Transcend Packaging and Starbucks EMEA Launch First PE-Free, Compostable Coffee Cup

IW Capital’s portfolio company, Transcend Packaging Ltd, has announced a historic partnership with Starbucks EMEA to bring to market a PE-free paper cup that is both widely recyclable and home compostable. This innovation marks the first large-scale introduction of this emerging technology applied to a coffee cup and will be rolled out across select European markets.

The redesign applies to Starbucks’ iconic white takeaway cup. Traditionally, paper cups are lined with PE (polyethylene), a plastic polymer that makes recycling difficult and contributes to waste ending up in landfills or incineration.

Transcend Packaging has engineered significant innovations in the cup manufacturing process. The plastic lining has been replaced with a mineral-based coating, and single-use plastic lids have been replaced with fibre alternatives coated in the same mineral-based material. This results in a cup that is certified home compostable while also being easier to recycle, without compromising the premium customer experience.

This achievement is the result of close collaboration with partners including Qwarzo®, Metsä Board, flustix – Rethink Plastics, DIN CERTCO, CIRCPACK®, and Veolia. Transcend Packaging is also a proud signatory of the Ellen MacArthur Foundation’s Global Commitment, reinforcing its dedication to advancing a circular economy.

The cup retains the familiar Starbucks design, but with one big difference: it is now a truly sustainable alternative for the millions of customers enjoying their hot beverages across Europe.

Congratulations to the entire team at Transcend Packaging Ltd. on this groundbreaking achievement. This milestone demonstrates the power of innovation, collaboration, and commitment to sustainability at scale, a perfect example of how IW Capital-backed businesses are transforming industries for a greener future.