1

PACKAGING

MARCH 2017MARKET INSIGHTS

2

HA

VI M

ark

etI

nsi

gh

ts

BIONIC BUTTERFLIESGerman process control and factory-automation manufacturer Festo recently demonstrated its eMotionButterflies at the PackEx Montréal 2016. The bionic butterflies—also called ultralight flying objects—each contain an indoor Global Positioning System and an infrared camera that allow the butterflies to fly autonomously around each other without colliding. Cameras on the eMotionButterflies transmit positioning data to a central master computer, which programs the butterflies’ flight patterns like an air traffic controller without the need for human pilots. The computer houses preprogrammed routes, and because of stored behavior patterns, autonomous flight is also possible without any communication between the butterflies. What is Festo’s ambition for the new technology? To illustrate that humans can safely work in conjunction with technology and to demonstrate that control technology can be used efficiently and effectively in small spaces. Festo believes these two principles are critical elements that could enable factories of the future.1,2

SURPRISING SUCKERSResearchers from the University of Alaska Anchorage are studying clingfish—organisms that attach

themselves to rocks as they wait for food—from the Puget Sound in Washington. The suction cups on the underside of a clingfish allow it to hold on to the rocks against the force of incoming waves, providing a unique approach to improving suction force. Typical suction cups have smooth discs, but the clingfish has features that are irregular, similar to a tongue. Small hairs create friction that allow the suctioning to stand firm, even when hit by forces equal to 150 times its body weight. Researchers are focused on replicating “both the adaptability of the material to rough surfaces and the high friction at the margins of the suction cup that prevent the cup from being dislodged easily.” Mimicking features of the clingfish could prove to be helpful in a myriad of ways: pulling away tissue without puncturing it during delicate surgeries, tracking endangered orca whales in a less invasive way, improving traction for climbing wet surfaces, and much more. 3

Did you know that the movements of animals and insects

are remarkably similar to key factory tasks such as

gripping, positioning, and moving items? For that reason,

nature’s processes have increasingly become a source of

design inspiration, with emerging biomimicry applications—

ranging from packaging automation to surgical tools—

making progress toward commercial viability every day.

NATURE’S Blueprint

PACKAGING

33

SUPPLY CHAIN & LOGISTICS

GRAB AND GORetail juggernaut Amazon.com announced plans to open a brick-and-mortar store in Seattle by late 2017 that subverts the checkout line altogether. Shoppers

will use a new Amazon Go app to add desired products to their physical and digital shopping carts and then leave the store without waiting in a checkout line. More specifically, shoppers enter the store with the Amazon Go app on their smart devices and scan a QR code; shoppers then scan the app on a “futuristic turnstile.” Everything placed in the shopping bag is automatically added to a digital shopping cart; the system even recognizes when items are put back on store shelves. Once shoppers have picked up all their items, they simply walk out of the store, and receipts of the amounts charged are sent to their mobile phones.4

Amazon’s technical setup (a combination of computer vision and deep-learning technologies) recognizes when a shopper adds a product to his or her cart and automatically charges his or her Amazon account for the selected groceries when that shopper leaves. Advantages of the new store format include lower operating costs due to reduced staffing needs and the

ability to collect shopping data from customers and use it to make more targeted suggestions. The store will only be open to Amazon employees at first but will open to the general public early in 2018. The pilot store will sell prepared foods and grocery products in an 1,800-square-foot building—smaller than today’s superstores—but it’s the first step of a much grander plan. Amazon’s goal is to build 2,000 stores within the next decade.5

FAST AND FRESHIndependent grocer California Fresh Market recently opened a second location in San Luis Obispo, California, that allows customers to skip checkout lines thanks to technology from FutureProof Retail. While shoppers scan product bar codes using the store’s app, the app maintains a running total and provides shoppers with information about store specials. Once it’s time to check out, the shopper scans a QR code and submits

payment via Apple Pay or a credit card. New York–based mobile developer FutureProof Retail claims that California

Fresh Market is the first to completely discontinue the use of checkout lines in lieu of using its platform.6

The end of the supply chain is often the checkout line, and two innovations

have recently debuted that could someday make the traditional checkout

process obsolete.

