Quarterly - HAVI · Quarterly Packaging rePOrt Quarter 4, 2014 Brought to you By EDIBLE PACKAGING...

Quarterly Packaging rePOrt

Quarter 4, 2014

Brought to you By

EDIBLEPACKAGING TRENDS

INDuStry NEWS AND EVENtS

QUALITYTHE BASICS

LEvERAGING wASTE ANDRECYCLING

EXtENDED ProDuCEr rESPoNSIBILIty AND PACKAgINg

2 Q4 2014

Packaging Technology Integrated Solutions provides strategic and operational expertise across the packaging value chain, that helps grow your business and position

your brand with maximum impact for people, planet, and profit. Our global reach and resources, category expertise,

and packaging supply chain analytics provide you withaccess to a suite of solutions developed and executed by

a team of experts, using proven methodologies to help you make a difference anywhere from idea to end-of-life.

www.ptisglobal.com

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OFFICES

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609935Singapore

Phone: +65 6895-2100Phone: +65 6895-2105

E-mail: [email protected]

Printed on recycled paper

www.havigs.com

Q4 2014 3

4 Packaging Inside and Out

8 Industry Insider: Trends in Edible Packaging and Tableware

10 A Greener Path: Leveraging Waste and Recycling to be Greener

12 Vantage Point: Packaging’s Impact on Product and Brand Perception

14 Industry Insider: How the Move Towards Extended Producer Responsibility is Impacting Packaging

16 Spotlight on Legislation

17 Trendspotting 18 Ask the Expert

20 In the News

21 On the Road

22 Case Study Focus

22 Beyond Packaging

Quarter 4, 2014

CoNtENtS

4 Q4 20144 Q4 2014

PACKAgINg INSIDE AND out

Quality: The Basics An insider look at the fundamental process science behind Packaging Quality Assurance and Testing.

Quality Management Systems

Seven Basic Quality Tools, American Society for Quality, http://asq.org/learn-about-quality/seven-basic-quality-tools/ overview/overview.html

MANAGEMENT

QUALITY

Quality pros have many names for these seven basic tools of quality, first emphasized by Kaoru Ishikawa, a professor of engineering at Tokyo University and the father of “quality circles.”

To ensure consistency and to meet customer satisfaction, organizations implement formal quality management systems as part of their Total Quality Management (TQM) and Advanced Product Quality Planning (APQP) and Control Plan efforts. The system is documented and maintained in accordance to predefined, universally accepted standards (ISO 9001, TS 16949) and managed with the mindset of continually improving. The standard states:

“The organization shall

a) determine the processes needed for the quality man-agement system and their application throughout the organization,

b) determine the sequence and interaction of these processes,

c) determine criteria and methods needed to ensure that both the operation and control of these processes are effective,

d) ensure the availability of resources and information necessary to support the operation and monitoring of these processes,

e) monitor, measure where applicable, and analyse these processes, and

f) implement actions necessary to achieve planned results and continual improvement of these processes.”

Cause-and-effect diagram (also called Ishikawa or fishbone chart): Identifies many possible causes for an effect or problem and sorts ideas into useful categories.

Check sheet: A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes.

Control charts: Graphs used to study how a process changes over time.

Histogram: The most commonly used graph for showing frequency distributions, or how often each different value in a set of data occurs.

Pareto chart: Visually shows which factors are more significant.

Scatter diagram: Graphs pairs of numerical data, one variable on each axis, to look for a relationship.

Stratification: A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”).

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The 7 basic tools of Quality

Adapted from ISO 9001:2008, The International Organization for Standardization, July 15, 2009

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Q4 2014 5Q4 2014 5

The manual introduces and focuses on the five phases of quality planning and illustrates appropriate activities at each of these phases:

Planning and defining the program: Uncover and understand customer needs and expectations

Product design and development: Translate customer needs and executions into feasible and manufacturable products

Process design and development: Develop systems and plans to develop consistent, quality products at estimated cost

Product and process validation: Leverage trial runs to validate the process to ensure long-term production

Feedback, assessment, and corrective action: Evaluate validation outputs and quality planning and make changes as needed

Advanced Quality Planning*

The Advanced Product Quality Planning and Control Plan (APQP/CP) manual was released by Chrysler, Ford, and General Motors in July 1994, to communicate to internal and external suppliers, and to their subcontractors, the product quality planning and control plan guidelines developed jointly by the three automakers. Since that time, the guidelines are used across a variety of industries to ensure an effective holistic quality planning process.

Adapted from Advanced Quality Planning: A Guide for Any Organization, Quality Progress, Feb 1998, Laurence C. Thisse

PHASE | 1

PHASE | 2

PHASE | 3

PHASE | 4

PHASE | 5

APQP/CP

—— WHY IT MATTERS ——

• Competition - Today’s market demands high quality products at low cost.

• Changing customer - The new customer is more demanding about the “quality system.”

• Changing product mix - The shift from low volume, high price to high volume, low price has resulted in a need to reduce the internal cost of poor quality.

• Product complexity – As systems have become more complex, the reliability requirements for suppliers of components has become more stringent.

