Wine and spirits producer Pernod Ricard and circular economy solutions provider ecoSPIRITS announced today a new five-year global licensing agreement for the distribution of Pernod Ricard’s spitrits brands using ecoSPIRITS’ circular packaging technology to venues around the world, in a deal aimed at reducing waste and carbon emissions from the production and transportation of bottles and other secondary packaging.

Founded in 2018, Singapore-based ecoSPIRITS offers a low carbon, low waste distribution solution for premium wine and spirits, with a closed-loop system that eliminates nearly all packaging waste in the supply chain. According to ecoSPIRITS, the company’s system reduces physical glass and cardboard waste by 95%, and carbon emissions from packaging and distribution by 60% – 90%.

The new agreement follows a pilot project by ecoSPIRITS and Pernod Ricard launched in 2022 for the distribution of some Pernod Ricard brands, including Beefeater London Dry gin, Havana Club rum and Absolut vodka, in Singapore, transported in bulk and delivered to hospitality venues in fully reusable glass containers.

Pernod Ricard, through its venture fund Convivialité Ventures, also participated in a $10 million capital raise for ecoSPIRITs in 2023.

Paul Gabie, CEO of ecoSPIRITS, said:

 “Pernod Ricard and ecoSPIRITS have been working together for almost three years now to make circularity a reality in the spirits industry. This new global agreement builds on that journey, and our combined expertise, to bring circular packaging to more Pernod Ricard markets around the world.”

Under the new agreement, the brands from the pilot project will be introduced to new markets, with additional brands to be added over time. The companies have announced the introduction of a closed loop system for Havana Club rum in the brand’s home market of Cuba, with a dedicated “ecoPLANT” at Havana Club’s distillery in San José de las Lajas. According to the companies, the Cuba initiative is expected to result in an 88% reduction of the carbon emissions footprint related to premium spirits packaging and distribution and a reduction of glass waste by 99%.

The new agreement follows the release earlier this month of a series of climate-related goals by Pernod Ricard, including a target to reduce non-FLAG (forest, land and agriculture-related) emissions by 90% by 2050. Scope 3 accounts for approximately 95% of Pernod Ricard’s emissions footprint, including approximately 25% to packaging, and 8% to transport.

Maria Pia De Caro, EVP Integrated Operations and Sustainability at Pernod Ricard said:

“This next step in our partnership with ecoSPIRITS reflects our belief in the transformative power of this solution to enhance operational efficiency and reduce not only our environmental footprint, but the impact of our industry at large.”

Pernod Ricard recently had its Science Based Targets initiative sustainability targets approved by SBTi.