SUSTAINABLE PACKAGING - MULTIVAC · Jack Ampuja, president of Supply Chain Optimizers, an industry...

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C onsumers usually get what they want and what they want is sus- tainable packaging. In a recent consumer survey, 77 percent of respon- dents said sustainability was important or very important when deciding what food products to purchase.* Grocers such as Walmart, Kroger, Target and Wegmans took notice. Walmart, which holds 25 percent of the U.S. grocery market, called for reducing emissions from the production and use of the products they sell by 1 gigaton (1 billion metric tons). Now their suppliers are rated according to The Sustainability Index and they developed a Sustainable Packaging Playbook for brand-owner vendors, private-label manufacturers, and packaging suppliers. Kroger set a goal of zero waste by 2020. Target an- nounced it would eliminate polystyrene from brand-owned packaging by 2022. Wegmans is focused on reducing the amount of virgin materials made using nonrenewable fossil fuels. Consumers are shopping online for groceries in increasing numbers, despite meat shipments arriving in Styrofoam boxes and ice packs. Growth in this seg- ment has already taken a toll on brick and mortar grocers. Amazon’s recent purchase of Whole Foods is expected to ramp up market disruption. Processors need to be prepared to accommodate the needs of this growing segment. “As e-commerce grocery shopping continues to grow, packaging is going to change,” says Eva Almenar, Ph.D., Associate Professor at Michigan State University’s School of Packaging. “This is where we might see intelligent packaging (sensitive to temperature change) grow.” Processors look for bottom-line benefits while satisfying eco- conscious consumers and retailers SUSTAINABLE PACKAGING SPECIAL REPORT *2014 Issues Trend Tracker Survey

Transcript of SUSTAINABLE PACKAGING - MULTIVAC · Jack Ampuja, president of Supply Chain Optimizers, an industry...

Page 1: SUSTAINABLE PACKAGING - MULTIVAC · Jack Ampuja, president of Supply Chain Optimizers, an industry consulting firm, finds it’s a challenge to get processors to focus on the impact

C onsumers usually get what they want and what they want is sus-tainable packaging. In a recent

consumer survey, 77 percent of respon-dents said sustainability was important or very important when deciding what food products to purchase.* Grocers such as Walmart, Kroger, Target and Wegmans took notice.

Walmart, which holds 25 percent of the U.S. grocery market, called for reducing emissions from the production and use of the products they sell by 1 gigaton (1 billion metric tons). Now their suppliers

are rated according to The Sustainability Index and they developed a Sustainable Packaging Playbook for brand-owner vendors, private-label manufacturers, and packaging suppliers. Kroger set a goal of zero waste by 2020. Target an-nounced it would eliminate polystyrene from brand-owned packaging by 2022. Wegmans is focused on reducing the amount of virgin materials made using nonrenewable fossil fuels.

Consumers are shopping online for groceries in increasing numbers, despite meat shipments arriving in Styrofoam

boxes and ice packs. Growth in this seg-ment has already taken a toll on brick and mortar grocers. Amazon’s recent purchase of Whole Foods is expected to ramp up market disruption. Processors need to be prepared to accommodate the needs of this growing segment.

“As e-commerce grocery shopping continues to grow, packaging is going to change,” says Eva Almenar, Ph.D., Associate Professor at Michigan State University’s School of Packaging. “This is where we might see intelligent packaging (sensitive to temperature change) grow.”

Processors look for bottom-line benefi ts while satisfying eco-conscious consumers and retailers

SUSTAINABLE PACKAGING

SPECIAL REPORT

*2014 Issues Trend Tracker Survey

Page 2: SUSTAINABLE PACKAGING - MULTIVAC · Jack Ampuja, president of Supply Chain Optimizers, an industry consulting firm, finds it’s a challenge to get processors to focus on the impact

The MULTIVAC survey showed the consid-erations most important to processors were maintaining production output (78%), pack-age design aesthetics (57%), positive ROI in less than 18 months (36%) and positive ROI in 18–24 months (29%).

WHAT IS SUSTAINABLE PACKAGING?The Sustainable Packaging Coalition defines a sus-tainable package as one that is sourced responsibly, is designed to be effective and safe throughout its life cycle, meets market criteria for performance and cost, is made entirely using renewable energy, and once used, is recyclable.

Dr. Almenar’s definition further emphasizes shelf life. “A sustainable package is one that ex-tends the life of the product,” she says. “It takes into account the goal of eliminating waste because to waste the product is to waste all of the energy and resources needed to get that product to market.”

“You can reduce the amount of packaging, or recycle it, but if you don’t take into account the need to protect the product, you are probably not going to make a good decision.” says Bob Lilienfeld, senior director, Communications & Outreach, for AMERIPEN (American Institute for Packaging and the Environment).

