Terra Cycle

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TerraCycle
Not to be confused with TerraCycle (recumbent cycling).
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unknown parameter “bodystyle” (this message is shown
only in preview).

Maintaining intellectual property rights, The Coca-Cola
Company gave TerraCycle a license to use its bottles in
TerraCycle products.[14][15] PepsiCo also gave TerraCycle a license to use its distinctively shaped bottles.[16]
In 2004–5, Home Depot Canada and Wal-Mart Canada
began carrying TerraCycle products.[3][17] Other companies followed. During its growth, the company bought an
abandoned mansion to house its interns and a warehouse
for its fertilizer production and offices.[6]

TerraCycle is a private U.S. small business headquartered in Trenton, New Jersey. It makes consumer
products from pre-consumer and post-consumer waste
("upcycling") and by reusing other waste materials. The
company is known for its environmentally-friendly aspects.

1.3 2007: Scotts Miracle-Gro lawsuit

1
1.1

History

The Scotts Miracle-Gro Company sued TerraCycle
in 2007, claiming false advertising and trade dress
violations.[13][18] In response, TerraCycle started a media campaign known as “suedbyscotts.com”.[19][20] Scotts
claimed that TerraCycle’s choice of colors was too similar to its own products.[21] Scotts eventually dropped the
case upon an agreement with TerraCycle to alter TerraCycle’s product packaging.[19] TerraCycle agreed to recolor its packaging to orange and green as well as remove
pictures of fruits and vegetables on its labels.[22] Issues
over product comparison claims on TerraCycle’s packaging were also resolved.[22] In the settlement, Scotts required TerraCycle to host a copy of the agreement on
suedbyscotts.com.[22]

2001–03: Founding and investments

TerraCycle was founded by Tom Szaky and Jon Beyer
in the fall of 2001.[2][3] In 2002, the company bought
a $20,000 continuous flow composting system invented
by Harry Windle of Gainesville, Florida, to take organic waste and have it processed by worms into fertilizer.[3][4][5] The first waste used came from the dining
halls of Princeton University.[3][6]
Initial funding came from family and friends of Tom
Szaky and Jon Beyer as well as awards from business plan
contests.[3][7] TerraCycle received media attention when
it turned down a one million dollar venture investment
opportunity awarded through the Carrot Capital Business
Plan because the investors planned to change TerraCycle’s business model.[3][7] Further funding came from private investors.[3][7] The first investor was Suman Sinha,
who gave $2,000 in exchange for 1% of the company
stock.[3][8]

1.2

1.4 2007–present: Sponsored waste
In 2007, TerraCycle developed waste solutions and
Brigade collection programs for Honest Tea, Stonyfield
Farm, and Kraft Foods.[2] Seth Goldman, founder and
CEO of Honest Tea, asked Szaky for a waste solution
to its Honest Kids brand.[10][23] As Tom Szaky himself designed sample products for the aluminum-plastic
pouches, including pencil pouches and tote bags, Goldman agreed to sponsor the Drink Pouch Brigade.[10][23]
Upon deals with Safeway, Target, and Walgreens to
buy the products, TerraCycle acquired approximately
20 million baled juice pouches stored by Encorp in
British Columbia, Canada, which contained many CapriSun pouches.[10][17][24] Because of intellectual property
and trademark rights, TerraCycle sought out permission from Kraft to use Capri-Sun brand pouches in its
products.[10][25] They obtained additional sponsorship for
the Drink Pouch Brigade as well.[10][25] Programs for
other Kraft brands such as Oreo and Chips Ahoy soon
followed.[10][25] The same year, co-founder Jon Beyer left

2004–06: Vermicompost

Instead of pure fertilizer, TerraCycle sold its products
in liquid form.[6] The company made this decision upon
concluding that liquid fertilizer could have better consumer reception as well as production advantages.[9] The
original purpose for packing its liquid fertilizer in used
plastic bottles was because the company could not afford
new ones.[10][11] Later, the company continued this process and marketed their gardening products as “Waste in
Waste”.[10][12] Schools and local organizations collected
bottles for TerraCycle in exchange for proceeds in what
became known as the “Bottle Brigade”.[3][13]
1

