PACKAGING SUSTAINABILITY

IN THE WORLD OF LUXURY

MIKE ROSE

SUSTAINABLE

PACKAGING IN THE

WORLD OF

LUXURY

• Is this a contradiction in terms?

• Can a whisky brand really claim to exist in

the world of luxury?

• What is sustainability anyway?

• What challenges do we face and how do we

respond?

SUSTAINABLE PACKAGING

SUSTAINABILITY

Definition:

‘’the avoidance of the depletion of natural resources in order to maintain an ecological balance’’

Waste Prevention

• Reduction

• Re-use

• Recycle

• Recovery

YEAR 2009:

Blended Scotch whisky exports

94.5 million cases

Single Malt Scotch whisky exports

7.1 million cases

OUR COMMITMENTS (BY 2020)

• We will reduce by 10% the average unit weight of our product packaging materials

• We will ensure that 40% of our product packaging will be made from recycled materials

• All of our product packaging will be reusable or recyclable

• We will send no packaging from our packaging operations to land fill

HOW HAS THE INDUSTRY EVOLVED?

• Blended Scotch whisky exports 92.6 million cases- Down by 1.7% since 2009

• Single Malt Scotch whisky exports 13.7 million cases

- Up by 91.5% since 2009

WHERE IS THE INDUSTRY NOW?

Year 2018

• Primary energy use ✓

• CO2 emissions ✓

• Use of fossil fuels ✓

• Water use ✓

• Environmental management ✓

WHERE IS THE INDUSTRY NOW?

Year 2018

• Primary energy use ✓

• CO2 emissions ✓

• Use of fossil fuels ✓

• Water use ✓

• Environmental management ✓

AND PACKAGING?

PREMIUMISATION

THE WORLD

OF LUXURY

LUXURY

Definition:

• A condition or situation of great comfort, ease and wealth

• Something that is expensive and not necessary

• Something which is helpful or welcome and which is not usually

available

MULBERRY

Mulberry Bayswater Heritage handbag

MULBERRY

Mulberry Bayswater Heritage handbag

£1,095

MARKS AND

SPENCER

Tote bag

MARKS AND

SPENCER

Tote bag

£39.50

• Desirability

• Craftsmanship

• Rarity

• Quality

• Brand association

THE WORLD OF LUXURY

• Desirability

• Craftsmanship

• Rarity

• Quality

• Brand association

Is there such a thing as ‘affordable luxury’?

THE WORLD OF LUXURY

AFFORDABLE LUXURY?

AFFORDABLE LUXURY

CAN A WHISKY REALLY EXIST IN THE WORLD OF LUXURY BRANDS?

• Macallan prior to 2004 • Macallan after 2004

- the worlds most precious spirit?

THE M DECANTER

MACALLAN ESTATE

COLLABORATIONS

Masters of Photography 5

Mario Testino

MACALLAN MAGNUM EDITION

COLLECTIBLE LUXURY

COLLECTIBLE AND RARE

Macallan Golden Age of

Travel

CAN A WHISKY EXIST IN THE WORLD OF LUXURY BRANDS?

CAN A WHISKY EXIST IN THE WORLD OF LUXURY BRANDS?

The MACALLAN:

THE WORLDS

MOST PRECIOUS

SPIRIT

A single bottle of The Macallan

1926 Fine & Rare Collection, 60

Years Old, known as the "holy

grail" of whisky, has sold for a

record £1.5 million at auction

BEING RESPONSIBLE CITIZENS OF THE WORLD

ALL luxury goods have an element of unnecessary, or non-sustainable packaging to support their luxury

positioning, including The Macallan

BEING RESPONSIBLE CITIZENS OF THE WORLD

BEING RESPONSIBLE CITIZENS OF THE WORLD

MACALLAN ESTATE

•

•By grouping commitment areas together into pillars, we create simple themes from which to

build content and demonstrate progress, both specific and relevant to The Macallan Brand

•Four Pillars of Sustainability

•RESPONSIBLE PRODUCTION

•POSITIVE SOCIETY &

COMMUNITY SPIRIT •NURTURED & INSPIRED BY NATURE

•SUSTAINABLE SUPPLIERS

•Communicating a brand led consumption message

locally and globally.

•Engaging positively and meaningfully with our local

community

•Driving energy efficiencies, de-carbonisation,

commitment to non-fossil fuels, eradicating waste to landfill and excellent

protection of water.

•Managing the life-cycle of wood to excellent

standards from acorn to cask, full traceability of

malt supply and sourcing packaging locally,

always with suppliers

with ethics and principles

•Investing in biodiversity on the Easter Elchies Estate

from woodland to the

River Spey.