• Higher levels of customer satisfaction – Higher customer expectations are being driven by increasing competition.

A comprehensive, organization-wide effort to improve the quality of products and services, applicable to all organizations.

Total Quality Management

Adapted from Utkarsh Verma, IT Strategy Architecture Governance at NA Jan 24, 2009 (currently Information Analyst at Axis Bank)

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6 Q4 2014

Utilize Marketing InsightsPACKAgINg INSIDE AND out

we like to keep our lens wide so we can capture stories and information that might seem unrelated, but are in fact relevant.

Two-way dialogueThe HarvestMark Food Traceability App links brands with shoppers in the retail store or at home, delivering a new level of communication and information that can increase brand engagement. Consumers use the app to get the food safety validation they want,

when they want it. In return, they provide real-time feedback to

manufacturers, including retail purchase location, freshness

statistics, and shopper comments. Not only do consumers

benefit from the added reassurance of safety through traceability,

but brands differentiate themselves by building trust and loyalty

through consumer transparency.

The hot & cold factorNetherlands-based Shieltronics has developed microwave-shielding technology that enables heating and re-heating of warm, hot, and cold items within the same package without under- or over-cooking items. The special structure of the two-compartment package saves consumers time by allowing dissimilar foods that require different cooking times, like raw or partially cooked proteins and vegetables, to be microwaved

at the same time while achieving optimal temperatures.

Powerful Marketing and Feedback for Fresh Food, www.harvestmark.com, n.d.

What’s Going On In Packaging For Ready Meals (Part 02), Anton Steeman, www.bestinpackaging.com, 11/21/2013

Q4 2014 7

Global ready meals market growingwhile frozen meals account for the majority of Ready Meal category sales in Europe and the U.S., the chilled segment is projected to experience the fastest growth, igniting a wave of packaging innovation designed to improve preparation speed and optimize food quality.

Speed to shelf

Leading retailers understand that Shelf Ready Packaging means the product can get on the shelf much faster, leaving store staff to spend more time with the customers on the floor. The Cabrio case is a great example in that while it protects product during storage and shipping, it can turn into a retail-ready display with a simple single opening motion. The Cabrio solution is a win-win as it not only benefits the retailer, but can also save brands up to 20% in corrugated material compared to the standard tear-away Regular-Slotted Container (RSC).

Retail-Ready Shipper: Product Of The Day, Lisa McTigue Pierce, www.packagingdigest.com, 4/29/2014

Ready Meals Market Analysis, Market Size, Application Analysis, Regional Outlook, Competitive Strategies And Forecasts, 2014 to 2020, www.grandviewresearch.com, 3/25/2014

According to TechNavio, the Global Ready Meals market is forecasted to grow at a CAGR of 4.25 percent between 2013 and 2018.

Magic in a bottle AquaBall, a naturally flavored, zero-calorie water drink for kids, is free of flavors and sweeteners and comes with a re-closeable lid for on-the-go convenience. while all of that ought to make mom happy, the true appeal of AquaBall lies with its unique round shape and its eye-popping graphics featuring beloved Disney and Marvel characters. The full-body shrink sleeve label that brings the characters to life was made possible with a printing technology called variable Sleeve Offset Printing (vSOP), using high quality PETG shrink film ideal for full-color print. The globe shape of the package challenged the manufacturing team in terms of distortion, but the special film used was able to shrink in a way to allow the label to reach all the way from the bottle’s neck to its base without any pulling at the edges.

Shrink-Sleeve Label Is A Hit With Kids, Pat Reynolds, www.packworld.com, 6/2/2014

It won’t affect us In a global survey of over 400 retail industry CEOs conducted by PwC, 83% believe their retail supply chains are presently ‘not optimal’ for today’s dynamic retail environment. Interestingly, only one in five CEOs (22%) believes that the rise of omni-channel will have a direct impact on their organization. Based on that, it is perhaps not surprising that only 23% reported considering supply chain management as a ‘top priority.’

Retail CEOs Underestimate Omni-Channel Supply Chain Challenges, Tom Ryan, www.retailwire.com, 6/24/2014

8 Q4 2014

INDuStry INSIDEr

walking into a grocery store where everything is packaged in edible, grape-like skins or wraps, with no other containment. You buy what you want, take it home and wash it off like you would an apple. How about picturing yourself in a quick service restaurant where there is no need for you to unwrap your burger – you eat it wrapper and all, and after you finish your drink, you eat the cup too. From soft, edible skins to hard, biodegradable shells, think coconuts or bananas, anything is possible.

Trends in Edible Packaging and Tableware

By Juanita Day

Senior Manager, Sustainable Supply Chain APMEA

Imagine

Q4 2014 9Q4 2014 9

Eating what your food and drink comes in isn’t a new concept. Companies and chefs have been playing with the idea for some time. A decade ago, the Australian company, Plantic, designed a bioresin made from corn starch and colored it with plant-based dyes.

