Acquiring Bemis’ Operations in packing

Exopack Holding Corp. is acquiring Bemis Co.’s plastics packaging operations in Menasha, Wis. and Tula, Okla., for around $81 million, subject to post-closing adjustments The acquisition includes production equipment and intellectual property.

Under the terms of an order signed by the U.S. District Court for the District of Columbia earlier this year, Bemis was required to divest the two facilities, which were part of its acquisition of Alcan Packaging Food Americas. The sale of the facilities is subject to regulatory approval.

Exopack is a manufacturer of paper and plastic packaging products. The company specializes in substrate development, film extrusion, printing, lamination, and converting of flexible packaging products.

“This purchase of the Menasha and Tulsa facilities reflects our commitment to our customers and other key stakeholders that we will continue to expand our capabilities and product offerings and strengthen the presence of the Exopack brand in the global marketplace,” says Jack Knott, Exopack chairman and CEO.

Microwave packaging market isn't cooked yet, says report.

Despite reaching a plateau of sorts, research firm Global Industry Analysts Inc. (GIA) believes the microwave packaging market will see growth over the near- to medium-term, and ultimately reach $2.52 billion by 2015. This growth, says the researcher, will be driven by trends toward take-home and packaged convenient frozen foods, increasing popularity of microwaveable foods and innovation in product offerings.

Although a look at recent packaging award programs confirms microwave packaging isn't short on innovation, GIA's study shows that growth in the U.S. microwave packaging market recently decelerated. Primary reasons for this sluggishness include a recently tough business environment in the upstream packaging industry, as well as reduced investments on new microwave packaging machinery and equipment and limited availability of financial resources for research and development thanks to the recession. However, as the economic downturn wanes and companies begin to invest in technology development and new applications again, GIA believes growth will return yet again.

Clear plastics group Plastech refurbs factory after Alplast move.

Clear plastic packaging maker Plastech has overhauled its Scottish facility after the Alplast business it acquired three years ago moved into the site.

Plastech bought Buckinghamshire-based Alplast in 2007 but moved the business's manufacturing to its own 4,000sqm facility in Glenrothes, Scotland at the end of last year.

Plastech has now completed a major refurbishment programme since the move in the first quarter of 2010.

The consolidated business can, Plastech said, provide clients with a one-stop-shop for the design and manufacture of clear plastic promotional packaging aimed at the retail sector.

Plastech managing director Tom Stirling said: "It made perfect sense to centralise the packaging operation at our headquarters, where we have a highly skilled staff and an excellent manufacturing and support infrastructure already in place."

Pepper CSR report

The Dr. Pepper Snapple Group commits to conserving more than 60 million lb of PET through package reengineering and increased use of PCR material, details new CSR report.

Dr Pepper Snapple Group, Inc. (DPS) has announced its five-year goals for improved environmental and social performance across the company's operations and has released “Sustainability in ACTION,” its inaugural corporate social responsibility (CSR) report. The 2015 Corporate Social Responsibility Goals address the company's operations throughout North America and the Caribbean, and provide the framework for the inaugural CSR report.

"Our evolution into an integrated beverage business has strengthened our ability to serve our customers and consumers while maintaining our responsibility to serve the needs of society and the planet we all share," says Larry Young, DPS president and CEO. "Setting and achieving long-term goals to improve our environmental and social performance is a vital part of achieving sustainable growth, because these goals reflect the best interests of the people who make, sell, buy, invest in, and enjoy our brands every day."

bottled water spending trend

The U.S. Conference of Mayors released the preliminary findings from an ongoing national survey demonstrating that more and more cities are phasing out bottled water from city budgets. These initial findings come on the heels of an executive order by Colorado Governor Bill Ritter cutting state spending on the bottle. Four states, including New York, Illinois, and Virginia, have now taken such action.
"These actions are not just about fiscal responsibility, they are about civic pride and protecting common resources," said Leslie Samuelrich, Corporate Accountability International Chief of Staff. "Spending taxpayer dollars on bottled water sends the wrong message about our nation's high quality tap water. It is also entirely wasteful to spend scarce public dollars on such a non-essential use of our most essential public resource."

The survey was prompted by an earlier resolution encouraging cities to phase out bottled water spending. Up to 40 percent of bottled water, in fact, comes from the same source as the tap. Bottled water is also far less regulated. Yet bottled water marketing has been so effective that many U.S. cities responsible for delivering tap water to the public have been spending millions each year on the bottle - even as public water systems face a $22 billion annual shortfall.

