Innovation

The SACHI-Group, Inc. was founded in 2021, with 100% biodegradable and highly compostable cassava bags as their main product. They offer various cassava-based packaging solutions like T-shirt bags, Mailer Pouches, Gripole Bags, laundry bags, and Mutli-Use Bags. They also accept customized products from different companies and organizations and currently supply packaging solutions to notable brands like Decathlon and Havaianas. All their products are derived from cassava resin derived from cassava root starch. The packaging products made from these materials will decompose within 30-90 days and can easily dissolve in hot water. Once broken down, the materials do not produce toxic residues. They can be used to nourish the soil, thus not contributing to plastic pollution and lessening our dependency on petroleum-based packaging.

Cassava is a common root crop that is easily grown in humid and warm climates. Its tubers are rich in starch which can be used to create bioplastic or in this case, cassava resin. This material is then used to create the different cassava-based bags SACHI-Group Inc. offers. The group emphasizes that their bag is biodegradable and “home compostable.” Biodegradable and compostable are sometimes used interchangeably. However, these two terms are very different. Some materials, though labeled biodegradable, will take an indefinite amount of time to break down, some reaching over 1000 years. Compostable materials, on the other hand, will disintegrate over a specified period of time, most of which break down in 180 days. The cassava-based bags of the SACHI-Group Inc. can be dissolved in hot water and break down within 30-90 days, making them home-compostable. This is one of the defining characteristics of their product.

Currently, two predominant types of packaging exist. The first one is petroleum-based packaging, the commonly used plastic, and the second is paper-based packaging, which is now widely used in supermarkets in the Philippines and abroad. According to Ms. Tina Baron, the Business Development Head of The SACHI Group Inc., petroleum-based packaging emits a lot of harmful substances during the manufacturing process. At the same time, paper-based bags use a lot of energy and water. The manufacturing process of cassava bags not only produces zero toxic residues but also significantly reduces greenhouse gas emissions. While it is difficult to overcome the low manufacturing cost of plastic, cassava bags can turn out much cheaper and more durable compared to paper bags.

Cassava bags, an alternative to petroleum-based packaging.

Inspiration

ECONEST is the retail arm of the SACHI-Group, Inc. and was started by the founder and CEO, Nikki Sevilla, in 2019. Its main purpose is to supply different corporations and organizations that want to lessen their plastic footprint with packaging solutions that are not petroleum-based. Cassava-based bags were already established in other countries, and during that time, ECONEST imported cassava bags from Indonesia. It was only two years later that their group managed to get a grant and significant funding to start their manufacturing facility in Bulacan. As stated by Ms. Tina Baron, “Some of the highest producers of waste are restaurants, the fashion industry, and other industries. We decided to target packaging that contributes to that waste and sell biodegradable and home-compostable packaging that can help aid the problem of plastic waste”. Their goal in providing sustainable packaging addresses the issue of plastic waste and helps other businesses meet their environmental goals. SACHI-Group Inc. pioneered the manufacturing of home-compostable cassava bags here in the Philippines. “We aim to be the leading distributor of sustainable and technologically advanced packaging solutions that are locally produced here in the Philippines.”

Nikki Sevilla and the rest of the SACHI-Group Inc. team hope to push the circular economy concept in the Philippines. This has been the main inspiration for developing these packaging solutions. A circular economy is all about responsible consumption and the minimization of waste. Replacing single-use plastics with cassava bags can set a precedent for sustainable practice in the Philippines. The team hopes that one day, cassava-based packaging become one of the top three commonly used packaging materials in the Philippines. This business model or innovation, if done on a much broader scale, has the potential to provide additional income to Filipino farmers. Since customers are actively buying more environmentally friendly products and are willing to pay more for sustainable solutions, cassava can become an ideal crop for farmers to plant. This will also provide additional composting materials for the agricultural industry. “What we wanna do is to significantly reduce the planet’s reliance on petroleum-based materials. We are striving to thrive in a more circular economy,” stated Ms. Baron.

Overall impact

“There are a lot of materials that will work well if you turn them into packaging, like seaweed. The reason we decided to work with cassava bags, is because cassava is a raw material, when you use it to produce bags, it becomes soluble, biodegradable, and home-compostable.”

SACHI-Group Inc. pioneered the manufacturing of cassava bags in the Philippines. While biodegradable bags already exist in the country, the novel value of cassava bags is their home-compostable characteristics. They can be dissolved easily and quickly using hot water and used as compost to nourish the soil. Introducing this innovation in the packaging industry is a massive step towards a more circular economy. This innovation champions the concept of responsible consumption and production.