About two years ago, WikiFoods, a small laboratory in Paris, got a lot of attention because its founders invented something designed to change how we eat. They called it WikiCells, an edible packaging technology intended to make plastic-packaging obsolete—or at least optional.¹

At about the same time, a Brazilian fast food chain called “Bob’s” experimented with a burger wrapping made from edible paper, to reduce paper waste headed for the landfill. Although the gastrointestinal wisdom of eating a wrapped hamburger is questionable, there is no denying that this type of packaging could be great for the environment. While it is better for the environment, paper packaging still comes with a carbon footprint and creates unnecessary waste. Edible packaging is biodegradable and compostable, reducing the amount of litter that ends up in a landfill.²

Fast-forward to 2014. Today, WikiFoods technology is being sold at Whole Foods, an American foods supermarket specializing in organic and natural foods. WikiFoods is collaborating with Stonyfield, the New Hampshire purveyor of organic dairy products, to create Frozen Yogurt Pearls. The Pearls use the same soft, thin, and edible packaging that WikiFoods debuted last summer for

their own WikiPearl ice cream balls. Each one wraps a scoop-sized amount of Stonyfield’s frozen yogurt in a coconut, strawberry, or peach flavored packaging. It is a utopian, cradle-to-cradle approach to eliminating waste created from food packaging.

Edible packaging is not without its critics. Some people feel that packaging being edible defeats the whole point of packaging – which is to protect the food from dirt and microbes. Furthermore, there is a psychological barrier that people need to overcome when ingesting dissolving film or plastic. Food safety regulators will be concerned about what is protecting the edible packaging. The number of hands and surfaces food touches on its way to a shop shelf is another obstacle that needs to be overcome. Getting right to the point, if it is decided that any edible packaging must be protected by more packaging, then it becomes self-defeating, to say the least.³

Consumer adoption may remain a challenge for years to come. To minimize people’s fears, one option may

be to design a product that is as fun as it is environmentally friendly.

One approach WikiFood is considering is placing cases of Frozen Yogurt Pearls in fast-casual restaurants like Sweetgreen (the

farm-to-table salad chain that started in Washington, D.C.) so diners can add one or two to their tray of food, for dessert.

So what do you think? Would an edible package work for you?

1 http://www.wired.com/2014/08/high-tech-frozen-yogurt-that-comes-in-edible-packaging/

2 http://inhabitat.com/brazilian-fast-food-chain-cuts-waste-by-serving-up-burgers-wrapped-in-edible-paper/

3 http://www.theguardian.com/lifeandstyle/wordofmouth/2014/aug/05/eat-glass-edible-food-packaging-reduce-landfill-agar

4 http://loliware.squarespace.com/

Eating what your food and drink comes in isn’t a new concept. Companies and chefs have been playing with the idea for some time.

Flavoring the edible glass, for example, to complement the drink so it becomes the twist to a cocktail, or an accent, may be an option to encourage people to make the switch. (Photograph: Loliware4)

10 Q4 2014

A grEENEr PAth

As the drive towards sustainability and “going green” developed into more than a fad in the 21st century, one of the first areas of

focus was on recycling and waste. Consumers recycled more at home, businesses collected glass, plastics and paper, and an increasing number of products were made from recycled materials. Since 2000, the level of recycling in the developed world has increased significantly, and the volume of waste being sent to landfills has reduced on a per capita basis. Yet, there are still opportunities for improvement within the waste stream.

Below are practical ideas for organizations looking to improve waste and recycling streams.

• The most effective way to green the waste stream is to start at the beginning, by examining what components make up a product. Many of today’s consumer goods have been reengineered to be manufactured from recyclable materials without any compromise to product integrity, safety or appeal. Product components such as car parts and bike parts are often made from

recycled materials. Maximizing the use of recycled materials and minimizing the creation of non-recyclable materials in product may seem obvious. It also has the most direct and immediate impact on waste streams.

• Examine what packaging is essential, how much is required for a product, whether or not the packaging can be made from recycled materials and if it will be recyclable itself. Organizations have found, and continue to find, opportunities to reduce packaging and change composition. Once again, the best way to prevent waste is to minimize the creation of materials in the first place. Of course, that does not mean that packaging does not play an important role. Products can be broken and foods can spoil if they are not packaged appropriately, and unusable product can be just as big of a contributor to the waste stream as packaging.

• Conduct an audit of the waste stream. Determine where waste is going and where it is coming from by considering every aspect

By Anthony J. DiIenno

President , Recycling & Waste Solutions, HAVI Global Solutions

Leveraging waste and recycling to be greener

Q4 2014 11Q4 2014 11

of the supply chain and how waste is created and disposed of — from the boxes, pallets and wrap that arrive in facilities from suppliers, to the hangers, food cartons, and check-out/carry-out bags consumers take home. It is possible for an individual organization to be doing a great job of minimizing waste, only to find that suppliers are creating a large waste stream to provide the raw materials required. In today’s world of complete product lifecycle analysis, issues a few levels back in the supply chain are no longer hidden.

