Frugalpac, Siemens lease-purchase deal removes investment barrier for 14M annual paper bottle production

UK – Frugalpac has partnered with Siemens Financial Services to offer customer financing for its FBAM-2 paper bottle assembly machine, which can produce 14 million paper bottles annually and reduces carbon footprint by 84 percent, as the agreement accelerates global adoption of lower-carbon packaging.

The agreement, announced on 5 August 2026, provides a structured lease-purchase scheme for qualifying customers to finance the next-generation FBAM-2, a scalable multi-lane platform that produces more than five times the capacity of its predecessor. 

The Frugal Bottle is made from 100% recycled paperboard and weighs just 71 grams, making it six times lighter than a standard glass bottle. 

The bottle has a carbon footprint 84% lower than a standard glass bottle, and the new machine cuts production costs by up to 30%, bringing the Frugal Bottle to price parity with labelled glass bottles. 

Siemens Automation Technology Powers FBAM-2’s 14 Million Annual Capacity

Siemens has also provided advanced automation components for the FBAM-2 platform, building on their long-standing technology partnership with Frugalpac. 

The machine is designed for installation at bottling plants and packaging facilities worldwide, enabling distributed manufacturing closer to filling lines and reducing transport emissions.

Since its commercial launch in 2020, the Frugal Bottle has been adopted by drinks brands in 27 countries and is stocked by major retailers including Aldi, Sainsbury’s, Target, Whole Foods and Carrefour. 

More than 4 million Frugal Bottles have been produced to date, saving over 1,392 tonnes of CO₂e.

Financing Agreement Removes Investment Barrier and Strengthens Supply Chains

Frugalpac CEO Malcolm Waugh stated that Siemens Financial Services’ support is a significant endorsement of the company’s innovation capabilities and vision to accelerate lower-carbon packaging adoption, with the agreement creating an easier pathway for customers to install machines and produce bottles locally. 

Carolyn Newsham, Account Manager at Siemens Financial Services, added that innovation delivers the greatest impact when businesses can access it quickly and efficiently, with the agreement helping remove a potential barrier to investment by providing financing solutions for the FBAM-2. 

The ability to manufacture packaging closer to filling facilities reduces transport emissions, lowers packaging-related costs, and provides greater control over supply chains as pressure grows on brands to meet Extended Producer Responsibility regulations. 

Frugalpac has already exported two FBAM-1 machines to the US and Canada, with the new financing agreement expected to further accelerate international growth.

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