Pulp Project

Tim Cody (Junior Financial Analyst)

 Table of Contents
Executive Summary……………………………………………………………………………….3

The Problem………………………………………………………………………………….……4

Project Description…………………………………………………………………...…...……….5

Cost Analysis…………………………………………………………………………........……6-7

Assessment Strategy………………………………………………………………………………8

Conclusion…………………………………………………………………...……………………9

Appendix……………………………………………………………………………….………...10

Works Cited…………………………………………………………………...…………………11

2
 Executive Summary
Who We Are
Nekter Juice Bar is not just a safe haven from the fast food littered culture. Nekter is a
sustainably healthy lifestyle. We do not preach the benefits of a single juice, but rather the
plethora of life-changing results from drinking a juice every single day. Therefore, we are a long-
haul company, focused on bettering ourselves by giving customers the opportunity to better
themselves through eating natural fruits and vegetables.

Where To Improve
Upon reflection, Nekter can improve itself by limiting the amount of food waste. In each store,
when employees make juices, the liquid is served, and the remaining pulp is immediately thrown
in the garbage. Yet, the pulp still holds 95% of the fiber and plenty of nutrients. Sending the
remnants to a landfill undermines our mission of maximizing healthy lifestyles. Therefore,
Nekter needs a new method of pulp disposal.

How To Improve
As a response, Nekter should partner with Pulp Pantry to recycle the pulp into more edible and
healthy foods. Pulp Pantry is a Southern California based company that uses pulp to create a
variety of snacks. In this case, the food would not be going to waste. Also, each location would
be able to minimize its trash impact. If Nekter partnered one location with Pulp Pantry, Nekter
could determine whether or not there is a solution to our waste problem.

Costing
Weekly Figures According to financial models, partnering with Pulp
Comparison Per Store Pantry does seem financially advantageous. If Nekter
were to go forward with the proposal, a number of
3000
weekly expenses would fall, as seen in the figure on
2500 the left. While the company would gain a few one-
time costs, the benefit would far outweigh the costs.
2000 Finally, in the table below, the huge investment gain
and ROI are stated. In conclusion, the positive affect
Dollars

1500 of Pulp Project on Nekter’s triple bottom line cannot

be overstated.
1000

500

0
Dumpster Employee Cost of
Expense Cost to Shipping
Take Out Trash
Trash
Types of Expenses Affected

Before After

3
 The Problem
Never Settle
Nekter Juice Bar emphasizes the value of never settling. Rather than simply accepting a culture
that pushes fatty foods filled with unnatural oils and cholesterol, Nekter chooses to be different.
By looking to the earth, our founders recognized the merit of increasing the number of fruits and
vegetables in our daily diet. Therefore, Nekter popularized the concept of a juice bar: a health
oasis where consumers can fuel their bodies with natural ingredients.

Since the first Nekter Juice Bar opened in 2010, more stores have exploded across the country,
unleashing a wave of tasty juices. As Nekter reaches new communities, the company is able to
help people look and feel better than ever. Thus, Nekter has helped consumers to “live the Nekter
life,” which is “about embracing healthy living as a sustainable lifestyle, not as something that
comes and goes.”

New Challenges
During my summers as a juicer in Phoenix, I learned the
ins and outs of a Nekter restaurant. I was able to see how
the restaurant operates internally and externally. Under
my manager James Paul, I came to appreciate the effort
and logistics that went in to making sure that the store
opened and closed on time with no mishaps. However, I
saw room for improvement that started in the kitchen.
Every time that I made a juice for a customer, I would fill
the juicer machine with more pulp that would be thrown
in the garbage. Unsure of what to do, I simply followed
orders. Now, I see a great opportunity for Nekter to make
a more sustainable world.

Thus, Nekter must not settle with its standard procedures but instead continue to improve. While
Nekter has been bettering the lives of both its customers and employees, it has sacrificed some
attention and care that belongs to the Earth. In each 16-ounce juice Nekter produces, there is
about 3.5 pounds of pulp waste. Rather than compost the pulp, the standard practice is for
employees to dispose of the pulp along with other trash. In 2015, about 100 million 16-ounce
juices were sold, and the market is expected to continue growing. Therefore, each location is
wasting huge amounts of food unnecessarily.

