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

Organic produce packer chooses sustainable, compostable palm fiber trays

Zippered pouches seal in liquid products

Italian law stimulates advance in PET preform lightweighting

HIPS lid changes color to alert customer of hot cup contents

EPA recognizes waste reduction efforts of Anheuser-Busch

Alcoa reorganizes packaging and consumer businesses

Regulations don’t deter plastics as food packaging top choice

Extensible paper strengthens bags

Sara Lee chooses CHEP for distribution

Amcor looks at PLA bottles

Multi-Color makes Forbes’ top 200 “Best Small Companies” list

EarningsUpdate: Packaging Dynamics… Ball…

Changeover: Crown…

ShortRuns: Gel-Pak…

Packaging Management Update®

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Mettler Toledo, Hi-Speed Checkweigher and Safeline Metal Detection

Ben Miyares' Packaging Management Update®
Monday, November 7, 2005
A weekly summary of packaging business & technology developments

Organic produce packer chooses sustainable, compostable palm fiber trays

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Produce packer Oppenheimer Group, Vancouver, BC, Canada, pioneers use of compostable palm fiber trays from another Vancouver-based company, Earthcycle Packaging Ltd. “We believe that this innovative, natural packaging solution will appeal to shoppers who are serious about sustainability,” says John Anderson, Oppenheimer chairman/president/ceo. “Oppenheimer is focusing strategically on our organic range as well as our value-added packaging program, so the Earthcycle alternative is a good fit,” he adds.

In coming months, Oppenheimer plans to offer tomatoes (both cluster, beefsteak), as well as peppers, kiwi in Earthcycle packaging, may add mangoes, pears. Earthcycle derives palm fiber from husks remaining after oil is harvested from palm fruit. This biomass waste traditionally ends up in incinerators or landfills. When composted, palm fiber trays biodegrade in 90 days.

Although the palm fiber feedstock is not yet convertible into clear packages, Peggi Peacock, marketing vice president for Earthcycle, says it can replace virtually any polymer used for rigid packaging.

Earthcycle’s website points out that the material is water resistant and comes in “natural fiber” and vanilla colors, adding: “We can produce other colors, using vegetable dyes, so the biodegradability and compostability of the product is not jeopardized.” The company is currently developing a line of fresh meat, poultry and seafood trays.

Palm fiber’s natural characteristics “make it uniquely suited for packaging,” says the company, noting that the “long strands of the fiber add to the tensile strength of the material, producing a strong and durable package, and a natural wax present in the palm fiber increases the water and oil repellency of the pulp mixture.” The company reports that Earthcycle has passed ASTM D6400 biodegradability and compostability tests.

Palm-fiber produce containers cost about the same as those made from polyethylene terephthalate or polylactide. The company estimates that if the 9.3 billion units of rigid pre-pack produce sold annually in the US converted to Earthcycle, more than 410 million pounds of waste could be diverted from landfills to compost. Other target applications include foodservice, garden products.

Follow-up: Peggi Peacock, +1 604-945-4642, info@earthcycle.com; Link: www.earthcycle.com. Top of Page

Zippered pouches seal in liquid products

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Leak-Proof zipper profiles from Zip-Pak, Manteno, IL, prevent liquid from escaping, limit product exposure to air for optimal freshness despite multiple openings. Once sealed, pressure exerted by contents locks specially-shaped zipper profiles together to create airtight closure that also can sustain vacuum. Internal opening force in excess of 20 pounds ensures zippers remain closed during shipment, storage. Compatible with variety of laminates, polyethylene films, zipper runs on horizontal form-fill-seal, thermoform-fill-seal or pre-made pouch converting equipment with minor modifications.Follow-up: Melanie Gravelle, +1 815-468-6500, melg@zippak.com; Link: www.zippak.com. Top of Page

Italian law stimulates advance in PET preform lightweighting

Lightweight polyethylene terephthalate (PET) preform helps Italian water bottles meet pending Italian law. Law expected to be enacted soon in Italy, would require bars/restaurants to serve bottled beverages rather than open water glasses. Such legislation could spread through much of Europe due to concerns about beverage security, purity. In response, Husky Injection Molding Systems, Bolton, ON, Canada; PET Engineering srl, San Vendemiano, Italy; Swiss closure molder Corvaglia, develop lightweight, 10-gram perform, introduce 200-milliliter (ml) monodose bottle. Previously, sizes smaller than 250-, 330-ml have not been in great demand, so bottle makers use preforms in 16-20 gram range. “These lighter and smaller preforms have two main purposes,” says Moreno Barel, president, PET Engineering. “One is to optimize the existing 250ml and 330ml bottles on the market. The other is to expand the range of bottle sizes, extending it to a wider market for new single-use beverages.” Available initially in Italy, technology will expand across Europe if similar legislation passes or material/cost savings prove attractive. Top of Page