BANISHING the Checkout Line

4

HA

VI M

ark

etI

nsi

gh

ts

SUPPLY CHAIN & LOGISTICS

UBER ELEVATE Uber announced its plans for a network of flying cars branded Uber Elevate—an advanced fleet that will consist of on-demand, 100 percent electric aircraft with the ability to take off and land vertically. Unlike plans for flying cars that can both drive on the ground and travel through the air, Uber’s plan consists of vehicles that can lift passengers “over the brutality of traffic jams and congested roads.” Uber does not plan to design or build these flying cars; the company instead hopes to “catalyze the market, bringing together private and governmental parties to solve a pile of technical, regulatory, and infrastructural problems, from battery density to aircraft certification to air traffic control.”

Once the technical, regulatory, and infrastructure hurdles are addressed, Uber plans to pattern Elevate operations after its existing model, enrolling pilots, leveraging its significant customer base and brand equity, providing advice on routes, and collecting a percentage of fares. The company believes the vehicles themselves with be available within five years, predicting that the flying cars will have the ability to fly 100 miles at 150 miles per hour with a pilot and multiple passengers. Uber Elevate is expected to use fixed-wing aircraft that can launch from helipads, swinging propellers forward to fly efficiently at elevations of a few thousand feet. Uber may buy the aircraft or partner with the

Self-driving cars are no longer the hottest thing to soon hit the road.

Transportation-network company Uber and European aerospace company

Airbus have both announced plans for commercial flying cars, with each

expected to debut in approximately 10 years.

COMMERCIAL PLANS for Flying Cars

55

SUPPLY CHAIN & LOGISTICS

manufacturer who will keep the titles to the vehicles. With almost 6,000 helipads currently in the United States (most of them privately owned), the infrastructure needed for a transportation network of flying cars already exists. An Uber Elevate trip from San Francisco to San Jose is projected to initially cost approximately $129. Prices are expected to eventually decrease to $43, with a long-term fare goal of $20. With today’s on-ground options for the same trip running at similar rates (uberX $111, uberPOOL $83, and uberX + Transit $31), the only remaining question for consumers is what they believe the time saved is worth.7

AIRBUS VAHANA & CITYAIRBUSAirbus plans to develop a flying car that would serve as an aerial taxi and cargo transport. The project, “Vahana,” will be managed by A^3, a Silicon Valley–based Airbus subsidiary, with prototype flight tests expected to occur before the end of 2017. Target markets could include transport-service providers, with Amazon and DHL also named as potential customers. Vahana is projected to operate using a ride-sharing model (identical to Uber’s), and company executives predict that the resulting global demand for flying cars could require millions of vehicles for support.

Vehicle design has already been chosen, subsystems are being built and tested, and company executives predict market use as quickly as 10 years from now. However, the biggest challenge remains the development of reliable sense-and-avoid systems to help prevent collisions.

In mid-2017, Airbus also plans to test a parcel-delivery service using a pilotless drone helicopter. The test will take place at the National University of Singapore and will be used to assess costs and levels of efficiency and collect data that drones can fly safely in urban areas. Pilot-phase success is hoped to lead to commercial projects in Singapore before expanding to other countries.

