Beverage packaging: Winn-Dixie launches NFL’s first co-branded bottled water

-- Packaging Digest, 9/10/2010 12:06:26 PM

Winn-Dixie Stores, Inc. and the Jacksonville Jaguars announced the launch of the NFL’s first co-branded bottled water. Sporting the Jaguars’ team logo on a teal label, the “official bottled water of the Jags” will be the only water sold at EverBank Field and is available in all Winn-Dixie and SaveRite stores in Northeast Florida and Southeast Georgia.


“As the official grocery store of the Jaguars, Winn-Dixie is proud to provide football fans with access to exclusive products and programs that enhance the NFL game day experience,” said Dan Portnoy, Winn-Dixie’s chief marketing and merchandising officer. “We are excited to introduce this locally produced product and think it’s an excellent way for Jaguars fans to show their team spirit – both in the stadium and around Jacksonville.”

Bottled in Silver Springs, Fla., Winn-Dixie/Jaguars bottled water is available in 24 packs of 16-ounce bottles for $3.99 in stores. It will be sold in 24-ounce bottles for $3 inside the stadium, a price that is $1 less than the bottled water sold in previous seasons.

The water comes from the deepest source of drinking water in the Southeast, the Floridian Aquifer, and is bottled under certified kosher standards. The bottles are recyclable and use less plastic than most national brands, making them 50 percent lighter, reducing the amount of plastic in the environment.

“Winn-Dixie’s sponsorship continues to provide us the support we need throughout the season,” said Wayne Weaver, chairman and CEO of the Jacksonville Jaguars. “Winn-Dixie plays a vital role in making each home game a great experience for our team and our fans, and we look forward to the season ahead of us.”

SOURCE: Winn-Dixie

Do corporations really want to go Green?

U.S. consumers and Fortune 1000 executives skeptical about corporate commitment to sustainability

Packaging Digest

U.S. consumers and Fortune 1000 executives doubt there is widespread commitment to “go green” among corporate America, according to the 2010 Gibbs & Soell Sense & Sustainability Study released today.

The study was conducted online in July 2010 by Harris Interactive among 2,605 U.S. adults and 304 Fortune 1000 executives on behalf of Gibbs & Soell, a global independent public relations firm with communications expertise in advanced manufacturing, energy, greentech, and sustainable industries. Key findings include the following:

* Corporate America has embarked on its journey toward sustainability, but still draws public skepticism. Only 29% of executives and 16% of consumers believe that a majority of businesses (“most,” “almost all,” or “all”) are committed to “going green” – defined as “improving the health of the environment by implementing more sustainable business practices, and/or offering environmentally-friendly products or services.” Many executives (54%) and consumers (48%) believe only “some” businesses are committed to “going green.”

* Financial inefficiency, market reluctance and unclear measurement are impeding the path to corporate sustainability. Executives cite insufficient return on investment (78%), consumers’ unwillingness to pay a premium for green products or services (71%), and difficulty in evaluating sustainability across a product life cycle (45%) as the top barriers to more businesses “going green.”

* Shared duties reflect the nascent stage at which many businesses are organizing their human capital around a sustainability strategy. While more than two-thirds of executives (69%) indicated their companies have people responsible for sustainability or “going green” initiatives, most have merely added responsibilities for green efforts to the primary duties of a team of individuals (35%), or a C-suite or another senior level position (15%). Only about one in 10 say they have a C-suite or other senior level title/position dedicated solely to sustainability (12%), while 31% noted there is no one at their organization who is primarily or partially responsible for green initiatives.

Founded in 1971, Gibbs & Soell develops and implements communications strategies to engage consumer and business audiences across a broad array of industries. Its rich history includes successfully launching and guiding the growth of green products and technologies, manufacturing processes and business practices, including energy-efficient building systems, nature-based plastics and chemicals, biofuels, water conservation, and plastics recycling.

“This general skepticism about the corporate commitment to environmental stewardship represents a critical communications challenge for business leaders,” stated Ron Loch, senior vice president-greentech and sustainability practice, Gibbs & Soell. “Closing this credibility gap is going to require actions and communications that connect with key stakeholders. Having a dedicated staff and line item budget for green initiatives is an important step in making believers of employees, customers, and investors. For connecting with consumers, it means transparency and consistency of message.”

