BREAKING NEWS: A limited run of KitKat chocolate bars wrapped in locally manufactured recycled polypropylene is rolling out to stores nationwide, marking a milestone in Australia's efforts to establish a domestic circular supply chain for food-grade soft plastic packaging.
The initiative, led by Viva Energy in partnership with Nestlé, builds on the companies' 2022 collaboration and shows how recycled polypropylene can be manufactured and converted into food-grade flexible packaging through an Australian production network.
Soft plastic pyrolysis oil was processed at Viva Energy's Geelong Refinery before being converted into recycled polypropylene and supplied through a Victorian manufacturing chain involving Taghleef Industries, Amcor and Nestlé. The production run yielded seven million ISCC-certified KitKat wrappers, some of which are now being used on a limited run of KitKat 4 Finger bars.
This trial used plastic pyrolysis oil imported from Alterra in the USA because suitable Australian feedstock is not yet available at commercial scale in Australia. However, Viva Energy says the work validates Australia's capability to manufacture food-grade recycled polypropylene and highlights the potential for a domestic circular system for soft plastics.
Bill Patterson, executive GM Energy and Infrastructure at Viva Energy, said the trial confirmed the Geelong Refinery's potential to convert recycled feedstocks into high-quality food-grade polypropylene.
“Geelong Refinery is Australia's last remaining site with this level of refining and processing capability and its only manufacturer of polypropylene,” Patterson said.
“We have proven the use of soft plastics pyrolysis oil as a feedstock and demonstrated how existing industrial infrastructure can be adapted to support a circular plastics economy.”
The company processed more than 9.5 tonnes of plastic pyrolysis oil at the Geelong Refinery in 2025 as part of the proof-of-concept program, confirming the site's suitability for larger-scale processing of recycled soft plastic feedstocks. According to Viva Energy, the refinery and adjoining polymers plant together form Australia's only facility capable of chemically recycling waste soft plastics into food-grade plastic feedstock.
The trial also verified the use of International Sustainability and Carbon Certification (ISCC) across a local manufacturing network, providing traceability for recycled material processed in Australia. Insights from the work are expected to help inform future packaging design and the development of commercial-scale advanced recycling pathways.
Andrew Lawrey, GM Confectionery at Nestlé Oceania, said the initiative highlights the value of industry partnerships in advancing food-grade recycled packaging.
“This collaboration demonstrates what's possible when industry works together to tackle packaging challenges and accelerate the transition to a more circular economy,” Lawrey said.
“By incorporating recycled soft plastic from Viva Energy's advanced recycling trial into a limited run of KitKat packaging, we're helping test new pathways to keep valuable materials in circulation and build confidence in emerging recycling solutions.”
Both companies say broader adoption of similar manufacturing pathways will depend on supportive policy settings, including progress on Extended Producer Responsibility (EPR), domestic collection and sorting systems, and investment in advanced recycling infrastructure.
Viva Energy and Cleanaway are continuing a feasibility study into a large-scale plastics recycling project, with the Front-End Engineering and Design (FEED) phase expected to commence once details of the Australian Government's packaging reforms have been finalised.
