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 Vermont Sunday Magazine


Trash to cash
TerraCycle's recycling brigades raise money and eco awareness
April 13, 2008

Reduce, reuse, recycle. It's a mantra of the 21st century. Separating our newspapers and cardboard, junk mail and office paper, magazines and catalogs, bottles and cans, and plastic bottles from the rest of our garbage has become part of our daily routines.

But not all plastics are accepted at recycling centers or by curbside collectors. Millions of rejected plastics — yogurt cups, juice pouches, food wrappers — end up in landfills. How can what we toss in the trash be turned into something useful?

That is the question that a company called TerraCycle is tackling. Founded in 2001 by two Princeton University students and now headquartered in Trenton, N.J., TerraCycle collects what has long been considered trash and transforms it into packaging for its garden and household products, or turns it into a product — such as pencil cases, three-ring binders and (ironically) plastic garbage cans.

TerraCycle recruits organizations throughout the country to collect the trash it needs — and it pays them for it. On its Web site, www.terracycle.net, organizations enlist in "brigades": the soda bottle brigade, yogurt container brigade, energy bar wrapper brigade or juice pouch brigade.

Why are they called brigades?

"Because we are fighting the war on waste," TerraCycle spokeswoman Jennifer Wilkie says.

The brigades collect 20-ounce and two-liter soda bottles, six-ounce and 32-ounce yogurt containers, energy bar wrappers, and Capri Sun and Honest Kids drink pouches. TerraCycle pays a few cents for each item, making the brigades fundraisers for participating organizations.

Several Vermont schools and other groups have joined the brigades. For many, it's not so much about raising funds as raising awareness — that trash is a byproduct of consumption and that recycling/reusing is an effective way of dealing with that trash.

TerraCycle began in a Princeton dorm room in the fall of 2001 when freshman Tom Szaky realized he could make money from waste. The idea was to take food waste from the dining hall, process it by feeding it to worms, then sell the, uh, worm poop as fertilizer.

Szaky and fellow student Jon Beyer wrote a business plan for the Princeton Entrepreneur Club and the following summer made arrangements with the university's dining services to accept dining hall waste and process it in a prototype "worm gin." TerraCycle's first product was aptly called Worm Poop and was bottled in reused soda bottles.

In spring 2003, Szaky took an extended leave from Princeton (he has yet to return) and was on his way to success, funded by both investors and prize money from business plan contests (although he did turn down a $1 million prize when the contest funder wanted to take TerraCycle in a less "eco" direction).

"Tom came up with the idea of packaging the worm poop in soda bottles," Wilkie says. "He loved the idea of using garbage. He literally went around to people's recycling bins."

Even the spray tops on the bottles are either end-runs or over-runs, as are the boxes used to ship TerraCycle's products. TerraCycle's raw materials are all waste, and the worms are still the primary producers.







  • Now, TerraCycle manufacturers a host of natural fertilizers made from worm poop for everything from orchids to cacti. The company also makes natural household cleaners and deer repellent from the essential oils in plants, flower pots, bird feeders, composters, rain barrels, potting mix, seed starter trays, plastic trash and recycling cans, bags and pencil cases, and office binders (the three-hole punch variety). Retailers such as Wal-Mart and Home Depot carry TerraCycle products (a complete list of products and retailers is available at www.terracycle.net).

    The company still uses soda bottles to package the fertilizers and cleaners, and it turns yogurt containers into planting pots (to replace the black ones that nurseries use for seedlings). As for the drink pouches, they become bags and pencil cases, while the energy bar wrappers will become other "upcycled" accessories.

    TerraCycle now employs about 70 people and in 2007 grossed $3.5 million in sales. This year, the company is on track to sell over $10 million of goods, the vast majority coming from the sale of the worm poop fertilizers, says Robin Tator, who helped Szaky found the company. Although data on how many yogurt containers or wrappers they have collected is not yet available, Tator says, they have collected and used millions of soda bottles in the past seven years.

    Wilkie says the company is constantly thinking of new ways to use trash. As a small company, the employees are always talking about what they can do with various forms of refuse.

    "Our newest product will be a way to use plastic grocery bags," Wilkie says. "We fuse them together to make a durable material, then sew that into a reusable bag."







