Great Hopes
When Loop launched in January at the 2019 World Economic Forum in Davos, it looked set to be a game changer. It already had many of the top CPG companies onboard – Carrefour, Coca-Cola, Danone, Mars, Mondelēz, Nestlé, PepsiCo, Procter & Gamble, Tesco, Unilever… – and
press talked of how Loop offered a “
revolutionary zero-waste e-commerce system” and planned to
“eliminate plastic waste and save the planet.”
Founded by TerraCycle, a waste management company with operations in over 20 countries, Loop followed the milkman model, delivering product in reusable containers that it would collect and clean for reuse.
Consumers would shop for items on a dedicated e-commerce site, paying a refundable deposit for the container, with products delivered in a Loop tote that would be used to return containers. A zero-waste packaging system.
The Reality
Six months later it’s in pilot and first impressions aren’t great.
Trials are underway in a number of northeast US states (partnering with Kroger and Walgreen’s) and in Paris (with Carrefour). Additional pilots are scheduled, including later this year in the UK, with Tesco.
We looked at Loop’s offering and found a slow and stuttering start with very limited range, lots of out-of-stock and a lot of Loop own-brand (also often out-of-stock).
The US site (https://loopstore.com) lists 43 individual brands, but only 19 have any products. There are a total of just 81 products, with nearly half (40) from Puretto,
Loop’s own brand in the US. Four products are out-of-stock, and three are “coming soon”.
The France store (https://maboutiqueloop.fr has 117 items listed, but 41 are from its
own brand for the EU, Nevoli. There are 20 products out-of-stock (mostly from Nevoli) and 13 are “coming soon”.
The Nevoli “out-of-stock” items in fact look little more than placeholders, with just an image of the standard container, no product description, and no price.
There appear to be other missteps. The May 21, 2019 US press release announcing the launch of the pilot said consumers could visit loopstore.com or dedicated pages on the Kroger and Walgreen’s sites. The link to the Walgreen’s page works, but the link to the Kroger page errored.
Upscale pricing
Loop users face significant cost hurdles – a container deposit, premium pricing and costly shipping
Deposit
Each product carries a deposit that ranges from $1 to $15.75. The deposit is usually 10-20% of the combined charge but sometimes it’s a lot more. Häagen-Dazs - Chocolate Salted Fudge Truffle Non-Dairy costs $6.49, plus $5.00 for the deposit.
The Preserve - Everyday Tableware Bundle is $9.50 but add in the deposit and its $25.25 (luckily it’s currently out of stock).
Purchase 30 items and total deposit charges will likely be around $100 (yes, these are one-off but that’s still a sizable chunk).
Prices
Unit prices on Loop are substantially higher.
Hidden Valley Original Ranch Topping and Dressing on Loop is $3.89 (plus $1.00 deposit) for an 11.7 fl. oz. bottle (33c per fl. oz.). Walmart.com has a 24 fl. oz. bottle of pretty much the same thing for $3.88 (17c per fl. oz.), about half the unit rate.
Loop charges $9.50 (plus $1.50 deposit) for a 1.8 oz. jar of Silk Chili from Burlap & Barrel. Hop on the brand’s own store and you can by the same item (it seems) for $8.99.
On Loop, a 22 oz. canister of non-organic quinoa from Puretto is $7.00 (plus a $3.00 deposit), 32c per fl. oz. On walmart.com, a 16 oz. pack of organic quinoa is $3.42, 21c per fl. oz.
Shipping
Shipping costs are additional and one reviewer was shocked to find it was $20 for her order.
Truly Circular?
Surprisingly, Loop’s deliveries come with some single-use plastic. A US reviewer said plastic encountered included a plastic disposable lock-tie for the tote zip, plastic shrink wrap on the Puretto canisters, and the plastic bottle for the Puretto toasted sesame oil, which also had plastic shrink wrap. Of the items bought, only the Reinberger cashew butter had no plastic at all.
These plastic items can’t be recycled curbside and Loop recommends consumers put them in the tote to be recycled. Still, it feels like a basic error.
These missteps are discouraging. We remain convinced Loop is onto something and has the chance to build a valuable and less plastic intensive shopping platform but early signs aren’t encouraging. We will return again soon and let you know what we find but meanwhile, if you want a deeper look, let us know.
[Image Credit: © TerraCycle]