“There is a wealth of evidence indicating the business value of pursuing sustainability. This study highlights the need for chief executives to evaluate the messages they are sending and to equip themselves with a communications strategy that addresses their organization’s full range of stakeholders in order to chart a more direct path toward sustainability and business growth,” Loch said

Packaging materials: US microwave packaging market to reach US$2.5 Billion by 2015, says report

Packaging Digest, 6/14/2010
Having witnessed deceleration in its growth over the last few years, the US market for microwave packaging is expected to reach US$2.52 billion by 2015. Growth in the short to medium term period will be driven by factors such as the trend towards take-home and packaged convenient frozen foods, increasing popularity of microwaveable foods and innovation in product offerings.

Consumers’ desire for food solutions, which are quick, efficient, time saving, and designed to simplify an elaborate food preparation, has been long driving technology developments in consumer electronics geared towards delivering the utmost level of convenience.

Microwave ovens, which during 1970s, invited lot of skepticism from wary skepticism by wary consumers unwilling to sacrifice quality, flavor or taste of foods, is today an indispensable part of every American household. The massive levels of market penetration witnessed for this consumer appliance, over the years, is the result of continued incremental improvements made in microwave technology. Against this backdrop, microwave packaging too has developed into a highly accepted and convenient packaging technology.

Growth in the US microwave packaging market has been decelerating over the last few years due to the trickle down effect of the tough business environment in the upstream packaging industry. Recession induced trends, such as reduced investments on new microwave packaging machinery and equipment, and lesser availability of financial resources for research and development have stifled innovation in this industry. However, with the recession at its tail’s end, a quick resurgence of growth is on cards, as companies start re-investing in technology development and new applications.

This represents a critical trend for the market’s inherent growth, given that packaging for microwaveable foods is extremely innovative and targeted to meet specific consumer requirements and unique food processors’ needs. Although, the performance of microwave packaging market for the years 2008 and 2009 has been quite lethargic, the trend towards take home food packaging has been the saving grace. Take home foods especially in the frozen foods category has been witnessing resilient growth against a backdrop of compromised consumer spending on consumer-packaged goods (CPG).

Microwave Packaging: A US Market Report
As stated by the new market research report on the US Microwave Packaging market, the frozen foods market has been the largest end-use segment for microwave packaging, contributing a share of about 57.83% in the total market revenue for the year 2009, while the fresh prepared foods market, remains the fastest growing end-use segment over the analysis period 2007-2015. By product type, microwavable foldable cartons and Trays have been the most prominent product segments.

Key players in this marketplace include American Packaging Corporation, Ampac Packaging, LLC, Associated Packaging Technologies, Inc, Amcor Limited, Bemis Company, Inc., Berry Plastics Corporation, E. I. Du Pont De Nemours And Company, Graphic Packaging Holding Company, Huhtamaki Oyj, Mullinix Packages, Inc., Packaging Concepts Inc., Printpack Inc., Rock-Tenn Company, Fold-Pak, Rexam Plc, Sealed Air Corporation, Silgan Holdings, and onoco Products Company among others.

The report titled “Microwave Packaging: A US Market Report” announced by Global Industry Analysts, Inc., provides a review of noteworthy market trends and growth drivers. The report in addition also enumerates product introductions, recent acquisitions, and other strategic industry activities. The report offers latent demand estimates and projections in value sales (in US$ million) for the US Microwave Packaging market by product segments, such as, Trays, Folding Cartons, Cups, Tubs, & Bowls, Bags & Pouches, Sleeves and Others and by Packaging Application such as Fresh Prepared Foods, Frozen Foods, Shelf-Stable Meals and Others.

For more details about this market research report, please visit –
http://www.strategyr.com/Microwave_Packaging_Market_Report.asp

SOURCE: Global Industry Analysts, Inc.