Pira International and TAPPI are bringing a new event to the fibre based packaging industry - Paperboard Packaging 2010!

Chaired by leading paper and packaging industry experts from Pira International and TAPPI, Paperboard Packaging 2010 will bring together leading minds in paperboard and associated industries - creating the leading forum where the current challenges and opportunities facing converters, mills and end users will be discussed and real solutions proposed.

With packaging forecast to be the only positive sector of the paper industry, this conference will provide invaluable knowledge and contacts to ensure your business not only survives but thrives. Hear from experts from retailer, brand owner, analyst, converter, designer, materials supplier and papermakers give their perspective on how best to prepare for the future in this sector.

Column on sustainable packaging debuts

The May 2010 issue of The ULS (Use Less Stuff) Report from editor Bob Lilienfeld has been released, featuring a new monthly column titled "Focus on Packaging." Says Lilienfeld, "Packaging continually comes up when discussing sustainable business practices. We want to inform readers about the latest developments and thinking regarding green packaging."

The first column focuses on food packaging and its role in the product life cycle.


The USL Report is published montly and is rated the number-one waste prevention site by Google, Yahoo, and MSN, says Lilienfeld.

Detail-rich sustainable packaging Product Database is an industry first

Greener Package launches a first-of-its-kind Web-based Product Database for sustainable packaging materials, with collaboration from Walmart.
Web-based knowledge exchange GreenerPackage.com now offers the industry’s first and only searchable database of sustainable packaging materials—the Greener Package Product Database. Unveiled in May, the database encompasses both raw and converted materials and is rich with detailed product information from the sustainable packaging industry’s leading suppliers.

The Greener Package Product Database has been meticulously developed by GreenerPackage.com and ECRM, the technology provider for Walmart Stores’ Sustainable Packaging Scorecard Modeling Software, to equip users with the most thorough information on both packaging performance and sustainability characteristics available. To submit their product information, suppliers must complete a standardized questionnaire that asks 27 detailed questions on packaging performance and 12 on sustainability. The database replaces ECRM’s Marketgate Web site, becoming the central portal through which suppliers must enter their data for inclusion in Walmart’s Scorecard Modeling Software.

"Quite frankly, there is no other database on the Web like this,” says Dave Newcorn, vice president of e-Media for GreenerPackage.com parent company Summit Publishing. “All of the data points are very, very specific to packaging materials. This also represents the first time that packaging suppliers can make sustainability claims, and we have found a way to normalize those claims or standardize how they are represented to the industry.”

Through a voluntary, third-party review process, suppliers can have their sustainability claims validated against the Greener Package Guidelines to Sustainability Claims. The review, designed to root out greenwash, provides “an apples-to-apples comparison of materials and sustainability claims,” Newcorn relates. Only those suppliers whose claims have been reviewed will be included in Walmart’s Modeling Software.
Raw and converted materials are separated

Also unique to the database is the ability to search either by raw materials or by converted packaging—“a nuance that is often lost in typical databases,” Newcorn says. “So, if you are a converter, and you make paperboard folding cartons, you will be able to quickly find raw material suppliers that will sell you the unprinted board. As an end-user packager, you can find converters that will sell you folding cartons.” In addition, searchable sustainability criteria run the gamut, from source through end-of-life characteristics.

Users can also search for company information within the database. Each supplier submitting data receives its own, dedicated page, with company details, including company size and revenue; complete product listings; and manufacturing plant information. Deep links allow users to contact the company directly and view specific materials on the supplier’s Web site.

The database has been under development since April 2008, with suppliers beginning to upload their data in fall 2009. Currently, the database contains more than 44 listings on raw materials and 186 listings on converted products, from 178 suppliers. According to Newcorn, 20% of the raw materials and 10% of the converted products have been third party-reviewed.

For its fifth annual Sustainable Packaging Exposition, held in Rogers, AR, earlier this month, Walmart required all potential exhibitors to enter their product information into the Greener Package Product Database before they were granted invitations to the event. According to Newcorn, GreenerPackage.com is in talks with at least one other major U.S. retailer about developing a program around the database to encourage its suppliers to enter product data for third-party review. For a limited time, the database is free both for those wishing to upload their product data and for those using the search features.

Sustainable packaging: Cereplast Expects to Ship 16 Million Pounds of Bioplastics in 2010

Cereplast, Inc. announced that it expects to produce and ship approximately 16 million pounds of their proprietary bio-plastic resins to customers in 2010, representing a 400% increase in shipments compared to 2009.


