John Byett [email protected] 1

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John [email protected]

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Packaging has changed slightly through the years

Definition of packaging

Packaging is the means of ensuring the safe delivery of a product to the ultimate consumer in sound condition, at the minimum overall cost

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In today’s business: what is packaging required to do?

• Inert and non toxic ie non-damaging to product• Have good seal integrity eg show evidence of tampering

• Appeal to the consumer• Convenience: Be easy for the consumer to use; open close

• Display product information• Meet require legislation – materials in contact with food;

traceability; labeling; weights and measures

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Packaging: Your partner in product protection

and production

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Protection of the product

What can go wrong in distribution?• Mechanical hazards• Physical changes – colour, texture• Climatic hazards• Microbial growth• Light catalysed changes• Moisture loss /gain• Product staling

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Be suitable for easy movement on the factory production line:

• Reduced labour costs• Increasing flexibility• Efficiency increased

Design for Stability on the production line

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containers should be designed to be all-around as trouble-free to manufacture, fill, close and ship as possible.

Some designs are inherently weaker or more prone to cause trouble in their filling and distribution cycle than others.

Centre of gravity and the base surface area will determine a container's stability. Stable containers minimise handling problemson both manufacturing and filling lines.

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Poor design

Good design

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Example: The outer carton needs to be square, otherwise slight length variation is magnified.

If not, the carton erector (s) may not fold and glue the cartons properly, or might even reject folding it.

Automation implications

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Packaging machinery

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Packaging machinery

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Packaging: Your partner in product distribution

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Levels of packaging

The 3 levels of packaging – primary, secondary and tertiary. Optimal distribution packaging builds the correct protective and handling qualities into each packaging subunit and ensures that all the qualities are mutually complementary.

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Be robust enough for stacking in warehouses

Distribution compatibility

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Water underneath PVC capsule during application

Corks pushing out due to too high temperature being reached

What happens if distribution goes wrooooong?

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A shifting pallet load could be caused by a number of packaging or distribution factors eg

• Poor shrink quality of 6-packs• Load-shifting due to poor stack

method • Incorrect tension of stretch wrap • Excessive vibration in transit

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Label scuffing

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Possible causes: Wet cans: Moisture on cans will promote external corrosion. Wet board. High salt content and / or moisture level in the board

used for cartons or trays.

Stress corrosion cracking at can end

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How to avoid packaging related problems?

Know your packaging partner Understand the properties of the packaging

materials in use Understand the distribution system and

hazards

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Packaging: your partner in sales and

marketing

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PACKAGING’S three masters

• Consumer Packaged Goods companies (CPGs)

• Retailers• Consumers

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Consumer Packaged Goods (CPG’s) companies want…

• Brand differentiation• Support for the brand’s unique selling

proposition• Add unique features, also for

differentiation

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…. . . brand differentiation

CPG’s want . . .

colour delivers

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CPG’s want . . .

. . . brand differentiation

shape delivers

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RETAILERS want the package to. . .

• Jump off the shelf

• Solve all logistics problems

• Cost not $.005 more

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RETAILERS want . . .

Shelf impact

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. . . shelf impact from secondary, tertiary packaging for Warehouse Stores


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. . . shelf impact

is it Performance Oriented Packaging or is it just packaging?


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. . . security


(And they don’t care how hard it is to open!)

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• Improved Logistics using Bar Coding and RFID

• New research: Out-of-Stocks are down thanks to better inventory management using new technologies


16%

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RETAILERS want . .

…...product promotion

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CONSUMERS are…….

Agitated, harassed, stressed

• Smaller serving sizes

• Packages that are easy-to-open

• …and easy to re-close

• With a closure that works like it is supposed to

• Real value-added features

CONSUMERS want . . .

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…..and CONSUMERS want convenience. . .

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•Packages that appeal to the hand and to the eye

CONSUMERS want . . .

MICROWAVEABLE packaging

• Single-serving• Individually

wrapped• Browns crust

Real Value-Added Features!

• Dinners – $1.5 billion

• Entrees – $2 billion

• Meat, poultry, seafood

• Source: “Microwaveable Packaging: Trends, Technologies, Futures – 2004 to 2008”

1%

62%

8%

MICROWAVEABLE packaging is growing……

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• Cook-in bag

MICROWAVES . . .