CEO study: Sustainability is critical to success

John Kalkowski -- Packaging Digest, 7/1/2010 3:56:00 PM

In spite of the recent economic downturn, an overwhelming majority of corporate CEOs-93 percent-say sustainability will be critical to the success of their companies. Furthermore, CEOs believe a tipping point could be reached within a decade that fully meshes sustainability with their core business.
These are among the key findings of a survey of 766 CEOs around the globe recently released by the United Nations Global Compact and Accenture. In addition to an online survey, the study included interviews with 50 CEOs.
According to the study, 80 percent of CEOs say the economic downturn has raised the importance of sustainability. As businesses address the financial crisis, sustainability is being recognized as a source of cost efficiencies and revenue growth. Additionally, many companies view sustainability as a critical element in driving growth in new markets.
The survey indicates that in 2010, businesses are taking sustainability more seriously. In a similar 2007 survey, 50 percent of respondents said that sustainability issues had become part of their company's strategy and operations, while that number jumped to 81 percent this year.
CEOs say several conditions must be met before sustainability can be fully integrated into a company's core business, including:
• Shaping consumer tastes to build a stronger market for sustainable products.
• Training management, employees and the next generation of leaders to deal with sustainability issues.
• Communicating with investors to create a better understanding of sustainability's impact.
• Measuring performance on sustainability.
• Working with governments to shape clearer regulation and create a level playing field.
According to the survey, 72 percent of the respondents identified three corporate attributes -brand, trust and reputation-as the primary considerations for acting on sustainability.

Sustainable packaging: Novelis to invest $15 million in aluminum recycling expansion in Brazil

-- Packaging Digest, 5/24/2010 12:04:29 PM
Novelis do Brasil Ltda., a subsidiary of Novelis Inc. announced that it has begun work on a US$15 million expansion of recycling capacity at its integrated aluminum rolling and recycling complex in Pindamonhangaba, Sao Paulo.

The investment will include the addition of two new furnaces and related improvements, which will increase the plant's capacity to recycle used beverage cans and other aluminum scrap by one third to 200,000 metric tons per year. The expansion will allow a nearly 20 percent increase in sheet ingot production to feed the plant's rolling mills. The new equipment is expected to come on stream in the spring of 2011.

"Improving our ability to recycle metal and manage our molten metal flow allows us to increase production of rolling ingot for our mills and reduces the need to purchase ingot from external parties," said Alexandre Almeida, senior vice president of Novelis Inc. and president, Novelis South America. "The overall effect is a more efficient operation to help us respond to our customers' needs."

Novelis is Brazil's leading producer of flat rolled aluminum products and its largest recycler of beverage cans, processing approximately 8 billion cans in 2009. The aluminum can is an environmental success story in a country where the recycling rate is currently estimated at better than 91 percent, placing Brazil among the world leaders in beverage can recycling.

Novelis' assets in Brazil include primary aluminum units in Aratu (BA) and Ouro Preto (MG), aluminum rolling operations in Pindamonhangaba and Santo Andre (SP), and nine hydropower plants located throughout the State of Minas Gerais. For more information on Novelis in Brazil, visit www.novelis.com.br.

SOURCE: Novelis

New study provides life cycle inventory data for recycled PET and HDPE packaging

The National Association for PET Container Resources (NAPCOR) announced the release of a new study that provides life cycle inventory (LCI) data for recycled polyethylene terephthalate (PET) and high density polyethylene (HDPE) plastic resins. The study’s LCI report indicates that incorporating recycled PET resin in the manufacture of a package significantly reduces the environmental footprint of that package in terms of production energy required and greenhouse gas emissions.

“This is long-sought-after information for companies that want to include environmental sustainability as one of the ways in which they evaluate their product package options,” said Tom Busard, NAPCOR Chairman and VP Global Procurement and Material Systems for Plastipak Packaging. “There’s no true sustainability without recycling, and this new study confirms and quantifies the environmental benefits of recycling PET. We’re seeing more customers requesting LCIs in order to do Life Cycle Assessments (LCAs) so that they can more accurately understand the sustainability profiles of their packaging.” LCAs consider the complete life of a product or package, including the raw materials, manufacturing, and end of life.

