotlight on packaging

Costco’s quest to reduce waste while protecting goods

by TIM TALEVICH

When the concept of value is mentioned at Costco, discussion often focuses on product quality: the freshness of the apples, the size and taste of the famous pumpkin pies, the convenience of big packs of Kirkland Signature™ bath tissue. Now, Costco buyers are looking hard at how those items are packaged, as part of the company’s sustainability efforts. In addition to how an item is made, the way it is packaged is becoming a core part of the item’s value.

“The goal is to reduce packaging waste, while still protecting products, ensuring food safety and complying with laws and regulations,” says Tim Wahlquist, who oversees Costco’s packaging team. “It’s a complex process,” he explains, “because new packaging must be an improvement—for example, the cardboard for boxes that replace plastic should come from certified forests, ensuring the wood fiber used in them is responsibly sourced.”

Costco recently adopted packaging guidelines, with the initial focus on Kirkland Signature products, where buyers have the most control.

The guidelines ask:

• Can the package be smaller, using less material overall?
• Are boxes and plastic containers made from recycled materials?
• Regarding cardboard specifically, if it’s not made of recycled fibers, do the fibers come from certified forests?
• Are the new packages recyclable or certified compostable?
• Is labeling clear to help members know how to dispose of the package?

Success stories so far

New packages meeting these standards are starting to show up in numerous product categories.

A good example is the Kirkland Signature line of nuts. Transitioning these products from plastic jars to bags means 85% less plastic is used in the packaging, without sacrificing quality.

The packaging for Kirkland Signature Tempura Shrimp also underwent a makeover—a foam tray was eliminated and the box is smaller. The result is that 250,000 pounds of paper and plastic packaging will be eliminated each year from this product alone. Also, smaller packaging means more items can fit on a truck, reducing transportation costs.

At the same time, because the primary goal of packaging is to protect the product and make sure it isn’t damaged or destroyed, “there are some cases where using plastic packaging still makes sense,” says Wahlquist. He explains that significant resources—such as water, materials and energy involved during the manufacturing and growing process—are wasted when products are damaged.

“Until feasible alternatives are available, Costco’s goals are to have plastic packaging made from recycled content and be widely recyclable,” Wahlquist says.

Seeing the bigger picture

The focus on better packaging is part of Costco’s broader sustainability goals. These cover all aspects of the company: how it sources food, with an aim to protect people, lands, forests and oceans; how it operates its more than 850 global warehouses to use energy and water wisely, and minimize waste through donation and recycling programs; and how it supports local communities.

In creating its sustainability programs, Costco aligned its objectives with the global Sustainable Development Goals developed by the United Nations as an urgent call to end poverty and improve communities around the world, while tackling climate change.

One of those goals calls for responsible consumption and production. “Packaging is part of that effort,” says Sheri Flies, Costco’s vice president of sustainability and compliance. “We’re committed to doing our part in this vital area.”

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