SIG announced another milestone in its ambition to go Way Beyond Good for society and the environment by offering ASI-certified aluminium as standard for all SIG packs in Europe.
SIG is the first in the industry to obtain certification to both the ASI (Aluminium Stewardship Initiative) Performance and Chain of Custody standards and is the only aseptic carton producer to offer ASI-certified aluminium in its packs.
The first ASI-labelled cartons were launched by customers such as B-Better® (from Unilever’s Better Future Platform), Riedel and DRINKS3 in 2019. Now, ASI-certified aluminium will come as standard for all SIG packs in Europe.
The company announces commitment to reach net zero greenhouse gas (GHG) emissions in its own operations by 2030, with the ambition to achieve net zero GHG emissions for the entire value chain by 2050
Tetra Pak reconfirms its strategic priority in driving the sustainability transformation by setting an ambition for net zero emissions across the value chain by 2050, supporting this with an intermediate 2030 target of net zero carbon emissions across its own operations. The company will also set emissions reduction targets in line with 1.5°C according to the Science Based Targets (SBT) initiative across scopes 1, 2 and 3.
Tetra Pak was founded on the idea that a package should save more than it costs, with sustainability always at the core of how the company operates as a business. Since 1999, the company has been collecting data on energy use and greenhouse gas emissions from across the organisation on an annual basis, with its GHG accounts audited by an independent third party since 2013.
Lars Holmquist (Photo: Tetra Pak)
Lars Holmquist, Executive Vice President Packaging Solutions and Commercial Operations at Tetra Pak, said: “We have consistently delivered on our climate goals, right from the first goal set in 2002, again in 2005 and we are on track to meet our 2020 goal. In 2017, we were the first company in the food and beverage industry to have our climate impact reduction targets approved by the SBT initiative. More recently, we joined the European Alliance for Green Recovery, the first pan-European call for mobilisation on post-crisis green investment solutions. Today, we’re once again leading the way by setting ambitious net zero emissions targets that will drive transformation right across our sector and the entire value chain. The planet’s greatest environmental challenge demands nothing less from us.”
Tetra Pak will focus on four key areas to reach net zero GHG emissions across its own operations by 2030, and to realise its 2050 ambition along the entire value chain:
Lowering energy-related emissions through energy conservation, improvements in energy efficiency, installing on site solar photovoltaics (solar PV) and purchasing renewable energy. Since 2011, Tetra Pak has invested over €16 million in energy efficiency, preventing energy use from increasing by 23% over this period. To date the company has installed approximately 2.7 MW of solar PV (or about 8000 panels), delivering low carbon electricity whilst saving operational costs. A member of the RE100 initiative, Tetra Pak has gone from 20% use of renewable electricity in 2014 to 69% in 2019, and it is on track to achieve its 2020 target of 80%. This journey included the installation of solar panels across its operations and the purchasing of renewable certificates, with the company being one of the first to do so in countries such as Thailand and South Africa.
Partnering with suppliers and other stakeholders along the value chain to significantly reduce carbon footprint. Tetra Pak is working with suppliers to cut upstream carbon emissions, including setting ambitious renewable energy targets and increasing the use of renewable and recycled materials, which are critical to make a low carbon circular economy possible.
Accelerating the development of its low carbon circular packaging and equipment portfolio and working to help customers achieve their emission reduction targets. A step change in investment levels in sustainable innovation is helping the company to realise its ambition of a fully recyclable package made solely from renewable or recycled materials as well as to offer processing and packaging lines with minimal carbon footprint.
Developing sustainable recycling value chains, via collaboration with customers, waste management companies, recyclers, municipalities, industry associations and equipment suppliers. Tetra Pak’s vision is that all beverage cartons can be collected for recycling, and zero beverage cartons become litter or are sent to landfill.
Lars Holmquist concluded: “Ten years ago we set a climate goal to cap our 2020 impact across the value chain at 2010 levels, while growing the business. This helped us save 12 million tonnes of GHG emissions to date. We believe that our ability to set and demonstrate progress in line with science and societal expectations, our innovation drive and the collaborative approach across the value chain put us all on the right path to achieve our new ambition.”
Elopak, a leading global supplier of carton packaging and filling equipment for liquid food, has launched the Pure-Pak® Imagine, its most environmentally friendly carton to date. The new carton is a modern version of the company’s original Pure-Pak® carton, designed with an easy open feature.
“Increasingly, we see that our Pure-Pak® carton system is the natural solution to the global need to reduce the usage of plastic bottles,” says Elopak’s Chief Marketing Officer (CMO) Patrick Verhelst.
Beverage cartons already have the lowest CO2 footprint among liquid food packaging today. Using renewable, recyclable and sustainably sourced materials, Elopak provides innovative packaging solutions that offer a natural and convenient alternative to plastic bottles and fit with a low carbon circular economy.
“With the launch of Pure-Pak® Imagine, Elopak is supporting the critical causes that represent the issues of our times – but the call to action is timeless,” Verhelst added.
Elopak’s strong focus on sustainability, alongside food safety and consumer convenience, has seen the company record a number of important environmental milestones in recent years. Carbon neutral since 2016, Elopak uses 100 per cent renewable electricity and has reduced emissions by 70 per cent over the past decade. With cartons manufactured from responsibly managed forests and FSC™ (FSC™C081801) certified material, Elopak offers customers 100 per cent renewable cartons that use wood-based renewable plastics, rather than relying on petroleum-based plastics.
“We wish to play our part in the global shift towards a low carbon circular economy and have therefore created the most environmentally friendly carton possible,” Verhelst explains.
“The Pure-Pak® Imagine carton has no plastic screw cap and is 100% forest based made with Natural Brown Board. The carton is fully renewable and carbon neutral, creating the perfect low carbon, circular economy approach,” he continues.
Many will recognize the easy-to-open feature from the 70’s and 80’s before the screw cap was first introduced. The Pure-Pak® Imagine carton’s unique top fin helps guide consumers how to open the carton. In combination with the modern functionality of the easy-pour and easy-fold features, the new carton design sets a new benchmark in reducing plastics.
The Pure-Pak® carton historically is the iconic fresh beverage pack, and with the new shape of the top fin introduced with the Pure-Pak® Imagine, Elopak adds a further important point of differentiation. Shape is the first recognition point for consumers, so this is especially important in markets less familiar with the easy opening feature. The design of the Pure-Pak® Imagine carton will create recognition on shelves across our markets and is applicable to all fresh categories.
“With Pure-Pak® Imagine we aim to help consumers make conscious environmental choices. The carton’s easy opening gives the environmentally-minded consumer a more sustainable pack, with less plastic and more natural renewable materials,” concludes Verhelst.
The KHS Group has invested €20 million in modernizing its headquarters on Juchostraße in Dortmund, Germany. In a bundle of measures underway since 2015 the company has built a huge, approximately 4,300-m2 production shop and fully renovated another. As one of the world’s leading providers of filling and packaging systems for the beverage industry KHS is thus ensuring that it stays competitive in the long term.
The last construction machines will disappear in the spring, marking the end of the extensive process optimization and other measures at the KHS production site in Dortmund. According to plant manager Dr. Joachim Konrad these were absolutely essential to strengthen KHS’ competitiveness. “As a company active worldwide we find ourselves in a competitive situation and want to carry on manufacturing in Germany. We’ve therefore further digitalized and automated our infrastructure and processes in Production.”
Here, key elements of the modernization included extending the production area and renewing the machine park. At its production site on Juchostraße KHS has erected a completely new production shop. In an area measuring 4,300 square meters the systems supplier has now created conditions that enable the relevant technology for container and pack conveyors to be merged and order processing to become more efficient. KHS has also modernized one of the oldest production buildings on the company premises. With an investment volume of six million euros for this project alone the engineering company has not only renewed the shop floor and roof; it also optimized its Sheet Metal Manufacturing Department housed in the hall, incorporating new technology that includes a faster, more efficient fiber laser, a combined punching/laser machine and a larger, fully networked sheet metal warehouse.
This yields many benefits for KHS customers in the beverage industry, among them leading brands from around the globe. “Demands are becoming more complex. Like when you configure a new car nowadays, we can customize our filling and packaging systems to suit the precise requirements of the respective customer,” states Konrad. “We cater for the huge individualism of each customer with our cleverly compiled, standardized product modules that allow systems to be designed and constructed in automated processes.” Production sequences have again been considerably simplified during the course of numerous optimization measures.
Strong signal to the regional economy
Local employees also profit from the site’s extensive modernization. KHS has now renewed the factory canteen and various office complexes, including the workstations in various company departments. With around 1,200 personnel the company in Dortmund manufactures machines for labeling, pasteurization and bottle washing, among other equipment, plus container conveyor technology for industrial beverage production.
For KHS, the modernization is a big commitment to the production facilities on Juchostraße, says Konrad. “The Dortmund plant is extremely important to the KHS Group, also because of its standing as our international company headquarters. With our investments we’re making it fit for the future. This sends out a strong signal to the regional economy.”
KHS also aims to make local commitments above and beyond this. The enterprise is helping to devise a Science 2.0 master plan that the Dortmund council adopted in November of last year. In the field of production technology KHS is engaged in an exchange of expertise together with representatives from other companies and the TU Dortmund. “We’re pleased to be doing our bit for a strong regional economy and can apply our practical experience in this area. As a large industrial employer we also benefit from well-trained specialist workers,” Konrad concludes.
2019 was the ninth consecutive year of growth for packaging machinery manufacturers from Germany. According to the Federal Statistical Office, the approximately 250 mainly medium-sized companies produced packaging machinery worth around 7.3 billion euros, an increase of 2 percent. The production of beverage packaging machines increased by 4.3 percent to 2.3 billion euros. The production of other packaging machines increased by 1.2 percent to just over 4.9 billion euros.
While the production figures for packaging machinery in the first three quarters of 2019 still showed a total increase of 8 percent, they fell in the fourth quarter by 10 percent below the previous year’s figure. The slowdown in demand in the second half of the year was already affecting the German production.
Europe remains largest sales region
Half of all German packaging machinery exports went to European countries. The delivery volume reached a value of 3 billion euros and was thus 3.1 percent above the previous year. Asia purchased machinery and equipment worth just over 1.1 billion euros (plus 16 percent) and North America worth 886 million euros (plus 8 percent). Deliveries to Africa amounted to 351 million euros (plus 1 percent). Less positive was the development of the export business to Latin America, the Near and Middle East and Australia-Oceania. Exports fell by a double-digit percentage.
USA largest single sales market
With an export volume of 786 million euros (plus 7 percent), the USA remained the largest single sales market for packaging machines made in Germany in 2019. China is in second place with 451 million euros (plus 23 percent), followed by France (309 million euros, plus 3 percent), Poland (296 million euros, plus 9.5 percent) and the United Kingdom (248 million euros, plus 18 percent). Exports to Russia increased by 5 per cent to 203 million euros. This puts the country in eighth place among the ten largest export markets, after Spain (234 million euros, up 24.5 percent) and the Netherlands (219 million euros, up 29.1 percent).
Outlook: Everything open
It is currently impossible to estimate or quantify how the packaging machinery industry will develop in 2020. Due to the weak order activity in the second half of 2019 and, in particular, the drop in foreign orders, the German Food Processing and Packaging Machinery Association already assumed in its November 2019 forecast that production of packaging machinery would decline in the current year. “The extent of the decline caused by the outbreak of the corona crisis and the consequences associated with it will only become really clear in the coming months,” says Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association. Companies are increasingly feeling the effects of the corona pandemic. In addition to disruptions in the supply chain, especially in Europe, disruptions on the demand side in particular have increased further. Not only are fewer orders coming from Europe, but also from Asia and North and Latin America. Order intake in the first quarter was down 19 percentage points year-on-year. If this trend continues, it will continue into the coming year. “However, we are optimistic that demand will recover quickly following the easing of government restrictions. The increasing global demand for hygienically packaged and safe food and pharmaceutical products is a major contributor to this,” says Clemens.
SIG announced that it will fund breakthrough research into more sustainable materials at EPFL, the Swiss Federal Institute of Technology in Lausanne, Switzerland, as part of a joint initiative with Nestlé, Logitech and other industry partners to tackle environmental challenges associated with plastic waste.
Driving research into sustainable materials
Together, the corporate partners have committed to provide 5 million Swiss francs over 10 years. The funding will support a new Chair for Sustainable Materials research within EPFL’s Institute of Materials.
The Chair, to be appointed as a tenure-track Assistant Professor, will be responsible for developing and implementing a new research programme on sustainable materials at EPFL, one of Europe’s most vibrant and cosmopolitan science and technology institutions.
Research areas of interest will address critical questions such as the overall environmental impact of materials, the exploration of bio-based, bio-degradable and recyclable materials, including high-performance paper-based barrier materials, that could help to address environmental concerns about plastic packaging.
Supporting customers with sustainable solutions
Beverage cartons are fully recyclable and have a much lower environmental footprint than many alternatives for long-life food and beverages such as milk, juice or soups. They are made mainly from renewable paperboard, but small amounts of polymers and aluminium foil are usually needed as barrier layers to contain and protect liquid food products, and for caps and closures.
SIG already offers an innovative aluminium-free aseptic packaging for dairy products, known as combibloc EcoPlus, and its SIGNATURE PACK solution uses a mass balance approach to link the polymers used in the carton to 100% renewable, forest-based feedstock. The company is now working to create an aseptic pack made out of 100% renewable materials – without mass balancing or aluminium – that can be used for a range of products, including juices that are more sensitive to light and oxygen.