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. . . This is what 60% growth looks like

MICROWAVES . . .

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Don’t forget……the packaging for older customers

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Difficulties with existing packaging:

Products in heat sealed plastic wrap 60-70% milk cartons 35 - 40% Coffee 30% Cans 25 - 30% Drink bottles 25% Jam jars 20 - 25% Cleaning supplies 20 - 25% Medications 15 - 20%

Don’t forget……the packaging for older customers

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Packaging: Your partner in retail

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Which car would you buy?

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Which product would you buy?

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Which product would you buy?

Packaging makes the difference: sale or no sale

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Retail: Packaging adds product confidence

Purchasing a product means you are buying into the quality of the product. The outward appearance:

Tells you about the inside story…what you could get

Tells you about the Company making the product

How much they care about their product How much they care about you as the

consumer of their products

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• The role of packaging in maintaining consumer confidence in the safety of the product is crucial –particularly for the food and pharmaceutical products.

• Evidence of good sealing, tamper evident seals, use by dates, good presentation are all evidence to the consumer that the product is safe to use and that the brand owner ‘cares’.

Retail : Packaging adds product confidence

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Convenience for the retailer: Retail ready packaging

96Advantage : Reduction in Logistic Costs

Full pallet of coffee jars on the shelf in 17 instead of 60 minutes!


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Safety• 50% of accidents in stores are from

cutters• in UK alone around 60,000 employees

require hospital treatment from injuries received from opening packaging each year

Handling & identification of products is easier in back store

Efficient use of shelf space


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Better on-shelf communication

Packaging source reduction & good product visibility

Improved availability – less out of stock


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Recent Developments: New flexible RFID controller Bendable to Radius of 10mm Target thickness 0.1mm (currently

0.8mm) Passive controller – Draws power

from the reading scanner

Photo courtesy of Dennis Publishing (PC-Pro)

RFID Promises: Greater availability of products Better management of costs and

prices Increased product safety Enhanced product security Better shopping experiences.

Photo courtesy of Packaging Digest

Convenience for the retailer: RFID

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Promote the Environment for the retailer

Strategies:• Re-cycle • Reduce• Re-use• Recover

Examples: Reduce initiatives in RSA:• Beverage can: 1966 = 62g; today = 33g (66% reduction)• Glass beverage bottle: reduced by 18% average over 10 years• PET 2 litre bottle: 1979 = 90g; today = 52g (reduction = 89%)• Detergent refill packs have reduced packaging material by 70%

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Light weighting of materials brings cost & resource savings

Reduction of can wall thickness by 22%, 102,000 Tonne saving per year


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Rigid to flexible packs can give cost, waste and resource reductions

Empty pouches occupy >50% less landfill space than rigid alternatives.

Increased produce volume per pallet

More efficient transport and storage before filling lines.

Source reduction (energy & raw materials)


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Material Substitution can give similar benefits

Maggi example : Guatemala

Innovative design brings win/win for culinary product;

• Glass to PET = 89% weight saving

• 41% capacity increase

• 15% cost increase (material)

• Improved functionality


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Packaging: Your legal support

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Legal aspects of packaging

Legislation affects packaging in the following areas: Requirements for hygienic packaging of food (health and

public safety) Requirements for packaging communication Protection of package design Storage and transport regulations

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Enhanced Food Labeling in U.S.

Law took effect January 2006

Requires identification of Trans Fats in food

Requires identification of allergens in food

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Focuses on the Nutrition Facts Label

Nutrition Label Requirements as Early as 1970’s

More Details Required Over the Years

Enhanced Food Labeling in U.S.

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Nutrition Facts Label Details

Serving Size Servings per container Calories per serving Calories from fat per serving Total fat Saturated fat Cholesterol Sodium

Total Carbohydrates Dietary Fibre Sugars Proteins Vitamins Minerals Daily values with percentages

based on 2,000 calorie diet

Note: U.S ONLY – Canadian Law Is Different.

Resource: http://www.inspection.gc.ca/english/fssa/labeti/labetie.shtml

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Example: trans fats declarationPre-2006 Label

From January 2006 food packages and some dietary supplements must show the amount of Trans Fats in the product as a separate line on the Nutrition Facts Label.

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Resource:

http://www.cfsan.fda.gov/~acrobat/foodlab.pdf

Example: trans fats declaration2006 Label

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Another Labeling Requirement Effective January 2006!

