This story is also available in Welsh – click here to read it.
Secretary of State Jo Stevens has visited award-winning Transcend Packaging, based in Ystrad Mynach, to view progress on their new hot cup and lid for Starbucks in Europe.
The two companies worked together on extensive R&D and manufacturing innovations to develop the new iteration of Starbucks’ iconic white cup which launched across Europe in the summer and will soon be coming to the UK. Part of the funding for the development of this new product came from CCR’s Innovation Investment Capital (IIC) in 2024. The Deputy Leader of Caerphilly County Borough Council Cllr Jamie Pritchard and CEO Ed Edmunds also attended the visit.
A common challenge with plastic-lined takeaway coffee cups is that they may be difficult to recycle with the plastic lining needing to be separated from the paper cup during the recycling process. Through their partnership, Transcend and Starbucks’ work has culminated in the replacement of the cup’s plastic lining with a mineral-based coating. In addition, the single-use plastic lids have been replaced with fibre alternatives, coated with the same mineral-based material.
Transcend’s new cup for Starbucks is the first application of this emerging technology to a coffee cup at scale and is a widely recyclable and home compostable alternative for when customers don’t have a reusable cup. Manufacturing has already begun at Transcend’s Ystrad Mynach headquarters, which employs nearly 200 people and shipments are already being sent to numerous markets across Europe.
Overall, it’s been quite a year for Transcend and CCR’s Innovation Investment Capital. The packaging innovator has won major awards in the UK including a “Gold” prize for cup innovation at the UK Environmental Packaging Awards and the “Manufacturing Export Award” at the recent Made in Wales Awards. In addition, CCR and the Innovation Investment Capital team has recently won ‘Small Deal of the Year’ for its funding of Transcend.
Secretary of State for Wales Jo Stevens said: “Transcend Packaging are a fantastic Welsh success story. Through their partnership with Starbucks they have successfully grown their exports and are providing more good jobs that put money in the pockets of local people.
“The UK Government is backing innovative businesses like Transcend, via our investment in Cardiff Capital Region, which will help us achieve our mission to create economic growth in every part of Wales and the UK.”
Channing Nuss, Transcend’s Director of Corporate Affairs and Sustainability and Co-Founder, said of the visit:“This project marks a defining moment for Transcend and manufacturing innovation in Wales. Starbucks’ Europe-wide rollout of this new technology allows us to demonstrate the transformative potential of the packaging solution we’ve developed. We applaud Starbucks’ courage in redesigning and transforming its iconic cup, creating a premium new product while removing the plastic lining and adopting fibre lids. With CCR’s Innovation Investment Capital support, we’ve delivered a breakthrough in paper cup technology that proves how innovation and collaboration can drive global change.”
Adam Turner, Starbucks Director of Sustainability Strategy and Compliance, said of the visit: “I’m proud to be part of the team that brought Starbucks’ new certified compostable and widely recyclable cup to markets in Europe – a meaningful milestone in our ongoing journey to deliver more sustainable innovations while elevating the customer experience. I’m thankful for our partnership with Transcend Packaging and the dedication of everyone involved to make this happen.”
Cllr Anthony Hunt, Deputy Chair of CCR and lead for Research, Innovation and Investment, commented: “The progress being made by the team at Transcend is remarkable and shows what can be achieved when bodies such as Cardiff Capital Region collaborate with innovative companies in the private sector. The funding from the Innovation Investment Capital has helped to spark jobs growth and environmental progress through Transcend’s innovation.”