• Make it easy for consumers to understand what can and cannot be recycled. Often, product that could be recycled is added to the waste stream, or the wrong product is put in the recycle bin. For example, many consumers don’t recycle Ziploc-type bags because they don’t know that they can. Look for opportunities to put information on the product AND the packaging that makes it clear what parts can be recycled, and how they should be recycled. If for example the product needs to be rinsed before being added to the recycle bin, it should be clearly stated. One innovative way to do this is through the use of logos that consumers can quickly recognize and then recycle as directed. (See an example below) And, as an additional benefit, logos such as these also enhance consumers’ perceptions on the “greenness” of the brand.

• Retailers need to consider the secondary packaging that consumers receive when they order products online. Similar to the product packaging issues referenced earlier, determine if items are being shipped together in as small a package as possible with minimal weight and mostly recyclable packing materials.

how2recycle.in

fo

*Not recycled in all communities

The Recyclability IconIndicates the recyclability of the packaging component

Packaging MaterialIdentifies the material type of the packaging component

Packaging ComponentThe specific part of the package referrenced by the label

Program websiteProvides resources and information on the label, local recyclability and proper recycling

HOw2RECYCLE.INFO

• Organizations should ensure waste haulers and recyclers share their commitment to sustainability. Do they provide a report of the materials collected and recycled, and do they identify opportunities to reduce waste and increase recycling? If not, ask them for assistance or find a partner who will help with these requests. The best waste haulers understand that managing waste is about more than taking away garbage. There are also financial opportunities with recycling and waste as well. Some companies today are partnering with other businesses to combine their recyclables and leverage economies of scale to save money, curb empty miles in waste trucks and generate larger loads.

• Lastly, companies must do a better job informing consumers of the programs in place to increase recycling and reduce waste. Consumers care more and more about the environmental impact of the companies they purchase from, and it is important to communicate the improvements being made. Corporate Social Responsibility reports and website information are good first steps, but much like with marketing products, creativity is key. In-store posters and displays, information on product packaging and social media can all be effective methods for an organization to educate customers and consumers on waste reduction commitments and programs. And include information on how the actions of individual consumers and companies are making a difference.

There is no denying that organizations and individuals have come a long way in the last 20 years in how they manage waste. HAVI Global Solutions is working with companies to help them continue to improve.

12 Q4 201412 Q4 2014

Packaging Technology Integrated Solutions’ proprietary Q2V process offers brands and packagers practical insights and knowledge so they can optimize package concepts that will drive product sales and repurchases.

Through hands-on, multi-sensory processes and research methodologies developed specifically to focus on packaging, Q2V enables brands and packagers to refine packaging design and marketing positioning. Q2V combines quantitative and qualitative insight with observation of consumers interacting with packages so brands and packagers can analyze the entire packaging (as opposed to product alone) use experience, beginning with perception and imagery at point of sale. Packaging Technology Integrated Solutions conducts secondary research to gather and leverage existing knowledge and resources, including its proprietary Consumer Packaging Roadmap research, to help shape the Q2V process. Then, in guided sessions, typically 20-40 consumer respondents per session are invited to first rate the concept they are viewing followed by use of the packaged product, during which they rate attributes of the experience such as ease of opening, storage, dispensing and reclose, aesthetic /attractiveness and transportability.

How do you maximize your chance of success in a product launch? Don’t underestimate the power of a good first and enduring impression. Consumer experience with a

product and by extension, a brand, is intrinsically linked to the product’s packaging throughout their use of the product. Before they taste the chip, apply the sunscreen, spray the perfume or sharpen the pencil, consumers encounter the packaging that protects and promotes these products. Package design and imagery captures their attention, evokes an emotional response, communicates information about the product and influences purchasing decisions. After purchase, packaging continues to play a crucial role in shaping consumer perceptions of a product as it facilitates transport, storage and use of the product as well as end-of-life disposal.

To maximize the appeal of packaging and make a great first and lasting impression, brands and packagers should understand consumer needs. They should consider what consumers believe and perceive to be benefits of packaging, how packaging components can enhance the value of products and which packaging features and attributes drive value perceptions.

VANtAgE PoINt

Packaging’s Impact on Product and Brand Perception

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Packaging’s Impact on Product and Brand Perception

Consumers are asked to share what elements of the experience delight them and if any elements frustrate or annoy them, and why. What other emotions does the experience evoke? While Packaging Technology Integrated Solutions does not ask about the “package,” responses clearly reveal what brands and packagers need to know to guide design refinement and communication. Packaging Technology Integrated Solutions compares consumer perspectives of the overall concept pre- and post-use, in order to determine if the concept is advantaged, disadvantaged, or not at risk based on the package design and experience.

At the end of each session, facilitators gather qualitative consumer feedback through individual or mini-group exit interviews. In this setting, they can explore key issues that arose during the session, ask more pointed questions and uncover the reasons why consumers rated the package the way they did. They can also expose participants to alternative package types, prototypes or features for additional feedback. This kind of diagnostic insight helps brands and packagers refine designs and even hone their product messaging.

The group sessions and exit interviews are recorded so the consumer experience with the packaged product is brought to life on video for developers and brand managers. They are able to see and hear the effect packaging has on consumers and witness the impact these experiences can have on purchasing decisions. Developers can often react to nuances and consumer frustrations that can be addressed through design enhancements.

