sustainability, supply chain & bottom line improvement ... · protecting and promoting your...

Protecting and Promoting Your Brand Worldwide1

Sustainability, Supply Chain & Bottom Line ImprovementInduction Sealed Packaging

Technology & Sustainability Aligned

Protecting and Promoting Your Brand Worldwide

Presentation Overview

2

1 Selig Group Overview

2 Australian Dairy Case Study

3 UK Case Study

4 USA Market Trends

5 Packaging, Processing & Product Sustainability

6 Q&A


Selig Group Product Lines

3


Company History

4


Service

5

http://images.google.co.uk/imgres?imgurl=http://www.discovertv.co.nz/files/Stories/AugustSeptember2009/Meadow-Fresh-Logo.jpg&imgrefurl=http://www.discovertv.co.nz/stories/meadow-fresh-pre~bio-milk.aspx&usg=__9ZRiT2k2MboLj9YlaV0XyIhytEk=&h=167&w=300&sz=22&hl=en&start=19&um=1&itbs=1&tbnid=yQ06htgz35L1KM:&tbnh=65&tbnw=116&prev=/images?q=meadow+fresh+milk&hl=en&rlz=1T4ADFA_enGB345GB348&um=1

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Liner Functionality

USA CanadaUKSwitzerland


Induction Process

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Induction Sealing & P.H.TPressure Heat Time

Pre-Induction

Induction lined closure torqued onto filledcontainer

Pressure applied to liner

Induction

Bottle finish enters induction field andinduction energy converted to heat energyin foil

Heat generated in liner

More energy passes to foil as the containerpasses under the induction field

Time in the induction field generatesmore heat

Heat passes from foil to heat seal materialand bonds liner to container

Post Induction

Container, closure and liner dissipate heatand seal is set

Pressure

Heat Time


The Sustainability Community & Relationships

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Direct Communication & Needs Clearly Defined

Include all primary packaging suppliers early in development

Understanding influence of materials, components, equipment, distributors & contract manufacturers

Longer term shifting of market (i.e. legislation, consumer trends, & industry standards)

Recognizing & Leveraging the Packaging Community RelationshipAll factors must be considered to optimize the choices


Sustainability, System Cost Reduction & Consumer Convenience

Australian Case StudyRetail Milk Packaging


Consumer Research

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Source:

Key Factors in Australian’s Choice of food retailer … High Standards of Food Safety

Good Value

Location / Proximity

Clean and Tidy

Hygienically Prepared Food

Convenient Trading Hours

Easy Parking

Low Prices

Good Quality of Fruits & Vegetables

Good Range of Fruits & Vegetables

Australian Case Study


Consumer "Research"

Dairy Case: Hygiene Concerns Hitting Social Media

*Posted April 3, 2013



Retail Dairy Case: Cleanliness & Food Safety

Leaking Bottles: Hygiene Concerns Hitting Social Media

*Posted August, 2012


linuxuseronacerHi all,

Whirlpool Forums Addict

One of the miracles in Australia are the leakingunopened milk bottles. Also crème with plastic lidsand yoghurt with plastic lids are leaking when youkeep them stored/transported horizontal.

Once I had one which emptied half on my wayhome and left a huge mess in my bag. So now Icheck them in the shop by turning them headdown, give them a gentle squeeze and see whethermilk drops out (one lady laughed when she saw medoing this and said that she is doing the same, too).But even those checked ones drip if left horizontalover a day or so in the fridge.

I think this is not only a inconvenience for thecostumers but also a hygiene problem. When milkcan leak out bugs or other things can go in also.

It cannot be that hard to put a lid on those bottleswhich seals properly. I have not seen this leakingproblem in any other country in the world.

