Smart Cups, a pioneering sustainability-driven technology company behind innovative ingredient printing announced the publication of a new research study in the esteemed journal Resource, Conservation & Recycling. The study, titled “Reducing life cycle material, energy and emissions for liquid consumer products through printing,” conducted by UCLA’s Institute of the Environment and Sustainability and authored by Professor Deepak Rajagopal, has brought to light the remarkable potential of Smart Cups Technology in transforming the consumer-packaged goods industry and contributing to a greener future.

“The technology that Smart Cups has pioneered has the potential to drastically reduce the environmental burden of beverages and several other liquid products through a reduction in total packaging and transportation across the product lifecycle,” said Professor Deepak Rajagopal. “The implications of this research extend beyond the consumer-packaged goods industry. Major companies, including industry giants like Pepsi, Coke, and Proctor and Gamble, could benefit from Smart Cups’ ground-breaking approach to delivering products more sustainably. Embracing this innovation can help such large corporations achieve sustainability goals and become leaders in eco-friendly practices”.

The study focuses on the profound environmental benefits of Smart Cups Technology which enables direct printing of consumer product ingredients onto surfaces, leading to substantial reductions in packaging materials, energy consumption, carbon emissions and overall environmental burdens. The study unveils the far-reaching implications for not just the beverage industry, but also the consumer-packaged goods industry as whole, promising to revolutionise distribution logistics and minimise environmental impact.

Key highlights from the study include:

• The study’s findings show that a single Class 6 or 7 beverage truck packed with Smart Cups can accommodate a staggering 21 times more beverage volume than PET bottles and 31 times than glass bottles.
• Smart Cups printed on PLA cups, when paired with tap water, result in 20 % less packaging materials than aluminum, 40 % less than plastic, and an impressive 90 % less than glass-based packaging.
• This reduction in packaging translates into a 23 % to 48 % decrease in lifecycle primary energy and a 40 % to 57 % decrease in global warming potential. With biogenic carbon credit for landfilled PLA, the reductions reach an impressive 50 % to 70 %.

Smart Cups Technology is the first of its kind, revolutionising the delivery of liquid consumer products and minimising their environmental impact. This research not only amplifies the positive impact Smart Cups Technology can have on the world but also strengthens the validation of its significant benefits by reshaping the consumer products industry. By eliminating the need for bulky packaging materials, such as PET bottles or glass containers, Smart Cups optimise beverage payload, allowing for substantially higher volumes to be transported within the same truck weight limits. This breakthrough not only enhances logistical efficiency but also reduces the carbon footprint associated with transportation, as fewer trucks are required to transport the same amount of beverage.

The implications of this research extend far beyond the immediate benefits of increased payload capacity. By revolutionizing beverage transportation, Smart Cups are poised to transform the entire industry landscape, introducing a new era of sustainability and efficiency. With the potential to streamline distribution networks and reduce reliance on fossil fuels, Smart Cups offer a visionary solution to the pressing environmental challenges faced by the beverage sector.

The UCLA study underscores the profound impact of Smart Cups on beverage transportation, highlighting the unparalleled payload capacity that this innovative packaging technology provides. As industry leaders and consumers alike seek more sustainable and efficient solutions, Smart Cups stands at the forefront of a transformative movement. The researchers at UCLA are confident that their findings will inspire further exploration and adoption of Smart Cups within the beverage industry, ultimately leading to a greener, more efficient future.

To access the full article and learn more about the study, please visit: https://www.sciencedirect.com/science/article/abs/pii/S0921344923001866?dgcid=author

Symrise very successfully continued its profitable growth course in the first half of 2020 also during the global coronavirus pandemic. The Group increased its sales by 7.6 % to € 1,821 million in an economically challenging market environment. In organic terms – i.e. excluding the portfolio effect of the ADF/IDF acquisition and exchange rate effects – sales were up by 3.4 %. All segments contributed to this positive development. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 11.9 % to € 393 million as compared to the previous year’s level normalized for acquisition and integration costs for ADF/IDF (H1 2019: € 351 million). Profitability developed particularly well: The EBITDA margin rose to 21.6 % and lies thus significantly higher than the profitability target for 2020. The net income for the reporting period increased to € 169 million. Against the backdrop of the strong business performance and profitability trend in the first half of the year, Symrise is raising its full-year EBITDA margin guidance from 20 % to a range of 21 to 22 %.