Supporting research into more sustainable, high-performance barrier materials will help SIG drive progress towards this goal as it works in partnership with customers to bring food products to consumers around the world in a safe, sustainable and affordable way.
Pursuing its Buy & Build strategy, EOL Packaging Experts (EOL) has made a second add‐on acquisition by investing in BMS Maschinenfabrik GmbH (BMS) in Pfatter, Regensburg District. EOL, composed of A+F Automation + Fördertechnik GmbH (A+F) in Kirchlengern and Standard‐Knapp, Inc. (S‐K) in Portland, Connecticut, has thus gained an important partner in German‐speaking countries. This step will further strengthen the group’s positioning in Europe and boost its growth sustainably.
EOL Packaging Experts, an international group that provides end‐of‐line packaging machines and systems, has invested in BMS. This investment fits perfectly into the EOL group’s strategic planning and aim to be a market leader in end‐of‐line packaging solutions for the food and beverages industry. Together with A+F as a leading provider of integrated and innovative systems solutions for secondary and tertiary packaging, as well as S‐K as a leading manufacturer of end‐of‐line packaging machines in the US market, BMS will in future complement the group as a provider of systems for innovative sorting installations, state of the art end‐of‐line solutions, and flexible repacking solutions. Within EOL’s global sales and service structure, A+F, S‐K, and BMS will equally benefit and complement each other in the market area and the product portfolio as well as in production and machine technology, digitization, service, and project management.
SIG’s Corporate Responsibility (CR) Performance Update for 2019 explores key aspects of the company’s Way Beyond Good ambition, highlights its sustainability stories of the year, and reports progress towards its targets for 2020 and beyond.
„Our packaging has delivered food safely to billions of people all over the world. We want to help shape a sustainable food system that gets the most from what it uses and gives more than it takes,” said Rolf Stangl, CEO of SIG. “To do this, we need to go further than we’ve ever gone before. We took some more big steps forward this year and the increased uptake of our most sustainable packaging solutions shows we’re using growth as a driver for good.”
Highlights in 2019
SIG continues to build on its track record of sustainable innovation and industry firsts. Highlights this year include:
Launching the world’s first Aluminium Stewardship Initiative (ASI) labelled packs and the first aseptic carton packs with all three key materials from certified sources – paperboard, plant-based polymers and aluminium foil
Increasing uptake of SIG’s most sustainable products, such as SIGNATURE PACK and combibloc EcoPlus
Introducing the first paper straws for carton packs – first straight and then U-shaped
Accelerating the timeline to cut greenhouse gas emissions from SIG’s business – by 60 % by 2030 – with a new 1.5°C target approved by the Science Based Targets Initiative
Engaging in new recycling partnerships around the world, including the innovative so+ma programme that is rewarding consumers in Brazil for recycling
Turning food loss into over 9,200 school meals for underprivileged children in Bangladesh in the first year of the Cartons for Good programme run by the SIG Way Beyond Good Foundation
Achieving a Platinum rating from EcoVadis that puts SIG in the top 1 % of businesses for sustainability.
Going further
The CR Performance Update includes a series of stories from the year, which bring to life some of the ways that SIG is realising its ambition to go Way Beyond Good for society and the environment.
The company is focusing on driving progress in the areas where it can make the biggest difference: helping forests thrive, tackling climate change, driving sustainable product innovation, contributing to a circular economy and delivering safe nutrition.
To pursue these opportunities, SIG is building on strong foundations. It is committed to doing business ethically, buying responsibly, supporting its people and keeping them safe, and partnering with communities to help them thrive.
Transparent reporting
SIG’s CR Performance Update is transparent about progress against targets and includes an update on key performance indicators related to the company’s most material social and environmental issues. It also includes direct feedback from SIG’s external Responsibility Advisory Group, together with the company’s response.
The interim CR Performance Update complements SIG’s full CR reports, which are published every other year. It covers the same focus areas and most material social and environmental issues as SIG’s award-winning full CR Report for 2018, which includes more detail on the way we manage these issues. The 2018 CR Report was produced in accordance with the Global Reporting Initiative (GRI) Standards.
Please download SIG’s CR performance update under www.sig.biz/en/
Admir Dobraca has taken over management of Kautex Machines in USA. He succeeds Bill Farrant, who successfully managed and developed Kautex Maschinenbau’s North American site for a decade.
Dobraca has many years of experience in the plastics industry and is a proven packaging specialist. Most recently, he worked for Retal PA LLC, a supplier of packaging products and solutions to the food and beverage industry. He began his career in the plastics industry at Husky Injection Molding Systems in 2002. He held various different positions there, with placements in North America and Europe, until 2016.
With Dobraca in the lead, Kautex aims to strengthen its strong market position in the North American packaging segment and expand into new markets. To achieve this, the company will improve its product and service offerings for current and future customers.
New date 25 February to 3 March 2021
Messe Düsseldorf is postponing the leading international trade fair interpack. It will now take place from 25 February to 3 March 2021.
In doing so, Messe Düsseldorf is following the recommendation of the crisis management team of the German Federal Government to take into account the principles of the Robert Koch Institute when assessing the risk of major events. Based on this recommendation and the recent significant increase in the number of people infected with the new corona virus (SARS-CoV-2), including in Europe, Messe Düsseldorf has reassessed the situation. In addition, there is the general ruling issued by the city of Düsseldorf on 11 March 2020, in which major events with more than 1,000 participants present at the same time are generally prohibited. …
Ball Corporation announced that it has earned the Aluminium Stewardship Initiative (ASI) certification for all 23 of its Europe, Middle East and Africa (EMEA) beverage can plants. This accomplishment is a major sustainability milestone for the company and Ball is the first beverage can manufacturer to meet ASI’s environmental, social and governance principles.
The certification accompanies a commitment to significant carbon reductions by Ball, which is now covering all of its operations in the European Union, Serbia and the UK with renewable energy. Ball previously announced agreements for 100 % renewable energy covering all of its North America operations by 2021.
“We’re extremely proud to be the first aluminium beverage can manufacturer to achieve ASI certification,” said Ron Lewis, President, Ball Beverage Packaging, EMEA. “With their infinite recyclability, aluminium cans are the fastest growing beverage packaging type in Europe. As consumers seek more environmentally friendly products, they can have confidence in aluminium’s strong sustainability credentials such as responsible sourcing. The certification, combined with our renewable energy investments, demonstrates Ball’s commitment to a low-carbon, sustainable economy.”
ASI is a multi-stakeholder initiative that provides assurance of responsible production, sourcing and stewardship of aluminium throughout its value chain. As consumers demand greater sustainability across packaged goods, the Aluminium Stewardship Initiative’s scheme aims to do for aluminium what the Forestry Stewardship Council (FSC) did for paper and wood, making sustainability performance a mainstream, visible issue.
Ball has achieved both ASI’s Performance, and Chain of Custody (CoC) Standard certifications.
The ASI Performance Standard is a measure of how much effort Ball is making across its plants to assess, manage and disclose its environmental, social and governance impacts. These include issues such as life-cycle thinking, recycling, greenhouse gas emissions, water and waste management, biodiversity, business integrity and the human rights of both workers and local communities.
The ASI CoC Standard sets out requirements for the creation of a Chain of Custody for material that is produced and processed through the value chain. In Ball’s case, it links verified practices – certified under the ASI Performance Standard – from mining and remelting to casting, rolling, can manufacturing and filling.
“We’re responding to a greater desire from consumers, across Europe and around the world, for genuinely sustainable and infinitely recyclable packaging solutions,” said Kathleen Pitre, Chief Commercial and Sustainability Officer, Ball Corporation. “We’re working closely with our beverage customers to help them deliver on their sustainability commitments including on responsible sourcing practices. Ball is proud of our achievements in getting certified.”
“We are very pleased to award ASI Certification to, Ball Corporation, the world’s largest aluminium can maker and the first in its sector to have achieved this,” said Dr. Fiona Solomon, Chief Executive Officer, Aluminium Stewardship Initiative. “The ASI’s Performance Standard covers critical issues for the entire aluminium value chain. The programme is focused on responsible production, sourcing and stewardship of this important industrial metal. ASI Certification enables the aluminium industry to demonstrate responsibility and provide independent and credible assurance of performance. Supply-chain certification programs like ASI are becoming increasingly important for customers and stakeholders, who seek assurance that companies’ sustainability practices are genuine.”
With 75 % of aluminium ever produced still in use today around the world, the metal has a vital role to play in creating a truly circular economy. Ball is taking a lead on industry efforts to significantly increase the European recycling rate of aluminium beverage cans, currently at 75 %. Recycling aluminium saves 95 % of the energy required for the production of virgin aluminium, and so helps the global community to meet urgent carbon reduction targets.
Yakult launches its first aseptic food and beverage products on the Korean market, in Ecolean® Air Aseptic lightweight packages. The first two launches match health-oriented products with convenient and unique packaging, elevating the Korean consumers’ experiences.
“The Ecolean package is the perfect fit for us, since it is lightweight and flexible, yet extremely durable. We have already seen a huge interest from consumers,” says Ms. Jeonghyeon Hong, Marketing Manager, Yakult Korea.
Yakult is a well-established global food and beverage manufacturer, and the first beverage on the Korean market for ambient distribution, marks a move into the aseptic segment with new opportunities to follow. Hyfresh ready-to-drink tea launched in Ecolean® Air Aseptic 125ml package, is developed with Pyunkang medical institute and Hyfresh ready-to-drink vegetable soup, in Ecolean® Air Aseptic 200ml, is a nutritious vegetable-based creamy soup.
“This also marks Ecolean’s first launch in Korea and we are looking forward to showing consumers the benefits of our lightweight packages – being microwaveable and easy to use. Brand owners using lightweight packaging are not only reporting cost savings but also an improved environmental profile and brand image among other advantages”, says Johnny Sajland, Global Sales Director, Ecolean. “This will be a great match, with both the Yakult products’ added-value offering and with consumer’s everyday lives.”
Yakult puts one trillion packages on the market each year and has high standards when partnering with packaging suppliers
“We are developing food and beverage products responding to health concerns in typical modern lives. Marking the launch of our health-oriented ready-to-drink tea, we are addressing the need for self-care. The same can be said about our launch of Hyfresh vegetable soup, bringing an end to health concerns derived from vegetable-poor diets,” says Ms. Jeonghyeon Hong, Marketing Manager, Yakult Korea. “This is so important to us, to be able to make a difference in the consumer’s everyday life and we feel that with Ecolean that promise is strengthened.”
Mintel, the experts in what consumers want and why, has announced two trends impacting the global packaging industry in 2020:
Ahead of the Recycling Curve: Packaging manufacturers and brands must continue to develop and commercialize recyclable package innovations even if the capabilities to recycle them do not yet exist.
In-store Refill: The rapid growth of independent packaging-free stores is driving retailers across the industry to consider how to create simple, branded, and engaging refill opportunities in-store.
Looking ahead, Mintel Global Packaging Director David Luttenberger discusses the major trends influencing the packaging sector worldwide during the coming year.
Ahead of the Recycling Curve
“Despite the world’s wishes, single-use plastic will exist for decades to come. With a fraction of the world’s plastic waste actually being recycled, there is a dire need to explore technologies that are ‘technically’ recyclable now, and for the development of plastic alternatives – not just single-use plastics, but for all types of plastics and packaging. Time is of the essence; these technologies must be developed today, ahead of their ability to be recycled, rather than the other way around. But next-generation technologies are only small pieces of the greater equation that will address and solve the waste and recycling crisis. With all the will in the world, ‘reduce, reuse, recycle’ is not universal; it’s hard to recycle if consumers aren’t first reminded to ‘return’ packaging to the proper recycling bin or store take-back system. The ultimate solution is brands, manufacturers, packaging industry bodies, governments and environmental non-profits working in harmony to better inform consumers, develop more easily recyclable packaging and establish better collection systems and recycling processes.”
In-store Refill
“Regardless of the material used, the next iteration of the circular economy is clearly focused on reusability, alongside recyclability. With single-use now a toxic phrase for many consumers, refillable packaging is becoming more and more commonly known and used. While consumers want packaging reduction that comes from reuse, they expect this to be a simple and mess-free transaction. But without packaging to serve as one of the main communication channels from brands to consumers, branding can become challenging. Brands should look to offer memorable experiences through refill in order to create brand engagement, with those bringing some theatre to the refill moment most likely to succeed. And whilst many smaller refill stores use Instagrammable containers (such as attractive heritage glass jars), if refill is to become mainstream, consumers will expect refillable options that are easy to use from start to finish. By meeting this need, brands have an opportunity to ensure that their message is maintained.”
To find out Mintel’s predictions for what consumers in 2020 (and 2030!) will want and why, and what manufacturers and brands must do now to stay ahead of the competition, download the free thought piece here.
SIG has set a bold new climate target that is one of the first in its industry to be approved by the Science Based Targets Initiative (SBTi) as being in line with the latest climate science to limit global warming to 1.5°C above pre-industrial levels to prevent the worst effects of climate change. SIG is committed to cutting its Scope 1 and 2 emissions by 60 % by 2030 (from the 2016 baseline).
The ambitious new target places SIG among an elite group of companies leading efforts to reduce greenhouse gas emissions in line with the global Paris Agreement to pursue efforts to limit the temperature increase to 1.5°C.
