Unilever has run over 50 refill and reuse pilot projects since 2018, seeking ways to help reduce the company’s virgin plastic use. Learnings from these trials are helping to shape strategies for reducing single-use plastic packaging, including flexible plastic sachets.

Unilever’s teams in Indonesia, Bangladesh and Sri Lanka to find out how they are evolving refill solutions within their respective markets.

Building on Unilever’s waste bank network in Indonesia

In 2020, Unilever piloted a refill machine, selling home and personal care brands like Dove, Rinso and TRESemmé, in a packaging-free store in Jakarta. The company also introduced two digital machines in an apartment building and a general trade kiosk. These trials taught Unilever that affordability, convenience and dosage control matter most to Indonesian consumers.

Unilever then tested an even more convenient refill model, with motorcycle drivers selling door-to-door from large jerrycans. This was more popular than either machine, but high operational costs made scaling this model challenging. However, the simple pouring system worked well.

To build on this, the company began working with local partners like Alner, a TRANSFORM enterprise, introducing scalable manual refill stations to local stores (warungs) and the company’s growing network of waste banks across Indonesia. Today, Unilever serves an estimated 6,000 customers at 1,000 refill stations, saving approximately 6 tonnes of plastic per year.

Designing refill solutions customized for consumers in Sri Lanka

In 2019, Unilever worked with sustainable technology provider Vega Innovations to install two large high-tech refill machines in modern trade outlets. Each machine offered set amounts of personal and home care products, from brands like Dove, Sunlight and Sunsilk.

Initial responses to the pilot were promising. However, Unilever wanted to expand its reach to include general trade, which accounts for the majority of the market, and increase access for low-income customers who tend to buy smaller quantities of products more regularly, so the company broadened its approach.

Unilever redesigned its machines to eliminate fixed volume options, allowing consumers to choose the exact amount they purchase, according to their needs and budgets. The company also placed machines in more convenient locations like railway stations and apartment buildings for better accessibility. Offering savings of up to 20% compared to prepackaged prices, the refill machines help cater to consumer expectations of affordability, convenience and quality.

Bangladesh: innovating with the local market in mind

In 2021, Unilever tested self-service refill machines in modern trade stores in Bangladesh. Despite the machines’ advanced features, they proved challenging to service and maintain. Unilever wanted to develop a lower-tech solution that was more scalable, required less maintenance and better served the general trade market in Bangladesh.

After a year of prototyping with Bopinc, another TRANSFORM-funded organization, Unilever created a user-friendly, cost-effective machine that fits on store counters. Dispensing multiple products including Sunsilk, Dove and Lifebuoy, in varying amounts, Unilever’s machines offer the premium experience of prefilled bottles at lower prices.

Bopinc’s expertise in early consumer engagement, innovative distribution models and creative behavior change campaigns was instrumental in helping to bring the machines to market. The machines provide real-time sales data, helping to understand consumer preferences and price points to develop more valuable product offers. Approximately 43% of users are now returning customers.

Testing, learning and scaling sustainable packaging solutions

Unilever is working to ensure 100% of its plastic packaging is reusable, recyclable or compostable, by 2030 for rigid plastic and 2035 for flexible plastic. Every pilot offers fresh insights to help find new ways to do this and reduce the company’s virgin plastic footprint.

This requires commitment across every level of the supply chain, from manufacturers and retailers to the waste management industry and governments. It is also clear that concerted voluntary efforts can only go so far, which is why supportive regulations will be essential for reuse solutions to grow at scale.

Unilever is advocating for enabling policies with the Business Coalition for a Global Plastics Treaty and working pre-competitively with its peers and partners, like the World Economic Forum and Ellen MacArthur Foundation, to agree on a common set of reuse definitions and metrics.