Obstacles
At the beginning, there were numerous challenges to overcome. In the first place, the supply of PHA was tight and not always reliable. WinCup opted to partner with Danimer because it was nearby, and canola oil seemed the right direction to go.
“Canola is a dual crop: farmers can plant their first crop of whatever and then do a second crop of canola. Canola has a short mature season, and actually can mature twice in the same year. So, it made the most sense for us to go with that technology.”
By creating a partnership with Danimer, WinCup was able to secure a steady supply of PHA.
However, when WinCup first started producing the straws, it was an expensive operation that the company was not making money on, said Laporte.
Four years later, production has been streamlined and the process has become faster, more efficient with less scrap. More PHA is coming into the market and the increased competition is driving the price down.
“It’s all happened before: when polypropylene came out, polyester was really the only material back then. By comparison, polypropylene was very expensive. Yet, over the decades, polypropylene has become a commodity and prices have fallen. I perceive the same thing happening here. It’s only a matter of time,” said Laporte.
Learning curve
WinCup also had to learn how to process PHA. “The first trial was a disaster - we actually had to evacuate the building because of smoke. There were 23 additional trials needed before arriving at the product that is in the market today,” Laporte said. “So, while the first few months were rough, since then, we’ve learned so much.
Fast forward four years from then and we can now make just about anything out of this material.”
The six or seven years of experience the company has gained working with PHA have been a steep learning curve. Today, however, “WinCup has the expertise to produce most any type of product we want to.” said Laporte.
One advantage was the fact that the company was able to utilise its existing capital infrastructure for producing the straws. Although a few adjustments needed to be made, we didn't have to recapitalise the whole business, noted Winters.
Like traditional straws, phade straws are extruded, which is one of the cost benefits against paper. “Plus, the maturity rate of a tree is up to15 years, versus two months for a canola plant, which also helps us be competitive.”
A PHA straw, he added, performs just like a traditional plastic straw - so it doesn't get soggy. And while paper straws have been shown to contain such undesirable substances as PFAS, phade straws contain no PFAS, no harmful chemicals, no polyvinyl acetate or glue.
According to Laporte and Winters, it has, to date, replaced 1.7 billion paper or plastic straws with its phade PHA straws.
“By the end of this year it will be over 3 billion straws. Three billion straws stacked and on end will go all the way to the moon and little over half the way back or about eight times around the Earth,” said Laporte. “That’s how much plastic we've taken out of the waste stream or the supply chain with something that degrades and returns back to nature without any harmful effects.”
Looking ahead
WinCup does not intend to stop at making just straws from PHA. The company has already created the world’s first paper cup featuring a PHA lining that is 100% marine biodegradable.
It already has customers for the new cup. “With this product, cost is less of an issue, explained Laporte. “When we created the phade straw, we made a 100% change, from PP to PHA. Here, it’s only the coating that has changed. The fibres, the biggest part of the cup are the same – it’s only the coating that has the increased cost. It is less invasive from an economic perspective.”
The next step will be cutlery made from phade PHA. In fact, Winters and Laporte are planning a broad portfolio of products, all made from WinCup’s phade material.
Asked about where the drive to take the gamble on sustainable foodservice ware comes from the answer was clear: both Laporte and Winters enjoy solving issues and problems.
“And there's a quote from former ice hockey player and NHL great, Wayne Gretzky, that has always stuck in my mind,” said Laporte. “He said ‘always skate to where the puck is going, not where the puck is at’. We like to run the business the same way , in other words: where is it going versus where is it at right now? What will give us more profitability, more margin and more opportunity to invest in new technology in the future?”
Moreover, he added, ‘when you do good things, good things happen’.
“Last year we decided to change 100% of our EPS foam business to Vio. Not because our customers were asking for it, but because it's the right thing to do. We're doing things the right way, and we're getting rewarded for it.”
These trends are going to continue in this space, Winters went on to say. “Doing this differentiates us from our competitors. When you're running a business, you've got to capture the mind of the consumer in some form or fashion. We are trying to be the leader in the sustainable and eco-friendly space in the food service business. And we will keep at it because that’s who we are. We're just trying to make a difference out there. And I believe wholeheartedly that the financial benefit will continue to come.”