The vast majority of this pulp goes into a dumpster that leads to a landfill. In fact, in 2015,
175,000 tons of pulp waste wound up in a landfill. Not only could the food have been used to
feed the community, but the rotting food releases methane. In fact, the juice pulp is estimated to
have released about 200,000 tons of carbon dioxide into the atmosphere.

Finally, pulp contains quality ingredients that can fuel the body. According to Royte, “by some
estimates, pulp contains nearly 95% of the fiber, 2/3 less sugar, and 1/2 the nutrients of whole
fresh fruits and vegetables.” By those calculations, there is reason to believe that Nekter is not
maximizing use of its ingredients.

4
 Project Description
Historically, juice companies have only a few options regarding how to manage their leftover
pulp. For example, some companies will spend millions of dollars to haul their pulp to a compost
center. Alternatively, some smaller companies are able to organize for local farms to use the pulp
as feed for livestock. Yet, most companies, including Nekter, simply trash the pulp and send it to
a landfill.

While there has previously never been a clear solution about what to do with leftover pulp,
Nekter has the opportunity to solve it once and for all with the Pulp Project. In the Pulp Project,
Nekter would be partnering with Pulp Pantry to accommodate both companies’ goals. Pulp
Pantry is a company that partners with large manufacturers to turn pulp into healthy pantry items.
They recognized the excessive waste that came along with the juice craze and decided to turn
pulp into something new. Currently, the company takes pulp and transforms it into healthy
chips.

If Nekter partners with Pulp Pantry, Nekter would be able to solve its waste problem while Pulp
Pantry would be able to grow its operations. In this arrangement, Nekter employees could have
separate trash cans for juicer pulp and regular waste. Then, the produce could be shipped to Pulp
Pantry, where it would be turned into chips. To complete the circle, Nekter could even sell Pulp
Pantry chips in its stores.

Planet- First and foremost, a partnership with Pulp

Pantry would benefit the planet. In Pulp Pantry’s first
production of Pulp Chips, 1,080 kilograms of celery and
292 kilograms of kale pulp were upcycled. That equals
1,372 kilograms of produce that would have been
wasted, 146,896 liters of water to grow the rescued
produce, 2,607 kilograms of carbon dioxide out of the
atmosphere, and 5,581 square feet of farmland used to
grow the rescued produce. Additionally, by limiting the
amount of trash, Nekter will be limiting its contribution
to landfills.

People- Second, Nekter prides itself on being able to help consumers reach a well-rounded and
healthy lifestyle. For most people, that requires more than just adding a few juices to their diet. If
Nekter can offer healthy chips in addition to their current menu, they will be one step closer to
helping their consumers attain a sustainable healthy lifestyle.

Profits- Third, if Nekter and Pulp Pantry can reach a reasonable shipping price, this Pulp
Project should be financially beneficial for Nekter. Since Nekter will have less trash, each store
will not require as large of a dumpster or nearly as many weekly trash pickups. Therefore, stores
will save on their waste budget. Also, if Nekter supplies Pulp Pantry with pulp, Nekter may be
able to buy the chips at a discounted rate and sell them for their market price.

5
 Cost Analysis

In the table above, the weekly costs of adopting this new strategy are laid out. I took the liberty
of assuming dumpster sizes. Additionally, I predict that by having employees save pulp, the
number of trips employees take to the dumpster will be cut by 1/3. Finally, I based shipping costs
on Compostable LA, a service that picks up household compost. Since Compostable LA charges
anywhere from $30-45 per month depending on the frequency of pickups, I decided the
maximum number would be appropriate for a commercial restaurant.

In this second table, the revenues and costs of buying and selling the Pulp Pantry chips are
displayed. Since most consumers coming in to Nekter do not expect to purchase chips, I gave a
conservative estimate of 8 bags of chips sold per week. Also, I assume that Nekter will be able to
purchase at a cheaper price than consumers because Nekter will be buying in greater bulk, and
they have a working relationship with Pulp Pantry. So, I gave another modest prediction of
buying at 75% of regular consumer price.