2

2

PRODUCTS AND SERVICES

nies in its upcycled products.[23][27] TerraCycle changed
to use the majority of its collected post-consumer waste
for recycling into plastic molding pellets.[23] Around
2008, it ended its Bottle Brigade program.[28]
As the Brigades grew, other companies partnered with
TerraCycle to create similar waste collection models. For
example, wine companies supported the collection of old
wine corks and wine barrels.[29]
By 2009, TerraCycle moved away from manufacturing to
licensing all of its products.[23][30] As of the same year, it
outsourced its vermicompost production to worm farmers
in North Carolina.[31] From 2012, TerraCycle and various tobacco companies partnered to launch a widespread
collection and recycling system for cigarette butts.[32] The
cigarette butt filters, generally made from cellulose acetate, are refined into pellets that are then used in the production of plastic items such as shipping pallets, benches,
and ashtrays.[33] The company promises that the recycled
plastic from cigarette filters will only be used in industrial products and not in household plastics due to its exposure to nicotine.[33] The recycled cellulose acetate is
mixed with other recycled plastics to create usable industrial products.[33] Tobacco and paper are composted in
this program.[32][34] It took six months for the development of the cigarette butt recycling solution.[33]
On January 29, 2014, Progressive Waste Solutions
announced a 19.99% interest acquisition in TerraCycle Canada to cooperate on recycling initiatives in
Canada.[35]

2 Products and services
TerraCycle has created approximately 200 products, all
of which are licensed to manufacturers instead of made
by TerraCycle itself.[23]

2.1 Plant food

TerraCycle plant food.

TerraCycle to work at another company.[26]
In 2008, TerraCycle partnered with Target to sell recycled Target plastic shopping bags fused together as
reusable bags named “reTotes”.[10] At the end of the year,
TerraCycle lost $4.5 million.[23] As a result, the company
changed it manufacturing processes to use pre-consumer
extra and misprinted packaging labels from other compa-

TerraCycle began with the production of fertilizer made
from vermicompost, which is made by feeding organic
waste to worms. The worms’ excrement is then liquefied
into "compost tea" by mixing it with air and warm water
in large vats.[36] It packages the material in reused plastic
water bottles.[3][13] The spray bottle tops are rejects from
other companies.[3][7] Residue left over from the vats is
used in potting soil and seed starter products.[36][37]

2.2 “Upcycled” products
The company diversified its production into upcycling
around 2007 and began creating products from other
waste items.[2] For example, it makes pencil cases and
backpacks made from used drink pouches.[31] Various
products from pre-consumer waste and post-consumer

3.2

Television show

3

3.2 Television show
TerraCycle was the subject of a National Geographic
reality television series named Garbage Moguls.[43] The
pilot premiered on Earth Day, April 22, 2009.[10] The
show featured the TerraCycle team searching for solutions to various waste streams.[10][31]
In 2014,[44] Pivot launched Human Resources, a reality
TV series providing a behind-the-scenes and at times
humorous look at day-to-day operations at TerraCycle
headquarters.[45]

3.3 Web game
A TerraCycle backpack made from Capri Sun juice pouches.

See also: Trash Tycoon
waste include messenger bags, binders, notebooks, and TerraCycle partnered with game developer Guerillapps
tote bags.[28][31]
to make a Facebook-based flash game known as Trash
Tycoon.[46] The game was launched in 2011,[12] and
it mimics TerraCycle’s actual business model.[46] Major sponsors for the game include Carbonfund.org and
2.3 Recycled products
Treehugger.com.[46] Revenue is generated through the
inclusion of brand logos within the game and the use
Plastic packaging waste that is not upcycled is recycled of virtual currency.[47] TerraCycle receives 25% of the
into plastic products including flower pots, plastic lumber, advertising revenue but none of the virtual currency
plastic pavers, bike racks, park benches, and garbage and revenue.[48] The game donates 10% of its revenues to
recycling cans.[38][39]
Carbonfund.org.[46]

2.4

“Brigade” programs

TerraCycle’s “Brigade” programs enable individuals or
groups to collect specified waste materials in exchange
for donations to a selected cause or school.[2][25] Users
sign up over the Internet,[25] and shipping and donation
costs are generally covered by a sponsoring company related to the specified Brigade.[23][31] The waste materials,
typically non-recyclable, are either refurbished, upcycled,
or recycled.[40][41]

3
3.1

In the game, players take on the roles of recycling entrepreneurs who perform actions such as upcycling and
composting.[46] Avatars collect litter from the streets,
completing missions to earn points.[49][50] The game features synchronized multiplayer play.[46]

4 Corporate affairs

Corporate identity
Logo

According to Tom Szaky, the name TerraCycle “came
up at the beginning [as] the idea of 'earth' and 'cycle'.”[11]
Szaky thought up the name with another Princeton University student during a road trip from New Jersey to
Florida.[42] The TerraCycle company logo is a green
infinity symbol with two arrows pointed toward one another. Szaky designed the logo during the middle of a
lecture at Princeton.[30]

The front of TerraCycle’s headquarters.

