Lion’s digital returnable beer packaging pilot targets 64% recycling, carbon reduction in Auckland

NEW ZEALAND – Lion has launched a digitally tracked returnable crate and bottle system for Steinlager in Auckland, removing the traditional deposit model and allowing consumers to borrow and return 330ml glass bottles, with Toitū Envirocare estimating a 64% lifecycle carbon reduction compared to single-use formats.

The pilot, now available at 48 Super Liquor stores across New Zealand’s largest city, eliminates the upfront deposit fee that typically burdens returnable systems. 

John Steiner, Lion’s strategy director, explained that the company had to tackle several challenges to scale and modernise the traditional circular beer bottle model, digitising and simplifying borrowing and returns, removing the need for deposits, and updating the format to 330ml bottles.

Library-Style Borrowing and Digital Tracking Streamline Returns

Instead of purchasing the crate and bottles, consumers borrow and return them through a one-time in-store registration using name and phone number, receiving a barcode to manage checkouts and returns. 

The system, developed in collaboration with Datacom, enables Lion to monitor crates in circulation and aims to collect data on consumer behaviours to refine the experience for future scaling. 

The durable returnable bottle is designed to withstand repeated reuse cycles, complemented by crates made entirely from recycled plastic, while the smaller 330ml format replaces the traditional 745ml Swappa bottle to align with modern drinking occasions and consumer preferences. 

At the end of each bottle’s life, the glass is fully recyclable, ensuring closed-loop material recovery through established glass recycling infrastructure.

64% Carbon Reduction and Beverage Packaging Circularity Implications

The returnable glass system, evaluated by Toitū Envirocare, could slash lifecycle carbon emissions by 64% compared with Lion’s existing single-use cans and bottles. 

This reduction is significant given that reusing bottles is far more energy-efficient than recycling them, while still enabling full recycling at end-of-life. 

Lion’s broader sustainability push includes a 64% reduction in Scope 1 and 2 emissions from a 2019 baseline and increasing recycled content in packaging to 71.8%. 

The Auckland pilot serves as a test-and-learn phase, with the long-term ambition to understand how the system will work at scale across New Zealand before considering broader expansion. 

The digital tracking technology also enables Lion to measure return rates, bottle breakage, and reuse cycles, providing critical data for circular economy modelling.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE