Province fines Waves Coffee over recycling rules; disputes Port Moody sales figures

Waves Coffee, a popular coffee company with locations in Port Moody, Coquitlam and Port Coquitlam, has been hit with a $30,891 administrative penalty by the Ministry of Environment and Climate Change Strategy for violating recycling regulations.

The company sold paper products: “without an approved extended producer responsibility plan,” or without any agency to carry out those duties, over an eight-month span from March 29 to Nov. 30, 2023.

Waves’ failure to comply had the effect of: “undermining the basic integrity of the BC recycling regulatory regime,” according to the ministry.

Waves produces more than one metric tonne of packing and paper products each year, the ministry stated.

Waves disputed some of the ministry’s conclusions.

Each Waves establishment in B.C. “operates independently under a franchise model,” the company stated.

“Therefore, any environmental programs or regulations applicable to B.C. would not directly pertain to our operations,” Waves stated.

The franchisor is ultimately responsible for meeting provincial recycling regulations, the ministry concluded.

“Allowing some producers to avoid their obligation creates an uneven playing field,” wrote Environmental Management Act director Stephanie Little.

Waves was aware of their responsibilities, “as early as 2020,” Little noted. The company was also warned in March 2023.

Little also rejected a statement from owner Kayvan Rahmati regarding a change in the company as well as personal tragedy.

“While my name has been associated with Waves Coffee Inc. since its inception, I officially assumed ownership and operational responsibilities only on March 6, 2022, following the sudden passing of my father,” Rahmati explained. “I understand the need to take responsibility for the use of my name, but the circumstances surrounding its usage were beyond my control.”

There was “no evidence” to support that assertion, Little responded.

“I further find that Kayvan Rahmati has been in contact with the Ministry since 2019 regarding this matter,” Little wrote.

The ministry and the company also clashed over how many cups Waves was selling.

Waves disputed the notion they were selling 500 cups per day per location, which they dubbed: “a considerable overestimation.”

However, the ministry held that Waves’ estimates of its to-go cup sales seemed extremely low.

“Port Moody was presented as selling 39 hot to go cups for all of 2023,” Little wrote.

While unwilling to accept data from Waves Coffee at face value, the ministry conceded its own figure of 500 cups per day was likely an overestimate. The ministry ultimately used 100 cups per day as an estimate, concluding the company enjoyed an economic benefit of $13,891.

Considered a major contravention, Waves Coffee was hit with a base penalty of $10,000. However, the fine was heftily increased due several factors including the company’s compliance history, the fact the contravention was repeated and deliberate.

“Waves Coffee has a history of failing to respond to the ministry, refusing to provide information, and generally being non-cooperative,” the judgment stated. The ability to comply was “firmly within their power. They have chosen not to.”

The company confirmed plans to: “develop and implement effective environmental strategies that align with both regulatory requirements and our corporate values.”

However, the company noted the challenges of following those rules.

“External factors such as landlord policies and inadequate recycling infrastructure pose significant challenges. I urge the government to address these systemic issues to facilitate broader environmental sustainability efforts across various industries,” Rahmati responded

The penalty was issued on June 19.