Living without plastic - is it worth it?

When it comes to the climate crisis, Katharina Richter is like Eckart von Hirschhausen: the earth is our living room and we keep it clean. The managing director saved the first original unpackaged store in Berlin Kreuzberg from insolvency. In an interview with ntv.de, she explains why it pays to live waste-free.

ntv.de: The idea of Original Unverpackt failed at several German locations last year: the store in Berlin Kreuzberg also went bankrupt. Why are you still sticking with the concept?

Katharina Richter: I was already working for Original Unverpackt before I took over last year. The reason for the insolvency was not the concept itself. Rather, the store was crushed by the credit burden and projects that were not pursued. In order to operate well, it simply had to shrink to a healthy size. We had 30 employees at our peak - now we are down to ten.

You were able to turn things around with the help of crowdfunding. To launch OU, founder Milena Glimbovski raised more than 100,000 euros in a campaign in 2014. The 2022 rescue campaign only raised 12,000 euros. Is the enthusiasm waning?

Katharina Richter has been Managing Director of Original Unverpackt in Kreuzberg since 2022.

Last year's campaign was primarily intended to secure pre-financing for the goods for one to two months - the store already existed. This meant that a higher amount was not necessary. The whole thing also served as a marketing campaign. We urgently wanted to generate reach after the media coverage had broken our backs to a certain extent.

In what way?

Many media outlets reported on the insolvency. The fact that the store was still open and is still open today went unmentioned. With the help of the crowdfunding campaign, we were also able to make positive noise.

What are your current marketing strategies?

We are operating at a lower but very stable level. We are focusing on our regular customers and want to establish ourselves better in the neighborhood. Of course, we also use Instagram and other social media channels and send out newsletters. Our focus is not primarily on growth, but on improving individual processes and building up a financial buffer.

Was or is there any other funding besides crowdfunding?

According to the Berlin Senate, there is a lot of funding for young companies - but there is no suitable category for our concept. When we applied for non-profit status, we were told that we were just a profit-oriented supermarket. But we are so much more: we are a source of inspiration and a meeting place, offering space for education and sustainable development. We promote environmental education in daycare centers and regularly conduct guided tours of our facilities. This is where politics is clearly lagging behind. There is still a lack of a suitable form of business for companies that are oriented towards the common good. As a result, there is hardly any room for support.

Pandemic, war and inflation - Germany is sliding from one crisis to the next. Do you regret the takeover?

I try to keep the whole thing separate. For me, my job means self-realization and is also a strategy for coping better with the world situation as a whole. Because I know that we are doing something meaningful and valuable. That's why I can't imagine a better profession.

The crises have also left their mark on consumers. How are you dealing with customers' reluctance to buy?

The changes can be felt throughout the food retail sector. We and the organic trade are being hit particularly hard, as we are simply not as financially strong as the discounters. Nevertheless, our sales are sufficient to enable us to devote ourselves to additional projects. We recently managed to take over a second store that was about to close due to the owner's relocation. Through more exchange and closer regional cooperation, we are also more resilient to global crises and can grow closer together overall - even in the neighborhoods, which unfortunately often become more anonymous. We are also investing a lot of time in the Unverpackt association, in professionalizing the industry and in founding a purchasing cooperative.

Sustainability is often seen as a luxury topic. How do you want to reach ordinary consumers with your concept?

Fortunately, we are not alone in our efforts. As Eckart von Hirschhausen likes to say at his events: "You don't poop in your living room either". This world is our living room and at the moment we are consuming more than can be restored. It is imperative that we stop degrading our own livelihoods. Sooner or later, everyone will realize this, as the consequences are already being felt. People don't like being told that they are doing something "wrong" and then start to fight back. We want to point out that things can be done differently without pointing fingers. To do this, we offer resource-saving alternatives for consumption.

What do these alternatives look like?

We not only dispense with retail packaging, but also secondary and tertiary packaging and everything that comes before it. We accept used glass and ensure that it is reused. For a deposit, old parcel packaging, i.e. small cardboard boxes that are no longer used, can also be handed in to us - this saves us unnecessary costs for new parcels. Many people always think that recycling alone is the solution. But we also need to minimize our overall consumption because the necessary raw materials are dwindling.

How does waste reduction work in practice?

Our products are delivered in reusable containers or in bulk and without outer packaging. Spaghetti comes in a 5 kg bag and saves 58 percent primary and 100 percent secondary packaging compared to the 500 g pack in the (organic) supermarket. Oregano comes in a reusable bucket and requires no packaging waste at all. Strained tomatoes are sold in returnable jars, saving countless disposable jars and thus waste glass. In 2023, our 262 member stores avoided over 500 kilos of plastic (or 230 full yellow bags), almost 3 tons of cardboard and over 12,000 tons of used glass just by selling Spaghetti Napoli. And that's with three products from a range of around 800 products.

Consumers are increasingly able to shop in supermarkets without packaging. Why is it still worth going to an unpackaged store?

On the one hand, competition stimulates business, and on the other, we are pleased when others also recognize the sense of our cause. It is not a question of taking this realization for granted - on the contrary. Nevertheless, it is still worth going to an unpackaged store as we almost exclusively offer organic products. Our selection is usually larger than in conventional supermarkets. We also use large containers throughout. Most of our products end up in 20 to 25 kilo containers. Many supermarkets are not designed to store such products. However, the fact that larger supermarkets are gradually adopting our themes shows that we have our finger on the pulse here - if not ahead of the times.

How do you stay motivated despite the "crisis marathon"?

My son is my biggest motivator. I am fighting to provide him with a livelihood. I myself grew up in relatively calm times - a great privilege. Now I want to leave the planet a little better than I found it. Stores like ours don't reduce prosperity - we secure prosperity for future generations. Because prosperity doesn't just mean consumption, expensive cars or travel, but also the preservation of good living conditions.

Another insolvency would be a nightmare scenario. What would you do then?

As managing director, I keep an eye on the liquidity of my business. This allows me to recognize capital shortages at an early stage and take appropriate countermeasures. There is also the option of taking out personal loans or bank loans. If demand remains high enough, crowdfunding is also always an option.

What about the profitability of Original Unverpackt?

As a very young industry, profitability is not something we strive for per se. At the moment, all profits flow back into the company. Although some stores have already had to close due to the crisis, we still have 300 members organized in the Unverpackt association. We still hope that politicians will intervene more. For example, we are calling for oat milk to be taxed at 7% and for companies that operate sustainably to receive more support.

Now that so many stores have had to close due to the crisis, how worried are you that you will be affected again?

I've been involved in the sustainability scene in Berlin for a long time - and it's growing. I also rely on our very loyal regular customers, who are also growing. Associations, suppliers - we all support each other. Berlin is simply the best place for a store of this kind. That's why I remain positive.

Leah Nowak spoke to Katharina Richter