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Use the links below to jump to headlines in this week's update.

Observation & Commentary: Here now: labels that tell you where the meatloaf’s from; Coming later: tattle tags

Packaging triples cheese shelf life

Barry-Wehmiller acquires Perplas Division

Container maker creates Consumer Packaging Group

Together at last: Tetra and Sidel

Alcan Pharma cuts label change lead time with new press

Scavenger removes acetaldehyde from PET

New wines debut in updated bag-in-box

DuPont hikes EVA copolymer prices

UK establishes five-a-day portion logo

Huhtamäki, Finnair co-pilot package recycling project

French perfume cartons shine in MeadWestvaco paperboard

Software gives remote users HMI access

Graham reformulates IPO

Special edition Wheaties carton honors Jesse Owens

Changeover: Ready Pac… PalWeb…

ShortRuns: Resina West… American Water Star… IP…

Upstream: Packaging Update Conference/Exhibit…

Earnings Update: AEP Industries…

Packaging Management Update®
iRead the latest issue below. You may also browse the PMU archive to find articles dating back to 1998.
 

Ben Miyares' Packaging Management Update®
Monday, January 20, 2003
A weekly summary of packaging business & technology developments
Observation & Commentary: Here now: labels that tell you where the meatloaf’s from; Coming later: tattle tags

Last week I looked into the future – the near future and the somewhat more distant – and saw that your package labeling is going to change, in some cases dramatically. A Food & Drug Law Institute (FDLI) conference provided the peek into the near future. A meeting of advocates of radio frequency identification (RFID) tagging offered longer-term visions of an era of tiny on/in-package electronic chips that will broadcast volumes of processor, consumer, distribution and transaction data about products - data that simply can’t be provided by conventional labels.

The FDLI conference presented “FDA & USDA Perspectives on Labeling” and what several regulators referred to as “emerging label issues”: irradiation labeling; natural, organic, fresh and bioengineered ingredients; statements about allergens and “one of the following” ingredient listings; voluntary claims and country of origin labels. The FDA and the USDA are working cooperatively on rules governing the who, what, how, when and where of these special food labeling issues.

You might be tempted to blow off some of the rules – country of origin labeling, for instance – because they require retailers, not processors, to change labels. But, you know how that’s going to work. Retailers will require processors to provide the data. Processors will pass back the added cost of tracking and reporting, say, a meatloaf’s origins (Was the livestock born, raised and slaughtered in the US? Only if the answer to all three questions is yes can it be labeled of US origin. If the stock was born in Mexico, raised in Argentina and slaughtered in the US, labels must spell out what happened where). Retailers will pass the cost to consumers of meatloaf, produce and other foods who often care less about where their food is coming from than its rising cost.

At the RFID conference, Gillette and the Auto-ID Center at MIT said they’ve developed “smart shelves” with RFID tags that can catch shoplifters in the act. And CVS/Pharmacy revealed plans to test RFID tags on prescription bottle and vial labels. Tags will automatically nag patients (and tell their doctors) when their prescriptions aren’t picked up or are past their renewal dates.

Regulators are waiting to hear from industry on some of the labeling issues and Gillette and CVS are mostly applying their tiny tags by hand. But, before the regulatory deliberation and technology testing ends, the packaging supply chain will be challenged to warrant and automate both the product labeling and tag application processes. Get ready.

- Ben Miyares

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Packaging triples cheese shelf life
Industry, academic partners in Biopack work on project funded by European Union, Brussels, Belgium, to create bio-based active packaging for cheese. Biopack combines natural polymers such as polylactic acid, poly 3- hydroxy-butyrate with high-capacity oxygen scavengers, slow-release preservatives encapsulated in cyclodextrins to boost cheese shelf life from traditional two or three months to up to nine months. Material continues to protect cheese after packaging is opened, retards development of mold, rancid off-taste. Researchers under Coordinator Grete Bertelsen of the Centre for Advanced Food Studies at the Royal Veterinary and Agricultural University, Frederiksberg, Denmark, report technology also is applicable to packaging for other products including meat, fruit, and vegetables.Follow-up: Grete Bertelsen, +45 3528 3212; Fax: +45 3528 3190; email: grb@kvl.dk; Link: www.biopack.org.  Top of Page