PROCESSORS TAKE ON SUSTAINABILITYWith the large amount of resources it takes to pro-duce beef, pork, and poultry, processors are under pressure from environmentalists, consumers, gov-ernment, investors and retailers to improve sus-tainability. The nation’s largest processors, includ-ing Tyson Foods, ConAgra Foods, and Smithfield Foods, have made commitments to reduce green-house gases (GHG) across their entire value chain.

Packaging is just one piece of the sustainability puzzle, but it’s an important one. A MULTIVAC survey of processors revealed that 78 percent of respondents have sustainability goals related to packaging. However, the meat and poultry indus-try still has a lot of room for improvement.

Jack Ampuja, president of Supply Chain Optimizers, an industry consulting firm, finds it’s a challenge to get processors to focus on the impact a package has on the supply chain.

“Packaging is too removed from operations,” says Ampuja. “Companies who are successful at sustainable packaging involve marketing, manu-facturing, quality, and logistics in decisions.”

“Creating sustainable packaging is complex and there is no one solution that fits all,” says Ashley Spokowski, senior packaging engineer for innova-tion at Smithfield Foods. “Though there are cases where sustainable packaging can have a positive cost impact, it can also have a negative one. Some renewable materials are not readily available and come at a higher cost.”

SPECIAL REPORT

Source: 2017 MULTIVAC survey of Meatingplace subscribers

78%of processors have

sustainability goals for packaging

In addition to increasing shelf life and sustainability, vacuum skin packaging can accentuate the perceived quality and value of the product.

AMERIPEN supports a life cycle approach to maximize system performance for the entire product-package system. “A lifecycle approach forces you to think about the expectations, costs and benefits for the other parts of the supply chain,” says Lilienfeld. “For retailers, packaging is not as big a consideration as the real cost of throwing away product they paid for.”

TOP REASONS for Sustainability Initiatives Among Processors

•  Importance to consumers

•  Concern for the environment

•  Competitive pressure

Source: 2017 MULTIVAC Survey of Meatingplace subscribers

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An increasing number of processors are asking their MULTIVAC sales advisors about machines with energy- and water-saving features. Smithfi eld Foods went the next step to optimize packaging lines at its Peru, Ind., facility by converting from three older machines to one high-volume R535 MULTIVAC machine.

“We’re generating 20,000 fewer pounds of plastic fi lm waste per year,” says Smithfi eld’s Spokowski. “With less equipment to wash, we also decreased the amount of water and chemicals needed.” The project saves the plant $717,500 annually.

Older MULTIVAC machines can be retrofi tted to replace pneumatic lifting systems with more effi cient electric-servo systems. “With this step and other optional solutions energy requirements can be reduced up to 25 percent,” says

MULTIVAC’s Schmid. A line of fully electrical machines (R085 e-concept, R105

e-concept) eliminate the need for water and compressed air. “We also have customized solutions that can

reduce cooling water requirements up to 75 percent and the required fi lm per package as much as 15 percent,” she says.

E-concept machines eliminate the need for water and compressed air.

Consider removing duplicate packaging such as an overwrap. Right-size the shape of the package to better fi t its contents and reduce material.

Johnsonville Sausage transitioned from a rectangular-shaped polystyrene tray for its fresh bratwurst and Italian sausages to a tray that contours to mimic the shape of the sausages. This slight change resulted in 6 percent less packaging being used in each tray and an annual decrease of 120,000 pounds of packaging material.

“We were surprised by the total reduc-tion we saw by the end of the year,” says Dave Nicholsen, R&D packaging coordina-tor for Johnsonville Sausage. “It was defi -nitely a win-win.”

In 2016, a Smithfield Foods facility in Middlesboro, Ky., downgauged the fi lm used for ham steaks and is now using 23 percent (109,000 pounds) less plastic. According to Ashley Spokowski, senior packaging engi-neer for innovation at Smithfi eld Foods, this resulted in a material savings of $110,000 per year.

One simple change to improve sustain-ability is to avoid a paper label and go with pre-printed fi lm. “A print registration module is a very easy retrofi t for existing machines,” says Matt Malott, vice president of Sales and Marketing for MULTIVAC. “We can accommodate both net weight and random weight applications.” Random weight applications would require a check weigher and printer all of which could be fully integrated into the complete pack-aging line and managed through a central HMI (human machine interface).

Johnsonville’s most recent packaging advancement includes using the fi rst-ever North American fresh meat polystyrene foam tray (EVOK) which contains 25 per-cent recycled material. The company estimates this will reduce the greenhouse gas-es it generates by 15 percent compared to the former trays.

Materials commonly accepted for recycling include Polyethylene terephthalate (PET), a plastic, paper and cardboard. Avoid paper labels on plastic packaging and adhesives that are not water soluble. Choose a recy-clable alternative to wax coating on corrugated boxes. Allen Harim, a poultry processor, has increased recy-cling of corrugated cardboard as much as 95 percent by using alternative coatings.