•Our interactions with farming, water and forests are vital to our distillation process & a strong symbol

of our connection

•5

MACALLAN DISTILLERY

BEING RESPONSIBLE

CITIZENS OF THE

WORLD

Can we:

• Protect local skills and historic trade partnerships

• Source as close to home as is practical

• Develop sustainable packaging solutions

• Convey the brand’s key values of quiet luxury, style

and modernity

• Align the brand with its consumers’ ideals of

sustainability and philanthropy

SCOTLAND FIRST

The Macallan is proud to be Scottish and

obsessed in using the highest quality of materials

and skills to promote necessary excellence and

quiet Scottish luxury.

If the required skills and materials can be found

locally they should be sourced locally to support

and develop specialist crafts at home and to

champion locally society and commerce.

There is a desire to re-establish historic trade

links in Speyside that were once so important to

the local community, including The Macallan.Cost is important but should never be the primary

driving factor ahead of quality, provenance and

sustainability in supplier selection.

LOCAL MASTER CRAFTSMEN

In Speyside there are master craftsmen holding

long established ties to The Macallan from a

master saddler in Aberlour to a woollen mill in

Knockando.

We also work with master woodworkers and

producers of the highest quality leather goods

locally, here in Scotland.

GLASSTORMSUMMARY PROFILE

All works made at the GLASSTORM studio are of the very highest quality of

craftsmanship and have true Scottish Provenance.

• One of Britain’s most exciting and vibrant hot glass studios.

• Experts and pioneers in the niche field of luxury glass products.

• Established in 2005 by two highly acclaimed glass artists/designers.

• Elements of design and decoration can be bespoke to each piece.

HISTORIC LINK OR MODERN FIT WITH MACALLAN

New company with highest quality craftsmanship capable of bespoking.

LOCATION

Tain - SCOTTISH

Glasstorm, Tain

All works made at the GLASSTORM studio are of the very highest quality of craftsmanship and have true

Scottish Provenance.

• One of Britain’s most exciting and vibrant hot glass studios.

• Experts and pioneers in the niche field of luxury glass products.

• Established in 2005 by two highly acclaimed glass artists/designers.

• Located in Tain.

• Elements of design and decoration can be bespoke to each piece.

INNOVATION

PAPER BOTTLES

• Pulp Exoskeleton

• Wheat straw, bamboo, husks, sugar cane

• Content barrier

• Goal is 100% bio-degradable layer

• Compostable

• Goal is 100%

BEING RESPONSIBLE CITIZENS OF THE WORLD

BEING RESPONSIBLE CITIZENS OF THE

WORLD

• 28,000 coffee cups every month!

• What can we do?

• 18.8 kilos full case

SUSTAINABILITY IN PACKAGING

• 18.8 kilos full case

• Outer case 270 grams

• 72% recycled material

• 100% recyclable

• No tape. No staples

• Fully FSC accredited

SUSTAINABILITY IN PACKAGING

RECYCLABILITY

Use of metpol

FSC ACCREDITATION

SUSTAINABLE AND RECYCLABLE

RECYCLABILITY

Recyclability

• 100% pulp and paper board

• 100% recyclable

• Minimal design changes

PLASTIC: THE GREAT EVIL

• Use of bioplastics e.g. PLA• De-forestation• Mixed recycling• Poor bio-degrability• Performance• Cost

THE MACALLAN CLOSURE

• x

HIGHLAND PARK TORQ

• Polythene bags

• Bio-polymer bags

• Corn starch

• PLA

• PBAT

• Home compostable

PLASTIC BAGS

THE WORLD OF RETAIL IS

CHANGING QUICKLY

• Direct to consumer

• Safety and security in transit

• Efficient delivery

• ‘Un boxing’ experience

• The ‘wow’ factor

• Deliver the unexpected

• Minimise waste

DIRECT TO CONSUMER PACKAGING

Practical and effective

DIRECT TO CONSUMER PACKAGING

The POD

Cool, and

Re-usable

DIRECT TO CONSUMER PACKAGING

Guardian pack

Good branding opportunities

Fully recyclable

Re-usable

DIRECT TO CONSUMER PACKAGING

SUSTAINABLE

PACKAGING IN THE

WORLD OF LUXURY

• Is this a contradiction in terms?

• Can a whisky brand really claim to

exist in the world of luxury?

• What is sustainability anyway?

• What challenges do we face and

how do we respond?

SUSTAINABLE PACKAGING IN

THE WORLD OF LUXURY

• Reduce, re-use, recycle, recover

• Limited editions / ultra prestige

• 98% of our packaging is 100% recyclable

• Focus on sourcing close to home

• Focus on the 2%: innovate

• Focus on materials from renewable sources

• Work in partnership with suppliers: they have great ideas, too.

There is a good story to tell!