Packaging Technology Integrated Solutions packaging experts, strategists and designers compile and synthesize all of the data they have gathered throughout the Q2V process and interpret findings through a packaging lens to gain insights that will shape packaging design. They deliver directional and quantitative insights and offer recommendations for implementation to drive good decision making and planning. By understanding the interaction between consumers and packaging – and witnessing consumer reactions to packaged products – brands can design packaging that will appeal to and delight consumers from first moment of truth to repurchase.

14 Q4 2014

INDuStry INSIDEr

How the move towards Extended Producer Responsibility is impacting packaging

By Jennifer McCracken

Director, Sustainability, HAVI Global Solutions

Q4 2014 15Q4 2014 15

Extended Producer Responsibility, or EPR as it is commonly known, is the concept of holding producers responsible for the post-consumer stage of a product’s lifecycle.

It means that when a consumer has used a product, the manufacturer has responsibility for what is left. More often than not, the responsibility is a financial one designed to encourage manufacturers to build the cost of disposal into the product’s price, with a higher burden for the use of heavier packaging or non-recyclable materials. EPR can also involve encouraging product design changes that minimize the potential environmental impact of a product throughout its lifecycle.

EPR has been implemented in Europe and North America with objectives of reducing waste and shifting costs of waste disposal industry. The the question is, what are companies doing to adjust and minimize its impact? Some are challenging the premise of EPR as a panacea to achieve increased packaging waste recycling, while others are focused more on changing the profile of their product containers and packaging to reduce their EPR liability.

Aesthetics and functionality are always important inproduct design. Understanding the full financialimpact of design decisions,including materials, manufacturing, recovery and disposal costs, is critical as well. Manufacturers facing EPR may find it beneficial to increase the levels of recycled materials in their products, reduce the use of materials that may be more difficult to recover (i.e., recycle, compost, derive positive energy value) and potentially find creative ways to reduce packaging overall. While there is no one single solution to managing the impact of EPR, there are steps companies can take to minimize the impact.

A few examples of this include:

• Research and understand what recovery options are available for the packaging in the markets where the product is sold.

• The trend towards bulk self-serve mechanisms as an alternative to the use of single serve packaging, e.g., from ketchup packets to refillable containers in quick- service restaurants.

• Using reusable wooden pallets for shipping that have specific distribution and refurbishing systems in place so that the pallets can be used over and over again.

• Increasing use of bulk packaging, e.g., the increased popularity of bulk products in Costco and Sam’s Club.

• Encouraging reusable / refillable packaging, e.g., refillable hand soaps.

• Reducing use of substances that may be hazardous when disposed of as materials break down over time, e.g. phthalates used as a plasticiser in PVC or vinyl.

• Increasing use of materials that are easily recycled, e.g. cardboard or aluminum, although this needs to be balanced with the weight of the materials which can increase fees and the functionality of the materials.

• Decreasing use of multi-layered packaging and/or using compostable coatings.

Of course there are always exceptions. In the at-home beverage industry, there has been a trend towards single serve beverage systems, and it will be interesting to see how companies that sell these products manage the impact of EPR legislation.

Consumer interest in recycling and company sustainability goals also drives the importance of understanding packaging disposal options. Thus, it is important for organizations to communicate the changes they have made in their packaging. Whether through sustainability reports or through on-pack communications, companies should leverage opportunities to tell consumers about the positive impact they are making on the environment and educate consumers on how they can help.

Product designers have always been focused on functionality (e.g., product protection) and costs. EPR, consumer interest and company sustainability goals increase the focus on what happens to the package after it is used. Understanding the impact design has on disposal options is of growing importance in the packaging sector.

EPr, consumer interest and company sustainability goals increase the focus on what happens to the package after it is used. understanding the impact design has on disposal options is of growing importance in the packaging sector.

16 Q4 2014

From our North America office:The city of Washington DC passed legislation requiring local food establishments to make changes to their packaging set. Food establishments must not use expanded polystyrene after January 1, 2016, and they must switch to recyclable or compostable packaging by January 1, 2018.

Pre-packaged food containers filled and sealed outside of the District of Columbia are exempt.For more inFormation: http://lims.dccouncil.us/ _layouts/15/uploader/download.aspx?legislationid=30722&Filename=B20-0573-committeereport2.pdFpage 89.

From our APmEA office:The United Arab Emirates have notified the World Trade Organization (WTO) that they will release a draft control scheme for materials intended to come into contact with food. According to the notification, the scheme will apply to all food contact materials, except:- materials and articles which are supplied as antiques;- protection or coating materials, such as the materials covering cheese rinds, prepared meat- products or fruits, which form part of the food and may be consumed together with it;- fixed public or private water supply equipment; and- packaging materials which do not directly touch the food. For Further inFormation regarding the notiFication, see the Following link: http://goo.gl/rhwoq2

From our Eu office:The French government is implementing a ban on the use of Bisphenol A (BPA), coming into effect on January 1, 2015. Owing to the debate surrounding BPA, metal packaging manufacturers have started developing BPA-NI (not intentionally added) coating systems, which counter the negative effects posed by BPA.