Cereplast recently entered into new global distribution agreements with a number of companies, including multi-billion dollar corporations Ashland Distribution, a commercial unit of Ashland Inc. and Bunge Alimentaris, a Brazilian subsidiary of Bunge Limited, a contributing factor to the rise in shipment estimates. To support growing sales volume, the Company recently opened a new state-of-the-art production facility in Seymour, Indiana. The move to the new plant, which was relocated from Southern California, also has significantly reduced real estate and utility costs for the company.

“Distributors are increasingly utilizing bio-plastics as an alternative to petroleum-sourced materials in order to meet growing consumer and industrial demand for economically and ecologically sound, 'green' products,” said Frederic Scheer, Chairman and CEO of Cereplast, Inc. “Our new advanced facility provides us with the capacity and scalability to handle climbing volume. We estimate that this facility, running at full capacity, will be able to produce approximately 80 million pounds of bioplastic resin per year.”

Mr. Scheer added, “We estimate that the expected rise in volume will result in our 2010 revenues increasing by a minimum of 190 percent. The bulk of the shipments are expected to be delivered in the third and fourth quarter."

SOURCE: Cereplast, Inc.

TriStar unveils rPET sandwich display pack

Food service packaging specialist TriStar has launched a new range of sandwich packs made from 50% recycled PET.


The dome-shaped pack has a black base that acts as a tray and a clear, anti-fogging lid to present quarter cut sandwiches and maximise impulse purchases.

Managing director Kevin Curran said he expected the product to be a successful addition to the firm's portfolio. "The dome-shaped sandwich pack will help forward-thinking retailers stay one step ahead of their competitors."

Plastics market for healthcare packaging forecast to reach five billion lb by 2015

According to a new technical market research report, Plastics For Healthcare Packaging from BCC Research, the U.S. market for plastic healthcare packaging is expected to reach 3.8 billion lb of products in 2010, which is expected to increase to nearly 5 billion pounds in 2015, for a five-year compound annual growth rate (CAGR) of 5.6%.


The largest segment of the market, polypropylene, is expected to reach 1.3 billion lb in 2015, after increasing at a CAGR of 6.3% from the estimated 2010 total of nearly 1 billion lb.

The second-largest segment, polyvinyl chloride (PVC), is expected to increase from 845 million lb in 2010 to nearly 1.1 billion lb in 2015, for a CAGR of 5%.

Food packaging: Safety still an issue but consumer concern decreased, says survey

Manufacturers and government expected to communicate about recalls; strong interest in nutritional facts and country-of-origin labeling.

According to Deloitte’s 2010 Consumer Food Safety Survey, while nine out of ten (90 percent) consumers believe food-related recalls are on the rise, or on par, compared with findings from Deloitte’s 2008 Consumer Food Safety Survey, fewer people seem to be anxious about them. The results show 65 percent of consumers surveyed are concerned about the quality of the food they eat, a 17 percent decrease from 2008.


“The decline in consumers’ concern for quality from our 2008 survey is due, in part, by their need to become more aware and engaged in choosing the products they buy,” said Pat Conroy, Deloitte’s vice chairman and U.S. consumer products practice leader. “Consumers view food safety and quality as important issues, and are looking to manufacturers, food companies and government regulatory bodies to drive communication, as well as tackle food quality and safety issues.”

In fact, three out of four (75 percent) Americans surveyed feel that the manufacturers/food companies are responsible for communicating product recall information, followed closely by government organizations such as the Food and Drug Administration (73 percent), with less expectations from retailers (53 percent) and the media (51 percent).

Country-of-Origin Label Helping Selection Process

When making food purchases, Americans are doing more hands-on research and reviewing labels carefully, another indication that they are becoming more engaged in the process behind the foods they buy. Half (51 percent) of Americans say the new country-of-origin labels help in determining which fresh meat, fish, fruit or vegetables to purchase, and 45 percent say they would like to find out the country-of-origin on a Web site for all ingredients in a packaged/bottled food product. This may become of increasing importance to consumers, since the survey found that more than half (53 percent) of consumers frequently or always read the list of ingredients on an unfamiliar packaged or bottled food item; up from 50 percent in 2008.

However, although more Americans are reading ingredients, only four out of 10 (45 percent) surveyed say they understand at least 75 percent of the ingredients on a packaged food item, up slightly from 2008 (33 percent). Furthermore, 55 percent surveyed understand half or less of the ingredients, which is in line with responses from Deloitte’s 2008 survey (59 percent).

