Reverse-vending machine maker TOMRA aims to convert trash to cash

The latest bottle and can recycling technology isn’t just good for the planet. It’s an investing opportunity as well, argues Regnan’s MAXINE WILLE

• Circular economy drives take-up of reverse vending machines
• Find out more about the Circular Economy
• Find out about Regnan Global Equity Impact Solutions fund

EACH year, 1.4 trillion beverage containers are used around the world, representing a huge amount of material that potentially could be collected, reused and recycled.

It’s also an opportunity for “impact investors” looking for a way to make money and make the world better, believes Maxine Wille, an analyst at Regnan Global Equity Impact Solutions fund.

The global leader in what’s known as “reverse vending machines” is TOMRA, which is listed on the Oslo Stock Exchange and has about 80,000 installations across more than 60 markets, says Wille.

“Rather than paying money and getting a bottle out of the machine — which is what you would do at a normal vending machine — you feed it back into the reverse vending machine [and get paid] and the container is either recycled or reused,” she says.

“We are long-term shareholders.”

TOMRA was recently one of three companies given concessions by the Victorian government in Australia to develop the state’s container deposit scheme, which is due to start in November 2023.

TOMRA already operates in NSW, as this video shows:

The Victorian scheme will reward consumers with a 10-cent refund for every eligible can, carton and bottle they return.

The Norwegian group has been chosen as a network operator.

It will establish and maintain a network of refund collections points, distribute refund amounts to consumers, and report on participation and redemption rates.

“TOMRA is still very clearly the innovation leader in this space,” Wille says.

“What you want from a reverse vending machine is security – you don’t want the machine to be tricked or duped. And you want the machine to be as convenient and quick as possible for customers.”

A recent TOMRA technological breakthrough has improved both security and ease-of-use, Wille says.

“You used to have to feed one bottle at a time, but now TOMRA has pioneered a machine where you can throw in a bag of over 100 mixed bottles and cans at once.

“You throw them in, and the machine sorts them.

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“We look to invest in innovation leaders within a particular industry. We want to be confident that they can stay market leaders as a result of delivering the most innovative product.”

The reverse vending machine market is growing quickly in Australia and throughout the European Union.

“There are still a number of countries likely to implement a deposit return schemes, just like Victoria did,” Wille says.

One of the main incentives in Europe is the European Union’s directive on single-use plastics that nominates a 77 per cent collection rate for plastic bottles by 2025, increasing to 90 per cent by 2029.

“Reverse vending machines and deposit return scheme are the most effective, and proven, way to achieve these very high recycling targets.”

About Maxine Wille

Maxine is an investment analyst with Regnan’s impact equity team, which manages the Regnan Global Equity Impact Solutions Fund. Maxine previously worked with Hermes’ Impact Opportunities Equity Fund.