Packaging Management Update

Ben Miyares' Packaging
Management Update®
Monday, January 7, 2008
A weekly summary of packaging
business & technology developments

China’s tough new recycling law covers exports, entire packaging supply chain

China’s central government proposes legislation to govern packaging, waste, recycling industries. If passed, legislation known as Method for Administration of Recycling Packaging Materials, will rank among toughest in world, according to report from PackWebasia.com, Singapore, which has prepared an English language analysis of the new legislation.
Based on “producer pays” principal, law – as drafted – requires brand owners to take back post-consumer waste, impacts entire packaging supply chain including brand owners, printers, converters, equipment suppliers, materials manufacturers and recyclers. In addition, since export markets are not exempt, materials, such as styrene, which is to be banned, will not be permitted in any form of product packaging exported from China.
Under draft law, all packaging must be recoverable, plus either recyclable or degradable. Packaging reduction, lightweighting becomes mandatory. Law also provides incentives for research in materials, technology; calls for establishment of waste recovery, recycling systems; regulates transport, storage of recyclable, recycled materials; sets Recycled Material Trading system to “market” conditions; categorizes materials, production processes as Encouraged, Restricted or Obsolete (banned).
China’s new law stipulates creation of inter-agency enforcement team, sliding scale of penalties including steep fines, criminal proceedings against noncompliant companies, personnel.
In first known recorded instance in China of specific rights being given to the public, whistleblower provisions of the measure give citizens the right to report actions that waste resources, damage environment or result in excessive packaging.Mixture of government investment, grants, subsidies, tax incentives from both central, local governments supply massive funding required to establish recovery/recycling systems throughout country.
China’s New Packaging Legislation report published by PackWebasia owner, EP Resources Pte. Ltd., provides annotated English translation of proposed law, analysis from sources inside China, executive summary, description of industry structure, major end-use markets, assessment of impact on stakeholders, Catalogue of Encouraged, Restricted and Obsolete Materials, sells online for US$1,500. Follow-up: Stuart Hoggard, Editor/Publisher, EP Resources Pte, Ltd.; ThePublisher@packwebasia.com; Link: www.PackWebasia.com.   Top of Page



Product trends influence packaging selection in 2008

Rising environmental concern, interest in better-for-you products, other product trends identified by Mintel, Chicago, IL, influence selection of packaging in 2008. In fact, environmental impact related to shipping water cross country, container disposal could cut demand for polyethylene terephthalate packaging as consumers reject bottled water in favor of tap (unless bottled product offers functional benefit like vitamins, minerals or other nutrients). However, demand for barrier packaging could rise as food/beverage producers bow to consumer demand for “clean labels,” or products with no additives, preservatives, artificial colors/flavors. In addition, Mintel predicts manufacturers will provide more information about ingredient sourcing, product manufacturing, packaging. We’ll also begin to see more information about environmental initiatives on company websites. Other trends identified in review of Mintel’s Global New Products Database include luxury home-care products, upscale mass-market, or “masstige,” personal-care products with packaging to match. Mintel also foresees rising interest in experiential shopping where retailers create multisensory experience. Follow-up: Link: www.mintel.com.   Top of Page



Self-assessment tools help guard against contamination

As part of Food Protection Plan, Food and Drug Administration (FDA), Washington, DC, posts self-assessment tools to help minimize risk of intentional contamination of foods, cosmetics. Tools instruct participant to answer questions related to food protection measures like checking for product tampering; identification of security procedures, responsibilities; evaluation of response strategies in event of product tampering or other intentional contamination. User-friendly, on-line questionnaires support recently updated Food and Cosmetic Security Preventive Measures Guidance documents, help operators of food/cosmetic establishments, businesses that produce, process, store, repack, relabel, distribute, sell or transport foods, food ingredients, cosmetics minimize risk of malicious, criminal or terrorist actions involving products under their control. Accessible online, tools target five groups: food producers/processors/transporters; importers/filers; cosmetics processors/transporters; dairy farms/bulk milk transporters/bulk milk transfer stations/fluid milk processors; retail food stores/foodservice establishments. Follow-up: Link: www.cfsan.fda.gov/~dms/defguids.html.   Top of Page



Funding supports research to improve parenteral packaging

Schott North America, Lebanon, PA, receives $800,000 in research funding from US Department of Defense, Washington, DC. Company plans to study interaction between biotherapeutic drugs, glass packaging, hopes to find ways to prevent adsorption, aggregation, precipitation that cause drugs, vaccines to lose potency. Minimizing package/product interaction would improve government’s ability to stockpile ready-to-inject vaccines, treatments, accelerate response to bioterror attacks, pandemics. Currently, many stockpiled drugs are lyophilized (freeze-dried). Not only is lyophilization process relatively costly, but reconstitution requires several minutes per dose, slowing administration, potentially increasing deaths, number/severity of illnesses. Liquid biotherapeutic formulas in pre-filled syringe could dramatically reduce response times, improve mortality rates. “This appropriation will enable us to develop new pharmaceutical packaging assessment tools and solutions,” says Sam Conzone, PhD, director of SCHOTT North America’s Regional Research and Development. “With these solutions, we will be able to aid in the preparedness of the US government for quickly disseminating vaccines and treatments in the event of a bioterrorism attack.” Follow-up: Brian Lynch, +1 914-831-2200; Link: www.schott.com.   Top of Page