Dennis Sabourin, NAPCOR Executive Director, added, “This is a scientific approach and provides an excellent tool for making informed decisions.” Sabourin went on to emphasize that the sustainability profile and analysis for the PET package must not only take into account its recyclability, and the increasing use of recycled PET resin content in new packaging, but also PET’s inherent performance characteristics: lightweight; shatter-resistant; safe; able to preserve taste and other product characteristics on-shelf; and its suitability to be made significantly lighter without sacrificing performance for a variety of product applications. Fundamentally, packaging exists in order to effectively deliver a product while preserving that product’s quality in a safe, cost effective, and sustainable manner.

The new LCI study was conducted by Franklin Associates, Ltd. and sponsored jointly by NAPCOR, the American Chemistry Council (ACC), the Association of Postconsumer Plastic Recyclers (APR), and the PET Resin Association (PETRA). Using life cycle inventory (LCI) methodology, the study determines and quantifies the energy requirements, solid wastes, and atmospheric and waterborne emissions for the processes required to collect postconsumer PET and HDPE packaging, sort and separate the material, and reprocess it into clean recycled resin.

Based on study results, as well as U.S. EPA and Energy Information Administration (EIA) data, the total amount of PET post consumer containers recycled in 2008, if reclaimed in the U.S., would require approximately 30 trillion Btu less energy than the amount of energy that would be required to produce the equivalent tonnage of virgin PET resin; this is equivalent to the annual energy use of 317,000 U.S. homes. The corresponding savings in greenhouse gas (GHG) emissions is 1.1 million tons of CO2 equivalents, an amount comparable to taking 189,000 cars off the road. For a single pound of recycled PET flake, the energy use required is reduced by 84%; the GHG emissions, by 71%.1

Sabourin said, “We believe it extremely important for industry to cooperate with government and non-government agencies by using transparent methodologies and peer review protocols. This LCI report is extremely detailed and comprehensive in its scope; it gives our customers – and ultimately the consumer - confidence that they are making decisions based on good information.”

The new study’s findings are captured in “Final Report – Life Cycle Inventory of 100% Postconsumer HDPE and PET Recycled Resin from Postconsumer Containers and Packaging,” which is available on the sponsor organization web sites, including NAPCOR’s PET Sustainability page, http://www.napcor.com/PET/sustainability.html.

Information from the new study will soon be added to the U.S. Life-Cycle Inventory Database. A project of the U.S. Department of Energy and its National Renewable Energy Laboratory (NREL), this is a publicly available database that allows users to review and compare analysis results, http://www.nrel.gov/lci/about.html.

Founded in 1987, the National Association for PET Container Resources (NAPCOR) is the trade association for the PET plastic industry in the United States and Canada. NAPCOR is committed to being the credible voice and champion of the PET packaging industry; to facilitate solutions to PET recycling; and to communicate the benefits of PET as an environmentally sustainable package. www.napcor.com


1. Calculations are based on the volume of clean postconsumer PET flake produced from bottles recovered in the U.S. in 2008 (see http://www.napcor.com/PET/pet_reports.html), and the energy required to collect, sort and domestically reprocess, to flake, the tonnage of plastics containers recovered.

SOURCE: The National Association for PET Container Resources (NAPCOR)

91% of shoppers will keep buying store brands after recession ends

Private Label Manufacturers Association says store brand growth will continue
-- Packaging Digest, 6/29/2009 3:34:00 PM
New consumer polling data shows that an overwhelming majority of U.S. supermarket shoppers will continue purchasing store brand products after the recession is over.

A poll conducted this month by GfK Custom Research North America for the Private Label Manufacturers Association reports that 91% of shoppers say they will keep buying store brand products after the recession ends. Conversely, only 8% of the consumer polled said they will stop buying these products.

The quality of store brand products is a big factor in convincing shoppers to keep buying them. The GfK poll found that 9 of every 10 shoppers agree that the store brand products they buy are just as good as, or better than, national brand products.

This positive experience makes shoppers eager for an even greater assortment of store brand products from which to choose. Nearly half of consumers polled said they wanted their supermarket to carry a greater assortment of private label products.

GfK found that the recession is still having a big impact on shoppers:

• Nearly three-fourths (74%) of them say the recession is an important factor in their decision-making.

• Well into the recession, shoppers are still switching to store brands. The poll found that 35% of shoppers are trying store brand products in categories where they had previously only purchased national brand items.