4.1 Headquarters
TerraCycle’s main headquarters are located in Trenton,
New Jersey. The office was originally a 20,000 square

4

6

REFERENCES

[2] Shambora, Jessica (13 May 2011). “One man’s rubbish is
Terracycle’s bounty”. Inner City 100. CNN Money (Cable
News Network). Retrieved 6 April 2014.
[3] Burlingham, Bo. “The Coolest Little Start-Up in America”. Inc. Magazine. Retrieved 30 March 2014.
[4] Jo Piazza (July 28, 2002). “Garbage In, Garbage Out.
A Princeton Success Story”. New York Times. Retrieved
14 April 2010. By October Thomas Szaky, a sophomore
from Canada who is majoring in economics, hopes to have
his worm-based waste management business, Terracycle
International Inc., meet a goal of disposing of 15 tons to
30 tons of organic waste a day in Princeton Township.
An inside view of the TerraCycle office in Trenton, New Jersey.

foot abandoned warehouse for a newspaper distribution
facility.[21][51] The headquarters were bought by TerraCycle in the summer of 2004.[52] Its renovations were
designed by Tiffany Threadgould, an employee,[43] and its
walls are painted annually by local graffiti artists at “Graffiti Jams”.[3][23][25]

4.2

Corporate culture

[5] Read, Stuart; Wiltbank, Robert (3 September 2010).
“Where there’s muck there’s brass”. Ideas. Business Life
(British Airways). Retrieved 10 April 2014.
[6] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New
York, USA: Penguin Group. ISBN 978-1-59184-595-9.
[7] Strauss, Robert (10 April 2005). “But the Employees Are
Really Spineless”. The New York Times Company. Retrieved 7 April 2014.
[8] Field, Anne.

“Where There’s Muck, There’s Brass”.

Immpreneur.com (F. Peacock Enterprises, LLC). ReAccording to Szaky, TerraCycle’s culture is “fairly retrieved 10 April 2014.
laxed” in an attempt to “foster a social atmosphere where
everyone can enjoy themselves” because he believes that [9] Szaky, Tom (2013). Revolution in a Bottle: How Terra“people do their best work when they are comfortable
Cycle is Eliminating the Idea of Waste. New York, New
and relaxed”.[14] Furthermore, the company has a lenient
York, USA: Penguin Group. pp. 40–41. ISBN 978-159184-595-9.
dress code.[14] Colorful walls, artistically-minded furniture, and activities supposedly bring about employees’
creativity.[14] Every TerraCycle employee writes a weekly [10] Feldman, Loren (2009). “Garbage mogul makes millions
from trash”. CNN Money. Cable News Network. Restatus report that is compiled into a company-wide bitrieved 7 April 2014.
[53]
weekly report to improve internal transparency.

4.3

Finance

[11] CEO Tom Szaky (Interviewee) (22 December 2009). The
duke of rubbish (News clip). Fortune Small Business.
[12] Allen, Natalie; Knight, Matthew. “Recycling the world’s

trash into cash”. CNN. Retrieved 10 April 2014.
As of 2013, TerraCycle maintains a one percent profit
margin of revenue.[41] Tom Szaky reported TerraCycle
[13] Rob Walker (May 20, 2007). “The Worm Turns”. New
sales in 2004 as $77,000; 2005 as $500,000; 2006 as $1.6
York Times. Retrieved 2010-04-14.
million; 2007 as $3.3 million; 2008 as $6.6 million; 2009
as $7.3 million; and 2010 as $13.5 million.[54]
[14] Bhasin, Kim (29 August 2011). “The Incredible Story
Of How TerraCycle CEO Tom Szaky Became A Garbage
Mogul”. Business Insider. Retrieved 10 April 2014.

5

See also
• Tom Szaky
• Recycling
• Upcycling

6

References

[1] “Company Overview of TerraCycle Inc.”. Bloomberg
Businessweek. Retrieved 25 July 2013.

[15] Neff, Jack (22 October 2011). “Terracycle: Building a
Small Empire on a Foundation of Compost”. Advertising
Age. Retrieved 11 April 2014.
[16] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New York,
USA: Penguin Group. p. 95. ISBN 978-1-59184-595-9.
[17] Fenn, Donna (26 April 2012). “From Refuse to Riches”.
Reader’s Digest Asia. The Reader’s Digest Association,
Inc. Retrieved 10 April 2014.
[18] Hofman, Mike. “Legal Lemons, PR Lemonade”. Inc.
Magazine. Retrieved 30 March 2014.

5

[19] Loten, Angus. “After a Good Fight, David Forced to Settle with Goliath”. Inc. Magazine. Retrieved 30 March
2014.

