Additional Bottle Washing Information
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>>> Don Kneass <DonKneassNAPCOR@compuserve.com> 07/31/97 05:09pm >>>
John and members of the listserv,
A bottle washing operation certainly sounds like a good idea and a logical investment in re-use, but I would caution any interested parties to take a close look. Wine bottle washing has failed at least four times in the Northwest and I can count myself as an operator/investor in one of those failures. Two things account for the failures in my opinion: one is the lack of good, cost-effective washing equipment; and two is the lack of a recovery mechanism that can adequately recover a sufficient quantity of bottles to make this kind of high volume operation successful. The best strategy for any interested parties would be to start by talking with those who have done it and those doing it. The operating California washers, for instance, keep their operations going by selling new glass as well as re-used. Bottle washing, particularly wine bottle washing, sounds hip and attractive but has many, many pitfalls. I would be glad to discuss this further with anyone interested.
Don Kneass
206/224-7464
>>> <RESRECYCLE@aol.com> 08/01/97 12:26pm >>>
I concur with Don Kneass regarding bottlewashing. Earlier in my (too lengthy) career in garbage, I managed a recycling business which lost $50,000 trying to establish a wine bottle washing line. Don's analysis is similar to mine. Too, remember that the successful California washing plants (Encore and Evergreen) do a large amount of business directly with the numerous wineries in Northern California by washing empties generated from the tasting rooms.
Jerry Powell
Operating Businesses
+ Encore! (Richmond, CA) - long time success in supplying new and reused bottles to the CA wine industry
+ EverGreen Glass Co. (Stockton, CA):
The following is from the California Integrated Waste Management Board (CIWMB)
publication, RMDZ News, Publication # 412-97-089, Winter 1997-98:
(From “Spent” section)
Evergreen Glass: $850,000, 7-year-term loan for the purchase of equipment. The business is located in the San Joaquin County zone, in the City of Stockton. The loan is needed to bring the company to a profitable operating level and increase diversion amounts to 3,000 tpy, bringing the total annual diversion to 4,040 tpy. Evergreen Glass diverts wine bottles from the waste stream, sorts, and washes the bottles for resale to the wine industry. Evergreen is the only company that purchases its bottles from outside vendors, diverting them directly from the waste stream, for sale to a third party. In France, where reuse of wine bottles is mandated by law, the average bottle is recycled eight times. It is hoped that Evergreen may be the beginning of a new industry in California, a state known for its wine industry.
(From “Money Matters” section)
Profile: EverGreen Glass
EverGreen Glass, Inc. is a startup business which began operations in June, 1996, rewashing postconsumer, cork-finished wine bottles. EverGreen has contracts with several material recovery facilities to remove whole wine bottles from the waste stream, and arranges delivery of the used bottles to its Stockton, California processing plant. The company also provides delabeling and rewashing services directly to wineries. EverGreen is one of only two companies rewashing wine bottles in California, and the only company to recover bottles from the waste stream. Before starting the business, the owners conducted much of their research in Europe, where wine bottle reuse is mandated by law. In France, for example, a wine bottle is reused eight times on average.
Challenge
It soon became apparent to the owners that bottling conditions in the United States differ from those in Europe. For instance, many European countries use water-soluble glues to attach labels. However, California wineries have begun using heat or pressure sensitive glues to attach labels. Also, a small number of California wineries are switching from paper labels to labels containing metals. Due to the glues and types of labels now being used, the company washes bottles up to three times to completely remove the labels. Additionally, all of the bottle sorting and quality control checking is currently done by hand. The owners quickly realized that additional specialized equipment would be needed to efficiently produce a quality product.
Action
The company applied for an $850,000 loan from the Board to purchase additional equipment. Three key pieces of equipment were identified as integral to the future success of the company: an automatic bottle sorter, a bottle delabeler, and a laser scanner. The bottle sorter uses European technology to separate the various types of bottles. The company has identified upwards of 80 different bottle types. The bottle delabeler has been developed by the company with the assistance of an equipment manufacturer. The owners eventually plan to patent this new delabeling technology. The laser scanner is the same type of equipment currently being used by U. S. virgin glass manufacturers to determine the quality and standardization of bottles coming off the manufacturing line. Larger wineries with high-speed bottling lines require bottles with exacting specifications. The laser scanner will allow the company to certify that its rewashed bottles meet those specifications.
Result
The 28 owners of the company contributed over $2 million in equity to the start-up of the business. Wells Fargo Bank approved a line of credit to meet the daily cash flow needs of this new business. On July 23, 1997, the CIWMB approved an $850,000 loan for the company to purchase the additional equipment needed to efficiently produce a quality product.
Powerful Partnerships
Through the combined efforts of the CIWMB, the investors, and a private lender, the company is now adequately capitalized to move forward on this innovative reuse project. The CIWMB is excited to participate in this powerful partnership.