Barry-Wehmiller acquires Perplas Division
Barry-Wehmiller Companies, Inc., St. Louis, MO, acquires assets, business of change parts division of Perplas Inc., Bacup, UK. Division produces change parts for medical, pharmaceutical, food, beverage and personal care markets. Barry-Wehmiller intends to integrate acquisition into its Zepf subsidiary, Clearwater, FL, which includes existing change parts manufacturing facilities in St Alban's, England, Tampa, FL. Acquisition of one of UK’s largest manufacturers of change parts broadens Zepf customer base in Europe, boosts change part manufacturing capacity.  Top of Page



Container maker creates Consumer Packaging Group
Consolidated Container Co. (CCC) LP, Atlanta, GA, merges Continental Plastic Containers (CPC), Custom divisions to form 20-plant Consumer Packaging Group under leadership of Jeff Greene, former svp for CPC. Henry Vogel, former vp for Custom Division, assumes duties as vp/Operations for new Group. Realignment also moves CPC plant in Santa Ana, CA, into Dairy, Water, Juice (DWJ)-West region, while CPC plants in Atlanta, GA, Lakeland, FL, now fall into DWJ-South region. CCC also plans to form CCC Engineering and Development Center (EDC) by closing Engineering Center in Elk Grove, IL, moving some operations of Solution Center from Elk Grove to Atlanta. New EDC facility, co-located with CCC plant on Indeco Dr., focuses on broader range of technologies, customers. Staffing includes about 25 transfers from Elk Grove facility, other company locations. In other news, CCC amends existing credit agreement to reduce bank amortization for 2.5 years, add senior term loan for working capital, other purposes.  Top of Page



Together at last: Tetra and Sidel
On-again, off-again merger between Tetra Laval, Lausanne, Switzerland, Sidel Group, Octeville-sur-Mer, France, receives blessing from European Commission, Brussels, Belgium. Originally rejected on competitive grounds in October 2001, Commission reconsiders after October 2002 annulment of its decision by Court of First Instance, Tetra presents updated data. Clearance requires Tetra to license its Tetra Fast stretch blowmolding (SBM) technology, currently in field tests, which uses explosive hydrogen/oxygen reaction to form polyethylene terephthalate bottles, could evolve as alternative to Sidel’s traditional SBM equipment based on compressed air. Chemical reaction reportedly delivers sterilizing effect, reduces costs. Only one potential stumbling block remains: Commission has appeal of Court of First Instance annulment pending before Court of Justice.  Top of Page



Alcan Pharma cuts label change lead time with new press
Alcan Pharma Center, Shelbyville, KY, reduces lead time for copy changes on pharmaceutical packaging by installing new four-color Rotomec 3000-5 ES gravure printing press with in-line coating capability from Valmet Converting, Bedfordshire, UK, member of Metso Corp. of Finland. Rotomec ES technology allows quick changeovers, even on short runs. Press accommodates both aluminum foil structures, various films. Installed model features four printing stations with high-efficiency dryers, which offer up to 30% more efficiency than standard dryers.Follow-up: Sales Manager, +44 1234 852 553; Fax: +44 1234 851 151; email: sales.rotomec@valmet.com; Link: www.valmetconverting.com.  Top of Page



Scavenger removes acetaldehyde from PET
ColorMatrix Corp., Cleveland, OH, commercializes acetaldehyde (AA) scavenger for use in applications where levels cannot be controlled sufficiently with use of low intrinsic viscosity, water-grade PET resins, close control of injection molding process. Natural byproduct of PET processing, acetaldehyde (AA) can cause off-taste in water. Scavenger reduces preform AA to less than 1 part/million (ppm) without affecting production efficiency or physical properties of container. Without scavenger, water in 20-ounce PET bottles stored at 22o C can build up AA level of 60 parts/billion (ppb) in one year. ColorMatrix will present results of field trials of scavenger-treated water bottles at Nova-Pack Americas 2003 Conference, 3-4 February in Orlando, FL.Follow-up: Link: www.schotland.com.  Top of Page



