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The encyclopedia · Strategy & Leadership · Strategic decision · 1992-2025

IFCO rented the crate, not the box, so fresh produce stopped using cardboard

IFCO owns a pool of reusable plastic crates it washes, repairs and recirculates, letting growers and retailers stop buying single-use cardboard.

IFCO Systems

the move

Fresh produce traditionally moved in single-use corrugated boxes, which a grower had to buy in advance and which became waste at the retailer.

In 1992 IFCO, founded in Germany, introduced a scalable pooling model for reusable plastic crates at a time when most markets still relied on single-use cardboard, and backed it with its own washing and logistics network.

Today IFCO supplies millions of standard crates into fresh-food supply chains, recirculating them many times over. Because one provider owns and recirculates the pool, the whole chain gets the benefit of consolidation without any single partner having to take responsibility.

why it works

  • One owner running the pool means crates get washed, inspected and recirculated to a standard nobody has to police internally.
  • A standard, stackable crate is compatible with automation, so packing and handling stay efficient.
  • Reuse replaces large volumes of single-use packaging, cutting material cost and waste for the growth sector.
  • The grower pays per trip, which converts a fixed capital cost into a variable, demand-linked cost.
the payoffOwn the crate, rent the use, run the loopclever

what transfers

If the thing everyone needs is identical and mostly empty, don't sell it; keep it, rent the use, and run the washing and return loop yourself. The value is in the rotation, not the box.

what came after

IFCO scaled across Europe, the Americas and Asia-Pacific, supplying millions of RPCs and expanding through acquisitions (with Triton becoming a major shareholder in 2019 and Stonepeak joining as co-investor in 2025). It added smart features such as crate identification, automated sorting and customer dashboards for asset visibility, and reports RPCs are used up to 120 times and recycled at end of life.

references

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