Studies see shoppers turning ‘green’ again

In turnabout from previous behavior, consumers not only prefer “green” products, but also are willing to pay extra for them, according to 2007 Annual National Shopping Behavior Survey by consulting firm KPMG LLP, New York, NY.

Fully 88% of survey respondents indicate high level of concern about environment, 74% say they buy environmentally friendly products, 60% claim to be willing to pay more for such items, 55% make special effort to patronize retailers with “green” reputation.

Another survey, the Times & Trends Report by Information Resources, Inc. (IRI), Chicago, IL, confirms consumer interest in environmental issues. Of 22,000 respondents asked to consider impact of four key sustainability factors in product/store selection – organic, eco-friendly products, eco-friendly packaging, fair treatment of employees/suppliers – 30% consider eco-friendly products/packaging, nearly 40% search specifically for organic products. “Sustainability has evolved from a niche segment concern to a major factor influencing purchasing and shopping behavior across a sizable consumer base,” reports Andrew Salzman, cmo at IRI. Attitudes extend across all age groups with older consumers more likely to weigh multiple sustainability factors in their purchases. “Our survey indicates that consumers are focused more and more on the social and environmental impact of their consumer packaged goods purchases, creating a viable and growing US market for sustainable products and packaging…,” concludes Salzman. Follow-up: Robert Wade, +1 201-307-7482; robertwade@kpmg.com, or Jennifer Hurson, +1 201-307-8187, jhurson@kpmg.com; Link: www.us.kpmg.com; at IRI, John McIndoe, +1 312-474-3862, john.mcindoe@infores.com.

Merger creates third largest chemical company

Merger between Basell AF, Luxembourg, Lyondell Chemical, Co., Houston, TX, creates LyondellBasell Industries, Rotterdam, The Netherlands. World’s third largest independent chemical company with annual revenue of US$43 billion produces polyolefins used in packaging as well as other polymers, chemicals, fuels. With 60 manufacturing sites in 19 countries on five continents, combined company ranks as global leader in polyolefin technology, production, marketing; largest producer of polypropylene, advanced polyolefin products; as well as leading supplier of polyethylene, catalysts. Basell, which is owned by Access Industries, New York, NY, pays $48/share for Lyondell’s outstanding common stock in all-cash transaction totaling approximately $20 billion, including assumption of debt. Follow-up: Marketing Department, +31 20 44 68 644; Link: www.lyondellbasell.com.

Brand owners pay more for packaging

Prices continue trending upward for virtually all packaging materials. Characteristic of current environment, Caraustar Industries, Inc., Atlanta, GA, boosts prices $40/ton for all grades of uncoated recycled paperboard. Latest price hike takes effect on 28 January 2008, builds on 2007 increases totaling approximately $100/ton. “We continue to be faced with historically high raw material and energy costs, making it necessary to increase prices on all grades and products of uncoated recycled paperboard,” explains Michael J. Keough, president/ceo of Caraustar. Pricing pressure exists worldwide with Iggesund Paperboard AB, Iggesund, Sweden, raising prices for Invercote solid bleached board, Incada folding boxboard, by US$118/metric ton, US$96/metric ton, respectively, in mid-2007. Effective 1 January 2008, Rohm and Haas, Philadelphia, PA, revises price list for packaging adhesives, resin additives sold in Asia-Pacific region due to tightening supply of feedstock, rapidly rising feedstock costs, increases in energy, freight costs. Price increases extend further up supply chain to resin companies. Kraton Polymers LLC, Houston, TX, for example, boosted prices $220/metric ton for its styrenic block copolymers on 1 January 2008, while Basell, now LyondellBasell Industries, Rotterdam, The Netherlands, put US$89/metric ton increase in place on 1 July 2007 for Hifax polypropylene resin sold in Europe, Middle East, Africa. Even ink prices are rising. Sun Chemical, Northlake, IL, blames 8% increase, effective 1 January 2008, on higher demand for ethanol as well as supply shortages resulting from Chinese government’s efforts to reduce environmental impact, elimination of value-added tax refunds for exports.

Specialty paper manufacturer slashes use of fossil fuel

Process heat recovery, increased reliance on biofuel for electricity generation cut both fossil fuel consumption, carbon dioxide emissions 75% at Iggesund Paperboard AB, Iggesund, Sweden. Reduction in carbon dioxide emissions to be implemented by 2009 equals output by 20,000 cars driven 15,000 kilometres/year. Investment of US$15.5 million at Iggesunds Bruk facility, which produces flagship product, Invercote paperboard, continues company’s long-term environmental program. Recovered heat not only powers paper production process, but also dries timber at nearby sawmill, warms nearby homes. Company also generates about 50% of its electricity requirements, almost entirely from biofuel. “But our goal is even higher than this,” says Klas Simes, energy coordinator at Iggesunds Bruk. “We plan a gradual changeover so that we will ultimately not use any fossil fuel at all, and will also be self-sufficient in electricity.” Follow-up: US Sales Office, Lyndhurst, NJ, +1 201-804-9977; Link: www.iggesund.com.