• More than 3 of every 10 shoppers say they are now buying more store brand products than they were a year ago.

These are some of the results included in PLMA’s ongoing study, “Store Brands and The Recession,” based on GfK’s nationwide poll of nearly 800 main household grocery shoppers.

This latest research in the study was co-sponsored by Marketing Management Inc., Ft. Worth, Texas, a sales and marketing company that specializes in store brands.

PLMA has published a series of reports on store brands every five years since the early 1980s. The last was conducted by the Ipsos-MORI organization in 2006.

Source: Private Label Manufacturers Association

Store brands still being fueled by slow economy, says new study

-- Packaging Digest, 4/13/2010 12:52:58 PM
By a sizeable margin, American consumers appear to be at odds with recent reports that the economy has improved. A new nationwide study reveals that more than eight out of ten supermarket shoppers see no improvement in the economy, and forty percent actually believe things have gotten worse. As consumers continue to cope, the study affirms, the appeal of store brand products is stronger than ever and may even be intensifying.


The findings are based on a poll of nearly 800 main household grocery shoppers conducted in February 2010 by GfK Custom Research North America for the Private Label Manufacturers Association, New York. The full report, entitled Recession, Recovery and Store Brands: What Consumers Are Saying Now, is available for download at http://cli.gs/PLMAGfKRpt.

Among the GfK study highlights:

For most American shoppers, the recovery has yet to begin.
Asked whether the economy has changed over the past few months, 40% said conditions were worse, while another 42% said things have stayed the same. Fewer than one in five felt the economy had improved.

As a result, the recent surge in store brands sales is likely to continue. When asked how important economic conditions were in deciding to buy a supermarket store brand, four in ten responded “very important.” A solid majority of consumers – more than six in ten – said they plan on buying more private label as they attempt to stretch their food dollars. Another finding that may also accrue to store brands’ benefit: Half of shoppers intend to spend less money on groceries in the months ahead.

Consumer awareness of store brands is also rising. More than half of respondents said they are more aware of store brand products now than they were a year ago.

Moreover, shoppers who identify themselves as “frequent” buyers of store brands are at an all-time high.

Some 57% say they buy private label products frequently, a figure that has been increasing (it was under 55% a year ago).

A greater number of shoppers are switching to store brands in product categories where they had previously only purchased a national brand.

Some 43% report they have recently forsaken a familiar national brand for a private label counterpart, a marked increase since the June 2009 when only 35 % said they had done so.

Virtually all of the shoppers who switched are pleased with their decision.
Ninety-seven percent compared store brands favorably to their previous national brand choices in the same categories. About half said that their store brand selections compare “very favorably,” a dramatic increase from the June 2009 study when only one quarter reported that.

Study participants endorsed a variety of strategies to cope with what they see as a persistently difficult economy.

When asked how they think the economy will impact their supermarket shopping habits, more than two thirds said they will take advantage of discounts by buying larger sizes or quantities for items they regularly purchase; two thirds will look for more coupons and promotions on national brands. About a third plan to change the stores or types of stores where they do their primary grocery shopping.

PLMA commissioned GfK to monitor consumer attitudes and behavior toward store brands in the U.S. as private label sales and market shares across all retail channels began to surge about two years ago. Sales of store brand products topped $86.4 across the major U.S. retail channels over the past year, according to the latest data compiled by The Nielsen Company for PLMA. In supermarkets alone, where market share in units reached an historic high of 23.7%, store brands growth outpaced national brands by a spread of 8 basis points and dollar market share also set a new record at 18%. Store brands accounted for 90% of the sales growth in supermarkets, adding $1.5 billion in incremental sales (+2.9%), while national brand sales were virtually flat for the year at +0.1%.

The February 2010 survey updates findings from two earlier PLMA studies on “Store Brands and the Recession,” published in February 2009 and in June 2009. GfK Custom Research North America is part of the GfK Group, the world's fourth largest market research company.

SOURCE: PLMA

Most shoppers believe effective packaging is worth higher prices for goods, says report

-- Packaging Digest, 6/3/2010 12:59:29 PM
Research and Markets has announced the availability of a new report, "Paying More for Brands and Packaging in the 2009 Recession,” which discusses consumer attitudes toward pricing, brands and packaging in the current recession.