[36] McDonald, Natalie (20 December 2007). “Splendor in
the Grass”. Living: People. New Jersey Monthly. Retrieved 6 April 2014.

[20] “Talk Show”.
BloombergBusinessweek Magazine.
Bloomberg L.P. 22 April 2007. Retrieved 6 April 2014.

[37] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New
York, USA: Penguin Group. p. 115. ISBN 978-1-59184595-9.

[21] Lewis, Al (8 May 2007). “A dirty business”. The Denver
Post. Retrieved 10 April 2014.
[22] Shirazi, Fayazuddin A. (4 October 2007). “Fertilizer Foes
Settle Fight”. Chief Executive Group, LLC. Retrieved 10
April 2014.

[38] Green, Penelope (10 August 2011). “Making Design Out
of Rubbish”. The New York Times. Retrieved 10 April
2014.

[23] Young, Lucie (17 June 2010). “TerraCycle: The Google
of garbage?". The Telegraph: Earth. Telegraph Media
Group Limited. Retrieved 7 April 2014.

[39] Dwass, Emily (2 November 2012). “It’s A Wrap: TerraCycle and Mars Co-Produce Plan to Stop Flow of Candy
Packaging Into Landfills”. LA Weekly, LP. Retrieved 10
April 2014.

[24] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New
York, USA: Penguin Group. pp. 135–137. ISBN 978-159184-595-9.

[40] Tom Szaky (Interviewee) (30 July 2013). How I Did It:
TerraCycle (News clip). Huffington Post.

[25] Donner, Paige (25 December 2008). “Greening Hollywood: TerraCycle’s Big Green Business”. Huffington
Post: Green. TheHuffingtonPost.com, Inc. Retrieved 7
April 2014.

[41] Bradford, Harry (30 July 2013). “TerraCycle Recycles
The 'Non-Recyclable' - Cigarette Butts, Candy Wrappers
And Its Own Profits”. Huffington Post: Small Business.
TheHuffingtonPost.com, Inc. Retrieved 7 April 2014.

[26] Beyer, Jon. “Jon Beyer on LinkedIn”. Retrieved 6 April
2014{{inconsistent citations}}

[42] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New York,
USA: Penguin Group. p. 28. ISBN 978-1-59184-595-9.

[27] Brat, Ilan. “Start-Up Seeks Profits in Mounds of
Garbage”. The Wall Street Journal Online: Small Business.
The Wall Street Journal. Retrieved 7 April 2014.

[43] Bhasin, Kim (25 August 2011). “PHOTOS: Inside TerraCycle’s Incredible 99% Recycled Office”. Business Insider.com. Retrieved 6 April 2014.

[28] Bounds, Gwendolyn (1 July 2008). “TerraCycle Fashions
a New Life For Old Wrappers”. The Wall Street Journal.
Retrieved 10 April 2014.

[44] http://www.imdb.com/title/tt3833240/?ref_=ttfc_fc_tt

[29] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New
York, USA: Penguin Group. pp. 113–122. ISBN 978-159184-595-9.

[46] Lombardi, Candace (7 September 2011). “TerraCycle
launches waste-to-profit Facebook game”. CNET. Retrieved 10 April 2014.

[30] Birchall, Jonathan (12 January 2010). “Alchemist of all
garbage”. ft.com. The Financial Times Limited. Retrieved 7 April 2014.
[31] Lewis, Al (4 March 2009). “Lewis: Mogul aims to make
millions from garbage”. The Denver Post: Business. The
Denver Post. Retrieved 10 April 2014.

[45] http://www.takepart.com/pivot/human-resources

[47] Empson, Rip (8 June 2011). “Multiplayer Facebook
Game Trash Tycoon Trains You To Be Green (But In A
Fun Way)". Tech Crunch. Retrieved 10 April 2014.
[48] “Terracycle taps Facebook game to encourage connection
with consumers”. NJ Biz (Journal Multimedia). 13 July
2011. Retrieved 10 April 2014.

[32] Wright, Shawn (November 16, 2012). “TerraCycle to recycle cigarette butts”. Plastics News. Retrieved 25 July
2013.

[49] Dumitrache, Alina (16 September 2011). “Trash Tycoon
Upcycling Game Launches on Facebook”. Softpedia. Retrieved 10 April 2014.

[33] Brill, Emily (13 December 2012). “Trenton-based company TerraCycle develops a way to recycle cigarette butts
(with video)". Times of Trenton. Retrieved 8 April 2014.

[50] Green, Penelope (11 August 2011). “A Facebook Game
Teaches ‘Upcycling’". NY Times Green Blogs. The New
York Times Company. Retrieved 10 April 2014.

