Lidl parent company continues expansion in the mull market

Lidl parent company continues expansion in the mull market

Neckarsulm (dpa) – movement on the garbage market: the parent company of the discount chain lidl, the schwarz group, is the first retailer to establish its own dual system. This was confirmed by a company spokeswoman on request.

She did not want to give details. So far, there are nine such systems – they organize the collection, sorting and recycling of waste generated in industry and commerce. The best known is the company DSD, which holds the trademark rights to the recycling symbol gruner punkt. According to industry estimates, lidl pays between 70 and 80 million euros a year for the organization of private label packaging waste.

The schwarz group thus continues its expansion in the waste market. In the summer, it took over the fifth-largest private german waste disposal company, tonsmeier from porta westfalica (north rhine-westphalia). With the foundation of the dual system under the name "prezero dual gmbh", the schwarz group will in future cover the entire waste chain, from the organization of collection in a dual system to sorting and recycling. "This is a completely new, major market player that will put the entire industry under considerable pressure," according to industry sources.

Prezero dual was not allowed to start its full work until 2020, before that there are still official procedures and other agreements necessary for approvals. According to industry sources, lidl’s contract with the colonn-based company interseroh, which has been handling waste disposal for lidl up to now, will run until the end of 2019. After this, the subsidiary of the berlin-based alba group will probably lose its best customer. An alba spokeswoman would not comment on the issue.

According to treasures, about one tenth of the packaging waste in german retail comes from lidl. The new swabian system operator was also allowed to take over the refuse organization for the supermarket chain kaufland, another schwarz subsidiary. No similar project is known from the competitor aldi so far.

The background to the decision is a change in regulations that will apply from 2019 and is intended to eliminate current problems on the mull market: an objective body – a "central office" – is to obtain comprehensive insight into data on the quantity of mull from handlers, the industry and dual systems. This, in turn, is intended to prevent black sheep among the system operators from cheating and rolling costs off onto competitors.

Recently, germany’s largest waste disposal group remondis took over the company duales system deutschland (DSD), citing among other things the positive prospects for the industry. Another dual system, ELS from bonn, went bankrupt in the spring and had to be wound up. Dual systems are only active in organizing mull – they commission mull removal, sorting plants and disposers. This makes them an important interface for the entire waste management industry.

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