The Schwarz Group has forged a distinct path towards an integrated circular economy in retail with PreZero. At interpack 2026, Alexander Reitz, an expert at PreZero, will outline the strategic and operational thinking behind this approach.
From internal service to market leader
The foundation for PreZero was laid years ago with the internal service “GreenCycle”, which collected stretch film and cardboard from the stores. “We thought that if you focus on areas that are adjacent to the core business of retail, there is a lot of potential there,” Reitz explains. Through strategic acquisitions of Tönsmeier, parts of Suez in Europe, and Cespa, the company grew into the largest EPR system for packaging in Germany, holding a 25 percent market share.
What started as a way to keep waste streams in-house has become a fully fledged business model — and a structural advantage for the retail group itself. Owning the loop, rather than buying it from third parties, is now the basis on which Schwarz develops its packaging strategy across geographies.
High tech instead of waste management
Producing high-quality recyclates calls for sophisticated technology. “This is an area that used to be called waste management, but now it’s a high-tech business,” Reitz emphasises. The process involves colour sorting, hot washing and a flake refresh step to remove odours. These technologies enable 100 percent rPET bottles and HDPE applications in cosmetics.
A central insight concerns the changing hierarchy in packaging evaluation. “It's a major shift in awareness that the value, or the hierarchy, of packaging is really changing,” says Reitz. Where the product used to take centre stage with quality, price and marketing — and packaging was treated as a downstream concern — packaging sustainability and compliance now have to be considered far earlier in the thinking and in purchasing decisions.
Data as the biggest untapped lever
Reitz believes that the greatest untapped potential for circular business models in retail lies in granular data analysis. “With this data and a detailed perspective on the materials used, you can consider standardisation, run portfolio analyses, and also analyse sustainability and cost drivers.” This visibility transforms sustainability from a discussion into a quantifiable input for sourcing decisions.
The Schwarz Group’s approach demonstrates that a successful circular economy in retail relies on three pillars: integrating the full value chain, deploying technological innovation, and – above all – a fundamental change in mindset. Without all three, recycling remains a downstream fix; with them, it becomes a strategic capability.