“Managers should be cognizant of how recycled ma-terial infl uences the packaging machine’s overall reliabil-ity,” says Natalie Schmid, MULTIVAC’s product market manager for Thermoforming. “Recycled packaging ma-terial is more abrasive and can adversely infl uence the lifetime of cutting units, which can cause higher equip-ment operational life costs.”

Redesign Package to Use Less Material

Increase the Use of Recycled Materials

Use Efficient Packaging Equipment

Skip the Label

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STRATEGIES FOR SUSTAINABILITY

es it generates by 15 percent compared to the former trays.

Johnsonville’s contoured polystyrene foam trays (EVOK) are made of 25% recycled material and use 6% less packaging material vs. a rectangular tray.

A line of fully electrical machines (R085 e-concept, R105 e-concept) eliminate the need for water and compressed air.

“We also have customized solutions that can reduce cooling water requirements up

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SPECIAL REPORT

us.multivac.com

Processors have many options when it comes to sustainable packaging. Finding the right solution requires a careful analysis of the positive and negative consequences up and down the supply chain. Involving representatives from lo-gistics, marketing, manufacturing, and quality, as well as key vendors, will ensure you have all the information you need to make the best decision. More often than not, what’s good for the planet is also good for business.

Your MULTIVAC sales advisor will insure the most sustainable package configuration can be produced efficiently. A reliable

packaging system ensures accurate and reproducible specifications with tight tolerance.

Consult your MULTIVAC trusted sales advisor when making packaging design changes.

“Compared to foam trays with overwrap, tray sealers are a good solution for im-proved sustainability while still delivering a high amount of flexibility,” says Schmid. While similar in cost, when you factor in smaller inbound case cubes, packaging machine throughput, reduced leakage rates and extended shelf life that reduces spoilage, tray-sealing wins out.

An even better solution is MULTIVAC Thermoforming equipment that forms the package in-line, fills and seals it. The shelf life can be between 11-23 days com-pared to just three days for foam trays with overwrap. “Depending on the pack-age configuration, freight and warehous-ing expenses, pre-formed trays could cost two to three times that of a thermo-formed package solution,” says Schmid.

STRATEGIES FOR SUSTAINABILITY (CONTINUED)

Improve Shelf Life and Reduce Volume

5 Modified Atmosphere Packaging (MAP), with its rigid, gas-impermeable tray and hermetically sealed lid of clear film also extends shelf life. During pack-aging, nitrogen, oxygen and carbon diox-ide are removed. A mixture of 80 percent oxygen and 20 percent carbon dioxide is commonly added to case-ready meats, giving the meat a shelf life of up to 11 days. MAP packaging with a mix of high-er nitrogen and carbon dioxide, with very low residual of oxygen, can more than double the shelf life of a high-oxygen mixture package. MULTIVAC advisors can help determine the best gas mixtures for specific applications and the level of re-sidual oxygen needed.

Flexible materials such as skin films and vacuum packaging can also reduce your carbon footprint. This is due to both in-creased shelf life and reduced food waste. A vacuum-skin package has a shelf life of 16 days, compared to 6 to 11 days for a common MAP package. Food waste from production, distribution, retail and end-of- life disposal for a vacuum-skin package is 75 percent less than a MAP package.*

Vacuum-skin packaged products also reduce transportation costs. “One of the most sustainable options available for meat today is vacuum-skin packaging,” says Dr. Eva Almenar, associate profes-sor, Michigan State University School of

Focus on Secondary Packaging, Shipping and

Storage Costs

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Secondary and transport packaging provides another opportunity to reduce environmental impact. At Allen Harim, managers reviewed every single box and resized products into smaller containers to help reduce the paper going into land-fills. “We are transitioning from a box and lid combination to a bliss box,” says Tim Thomas, director of transportation and strategic sourcing at Allen Harim. “This new design is a better-engineered con-tainer that uses less cardboard.”

“Companies tend to design the mas-ter box for internal reasons,” says Supply Chain Optimizers’ Ampuja. “They look for something that will fit the production line or is easy to pack.” Instead, he suggests they design a box for efficiency in the supply chain.

FINDING SUSTAINABLE SOLUTIONS

“One of the most sustainable options available for meat today is vacuum-skin packaging. It is space-saving, so you are not transporting air, just product.”—Eva Almenar, Ph.D., Associate Professor, Michigan State University School of Packaging

Packaging. “It is space-saving, so you are not transporting air, just product. You can reduce the amount of materials because the tray can be tiny and you can put more packages together when shipping.”

*Source: How Packaging Contributes to Food Waste Prevention, Denkstatt, 2017