“What we want to be able to really highlight is that there really is a plastic problem and we should not ignore it. Unfortunately, the community is really dependent on petroleum-based products. And this contributed to this ongoing climate crisis.”

Petroleum-based packaging solutions like single-use plastics contribute heavily to plastic pollution. They usually end up in landfills and, worse, disintegrate into microplastics and spread to the ocean and the food chain. The manufacturing process of petroleum-based products also emits significant amounts of greenhouse gases and toxic residues. Using cassava bags offers a sustainable alternative that reduces these environmental impacts and contributes to life on land, below water, and towards climate action.

“We were able to get the confidence of big brands such as Decathlon, the Havaianas Group, and even Discovery Shores in Boracay. So big companies like that have already been actively purchasing our bags for their operations.”

Big corporations are among the most significant contributors to plastic pollutants. With the rise of e-commerce brought about by the pandemic, single-use plastic, like those used in online shopping, is on the rise. Big corporations must partner with companies like the SACHI-Group Inc. to develop sustainable solutions. SACHI-Group Inc. has been actively partnering and offering its packaging solutions to big companies. One of their goals is to partner with local farmers in different regions of the Philippines to have a consistent source of raw materials. They have also been educating consumers about the value of a circular economy and sustainable packaging.

Business benefit

“In 2022, we received extra grants and funding that enabled us to put up our factory to produce the cassava bags here in the Philippines.”

Cassava bags is the main product of the SACHI-Group Inc. They specialize in manufacturing different varieties of biodegradable and home-compostable bags, making this their primary source of income. Their business is the sustainable innovation itself. Currently, they can produce and supply 9,600,000 units of cassava bags annually. Due to the trend and demand for sustainability, the customer is willing to pay a premium on sustainable alternatives, increasing the value of their main product. Investors, governments, and other organizations are eager to invest in sustainable solutions. Innovation is the bread and butter of the organization.

“Cassava is nature-friendly and safe to be consumed by the microorganisms in the soil. The raw materials that we use are made of organically derived renewable resources.”

Cassava has many business benefits as the primary raw material for their products. It is renewable; therefore, as long as farmers are growing the crop, the business is assured an indefinite supply of the cassava starch. Cassava also emits less greenhouse gas than traditional plastic's raw material and consumes less water than paper-based bags. Using cassava immediately supports farmers and provides them with a steady source of income. Cassava also thrives in tropical climates like the Philippines, making it an ideal crop for farmers.

“We want everyone to know that there is a great alternative available to the plastic pollution problem and that is our cassava bags. We also want to be able to say that together, we want to be able to create a large community of conscious consumers.”

The demand for sustainable products is steadily increasing, and consumers are starting to see their value. This plastic alternative provides substantial brand differentiation and market positioning for the company. The cassava bags also have a unique storytelling potential that can be used to educate consumers regarding responsible consumption and disposal. Sustainability reports by big corporations are now required in the Philippines and most countries. The demand for plastic alternatives will steadily grow, and the unique product proposition of the cassava bags by the SACHI-Group Inc. will be attractive to potential clients. The sustainable aspect of its product will also foster customer loyalty and partnership opportunities.

Social and environmental benefit

"The concept of out of sight, out of mind has been ingrained in how the general public tackles waste. Because of this, our planet faces irreversible damage if we really don't act now."

The SACHI-Group Inc. can produce 9 million units of cassava bags annually. Because of this capacity, their operation has made noteworthy achievements. In 2022, Ms. Tina Baron stated that an average of 800pcs of plastic packaging were diverted from entering the environment every hour. That is around 150 tons of petroleum-based packaging, equivalent to .0056% of the total plastic consumption in the Philippines. This contributes to the mitigation of plastic pollution, the conservation of natural resources, and the protection of biodiversity on land and below the sea. This also reduced the amount of greenhouse gas emissions by 25% compared to the traditional production of plastics and used less water and energy compared to paper-based bags, creating an ideal example of a circular economy. Their success catalyzes and inspires consumers and other corporations to develop their own sustainable practices, innovations, and initiatives.

Since the raw materials are made from the cassava plant, every sale of their bags contributes to cassava farmers. These innovations sustain many farmers' livelihoods and increase the cassava crop's value. Because the cassava bags are home-compostable, they have produced 150 tons of compost material, which can nourish the soil and help with agricultural endeavors. The use of their products and the marketing effort that the company puts behind them all act as an educational platform to raise awareness and spread the advocacy of the SACH-Group Inc. team. The company actively joins webinars, sustainability discussions, and trade shows to discuss its initiatives and innovation. Their product has helped sustain livelihoods and raise awareness regarding responsible consumption.

Interview

Cristina Patricia C. Baron, Business Development Head