Identification of Food Allergens

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Food manufacturers/packagers must label food products that contain an ingredient that is or contains protein from a major food allergen in one of two ways:

Resource: http://www.cfsan.fda.gov/~dms/alrgqa.html

Food Allergen Labeling Requirements

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Include the name of the food source in parenthesis following the common or usual name of the major food allergen in the list of ingredients in instances when the name of the food source of the major allergen does not appear elsewhere in the ingredient statement. For Example:

Option #1:

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Ingredients: Enriched flour (wheat flour, malted barley, niacin, reduced iron, thiamin mononitrate, riboflavin, folic acid), sugar, partially hydrogenated soybean oil, and/or cottonseed oil, high fructose corn syrup, whey (milk), eggs, vanilla, natural and artificial flavoring) salt, leavening (sodium acid pyrophosphate, monocalcium phosphate), lecithin (soy), mono-and diglycerides (emulsifier)

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Option #2:The second option is to place the word "Contains" followed by the name of the food source from which the major food allergen is derived, immediately after or adjacent to the list of ingredients, in type size that is no smaller than the type size used for the list of ingredients.

For example: Contains Wheat, Milk, Eggs, and Soy .


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Compliance required!

If you intend to export prepared/packaged food to the U.S., you must comply with these

labeling requirements!

For more information: http://www.cfsan.fda.gov/list.html

Centre for food safety and applied nutrition

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Enhanced Food Labeling in U.S.:What Is In the Near Future?

Clarification of serving sizes

Clarifying and qualifying health claims for specific foods

Resource: http://www.cfsan.fda.gov/list.html

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Environmental packaging legislation in the US

The two federal agencies that deal with packaging in the United States are the Federal Trade Commission (FTC) and the Environmental Protection Agency (EPA).

Though neither agency may enact statutes that constitute binding law, both have the authority to bring suits on behalf of the federal government.

In addition, each agency is involved in publishing non-binding guidelines concerning packaging that each state may or may not choose to accept.

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Environmental labelling

The United States has very strict Environmental Labelling Rules - and it should be noted that many importers do use deceptive labelling.

There are three existing guidelines on environmental labelling that the states have chosen to follow.

These are the FTC guidelines, the Northeast Recycling Council (NERC) guidelines, and guidelines suggested by The Green Report II.

The Northeast Recycling Council (NERC) has developed model legislation. the primary purpose is assisting these states in developing and stimulating markets for recycled materials in the north-east U.SA.

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The following are standards defined in the guide, and should reflect current solid waste management options:

Claims about recyclability and composting in advertising should reflect the options available in the local area where the product is sold (if not, confusing or misleading information may result).

Biodegradable, degradable and photodegradable claims should not be used in advertising for products which are primarily disposed of by landfill or incineration.

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Companies should have scientific evidence to prove that products will decompose before labelling them as compostable.

Unqualified claims of suitability for composting or for recyclability should only be made when the option is available nationally; if not, the limited access to this option should be made apparent.

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It is recommended that exporters to the U.S. follow the guidelines of the Green Report II. This is because:

Its advertising requirements are the strictest; Compliance with the requirements of the Green Report II

will cover an exporter throughout the U.S.; The majority of states who have advertising requirements

are signatories to the Report.

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General environmental issues

The EPA recommends paying attention to the following issues with respect to packaging:

Source reduction Recycling Waste-to-energy incineration Landfill.

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For Food Exporters to the U.S.

Prior Notice of All Food Imports to the U.S. is REQUIRED!

The Bioterrorism Act requires that this information also be provided to FDA in advance of an imported food's arrival to the United States.

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What is Prior Notice?

Prior notice must be received and confirmed electronically by FDA no more than 5 days before arrival and, depending on the mode of transportation, no less than:• 2 hours before arrival by land by road;• 4 hours before arrival by air or by rail;• 8 hours before arrival by water

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Summary: Packaging…..

Your silent business partner

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The ‘packaging’ supply chains

Packaging supplier

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BUT, no businessgoes smoothly

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BUT, no businessgoes smoothly

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Economical: - cost effective

Protect: throughout product’s life

Preserve: extend shelf life

Promote: help sell the product

Summary of ‘Packaging’ as your silent business partner

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Disguise!

John Byett 2011

John Byett [email protected] 1

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