Pernod Ricard has acquired a minority stake in ecoSpirits, a technology startup focusing on low carbon, low waste distribution systems for wine and spirits.
The investment in the Singapore-based business, announced yesterday, was part of a $10 million Series A funding round led by New York-based investment group Closed Loop Partners. It was made through Convivialité Ventures, the venture arm of Pernod Ricard that invests in companies beyond the French company’s traditional wine and spirits offerings. The amount was not disclosed.
Founded in 2018, ecoSpirits has developed the EcoTote format, a branded reusable 4.5 liter glass container that transports spirits in bulk to bars. EcoTotes are returned to a plant, where they are sanitized and refilled.
In March 2022 Pernod Ricard announced a trial with ecoSpirits aimed at reducing packaging waste in Hong Kong and Singapore, which have the highest density of bars and restaurants in the world. In addition to waste reduction, the system aims to reduce carbon emissions resulting from the production and transportation of bottles and other secondary packaging.
Absolut Vodka, Beefeater London Dry Gin and Havana Club Rum, were part of the pilot in Asia. The investment comes as Pernod Ricard is in the process of expanding its partnership with ecoSpirits to markets outside of Asia.
There are 40 billion units of spirits bottles produced annually, resulting in a total of 22 million tons of carbon emissions, according to ecoSpirits. By eliminating those bottles, the company estimates that it saves at least 550 grams of carbon emissions per bottle. The investment will aid with Pernod Ricard’s commitment to halving the intensity of its overall carbon footprint by 2030, with a net zero trajectory by 2050.
The new funding will be used to strengthen ecoSpirits’ leadership position and accelerate its research and development program, according to a press release. The capital will also support expanding operations in key markets worldwide, including the U.S., and grow its regional customer and engineering teams in Miami, London, Singapore and Shanghai.
“We are very pleased to participate in this investment which will help develop a company offering such an innovative solution to our industry, by drastically reducing waste and carbon emissions,” said Stéphane Longuet, co-founder and managing director of Convivialité Ventures in a statement. “EcoSpirits’ approach is perfectly in line with our group’s objectives to reduce its carbon emissions and we are looking forward to using it on a large scale around the world.”
Other spirit and CPG companies have made commitments in recent years to a carbon-free future, and are employing or investing in new technology to achieve their sustainability targets. Rémy Cointreau and Diageo have also piloted the circular packaging, and last year the latter announced a collaboration with glass manufacturer Encirc to produce 200 million net zero bottles by 2030. Coca-Cola’s biggest European bottler made headlines today announcing the funding of a technology startup that makes food-grade plastic out of hard-to-recycle plastic, usually landfill-bound. The beverage giant holds the title as the worst plastic polluter for five years running.