The company has established itself as a renowned developer and manufacturer with over 15 years of expertise in supplying bioplastics and other sustainable alternatives to conventional plastics. Operational as an integrated producer, SECOS owns raw materials (resin) and manufacturers films and end user products, as well as developing bespoke compostable solutions across an extensive range of applications.

Headquartered in Melbourne, with an R&D Innovation Centre also located in the same city, SECOS have manufacturing facilities in China and Malaysia, as well as partners in Malaysia, Mexico and the United States. The company also has a network of distributors across the Americas, Europe, Asia, the Middle East and Africa.

SECOS’ products are at the forefront of sustainable technology with sustainable resin, film and packaging products sold nationally and internationally in 20 countries under the MyEcoBag™, MyEcoWorld™, MyEcoPet™ and Cardia® brands.

The MyEco™ range of products is part of SECOS Group, the parent company of Cardia Bioplastics.

Global Victoria’s Deputy Director for Trade, George Di Scala caught up with SECOS CEO, Richard Tegoni, to talk about the company’s export journey into the Americas.

Why is the Americas such an important market for you?

The Americas is a key focus for SECOS due to its large population with the use of sustainable packaging being very low. This, combined with a curious appetite of certain state governments in the region to legislate and eliminate the use of traditional plastics, replacing them with more sustainable products makes it the top growth priority for SECOS.

There is a strong market for quality sustainable products that tend to consumer performance needs and are from brands with high eco credentials and integrity. Many consumers are sick of greenwashing and are worried that sustainable products won’t perform as well as their regular products.

In the USA, compostable packaging is regulated by the government only in selected regions however there is strong consumer demand, this has driven the demand of MyEco™’s compostable packaging to target markets and regions that lack sustainable products and compostable packaging.

When there is scarcity in a particular region, SECOS and partner Jewett Cameron Company (JCC) have found that consumers are generally highly motivated and prepared to pay a premium for sustainable products.

The role of certifications is also super important. SECOS compostable products are certified to meet stringent Australian, North American and  European standards,  for Commercial and Home composting. SECOS Compostable products comply with the Australian Bioplastics Association (ABA), DinCertco, Biodegradable Products Institute (BPI), OK Compost and other global standards. In 2023, the business was awarded the Silver Medal sustainability rating by EcoVadis, the world’s largest and most trusted provider of sustainability ratings and also gained GRS certification for its innovative 95% post-consumer recycled product.

Explain your strategy for the Americas – what steps did you take (or are you taking) to make it happen?

When exploring our expansion in the USA and Latin America, we engaged with Global Victoria’s trade and investment offices. In 2020, being the recipients of a Global Victoria Global Gateway grant, helped us to confidently take on the next challenge. The grant was utilised to stimulate brand sales in the USA and included marketing promotions, digital marketing, attendance at trade shows, networking and meetings with retailers.

More broadly, SECOS has invested in developing a global supply chain, R&D innovation centre and in other selective areas to ensure we have the right capabilities, organisational structure and people in place to be successful both locally and internationally.

Why did you decide to engage with Global Victoria’s international trade and investment offices? 

SECOS’ first contact with Global Victoria was in 2020 during the pandemic when it was actively supporting companies looking to engage internationally through global lockdowns. Over this time, we found our dealings with Global Victoria to be constructive and beneficial.

Global Victoria's Americas-based team has continuously engaged with SECOS’ teams in Australia, Mexico and US to provide support, share market knowledge and valuable intel. Having the support of Global Victoria not only in the Americas but in other regions has proven to be an invaluable endorsement for us as a Victorian company.

When exploring new markets, one of our first steps is to reach out to Global Victoria to understand how we can leverage their comprehensive network of offices across the globe.

Tell us about your company’s proudest achievements in the USA market?

One of SECOS Group’s strongest achievements was recording 140% sales growth globally on MyEco^™ in major retailers and independent distributors in FY23.

SECOS’ proudest achievement in the US market was signing an exclusive sales agreement in 2023 with JCC with an annual sales target of US$2.8 million (~ AUD$4.0 million) for exclusive distribution rights of MyEcoWorld^™️ to US and Canadian markets.

We work collaboratively with JCC to market to consumers who are increasingly seeking more environmentally friendly alternatives to conventional hydrocarbon derived plastic products. This has led to the launch of MyEcoWorld^™ branded products in major online retailers such as Amazon and Costco in November 2023.

JCC has since committed heavily to the relationship and has invested significantly in several new people, as well as a major marketing campaign and industry exhibitions.

What have been SECOS’ greatest export challenges in the USA and how have you overcome them? 

Our greatest challenge in launching MyEcoWorld^™ products into the USA market was understanding the retail path to market, which we found to be very different to Australia. For example, most retailers purchase via a distributor, whilst in Australia the major supermarkets buy directly from the manufacturer. We were able to overcome this gap by forming a partnership with a USA based business, JCC.

Another challenge we found is the lengthy distributor “onboarding” process in the USA. Having learnt this, we now build it into our planning and timelines.

Other than that, the cost of internal freight in the USA is expensive. Appointment of a good freight forwarder has been critical.

If you had 3 pieces of advice to offer new exporters to the USA, what would they be?   

1. Hire expertise in dealing with FMCG / Retail
   • A good broker or distributor for access to the USA market
   • Key internal hires are sales and marketing people with FMCG / retail expertise
2. Know your costs and profit
   • Understand retailer expectations of margins and support so you can account for your true cost base and understand your true profit. Don’t guess, it will be fatal. Deal with facts and figures.
3. Speak retailers’ language and build strong relationships
   • Know your retailers sustainability goals and tie into those in every interaction.
   • Don’t assume retailers know about sustainability, especially your buyers. They are busy people and rely on their suppliers to build their knowledge. Educate, educate and educate again.
   • Make sure you have a key account strategy and build multi-tier relationships up and across the organisation (senior leadership, supply chain, marketing etc). The work doesn’t stop once you get the first order, follow up is key.
   • Data is your friend – retailers love data and facts. Analyse it and use it to sell your story.

Any new innovations/products in the pipeline you would like to share with us? 

The establishment of SECOS’ Global R&D Centre in Mount Waverley, Victoria is enabling the business to deliver a pipeline of innovative new developments that capitalise on macro trends and fulfil customer and general marketplace needs.

Our next big launch is a range of Global Recycle Standard (GRS) certified 95% post-consumer recycled products that will be marketed by SECOS in Australia and in the USA via JCC.

Other innovative developments include:

• Clearer and stiffer films for stand-up pouches
• Lower cost compostable films
• Compostable resins and films with higher renewable content
• Compostable resins and films with higher barrier properties

Additionally, SECOS Group has been successful in a joint industry-university bid to secure $40m in funds from the Federal Government to establish the Cooperative Research Centre (CRC) aimed at Solving Plastic Waste.

From this project, SECOS aims to disrupt the status quo and drive down plastic waste by turbocharging and fast-tracking our research and development (R&D) investment.

Of the four program areas in the CRC project, SECOS will focus on two key components;

• Program One: Materials and Design – to reduce products’ environmental impact, which focuses on new materials to substitute conventional plastic
• Program Three: Implementing a circular economy for plastics in Australia. Here, we will focus more on education and life cycle analysis to support behavioural change around plastic use and therefore waste.

Learn more about SECOS

Visit the SECOS website to explore more about the company's world-leading and innovative products.