Finally, the last of Airbus’s autonomous aviation efforts includes an electrically operated flying concept called CityAirbus in France and Germany that has multiple propellers to support flight for small groups of passengers. Initially, a pilot would fly the vehicle, but the goal is to transition to fully autonomous operations once regulations are established. The fare for CityAirbus would be comparable to a typical taxi ride, but company executives state the ride would be “faster, more environmentally sustainable, and exciting.”8

AMBITIOUS TIMELINESeveral technological advances could make a 10-year launch horizon feasible, including lighter and more powerful electric motors, batteries with greater energy-storage capacity, and highly sophisticated aviation software. However, some critics believe the timeline for commercialization is overly optimistic. Ali Bahrami, vice president for civil aviation at the Aerospace Industries Association, argues that although the technological advances necessary to commercialize flying cars is possible, in order to be affordable, vehicle flights would need to be autonomous due to the training costs and salaries paid to human pilots.9,10

6

HA

VI M

ark

etI

nsi

gh

ts

SECOND LIFEBrewing giant MillerCoors’ Coors Light brand will be throwing a party all summer, converting its billboards into beer coolers and its kegs into barbeque grills. Part of the company’s “Every One Can” summer campaign, the program will also urge consumers to recycle their beer cans. The campaign was borne out of research insights that reiterated consumer interest in environmentally friendly brands. Though the company has an ongoing commitment to sustainability at a corporate level, the summer campaign will mark the first time sustainability has been used as a key marketing message. Market research results also support the new campaign direction, with many consumers viewing the campaign as positive news and a fresh approach for Coors Light.

To bring the campaign elements to life, Coors Light partnered with global recycling leader TerraCycle to recycle and transform used vinyl material from old advertising billboards. The material will be used to

make beer cooler bags as giveaways in states where it is legal; the bags will also be tagged with messaging that states, “I used to be a billboard.” The brand plans to feature recycled beer kegs that have been transformed into barbeque grills as part of its in-store marketing displays.11

CRAFTY COLLABORATIONCraft brewer Aeronaut Brewing, located just outside of Boston, recently cobranded an imperial session ale in collaboration with rock band, The Lights Out. The result was T.R.I.P. beer, shorthand for “The Reckonings in Pandimensionality,” a craft beer packaged with consumer instructions to tweet #TRIPME to @TheLightsOut and @AeronautBrewing to gain listening access to the album. Band members claim that this is the first time, in either beer or music marketing, that an album was released on a craft beer can. The cobranded approach was designed to create an immersive, sensory experience for the consumer. The beer itself was created after the brewer received a rough cut of the band’s album; Aeronaut then conceptualized a beer that matched the musical themes within the record.12

Consumers can expect to see an entirely new crop of creative

campaigns from beer brands this summer, tapping into current

trends of sustainability and sensory experience to capture

audience interest.

MARKETING

SUMMERBeer Promotions

7

INNOVATIVE APPROACHIn partnership with waste recovery company Suez and upcycler TerraCycle, P&G will soon release a limited-edition bottle of Head & Shoulders shampoo made from 25 percent postconsumer recycled plastic collected from beaches. The world’s first recyclable shampoo bottle made with beach plastic is planned for release in France, with exclusive availability in French Carrefour retail stores.

The collected materials include a range of plastic and nonplastic materials, such as seaweed. At the TerraCycle facility, materials are sorted manually to remove nonplastic items. From there, the plastic is sent to Suez where it is shredded, cleaned, and sorted again into specific plastic categories. Sorted, pure high-density polyethylene is then used as part of the resin mix (25 percent) for the Head & Shoulders bottle. The resulting grey bottle signals the nature of its recycled material origins. P&G’s goal is to illustrate the possibilities of making the unrecyclable recyclable. By the end of 2018, the company aims to have manufactured more than half a billion of the bottles for European retail, which is more than 90 percent of hair-care bottles in P&G’s portfolio, including its brands of Pantene and Head & Shoulders.16

SPORTY SOLUTIONOn November 5, 2016, Bayern Munich football players stepped onto the soccer field wearing Adidas jerseys, also called “kits,” created entirely from plastic waste that washed up on the Maldives shoreline. The waste material was recycled, with its fibers being used to create shirts that were worn a single time. The goal? To draw attention to protecting our oceans. On November 26, a second Adidas-sponsored team, Real Madrid, wore similar shirts.17 The design of the shirt is deliberately clean to reflect the ecological message being presented. The collar logo reads “For the Oceans,” and both the club logo and the Adidas stripes are integrated onto the fabric using an eco-friendly process. Telekom, Bayern Munich’s partner, fully supported the campaign, as did the German Football League and league partner, Hermès.18

More than 8 million tons of plastic are dumped into our oceans each year.