P&G files suit to protect Herbal Essences trade dress

Procter & Gamble Co. (P&G), Cincinnati, OH, files against Blue Cross Laboratories, Santa Clarita, CA, alleging infringement of its Herbal Essences trade dress. Packaging for shampoos, conditioners introduced in 2006 during relaunch of brand, includes uniquely shaped bottle. Suit filed in US Federal District Court for Southern District of Ohio, Cincinnati, OH, claims private labeler, Blue Cross Laboratories is distributing look-alike products under Herbal Passion name to dollar store outlets. P&G requests Blue Cross be ordered to stop distributing infringing products, recall existing inventory from store shelves, notify retailers to impound or return all products, destroy bottle molds. “We believe this is a clear case of infringement designed to take advantage of consumer loyalty and business growth that P&G developed through the reinvention of its Herbal Essences brand,” says Jim Johnson, P&G chief legal officer.

Increasing volume of critics may drown bottled water growth

Controversy over environmental impact of bottled water grows more strident as coalition of groups file suit to invalidate $0.05/bottle tax passed in Chicago, IL. First-of-its-kind law requires retailers to pay tax, earmarks funds generated for general revenue rather than environmental purposes. Lawsuit filed in Circuit Court of Cook County by American Beverage Association (ABA), Washington, DC; Illinois Retail Merchants Association, Chicago, IL; Illinois Food Retailers Association, Lombard, IL; International Bottled Water Association, Alexandria, VA; contends city lacks authority to impose tax, which took effect 1 January 2008. Plaintiffs argue tax violates Uniformity Clause of Illinois Constitution because it singles out water. In addition, tax threatens Chicago economy, retailers, retailer jobs, consumers, particularly low-income consumers who spend larger percentage of income on food. “We’re going to stand up for our customers, both retailers and consumers who are being forced to pay a tax on a healthy product like bottled water,” says Susan Neely, president of ABA, which represents nonalcoholic beverage industry including bottled water producers. “We’re not just going to take a tax like this without raising a challenge. It’s disconcerting that government spending is leading government officials to start taxing products that are good for you simply to cover their budget deficits.” Follow-up: Link: www.ameribev.org/news-detail/index.aspx?nid=123.

Free box exchange gives gift to environment year-round

Customers of U-Haul International, Inc., Phoenix, AZ, save money, protect environment via online box exchange, buyback program. Take a Box/Leave a Box Program allows customers to return usable boxes after moving so other customers can reuse them for free. Sturdy U-Haul moving boxes remain strong through several uses before being recycled, conserving resources, reducing greenhouse gases that lead to global warming. During holiday season, U-Haul invites consumers to return/reuse gift boxes. “Whether it’s computer boxes or boxes for big-screen TVs, the popular presents for Christmas are the same items that many of our customers will need to pack up for moving or storage,” says Bob Wesson, vp, sales and operations support. “We know that customers want to save money,” he adds, “but they are not just saving money, they are helping to save our environment by utilizing free boxes before purchasing new boxes.” Another service, U-Haul Box Exchange, provides www.uhaul.com/boxexchange portal where customers post available boxes, review messages from individuals in their area with reusable boxes. Company also continues its Buy-Back Guarantee. In effect for many years, it encourages customers to return any unused boxes for refund. Follow-up: Link: http://store.uhaul.com/boxes.aspx.

New study covers world of beverage consumption

Global Multiple Beverage Marketplace, 2007 edition from Beverage Marketing Corp., New York, NY, keys in on nine beverage categories. Analyses of beer, bottled water, carbonated soft drink, coffee, distilled spirit, fruit beverage, milk, tea, wine segments focus on growth in national markets, per capita consumption, comparisons between countries, five-year growth projections. Report also discusses impact of growing Chinese market on categories such as beer, distilled spirits along with developments by beverage type. With more than 300 pages of text, graphs, charts, tables, printed volume costs $5,995, single-user CD, $6,095; both, $6,295. Follow-up: Charlene Salito, +1 212-688-7640, ext. 1962; Link: www.beveragemarketingusa.com.

