The grocery chain has turned old corrugated cardboard recycling from simply a waste removal program into an operational asset, generating a revenue stream while supporting store flow and sustainability efforts.
For most grocery chain operators, cardboard is simply the by-product of stocking shelves. But a new retail operations report involving independent grocer Rouses Markets suggests retailers may be overlooking one of the largest recoverable assets in their stores.
The study examines how the Gulf Coast grocery chain has transformed old corrugated cardboard (OCC) from a routine waste stream into a more strategic part of store operations. Through a long-term partnership with FV Recycling, a nationwide recycling and waste solutions provider, Rouses benefits from responsive service and market intelligence which supports store efficiency, sustainability efforts, and operational discipline across an expanding footprint.
Rouses currently operates 76 stores across Louisiana, Mississippi, and Alabama, and employs more than 7,000 team members. The Schriever, Louisiana-based grocer continues to expand while remaining deeply rooted in Gulf Coast culture and food traditions. But behind the scenes, growth creates operational complexity, and especially when it comes to managing the constant flow of cardboard generated by supermarkets.
“In grocery, you simply can’t let bales back up behind the stores,” said Ozzie Osborne, vice president of facilities for Rouses Markets. “Space is limited, lanes are tight, and operations move fast. The pickups have to happen on time and consistently every week.”
This reliability, Osborne says, is where FV Recycling has consistently distinguished itself.
“If anything comes up – a new store opening, an off-cycle pickup, a seasonal surge – FV has always responded with, ‘We’re on it. We’ll take care of it.’ They’ve always been highly responsive.”
The Hidden Value inside Grocer Cardboard
For many retailers, OCC recycling is often viewed as a commodity hauling exercise. FV Recycling approaches it differently. The company’s bale-route model combines logistics coordination, market intelligence, store-level responsiveness, and equipment support into a system designed specifically for retailers generating steady volumes of cardboard across multiple locations.
At Rouses, it translates into a carefully coordinated operation involving dispatch teams, drivers, store receivers, and ongoing communication with high-volume locations.
Kendell Kendrick, FV’s customer relations specialist who has worked with the Rouses account for more than two decades, says the relationship succeeds because both organizations understand the importance of operational consistency.
“We monitor stores constantly,” Kendrick explained. “Every Monday we’re calling stores, checking bale counts, coordinating with dispatch and transportation. The larger-volume stores may get additional follow-up calls later in the week if they need another pickup. We prioritize them because we know how important it is to keep their operations moving.”
Osborne confirmed the level of coordination becomes especially important during seasonal grocery surges, hurricane preparation periods, store openings, and holiday volume spikes when OCC generation increases dramatically.
“Case movement changes throughout the year, so OCC changes too,” Osborne said. “Christmas looks different than the Fourth of July. Hurricanes can create huge volume spikes. FV understands our business cycles and plans around them.”
One of the biggest misconceptions in retail recycling is that cardboard has limited strategic value. In reality, OCC remains one of the largest recoverable waste streams inside supermarkets. It can materially impact waste costs, hauling economics, and sustainability performance when managed correctly.
Osborne says FV Recycling’s market transparency has been particularly valuable during volatile commodity cycles.
“They constantly watch the OCC market,” he said. “When markets are strong, everybody benefits. When markets soften, they help us understand what’s happening and why. This type of communication matters because OCC revenue impacts our P&L.”
Market visibility has helped Rouses better understand how global packaging demand, freight costs, and mill activity influence cardboard pricing. According to Osborne, FV provides ongoing updates around pricing trends, freight pressures, packaging demand, and broader commodity conditions which influence rebate values and recycling economics. More importantly, he says FV has approached the relationship as a long-term partnership rather than simply a transactional hauling contract.
“There have been times when the market was poor and they still stepped up to help offset some of the impact,” Osborne noted. “That builds trust. We don’t want them in an unhealthy contract, and they don’t want us disadvantaged either. It’s been a very mutual relationship.”
Why Operational Discipline Matters
Successful grocery or mass-merchant chain recycling programs depend heavily on execution at store level. According to both organizations, producing dense, clean bales is critical to maintaining hauling efficiency and commodity value. Contaminated bales, which are those mixed with waxed cardboard, produce boxes, or other non-OCC material, must be sorted at the processing facility, which reduces the credit a retailer receives for each bale.
Loose or poorly bound bales create a different problem. They can break apart when loaded onto the truck, creating cleanup at the dock and lost material before it ever reaches the mill. Density and cleanliness translate directly into rebate value and route economics.
“We strive to produce good, tight bales,” Osborne said. “If you give recyclers dirty bales with waxed cardboard or contamination mixed in, they have to sort through it and it loses value. Our teams understand that.”
Producing a good bale, he mentions, depends on two things working together: store associates who know how to run the baler correctly, and equipment that is properly calibrated and maintained. Rouses keeps its balers in good repair, ensuring a dense, tightly bound output which makes the rest of the program work. Kendrick agrees store-level discipline has played a major role in the success of the program.
“Rouses stores are extremely well-run,” he said. “Their people are professional, organized, and they understand operations. It makes a huge difference in maintaining good bale quality and keeping everything flowing smoothly.”
Service That Stays Invisible
Ironically, one of the strongest indicators of FV Recycling’s performance may be what Rouses doesn’t hear. “I’ve never had a complaint escalated about an FV driver,” Osborne said. “In retail operations, that really says a lot.”
This level of professionalism extends to safety and property care, which are critical concerns for busy supermarket locations with constant truck activity. Facility damage caused by commercial drivers is a routine and costly reality for chain operators. Torn-off entrance canopies, knocked-down bollards, and backed-into privacy walls behind stores generate a steady stream of repair work for facilities teams.
Osborne said repairing damage caused by third-party drivers is a meaningful line item in his department’s annual budget, which makes the absence of incidents from a high-frequency partner like FV particularly notable.
“Since I arrived in 2018, I have not had to repair one facility issue caused by an FV driver,” Osborne added. “It’s remarkable considering how much truck traffic grocery stores deal with every day.”
Kendrick says driver professionalism has long been part of FV’s operating philosophy.
“Our drivers understand they represent the company every time they enter a customer location,” he said. “We’ve always emphasized treating customers with respect and responding to their needs quickly. It’s part of who we are.”
As Rouses continues expanding across the Gulf Coast, both companies see the partnership evolving alongside it.
“We’re always looking for the right growth opportunities,” Osborne said. “And because of our density and footprint, I think that helps FV, too, from a logistics standpoint. There’s a mutual benefit there.”
For retailers evaluating their own recycling operations, the Rouses-FV relationship highlights a broader lesson: cardboard recycling is no longer just about waste removal. When managed strategically, OCC recovery can become an operational asset that improves store flow, supporting sustainability goals, reducing waste costs, and creating measurable financial return.
And increasingly, the difference comes down to the quality of the recycling partner behind the program.
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