Plastics ban could spur price rise, experts say
Big firms confident they can meet targets, but smaller chains may need some time to adjust
As the federal government moves to ban plastic bags, stir sticks and cutlery, some retailers and restaurant owners are shrugging off the challenge, saying they’d been getting greener anyway because of pressure from customers.
Experts, however, warn there could be supply chain issues and price increases on groceries and takeout food.
On Wednesday, federal Environment Minister Jonathan Wilkinson announced the government is proposing to ban six plastic items by the end of 2021, including plastic checkout bags, straws, stir sticks, six-pack rings, cutlery and some takeout containers.
For many big companies, including Restaurant Brands International, the parent company of Tim Hortons, the move away from plastics had already begun. “Because we started early last year, we’ve built the lead time on our supply chain. Other companies might have to rush a bit,” said Duncan Fulton, chief commercial officer at RBI, which also runs Burger King and Popeye’s.
“We’re confident we’ll be able to meet those targets by the end of 2021, and with some of them, we’ll be doing it earlier than that.”
As one example, Fulton pointed to the paper straws Tim Hortons has been introducing into its coffee shops, a changeover that will be complete by early next year. The chain is also testing compostable cutlery made from bamboo.
At Loblaws, stir sticks and straws are being eliminated by year’s end. The country’s largest grocery retailer also says it’s aiming to have customers use reusable bags, rather than replacing plastic with paper, said spokesperson Catherine Thomas.
“We understand the importance, but also the complexity, of reducing single-use plastic waste. Today’s announcement by the government is another step along that journey, and our business is already well down the path to meeting the time lines,” said Thomas.
For some individual restaurants and smaller chains, however, it could take some time to adjust, warns David Lefebvre, vice-president of the industry association Restaurants Canada.
“The government needs to make sure there’s enough time for restaurants to implement this. As we’ve seen with COVID, even restarting the exact same supply chain takes time. And this isn’t the same supply chain,” said Lefebvre, who urged the federal government to focus on education rather than enforcement of new rules once they’re introduced.
“There’s precedent for an incremental approach with education for new rules, like when freon was banned from freezers and refrigerators,” Lefebvre said.
Freon was banned in the manufacturing of fridges and freez
ers in 2010, but its use has been phased out, with the final steps being taken this year.
At restaurant supply wholesaler Greenshift, the demand from customers for nonplastic containers and cutlery has been growing over the past few years, even without firm government action, says CEO Jennifer Wright.
“There’s definitely been a greater demand in the last year or two,” said Wright, whose 20year-old firm has seen its customer base grow from small independent coffee shops into the broader corporate world.
“We’ve got a lot of big companies using us to get supplies for their on-site food service. Or
they’re putting pressure on their caterers to get more sustainable options, and their caterers come to us,” said Wright.
In an ideal world, says Wright, her customers wouldn’t replace disposable plastic with other disposable items. Instead, they’d only want reusable goods. But during COVID-19, even her greenest customers have been buying disposable bamboo or wood cutlery, because of concerns about reusable products spreading the virus.
“They’re calling up almost embarrassed. The truly environmental stuff is reusable,” said Wright.
No matter when the ban be
comes final, the shift away from plastics will likely mean higher prices for groceries and takeout food from restaurants, says Sylvain Charlebois, director of the Agri-food Lab at Dalhousie University.
“Whatever you replace plastic with is going to be more expensive, no question. For businesses, plastics have been beautiful because they’re cheap, and they’re very good at keeping food fresh,” Charlebois said, adding that there’s still also a somewhat limited supply of things like paper straws and wood or bamboo cutlery.
“There will definitely be some supply issues for the alternatives,” Charlebois said.