HIPS lid changes color to alert customer of hot cup contents

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Smart Lid from Smart Lid Systems, Sydney, Australia, warns consumers, foodservice personnel that contents of cup are hot by changing color from coffee brown to bright red. As rising heat/steam hits thermoformed high-impact polystyrene (HIPS) lid, color shifts to bright red. Lid returns to brown color as liquid cools. Developed in cooperation with Rema International, Sydney, Australia, plus Japan’s Matsui International, lid eliminates language barriers related to written warnings, prevents spills, possible scalding injuries with visible indication that lid is not securely seated. Patent-pending Smart Lid also offers potential as advertising medium with incorporation of logos, messages that become visible when lid changes color. FDA food-contact compliant color-change material from Matsui arrives in master batch, mixes with virgin HIPS in cold pellet state prior to sheet extrusion. Cost upcharge is approximately US$0.01/lid. Smart Lid wins award in competition sponsored by QSR Magazine, Durham, NC; Foodservice & Packaging Institute, Inc., Falls Church, VA. Smart Lid Systems has exclusive licensees in Asia Pacific region, is in negotiations in Europe, seeks US licensees.Follow-up: Nick Bayss, +61 4 03 48 5858, nbayss@smartlidsystems.com; Link: www.smartlidsystems.com. Top of Page

EPA recognizes waste reduction efforts of Anheuser-Busch

US Environmental Protection Agency, Washington, DC, inducts Anheuser-Busch Cos., St. Louis, MO, into WasteWise Hall of Fame in recognition of longstanding commitment to waste reduction, recycling programs. Membership in Hall of Fame represents latest in succession of awards Anheuser-Bush has received since joining voluntary WasteWise program as a charter member in 1994. Company maintains recycling rate of more than 97%, has cut landfill waste 45%. Company also practices source reduction: Paperboard used in packaging has declined 21 million pounds since 2002, aluminum consumption will drop 20 million pounds/year when lid diameter reduction initiative is fully implemented in 2006. Company’s recycling arm, Anheuser-Busch Recycling Corp., recycles 804 million pounds of aluminum beverage containers in 2004, making it one of the world’s largest recyclers of aluminum bevcans. Top of Page

Alcoa reorganizes packaging and consumer businesses

Alcoa, Pittsburgh, PA, forms $6 billion Packaging and Consumer Group (PCG). Switch to channel-driven business unit structure intensifies focus on customers, new product/market development. Members of PCG include newly formed Alcoa Packaging, focusing on total packaging solutions for growing market segments such as medical, pharmaceutical, healthcare, food, electronics, film products; Reynolds Food Packaging, combining Alcoa’s thermoforming sheet/food packaging businesses to serve foodservice industry; Alcoa Consumer Products, selling branded products such as Reynolds Wrap as well as private label offerings; Alcoa Closure Systems International (CSI), specializing in capping equipment, closures. Under realignment, manufacturing operates separately, Group members share supply chain/logistics services as well as new joint innovation, research/development organization. Leadership consists of Bimal Kalvani, who heads Alcoa Packaging; Rebecca Liebert, who oversees Reynolds Food Packaging; plus yet-to-be-named executives for Alcoa Consumer Products, Alcoa CSI. “Our new strategy will provide Packaging and Consumer customers with a greater understanding of the breadth and depth of services, expertise and experience that Alcoa has to offer,” explains Ruth J. Mack, vp, Alcoa/group president, Packaging and Consumer. “As we focus on growth opportunities and operational excellence, we expect our customers will benefit by enhanced customer connections and innovative packaging solutions.”Follow-up: Link: www.alcoa.com. Top of Page

Regulations don’t deter plastics as food packaging top choice

Emphasis on quality, convenience, extended shelf life raises bar for food packaging, according to Global Advances in Food Packaging report from Frost & Sullivan (F&S), Palo Alto, CA. Study identifies key technology drivers, industry challenges, looks at competition among different packaging materials/techniques, examines innovations, highlights research at companies, universities worldwide. “Consumers today demand a lot more from packaging in terms of protecting the quality, freshness and safety of foods,” says Kasturi Nadkarny, F&S research analyst. While plastics rank first for food packaging, they face mandates related to biodegradability, recyclability as well as regulations limiting certain polymers, additives due to rising health concerns. Most significant is Super Regulation proposed by European Commission, Brussels, Belgium, that specifies permissible ingredients for plastic food packaging.Follow-up: Trisha Bradley, corporate communications – North America, +1 210-247-3870, trisha.bradley@frost.com; Link: www.frost.com. Top of Page

Extensible paper strengthens bags

Unbleached extensible paper from Nippon Paper Industries Co., Ltd., Tokyo, Japan, comes to market in form of WAVYWAVY WVU Series for industrial paper bags. Much harder to tear than conventional kraft paper, WVU Series offers higher energy absorption, so conventional three-layer bag constructions can be replaced with two-layer. Source-reduced material slashes industrial waste, disposal costs. In other applications, WVU Series paper improves strength of flat-bottom bags, bag handles. Vertical stripes on surface discourage slipping, stabilize stacked bags. Stripes also enhance design, style, texture.Follow-up: Link: www.np-g.com. Top of Page