Around 300 companies have targets approved by the SBTi. Fewer than 100 are currently approved as being in line with the 1.5°C goal. SIG is one of the first in its industry to have a 1.5°C target approved by the SBTi.
SIG’s new target compresses the timeline to achieve a 60 % absolute reduction in Scope 1 and 2 emissions by a full 10 years compared with its previous target, which was already approved by the SBTi as in line with keeping global warming well below 2°C.
A strong focus on renewable energy underpins the company’s efforts to achieve this target. SIG has already switched to 100 % renewable electricity for global production and is exploring opportunities to expand on-site renewables, such as its award-winning rooftop solar array in Thailand.
SIG is not only committed to cutting emissions from its own operations. The company also commits to reduce value chain greenhouse gas emissions by 25 % per litre packed by 2030 (from the 2016 baseline). This target includes scope 1, scope 2 & scope 3 emissions from Purchased Goods and Services, Use of Sold Products, and End of Life Treatment.
For many consumers, the desire to nurture and protect the environment has motivated the decision to follow a vegan diet. However, the ‘low carbon’ diet could potentially attract a greater following than veganism due its relatively more flexible approach to reducing the greenhouse gas emissions associated with our diets, says GlobalData, a leading data and analytics company.
In fact, when asked what they find to be an appealing food and drink claim, 60 %* of global consumers answered ‘low carbon footprint’, compared with 39 %* of global consumers who answered ‘vegan’.
Lia Neophytou, Consumer Analyst at GlobalData, says: “Whereas veganism does not permit the consumption of any animal or animal-derived products, the low carbon diet allows for the consumption of any food/drink items as long as they align with the broader goal of reducing the carbon emissions of one’s overall diet. This could include reducing meat and dairy consumption, increasing one’s intake of local foods, and reducing food and packaging waste.”
This diet also recognizes that not all vegan foods have a low carbon footprint. For example, exotic fruits which require importation from abroad. It is for this reason that Lele’s vegan café in London recently announced that it will no longer include avocado in its dishes to avoid ‘indirectly fuelling illegal deforestation and environmental degradation’.
The appeal of a low carbon diet therefore spans consumers who are already vegan and those who simply want to reduce their carbon footprint, hence its broader appeal.
Neophytou concludes: “In future, ‘low carbon’ certifications could become mainstream and serve as a way of verifying the environmental impact of food and drink. This goes beyond simply indicating the absence of animal or animal-derived products which vegan certifications signal.”
*GlobalData’s 2019 Q3 global consumer survey
9,925 visitors, 201 exhibitors and a total floorspace of 11,400 square meters (gross) – these are the figures achieved by drink technology India (Messe München), co-located with pacprocess and food pex India (Messe Düsseldorf). The growth of drink technology India remains strong. The trade fair that is taking place in a yearly rotation between Mumbai and New Delhi is now well established in the Indian Capital. The supporting program was expanded and addressed all segments and topics of the beverage, dairy and liquid food industry in conferences and seminars. Together with its partners, drink technology India underlines its status as India’s leading knowledge platform.
Dr. Reinhard Pfeiffer, Deputy Chairman of the Board of Messe München, is very pleased with how the trade fair went: “The event’s sizable growth demonstrates the fact that the trade fair has also become the most important industry event for solutions, networking and knowledge sharing at its location in New Delhi.” “This confirms our strategic decision of organizing drink technology India every year at alternating locations—Mumbai and New Delhi—to cover the Indian market,” adds Petra Westphal, Exhibition Group Director at Messe München. Bhupinder Singh, CEO of Messe München India, comments: “The 30 percent increase in exhibition floorspace is proof that companies are responding to the continued high demand in India for machinery for producing, processing and packaging beverages, dairy and liquid food products.”
Richard Clemens, Managing Director of the VDMA’s Food Processing and Packaging Machinery Association, also confirms the importance of the event: “Demand amongst Indian consumers is growing across all segments of the beverage and liquid food industry and is expected to have risen by around 89 percent by 2022 according to market researchers. Indian suppliers are therefore importing systems and machinery in order to be able to meet this demand. This represents a great opportunity for international companies wishing to gain a foothold in the Indian market.”
At drink technology India, international exhibitors accounted for 12 percent, with China being the most represented country, followed by other international exhibitors from Germany, Italy, Spain and Turkey.
Supporting program – A 360 degree view oft he industry’s topics
Avisha Desai, Group Project Director of Messe München India, is pleased with the new value added for customers: “drink technology India has been successful in setting up valuable partnerships with associations from all the industry’s segments. All the areas from the beverage, dairy and liquid food industry were covered by exhibitors as well as by the trade fair’s supporting program.”
The Packaging Design Innovation & Technology Conference was held for the first time at the trade fair. Companies operating in the consumer goods industry presented interesting solutions and thought-provoking impulses relating to packaging design, sustainability, food safety and smart packaging. The supporting program also included the Indian Dairy Association’s Conference, which showcased packaging solutions for the dairy industry, as well as the FSSAI seminar, which highlighted regulations and initiatives as part of India’s “Eat Right Movement”. The Oil Technologists’ Association of India (OTAI) hosted a seminar on oils and fats. Special focus was given to food and non-food-related uses of palm oil. The place2beer and the Buyer Seller Meetings, which were with more than 400 business talks extremely popular again, are now firm fixtures of drink technology India.
drink technology India, pacprocess and food pex India
drink technology India is staged yearly in conjunction with the pacprocess and food pex India trade fairs of Messe Düsseldorf. Exhibitors and visitors can benefit from the advantages given by this unique combination of three trade fairs as this means they can leverage synergies given by the co-location. The three trade fairs cover the entire bandwidth of the beverage, dairy and liquid food technology (drink technology India), packaging and related processes (pacprocess India) as well as food and confectionery processing and packaging (food pex India) all under one roof and is unrivaled in the region.
drink technology India alternates every year between Mumbai and New Delhi. The next drink technology India will take place in Mumbai from December 9 to 11, 2020.
The war on packaging waste is fought on many fronts in the beverage industry – from the manufacturers of packaging materials to the bottler. KHS is helping to develop new standards in this field, from which beverage producers and consumers alike are set to profit.
The way to produce ever more sustainable primary and secondary packaging involves two major lines of approach: recycle and reduce. The first requires that packaging materials are kept in constant circulation by them being reclaimed, processed and continuously reused. The second entails finding many different ways of using less and less packaging material in order to save on resources and avoid waste. “The greatest challenge for us is the processability of the packaging materials,” says Karl-Heinz Klumpe, packaging product manager for KHS in Kleve. He explains what he means in the following example. “Shrink film made of recycled plastic demonstrates very different shrinking properties versus film made of new material. As an engineering company we can’t provide all the answers ourselves but instead have to coordinate closely with the film manufacturers.”
To this end KHS is staging a number of workshops this year. These aim to find out how the percentage of recyclate in film – as stipulated by the new German Packaging Law, for example – can be increased. “You make a few changes to the chemicals or recipe of your film and we adjust the air fl ow or temperature accordingly,” is how Klumpe loosely summarizes the topics up for discussion. “Providing that there’s a standard of quality which is accepted by the big bottlers’ marketing departments, of course. With film made of 100 % recyclate the shrink results aren’t yet satisfactory. Together we still have to work out how to close the gap here between recycling requirements on the one hand and the demand for packs of ever increasing quality on the other.”
Another avenue film manufacturers are exploring is to reduce the thickness of their film. “The material’s getting thinner and thinner,” states Klumpe. “To provide the same stability the materials have to be more and more complex. This has its limitations when used for beverage packaging: below a thickness of 35 microns it’s possible that the price per kilogram for film then again rises. When it comes down to it, neither bottlers nor their customers want to pay for this.”
Spotlight on economy
Klumpe well realizes that the striving for greater sustainability is often rooted in aspects of economy rather than ecology. “Everything we do to reduce the amount of material used primarily has a financial motive and aims to cut costs for bottlers. Or – if we’re talking about recycling – film manufacturers of course have to continue to develop and adapt so that their business model can be further maintained even in the face of stricter legal requirements.”
What applies to plastics also applies to cardboard – chiefl y when it comes to reducing the amount of material used. Paper factories are experimenting with thinner cover layers and lower ridges in the manufacture of corrugated cardboard. “The stability and durability are OK,” assures Klumpe. “However, we have to answer the question of how suitable these materials are for use with machinery. What happens when the cardboard absorbs moisture? If the cardboard is thicker on the outside than the inside, it bends rather like a bimetal and can only be processed on machines with certain restrictions or not at all. What can we do to counteract this?”
In terms of recycling less attention is paid to cardboard than to plastic. Yet here, too, the reuse of this material is an issue, for example in how far print can affect the recyclability of the paper.
KHS is itself also experimenting with new packaging materials. For instance, a manufacturer from Sweden recently approached the company with a newly developed, award-winning cardboard looking for partners for a market launch. “Our top requirement is that we can be sure that we can process the cardboard without any problems,” Klumpe stresses.
Constant process
The packaging experts in Kleve are also in constant dialog with the manufacturers of adhesives and adhesive application systems. “Here, we explore how we can avoid having to heat the glue so intensely or how we can reduce our consumption of adhesive,” says Klumpe. “We’re now applying smaller and smaller dots of adhesive as opposed to the diamond shapes we used to use.” All told, sustainable product innovation is a constant process which KHS is undergoing with both proven and new partners. The focus is always on the question of which approach can be adopted to save on materials, time and energy on the machines.
One example of how energy can be saved is the shrink tunnel with porous gas burners. To heat the air KHS has decided not to use electricity as the energy transfer medium but to work directly with gas to prevent energy being lost during transport from the producer to the consumer. This saves up to 50 % in energy costs and CO2 emissions are cut by as much as 60 %.
In the last few years KHS has also set standards in many other areas with its resource-saving packaging machines. Both Fully-Enclosed FilmPacks and nested and shifted packs have done away with the need for stabilizing cardboard pads or trays. “We don’t need any more cardboard at all here,” smiles Klumpe. “The taut film gives us a good shrink pattern and a sturdy pack.” In a countermove the DisplayPacker has also been developed where large packs are placed directly onto cardboard trays without the need for an extra wrapping of stabilizing film.
However, one of the most outstanding examples of how material can be reduced is the Nature MultiPack™. In 2018 it was launched to market as a six pack of cans by the Carlsberg Group under the name of Snap Pack. A few dots of adhesive developed specifically for this pack which hold the cans together and a stabilizing carrying handle make any further packaging material redundant. Once the new pack format has been fully rolled out, by completely eliminating the use of shrink film for cans Carlsberg is set to make a plastics saving of up to 76 % – that’s more than 1,200 metric tons a year. Danone Waters first made successful use of the Nature MultiPack™ to launch its prestige PET bottle for Evian in 2016.
“In the development of sustainable packaging we see ourselves acting as an interface between all those involved and the beverage industry,” Klumpe sums up. “We’re helping to develop new standards which marry ecological demands and legal provisions with bottlers’ economic interests.” A challenge which is sometimes tantamount to the squaring of a circle.
KHS plans to build a new plant and service center in Kunshan, China. VIP guests from the local government and KHS Group attended the groundbreaking ceremony. The Kunshan plant project is a clear statement of the company’s commitment to China and its Chinese customers.
As one of the leading global manufacturers of filling and packaging systems, KHS has been serving the Chinese beverage industry since 1904. In 2008, KHS entered the China market with its first representative office in Beijing. Following the opening of its headquarters in Shanghai in 2014, KHS now intends to build a new plant and service center in Kunshan, enabling the company to respond more quickly to the local market.
Kunshan’s deputy city mayor, party secretary and head of Zhangpu attended the groundbreaking ceremony of the KHS Kunshan plant on October 17, 2019. The executive management board of KHS GmbH and CFO Mr. Martin Resch, Managing Director Mr. Thomas Karell from KHS Corpoplast GmbH as well as William Wu, KHS China CEO, were present and gave speeches during this milestone event.
Strategic partnership for a lasting win-win situation
With a total investment of around €10m, the new around 10.000 m² large factory will make engineering, production, logistics and service more efficient. KHS will be an important partner for the city of Kunshan and offer greatly enhanced support in the further development of the regional industry. Furthermore, the broad-scale plant will also help KHS expand its business within Asia as a whole. A continuous win-win situation can be expected for both sides involved.
“Kunshan is an attractive city for the beverage industry with skilled workers, well-developed infrastructure and widespread logistics networks for this kind of project,” said Mr. Martin Resch with great thanks to the deputy city mayor of Kunshan, Li Hui. “We are now able to produce a larger product portfolio including single blow molders, fillers, and labelers as well as in various block versions, increasing the expertise in handling entire line projects,” claimed Mr. Resch. “With our product range, KHS maintains its position as one of the global market leaders and a pioneer of filling and packaging technology. This also says a great deal about the innovative strength of the team in China.”
Innovative German technology, efficient local manufacturing
Mr. Thomas Karell with the representative of the management board of KHS China expressed great delight at launching the new factory at the ceremony: “All of the KHS Group’s knowledge and capabilities will be on show at our new location in Kunshan. Thanks to the use of innovative technologies, the production system being established will set new standards for productivity and sustainability.”
“Our goal is to improve the production efficiency of our customers throughout the entire life cycle of their engineering, providing state-of-the-art technology and services,” stated Mr. Karell. “The new plant in Kunshan establishes an important local basis to meet this goal, focused on our Chinese customers.”
