The PET bottle has emerged as the preferred packaging for drinks among Japanese millennials due to its ease of use and eco-friendly nature. Against this backdrop, beverage giant Suntory Beverage & Food Limited (SBF) is looking to capitalize on the growing popularity of this packaging format to drive ready-to-drink (RTD) coffee sales amid a shrinking RTD market in Japan, says GlobalData, a leading data and analytics company.
According to the company’s report: Success Case Study: Suntory Craft Boss – Craft-style ready-to-drink coffee resonates with Japan’s Millennials, Japan is the largest RTD coffee market in the world, selling 3,574 million liters in 2017. However, the market volume growth in Japan has been slow in recent years and is expected to decline at a compound annual growth rate of -0.89 % between 2017 and 2022. On the other hand, GlobalData’s Market Analyzer reveals that the percentage of sales of PET bottled RTD tea & coffee has increased by 2.81 % from 6,659.30 million liters in 2017 to 6,851.58 million liters in 2018.
Suntory launched Craft Boss, a new range of RTD coffee under the Suntory Boss brand, in April 2017. The Craft Boss range is sold in PET bottles rather than metal cans to offer new consumption experience to millennial consumers.
Shagun Sachdeva, Consumer Insights Analyst at GlobalData, says: “The company’s move to launch craft-style coffee drinks in a PET bottle format is part of strategic product positioning to tap new consumer groups, particularly millennials. This clearly demonstrates that it has understood the importance of innovation in terms of appeal and packaging format, in line with the demographic changes in Japan.”
Craft Boss PET bottled coffee series crossed 27 million cases in 2018. It was the biggest driver of Boss coffee sales, which crossed 100 million cases last year. The success of this series helped Suntory compensate decline in other products, with a very strong growth of 8 million cases in 2018 compared to the previous year.
Sachdeva concludes: “Suntory is one of the first major manufacturers to react to the slow market growth of RTD coffee in Japan. The company has quickly identified the market gap and is catering to the evolving demands of the white-collar millennials to take advantage of the appealing market segment. Simply put, the company used incremental innovation and customer-centric strategy to gain a clear, competitive edge over rivals.”
Coca-Cola Great Britain has created its first ever ad made entirely out of its 100 % recyclable packaging. Love Story, created by Ogilvy and Mather Berlin, tells the story of two bottles who fall in love as they meet over and over again after being disposed of properly and recycled into new bottles. The ad aims to encourage more people to recycle and highlights how plastic bottles can be reused to produce more plastic bottles.
The ad has recycling at its heart as the entire set was made entirely out of recyclable material – mainly Coca-Cola packaging. It was created Berlin-based duo Cris Wiegandt & Lacy Barry (Cosmopola) who used more than 1,500 Coca-Cola, Fanta, Sprite, Smartwater and Honest bottles and cans during production.
The ad premieres was on Channel 4 on 28 July and will continue on cinema, digital and social media throughout the summer. The campaign will communicate its message about recycling to 35 million Britons by the end of this year.
The new ad is part of Coca-Cola Great Britain’s new sustainable packaging strategy, which sees the company aim to recover all its packaging, as well as setting the ambition to increase recycled PET in bottles from 25 per cent to 50 per cent by 2020. It’s the company’s biggest ever, recycling-focused consumer communications campaign and will include experiential activities at music festivals and events, at which Coca-Cola will promote recycling messaging to another six million people.
Boxmore Packaging, with headquarters in Johannesburg, South Africa, will become a fully owned subsidiary of the Austrian packaging specialist ALPLA
ALPLA, a leading provider of plastic packaging worldwide, has bought an African market leader in the form of Boxmore Packaging. The company, headquartered in Samrand, Johannesburg, specialises in PET pre-forms, PET bottles and closures, and currently employs around 1,000 members of staff at nine locations.