New wines debut in updated bag-in-box
(click to enlarge)
Bag-in-boxes of new Almaden Red, White Sangria from Canandaigua Wine Co., Concord, CA, feature festive graphics designed by Tucker Design, Adelaide, Australia, incorporate Twist 'n Serve spout in citrus colors of lime green, orange yellow. Bag-in-box packaging holds 5 litres of wine, retains standard Easy Carry handle, Last Drop Tilt Tab to ensure efficient dispensing. "Almaden is taking the box wine category in a new direction with two new flavors and a fun, energetic and vibrant design," says Diana Pawlik, Almaden brand manager. "The new positioning will broaden our consumer base while still appealing to our core users." New product debuts nationwide in January 2003, retails for $12.99.  Top of Page



DuPont hikes EVA copolymer prices
DuPont Packaging & Industrial Polymers (P&IP) increases North American price for Elvax brand ethylene vinyl acetate (EVA) copolymer resin by $0.05/pound, effective 1 February 2003, as contracts allow. Feedstock costs essentially have doubled in past 12 months. Applications for Elvax resins include flexible packaging, hot-melt adhesives and a variety of nonpackaging applications.Follow-up: Marketing Manager, +1-800-438-7225; Fax: +1-302-992-3495; Link: www.dupont.com/industrial-polymers/.  Top of Page



UK establishes five-a-day portion logo
UK Department of Health, London, England, designs 5 A DAY trademark for use on fresh fruits, vegetables to help consumers determine what constitutes one portion. Goal is to help UK consumers eat five portions of fruit or vegetables each day as recommended by UK Food Standards Agency, London, England. Logo begins to appear this spring on fresh, chilled, frozen, canned, dried fruits/vegetables, 100% fruit/vegetable juices. How trademark might be used for composite foods with added sugar, salt or fat remains under review. "The evidence shows that eating at least five portions of fruit and vegetables each day has very real health benefits,” says Public Health Minister Hazel Blears. “It could help prevent up to 20% of deaths from our nation's biggest killers such as heart disease and some cancers. Yet most people aren't eating enough. Part of the problem is confusion about what counts and what constitutes a portion,” she explains. One portion consists of about 80 grams – equivalent to medium apple, banana, bowl of mixed salad or 3 tablespoons of peas or carrots. Organizations using 5 A DAY logo must apply for license, demonstrate that product meets nutritional criteria set by Department of Health.Follow-up: Link: www.doh.gov.uk/fiveaday.  Top of Page



Huhtamäki, Finnair co-pilot package recycling project
Espoo, Finland-based consumer packaging company Huhtamäki joins forces with Finnair to develop sorting/recycling system for single-serve packaging waste generated by airline’s foodservice operations. Project recycles paperboard, molded fiber into fiber cores, burns plastic packaging to generate thermal energy.Follow-up: Karri Koskela, Environmental Manager, +358-9-6868-8409; email: karri.koskela@fi.huhtamaki.com; Link: www.huhtamaki.com.  Top of Page



French perfume cartons shine in MeadWestvaco paperboard
(click to enlarge)
France-based perfume manufacturer Rochas opts for trademarked Crescendo one-side-coated paperboard from MeadWestvaco, Stamford, CT, for cartoning new AquaWomen perfume bottles. Premium paperboard exhibits ultra-bright, blue-white appearance, mirror-smooth surface, outstanding graphic capabilities, superior embossing/debossing, foil stamping, film/foil laminating, compatibility with other finishing processes. Crescendo is fully recyclable, manufactured from 100% elemental chlorine-free wood pulp under ISO 9002 quality assurance standards, strict environmental safeguards.Follow up: Marketing Manager, +1 212-889-6401; Fax: +1 212-532-4062; Link: www.meadwestvaco.com.  Top of Page



Software gives remote users HMI access
Remote, casual users gain access to human machine interfaces (HMIs) via standard Web browser to program, monitor, control packaging lines/machines over Internet or intranet. Cimplicity DataViews software from GE Fanuc Automation North America, Inc., Charlottesville, VA, resides on Web server, minimizing cost of ownership, broadening accessibility. Server features concurrent user licensing so as soon as one user finishes accessing system, license is free for next user. Software is compatible with Windows platform as well as various Unix platforms.Follow-up: GE Fanuc Information Center; +1 800-648-2001; Fax: +1 434-978-5205; email: gefanuc@gefanuc.com; Link: www.gefanuc.com.  Top of Page



Graham reformulates IPO
Graham Packaging, York, PA, resurrects initial public offering (IPO) postponed last year. Molder of custom polyethylene terephthalate containers reduces size of offering from 16.7 million shares to 13 million, boosts expected price/share range from $13.50-$16.50 to $16-$19. Date for IPO remains to be set.  Top of Page



