1. Encorp Pacific (Canada)

2. 2 1970Litter Act 1994Encorp Pacific Inc. established 1998Beverage Container Stewardship Program Regulation 2004Recycling Regulation How We Got Started

3. 3 Roles & Responsibilities The Public Provincial Government Local Governments municipalities and regional districts Non-Government Organizations environmental and consumer Government and Non-Profit Sector Not-for-profit Corporate Sector Encorp Pacific (Canada) – a product stewardship agency Retailers Brand Owners For-profit Corporate Sector Private Sector Recycling Industry – depots, processors, transporters and recyclers

4. 4 Unredeemed Deposits Commodity Values Container Recycling Fees calculated for each container type no cross-subsidy between container types How the System is Funded

5. 5 How Encorps system works ENCORP gets paid the deposits & Container Recycling Fee Brandowner packages beverages in their choice of container Sells the beverages to the retailer Charges the retailer deposits and container recycling fees (CRF) Pays Encorp the deposits and CRF SYSTEMPROCESSSYSTEMPROCESS $ 1 BRAND OWNER

6. 6 ENCORP creates consumer awareness programs Pays deposits and CRF to brandowner when beverages purchased Sells beverages and charges purchaser deposits and CRF How Encorps system works 2 RETAILER

7. 7 ENCORP creates consumer awareness programs How Encorps system works Pays deposits and CRF Takes empty containers to depot Receives refund of deposit 3 CONSUMER

8. 8 ENCORP reimburses depots for deposits and pays handling fees Depot pays deposit refund to consumer Depot places containers in bags Depot stores bags for pickup How Encorps system works 4 DEPOT $

9. 9 ENCORP pays fee to transporters Driver collects full bags and loads truck Driver enters number and type of bags into handheld computer Transports containers to nearest processor How Encorps system works 5 TRANSPORTER $

10. 10 ENCORP pays fee to processors Processor bales containers to make them easier to ship Glass containers are crushed How Encorps system works $ 6 PROCESSOR

11. 11 ENCORP receives payment from sale of materials Recycler converts containers into raw material or new products Glass containers are crushed How Encorps system works $ 7 RECYCLER

12. 12 Sales Growth Actual Sales - Units (000's) - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 815,000 2000 849,000 2001 894,000 2002 948,000 2003 1,012,000 2004 1,058,000 2005 Actual 1,122,000 2006 Forecast

13. 13 68.00% 70.00% 72.00% 74.00% 76.00% 78.00% 80.00% Recovery Rate 72.48% 2000 72.48% 2001 74.04% 2002 74.99% 2003 72.97% 2005 Actual 72.50% 2006 Forecast 74.16% 2004

14. 14 Growth of bottled water sales in single serve plastic new types of retail outlets & distribution new types of consumers Increased high-density urban development storage redemption convenience Industrial, Commercial & Institutional (IC&I) sector return-it@work Recycling Fatigue lower priority for local governments Challenges

15. 15 Thank you!