The Revolution in Consumer Product Packaging
Wednesday, October 15th 2008 from 9:00AM - 12:00PM
THE PACKAGING REVOLUTION
Report of the Wednesday, October 15th, 2008 Conference

Speakers:
•    BASF : Giorgio Zambonini, Sales Manager in Italy and Southern Europe
•    CASINO : Thibault Pinotaux, Person in Charge of Package Optimization
•    DANONE : Bruno Siri, Packaging Development Engineer
•    M-REAL : Christophe Baudry, Manager of Western Europe – Consumer Packaging
•    TETRA PAK : Patrick De Noray, Environmental and Exterior Relations Manager

Coordinator: Henri Saporta, Editing Manager, EMBALLAGES MAGAZINE


Presentation of the Packaging Sector

The packaging sector comprises the seventh or eighth sector of activity in France. Each year it generates a turnover of 120 billion Euros.
The agri-food sector is at the front of the market in matters of packaging (more than 70% of the market). The hygiene, beauty, pharmacy and more globally the whole French industry are equally affected by this market.
The materials most used by the packaging industry are cardboard (in the lead in terms of tonnage), plastic (in the lead in terms of consumer units), and glass, wood, but also the complexes, that is to say products that are formed from combining materials.
At this time household packaging make up five million tons, or 1% of waste produced by the French economic system (far behind the building and agricultural sectors).
In terms of balance, it is estimated today that 60% of packaging is recycled. The new objective fixed by eco-packaging is to attain 75% recycled packaging by 2010. The packaging sector is in full revolution as much on the Marketing Plan with respect to the fact that the packaging is the first means of product distinction for the consumer, as on the Environmental Plan (sustainable development) with the systems of eco-packaging and development of packaging. It is this last aspect that has been the most developed in the course of this conference.


The Environmental Packaging Revolution from a Distribution Point of View (Casino)

The Casino group has developed a policy in terms of packaging and sustainable development of its products.

The Sustainable Development commitments of Casino products are based on three objectives: To preserve the environment (Gamme Bio, Gamme Green), to combat the social inequalities (development of a Gamme Earth et Savor with a base of products without pesticides and an equitable Gamme Commerce), and to promote a responsible economic development (use of low consumption bulbs, environmental labeling with Index Carbon, etc.).

The Casino group has also developed a methodology of package optimization. This methodology presents three characteristics: It is simple because included in all the invitations it relies on the market turn of existing packages. It is also realistic and in effect, is based on trade with the purchasing and marketing services and must take into account the suppliers constraints. This method is finally adaptable to the type of product considered (case-by-case study). The Casino Group is also working on an eco-design method of packaging to realize savings in terms of volume and weight of packaging. On the other hand, Casino’s current policy is not to favor the use of biodegradable plastics.

In terms of results, the Casino Group has realized savings in matters of tonnage, from 44 tons in 2006, 268 tons in 2007, and for now 400 tons in 2008, that is to say an accumulated savings of more than 700 tons of packaging. It has also executed an enormous task of internal awareness (at the level of those responsible for quality in purchasing and marketing services), but also at the level of suppliers who more and more propose optimized packaging. Finally, they have notably augmented the workforce to cover all the sectors and to achieve awareness interventions.


The Environmental Packaging Revolution From the Point of View of Brands (Danone)

The Danone Group’s position in terms of sustainable development is observed principally at three levels:
-    A first basic level which is the Company’s adaptation of regulations, particularly to the European standards and directives
-    The second level is based on a concept of voluntarism and the engagement of the company entrepreneurial
-    The last level of societal innovation in which the sustainable development is integrated into the management of the company and the workers.
-    First, the packaging represents a symbol for the brand. In fact, it is indispensable for its functionality, particularly in terms of the protection of its products. In addition, it most often constitutes the first advertising medium, which incites the purchase. Finally, the package is a carrier of the brand’s image, or even the company’s.

The packaging also represents a symbol for the stakeholders of the Danone Group, notably:
-    The consumers: A survey completed in 2007 has revealed that 46% of consumers consider packaging meddlesome, 41% consider it necessary to protect and transport the product.
-    The Associations of Consumers: A campaign for awareness « Bottles and Plastic Films, STOP all PLASTOK! » was carried out at the end of 2005 in the hope of causing the group leaders to change their policy in matters of sustainable development.
-    The customers: Initiatives taken concerning carbon labeling (Casino, Carrefour, Tesco) and of the suppliers’ notation on the value ratio of packaging to the products (Wal-Mart).