[34] Smith, Bridie (4 March 2014). “Australia gets cigarette
Brisbanebutt recycle scheme with TerraCycle”.
times.com.au. Fairfax Media. Retrieved 7 April 2014.

[51] Szaky, Tom (10 October 2011). “A Recycling Company’s
New Office Reflects Its Ethic”. You're the Boss Small Business Blogs. The New York Times Company. Retrieved 6
April 2014.

[35] “REPEAT-Media Advisory: Progressive Waste Solutions and TerraCycle to Announce Recycling Partnership”
(Press release). Market Wired.com. 29 January 2014.
Retrieved 6 April 2014.

[52] Szaky, Tom (2013). Revolution in a Bottle: How TerraCycle is Eliminating the Idea of Waste. New York, New York,
USA: Penguin Group. p. 81. ISBN 978-1-59184-595-9.

6

7

[53] Szaky, Tom (8 September 2011). “How Much Information Do You Share With Employees?". You're the Boss
Small Business Blogs. The New York Times Company.
Retrieved 11 April 2014.
[54] Szaky, Tom (27 June 2011). “Why I Tend to Project a
Little High”. You're the Boss Small Business Blogs. The
New York Times Company. Retrieved 7 April 2014. Our
sales have grown from $77,000 in 2004 to $500,000 in
2005 to $1.6 million in 2006 to $3.3 million in 2007 to
$6.6 million in 2008 to $7.3 million in 2009 and to $13.5
million in 2010.

7

External links
• TerraCycle website
• TerraCycle UK
• TerraCycle Canada

EXTERNAL LINKS

7

8

Text and image sources, contributors, and licenses

8.1

Text

• TerraCycle Source: https://en.wikipedia.org/wiki/TerraCycle?oldid=700665979 Contributors: Frecklefoot, Edward, Alan Au, Chowbok,
Colonel Cow, Alansohn, Fourthords, Richard Arthur Norton (1958- ), Rjwilmsi, Mystalic, Bgwhite, Wavelength, Garion96, SmackBot,
Brian Patrie, Unforgettableid, Hmains, OrphanBot, Cybercobra, Bogsat, Pilotguy, J. Finkelstein, Charleenmerced, QAWXPbC64, AndrewHowse, After Midnight, Stevenger, OhanaUnited, GurchBot, AtticusX, Waacstats, Jelly Catullus, Alikaalex, CommonsDelinker,
G2bambino, Wikidemon, Xnatedawgx, ClueBot, Traveler100, Drmies, Piledhigheranddeeper, Rockfang, Alexbot, KittySaurus, Coolguy357, MystBot, Addbot, Luckas Blade, Middayexpress, Luckas-bot, AnomieBOT, Citation bot, Frankie0607, Pink Bull, Full-date unlinking bot, Trappist the monk, Ausgangskontrolle, TrippLite, ChuispastonBot, ClueBot NG, BG19bot, Northamerica1000, Bananasoldier,
Janine.salabritas, Filedelinkerbot and Anonymous: 41

8.2

Images

• File:CGW_TerraCycle2_(14106012050).jpg Source: https://upload.wikimedia.org/wikipedia/commons/5/5d/CGW_TerraCycle2_
%2814106012050%29.jpg License: CC BY-SA 2.0 Contributors: CGW_TerraCycle2 Original artist: Terra cycle
• File:DrinkPouch_Backpack_(14292644375).jpg Source:
https://upload.wikimedia.org/wikipedia/commons/1/1d/DrinkPouch_
Backpack_%2814292644375%29.jpg License: CC BY-SA 2.0 Contributors: DrinkPouch_Backpack Original artist: Terra cycle
• File:Factory_1b.svg Source: https://upload.wikimedia.org/wikipedia/commons/b/b6/Factory_1b.svg License: CC-BY-SA-3.0 Contributors: PNG version on the English Wikipedia Original artist: Dtbohrer, updated to SVG by Tomtheman5
• File:Front_of_TerraCycle_HQ.jpg Source: https://upload.wikimedia.org/wikipedia/commons/4/48/Front_of_TerraCycle_HQ.jpg License: CC BY-SA 2.0 Contributors: −1 Original artist: Terra cycle
• File:TerraCycle-Office7_(14312826833).jpg Source: https://upload.wikimedia.org/wikipedia/commons/e/eb/TerraCycle-Office7_
%2814312826833%29.jpg License: CC BY-SA 2.0 Contributors: TerraCycle-Office7 Original artist: Terra cycle

8.3

Content license

• Creative Commons Attribution-Share Alike 3.0

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