Anybody from Woolworth or Coles read this here?

reference: whrl.pl/RcQGDo

FourSeven193Whirlpool Forums Addict

When I used to pack the fridges at IGA I noticedthat a lot of customers would put a bottle backif it had liquid on it. Usually I found that onebottle had busted open and covered the rest inmilk. So they appeared to be open but weren't.

reference: whrl.pl/RcQHbY

SporkWhirlpool Forums AddictI used to work in a supermarket, and we wouldoften have to clean out the milk section of thefridges because of all the leakage. That waseven when storing vertically.reference: whrl.pl/RcQJwx

JivWhirlpool Forums AddictOP, I have simply given up buying anythingwith crappy packaging. This includes HomeBrand corn beef. I can't afford the time to tryto open that -- when the opener fails. You see,this is where you realize that cheap stuff areactually more expensive.

reference: whrl.pl/RcQJCZ

Daft VaderWhirlpool Forums AddictI have only one person bring back a bottle ofmilk that leaked out whilst he was drivinghome. The only way you could be sure of it notleaking is to get one that has an inner-seal.Of course I always tighten the lid of anything Ibuy to ensure it is tight.reference: whrl.pl/RcQJDr

http://whrl.pl/RcQGDo

http://whrl.pl/RcQHbY

http://whrl.pl/RcQJwx

http://whrl.pl/RcQJCZ

http://whrl.pl/RcQJDr



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Why use induction foil? | Prevent Leakers

Woolworth’s preventing leakers from the point of purchase to home

consumption


$12Mn pa

8 Hours

$17 Per Hour

2 x a Week

52 Weeks

850 Stores

Retailer: Food Safety, Cleanliness & Cost

Savings on Staff Cleaning Time

“Cleaning spilt milk is time consuming. It takes one person 8 hours to clean the whole display properly.

We need to put the whole stock back in crates, put it in the storage room, do the proper cleaning, mop it, dry it and restock the whole lot again”

Woolworths Grocery Manager, Hillsdale NSW 30th April 2012



Packaging Weight Reduction

Areas of Light WeightingClosure

Hermetic seal provided by the induction liner, allows for light-weighting of the cap while retaining seal integrity.

TE band

Can be removed from cap, weight reduction + process simplification + application improvements

Container

Neck area reduction due to elimination of TE band

Food Safety Tamper Evidence: Liner seal & TE


Cost & Weight Reduction


Packaging ElementsWeights & Potential Savings

Australian 2LMilk Bottle

UK 4 Pint Bottle(Pro-rata to 2L)

(UK already converted)

Cap, TE Break ring & PE wad weight 3.14 grams Not Applicable

Cap weight 2.30 grams 1.50 grams*

TE Break ring weight 0.40 grams Not Applicable

PE Foam wad weight 0.44 grams Not Applicable

2 liter HDPE Bottle weight 44.6 grams 33.82 grams

TOTAL WEIGHT 47.74 grams 35.32 grams

Net Difference / Potential 12.42 grams

HDPE Resin Price / Tonne ASD$1,563

HDPE Resin Price / Gram $0.001563

Potential Net Savings per Package $0.0194124

Potential Net Savings pa (100 M) $1,941,124

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Cost Savings via Weight Reduction

PE Polymer prices as per April 2013 source UK Plats Polymer Indices = 1,275 Euro per ton/ ASD$1,563.84 per ton*Includes induction liner



Annual Savings from conversion to induction seal:

Dairy case clean & maintain ~ $12.0 Mn pa

Package weight reduction ~ $9.7 Mn pa*

$21.7 Mn*Woolworths volume ~500M milk bottles pa

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Case Study Summary: Woolworths Australia DairyAustralian Case Study

Additional Benefits Consumer compensation for leaking bottles

Lower complaint rate & administration

Shelf life improvement – sealed at source

OH&S insurance premiums from spilt milk in aisles

Risk Reduction

HACCAP hygiene risk from bacteria in dairy cases

Damage to Woolworths ‘Select’ & ‘Home Brand’ reputations

In-store accidents – wet floor


NEW CAPS FOR KAPITI ARE TOPPING!New capping technology introduced by Kapiti Fine Foods to the Pam’s milk brand has beena tremendous success, Greig Shearer, the chief executive, reports.

The new technology involves an induction seal to stop leakage and, says Shearer, it hasreally helped improve sales.

“There have been a lot of benefits from it,” he said. “It’s probably been more of a benefitto the shops than to the consumer.

“It has also assisted in increasing the life of our milk from 12 days to 14. It was acombination of a lot of little things that came together to make the enhancement.