In June 2009, The Consumer Network repeated a June 2008 survey of packaging attributes and benefits that consumers said would lead them to pay more or purchase a national brand instead of a less expensive store brand. Both surveys asked 1000+ respondents to select from a list of 30 attributes, benefits and features. Both used a split sample -- one half asked about paying a little more, the other half asked about buying a national brand even if it cost a little more.

The overriding question in 2009 was whether desirable packaging attributes continue to contribute to brand appeal and justify a higher price at a time when more American consumers than ever are trading down to store brands and generally cutting corners wherever they can.

The report shows that for most shoppers, packaging that meets real needs is worth buying national brands or paying for in spite of determined effort to save money. It also shows that packaging attributes add even more value to buy-the-brand decisions than to pay-more decisions.

Consumers see many of the packaging attributes included in this survey as consumer responsive. Deciding to buy a brand that is consumer responsive, even if it costs a little more, is rewarding to the consumer and fits their perception of how things ought to be, e.g., that companies should give them what they want and make money by making them happy, so that, in effect, they are getting the attribute free. Environmental reasons for buying a brand - the three eco- Rs, Reusable, Refillable, and Recyclable are joined by Less Packaging - make shoppers feel good about buying a brand that is doing the right thing.

Among the other findings of this study:

* More women than men are willing to pay more for packaging attributes.
* Mothers of young children are willing to pay more for more attributes than other women.
* Higher income consumers place the most value on less packaging.
* The failure of brands to give consumers some of the packaging attributes they want may be contributing to national brands loss of market share to store brands.


SOURCE: Research and Markets

Sustainable packaging: UPS will help customers be more "Green"

By -- Packaging Digest, April 16, 2010

UPS sustainable packagingUPS has become the first carrier to offer its customers an assessment of their shipment packaging based on environmental standards, says the company.

Under the Eco Responsible Packaging Program, UPS will evaluate a customer’s packaging processes in three areas of sustainability: damage prevention, right-sizing and packaging materials. UPS will score the results and those customers who meet the requirements can display the program’s logo on their shipment packaging.

Responsible packaging obviously begins with protecting the contents; damaged goods not only frustrate the recipient but often lead to the need to remanufacture and reship, doubling the carbon footprint. Shrinking the size of the box means less material used and fewer assets needed to transport the package. Finally, using packing and shipping materials with a more sustainable profile is important for the environment.

UPS’s rigorous assessment methodology and processes are verified by Société Générale de Surveillance (SGS), an inspection, verification, testing and certification company. The service also has been praised by the Sustainable Packaging Coalition (SPC) and Business for Social Responsibility (BSR), the latter a global business network and consultancy focused on sustainability.

“Our engineers have always directed our customers to use the right kind of packaging to protect their goods,” said Bob Stoffel, senior vice president, engineering, strategy, supply chain and sustainability. “This service gives our customers a new way to demonstrate that they are serious about sustainability when it comes to shipment packaging.”

The evaluation will assess the customer’s transport packaging systems and procedures, rather than product packaging found on retail shelves. The contractual-based service is available to customers who commit to sustainable packaging solutions. Pricing is determined on a project basis.

The program is conducted by the UPS Package Engineering Group, which is known for its expertise in transport packaging principles and also sought out the expertise of third-parties to ensure that its standards represent best practices.

“Embedding environmental evaluation in day-to-day packaging decisions is a critical step to improving the stewardship and conservation of valuable resources for the future,” said Anne Johnson, director of the Sustainable Packaging Coalition. “UPS brings an unprecedented scale to assessing the environmental impacts of transport packaging systems and their Eco-Responsible Packaging Program will raise awareness and continually inform more resource efficient and ultimately, recoverable transport packaging systems.”

Detailed information about the Eco Responsible Packaging Program is available at www.ups.com/ecoresponsible.

The service is the most recent UPS has introduced to share its best practices with customers to help them “green up” their supply chain. Additionally, UPS has extensive programs for conservation, reducing fuel use and emissions in its air and ground transportation operations and using alternative fuel technologies. To learn more about UPS’s total environmental program, go to www.responsibility.ups.com.

SOURCE: UPS