Recycling × Sales Promotion Contributes to Society. Dentsu Group Japan, Lawson, Meiji, and Nakadai Holdings Launch Pilot Test for Circular Platform

As the need for collection activities grows in pursuit of a circular society, and as part of the Dentsu Group's management policy of "Beyond B-to-B: Engaging with Society (S)" Beyond B-to-B: Engaging with Society (S)' Beyond B-to-B: Engaging with Society (S)' Dentsu Inc. PROMOTION PLUS INC. Dentsu Inc. PROMOTION PLUS INC. "Beyond B-to-B: Engaging with Lawson, Inc., Meiji Co., Ltd., and Nakadai Holdings Co., Ltd. are participating in the pilot. We introduce the key points of this approximately two-month pilot, running until Tuesday, January 30, 2024, and explain what societal challenges this project aims to solve.

Realizing a Circular Economy Through Collaboration Between Businesses and Consumers

Advancing recycling and collection activities for unwanted items across society is urgent for realizing a sustainable society. However, while the need for environmental consideration is understood, it remains challenging to take action due to issues like the hassle for consumers and increased costs or lack of profit for companies.

Meanwhile, overseas examples show high collection rates achieved through systems promoting "collaboration" between businesses and consumers. For instance, Germany has a system where consumers return beverage containers like bottles and cans to retailers to get their deposit refunded. This system promotes collaboration between businesses and consumers not just by relying on goodwill, but by providing tangible benefits to consumers, thereby realizing a circular economy.

Drawing on such examples, the Dentsu Group leverages its marketing expertise and digital strengths to envision the "Don't Let It End PLATFORM" – a circular platform that connects mechanisms and initiatives to change societal and consumer awareness and behavior with the circular economy. This platform combines the "collection and recycling" of empty containers with "promotional incentives" like coupons and points. This mechanism promotes the collection and recycling of empty containers and other items through "collaboration" between consumers, manufacturers, retailers, and recycling companies.

The name "Don't Let It End Here" embodies our desire for this platform to be continuously needed as social contribution infrastructure, not just a one-time campaign or event. To achieve this, we will verify through the pilot test whether it can balance business viability with social contribution and deliver stable results.

Promoting Collection Through a Dynamic Partnership of Distribution, Manufacturers, and Recyclers

This pilot involves one company each from distribution, manufacturing, and recycling. Lawson, a convenience store chain serving as a familiar distribution infrastructure and point of contact with consumers, participates in distribution. Meiji, a manufacturer strengthening sustainable activities across the entire milk supply chain through partnerships with dairy farmers and milk carton collection, participates in manufacturing. Nakadai Holdings, which builds domestic resource circulation systems and networks, participates in recycling.

The pilot project will focus on recycling paper-packaged products (*1), starting with "Meiji Oishii Milk". First, consumers will deposit used paper-packaged products and their plastic caps into resource collection boxes installed inside three participating Lawson stores in Tokyo. At the same time, they will use their smartphones to scan the JAN code of the product they wish to recycle via a dedicated website, register the item, and press a button to confirm disposal. Upon doing so, they will receive a discount coupon usable at Lawson stores (*2). The collected paper cartons will be recycled by Nakadai Holdings.

Recovery rate for used paper cartons remains low at 30%

The paper cartons targeted for collection in this pilot project are actually recyclable resources with a relatively low collection rate. According to a survey by the National Milk Container Environmental Council, the recovery rate for paper cartons has shown little improvement over the past decade, with the recovery rate for used cartons specifically remaining around 30% (Note 3). For comparison, the recovery rate for PET bottles exceeds 90% (Note 4). While not widely known, the lack of progress in paper carton recovery is a significant social issue leading to the loss of valuable resources.

The main reasons for the low recovery rate of paper cartons include lower consumer awareness of sorting and interest in recovery compared to items like PET bottles, and the fact that many local governments do not include them in their designated sorting categories. Many municipalities do not collect paper cartons, limiting collection points to recycling bins at supermarkets and similar locations. The lack of infrastructure for consumers is also a major factor.

This pilot project aims to address these challenges by offering incentives (coupons) based on the amount collected and by installing collection boxes at convenient stores, which are readily accessible in daily life. Simultaneously, for manufacturers and convenience stores, this creates opportunities for repeat customer visits and serves as a promotional and marketing tool for their products, providing strong motivation to actively participate in recycling and collection efforts.

The pilot will run until Tuesday, January 30, 2024, evaluating changes in consumer awareness and behavior, the volume of collected paper cartons, and the promotional effectiveness of discount coupon initiatives.

Furthermore, while the pilot is ongoing, we continue to recruit participating companies. Together with more stakeholders, we will advance the societal implementation of the circular economy.

"Don't Let It End Here PLATFORM" Pilot Test Overview
■Participating Stores
・Lawson Kita-Otsuka 1-chome Store (Kita-Otsuka, Toshima-ku, Tokyo)
・Lawson Gate City Osaki Atrium Store (Osaki, Shinagawa-ku, Tokyo)
・Lawson Yotsuya Samoncho Store (Samoncho, Shinjuku-ku, Tokyo)

■Period
Service Operation Period: Thursday, November 30 - Tuesday, January 30
Coupon Redemption Period: December 1 (Fri) - January 31 (Wed)

■Eligible Products
・Meiji Delicious Milk 900ml, 450ml, 200ml paper cartons
・Paper carton-marked products sold at Lawson stores
・Plastic caps attached to the above products

■Participation Page
https://lsp-campaign.com/de-owarasenai/lp.go

The "Don't Stop There PLATFORM" lets you shop smart by participating in resource recovery. We create systems that benefit both consumers and businesses, fostering structures that make it easy to join social contribution activities. We will continue to share the results and future developments of this project on the "Transformation SHOWCASE".

※1 Products sold at Lawson with the paper pack mark (aluminum-containing items and paper containers/packaging are not eligible)
※2 Adding the Meiji LINE Official Account as a friend is required to obtain coupons
※3 Source: National Milk Container Environmental Council "Basic Survey on the Current Status and Trends of Beverage Paper Container (Paper Pack) Recycling: 2021 Recycling Actual Conditions"
※4 Source: PET Bottle Recycling Promotion Council "Trends in PET Bottle Collection Rates (Conventional Indicators)"