Concerning the competitive world, Danone Group is attacked particularly by the SEDIF (French Water Syndicate for the Isle of France) which advocates the consumption of water from the tap feasible without a bottle. Furthermore, public authorities, such as the Marie de San Francisco, which prohibits bottled water or the Grenelles of the Environment who are also working for Sustainable Development.  
 
The Danone Group has acted on what concerns the inter-professional groups: The yogurt container, for example, has gone from 5.8 grams in 1994 to 4.7 grams in 2003. In 2001, Frank Riboud, president of the Danone Group, set a goal to reduce the weight of packaging by 10% in 10 years. This project conducted hand in hand with suppliers allows the group to achieve savings. This example interprets the policy for the reduction of packaging: When the first lines of the Actimel product were launched, the bottle weighed 12 grams. Today, the Danone Group produces a bottle weighing about 5.2 grams in its factories in Poland.

Collaborating with its suppliers and AFSSA (French Association for the Sanitary Safety of Food) Danone has launched studies pertaining to recycling, in order to approve the possibility of putting recycled PET (Polyethylene Terephthalate) in its bottle. This has certainly allowed for a 17% reduction of the carbon imprint linked to the packaging.
For Danone, another part of the Sustainable Development assignment linked to Packaging has been to consider the possibility of reshaping the system (even if it seems evident that this cannot be done overnight) and to attempt to restart from a blank sheet in the hope of producing products comprised of less packaging, having a reduced CO2 emission and responding to the customer’s needs regarding (PAV) Ready to Sell.
Finally, the packaging revolution is in some way an « invisible » revolution given that the technological optimizations are not seen in most cases.


The Environmental Packaging Revolution From a Packaging Solution Point of View (Tetra Pak)

The Tetra Pak Group, anxious to minimize the environmental impact of its products all through their life cycle, has asked the Bio Intelligence Service Office to carry out a study based on a comparative analysis of the life cycle of its packaging. A Critical Revue Committee, made up, in particular, of two specialists from the packaging network, has validated this comparative study.
The purpose of this study Analysis of the Cycle of Life (ACV) is triple:
ボ    Knowing the real environmental impact of packaging type « food cartons »
ボ    Having scientific proof of a lesser impact by Tetra Pak packaging on the environment
ボ    Promoting understanding on the part of the public

The Bio Intelligence Services Office has thereby achieved a complete environmental balance by comparing all the milk and fruit juice packaging (cardboard cartons, and bottles in both plastic and glass).
The methodology of the ACV (Analysis of the Cycle of Life) aims to evaluate the environmental impact of packaging at all stages of its cycle of life (extraction of raw materials, manufacturing, filling and packaging at the customer’s, distribution from the processing plant to retail distribution and then end of life.

The specifics of the French context in waste management have been taken into account given that the recycling rate for cartons is a low (31%) as compared to other materials and other countries such as Belgium or Spain, for example.
On the other hand, not only have the impacts linked to containers (milk, fruit juice, etc.) been excluded from the perimeter of the LCA (Life Cycle Assessment) but also the environmental impacts of storage in stores and transporting the product to the consumer.

Five indicators considered as incontestable were selected by the Bio Intelligence Service and finally express the environmental influences of the packaging throughout its life cycle. It is global warming (interesting today, due to the larger number of people), of the original non-renewable energy consumed, of the consumption of non-renewable resources, and acidification of the air and eutrophication.

The results of the study (visible in detail in the presentation from Tetra Pak attached to the report) have identified several strong ideas:


ボ    Concerning the milk market, first the study revealed that a plastic bottle has 72% more impact in matters of global warming than the Tetra Pak carton. It has also demonstrated that one plastic bottle emits 60 grams of CO2 more than a Tetra Pak carton of milk during its life cycle. The lesser impact of the carton on the environment compared to the plastic bottle especially holds true to the fact that this carton is made essentially from wood. Finally, Bio Intelligence Service has calculated that France would economize 100,000 tons of CO2 in one year if consumers would buy cartons of milk instead of plastic bottles.

ボ    Concerning the market for the liter of fruit juice a comparative analysis has been carried out between the environmental impacts of the carton (Tetra Brick), the plastic bottle, and the glass bottle. This analysis has notably revealed that even if the glass bottle has a higher recycling rate, it is much heavier than the carton or the plastic bottle thus gives out a much more important rate of CO2 than the other two forms of packaging along their life cycle.

ボ    Concerning the market for the 250 ml fruit juice, the Bio Intelligence Service Office has conducted a comparative analysis of the environmental impacts observed all along the life cycle of the plastic bottle or the carton. This has revealed that the difference in terms of environmental impact is more significant for these smaller packages especially in respect to the fact that the carton does not need a cap compared with the plastic bottle.