This new legislation is in addition to the existing European Framework Regulation (EC) No. 1935/2004 which requires that all materials and articles do not transfer their constituents to food in quantities that could endanger human health.For more inFormation: http://www.packaginglaw.com/3751_.shtml

In this section, we ask experts across the world to spotlight one piece of legislation, response to legislation, or industry-driven voluntary guideline our readers should know about. here is what they said:

Spotlight on Legislation

Q4 2014 17

trENDSPottINg

Recycled/renewable materials news

Everywhere you look people are talking about sustainability, recycling and all things green. It is always interesting to see the actual results of all this focus and here are a few examples of the real difference that all this activity can make.

Coca-Cola introduced PlantBottle Technology in 2009 as the first recyclable Bio-PET plastic (bio-polyethylene terephthalate) bottle made partially from plants. Since then, more than 25 billion Plant Bottle packages have reached the market across 37 countries. Coca-Cola’s vision is that all PET will be PlantBottle by 2020.

Kellogg’shas introduced a new renewable pouch for Kashi breakfast cereal which is the first to use post-consumer HDPE resin featuring 15% recycled material.

AB InBEV the introduction in 2012 of its first 100% recycled bottle in Brazil for the Guarana Antartica brand has now lead to annual materials savings of

more than 2,100 tons.

Coca-Cola also continues to improve

their can designs which lead to a weight reduction of

approx. 7%, saving more than 9000 tons of material every year

(vs. 2010).

By Phil Davidson

EU Sustainability Manager, Packaging Technology Integrated Solutions

Source: Leatherhead Food Research 2014.

18 Q4 2014

An InTERVIEW WITH Jocelyne Ehret DIRECTOR PACKAGInG TECHnOLOGY InTEGRATED SOLUTIOnS , HAVI GLObAL SOLUTIOnS

ASK thE EXPErt

This is a very interesting time to be involved in strategic innovation in general, and packaging in particular.

So Jocelyne, tell us about yourself…. Currently I am the Director Packaging Technology Integrated Solutions at HAVI Global Solutions in Europe developing our packaging business as well as leading a wide range of innovative and productivity programs. I originally completed my doctorate in food science with a focus on packaging, innovation, sustainability and food safety. I began my career at Danone as a research scientist in the dairy product and biscuit divisions. I now have more than 20 years of international leadership experience implementing innovations in packaging, consumer goods and food service businesses.

What is the best way for packaging suppliers to align with their clients to ensure a quality final product and flawless execution?

Collaborate to compete. Packaging suppliers must lead and be involved in an integrated and inclusive process during the development stages and most importantly must make sure that there is no ‘silo mentality’. Being aware of the packaging and consumer drivers and their customer’s strategy are important parts of delivering successful execution.

What challenges do brand packaging professionals face?

Ability to transform insight into foresight. The main challenges are maintaining an understanding of the motivational forces behind consum-ers’ actions, thoughts and behaviors, drivers and trends; and recognizing the opportunities that new technology and regulation changes provide.

What are the easiest or most obvious packaging improvements that brands aren’t making yet?

I think that as an industry we are getting much better at balancing between brand identity, design, business and technical elements but I think we need to continually remind ourselves of the necessary balance between using packaging to avoid food waste and using too much packaging to avoid food waste. Also, we need to consider the improvements we can make and the opportunities taking into account the difference between in-store purchasing and on-line buying requirements. For example, in-store/on-shelf visual impact is critical for all brands but on-line purchases will never be seen by consumers (except on a retailer’s website) before they appear via home delivery—simpler, more cost-effective packaging has a part to play here.

Q4 2014 19

we have been working on the joint-development of a new raw material (called VisorCote)...it is 100% recyclable, repulpable and compostable and can also include anti-fungal, anti-microbial properties to help prolong shelf life.

What are the easiest or most obvious packaging improvements that packaging suppliers aren’t making yet?

There has been a lot of buzz around the opportunities that digital printing will bring, particularly regarding personalization. Coca-Cola is running a tremendous campaign for the second time using the most popular first names and this first step towards personalization has been a great success. Packaging suppliers need to build on the buzz by making digital printing options more readily available helping brands to deliver an exciting new chapter in packaging development. This is a good example of how we can use technology to further enhance brands’ engagement with consumers. Digital printing is here to stay and its use in promotions must be social and viral across all platforms.

What is the single most important thing suppliers can do to provide value to their clients, and why?

Suppliers need to show added value at a stable price in a lot of areas but one that HGS is looking at very closely is the opportunity provided by

Packaging has a crucial role to play and, like everything else, needs to evolve or die!