“In the second quarter the coronavirus pandemic began to significantly impact the global economy and above all many people’s everyday lives. Even in this historically exceptional situation, Symrise has done an excellent job of staying on course. Thanks to our global presence, diversified portfolio and broad customer base, our feet rest very firmly on the ground. We remained fully operational in the second quarter and were able to supply our customers in the usual reliable manner,” said Dr Heinz-Jürgen Bertram, CEO of Symrise AG. “Of course, it is hard to predict the course of the coronavirus pandemic. However, after our performance in the first half of the year, we are looking ahead to the second half with confidence. For the full fiscal year 2020 we again want to grow faster than the market and expect that we will achieve increased profitability overall. We are therefore raising our guidance for the EBITDA margin to a range of 21 to 22 %.”

With coronavirus pandemic ongoing, continued growth in all segments

The Symrise Group achieved sales growth of 7.6 % in the first half of 2020 to € 1,821 million (H1 2019: € 1,692 million). The acquisition of ADF/IDF had a positive impact of € 106 million on sales performance. In organic terms, sales increased by 3.4 %. Amid the coronavirus pandemic, changes in consumer behavior were seen for the first time in the Scent & Care and Flavor segments in the second quarter. This resulted in both positive and negative effects on demand in individual business units. With its broad range of product solutions for foods, personal care and hygiene, Symrise serves the needs of everyday life, especially in these difficult times.

The Flavor segment

Flavor achieved organic growth of 0.6 % in the period under review. Taking currency translation effects into account, segment sales in the reporting currency amounted to € 636 million (H1 2019: € 637 million). Against the backdrop of the coronavirus pandemic, the trend toward cooking and eating at home led to a strong demand for products from the Savory business unit and product solutions for baked goods and cereals. At the same time, reduced out-of-home eating and drinking led to a lower demand for beverage products and sweets.

In the EAME region, the Flavor segment suffered from significantly reduced demand for beverage products and sweets, while the Savory business unit recorded a high single-digit growth rate. Germany and the Gulf region achieved the strongest gains. Overall, sales in the EAME region remained slightly below the figure for the first half of 2019.

Organic sales in North America were roughly on par with the same period of the previous year. While Savory product solutions enjoyed great demand, beverage products and sweets sold less.

The Asia/Pacific region reported organic growth in the single-digit percentage range, driven primarily by very strong demand for products from the Savory business unit, which showed organic growth in the double-digit percentage range. The largest increases came from the national markets of Indonesia, Thailand, Vietnam and Singapore.

The Latin America region achieved the strongest growth in the segment in the first half of 2020 and was largely unaffected by the coronavirus pandemic. All business units realized high organic growth in the single or double-digit percentage range. Strong gains were posted especially in the national markets of Brazil, Uruguay and Mexico.

The EBITDA of the Flavor segment was up 2.2 % to € 147 million (H1 2019: € 144 million). The EBITDA margin improved from 22.6 % in the first half of 2019 to a very strong 23.2 %, mainly due to tight control on costs and proportionally lower raw materials costs.

The Nutrition segment

Nutrition achieved strong organic growth of 10.5 %. Accounting for portfolio and currency translation effects, sales in the reporting currency amounted to € 474 million and were 38.1 % above the previous year’s level (H1 2019: € 343 million). ADF/IDF contributed sales of € 106 million.

The Pet Food business unit proved to be the growth driver of the segment, achieving high organic growth in the double-digit percentage range in all regions. Sales developed particularly dynamically in the USA, Mexico, Brazil and Russia.

In the Food business unit, the Asia/Pacific region stood out with double-digit growth, especially in China, India and Taiwan. In the EAME region, sales matched the previous year’s level, while North and Latin America dropped slightly below the last year.

Strong impetus came from the Aqua business unit, which achieved good growth especially in the EAME and Asia/Pacific regions.

Probi reported growth in the single-digit percentage range during the reporting period, primarily driven by the North America and Asia/Pacific regions.

