How Algramo Reduces Plastic Waste with Smart Refill Vending in Chile
- yanabijoor
- 1 day ago
- 2 min read
What is the problem?
Many low-income families in South America are forced to buy small sachets of soap or food because they cannot afford large bottles. These small packages are much more expensive per gram than bulk items. This is often called a poverty tax because being poor actually makes products more expensive. These small plastic packages also create a huge amount of trash that ends up in the ocean or landfills.
What is the solution?
Algramo created smart vending machines that sell basic staples such as detergent, soap, and rice by the gram. Customers use reusable containers that have a special smart chip inside. They can go to a machine or a mobile tricycle and buy exactly the amount they need. Because there is no expensive plastic packaging, the products are much cheaper than those in a regular store.
What is the impact?
The company has prevented millions of single-use plastic bottles from being thrown away. By using Algramo, families can save up to 40 percent on their daily essentials. The system is now used in thousands of small neighborhood shops across Chile. Algramo has also expanded to work with global brands like Unilever and Nestle, offering their products in reusable containers.
Algramo is available in 2,000 to 2,500 stores, many of them family-owned convenience stores, serving an estimated 350,000 to 400,000 end customers. Since 2020, Algramo customers have reused more than 900,000 pieces of packaging. This reuse prevents more than 100,000 kilograms (approx. 220,000 lbs) of plastic from becoming waste. In a single year, the company reported selling 1.7 million liters of product through its refill systems.
Why is it innovative?
The innovation is the use of radio frequency technology inside the reusable bottles. Each bottle acts like a digital wallet that remembers the user and their balance. When the bottle is placed under the vending machine, it automatically recognizes the container and fills it up. This makes a sustainable circular economy easy for both the store owner and the customer.
What is the business model?
Algramo was founded in 2013 and has raised 9 million USD to reduce plastic waste and help families save money. Algramo makes money by selling its smart vending machines to small shop owners. They also earn revenue by partnering with large consumer companies that want to sell their products without plastic waste. The shop owners benefit because they can offer better prices to their customers and attract more people to their stores.
What needs to improve?
The company needs to ensure its machines are always operational and stocked with products in remote areas. It can be difficult to manage a large network of vending machines across a whole country. They also need to convince more people to change their habits and remember to bring their reusable bottles every time they go to the store.
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