Nutritional Facts Matter

A strong interest in nutrition has caused consumers to reference the “Nutritional Facts” box on packaged/bottled foods when making a purchase. More than half (54 percent) of Americans surveyed frequently or always read the “Nutritional Facts” box on an unfamiliar packaged or bottled food item and 26 percent occasionally, as compared to 15 percent rarely and five percent who never read it.

The top five nutritional facts that consumers report reading are: calories (71 percent), total fat (63 percent), sugars (50 percent), sodium (45 percent) and serving size (39 percent). Four out of 10 (42 percent) consumers surveyed frequently or always purchase packaged/bottled foods influenced by health-related claims, such as “low carb,” “low sodium” and “heart healthy.”

“Over the past two years, we have seen a significant shift in how consumers view the foods they purchase,” said Conroy. “Though our survey still shows health and safety as the top two concerns facing Americans, the percentages have dropped and consumers are using their increased knowledge of food products to raise concerns around over-processed foods. Food companies are now dealing with an engaged consumer who actively seeks to understand the products they are looking to buy. This survey should be yet another red flag for the industry, as it shows that consumers are determined to be smarter about the foods they put on their table.”

For a copy of Deloitte’s 2010 Food Safety Survey, please visit www.deloitte.com/us/foodsafety.


The survey was commissioned by Deloitte and conducted online by an independent research company between March 22 and March 24, 2010. The survey polled a nationally representative sample of 1,102 consumers. The survey has a margin of error of +/- three percentage points.

SOURCE: Deloitte.

Injection moulding market shrinks 23% in Europe

The value of the European plastics injection moulding industry slumped to €42.6bn in 2009, losing 23% of its value from €55bn in 2008, according to a new report from AMI.


Up until 2008, the sector was growing by around 2% per year in terms of polymer volume but the last quarter of that year saw a sharp contraction in the market, which “wiped out nearly five years of growth in the space of a few months”, says the market analysts.

The European market has also shifted from west to east. Between 2005 and 2008, polymer demand among central and eastern European moulders grew on average by 7% per year while in western Europe, polymer consumption by moulders shrank at a rate of 1% per year. More than 12% of injection moulding sites in western Europe closed.

Germany was the only western European country to sustain positive growth, while the UK was the weakest market of the entire region.

AMI predicts the industry will return to growth this year, forecasting an expansion in polymer demand of 3-4%, driven mainly by developments in packaging applications and specialised areas sectors such as medical.

However, the number of companies within this sector will decline as the market will remain competitive because of rising raw material, energy and labour costs.

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

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

Packaging materials: Gap widened between EU and U.S. corrugated basis weights

Packaging trends in Europe are compared with the U.S. since they occupy similar geographic areas, have similar climates and topographical features, and their containerboard companies supply many of the same global food, beverage and consumer goods companies. However, average basis weights of corrugated are now 20% lighter in Europe than the U.S., as shown in the new study published today by RISI, The Future of Lightweight Containerboard in North America.

This reflects a proactive cultural change in Europe, with sustainability high on the agenda and government environmental initiatives with targets and penalties for non-compliance implemented across the supply chain, and supported by trade groups and NGOs.

Author of the study and industry expert Sarilee Norton says, "A critical look at the geographic factors, the fiber considerations and the supply chain drivers that distinguish Europe from North America are not different enough to continue to explain a 20% differential in average basis weights. Sustainability, packaging efficiency and cost savings are vitally important considerations to North American corrugated users as well as those in Europe."

Since 2000 only three new machines have been built in North America, compared with thirty-two in Europe. Modern machines, or conversions of existing machines, can produce extra-lightweight containerboard (under 26#) more quickly and economically. Many corrugators currently operating in North America are fully capable of running extra-lightweight constructions, and an analysis of current North American and European containerboard machine capabilities is included in the study. The evolution of 'lightweighting', including the technology developments of board machines, corrugators and converting capabilities, provides the containerboard producer and converter perspectives in the study, alongside what the trend towards lighter basis weights means for end-users.

The containerboard market is customer-driven and with the largest global retailer, Walmart aiming to reduce five percent of packaging across its supply chain by 2013, the report anticipates that the 'lightweighting' trend will continue, providing an opportunity for corrugators that invest in modern machines that offer the speed, quality and versatility needed, to help their customers realise their packaging strategies.

The Future of Lightweight Containerboard in North America provides a detailed analysis of the trend towards 'lightweighting', a history of corrugated, and capacity forecasts of the North American Containerboard market until 2014.