Sara Lee chooses CHEP for distribution

Pallet supply challenges, negative impact on country’s waste stream prompt Sara Lee Food & Beverage, Downers Grove, IL, to switch all products from one-way wood pallets to pallet pooling service from CHEP USA, Orlando, FL, by 2006. Transition to signature blue CHEP pallets involves major brands like Ball Park, Jimmy Dean, Hillshire Farm, 22 processing, distribution centers in US. “The economics of the CHEP solution provides us with clear financial benefits gained from sturdier unit loads and improved product handling,” says Larry Rogers, svp, Sara Lee Supply Chain. “CHEP is also helping us positively impact the environment by reducing the number of pallets sent to landfills.” CHEP commits to helping Sara Lee meet, exceed performance metrics required by its customers.Follow-up: Per Öhström, director, Marketing, +1 407-355-6491, per.ohstrom@chep.com; Link: www.chep.com. Top of Page

Amcor looks at PLA bottles

In departure from focus on polyethylene terephthalate (PET), but in line with its commitment to sustainability, Amcor PET Packaging Europe NV/SA, Zaventem, Belgium, designs, produces performs, bottles made of corn-based polylactide (PLA) resin. NatureWorks LLC, Minnetonka, MN, supplies NatureWorks PLA resin, while Husky Injection Molding Systems Ltd., Bolton, ON, Canada, provides container production expertise. In initial phase of program, Husky HyPET 90 injection molds preforms. “The market for PLA bottles is attracting a lot of attention in Europe, and consumers are starting to show an interest in packaging made from renewable resources,” says Frans Van Dooren, marketing manager communications for Amcor PET Packaging Europe. Comparing costs of preform/bottle production equipment, resin itself, PLA shows little difference versus PET. “The fact that Amcor, one of the world’s largest packaging producers, is involved with PLA should encourage more converters to explore and become involved in PLA processing,” says Mike Urquhart, Husky’s vp of PET Systems. Applications for PLA bottles include edible oils, still mineral waters, fresh chilled milk. For edible oils, bottle features lightweight neck finish for one- or two-piece GALILEO closures from BERICAP GmbH & Co., Budenheim, Germany. Combination represents material source reduction for both bottle, closure.Follow-up: At Amcor, Frans Van Dooren, +32 2-416 26 05, PETEurope.information@amcor.com; Link: www.amcor.com; at Husky, Peter Fahnenbruch, key account manager, PET, +352 52 11 5-4688, pfahnenbruch@husky.ca; Link: www.husky.ca; at BERICAP, Marketing Department, +49 6139 - 29 02 0, info.germany@bericap.com; Link: www.bericap.com. Top of Page

Multi-Color makes Forbes’ top 200 “Best Small Companies” list

Forbes magazine ranks Multi-Color Corp., Cincinnati, OH, 41st on list of “200 Best Small Companies in America” in 31 October 2005 issue. It’s the second time in three years that Multi-Color receives recognition. List spotlights firms that deliver strong, consistent, profitable growth. According to Forbes, companies listed perform well when measured over last 12 months, past five years. In other standings, Multi-Color ranks 32nd for five-year average return on equity. In addition, company’s Board of Directors ranks in top 1% nationally for corporate governance. Forbes’ list features companies with revenue between $5 million and $750 million, net profit margin above 5%, share price above $5.00.Follow-up: Link: www.multicolorcorp.com. Top of Page

EarningsUpdate: Packaging Dynamics… Ball…

Packaging Dynamics Co., Chicago, IL, reports 6.9% decline in net income to $5.7 million for 3Q05 vs. $6.9 million in 3Q04; for nine months ended September 30, 2005, net sales rise 26.5% to $268.9 million vs. $212.6 million for prior year period… At Ball Corp., Broomfield, CO, North American packaging segment generates earnings of $65.5 million on sales of $1.05 billion in 3Q05, compared to $101.5 million on sales of $983.1 million in 3Q04; International packaging segment earns $57.3 million on sales of $366.1 million in 3Q05, compared to $65 million on sales of $334.3 million 3Q04… Top of Page

Changeover: Crown…

Crown Holdings, Inc., Philadelphia, PA, elects Jim L. Turner, former chairman/president/ceo of Dr Pepper/Seven Up Bottling Group, Plano, TX, to board of directors, bringing board to 12 members… Top of Page

ShortRuns: Gel-Pak…

Delphon Industries’ Gel-Pak division, Hayward, CA, celebrates 25th anniversary of providing elastomeric device shipping/handling carriers for semiconductor, optoelectronics, telecommunication, medical industries… Top of Page

*-- Ben Miyares, editor/publisher*
*-- Hallie Forcinio, managing editor*
*-- Pat Magee, contributing editor*
*Copyright 2005 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.