RILA - Retail Sustainability Conference 2012

Brent ostrowskiSenior Global Packaging ManagerBest Buy Exclusive Brands

Packaging Sustainability

Agenda• Evolution of a More Sustainable Package• Collaborative Convergence• Measurable Results• Sustainability Statement• Sustaining Momentum

Brand Growth:From FY04 To Present

•1 Regional Brand 4 Global Brands – 1,500 SKUs• Sourcing Capability Sold in 14 Countries

Packaging Team:2008 Present

• 3: US, 1: Shanghai 6: US, 6: Shanghai, 2: Shenzhen• North American BBY market Global market, External channels

20042003 2005 2006






– Sustainability in retail doesn’t exist in a vacuum• Business challenges, employee suggestions, industry

trends and customer feedback led to innovation that created sustainable packaging


Easier to open!

More innovative!

Better for returns!

Less expensive!

Packaging Sustainability• Results of retail packaging

material reduction in selected redesigned categories (135 products)– Accumulated savings

from 2009 – 2011 netted the following reductions and savings:

• Eliminated 1814 tons of PVC

• Plastic in retail packaging reduced 1582 tons


• Total retail packaging volume size reduced an average of 54% for re-designed structures

• Total packaging and transportation cost savings over $4 million due to size reduction, plastic reduction and elimination and overall structure re-design

Packaging Sustainability• As of August 2012,

PVC is currently used in 4% of total plastic retail packaging– In 2009 PVC usage

was 46%– Remaining packages

are legacy products or decision was made due to cost or availability

Packaging Sustainability• Mandated that all suppliers

include PIC (plastic identification code) on all plastic packaging– 100% compliance of required

plastic resin identification codes on all plastic packaging components

– Plastic identification is key indicator of plastic recycling or disposal for customers and material recovery facilities

Packaging Sustainability• Exclusive Brands Packaging Sustainability Statement –

Striving to continually provide our customers with responsible innovations inPackaging design, material usage and overall experience, Best Buy’s ExclusiveBrands have set the following sustainability packaging priorities:

1. Right-Size Consumer Packaging: 100% of Insignia, Dynex, Rocketfish and Init retail (point of purchase) packages will be right-sized to their products

2. Safe Materials: 100% of packaging materials deemed toxic or that create challenges in material recovery processes will be eliminated

3. Consumer Education: Best Buy customers and employees will be educated on responsible recycling and disposal practices

Packaging Sustainability• Crawl before we can walk the walk…

– Some steps on how we are following the guiding principles of the Exclusive Brand Packaging Sustainability Statement

Packaging Sustainability• Right-Size Consumer Packaging: create a

framework to capture, track and store dataNeed to create database with the ability the

generate reports on efforts to right size packaging, material specifications and other packaging attributes

Work with cross-functional teams to determine what is important? Why? Who?

Packaging Sustainability• Safe Materials: continue research in

alternative, non-toxic packaging materialsPartner with suppliers, sustainable groups and

innovatorsExamples: bio-plastics, non-wood pulp

substrates, molded pulp trays, biodegradable bags


• Consumer Education: join and partner with others to develop systems that aid in customer awareness

Working with organizations to develop universal symbols for material identification, disposal and recycling

Determine methods of how to communicate to the store employee and customer the multiple ways to dispose, recycle or reuse packaging


Thank you!