The Schwarz Group has taken a notable path toward integrated circular economy in retail with PreZero. At interpack 2026, Alexander Reitz, expert at PreZero, lays out the strategic and operational thinking behind that 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 emphasizes. 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 sees the largest untapped potential for circular business models in retail in granular data analysis. “If you have this data and a detailed perspective on the materials used, you can look at standardization, run portfolio analyses, and also analyse sustainability and cost drivers.” That visibility turns sustainability from a discussion into a quantifiable input for sourcing decisions.
The Schwarz Group’s approach shows that successful circular economy in retail rests on three pillars: integrating the full value chain, deploying technological innovation, and — above all — a fundamental change in mindset. Without all three, recycling stays a downstream fix; with them, it becomes a strategic capability.