If the pace continues, experts believe that by 2050 there could be more plastic by

weight in the ocean than fish.14 With approximately 150 million tons of new plastic

being generated each year just for one-time use, companies are finding creative

ways to recycle plastic in order to reduce plastic pollution.15

7

RECYCLING

PREVENTING Plastic Pollution

7

8

HA

VI M

ark

etI

nsi

gh

ts

www.havi.com

Credits1Pierce, L. M. (2016, November 4). How Nature Inspires Creative Packaging Automation Solutions, Packaging Direct. Retrieved from http://www.packagingdigest.com 2Festo. (n.d.). eMotionButterflies: Ultralight Flying Objects with Collective Behaviour, Festo. Retrieved from https://www.festo.com 3Society for Integrative and Comparative Biology. (2017, January 7). Bio-inspired Suction Cups Withstand More than Splashes, Science Daily. Retrieved from https://www.sciencedaily.com 4Leswing, K. (2016, December 5). This is Amazon’s Grocery Store of the Future: No Cashiers, No Registers and No Lines, Business Insider. Retrieved from http://www.businessinsider.com 5Fiegerman, S. (2016, December 5). Amazon Opens a Grocery Store with No Checkout Line, CNN. Retrieved from http://money.cnn.com 6Progressive Grocer. (2016, November 10). California Fresh Market Ditches Checklanes, Progressive Grocer. Retrieved from http://www.progressivegrocer.com 7Davies, A. (2016, October 27). Inside Uber’s Plan to Take over the Skies with Flying Cars, Wired. Retrieved from http://www.wired.com8Allen, A. (2017, January 18). Airbus Working on “Flying Car,” Supply Management. Retrieved from https://www.cips.org 9McFarland, M. (2016, October 27). As Uber Makes a Pitch for Flying Cars, Transit Hype Jumps the Shark, CNN. Retrieved from http://money.cnn.com 10Wang, B. (2017, January 3). Near Term Improved Batteries Will Enable Commercialized Flying Cars, NWO Report. Retrieved from https://nworeport.me 11Schultz, E. J. (2017, January 26). Turning Billboards Into Beer Coolers: Behind Coors Light’s New Environmental Push, Advertising Age. Retrieved from http://adage.com

12Monllos, K. (2017, February 1). This Band Went to a Brewery to Release Their Album and Created a Beer to Go With It, ADWEEK. Retrieved from http://www.adweek.com 13Plastic Oceans. (n.d.). The Facts, Plastic Oceans. Retrieved from http://www.plasticoceans.org 14Mohan, A. M. (2017, January 17). P&G Unveils First Recyclable Shampoo Bottles Made with “Beach Plastic,” Packaging World. Retrieved from https://www.packworld.com 15Plastic Oceans. (n.d.). The Facts, Plastic Oceans. Retrieved from http://www.plasticoceans.org 16Mohan, A. M. (2017, January 17). P&G Unveils First Recyclable Shampoo Bottles Made with “Beach Plastic,” Packaging World. Retrieved from https://www.packworld.com 17Plastic News. (2016, November 7). Bayern Munich Dons Special Kit Made from Recycled Ocean Plastic, Plastic News. Retrieved from http://www.plasticsnews.com 18FC Bayern Munich. (2016, November 4). FCB Unveil Recycled Ocean Plastic Kit, FC Bayern Munich. Retrieved from https://fcbayern.com

Mohawk Everyday Digital uncoated items are manufactured with wind power by offsetting emissions from purchased electricity with Renewable Energy Certificates (RECs) from Green-e certified wind-power projects.

Copyright © 2017 HAVI. All rights reserved. All content, products, and images not owned by HAVI are trademarks and copyrighted properties of their respective owners.