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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.

   READ MORE:
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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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