“Really, it’s not a new invention. All we have done is to bring European technology to thispart of the world. But it’s not done in Australia – we were the first in Australasia.

“It has surpassed all our needs and wants and has continued to lift our business.”

FMCG – August 2006 Volume 11NO 8 ISSN 1175-8279

Publisher Review PublishingPhone 64 9 3584465

Dairy - Pam's Milk Shelf Life Article

Brand Owner & Retailer Comments

Supported by a promotional campaign, the introduction of induction seals boosted sales of Dairy Farmers milk

11.8% increase Whole Milk sales 3.0% Increase in Sales Across All Fresh Milk

*This data relates to Woolworths Stores (6 weeks sales prior to launch vs. 6 weeks sales post launch. Q1&2 2007). Source Aztec Scan data.


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Induction Seal use initiated in 1992All dairies converted to induction by 2011

European Case Study


UK Dairy: Significant Package Weight Reduction

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Developments in light-weighting since the UK dairy market adopted induction foils in 1992:

Container: In 1992 1 liter HDPE bottle weighed 34.04g

In 2013 1 liter HDPE bottle weighed 25.95g

(24% weight reduction)

Closure: In 1992 a 38mm PE cap weighed 3.1g

In 2013 a 38mm PE cap weighed 1.5g

(48% weight reduction)

Best practice UK Dairy Leaker Rates < 0.001%

European Case Study


Continent Use of Induction in DairyPackage Weight Reduction

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No TE break ring 100% Induction Running since 2009

European Case Study

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Guida’s Milk ensure the safety and freshness of their milk products to consumers on their website

along with commercials/videos.

In the market since 2009

All Flavors and Varieties of Guida's Manufactured Gallons, Half Gallons, and Quarts Come With Our Triple Seal.

"Guida's Milk. All natural and sealed to stay that way."

North American Case StudyMarket Trends: Safety & Freshness


Market Trends – Cost & Sustainability

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Crate-less Gallon 50% Greater Shipping Capacity

Reduce Labor Cost (Crate Cleaning / Handling)

Reduce Leaker Return Rate (Foil Seal Integrity)

In the market since 2011

North American Case Study


Package Sustainability

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Consumers perception is 'more sustainable'

Elimination or reduction of colored master batch is a reduction in costs??

Recycling channel standardization for HDPE similar to PET?

Potential reduction in SKUs/inventory of packaging

Clear/Translucent HDPE Closures


Package Sustainability

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Lift ‘n’ Peel™ “R”Supports sustainability initiatives

Pure PET Flakes and Lift ‘n’ Peel ‘R’™separated and PET sink to the bottom of the floatation tank.

Non PET elements of Lift ‘n’ Peel ‘R’™ separate and floated to the top of

the floatation tank


Package Sustainability – Handling of 'Scrap'

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Internal ProgramsWaste to energy

Fiber blocks

Solvent energy recovery

Skeleton energy recovery

Energy efficient processing

External Programs Pallet return

Reclaim 1-piece scrap (skeletons)

Shrink wrap & plastic banding buy back

Packing slip automation

Sustainability programs


Efficiency

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Improvement achieved with center tabbed /no peripheral tabbed liner based on a 4-up configuration

Quad Tabbed Liner:38mm LinerSlit width: 160mm (+8.2%)Lane yield: 24-25Slit width yield: 96-100Approx. 6% less than center tabbed

Center Tabbed Liner38mm LinerSlit width: 148mmLane yield: 26Slit width yield: 104

Extended Tab Liner:(Progressive die set)- 38mm Liner- Slit width: 155mm (+4.8%)- Lane yield: 23-24- Slit width yield: 92-96Approx. 11% less than center tabbed

Package Sustainability: Liner Yield Improvements


Summary

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Sustainability, Supply Chain & Bottom Line Improvement

One Company's Experience & Recommendations Involve the entire supply chain

Raw materials suppliers

Consumer

Anticipate legislation/trends

Sustainable packaging doesn't work w/o a consumer need

Challenge convention

Related industries

Regions/cultural norms

Reduction through addition

Provide multiple benefits with 1 feature

Sustainability as a 'service'

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THANK YOU

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