Sustainable economic benefits, greater social influence
Based on more than 150 years of experience and a constant focus on core expertise, KHS is able to help customers achieve long-term social and ecological responsibility goals. Willian Wu is full of expectations for the future of the Kunshan plant and KHS China: “We will combine economic success with socially and ecologically responsible behavior. Along with top technical performance, maximum sustainability is particularly close to our hearts.” He also indicated that KHS China is respected not only for its highly efficient products and systems, but also for its round-the-clock, local and on-site service which extends far beyond the commissioning of systems.
“KHS China now assumes technological and environmental leadership with solid and innovative German technology for optimum products and solutions,” emphasized Mr. William Wu. Looking to the future, KHS China will constantly strive to realize superior quality and ensure sustainable development in the Chinese market.
SIG is once again leading the industry on sustainable innovation by being the first to offer beverage cartons made with recycled polymers produced from post-consumer plastic waste.
SIG customers will be able to respond to consumer demand for packaging made with recycled plastics by choosing SIG cartons made with certified circular polymers. This innovation reinforces SIG’s contribution to the circular economy by making use of low quality, mixed plastic waste that would otherwise be incinerated or sent to landfill. The mixed plastic waste that is collected is treated in a process that enhances the material and transforms it into a high-quality food grade material.
Made primarily from renewable, FSCTM-certified paper board, SIG’s beverage cartons already support the circular economy by promoting the regeneration of vital natural resources in responsibly-managed forests.
Pioneering partnership
SIG is among a select group of companies – and the first in the beverage carton industry – to partner in the foundation stage of development of recycled polymers from post-consumer waste by its supplier, SABIC. This pioneering partnership highlights SIG’s commitment to a more sustainable future through new solutions that support a circular economy.
The recycled polymers offer the same high quality and have the same properties as polymers made entirely from virgin raw materials. Any contaminants are eliminated during processing, making the recycled content completely safe for food packaging.
Certified circular polymers
The recycled polymers offered by SIG will be certified to the ISCC PLUS standard to enable customers to trace recycled content throughout the value chain from post-consumer waste streams to processing and use in the production of new cartons.
SIG’s commitment to sourcing certified sustainable materials is part of its ambition to go Way Beyond Good by putting more into the environment and society than it takes out.
Creating flexible packaging from virgin grade material derived from plastic waste is now taking a step towards reality in a pilot project called ChemCyclingTM
Leading global packaging and paper group Mondi, in cooperation with chemical producer BASF and COROOS, one of the biggest European companies in the preservation of fruits, vegetables and pulses for premium A-brands and private label products, have cooperated on a state-of-the-art pilot project. Together they produced a stand-up pouch that is safe for food contact partly made with raw material which was derived from chemically recycled plastic. Until now, recycling plastic has chiefly been mechanical, limiting the scope of plastics that can be recycled and limiting the number of products that can be created with recycled material, in particular for the strict legal European regulations in place for food packaging.
Mondi believes that packaging should be sustainable by design, using paper where possible, and plastic when useful. For food protection and extending shelf life, plastic is often the best choice because of its barrier properties. These requirements make it difficult to use mechanically recycled plastic due to potential impurities and plastic flaws that can occur in the layers, limiting the applicability for food contact. “BASF is working on advancing the chemical recycling of plastic waste, because this will make it possible to process and reuse plastics that are currently difficult to recycle such as mixed plastics. This prototype packaging which is based on pyrolysis oil derived from waste plastic shows that the life cycle of consumer plastics, including multilayer packaging, could become a closed loop,” explained Christoph Gahn, who is responsible for the polyamide business at BASF.
As a leader in the flexible packaging market, Mondi partnered with BASF to produce this virgin grade material into a multi-layer laminate for food packaging for COROOS private label products and their own A-brand Servero. In the manufacturing, 100 % of the fossil feedstock was replaced by pyrolysis oil derived from mixed recycled material for one of the inner layers (oriented polyamide, OPA-12 mm). In total 12 % of the packaging weight is made of ChemCycled material. The recycled material was allocated via a certified mass balance approach. Graeme Smith – Sustainability Manager for Mondi Consumer Packaging – explained more about the pilot project: “It is important to show proof of concept when establishing breakthrough developments, and for chemical recycling it is an essential part of the roadmap to commercialising this process in the future.”
Sustainable solutions are not just a priority for Mondi, but across the entire value chain: “COROOS is partnering in this project because we care about sustainability and are looking into different options to improve our footprint, e.g. by using packaging from recycled materials, packaging materials being recyclable and/or by being re-usable” shared Elke Schroevers, the Marketing Manager of COROOS. With this development, the way is paved for plastic waste to become a new resource for flexible packaging while replacing fossil fuels.
“The Trade show Duo”- ANUTEC – International FoodTec India & PackEx India once again underscores its position as the leading event for the suppliers of the food & drink and packaging industry in the SAARC region. The exhibition ended on a high note for all 470 exhibitors witnessing over 10,000 one-time registered trade visitors during its three-day trade fair. The exhibitors were satisfied with the quality and quantity of the visitors who attended the trade fair. Key visitors from different industry sectors were present during all three days. The exhibition once again confirmed its position as the best business platform that provides customized solutions for the Indian and neighbouring markets. The exhibition was actively supported and promoted by IPMMI (Institute of Packaging Machinery Manufacturers of India) and IFCA (Indian Flexible Packaging & Folding Carton Manufacturers Association) both being the leading industry association leaders for Packaging Industry.
Both ANUTEC – International FoodTec India & PackEx India acted as a great platform for the buyers and sellers of technology in food, drinks, dairy, confectionery, bakery, snacks and pharmaceuticals along with others to facilitate more business for the future. “We have achieved a new level with this result. Our success will be measured by the opportunities; the business and the value addition that we as an exhibition organiser are able to give to our exhibitors. All the exhibitors are really happy with us and this in turn makes us happy. Our exhibitor’s success is rightly our success”, said Ashwani Pande, Managing Director, Koelnmesse YA Tradefair India Pvt. Ltd.
The exhibition inauguration was held in the gracious presence of Mr. Hemant Malik, Chief Executive Officer- Food Division, ITC Limited, Mr. Ganesh K. Sundararaman, SBU Chief Executive, ITC Limited, Mr. Sanjeev Gupta, Director, Kanchan Metals, Mr. Manoj Paul, Country Head, Heat & Control (South Asia) Pvt. Ltd., Mr. Samir Limaye, President, IPMMI, Mr. Ashwani Pande, Managing Director, Koelnmesse YA Tradefair Pvt. Ltd. along with other dignitaries. In their inaugural speech, Mr. Hemant Malik congratulated Team Koelnmesse for creating a one-stop location for the Indian food and beverage industry in the form of ANUTEC – International FoodTec India & PackEx India. Mr. Ganesh K. Sundararaman, stressed the fact that India is a large consumption country where food processing is one of the most important sectors. To cater to the demand of this sector, ANUTEC – International FoodTec India & PackEx India is the only ideal place in India that showcases the latest for the food & drink technology thereby building partnerships and business. Key visitors from ITC, Haldiram’s, HUL, Cremica, Dabur, Pepsico, Nestle, Prataap Snacks, Balaji wafers, Vadilal, Hatsun Agro, Sun Pharmaceuticals, Abbott, Cipla and many others were present during all three business days. The feedback received from the key visitors from different sectors benchmarking ANUTEC – International FoodTec India & PackEx India as a truly international exhibition organised world over. The visitors have also expressed their satisfaction over the wide spectrum of technological solutions being showcased at the exhibition for their needs. The exhibitors underlined the increased quality of the trade visitors to the exhibition over other trade shows and showed keen interest to book stands for the next edition with bigger area.
Koelnmesse YA Tradefair Pvt Ltd will be hosting the 15th edition of the largest technology event catering to the food, drink and packaging industries: ANUTEC – International FoodTec India – International supplier fair for the food & drink industry and PackEx India – International exhibition on Packaging material and Technology along with ANUTEC Ingredients India and Food Logistics India from 23.09. to 25.09.2020 at Hall No. 1, 2, 3 & 4, Bombay Exhibition Centre, Mumbai.
Ecolean, a global producer of lightweight packaging solutions for liquid food, publishes its second Sustainability Report. The report focuses on Ecolean’s ambition and actions to provide the world with safe and convenient liquid food packaging solutions – with minimal environmental impact.
The world’s demand for innovative packaging solutions are increasing as a result of a growing population, changing consumer demands and a global climate challenge. Ecolean enables optimal packaging solutions by continuously enhancing its product portfolio and through an ambitious strategy for global growth.
During 2018, Ecolean completed the introduction of Environmental Product Declarations (EPDs) for all of its packages. By doing so, Ecolean became the first packaging system supplier in the world to offer this type of verified environmental documents of its entire system. Furthermore, Ecolean took a step closer to its objective to use 100 percent renewable electricity at its production sites by 2030.
“By switching to renewable electricity, we can reduce the climate impact of our production”, says Anna Palminger, Manager Sustainability at Ecolean. ”I’m proud of our results. In 2018, 84 % of the electricity used at Ecolean’s production plants was renewable and 82 % of the total energy used in production originated from renewable sources. We also shifted from natural gas to renewable biogas at our plant in Sweden – meaning that all energy used at that site is now 100 % renewable.”
“Moving forward means further enhancing the life cycle perspective – and will require joint efforts and collaborations with both our industry partners and our customers,” says Peter L Nilsson, CEO at Ecolean. “We think it is important to take steps that drive the entire industry forward in a more sustainable direction, such as introducing EPDs for all our packages. The way ahead is to intensify our collaboration with others such as through CEFLEX (a circular economy for flexible packaging) and local recycling initiatives. This is a significant step forward for Ecolean that reinforces our position as a leading sustainable packaging supplier”.
Frost & Sullivan’s latest analysis, Global Food and Beverage (F&B) Packaging Market, Forecast to 2030, reveals that the need to reduce material usage and develop more sustainable, durable and lighter-weight packaging solutions with lower production costs are key drivers supporting steady market development. Utilizing innovative packaging materials, advancing processing and additives through technological improvements and an uptick in eCommerce distribution will further augment market expansion. While revenue is expected to increase modestly, recording a compound annual growth rate (CAGR) of 1.2 % from 2018 to 2030, unit shipment by weight is set to decrease in the short term due to a sustained drive for lighter-weight packaging.
“With rising concerns around plastic pollution and stringent government regulations, manufacturers are seeking alternatives to plastic packaging. This is resulting in an uptick in use of paper and aluminum-based packaging or other non-plastic materials such as biodegradable foods or resin,” said Christopher Shanahan, Global Director, Chemicals, Materials and Nutrition, Frost & Sullivan. “Paper and aluminum are both recycled at high rates and are seen as viable alternatives to plastic with biodegradable plastic films becoming more common as new degradable resin is adopted.”
To differentiate themselves in a well-established, highly consolidated, and competitive market, packaging material suppliers are focusing on specific products such as flexible materials, rigid plastics, and coatings for sachets and pouches. Minimizing packaging costs is a priority so there is strong competition among manufacturers to provide the most cost-effective solutions to customers, including eco-friendly, lightweight products.
“Although manufacturers have already reduced the thickness of bottles and other packaging, they are now looking toward further down gauging and design improvements to make packaging more cost-effective,” observed Shanahan. “For instance, designs such as droplet-shaped bottles have been shown to increase volumes without expanding the package weight.”
F&B vendors can make the most of key opportunities in the market by:
Exploring environment-friendly sources of plastics, such a plastic derived from corn, or natural products such as banana leaves.
Creating novel packaging solutions with advanced materials.
Utilizing the same type of packaging material across several applications to reduce production and processing costs.
Exploring emerging markets such as APAC, the Middle East, and Africa.
Reducing material and transportation costs by decreasing the thickness of packaging materials.
Frost & Sullivan’s recent analysis, Global Food and Beverage Packaging Market, Forecast to 2030, explores the factors and trends that have shaped the food and beverage packing landscape, the challenges that lie ahead, and the opportunities that can be tapped. The market is analyzed in terms of different packaging material segments, including flexible materials, rigid plastics, glass, metal, and other packaging materials used for containers and closures.
Delivery Hero SE and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH are partnering with BIO-LUTIONS International AG by investing in the international expansion of the company.
BIO-LUTIONS International AG, the Hamburg-based manufacturer of ecological packaging and disposable tableware made from agricultural residues, announced that they have secured €8.3M with Delivery Hero SE and the KfW subsidiary DEG among the key investors.
Following the successful establishment of a production plant in India, BIO-LUTIONS has seen a surge in demand for its sustainable products, including the interest of large global retailers. The green tech start-up plans to use the new funds to kick-start its global expansion, first by increasing production in India and second by building new production facilities in Europe and Asia.
BIO-LUTIONS was founded in 2017 by Eduardo Gordillo and Stefan W. Dircks and has co-developed a patented technology that makes it possible to produce packaging and disposable tableware from a variety of agricultural residues without the need for additional binding agents or chemicals. The use of agricultural residues – which are globally available and until now have mostly been disposed of for a fee as waste products – significantly reduces raw material costs. This, for the first time, enables a sustainable product to compete with disposable plastic products in terms of price.
In addition to this, BIO-LUTIONS acts according to a model of positive social and ecological impact in India, by sourcing its raw materials such as sugar cane leaves and banana stems from local smallholders. This offers farmers an additional source of income and thus helps to reduce poverty among the rural population. The use of agricultural residues also reduces air pollution by providing an alternative to the incineration of crop residues.