Acquisitions boost bottle, closure capacity at Berry Plastics

Two acquisitions boost capacity at Berry Plastics Corp., Evansville, IN. Acquisition of MAC Closures, Inc., Waterloo, QC, which was finalized in December 2007, enhances presence in Canada, adds production facilities in Oakville, ON, as well as Waterloo. MAC Closures injection molds stock or custom caps/closures, serves US, Canadabased private-label, national brand owners, distributors in pharmaceutical, nutraceutical, personal care, amenity, household/industrial chemical industries. Terms of deal remain undisclosed. “The acquisition of MAC Closures is a continuation of Berry’s strategic plan to expand our North American position by combining with industry-leading companies…,” says Ira Boots, chairman/ceo of Berry Plastics. In second deal, Berry Plastics intends to pay approximately $500 million in cash for Captive Plastics, Inc., Piscataway, NJ, anticipates closing before end of 1Q08. Captive blow molds bottles, injection molds closures for food, healthcare, spirits, personal-care markets at 13 production facilities in US. Follow-up: Containers +1 812-306-2846, Closures, +1 812- 306-2696; Link: www.berryplastics.com.   Top of Page



Smurfit-Stone recovers 6.6 million tons of paper in 2006

Smurfit-Stone Container Corp., Creve Coeur, MO/Chicago, IL, recovers approximately 6.6 million tons of paper, plus almost 128,000 tons of non-paper recyclables in 2006, according to 2007 Environmental and Social Responsibility report. As one of world’s largest paper recyclers, company recycles 2.5 million tons of paper internally into paperboard, paper-based packaging products in 2006, sells remainder to mills in US, other countries. Other milestones include installation of equipment to recover more recyclable materials, reduce emissions. Report also discusses Smurfit-Stone’s efforts in safety, conservation, forest management, product certification. Follow-up: Link: www.smurfit-stone.com.   Top of Page



Cap liner stays in place, ensures good seal

Lockliner cap liner from Innovative Molding Inc., Sebastopol, CA, remains seated in closure prior to capping, ensures good bond during post-capping induction sealing. Liner system replaces traditional round paperboard-backed foil liners that are prone to curling, as well as tri-tab liners that forestall curling, but may distort eddy currents during induction sealing, thus compromising seal integrity. Five protruding extensions hold Lockliner cap liner in place so it doesn’t bow, bend, creep, curl or blow-out of closure during shipping or warehousing. At same time, design minimizes disruption of eddy currents during induction sealing because tabs cover larger area around perimeter, measuring roughly twice as wide as tri-tab extensions, but 66% shorter. Transition to Lockliner cap liner requires no adjustments to existing capping or induction sealing equipment. Innovative Molding supplies Lockliner cap liners for 110-millimetre (mm)- diameter caps, plans to offer additional sizes as small as 63mm. Options include paperboard-backed foil as well as synthetic-backed constructions suitable for liquid or dry products, hot or ambient fills, plastic or glass containers. Follow-up: Rodger Moody, vp of Sales, +1 707 829 2666, rmoody@Innovativemolding.com; Link: www.innovativemolding.com.   Top of Page



Torpedo-shaped HDPE bottle delivers heavy liquids

Striking pearl red high-density polyethylene (HDPE) bottle accommodates different closure styles to handle wide array of products. Continental Packaging Solutions, Chicago, IL, develops 8- ounce torpedo-shaped container with 28-400 polypropylene closure for transmission or brake fluid. However, compatibility with wide array of closures such as push-pull caps, trigger sprayers, extends potential applications far beyond automotive world. Continental plans to add 16- , 24-, 32-ounce sizes, could engineer new molds to produce custom sizes. Follow-up: Robb Zurek, sales department, +1 312-433-0723, rzurek@continentalpackagingsolutions.com; Link: www.continentalpackagingsolutions.com.   Top of Page