Special edition Wheaties carton honors Jesse Owens
(click to enlarge)
In honor of Black History Month (February), General Mills, Minneapolis, MN, issues special edition 18-ounce carton for Wheaties® honoring track star Jesse Owens, winner of four gold medals at 1936 Olympics, holder of many world records, recipient of Medal of Freedom. "Jesse Owens truly exemplifies what it means to be a Wheaties Champion," says Brian Kittelson, Wheaties marketing manager. "He clearly conquered many barriers to achieve greatness. Jesse Owens is a great addition to the Wheaties family." Wheaties – The Breakfast of Champions® slogan dates from thirties.  Top of Page



Changeover: Ready Pac… PalWeb…
Former US Secretary of Agriculture Dan Glickman joins board of directors of Ready Pac Produce, Irwindale, CA, producer of premium fresh-cut salads, fruits, vegetables… Warren F. Kruger, director of PalWeb Corp., Dallas, TX, takes over president/ceo duties from Paul A. Kruger, who remains chairman, loans plastic pallet maker $7 million to refinance debt, provide working capital; other departures include Terri Metzger, vp of Corporate Communications; Julie Barksdale, corporate secretary; Lyle W. Miller, director… Manufacturer of filling equipment for powders/granules/flakes/aerosols, plastic bottle unscramblers, Nalbach Engineering Co., Inc., Countryside IL, names Gary Lange vp of sales, Ed Atwell vp of marketing to replace retiring vp of sales & marketing Graeme Warner… Leading supplier to paper-based packaging industry Weyerhaeuser Co., Federal Way, WA, appoints Patricia M. Bedient as vp-strategic planning, replacing Sandy D. McDade, newly promoted svp, Canada operations… David Oskin, evp, head of packaging group, ends 27-year career at International Paper, Stamford, CT…  Top of Page



ShortRuns: Resina West… American Water Star… IP…
Resina West, Inc. acquires assets of New Resina Corp., Brooklyn, NY, opens new headquarters/manufacturing facility in Murrieta, CA, to produce full line of Resina equipment, including automatic screw cappers, internal plug inserters, fitment applicators, inner sealers, friction lid placers… To support new line of beverages packaged in mini-sip pouches (sold under Cal-Sun brand name), American Water Star Inc., Las Vegas, NV, acquires Nevada-based American Distribution & Packaging Inc., specialist in packaging/distribution of nonbottled products… Excellence in Flexography Award Competition sponsored by Flexographic Technical Association (FTA), Ronkonkoma, NY, www.flexography.org, extends deadline for entries to 24 January 2003… Citing weak economic conditions, reduced demand from quick-service restaurants, stiff competition for remaining business, International Paper, Stamford, CT, decides to close foodservice packaging production facility in Hopkinsville, KY, by end of 1Q03, impacting approximately 300 employees… Miller Brewing Co., Milwaukee, WI, closes brewery in Tumwater, WA…  Top of Page



Upstream: Packaging Update Conference/Exhibit…
Schotland Business Research, Inc., Skillman, NJ, schedules NOVA-PACK AMERICAS 2003 Conference on Polyester Containers for Food & Beverages, 3-4 February 2003, Hilton Hotel, Walt Disney World Resort, Orlando, FL… Florida Chapter of Institute of Packaging Professionals, Naperville, IL, schedules Packaging Update Conference, Tabletop Exhibit, 20-21 February in Orlando, FL… Texas Instruments RFID (radio frequency identification) Systems, Plano, TX, commits to be Signature Sponsor of RFID World Conference & Exhibition, 13-14 May 2003, Fort Lauderdale Convention Center, Ft. Lauderdale, FL, produced by Shorecliff Communications LLC…  Top of Page



Earnings Update: AEP Industries…
Plastic packaging manufacturer, AEP Industries Inc., South Hackensack, NJ, reports 4Q02 sales of $177.3 million, representing 10.1% increase over 4Q01 sales of $161.1 million; records net sales for entire 2002 of $660.6 million, 3.3% higher than 2001 sales of $639.7 million…  Top of Page



-- Ben Miyares, editor/publisher
-- Hallie Forcinio, contributing editor
-- Judy Rice, contributing editor

Copyright 2003 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.
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