BIO-LUTIONS Founder and CEO Eduardo Gordillo stated: „A partnership with two internationally operating firms such as Delivery Hero and the DEG, makes it possible for a young company like BIO-LUTIONS to realise their expansion strategy. This important step enables BIO-LUTIONS to sustainably build our team, our production sites and our customer portfolio. It is an honour and a privilege to work with these renowned companies moving forward.”
Christiane Laibach, spokeswoman for DEG’s management commented: “We are delighted to continue to support BIO-LUTIONS, a young, innovative company on its way. Our investment today follows our initial investment into the company in form of our Up-scaling programme. We see great promise in the production of alternatives to plastic packaging made from plant residues”.
Emmanuel Thomassin, Chief Financial Officer at Delivery Hero added: “Participating in the financing of BIO-LUTIONS helps us to further implement our long-term strategy – with BIO-LUTIONS we have a new and important addition to our portfolio which has high social and ecological value.”
SIG set for growth with new state-of-the-art production plant in China
As the Asia-Pacific region continues to be one of the major growth engines for aseptic carton packaging, SIG has announced investment in the region with the construction of a second production plant in Suzhou, China.
To meet current and future customer demand, the new 120,000 square meter plant is expected to be operational in early 2021 and will be situated at the Suzhou Industrial Park (SIP), close to the company’s existing production facility and Tech Centre. With a total investment of EUR 180 million, the new plant will ensure exceptional delivery on outstanding opportunities in the Asia-Pacific region, where most countries continue to grow significantly. The plant is expected to achieve world-class environmental, safety and operational performance right from the start.
The new production facility is testament to SIG’s strong partnership with SIP and the local government, as well as its unparalleled commitment to deliver world-class packaging, service and the most modern solutions to the rapidly growing Asian markets and to China in particular. SIG’s recently opened cutting-edge Tech Centre in Suzhou supports customer collaboration in the development and implementation of innovative product concepts and market-ready packaging solutions.
Across Asia, millions of people are only now starting to consume packaged food and beverages. The rise of new consumers, driven by increasing income, changing lifestyles and new consumption habits, represents a huge opportunity for aseptic carton packaging with its long shelf life without the need of a cooling chain.
At the same time, young and growing populations are adopting modern lifestyles in urban areas, with more on-the-go consumption, an increasing awareness of health and wellness, and a growing demand for high-quality nutritional food and beverage products.
The difficult economic conditions and uncertainties such as the unresolved trade conflict between China and the USA increasingly affected Krones’ business in the first half of 2019. After strong growth in the first quarter (by 10.3 %), revenue from April to June increased by 0.7 % year-on-year. In total, the company’s revenue from January to June 2019 improved by 5.5 %, from €1,790.8 million in the previous year to €1,889.3 million. Adjusted for acquisitions and currency effects, growth was 1.8 %.
The slowdown in the economy and the uncertain economic outlook are also affecting investment confidence among Krones’ customers. The company experienced weak demand in parts of its portfolio between April and June 2019. However, Krones was largely able to compensate for this due to its broad product range. Order intake from January to June 2019 increased by 1.2 %, from € 2,014.8 million to € 2,038.6 million. Adjusted for acquisition effects, the contract value of orders increased by 0.4 % in the first six months of 2019.
High costs and unfavourable product mix impact profitability
Earnings before taxes (EBT) decreased year-on-year in the first half of 2019, from € 112.7 million to € 47.9 million. The EBT margin dropped from 6.3 % to 2.5 %. Krones’ profitability was impacted by high material and labour costs. The product mix also had an adverse effect on earnings. In the second quarter of 2019 in particular, revenue was lower than expected on products with a large proportion of own value added, such as machines and lines in plastics technology. That led to capacity underutilisation in this area. Another major reason for the lower earnings is that revenue in parts of the high-margin after-sales business was above 2018 but below budget in the first half of 2019. Krones generated consolidated net income of € 33.3 million from January to June 2019 (previous year: € 76.9 million). This corresponds to earnings per share of € 1.06 (previous year: € 2.45).
Krones has improved the ratio of average working capital to sales over the past four quarters. The ratio decreased from 28.8 % in the previous year to 26.0 %. Free cash flow went down to – € 259.4 million (previous year: – € 56.2 million). Krones having a negative free cash flow in the first half year is a seasonal effect and is nothing out of the ordinary for the company’s business.
Krones expects better earnings in second half year
The Executive Board has taken further action to offset the negative impacts on earnings. This includes among others a recruitment freeze and measures to reduce material costs. We are progressing well with the expansion of our global footprint. The new plant in Hungary, for example, is fully on schedule and on budget. Krones will start producing there in the course of this year and will generate positive earnings contributions from the Hungarian plant from 2020 as planned.
Krones expects, in line with previous year, that especially in Q4 the production capacity utilisation will increase as well as the high-margin life-cycle services (LCS) business. Therefore Krones expects better earnings in the second half of 2019 than in the first six months.
In total, the company expects growth of 3 % in 2019. The EBT margin is expected to be around 3 %. For its third performance target, working capital to revenue, Krones expects a figure of 26 %.
Krones working on structural measures and adheres to mid-term targets
The strategic measures launched to date, such as the price rises and expansion of our global footprint so far, are not enough for the earnings targets to be attained on a long term basis. The Executive Board is therefore currently working on further structural changes for a sustained increase in profitability. These changes focus on reducing complexity, rapid response to market needs and shaping an even more customer-centric business organisation.
Krones is maintaining its mid-term targets. Depending on the overall economic situation and developments in the company’s markets, the Executive Board expects average annual revenue growth of 3 % to 5 % excluding acquisition effects, an EBT margin of 6 % to 8 % and working capital at 22 % to 24 % of revenue.
Krones has published the complete Interim Report for the first half of 2019 online at www.krones.com
Based on the actual available figures Krones, the world’s leading manufacturer of filling and packaging technology, adjusts its earnings outlook for the fiscal year 2019. The uncertain macroeconomic developments, like the unsolved trade conflict between China and USA, as well as the discussion about the sustainability of PET-Packaging, negatively influence the customers of Krones and their willingness to invest. Nevertheless, the revenue growth of Krones in the first six month of 2019 were still satisfactory. However, the earnings before tax (EBT) for this period will be significantly below the expectations of Krones.
Increased costs and unfavorable product mix burden the profitability
The profitability of Krones is influenced by high costs, in particular the material cost ratio remains on high level. Krones expected, that the weaker economic outlook in other important industries in 2019 would have resulted in a small easing in the increasing of material costs. Also, the additional measures, which are implemented by Krones to reduce the material costs materialize with a delay. Furthermore, the product mix has an unfavorable effect on the earnings for the period January till June 2019. Especially in the second quarter 2019 the sales of products with a high own value added, like machines and lines for the plastic technology, were lower than expected. In the plastic technology Krones offers extensive products and services for the packaging and filling of beverages in plastic containers like PET-bottles. However, the current discussion about the PET-packaging solution will open opportunities for Krones for innovative solutions.
Another important reason for the actual earnings development is the sales growth of the high-margin after sales business (LCS), which were in the first 6 month of 2019 below expectations. This results from the demand of the customer of Krones for some parts of the LCS product and service offering, which were negatively influenced by the macroeconomic uncertainties. In the second half year this LCS business is expected to recover.
Outlook
Krones still expects an unchanged growth target of 3 % in 2019. The EBT margin is planned around 3 % (prior target: around 6 %). For its third target, working capital to revenue, Krones expects an unchanged figure of 26 %.
The board has taken measures in order to counteract the earnings decline. This includes among others a hiring freeze and measures to reduce the material costs. The current global footprint is on track. For example, the new plant in Hungary is according to budget and time schedule. During the second quarter of 2019, Krones will increase its production in Hungary with a positive margin contribution in 2020.
By its global footprint Krones will not only use competitive cost advantages, but also take advantage of regional market opportunities. The closer Krones is to its customers, the better the company can understood customer needs and local requirements.
The strategic measures that Krones has introduced so far, like the price increase and the development of the global footprint are however not sufficient to reach the ambitious targets. Hence, the board is working in additional structural changes in order to strengthen its earning level in the long run. Focus areas are reduction of complexity, an agile reaction to market needs as well as a corporate structure, which serves the customer even better.
Krones keeps its mid term targets. Depending on the macro economic environment and development of Krones markets, the board envisages a year-on-year revenue growth of 3 to 5 % without acquisition effects, an EBT margin of 6 to 8 % and a working capital to revenue ratio of 22 to 24 %.
Krones will publish the interim report as of June 30th of 2019 by 25th of July 2019.
How REVO is helping Stratus Packaging to optimize its label production
Stratus Packaging Group is one of the European leaders in the manufacture of printed labels, sleeves and in-mould labels. With 300 employees working in five production plants in France and a sales office in Switzerland, the company prides itself on its quality of service and the relationships it establishes with its customers. As such, Stratus Packaging is always on the lookout for true innovation that will provide its customers with a competitive edge. When it saw the solutions offered by BOBST and its REVO partners, Stratus Packaging knew it had found a source of innovation.
The DigiFlexo innovation, first brought to the market by BOBST at drupa 2016, has revolutionized the digitalization of packaging production by providing consistent color matching and control, process repeatability and consistency, with very quick job changes and minimum waste.
Progress in productivity
“Before, it was taking a lot of time to change the plates and clean the ink tanks between each job printed with different pantones,” explains Julien Chauveau, R&D Manager at Stratus Packaging. “It was costing us, and therefore our customers, time and money that we were keen to save.”
The solution came in the shape of a BOBST M5 UV flexo machine, which with the help of REVO innovation, transforms flexo printing and die-cutting into a digital process. Through a digital work flow, with integrated printing and converting technologies, the machine only generates 20 meters of waste and requires only one minute for each job change, providing the highest quality consistency at the lowest operating costs. The machine is equipped with Excellence™ for automated exchange of flexo print cylinders.
“We already had an advanced workflow, which made the DigiFlexo solution a natural fit,” says Julien Chauveau, “But now we have taken it to the next level. With only around 15 meters to automatically register up to eight colors between two jobs printed with REVO technology, we now have control and consistency at our fingertips at a very high production speed,” he says.
REVO and the color consistency revolution
REVO stands for Digital Flexo REVOlution. BOBST established the REVO partnership, consisting of Apex International, AVT, BOBST, DuPont, ESKO, Flint Group, Saica Flex, Stora Enso, UPM Raflatac and X-Rite Pantone, to optimize the digitalization of the complete production process.
One of its biggest successes has been around color consistency, which has been one of the main concerns of brand owners. Some substrates are more absorbent, which can affect how the color of the substrate itself interacts with the ink and affects the color. What’s more, different printing processes all using different types of inks and colorants.
The REVO 7-color Extended Color Gamut (ECG) is now a well-established turn-key DigiFlexo process that flows from pre-press through to production output. ECG printing uses three additional ink colors – orange, green and violet (OGV) – on top of the conventional colors of cyan, magenta, yellow, and black (CMYK), enabling a match with 90%+ of the Pantone book, compared with approximately 60% previously. This means there is no need to keep huge inventories of spot colors, but these can be added if required.
The benefits for Stratus Packaging are significant.
“The machine allows us to print in multichromy in UV flexo,” says Julien Chauveau. “This leads to reductions in ink costs. In addition, eliminating color matching reduces set-up times significantly. Overall with the REVO technology, we are able to optimize our production, with less change time for colors, less cleaning operation needed and fewer flexo plate changes. Consequently, we are able to optimize the cost to produce labels for our customers. By adjusting our printing processes, we have been able to open up new avenues for our company.”
In a nutshell, the REVO DigiFlexo has transformed the way Status Packaging is managing its labels production. The technology benefits are significant, and they answer the brand owners’ requirements well. The changing demographics and customer behaviors are here to stay and adjusting its production capabilities is a must to remain competitive. “BOBST offers leading innovations and we are glad to have deployed them,” summarized Julien Chauveau.
The production of food processing and packaging machinery rose by 8 percent in 2018. This was not only a record figure, but also the highest growth rate in the current decade.
The past year was very successful for the manufacturers of food processing and packaging machinery: production rose by 8 percent to just under 15.2 billion euros.
“Many manufacturers started 2018 with a very high order backlog, which was gradually converted into sales in the first half of the year. This, too, explains the very high growth rate of 8 percent for the year as a whole,” says Richard Clemens, Managing Director of the VDMA Food Processing and Packaging Machinery Association.
The Packaging Machinery Industry grew by a total of 8 percent to 7.1 billion euros. The “Other Packaging Machinery” segment increased by almost 12 percent to 4.9 billion euros, while the Beverage Packaging Machinery segment increased by 1 percent and reached 2.2 billion euros, only slightly above the previous year’s level.
Where Food Processing Machinery is concerned, the degrees of the growth rates in the individual sub-areas do vary somewhat – but all are positive: The production of meat processing machinery grew by 7.6 percent to 1.2 billion euros. The production of bakery machinery increased by 9 percent to 667 million Euro. The confectionery machinery manufacturers recorded growth of 16 percent reaching 360 million euros and the production of beverage production machines grew by 7 percent to 552 million euros.
Exports and investment climate remain strong in Germany
In 2018, exports of Food Processing and Packaging Machinery rose by 6.1 percent to over 9 billion euros. Deliveries to the industry’s most important sales region, the EU-28, rose by 9 percent. Demand from the USA – the most important foreign market – remained high. Exports to China and Russia showed double-digit growth rates. Clear impulses came from many other markets, including Brazil, Japan, the Republic of Korea and India.