PMMI celebrates 75^th anniversary throughout 2008

Packaging Machinery Manufacturers Institute (PMMI), Arlington, VA, marks 75th anniversary with commemorative logo. Association, founded in 1933, plans 75th anniversary celebration for 540 members at 2008 Executive Leadership Conference, 6-10 April 2008 in Indian Wells, CA. Industry-wide celebration occurs during 2008 Annual Meeting, 22-24 September 2008 in Washington, DC. “PMMI was founded on the simple concept that companies and industry leaders who supply packaging machinery solutions ought to cooperate and respond to industry issues,” says Charles D. Yuska, PMMI president/ceo. “It’s a tribute to a tradition of strong volunteer stewardship that PMMI continues to supply dynamic programs and services — and that they now support the entire packaging supply chain, including machinery, materials and components suppliers,” he concludes. Follow-up: Link: www.pmmi.org.

European guidelines help recyclers of food-contact material

European Food Safety Authority (EFSA), Parma, Itlay, requests comments on draft guidance document for recyclers of plastic packaging material for food contact. Document entitled “Guidance on submission of a dossier for safety evaluation by the EFSA of a recycling process to produce recycled plastics intended to be used for manufacture of materials and articles in contact with food” applies to mechanical recycling processes. Submission consists of three sections – summary, administrative information, technical dossier. Technical dossier details how recycling process eliminates contaminants found in incoming material, processing aid residuals, degradation products generated by process itself, describes control of critical parameters that ensure no problematic chemicals survive recycling process to migrate into food at unsafe levels. Technical dossier also defines intended applications including compatible foods, duration/temperature of contact, food-to-package ratio, number of applications (single- or multi-use). Applicant supplies documentation in paper, CD-ROM format, provides second CD-ROM, which omits any confidential data. EFSA’s Scientific Panel on food additives, flavourings, processing aids and materials in contact with food accepts written comments, referencing line numbering noted in guidance document, through 6 March 2008 on template at www3.efsa.europa.eu/cf/consultation.cfm?doc=21, cannot consider comments submitted by e-mail or surface mail. Follow-up: Link:
www.efsa.europa.eu/EFSA/DocumentSet/EFSA_Guidelines_Recycling_Public_consultation,0.pdf

Wholesaler commits to eco-friendly boxes, paper wraps

Packaging wholesaler, Nashville Wraps, Hendersonville, TN, targets its Green Way Packaging with Purpose recycled packaging products to small, upscale end users. Product line, stamped with Green Way logo to signify commitment to sustainable resources, includes kraft paper shopping bags with 50%-80% post-consumer fiber content, high-density polyethylene bags with 25%-100% recycled content. Products with 100% recycled content include gift boxes, jewelry boxes, gourmet boxes, Encore plastic t-sacks, some tissue paper. Work continues on increasing levels of recycled content. Company sources most of its products from US manufacturers, but imports some items from China, Taiwan. Follow-up: Buffie Baril, marketing department, +1 800-547-9727, ext. 3144, buffie@nashvillewraps.com; Link: www.nashvillewraps.com.

PMMI awards $92,000 for industry education

Packaging Machinery Manufacturers Institute (PMMI), Arlington, VA, awards $92,500 in scholarships in 2007 via PMMI Education & Training Foundation. Funds support students, packaging professionals pursuing packaging industry education at technical schools, colleges, universities in North America. “The Foundation’s purpose is to strengthen training and education, to help industry professionals have what it takes to move their companies forward,” says Charles D. Yuska, president/ceo of PMMI. “The knowledge these students gain enriches and empowers them and their employers, but when you look at the bigger picture, you see it also enriches the industry as a whole,” he adds. Funds distributed include scholarships honoring Claude S. Breeden, C. Glenn Davis, Mark Garvey, as well as travel scholarships to finance students’ trips to PACK EXPO. “PMMI is pleased to be a strong supporter of packaging education,” says Yuska, noting association has provided more than $1 million in scholarship funding during past 10 years. PMMI Education & Training Foundation also manages newly established AR (Art) Schaefer scholarship fund, collaborates to produce Packaging Hall of Fame dinner fundraiser in support of permanent Packaging Hall of Fame memorial at Michigan State University, East Lansing, MI. Follow-up: Maria Ferrante, director of Workforce Development, +1 703-516-0656, mferrante@pmmi.org; Link: www.pmmi.org.