‘The African continent is an attractive growth market for us. With the purchase of Boxmore Packaging, we now also have a broad basis for entering the market in South Africa, in addition to our activities with ALPLA TABA in North Africa’, says ALPLA CEO Günther Lehner. ALPLA has acquired 100 % of Boxmore Packaging. All employees and locations are being taken on by ALPLA, although it has been decided that the management structure will remain the same. The current board, under the leadership of Len Engelbrecht (Boxmore CEO), will continue to manage the existing Boxmore business, and in addition, take on responsibility for the integration and management of the existing ALPLA SA business. For the foreseeable future the company will continue to operate under the existing name as a member of the ALPLA Group.
Leaders in South Africa
Founded in 1995, Boxmore Packaging is seen as the market leader for PET pre-forms and bottles (ISBM technology), as well as closures, in southern Africa. Its headquarters are located in the industrial zone of Samrand near the South African city of Johannesburg. Around 1,000 employees currently manufacture approximately 4 billion of the aforementioned products each year at nine production locations. The customers of Boxmore Packaging are situated in more than 20 African countries, as well as on the islands in the Indian Ocean.
‘Both the products and customer structure of Boxmore Packaging suit our corporate structure very well’, emphasised Christoph Riedlsperger, ALPLA’s Regional Director for Africa, Middle East and Turkey. The active customer base includes numerous international consumer goods companies and long-term customers of ALPLA, but also local customers previously unknown to ALPLA. ‘With this acquisition, the biggest in the history of the company, we are taking a significant step towards our targets on the African continent,’ says Günther Lehner.
Len Engelbrecht is delighted with this strategic partnership saying, “Our combined ambition to prioritise growth in Africa is a very exciting opportunity and one that we’ll be exploring through Boxmore’s current footprint, and existing relationships in Sub-Saharan Africa.”
The takeover was signed on 5th of July 2017, implementation remains subject to the required legal and regulatory approval by the competition authorities. The contract parties have reached a confidentiality agreement regarding the financial details.
CARBIOS, an innovative green chemistry company specializing in enzymatic bioprocesses applied to plastic and textile polymers, and TechnipFMC announced the launch of a project for the industrial development of CARBIOS PET enzymatic recycling process. This innovation will allow to produce virgin PET from plastic waste. This contract covers assistance to CARBIOS for the scale up of its process to ensure industrial competitiveness.
CARBIOS’ proprietary innovation provides an industrial solution to fulfill sustainable development requirements of PET production processes. The global market of PET records a 4 % to 5 % annual growth and represents a world production of 64 million tons each year (eq. $70 billion), split between one third of plastics and two thirds of fibers. In 10 years’ time, the annual production of this market is expected to reach 100 million tons (eq. $110 billion).
This process has been developed for the recycling of PET plastics, namely bottles, films and packaging. It enables to overcome constraints and limits of current recycling processes by the treatment of all kind of plastics containing PET (transparent, coloured, opaque and complex), and by the recovery of high-performance virgin PET directly from plastic waste. For the first time, a biological process paves the way to infinite recycling of PET following circular economy principles.
CARBIOS and TechnipFMC, world-leading Company in the fields of energy, chemistry and bio-sourced industries, signed this contract to transpose CARBIOS’ process from the laboratory to the pilot scale. This assistance will further aim at supporting the development of the project and define the bases of the industrial process. Through this contract, CARBIOS will benefit from TechnipFMC industrial know-how in bioprocess engineering and from the expertise of its German affiliate Technip Zimmer, in PET polymerization technologies.
Alain François, General Manager of TechnipFMC Operating Center in Lyon, notably in charge of the projects for chemical and bio-sourced industries, commented: “We are delighted to work with CARBIOS on this enzymatic recycling process that represents a true revolution in the world of PET. We have gained a solid experience in process engineering and we are very enthusiastic at the idea to assist CARBIOS in shaping the industrialization of this innovation. It’s a premiere in the world of green chemistry to which we can bring our expertise and know-how in the fields of process industrialization, engineering and project management.”
 Source: Smithers Pira in 2014, Icis in 2009 and Pira International in 2012
 Source: SRI Consulting in 2010, ICIS in 2009, Samsung in 2010, Tecnon in 2013 and IHS in 2014