Domestic business, too, continued to be an important pillar of the positive business development in 2018. In some food sectors, substantial investments were made in order to expand capacity and to expedite modernisation projects. Also, the shortage of personnel in the processing plants led to further investments in machinery and equipment.
The outlook for 2019 is subject to uncertainties
Generally, the prospects for the Food Processing Machinery and Packaging Machinery sector seem good, as the industry continues to benefit from the rising global demand for processed and packaged food and beverages as well as pharmaceutical products. However, against the background of the exceptionally strong growth last year, only moderate growth of at most 2 percent is likely to happen in 2019.
“Although sales in the first four months of 2019 were higher than in the same period of the previous year, the sales growth is expected to be only moderate at 2 percent. However, incoming orders in the first four months clearly fell short of the previous year’s level. Uncertainties due to ongoing trade disputes, but also many regional political crises, are causing investors to hold back with new orders,” Clemens comments on the business outlook for 2019.
“Tomorrow begins when you create it” is the slogan of FachPack, the European trade fair for packaging, processes and technology. And that slogan will sum the situation up perfectly when more than 1,500 exhibitors gather in Nuremberg from 24 to 26 September 2019 to display their innovative packaging solutions for consumer and industrial goods. The range of products and services on show in the twelve exhibition halls will answer questions on packaging for about 45,000 expected trade visitors. One topic in particular is driving the industry like no other at the moment, and has therefore been chosen as the key theme for FachPack 2019: “Environmentally friendly packaging”. This theme will be reflected at the stands of many exhibitors, and in the lecture forums, special shows and award ceremonies.
Consumers today want environmentally friendly packaging, whether for foodstuffs, beverages, cosmetics or any other products in daily use, and Germany’s new Packaging Act and the EU Plastics Strategy now place even more stringent demands on manufacturers and the retail sector in this regard. The challenges this creates for packaging are often complex. “The packaging of the future has to serve both consumers and the environment and must take the entire cycle into account,” says Cornelia Fehlner, exhibition director for FachPack, NürnbergMesse. “The packaging industry already has a wide range of solutions for these challenges, and FachPack is the ideal platform for both presenting and talking about them. We are proud to be the showcase for this innovative sector.”
Visitors appreciate FachPack because of its professional depth, its broad range of themes, and the innovative stimuli it offers. The previous trade fair in 2018 drew 44,019 trade visitors to Nuremberg to participate in the gathering of European packaging industry representatives under one roof. According to the results of a survey by an independent market research institute, visitors sought mainly to learn about new developments (44 percent); gain an overview of the market (30 percent); share experiences (29 percent); and cultivate business contacts (28 percent). One in two visitors said they held a leading position in their company. A total of 98 percent of those surveyed said they were happy with both the range of products and services and the contact opportunities at the exhibition stands.
SIG partnership showcases recycling in action at Mexico fun park
SIG has teamed up with soft drink producer Sociedad Cooperativa Trabajadores de Pascual (SCTP) and fun park operator Ventura Entertainment to raise awareness of the importance of recycling through special collection bins made from recycled carton packs at La Feria de Chapultepec amusement park in Mexico.
Brand power to raise awareness
SIG’s aseptic beverage cartons are 100 % recyclable, but the rate of packs recycled remains low in Mexico due to low awareness of the value of recycling and a lack of suitable waste collection systems.
The new Coopera Recycling Campaign from SIG, SCTP and Ventura Entertainment aims to use the power of popular brands to raise awareness of the value of recycling among consumers of all ages. SCTP is one of Mexico’s largest soft drinks producers and the name behind Boing!® fruit drinks. Ventura Entertainment is one of the country’s biggest attractions operators and its La Feria de Chapultepec fun park attracts over 1.5 million visitors a year.
In the first phase of the campaign, SIG will provide 15 recycling containers to be placed around the park. Each is made out of a mix of polymer and aluminium that comes from around 7,000 recycled carton packs, providing a tangible example of recycling in action. Accompanying signs promote recycling and Ventura Entertainment will offer discounts on ticket prices for amusement activities for visitors who use the recycling bins. The empty cartons will be recycled by specialist company Alcamare.
Keeping high-quality materials in use
Encouraging consumers to recycle beverage cartons supports the circular economy by returning more materials into the value chain to produce new products. SIG’s cartons are made from mainly renewable materials in the first place so recycling them keeps high-quality renewable materials in circulation.
Contributing to the circular economy by using renewable content, optimising use of materials and promoting recycling after use is part of the company’s commitment to go Way Beyond Good by putting more into society and the environment than it takes out.
Huhtamaki inaugurates its new, state-of-the-art flexible packaging unit in Egypt today. The investment marks the company’s entry into manufacturing flexible packaging in Africa.
The greenfield is located in the greater Cairo area and will serve Huhtamaki’s flexible packaging customers in Egypt as well as export its products into other African countries and Europe. The manufacturing unit is built on a land area of almost 37,000 square meters, with ample space for future expansion. Production has started this spring and the facility is expected to employ approximately 250 employees.
“The Egyptian market is sizeable, and with the rapid population growth in Africa we expect future growth opportunities both for us and our customers. Until now we have served flexible packaging customers in Egypt from our units in the United Arab Emirates and India. With the new plant we can offer our current and new customers – both in Africa and Europe – the same top quality with shorter lead times,” says Olli Koponen, EVP Flexible Packaging.
The new manufacturing unit is owned and operated as a joint venture of which Huhtamaki owns 75 %. The remaining 25 % is owned by Mr. Ayman Korra, who has been Huhtamaki’s joint venture partner in the Egyptian fiber packaging business since 2003. The current investment, including land purchase, facility construction and machinery, is expected to be approx. EUR 23 million with Huhtamaki share at approx. EUR 17 million.
About Huhtamaki: Huhtamaki is a global specialist in packaging for food and drink. With our network of 78 manufacturing units and additional 24 sales only offices in altogether 34 countries, we’re well placed to support our customers’ growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,700 employees develop and make packaging that helps great products reach more people, more easily. In 2018, our net sales totaled EUR 3.1 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd.
What started out small 40 years ago today has in the meantime grown significantly – and has long since developed into one of the world’s leading manufacturer of innovative checking, inspection, rejection and labelling systems for a continuous in-line quality assurance when filling and packaging beverages, food and pharmaceuticals: HEUFT SYSTEMTECHNIK GMBH was founded on 1 April 1979!
Bernhard Heuft started the company back then in Burgbrohl in the Volcanic Eifel (Germany) with just twelve skilled people he knew. The fact that the strength of his highly motivated team has increased a hundredfold over the past 40 years to over 1,200 employees worldwide impressively illustrates that this was the right decision at that time for putting the young family business on the road to sustainable success.
In fact in the truest sense: HEUFT received the first patent for a truly ingenious invention by the company founder which still defines the state of the art today regarding the accurate upright high-speed rejection of faulty empty and full containers – the HEUFT DELTA-FW multi-segment flow rejector.
Over 500 further patents have been added since then – and therefore genuine unique technological features which not only optimise in-line quality assurance when filling and packaging beverages, food and pharmaceuticals sustainably but also the efficiency of complete lines.
From the first optical fill level detection to the fill management system with multi-processing capabilities, from the first empty bottle inspector in an efficient straight-through system to the all-surface empty container inspection on less than one square metre of floor space, from the unique pulsed X-rays to the company’s own real-time image processing system, from clean labelling to the precise marking inspection, from the harmonious conveyor control system to the comprehensive line analysis: a wide range of innovative technologies from the modular HEUFT system has been setting the standards for efficient in-line quality assurance for 40 years.
Basic research and the development of solutions not only focused on maximum automation during precise product tracking, reliable fault detection and specific fault rejection but also consistent user support from the start. In this way HEUFT introduced the very first systems with a monitor into the bottling hall for a simply better overview. The company’s own graphical user interface was soon to follow, then the audiovisual HEUFT NaVi user guidance and most recently even real voice control for full operational reliability and productivity.
It is not only innovative striving forward with countless technological pioneering achievements over the past 40 years which has set the medium-sized family business on a sustainable course for success but also the resulting continuous growth regarding company premises, international sales and service locations as well as competent employees i.e. in research and development, production, project planning and support.
Cartons will become full-scale data carriers and digital tools
Tetra Pak announced the launch of its connected packaging platform, which will transform milk and juice cartons into interactive information channels, full-scale data carriers and digital tools.
Driven by the trends behind Industry 4.0, and with code generation, digital printing and data management at its core, the connected packaging platform will bring new benefits to food producers, retailers and shoppers.
For producers, the new packaging platform will offer end-to-end traceability to improve the production of the product, quality control and supply chain transparency. It will have the ability to track and trace the history or location of any product, making it possible to monitor for market performance and any potential issues.
For retailers, it will offer greater supply chain visibility and real-time insights, enabling distributors to track stock movements, be alerted when issues occur, and monitor for delivery performance.
For shoppers, it will mean the ability to access vast amounts of information such as where the product was made, the farm that the ingredients came from and where the package can be recycled.
Ivan Nesterenko, Vice President, Cross Portfolio at Tetra Pak said: “We are unlocking new opportunities for our customers to get more value from packaging than even before. No longer is it only about product protection and functionality, it is about connectivity. The future of packaging is undoubtedly digital: this launch is a step towards a truly intelligent package, and we are excited to collaborate with our customers on this journey.”
Tetra Pak has successfully completed pilots with its customers to test the new connected package and its performance in retail in Spain, Russia, China, the Dominican Republic and India, working with beverage, juice and milk producers. In Spain a customer increased their sales by 16% through the scan and win campaign.
Krones, the world’s leading manufacturer of filling and packaging technology, continued to grow in 2018 despite difficult conditions. The company benefited as a full-service provider from its extensive product and service range and broad international footprint.
Krones achieves growth target for 2018 financial year
Revenue increased by 4.4 % year-on-year, from €3,691.4 million to €3,854.0 million. The company thus achieved the revised target of 4 % revenue growth announced in autumn 2018. Revenue grew operationally (i.e., adjusted for currency and acquisition effects) was around 5 %. Krones increased revenue, in some cases significantly, in Europe, China and South America/Mexico. Revenue was down in the Asia/Pacific region, the Middle East/Africa and in North and Central America.
Despite the high prior-year figure, order intake increased by 4.5 % in 2018, from €3,786.8 million to €3,957.3 million. Growth in order intake was above average in Western and Eastern Europe and in China. Krones had orders on hand totalling €1,261.1 million at the end of 2018. This once again exceeded the very high prior-year figure by 1.7 %.
Krones continued to invest in the growth of its workforce in 2018, primarily for the expansion of its global footprint. The company employed 16,545 people worldwide at the end of 2018. This represents an increase of 1,246 employees on the previous year, about 400 of which related to acquisitions.
Profitability affected by one-off expenses, mainly for reorganisation
Krones’ earnings were significantly impacted by higher material and labour costs in 2018. The 5.3 % EBT margin includes approximately €42 million in one-off expenses, mainly for reorganisation.
Had these expenses not been incurred in 2018, the EBT margin would have been 6.4 %. The costs related to establishing the production site in Hungary account for the largest share of this amount. In total, earnings before taxes (EBT) in 2018 were down by 21.1 % or €54.5 million year-on-year to €204.3 million (EBT margin: 5.3 %).
Earnings decreased in both segments. In the core segment, Machines and Lines for Product Filling and Decoration, EBT went down by 15.2 % year-on-year, from €263.3 million to €223.3 million. Expenses for reorganisation reduced segment earnings here by around €25 million. In the Machines and Lines for Beverage Production/Process Technology segment, EBT deteriorated from –€4.5 million in the previous year to –€19.0 million. This mainly related to a total of around €17 million in one-off expenses.
Krones improves free cash flow by €271.4 million
Krones was able to significantly reduce working capital between October and December 2018. This had a positive impact on free cash flow, which improved in 2018 by a substantial €271.4 million compared with the prior year, to €120.7 million (previous year: –€150.7 million). The ratio of average working capital over the past four quarters to revenue developed slightly better than expected, holding stable at 27.3 % in 2018. Net cash went up to €215.1 million at the 2018 reporting date (previous year: €157.4 million). Due to the increase in total assets, the company’s equity ratio decreased slightly to 43.2 % (previous year: 43.8 %). Overall, Krones continues to possess a very robust financial and capital structure.
With the above figures, Krones has confirmed the preliminary figures published on 21 February 2019. No significant changes arose in the course of the auditing process.
Shareholders to receive stable dividend of €1.70 per share
At the Annual General Meeting on 5 June 2019, the Executive Board and Supervisory Board of Krones will be proposing a dividend of €1.70 per share for the 2018 financial year. The proposed dividend is stable relative to the previous year. The planned payout is 35.7 % of consolidated net income.
Outlook
Based on the prevailing macroeconomic outlook and the current expected development of the markets relevant to Krones, the company expects consolidated revenue growth of 3 % in 2019.
In order to achieve its medium-term corporate targets, Krones will continue in 2019 to work towards a global structure fit for the future challenges. The company does not expect any noticeable fall in material procurement prices in 2019; the same applies to labour costs. Krones’ sales price increases on all bottling and packaging equipment and for process technology with effect from 1 May 2018 are likely to have a slight positive effect on earnings in the 2019 financial year. Overall, Krones expects an EBT margin of around 6 % for 2019.