In summary, the ecological footprint of a package resides principally in the resource originally used, for its material. The Tetra Pak advantage lies in part on the fact that they are essentially made from wood, which is a renewable resource, and other parts, which use a minimum of natural resources.


The Tetra Pak group, in partnership with WWE, has registered its approach for the long run and in accordance with the « Three R » rules:
ボ    Renew: Increase the rate of certification of its forests (according to the standard FSC: Forest Stewardship Council)
ボ    Reduce: Reduce the CO2 emissions and its energy consumption (Tetra Pak’s commitment to reduce CO2 emissions by 10% between 2005 and 2010)
ボ    Recycle: Increase the recycling rate: Tetra Pak plans to take a tour of large local communities that have a low ratio in terms of recycling to encourage them to use food cartons. The sorted cartons are sent to sorting centers where they are separated from other materials (glass, plastic). They are then transferred to recycling plants, where the materials they are made of are separated (cardboard, polyethylene, aluminum). The cardboard is thus recycled in the fabrication of paper towels or toilet paper whereas the polyethylene and the aluminum are reused in the manufacture of benches and fence posts.


The Environmental Packaging Revolution From a Bio Materials Point of View

The Bio-Plastics: BASF

BASF is a leader in the chemical industry and uses biodegradable polymers in the manufacture of packages.
Originally, the available resources were oil, gas, coal, and renewable materials. A study revealed that the needs for these resources will grow at least until 2050, even if, for example an inquiry is put forth on oil which is a more and more limited resource. Consequently, renewable resources today have a greater and greater importance, seeing, as they are biodegradable.
The BASF group has well understood this and has developed two biodegradable bio-plastics
manufactured in part principally of renewable raw materials: Ecoflex and Ecovio.

Ecoflex is a plastic stemming from fossil resources. Its attractiveness is based mainly on its ability to be 100% compost able and biodegradable. Furthermore, Ecoflex presents no toxicity, is exempt from heavy metals, and has a biodegradation without impact to the environment and living organisms. It also allows the preparation of different formulations for the development of biodegradable films.
Ecovio is a bio-plastic manufactured in part with renewable raw material and is entirely biodegradable. It is composed of 45% polylactic acid (PLA) obtained in part from corn and 55% of Ecoflex.
Ecoflex and Ecovio’s principal applications: Films for the protection of cultures, for frozen foods (in development), the box bags reusable for green waste bags, films on mulching and nets for fruits and vegetables (application in development).
The biodegradable bags have a much more important advantage (in terms of biodegradability, resistance to perforation and water, resistance to fat etc.) compared with the paper bag or the PE bag.

Biodegradable polymers and/or issues of renewable resources are not the solution to the energy scarcity problems or global warming. On the other hand, they can be one of the elements in the solution if they are used in a pertinent manner.


The Paper Carton: M-REAL

M-Real is a group originating in Finland which are part of the leading producers of cardboard and paper in Europe (1.3 million tons of paper cartons is produced each year: 33 % of the European market share).
They supply high quality cartons and papers, manufactured from virgin fibers, as well as services linked to the packaging domain in 70 countries.  Their principal clients are the printers of boxes, the processors, and the distributors providing the purchase agents in areas of beauty, pharmacy, food etc.
M-Real has had an established rapport with the environment and sustainable development for several years. The group is mainly concentrated in Germany and its products, notably the box (an investment of 100 million Euros in four years).
Its products are based on pure raw materials and virgin fibers (3.6 million tons consumed per year) safe and renewable for humans and the environment and completely recyclable at the end of their life cycle.
The packaging is effective for M-Real as long as it meets the functions of protection and promotion of the product throughout its life cycle. The effectiveness of the packaging is crucial because the latter is essentially the main vector of communication with the consumers. In addition, an effective packaging has among its objectives to reduce the weight of the packaging without minimizing the performance, to obtain a high quality with a low cost per unit, and to increase the awareness on sustainable development.
In matters of sustainable development, M-Real produces lighter boxes using fewer raw materials (reduction of the volume of materials used and transported). It also uses wood, whose origin is known by a traceability system; uniquely stemming from managed, sustainable forests and promoting reliability of the certification systems (70% of the wood used by M-Real is certified).
M-Real, in the interest of clearness, provides its customers with a « Paper Profile » of each one of its products, that is to say a data sheet containing information on the production plant, the origin of the wood and the mode of transport of the latter etc.

Concerning the carbon balance, the calculations are mainly based on data collected from the « Paper Profile ». They have revealed for example that a ton of cardboard at production will emit 259 kilograms of CO2.

Today, M-Real intends to be the favored supplier for all who integrate the environmental dimension within their company and have made sustainable development one of their principal preoccupations.