SECOS expands supply of compostable shopping bags with Ritchies IGA

SECOS to supply its MyEcoBag product to all 76 Ritchies IGA stores in Victoria, New South Wales and Queensland
Deal follows an eight-week trial of the reusable, composable shopping bags in five Victorian Ritchies stores
Two in three customers during trial opted for the compostable option over traditional paper bags

Special Report: Developer and manufacturer of sustainable packaging and materials SECOS Group Ltd (ASX:SES) has expanded its agreement to supply compostable shopping bags to Ritchies IGA following a successful trial that exceeded both parties’ expectations.

SES said its trademarked MyEcoBag re-usable compostable shopping bags were so well received by customers during an eight-week trial in five Ritchies stores in Victoria that it had been asked to supply all 76 Ritchies stores in Victoria, New South Wales, and Queensland.

Under the deal Ritchies would offer MyEcoBag shopping bags to customers at the checkout, a major step in reducing Australia’s reliance on traditional plastic and carbon-intensive paper bags for grocery shopping.

SES would work with Ritchies’ staff to educate shoppers on the benefits of compostable bags through campaigns and live demonstrations.

MyEcoBag shopping bags hold up to 10kg of groceries, are puncture and tear-resistant, making them reusable as shopping bags and eventually as liners for kitchen compost caddies.

They compost quickly, breaking down in as little as 90 days, leaving no microplastics or toxic residue.

Made with GMO-free corn and other certified compostable materials, they are both compost and worm-friendly.

Misconception about paper bags

Currently, most supermarkets offer traditional plastic or paper bags. However, SES said there was a common misconception that paper bags, made from plantation trees, were environmentally friendly.

SES said in reality:

Paper bags required roughly four times more water to manufacture than plastic and produced 3.1 times more greenhouse gases
Paper bags are bulkier and weigh about eight times more than plastic, meaning transporting 2m paper bags required seven times as many trucks as 2m plastic bags
Paper bags are often lined with untested or unregulated waterproofing or strengthening materials that are not fully compostable and may harm soil and compost quality

SES said MyEcoBag gave shoppers confidence that they were choosing a safe, certified alternative that protected both the environment and compost integrity.

MyEcoBag popular choice with customers

Ritchies IGA National Merchandise General Manager Jarrod Swaine said the customer response to the rollout of the bags in their stores had been overwhelmingly positive.

“Two in three customers opted for the compostable option over traditional paper bags, with customers requesting more as soon as they sold out,” he said.

“Customers are happy they finally have another choice, and people love that they can reuse the bags for kitchen food scraps and place them into their council green bin (where accepted) or home compost.

“The bags hold more items than paper bags and manage the weight with ease.”

Expands new product range for SES

The popularity of MyEcoBag in Ritchies stores significantly expands a major new product category for SECOS.

SES MyEcoBag CEO Richard Tegoni expressed hope that the success of the compostable bags would influence the wider industry to shift towards this environmentally friendly option.

“We are excited to showcase our compostable materials through the widespread introduction of compostable shopping bags,” he said.

“Together, we want to educate shoppers about the environmental benefits of choosing compostable bags as part of our commitment to a sustainable future,” Tegoni said.

“We’ve seen the success of supermarkets in Western Australia and South Australia adopting compostable alternatives for fresh produce bags, with South Australia also moving to compostable shopping bags.

“We are excited that Ritchies is taking the lead in Victoria, New South Wales, and Queensland, and hope other supermarkets and retailers follow suit.”

Strong feedback from shoppers purchasing MyEcoBag compostable shopping bags over paper bags had enabled SES to secure pivotal meetings with additional retailers.

“We also hope the government recognises this shift in consumer attitudes and legislates to replace conventional plastic with compostable alternatives wherever possible,” Tegoni said.

Change of name to MyEco Group

SES recently announced it was preparing to change its name to MyEco Group Ltd to better aligned with its global branding.

The company has seen its MyEcoBag range grow to be present in more than 2,400 Australian stores, including 970 Woolworths stores, 850 Coles stores, 76 Ritchies IGA, and other independent retailers.

It is the top-selling brand in Woolworths’ compostable bin liner category, capturing more than 50% of the market in the latest quarter.

It has also recently taken the market lead in Coles, recording more than 40% of the compostable bin liner and kitchen caddy category.

SES expects the demand for sustainable alternatives to traditional plastic and paper bags to drive MyEcoBag’s growth over the next two to three years.

This article was developed in collaboration with SECOS Group, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.