Above all due to the focus on increases in the sales price level, in the current economic and geopolitical climate, Krones sees the achievement of its targets for 2019 subject to greater uncertainties than in the past. For its third performance target, working capital to revenue, Krones expects a figure of 26 %.
Rolf Stangl, CEO of SIG, said: “In 2018 we successfully continued our growth strategy and achieved core revenue growth of 6.4 % at constant currencies, slightly exceeding our target range of 4 – 6 %. We saw growth across our global footprint and are reaping the rewards of our steady expansion into markets outside Europe, where growth in aseptic carton packaging is being driven by mega-trends including demographics, rising disposable income and urbanisation. The Asia Pacific region in particular delivered a strong performance during the year, with robust growth in the liquid dairy segment and growing demand for premium products.
“Our broad international presence continues to provide us with promising growth opportunities. These opportunities come with exposure to currency fluctuations, which in 2018 dampened growth in adjusted EBITDA. At constant currencies, adjusted EBITDA increased by 8 %. The adjusted EBITDA margin increased to 27.5 %, reflecting a positive business mix and ongoing cost efficiency measures. We achieved a significant increase in adjusted free cash flow, while continuing to expand our filler base in growth markets. The cash generative nature of our business underpins our intended mid-term dividend payout ratio of 50 – 60 % of adjusted net income. For 2018, we are proposing a Swiss franc dividend payout in 2019 equivalent to around €100m.”
2018 Annual Report
SIG has published its 2018 Annual Report, which includes the Group’s operating and financial results accompanied by SIG’s audited consolidated and statutory annual financial statements, the Compensation Report outlining the compensation policies of the Group and the Corporate Governance Report. All publications are available for download at https://investor.sig.biz/en-gb/home/.
Latest industry data on glass recycling confirms that over 12 million tons of glass bottles and jars are collected and recycled in Europe, with an average glass recycling rate in the EU28 of 74 %(1). Glass remains the best performing food grade closed loop in the world. The latest industry data have a two-year time lag dating from 2016.
This figure should be set to rise. With the Circular Economy now at the forefront of the political agenda, EU Member States have committed to ambitious targets on municipal waste reduction and glass packaging recycling. This signals a renewed investment in separate collection for glass packaging in the coming years, which will engage consumers, municipalities, Extended Producer Responsibility schemes, recyclers and manufacturers in a collaborative effort to collect, sort and treat the glass that is currently leaking from the system.
“As an industry we commit to actually recycle all collected glass of sufficient quality in the closed loop. An estimated 90 % of what is collected goes into creating new bottles from old ones, offering brands and consumers a food grade quality recycled material. Today, recycled glass is our most important raw material, which brings us major environmental benefits, and energy savings”, commented Adeline Farrelly, FEVE Secretary General.
Our recent study on glass packaging recycling(2) demonstrates that countries such as Austria and Sweden have gone beyond 90 % collection for recycling rates by installing bottle bank systems and investing in consumer awareness. Tailored solutions will need to be found locally, but separating glass from the other materials is the best investment for public authorities to meet the new glass recycling targets. Our recent consumer research suggests that particularly for millennials, environmental credentials drive their product choice, and that the take-back culture for glass packaging is very strong where there is bottle bank infrastructure in place(3).
“Consumers have a strong connection with glass packaging, which is for them more than just a packaging”, she continued. “Over ten years ago, the industry decided to invest in consumer communications to raise awareness about the importance of glass recycling and the other key assets of glass packaging. We want to help bridge the collection gap, but clearly cannot do so on our own. Efforts across the value chain are needed.”
The average 74 % EU glass collection for recycling rate masks a variety of situations between countries. If we look at performance rates, on the one side, we find countries in the ‘Over 90 %’ top league: Belgium, Finland, Austria, Sweden and Slovenia where separate collection schemes for glass perform very well and provide a high quality secondary raw material for the industry. On the opposite side we find countries in the ’Under 40 %’ league: Greece, Hungary, Slovak Republic, Malta, Romania where the collection culture and, consequently the glass collection schemes have important potential for growth. Looking at overall volumes of glass collected, the picture in larger countries such as France, Italy, the UK, Poland or Spain is different. In conclusion, each country is different and will need its own focused and tailored strategy to ensure top class glass recycling. In conclusion, each country is different and will need its own focused and tailored strategy to ensure top class glass recycling.
51 % of Canadians want healthy snacks packaged to eat on the go. (Read more)
3 in 10 consumers are interested in snacks made with plant-based protein. (Read more)
41 % of consumers trust health claims on food and beverage packaging. (Read more)
It seems the traditional three meals a day are facing an evolution in Canada, as new research from Mintel reveals that nearly half (46 %) of better-for-you (BFY) snackers* feel that it is healthier to snack throughout the day than to eat three large meals. In need of constant fuel, many Canadians have snacks at the ready with two-thirds (65 %) of BFY snackers believing it’s important to always keep healthy snacks on hand.
Keeping up with their interest in snacking throughout the day, more than half (51 %) of Canadians agree that they’d like to see more healthy snacks packaged for eating on the go. What’s more, it seems there’s potential for anything to be considered a snack among younger consumers, as 45 % of Canadians aged 18-24 are interested in snack-sized portions of regular foods as compared to 31 % overall.
“Snackers today are looking for ways to satisfy cravings that fit in easily with an increasingly on-the-go lifestyle. The good news is food manufacturers and foodservice providers need not start from scratch. As many consumers have adopted the notion that anything can be a snack, companies can appeal to those looking for better-for-you snacks by rethinking packaging to make items more portable rather than reinventing the wheel. This is especially crucial for foodservice vendors in particular as consumers aged 18-24 are the most likely to dine out, yet also feel the financial impact of it. This highlights an opportunity to offer smaller serving sizes of their dishes at lower price points to appeal to this group,” said Carol Wong-Li, Associate Director, Lifestyles and Leisure Reports, at Mintel.
Younger consumers prioritize protein
As consumers look to make better choices for themselves, it seems fresh and less processed snacks are coming out on top as fresh fruit and vegetables (84 %) are the nation’s top better-for-you snack of choice, followed by cheese (79 %), nuts (69 %) and popcorn (60 %). In fact, Mintel research shows the snack innovation that consumers are most likely to say they would like to see more of is products made from fresh ingredients (55 %).
While fresh snacks are winning out, younger consumers are placing power in protein to keep them full. Three in 10 (30 %) consumers say they eat meat snacks, with younger snackers aged 18-34 the most likely age group to agree (41 %). Although just 16 % of consumers say they are interested in snack bars made with meat, one third (32 %) of men aged 18-34 are keen to see more of this type of offering.
Following the growing flexitarian movement, it seems that plant-based has potential when it comes to better-for-you snacking as three in 10 (29 %) consumers say they are interested in snacks made with plant-based protein, rising to four in 10 (39 %) among women aged 18-34.
“Protein is a key area of interest for younger Canadians when it comes to innovations in healthy snacks, but men and women differ when it comes to the actual source of protein they prefer. While young women show interest in plant-based proteins, men are more likely to turn to meat. This may stem, in part, to the different approaches taken to snacking. Younger women tend to snack because they are too busy to eat meals, whereas young men usually do so as a way to refuel after exercise. Marketers looking to promote plant-based proteins will see success by focusing on how these ingredients work to keep consumers fuller longer, while brands promoting meat can focus on how the quality of the meat protein contributes to muscle building, recovery and/or development,” said Wong-Li.
Healthfulness of BFY snacks comes into question
While Canadians are keen to enjoy healthy snacks, there are significant concerns. Nearly three-quarters (73 %) of BFY snackers believe that many snacks marketed as healthy are not actually healthy, with just 41 % saying they trust the health claims on food and beverage packaging. And for many, there’s confusion when it comes to making a healthy snack choice, as half (49 %) say it is hard to tell if a snack is healthy.
“Many consumers today have difficulty determining the healthfulness of snacks and hold a general distrust of claims on food and beverage packaging. This may be drawing them toward choosing fresh and less processed snacks, rather than processed and/or packaged ones. Marketers can boost perceptions of healthfulness of their products by highlighting whole and/or fresh ingredients the products include and featuring clear packaging to both showcase the ingredients and offer transparency,” concluded Wong-Li.
*Base: 1,959 internet users aged 18+ who have eaten better-for-you snacks in the past 3 months leading to July 2018.
Nestlé announced the creation of the Nestlé Institute of Packaging Sciences, dedicated to the discovery and development of functional, safe and environmentally friendly packaging solutions. This is a step further to achieve the Company’s commitment to make 100 % of its packaging recyclable or reusable by 2025.
Nestlé CEO Mark Schneider said, “We want to be a leader in developing the most sustainable packaging solutions for our food and beverage products. To achieve this, we are enhancing our research capabilities to develop new packaging materials and solutions. Through this, we hope to address the growing packaging waste problem, in particular plastics. We aim to minimize our impact on the natural environment while safely delivering to our consumers healthier and tastier products.”
The Nestlé Institute of Packaging Sciences, which is part of Nestlé’s global research organization, will be located in Lausanne, Switzerland. It will employ around 50 people and include a state-of-the-art laboratory complex as well as facilities for rapid prototyping.
In close collaboration with the Company’s global R&D network, academic partners, suppliers and start-ups, the institute will evaluate the safety and functionality of various sustainable packaging materials. Research focus areas will include recyclable, biodegradable or compostable polymers, functional paper, as well as new packaging concepts and technologies to increase the recyclability of plastic packaging. The new solutions will be tested in various product categories, before they are rolled out across Nestlé’s global portfolio.
Nestlé Chief Technology Officer Stefan Palzer said, “Packaging plays a crucial role in helping us deliver safe and nutritious products to our consumers. The new Institute of Packaging Sciences will enable us to accelerate the redesign of our packaging solutions. Cutting-edge science as well as a close collaboration with globally leading academic institutions and industrial partners will deliver a pipeline of highly performing environmentally friendly packaging solutions.”
Growth in the global food and beverage processing and packaging equipment market looks promising over the next four years. Frost & Sullivan’s latest analysis reveals that improved economic conditions in emerging nations, changing dietary preferences globally, and a rising demand for nutritious and ready-to-eat food products are driving demand for food processors and boosting growth in the packaging equipment market. The global food and beverages processing and packaging equipment market is expected to expand at a CAGR of 4.1 % from 2017 until 2022 and reach $78.6 billion.
“With increasing food and beverages product demand and a growing emphasis on food safety, food processors are reliant on equipment manufacturers to provide processing and packaging equipment that is agile and utilizes advanced technologies to minimize energy usage, operate at a higher efficiency, and improve yield,” said Arun Ramesh, Team Lead, Agriculture and Nutrition, Visionary Science, Frost & Sullivan.
The global demand for food products has led equipment manufacturers to acquire, merge, and partner with companies to leverage technology innovation. To remain competitive in an evolving market, Ramesh recommends that players create smarter products by investing in new capabilities such as advanced data and analytics, robotics and automation, and extend their capabilities to offer full solutions, including installation, monitoring, services, and integration. Additional factors imperative to growth include:
Equipment manufacturers upgrading to advanced machinery for processing and packaging to cater to changing consumer preferences and consumption patterns
Using machine learning and other tools to predict process delays, make improvements to engineering and optimize equipment design
Refreshing operating models with an emphasis on enhanced after-sales and growth-focused strategies
“Machine downtime is still a major concern in the industry, and there is room for further investment in research and development among equipment manufacturers to develop equipment that is flexible and modular and customized to fit different products and customer needs while optimizing total cost of ownership,” noted Ramesh.
Global Food and Beverages Processing and Packaging Equipment Market, Forecast to 2022 market intelligence examines global growth opportunities in the food and beverages processing and packaging equipment market in detail with an emphasis on key growth factors across end-application segments, global and regional market trends, technologies, and product innovations.
Global Food and Beverages Processing and Packaging Equipment Market, Forecast to 2022 is the latest addition to Frost & Sullivan’s Visionary Science research and analysis available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
Stora Enso and Sulapac continue to combat the global problem of plastic waste by introducing a demo of a sustainable straw at Slush 2018, a global leading startup event gathering of 20,000 tech enthusiasts. The demo, targeting industrial scale production, is designed to replace traditional plastic straws with renewable ones. The straws are based on Sulapac’s biocomposite material – made of wood and natural binders – designed to be recycled via industrial composting and biodegrade in marine environment.
“This is an important step for Stora Enso and showcases our long-term commitment to gradually replacing fossil-based materials with renewable solutions. Our collaboration with Sulapac is a great example of what we can achieve through partnership in terms of driving innovation to create sustainable solutions within the bioeconomy,” says Annica Bresky, EVP, Consumer Board division.
Stora Enso signed a joint development agreement with Sulapac in May 2018 to license its materials and technology. The development of the demo straw is a joint collaboration between Stora Enso and Sulapac – a cooperation which complements Stora Enso’s extensive biocomposite portfolio.
“Eco-awareness is a strong driver for consumer demand, and our customers want help in replacing non-renewable materials. Different biocomposite solutions, such as renewable caps and closures and straws will be add-ons and a complement to our own consumer board portfolio, bringing additional value to our customers,” says Hannu Kasurinen, SVP Head of Liquid Packaging and Carton Board.
Sulapac’s material works in existing extrusion lines and the target is to have the straws commercially available in Q2 2019.