For more from Jocelyne, check out:

‘the Future’s Light’Packaging NewsDECEMBER 2014http://www.packagingnews.co.uk/comment/soapbox/jocelyne-ehret-futures-light/

‘Definition of Sustainability’Packaging and Converting IntelligenceNOVEMBER 2014http://viewer.zmags.com/publication/6eabb928#/6eabb928/12

‘holistic Packaging By Design’Packaging TodayJUNE 2014http://www.packagingtoday.co.uk/features/featureholistic-packaging-by-design-4302062/

‘holistic Design’Packaging EuropeMAY 2014http://www.packagingeurope.com/ InterpackGuide2014/index.html#36

‘A taste of the Future’Packaging TodayMARCH 2014http://www.packagingtoday.co.uk/features/featuretaste-of-the- future-4218348/

new technological developments. For example, we have been working on the joint-development of a new raw material (called VisorCote) which is a new plastic-free barrier coating that can be used on any substrate, on one or both sides of a choice of sustainable or recycled fibre-based packaging materials. VisorCote is 100% recyclable, repulpable and compostable and can also include anti-fungal, anti-microbial properties to help prolong shelf life. It is flexible for a wide range of uses including ambient, chilled and frozen foods, and is ideal for sandwich packs, desserts, pet food, bakery and salads.

Is there anything else you would like to say about your experience or the work you do?

This is a very interesting time to be involved in strategic innovation in general, and packaging in particular. All of the old rules are changing with the advent of new business models, technologies, production methods,

20 Q4 2014

In the NewsBuLLEtIN

A make or Break moment, Store Brands NOVEMBER 2014

Brian Wagner, Vice President,

Consulting Services, Packaging

Technology Integrated Solutions for

HAVI Global Solutions, was featured

in an article about the critical role

packaging plays in marketing store

brands. Brian commented that

“consumers receive over 70 percent

of their information on brands from

packaging” and highlighted retail

leaders that are leveraging packag-

ing to market their products.

E Visit our weBsite to learn more

6 tips on how buying teams should work the show, Packaging Digest OCTOBER 2014

Mike Richmond, Vice President at

Packaging Technology Integrated

Solutions, offered recommenda-

tions for buying teams attending

Pack Expo to help them make the

most of their investment in the show

and ensure they gain several new

ideas and insights. Check out these

six tips for efficiently and effectively

covering the show floor.


Foreign Exchange—how companies handle food waste abroad holds lessons for best practices,Waste360 OCTOBER 2014

Anthony DiIenno, President,

Recycling and Waste Solutions, HAVI

Global Solutions, highlighted waste

management challenges,

including chain of custody,

infrastructure and regulatory issues,

U.S.-based food service companies

are likely to encounter as they

expand their brands globally.


managing the Waste and recycling Supply Chain, Waste Advantage OCTObER 2014

In an article that appeared in Waste

Advantage Magazine, Anthony DiIenno,

President of Recycling and Waste

Solutions at HAVI Global Solutions,

demonstrated how understanding

the entirety of the waste supply chain

and recognizing and responding to

the needs of internal stakeholders

impacted by it can elevate haulers and

recyclers from the role of vendor to

strategic partner.


3 benefits of working with a purchasing partner, Packaging DigestSEPTEMbER 2014

Dan Donofrio, Vice President at

HAVI Global Solutions, demonstrated

how brands that partner with

a managed services provider

specializing in strategic sourcing,

packaging and supply chain

management benefit from much

more than just cost and risk

management. The right partner also

will provide breakthrough thinking,

a global perspective and network

and unmatched breadth of services.


When Less means more, Store BrandsSEPTEMbER 2014

Amy Duquette, Sustainability Project

Manager at HAVI Global Solutions,

offered advice for retailers looking to

boost their store brand packaging’s

sustainability quotient in an article

that appeared in Store Brands.

Amy highlighted the How2Recycle

program and said that using the

How2Recycle logo with store brand

products is helpful to consumers and

demonstrates a retailer’s proactive

approach to sustainability.


Q4 2014 21

On the Road

WasteExpo JUnE 2-4, 2015

LAS VEGAS COnVEnTIOn

CEnTER, LAS VEGAS, nV

The verdict is in—attendees and

exhibitors alike LOVE going to

WasteExpo in the always dazzling

Las Vegas. So, join us in 2015 as we

bring back the solid waste, recycling

and organic’s leading event in full

force. Rest assured, 2015 will be

more fantastic than ever—with more

networking opportunities, some of

the best conference programming

around, and of course, the industry’s

largest exhibit hall packed with more

solutions than ever.

HGS Recycling & Waste Solutions will

be exhibiting at booth #1540.


PrSm2015 National Conference APRIL 27-29, 2015

PEnnSYLVAnIA COnVEnTIOn

CEnTER, PHILADELPHIA, PA

PRSM’s National Conference is the

largest, most widely recognized

facilities maintenance event in the

U.S. and Canada. And, it’s also the

most beneficial opportunity for

face-to-face meetings, creating

connections and garnering an

impressive ROI. With leading

education sessions, hosted

networking programs and the

largest exhibition hall of solutions

providers, this annual event is where

the industry comes together—same

place, same time, same objective:

bigger, better business.

HGS Recycling & Waste Solutions

will be participating at this event as

a silver sponsor and exhibiting at

booth #711.


rFmA Annual Conference FEbRUARY 1-3, 2015

SAn DIEGO COnVEnTIOn

CEnTER, SAn DIEGO, CA

The RFMA 2015 Annual Conference

is your chance to network with the

largest gathering of Restaurant Facility

Professionals and Vendors. It is

the one place where you can share

insights and learn about the newest

products and services restaurant

facilities need to succeed.