  • But don't look for a plastic bag brigade just yet. And don't look for TerraCycle advertising; the company doesn't even release lists of collection points.

    "It's all word of mouth," Wilkie says, when asked how people hear of TerraCycle's products and recycling programs. "We don't advertise at all. … It's pretty amazing considering how many participants we do have."

    In the bottle brigade alone, 4,000 locations nationwide have signed up, and as of this month, 600 locations are collecting yogurt containers. These locations — mostly schools, says Wilkie — then either use the funds themselves or choose to preserve the rainforest through a program run by The Nature Conservancy.

    In Vermont, TerraCycle's brigades are win-win programs, teaching recycling and reuse while earning a few dollars for the organizations. Schools such as Oak Grove School in Brattleboro are collecting yogurt containers, which are #5 plastic that many transfer stations do not accept. Stonyfield Farm, the New Hampshire yogurt company, uses #5 plastic (rather than #2, for example) because each container is strong yet uses a minimal amount of plastic.

    While Central Vermont Solid Waste Management District in Montpelier recycles #1 through #7 plastic, the Rutland County Solid Waste District takes only #1 (e.g., water or Gatorade bottles) and #2 (milk jugs, shampoo bottles, etc.).

    Deane Wilson, RCSWD's waste diversion coordinator, says that the district only accepts #1 and #2 because they simply don't have room to store #5 containers. There is a large enough supply of #1 and #2, so that they can regularly ship full trucks of the recyclable plastics.







  • Last fall, TerraCycle partnered with Stonyfield Farm to start the yogurt brigade. TerraCycle gets a corporate sponsor for each brigade to help pay for shipping the containers from collection spots, among other costs. The recycling program fits with Stonyfield's mission of caring for the planet.

    "We're hoping to encourage people to recycle used yogurt containers," Stonyfield spokeswoman Carmelle Druchniak says. "(TerraCycle) has had great success with its worm poop. We're hoping the planting pots are as popular."







  • TerraCycle makes it easy for organizations to ship the collected material. For example, an organization that signs onto the yogurt brigade receives four pre-labeled cardboard boxes that hold 400 six-ounce yogurt cups or 50 quart (32-ounce) containers. When a box is full, it is shipped back to TerraCycle, which pays two cents per six-ounce cup and five cents per 32-ounce container. Do the math and a box full of cups is worth $8 while a box of the larger containers pays $2.50. TerraCycle writes checks twice a year, in June and December.

    But for some TerraCycle's recycling brigades aren't as much about the money as they are about providing a good lesson. Laura Schmigel, a high school teacher at Grace Christian School in Bennington, says it teaches her students about consumption and waste reduction. The funds, she says, are "a nice incentive but not really what it is all about."

    An avid gardener, Schmigel happened upon TerraCycle's Web site while researching composting. She read about the recycling/reuse brigades and signed up the school to participate in the yogurt, energy bar wrapper and drink pouch brigades. She has put a notice about the brigades in the school's weekly newsletter and is creating a collection station in the school's lobby.

    "As a Christian teacher, I see the Earth as the place God has created and asked us to care for," she says. "Small efforts such as these have a cumulative effect. If nothing else, it makes us thoughtful about how much we consume and what happens to the waste we create."

    At Green Mountain College in Poultney, Ashley Graban, a senior studying environmental education and crew leader for the college's recycling program, read about TerraCycle in a magazine. She signed up the college for the bottle brigade. Last year, she led a student-run crew of five people who collected bottles from all the buildings on campus, and donated their earnings to The Nature Conservancy's rainforest preservation program.

    The bottle brigade is currently on hold until TerraCycle can find a sponsor, but Graban hopes the college will resume the brigade when one is found.







  • Becky Anderson, coordinator of Oak Grove School's parent organization (called FROGS, for Friends and Relatives of Oak Grave School), knows that the yogurt brigade, which the school just signed up for, won't be a big money-maker. But she is enthusiastic about the program anyway.

    "It's about bringing the community together and looking at how recycling has become an important part of our lives," she says. "It sets an example for the kids."

    Plus, she says the kids will get a kick out of it. "It's about doing something with waste. It's a good way to get kids involved."
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