Keurig Accused of Misleading Recycling Claims Regarding Its Coffee Pods

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Keurig has recently been under scrutiny by the Securities and Exchange Commission (SEC), which cited the company for making “inaccurate statements” concerning the recyclability of its single-use coffee pods. In response to these allegations, Keurig has agreed to a cease and desist order and will pay a civil penalty of $1.5 million to settle the related charges.

The situation underscores an ongoing issue in corporate sustainability claims, suggesting that consumers may often find such assertions misleading. The recyclability of various plastics varies significantly; even if a product is marketed as recyclable, it might not be accepted by local recycling facilities due to the type of plastic used.

The SEC’s charges against Keurig Dr Pepper Inc. were primarily linked to the company’s annual reports from 2019 and 2020, which stated that the firm tested and “validate[d] that [K-Cup pods] can be effectively recycled.” However, Keurig allegedly failed to disclose critical information regarding the challenges associated with the actual recycling of these pods. According to the SEC announcement,

Keurig did not reveal that two of the largest recycling firms in the United States had raised serious concerns about the feasibility of recycling K-Cup pods through curbside programs, stating that they did not currently plan to accept them for recycling. In 2019, K-Cup pod sales represented a substantial portion of Keurig’s revenue from its coffee systems segment. Research conducted by a Keurig subsidiary has indicated that environmental considerations play a notable role in consumer decision-making when purchasing a Keurig brewing system.

While agreeing to the settlement, the company did not admit to any wrongdoing, as noted by the SEC. Notably, Keurig’s official website still claims that its K-Cup pods have been recyclable since the end of 2020. Prior to that date, many of these pods were manufactured with No. 7 plastic, categorized as a “catch-all” for materials that are particularly difficult to recycle, according to Consumer Reports.

Currently, Keurig states that the pods are now made from No. 5 plastic, or polypropylene, which is also commonly found in yogurt containers and drinking straws. Despite this change, No. 5 plastic is still regarded as more challenging to recycle compared to No. 1 plastic, such as PET, which is used for beverage bottles.

In light of these developments, Laren Marra, director of corporate communications at Keurig Dr Pepper, stated, “We are working with individual municipalities and recycling operators to help increase explicit acceptance of K-Cup pods where they already accept polypropylene.” Regarding the SEC’s findings, Marren added, “We are pleased to have reached an agreement that fully resolves this matter.”

Update September 13th: This post has been updated with a response from Keurig Dr. Pepper.

Source
www.theverge.com