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Waste Management

Lidl's parent company establishes its own dual system

0:35 min Markets and ManagementManagement
Neckarsulm, Germany

Memo: ''Schwarz Gruppe'', parent company of discount chain ''Lidl'', is the first trading company to set up its own dual system "PreZero Dual GmbH".

Dual Systems organize the collection, sorting and recovery of waste generated in industry and the trading market in Germany. So far there are nine of them. The most well known is the company ''DSD'', which holds the trademark rights to the recycling mark ''Grüner Punkt''. 

Earlier this year, ''Schwarz Gruppe'' had taken over the fifth largest waste disposal company in Germany, Tönsmeier. According to industry estimates, Lidl currently pays between 70 and 80 million euro a year for the waste organization via an external dual system.

''PreZero Dual'' is expected to be fully operational by 2020. Before that, regulatory and other collusion arrangements are needed.

As of next year, distributors are more likely to be held accountable: Under the new German Packaging Act, every manufacturer and retailer who sells packaged goods to private end users must acquire a license to a dual system.

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