6
 Cost Analysis (Continued)

In this third table, the one-time fixed costs are shown. In this table, I assume two-23-gallon trash
bags will sufficiently hold the pulp. Also, I assume that employee training will only require
about 15 minutes.

In the fourth table, the totals saved through this Pulp Project are expressed. Although a large
change, each Nekter store has the ability to make around $46,000 per year.

In this final table, the investment gain and ROI are stated. The massive gains indicate that
pushing “Pulp Project” forward could make the company money.

7
 Assessment Strategy

Short Term Goals

• Incorporate Pulp Project into one single store in Los Angeles near Pulp Pantry
• Measure the change in waste produced before and after the project
• Note the difference in dumpster costs
• Quantify the revenues and costs related to selling Pulp Pantry’s chips
• Encourage customers to rank their willingness to buy Pulp Pantry’s chips
• Survey employees before and after changing pulp procedures

Long Term Goals

• Slowly expand the Pulp Project to a second location in Los Angeles
• Expand to the entirety of Los Angeles, followed by the rest of California, and lastly other
states
• Use Nekter’s unique food recycling system as the focus of a marketing tactic
• Switch from plastic cups, spoons, bowls, and straws to paper to reduce trash

8
 Conclusion
Nekter Juice Bar has been a trailblazer for reimagining healthy foods in the United States. Rather
than simply sell green foods and drinks, Nekter embraces the notion of creating a completely
healthy lifestyle. Unfortunately, Nekter has some unwanted fats in its own diet (wasted food) that
need to be purged. Therefore, with the collaboration of Pulp Pantry, Nekter can limit its waste.
By recycling the pulp from juicing, Nekter can help the environment, community, and profits.
Never settle!

9
 Appendix
TO: Store 16528 Nekter Employees
FROM: Tim Cody
DATE: May 17, 2021
SUBJECT: Pulp Project Immediate Implementation

Hello Team,

To my great pleasure, Nekter will be implementing a trial of “Pulp Project” to your store. In an
attempt to limit unnecessary food waste, your store will be partnering with Pulp Pantry to save
the nutritious pulp from the juicer. Rather than dispose of the pulp, the remnants will be picked
up from the store to be made into healthy chips. If “Pulp Project” proves to be a success in your
store, the initiative will be spread to our other locations.

The supplies needed for this project will arrive at your store by the end of this week. At the
beginning of next week, manager training will begin with employees. On the following Monday,
“Pulp Project” will begin.

While still small, this project has the potential to drastically impact our community. However,
“Pulp Project” will never become part of the Nekter experience without your help. Therefore, I
thank you in advance for you dedicated work in making us a more sustainable company. I look
forward to hearing your feedback on “Pulp Project” once it is implemented.

10
 Works Cited
“About Nekter Juice Bar.” Nékter Juice Bar, www.nekterjuicebar.com/pages/about.

Frequently asked questions. Pulp Pantry. (n.d.). https://pulppantry.com/pages/faqs.

How Much Does Commercial Dumpster Service Cost? How Much Does Commercial Dumpster
Service Cost? | Dumpsters.com. (n.d.). https://www.dumpsters.com/pricing/commercial-
dumpster-
prices#:~:text=How%20Much%20Does%20Commercial%20Trash,size%20and%20waste
%20collection%20frequency.

Lynch, G. H. (2018, February 2). From Scraps To Snacks: Pulp Left Over From Juice Bars Is
Reborn In New Foods. NPR.
https://www.npr.org/sections/thesalt/2018/02/02/582145046/from-scraps-to-snacks-pulp-
left-over-from-juice-bars-is-reborn-in-new-foods.

Royte, E. (2018, October 10). The Dirty Truth About Cold-Pressed Juice. Modern Farmer.
https://modernfarmer.com/2016/06/cold-pressed-juice-food-waste/.

Start Composting. LA Compost. (n.d.). https://www.lacompost.org/start-composting.

11