Anthony Dilenno, President of HAVI

Global Solutions Recycling & Waste

Solutions, HAVI Global Solutions will

present the session: Are You Throwing

Away Your Brand with the Trash?

Managing Waste Streams to Mitigate

Risk and Uncover New Opportunities.

HGS Recycling & Waste Solutions

will be participating at this event as

a silver sponsor and exhibiting at

booth #900.


22 Q4 201422 Q4 2014

ChALLENgE

Abruptly and without warning, a major U.S. supplier of disposable cutlery and drinking straws announced its bankruptcy and the planned closure of its domestic manufacturing facilities. Its customers, including Packaging Technology Integrated Solutions, a HAVI Global Solutions, LLC, company, for whom it was the largest supplier by share in the straw category, were suddenly challenged to find capacity, maintain supply and avoid business interruption for their customers. The struggling supplier offered to maintain supply for three months if its entire customer base would agree to a significant price increase. If not, it would cease production immediately. Customers had a small window of time in which to consider the supplier’s offer and respond. Packaging Technology Integrated Solutions needed to quickly identify alternative suppliers and present options and a recommendation to its customers, which included several quick service restaurant (QSR) chains.

oVErVIEWwhen a large supplier abruptly announced its bankruptcy and closed its plants, Packaging Technology Integrated Solutions leveraged its vast network and strong relationships with other suppliers to secure additional capacity, prevent disruption to supply and minimize the financial impacts to its customers.

Successfully navigating a supplier bankruptcy

CASE StuDy FoCuS

Packaging Technology Integrated Solutions is a division of HAVI Global Solutions (HGS). In this section, we share information we think might be helpful to you from other areas of our business - beyond our Packaging work.

Beyond Packaging Global SCM BPO Market 2014-2018 lists HGS as prominent SCM BPO vendor HAVI Global Solutions is listed as a prominent SCM BPO vendor in the Global SCM BPO Market 2014 - 2018 report, prepared by global technology research and advisory company Technavio. The report covers market segmentation based on geography, the market landscape and its growth prospects in the coming years, and highlights leading vendors in the market.


Q4 2014 23Q4 2014 23

throughout the entire process, Packaging technology Integrated Solutions kept its customers informed and responded to their questions and concerns.

No DISruPtIoN IN SuPPLy Packaging Technology Integrated Solutions leveraged its vast supplier network to find capacity and minimize the potential for disruption in supply for its customers.

mINImAL CoSt ImPACtS - Packaging Technology Integrated Solutions negotiated fair pricing for its customers and helped them avoid significant financial impacts to their business despite the increased demand for capacity and reduced supplier market. The consultants also were able to work with suppliers to negotiate a more favorable cost position for product in the long term.

QuICK EXECutIoN Because of the long-term positive relationships it had cultivated with suppliers, Packaging Technology Integrated Solutions had a first seat at the table and was able to reserve supply and quickly negotiate contracts on its customers’ behalf.

BENEFItS

SoLutIoN

Packaging Technology Integrated Solutions, a leader in packaging solutions and merchandising planning and promotions management, with deep expertise in the QSR and food service markets, notified its customers, including a leading global QSR chain with thousands of retail locations, of the situation and the steps it was taking to mitigate its customers’ risk. Packaging Technology Integrated Solutions recommended that its customers forgo the faltering supplier’s offer and pursue capacity elsewhere; however, because the bankrupt supplier was so large and provided product to so many QSRs, the need for capacity was great and competition for suppliers that could meet demand was suddenly very high.

Working tirelessly on its customers’ behalf, Packaging Technology Integrated Solutions leveraged its large network of existing suppliers and the strong relationships it had established with them through the years to identify capacity, reserve supply and negotiate contracts quickly. Packaging Technology Integrated Solutions was able to do this with minimal cost impact to customers and in some instances, was able to actually negotiate a better rate due to the increased share of business suppliers secured. Throughout the entire process, Packaging Technology Integrated Solutions kept its customers informed and responded to their questions and concerns.

As a result of Packaging Technology Integrated Solutions’ vast connections, long-standing relationships and goodwill with suppliers, and swift efforts in response to a major supplier’s unexpected closing, its QSR customers did not experience any disruption to their businesses and consumers had plenty of straws for their soft drinks.

Traceability Isn’t Just for Safety; It’s a Competitive Advantage

material handling & logisticsScott Saunders, Senior Vice President, Supply Chain Integration, Analytics & Supply Chain Services, and Tommy Daigle, Supply Chain Integration Project Manager, Analytics & Supply Chain Services, at HAVI Global Solutions, discuss the benefits of traceability and the steps necessary to incorporate and maintain a holistic approach in the supply chain, in an article published in Material Handling & Logistics.


what’s New? Logistics

Store BrandsIn Logistics: Special Report, Steven Rodgers, Vice President of Business Development at HAVI Global Solutions discussed the latest technology available that could help retailers increase supply chain efficiencies and offered advice on how retailers with store brand programs can leverage these advances for supply chain optimization.


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