The Nutrition segment generated an EBITDA of € 100 million in the reporting period (H1 2019 EBITDA(N): € 67 million). The EBITDA margin in the segment increased by 1.5 percentage points to 21.0 % (EBITDA(N) margin H1 2019: 19.5 %). The improved profitability is mainly due to the good performance of Pet Food and the inclusion of ADF/IDF.

Operating result

Also within the challenging environment dominated by the coronavirus pandemic, Symrise was highly profitable in the first half of 2020. The Group recorded EBITDA of € 393 million. This represents an increase of 11.9 % over the same period a year earlier. This trend relates primarily to profitable sales growth and the inclusion of ADF/IDF. The EBITDA margin improved by 0.8 percentage points to 21.6 % (EBITDA(N) H1 2019: 20.8 %).

Net income for the period and earnings per share

Net income for the reporting period amounted to € 169 million, which was € 16 million above the normalized figure from the previous year of € 153 million. Basic earnings per share increased 10 % to € 1.25 after € 1.14 (normalized) in the first half of the previous year.

Cash flow from operating activities

The cash flow from operating activities for the first half of 2020 of € 219 million was € 78 million higher than the previous year’s level of € 141 million. The increase is mainly due to the improved operating result and the inclusion of ADF/IDF.

Financial position

Net debt increased by € 28 million to € 1,645 million compared to the reporting date of 31 December 2019. The ratio of net debt including lease liabilities to EBITDA(N) thus amounted to 2.2. Including pension obligations and lease liabilities, net debt equaled € 2,261 million, which corresponds to a ratio of net debt to EBITDA(N) of 3.0.

Symrise remains confident about the current fiscal year and raises EBITDA margin target

With its global presence, a steadily growing and diversified portfolio and broad customer base, Symrise considers itself to be robust and securely positioned even in the current challenging market environment. The Group is fully operational worldwide and is able to supply customers sustainably.

Even though the effects of the pandemic can only be estimated to a limited extent, the Group remains confident that it will again grow faster than the relevant market over the remainder of the year. The market growth is estimated to be around 3 to 4 %. Symrise considers itself to be well positioned to achieve the sales targets confirmed at the beginning of 2020.

Based on the strong business performance and profitability trend in the first half of the year, the Group is raising its original target of over 20 % for the EBITDA margin. For the 2020 fiscal year, Symrise now expects an EBITDA margin in the range of 21 to 22 %.

The mediumterm targets also remain in effect. The company aims to increase its annual sales to € 5.5 to € 6.0 billion by the end of the 2025 fiscal year. Symrise wants to achieve this with an annual organic growth of 5 to 7 % (CAGR) as well as additional targeted acquisitions. In the medium term, profitability should remain within a target corridor of 20 to 23 %.

ACE announces that the recycling rate for beverage cartons in the EU28 rose to 49 % in 2018. This is a small (1 %), but steady increase in the EU beverage carton recycling rate from the previous year.

“We are pleased to see that the beverage carton recycling rate continues to increase throughout the EU. The year-on-year increase underscores the efforts made towards recycling beverage cartons,” said Annick Carpentier, Director General of ACE.

Some Member States reach rates above 70 %, while there is still room for increased recycling participation in other Member States.

“This is not enough if the EU wants to reach a low carbon circular economy. We call for the ambitious implementation of EU waste legislation at national level to ensure all beverage cartons are collected and recycled. We believe that the recycling rate will continue to increase thanks to our industry’s commitment to support beverage cartons being recycled, including the non-fibre components,” said Ms. Carpentier

In addition, ACE has launched a four-month campaign, “We’re not just square, we’re circular,” to raise awareness and build understanding that beverage cartons are recyclable and being recycled at scale in Europe. The campaign also aims to highlight the low carbon footprint of beverage cartons due to the renewability of materials used.

“Beverage cartons provide a double circularity, at sourcing thanks to the renewability of their main components and at end-of-life through recycling. This double circularity helps ensure that beverage cartons play a role in helping achieve a low carbon circular economy,” continued Ms. Carpentier.

The campaign website can be accessed here, from ACE’s main homepage (www.ace.be) and from the secretariat’s social media channels.