Canner recalls green beans due to botulism danger

After product collected during inspection by US Food and Drug Administration, Washington, DC, tests positive for Clostridium botulinum, New Era Canning Co., New Era, MI, recalls 1,026 cans (171 cases) of GFS Fancy Blue Lake Cut Green Beans due to danger of botulism poisoning. Recall involves #10 (6 pound, 5 ounce) cans with lot code 19H7FL, UPC 93901 11873, distributed by Gordon Food Service, Grand Rapids, MI, to retailers, restaurants, foodservice institutions in Alabama, Arkansas, Georgia, Illinois, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Tennessee, Virginia, sold through GFS Marketplace stores in Indiana, Kentucky, Tennessee. Recall advises customers to double bag affected products, avoid skin contact or inhalation. No illnesses associated with recalled product have been reported.   Top of Page



Study presents statistics on clear barrier films

Barrier film report from Packaging Strategies, West Chester, PA, details market segmentation, fastest growing applications via tables, figures, case studies. Transparent Oxide-Coated Films for Packaging, Global Markets, Technologies, and Economics 2007-2011 report discusses three major types of oxide-coated films aluminum oxide (AlOx), silicon oxide (SiOx), AlOx/SiOx mix, which account for 74%, 25%, and 1% of market, respectively. Topics include end-use, geographic region, coating type, coating process, substrate type, packaging format, suppliers. Study also forecasts growth, provides commentary on competitive films such as polyvinylidene chloride-coated films; Besala film from Kureha Chemical Co. Ltd., Tokyo, Japan; Kurarister film from Kuraray Co. Ltd., Tokyo, Japan; Aclar films from Honeywell Specialty Materials, based in Morristown, NJ. Report costs $2,995 for electronic delivery. Followup: Karen Vaillancourt, national sales manager, +1 610-436-4220, ext. 8511, orders@packstrat.com; Link: www.packstrat.com, click on Studies.   Top of Page



GPI calls for entries in Clear Choice Awards competition

Glass Packaging Institute (GPI), Alexandria, VA, requests entries in 18th annual Clear Choice Awards. Competition honors glass packaging designs in North America on basis of image, marketability, sustainability, product success. Winners receive allexpenses- paid trip to Las Vegas, NV, to attend Clear Choice Awards presentation during Food Marketing Institute (FMI) Show 2008, 4-7 May 2008. Winning entries will be displayed at FMI Show as well as at PACK EXPO International, 9-13 November 2008 at McCormick Place, Chicago, IL.   Top of Page



Gerresheimer expands presence in PET packaging for pharma

Gerresheimer AG, Düsseldorf, Germany, expands capabilities in polyethylene terephthalate (PET) packaging for pharmaceuticals with acquisition of EDP SA, Epila, Spain. Deal also opens doors to Spanish, South American markets. EDP operates three plants, two in Spain (Zaragoza, Valencia), one in Buenos Aires, Argentina, generates about US$47 million in annual revenue. “Regional expansion opens up important new growth markets for our Plastic Systems Division,” says Dr. Axel Herberg, ceo of Gerresheimer, which is best known for its glass pharmaceutical packaging. “At the same time, EDP ideally complements our existing product portfolio thus offering globally exploitable synergies,” he adds. Participants expect transaction to close by end of January 2008. Follow-up: Burkhard Lingenberg, director corporate PR & marketing, +49 211 / 6181-250; Link: www.gerresheimer.com.   Top of Page



Investor acquires owner of source tagging technology

Columbia River Resources Inc., Vancouver, BC, Canada, moves into radio frequency identification (RFID) with acquisition of Traxxec Ltd., London, UK. Developer of RFID-enabled bottles licenses its patented source tagging technology exclusively to Rexam Pharma, London, UK. Traxxec expects 15-year licensing agreement to generate $10 million in royalty payments during 2007-2009 period. Source tagging process eliminates need for separate tagging operation, allows containers to be tracked from beginning of filling process. Columbia appears to be assembling portfolio of advanced-technology healthcare-related companies, purchased Medify Solutions Ltd., Leeds, UK, provider of patient information on mobile devices, in November 2007.   Top of Page



Upstream: Nova-Pack…

Why don’t we see more glass-to-polypropylene (PP) conversions for hot-filled, retortable foods/beverages? Discussion at Nova-Pack 2008 (www.schotland.com), 11-13 February 2008 at Ginn Reunion Resort, Orlando, FL, by Kortec Inc., Ipswich, MA; Ball Corp., Broomfield, CO, describes new technology that overcomes hurdles related to multilayer preforms, clarity of PP barrier containers…   Top of Page



-- Ben Miyares, editor/publisher
-- Hallie Forcinio, managing editor
-- Pat Magee, contributing editor

Copyright 2006 Packaging Machinery Manufacturers Institute (PMMI), 4350 North Fairfax Drive, Suite 600, Arlington, Virginia (USA) 22203.

Editorial offices: 31408 Narrangansett Lane, Bay Village, Ohio (USA) 44140-1068; Tel: +1 440-892-0998; Fax: +1 440-892-0208; Email: bmiyares@packmgmt.com. All rights reserved. No part of this publication may be redistributed or reproduced in any form without the written authorization of the publisher.