Kruger Invests in Ecologic Paper Bottles

Ecologic Brands, Oakland, Calif., USA, makers of America’s first recycled paper bottle and the eco.bottle® line, this week announced that it has completed the first close of a $7 million round of financing. Investors include a strategic investment from Kruger Inc., Montréal, Qué., Canada, and current Angel investors DBL Investors, Catamount Ventures, and Black Bear Partners. "By bringing the paper eco.bottle® into markets that have been traditionally dominated by plastics, our partnership with Kruger will help us revolutionize the bottling business with one of the most renewable and recyclable resources—paper."

As part of the investment agreement, Kruger will become the exclusive licensee and manufacturer of Ecologic’s paper bottle technology in Canada. Kruger’s Consumer Products Division currently serves the U.S. and Canadian markets with numerous well-known tissue product brands, and the eco.bottle® opens doors to other types of consumer-facing goods.

Kruger’s strategic investment in Ecologic unlocks synergies between two complementary partners, the most obvious being Kruger’s manufacturing, supply chain and paper technology with Ecologic’s patented molded fiber technology. This will help scale Ecologic’s current manufacturing capabilities rapidly, while tapping into more than 100 years of Kruger’s industry experience in pulp and paper products, containerboard, and packaging, lumber, recycling, and renewable energy.

"We are thrilled to partner with Ecologic, a company whose goal is to provide differentiated and innovative sustainable packaging solutions to consumers around the globe," said Michael Lafave, SVP, Containerboard/Packaging and Recycling at Kruger. "We are especially excited to bring the Ecologic paper bottle technology to our customers in the Canadian market as an additional offering to complement our corrugated packaging solutions."

Julie Corbett, Founder of Ecologic, commented on the significance of this relationship. "By bringing the paper eco.bottle® into markets that have been traditionally dominated by plastics, our partnership with Kruger will help us revolutionize the bottling business with one of the most renewable and recyclable resources—paper."

Most recently, Ecologic entered into a general supply agreement with Sonoma-based winery, Truett-Hurst Inc., to produce paper wine bottles for its PaperBoy brand. PaperBoy wine bottles are made from compressed, recycled corrugate formed into the shape of a standard Bordeaux wine bottle. These new paper wine bottles are 85% lighter than traditional glass bottles, and filled with appellation-based, super-premium wines.

TAPPI
http://www.tappi.org/