“Today, we proudly announce that we are launching a demo for a recyclable, microplastic-free and marine biodegradable straw. This is the world’s most sustainable straw that can be produced on an industrial scale and we have jointly developed it with Stora Enso. Billions of plastic straws are produced and used every week. This straw has the potential to be a true game changer,” says Sulapac’s founder and CEO Suvi Haimi.
Closure Systems International (CSI) and Talkin’ Things®, the leading innovator in product communication platforms, have collaborated to integrate smart packaging technology into CSI’s global platform of closures. CSI and Talkin’ Things have developed a new packaging solution named Talkin’ Cap, which uses embedded Near Field Communication (NFC) tags, for application on the inside of closures. This technology introduces a powerful platform to support a brand owner’s mobile marketing activities right from the package itself…with just a simple tap.
Brand trustworthiness and product reliability are paramount for consumer loyalty. Talkin’ Caps ensure product safety and reduce brand owners’ liability by protecting against counterfeiting and “gray market” activities throughout the distribution stream.
CSI’s Talkin’ Caps allow for real-time consumer interconnectivity at the point of consumption, giving brand owners the unique ability to have dynamic interaction and gather actionable insights based on consumer location and usage history.
With 90 % of consumers using their smartphone to help make purchase decisions in a brick and mortar setting1, Talkin’ Caps are an app-less way to drive marketing content, brand and product information, gamification, loyalty programs, awards and coupons to connected consumers.
Biggest privately financed rooftop solar panel on the east coast of Thailand
It is one of the biggest and most impressive innovations in Eastern Seaboard Industrial Park. The gigantic rooftop solar panel on the SIG packaging plant in Rayong, Thailand, is the largest of its kind in the entire region and has now been officially opened.
According to its Power Development Plan, Thailand wants to cover 40 % of its electricity requirements from renewable energy sources by 2036 – a goal that SIG has already achieved. All SIG production plants worldwide are already powered by green electricity. In order to produce some of this itself, the Rayong packaging plant built its own photovoltaic system in cooperation with Symbior Solar.
Solar cells are one of the most environmentally friendly energy sources. To install this huge solar roof supports SIG’s commitment to becoming a net-positive company by contributing more to the society and the environment than it takes out across the value chain.
The installation of the solar roof on the SIG production plant is a result of the close cooperation between SIG and Symbior Solar, who designed and installed an effective solar photovoltaic (PV) system at the roof the SIG production plant in Rayong. Covering an area of 17,664 sqm, this solar project with 9,048 solar panels can produce up to 4,431 megawatt hours of electricity per year which in turn reduces CO2 (Carbon Dioxide) emissions by up to 90 %, whilst also saving electricity cost. SIG packaging plant in Rayong can now proudly claim the title of being the biggest solar PV installation in the entire Eastern Seaboard Industrial Park. It is thus the largest privately financed photovoltaic system on an industrial site on the entire east coast of Thailand.
Some key facts:
The production plant in Rayong is the first in the world of our SIG production plants to use a solar roof to generate energy.
Installation Capacity: 3.3 MW
Power generation 4,431 MWh/year
CO2 reduction: 2,242 tons/year (0.506 kg/kWh)
Total solar cells: 9,048 panels installed
The solar PV module covers 17,664 sqm on SIG Rayong plant’s roof.
The world market for aseptically packed products amounted to 152 billion litres in 347 billion packs during 2017, according to the new Global Aseptic Packaging report from leading food and drinks consultancy Zenith Global Ltd and packaging experts Warrick Research Ltd. Volumes have risen by 2.7 % a year since 2012, with South East Asia achieving the fastest annual growth rate of 7 %, followed by China on 6 %.
Beverages such as fruit juice accounted for 39 % of aseptically packed products, with white drinking milk responsible for 38 % and other dairy/food products making up the remainder. Aseptic filling has also become established for soups, sauces, tomato products and baby foods.
“While European companies still dominate the global aseptic filling equipment industry, the Chinese market is increasingly supplied by Chinese equipment manufacturers, some of whom have also successfully entered other Asian markets,” commented David Warrick, Director at Warrick Research Ltd. “Volumes have been static in much of Europe, contrasting with rapid growth in many Asian countries,” added Arunkumar Anbalagan, Senior Insights Analyst at Zenith Global Ltd.
Other findings of the 2018 Global Aseptic Packaging report include:
There are over 16,000 operational aseptic filling systems worldwide, serviced by more than 30 suppliers.
The largest markets for aseptic packaging are China and South East Asia. China is set to become the leading country by 2022, followed by South East Asia and West Europe.
Value added dairy products are a fast growing area of demand for aseptic filling systems. In some regions, fillers are used for both ambient and chilled dairy products.
Environmental issues have become more important in many regions. Developments include the introduction of electron beam sterilisation as an alternative to chemical sterilisation. Demand is increasing for re-use or recycling.
By 2022, Zenith and Warrick estimate that the world market will reach 176 billion litres and 410 billion packs. The majority of additional demand will come from South East Asia as well as China.
Ecolean, a global producer of lightweight packaging solutions for liquid food, expands its business and acquires a 30,000 square meter piece of land in Landskrona, Sweden to establish a new production facility. The expansion is part of the company’s ambitious growth strategy.
The increase in capacity is well needed to meet the liquid food industry’s demands for Ecolean’s lightweight and innovative packaging solutions. In the agreement, an additional 30,900 sqm can be obtained, when needed in the future.
“As part of our ongoing expansion strategy, this investment of 25-30 million euros will enable us to continue being a fast growing and rapidly expanding company”, says Peter L Nilsson, CEO, Ecolean Group. “The new production facility will be up and running in 2020 and we expect to add around 100 new job opportunities within a few years’ time”, he continues.
The new production facility will be located only 20 km south of Helsingborg, where the company’s headquarters and one of their existing production facilities are located. Ecolean has 400 employees, half of which work in Helsingborg.
In addition to Sweden, Ecolean has one production facility in China and one production facility under construction in Pakistan, estimated to start its operations 2019. Ecolean collaborates with leading brand owners in approximately 30 countries and has eleven sales offices globally.
The Ecolean lightweight packages are made of as little raw material as possible, providing a low environmental impact throughout the packages’ life cycle. The company and its packaging solutions’ sustainable profile appeals to market-leading liquid food brands globally.
In today’s hyperconnected world, convenience is the ultimate currency
Rising internet penetration, denser urban locations, faster paced lifestyles and challenging working hours are adding more and more layers of complexity to consumers’ lives. According to the World Health Organization, “workplace stress is the health epidemic of the 21st century,” and multiple agencies have tracked the steady rise of anxiety related illnesses around the world. Consumers are feeling more stretched than ever before, and are increasingly striving for convenient solutions which help to simplify their busy lives.
Around the globe, consumers need and look for convenience in all forms—whether simplicity, time saving or suitability. When it comes to the fast-moving consumer goods (FMCG) space, convenience is not only about store formats, products or packaging. It means more than the latest technologies or new engagement strategies. Rather, it is about every encounter, interaction and action that can help fulfil consumers’ growing demand for efficiency.
The Nielsen Quest for Convenience report looks at changing consumer needs around the world, specifically focusing on factors driving consumers’ increasing need for convenience, to provide global FMCG players with key insights, indicators and solutions to successfully tap into the rapidly rising need for convenience.
Ball Corporation published its sixth biennial sustainability report, covering calendar years 2016 and 2017, which details how it addresses systemic challenges in the areas of circular economy, climate change, water stewardship and responsible sourcing, as well as its bold new science-based greenhouse gas emission reduction target.
Commitment to reducing greenhouse gas emissions
In line with the level of decarbonization required to keep the average global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures, Ball is committing to reduce its absolute Scope 1 and 2 GHG emissions by 27 percent by 2030 compared to a 2017 baseline. Per million dollars of value added, this equates to a 58 percent reduction of our carbon intensity over the same period. Additionally, Ball strives to reduce GHG emissions across the value chain – from mining, refining, smelting, casting and rolling, to its manufacturing, logistics and end-of-life recycling – by 25 percent by 2030.
To achieve these targets, the company will follow a three-pronged approach: increase efficiency by saving energy and materials; grow renewables through the purchase of renewable energy; and cut embedded carbon by working with partners to reduce upstream impacts.
In addition to establishing its greenhouse gas reduction target, Ball also achieved a number of sustainability accomplishments during the reporting period:
Reused or recycled 64 percent of the total waste generated, and 39 of its 88 packaging manufacturing plants worldwide achieved zero waste to landfill status by year-end 2017.
Constructed state-of-the-art, sustainable beverage can manufacturing plants in Goodyear, Arizona, and Madrid, Spain.
Saved approximately 34 million kilowatt hours of electricity and 4 million watt hours of natural gas, resulting in 9900 metric tons less of GHG emissions.
Launched STARcan, a next-generation beverage can. If we were to switch our entire production volume of 33-centiliter and 12-ounce standard cans to the STAR format with a weight well below 10 grams, we would save approximately 30,000 metric tons of metal, or the equivalent to nearly 200,000 metric tons of GHG emissions.
Reduced aluminum usage in our beverage and aluminum aerosol packaging businesses by 7,700 metric tons in 2017, which equates to saving 58,000 metric tons of GHG emissions, or the emissions of 12,400 U.S. passenger vehicles per year.
Employees contributed more than 38,000 volunteer hours and donated $5 million in charitable donations in partnership with The Ball Foundation, as well as in-kind product donations for disaster relief, employee donations and the corporate match.
Amcor Limited and Bemis Company, Inc. announced that their respective Boards of Directors have unanimously approved a definitive agreement under which Amcor will acquire Bemis in an all-stock combination.
Combining these two complementary companies will create the global leader in consumer packaging, with the footprint, scale and capabilities to drive significant value for shareholders, offer customers and employees the most compelling value proposition in the packaging industry and deliver the most sustainable innovations for the environment.
The transaction will be effected at a fixed exchange ratio of 5.1 Amcor shares for each Bemis share, resulting in Amcor and Bemis shareholders owning approximately 71 % and 29 % of the combined company, respectively. This is equivalent to a transaction price of US$ 57.75 per Bemis share based on Amcor’s closing share price of A$ 15.28(1) on August 3, 2018, and represents a premium of 25 % to Bemis’ closing price of US$ 46.31 per share as of August 2, 2018(2).
Overview of Amcor Amcor is a global leader in responsible packaging solutions, supplying a broad range of rigid and flexible packaging products into the food, beverage, healthcare, personal care and other fast moving consumer end markets. Amcor operates around 195 sites in over 40 countries, with approximately 35,000 employees. For the year ended 30 June 2017, Amcor generated revenues of US$9. 1 billion and EBITDA of US$1.4 billion.
Overview of Bemis Bemis Company, Inc. (“Bemis”) is a supplier of flexible and rigid plastic packaging used by leading food, consumer products, healthcare, and other companies worldwide. Founded in 1858, Bemis reported 2017 net sales of US$4.0 billion. Bemis has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing, and converting. Headquartered in Neenah, Wisconsin, Bemis employs approximately 16,000 individuals worldwide.
1) Equivalent to a US dollar share price of US$11.32 based on a AUD:USD exchange rate of 0.7411 as of August 3, 2018. 2) August 2, 2018 being the last trading day prior to market speculation on August 3, 2018 in relation to a transaction between Amcor and Bemis.
Consumers usually prefer food and drink formats over pills or tablets for the delivery of health enhancing ingredients. However, this preference for formats is not consistent across all age groups. Therefore, functional food and drink brands should carefully study the differences between the generations of consumers in more detail for their successful product launches, says leading data and analytics company GlobalData.
An analysis of the company’s Q4 2017 global consumer survey reveals that even though food is the most preferred format among all formats across all age groups, the majority of the Silent Generation chooses food as the preferred consumption format (89 %) compared to Millennials (85 %).
The gap between generations is conspicuous when it comes to drink format. According to the survey, younger consumers are more likely to opt for drinkable formats over pills or tablets for the delivery of health enhancing ingredients. The survey showed that drinks are favored by 60 % of Millennials and 58 % of Generation X consumers but only 52 % of Boomers and 48 % of Silent Generation consumers.
On the other hand, preferences for food and supplements (in the form of pills or tablets) that deliver health enhancing ingredients are relatively consistent across all age groups.
Aleksandrina Yotova, Consumer Markets Analyst at GlobalData, comments: “Functional drinks brands should therefore target Millennials and Gen X-ers specifically with innovative launches that respond to younger generations’ requirements for convenience, simplicity and effectiveness.”
Latest industry data on glass recycling show that the average glass recycling rate in the EU28 is steady at 74 %. This means that over 11.6 million tons of glass bottles are collected, and recycled into food grade quality material for the production of new glass containers.
Countries such as Belgium, Slovenia or Sweden, with excellent separate collection systems, continue to outperform beyond 95 %. While glass stands alone as the most circular packaging solution, maintaining permanent quality even when recycled, the reality is that there is still an important collection gap to fill in many EU countries.
“Our industry is mobilized to fill the gap to 100 % EU glass recycling because recycled glass is our most important raw material”, commented Adeline Farrelly, FEVE Secretary General. “We hope the new packaging recycling targets will give the necessary boost to all EU countries to invest in closed loop glass collection.”
As pointed out at the Euractiv Event, real recycling is a balancing act between developing materials that are recyclable, and markets that are open to use recycled material. “More and more effort is being put at European level to use recycled material for new food packaging”, says Jean-Paul Judson, FEVE Public Affairs Manager. “Recycled glass is of food grade quality. It goes straight into new food or beverage containers. We want to engage with policymakers to make this model the reference”.
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