The Frugalpac team at its Ipswich HQ celebrate the launch of the FBAM-2
Frugalpac, the British sustainable packaging innovator behind the world’s first commercially available paper bottle for wines, spirits and oils and the machines that make them, has entered into an agreement with Siemens Financial Services (SFS), part of Siemens AG, to support customer financing for its next-generation Frugal Bottle Assembly Machine (FBAM-2).
Under the agreement, Siemens Financial Services will offer qualifying customers a structured lease-purchase scheme to finance the FBAM-2, subject to standard lending criteria.
The agreement is designed to help wine, spirits and olive oil producers accelerate the adoption of lower-carbon packaging by making it easier to invest in local Frugal Bottle production.
The FBAM-2 represents the next generation of Frugalpac's paper bottle manufacturing technology.
Designed as a scalable, multi-lane platform with advanced automation, a standard three-lane configuration can produce up to 14 million Frugal Bottles annually, more than five times the capacity of its predecessor, FBAM-1.
The Frugal Bottle has a carbon footprint 84% lower than a standard glass bottle. The new bottles produced on the FBAM-2, are now made from 100% recycled paperboard with the bottle weight reduced to just 71g, making it six times lighter than a standard glass bottle.
Siemens also provided advanced automation components for the higher-efficiency FBAM-2 platform.
The new financing agreement builds on that relationship by helping customers easily access the technology needed to scale paper bottle production.
As pressure grows on brands to reduce packaging emissions, improve supply chain resilience and respond to new Extended Producer Responsibility (EPR) regulations, the ability to manufacture packaging closer to filling facilities is becoming increasingly important. Local production can reduce transport emissions, lower packaging-related costs and provide greater control over supply chains.
Malcolm Waugh, CEO of Frugalpac, said:
“Siemens is an important technology partner for Frugalpac, supplying the advanced automation components that power our new FBAM-2 platform. The fact that Siemens Financial Services, part of Siemens AG, is prepared to support customers investing in this technology is a significant endorsement of Frugalpac’s innovation capabilities and our vision to accelerate the adoption of lower-carbon packaging across the global wines, spirits and olive oil markets.
“This agreement creates an even easier pathway for customers to install Frugal Bottle Assembly Machines and produce Frugal Bottles locally. That helps reduce carbon emissions and EPR costs, strengthens supply chains and provides brands and consumers with a genuinely sustainable packaging alternative.
“The Frugal Bottle also offers a unique 360-degree branding opportunity, helping products stand out on shelf, while delivering both environmental and commercial benefits.”
Carolyn Newsham, SFS Account Manager for Siemens plc, said:
"Innovation delivers the greatest impact when businesses can access it quickly and efficiently. Through this agreement, we are helping remove a potential barrier to investment by providing financing solutions for Frugalpac's next-generation Frugal Bottle Assembly Machine.
“We look forward to supporting customers as they invest in technology that enables local production, strengthens supply chains and contributes to their wider sustainability ambitions."
The machine has been developed to help packaging companies, drinks producers and licensed manufacturing partners scale paper bottle production efficiently, while bringing manufacturing closer to bottling facilities and end markets.
By enabling bottles to be assembled locally, the FBAM-2 helps reduce packaging miles, lower transport-related emissions and strengthen supply chain resilience.
The agreement forms part of Frugalpac's wider international growth strategy as it expands its network of licensed manufacturing partners in response to growing demand for lower-carbon packaging solutions.
Since launching in 2020, the Frugal Bottle has been adopted by drinks brands across multiple international markets in 27 countries and has been stocked by leading retailers including Aldi, Sainsbury’s, Target, 7-eleven, Whole Foods and Carrefour.
Frugalpac has also exported two FBAM-1 machines to the US and Canada to meet paper bottle demand in North America.
Siemens AG is a global technology leader driving innovation in industry, infrastructure and mobility through digital transformation.