Testers check seal strength, locate leaks

Lippke™ 4000 Series testers from MOCON, Inc., Minneapolis, MN, perform variety of leak, seal strength tests on flexible, rigid or porous materials. Positive-pressure test systems measure strength of medical device packaging material, seals, assesses ability of package to seal out atmospheric contamination. Equipment provides precise, accurate, reproducible test results consistent with ASTM Standards F2054, F1140, F2095, ISO Standard 11607. Standalone Model 4000 unit, personal computer-operated Model 5400 bench-top machine conduct tests at three pressure levels instead of one. Flow booster technology ensures required volume of gas is available during testing process. Other features include accuracy-enhancing electronic control of pressure, flow; custom package fixtures; eight test-mode capability; energy-saving standby setting. Advanced Leak Test option measures absolute hole size so hermetic seal performance can be correlated to microbial ingress standards. Model 4000 meets CFR 21, Part 11 Guidelines for electronic signatures. Follow-up: Steve Bunnell, +1 763-493-6370, sbunnell@mocon.com; Link: www.mocon.com.

Software manages robotic picking, placing, palletizing

Adept Technology, Inc., Livermore, CA, previews packaging robot software at ATX West 2008 Show, 29-31 January 2008 in Anaheim, CA. In demonstration, yet unnamed product due to be released by end of 2Q08, configures Adept Quattro robot, Adept Cobra robot to perform packaging tasks using tools for vision, conveyors, picking, placing, palletizing. “Until now packaging customers had to rely on multiple software platforms to complete the multiple tasks involved in the packaging process,” explains John Dulchinos, president/coo for Adept. Designed for systems integrators, end users of Adept robots, software may be purchased alone or in conjunction with robot. In time, Adept may extend compatibility so software can manage robots from other companies. Follow-up: Lauren Bucher, marketing, +1 925-245-3400, lauren.bucher@adept.com; Link: www.adept.com.

City mandates plastic bag recycling, industry fights bans

New York, NY, passes law that requires retailers with more than 5,000 square feet to provide in-store recycling program for plastic carry bags. bags. Progressive Bag Affiliates segment of American Chemistry Council (ACC), Arlington, VA, applauds effort, which represents first by major US city.

New group in ACC’s Plastics Division consists of resin manufacturers, bag makers, plus former members of Progressive Bag Alliance (PBA), represents next step in growing collaborative effort between ACC, PBA to discourage localities from enacting laws banning distribution of plastic carry bags, correct misinformation, increase recycling, provide recycling toolkit to retailers establishing in-store collection programs.

“Although plastic bags use less energy and produce less greenhouse gas emissions than alternatives, they are under attack,” explains Jack Gerard, ACC president/ceo. “Misguided efforts to ban plastic bags in some cities as well as ill-informed media reports clearly demonstrate the need to educate policy makers and the public about the environmental benefits of plastic bags and to promote recycling,” he adds. “Forming the Progressive Bag Affiliates gives us the resources we need to accomplish our objectives of increasing plastic bag recycling and preventing unwarranted policy approaches such as bans,” says Isaac Bazbaz, director of Superbag Corp., Houston, TX, who chairs PBA.

Nationwide, recyclers recycle more than 650 million pounds of plastic bags, film each year with recycled material, generally high-density polyethylene, finding uses in products such as low-maintenance fencing/decking, building products, new carry bags. Worldwide several countries have bag bans in place including Rwanda, Zanzibar, Bangladesh. Other countries like Ireland tax plastic shopping bags. In China General Office of State Council prohibits retailers, shops from giving shoppers free plastic carry bags after 1 June 2008. Government also bans production, sale, use of ultra-thin (less than 0.025-millimetre) bags as of 1 June 2008. Closer to home, San Francisco, CA, prohibits large supermarkets from giving shoppers nonbiodegradable plastic bags. In addition, California requires large stores to collect used bags. Follow-up: Link: www.plasticbagrecycling.org.

German subsidiary of Bradman Lake declares independence

Bradman Lake GmbH, Dietmannsried, Germany, reorganizes as independent company, assumes new name, 3S Packaging Technology GmbH. “We are launching our organization with a new name and a new corporate identity, whereas ‘3S’ is synonymous with Single Source Solutions,” says Friedrich Kern, managing director, Marketing and Sales. Company develops, produces, distributes standalone vertical form-fill-seal machines, horizontal flow wrappers, top-, end-load cartoners, robot-based wraparound, top-load case packers, as well as integrated lines consisting of primary, secondary, tertiary packaging machines. Firm serves packagers of food, chocolate, confectionery, consumer goods with global sales, service network, employs approximately 50 people. Bradman Lake Group, Charlotte, NC, opts to discontinue German operations, which were acquired in 2003, after strategic review by new parent, Langley Holdings PLC, Nottinghamshire, UK, spotlights technical, financial deficiencies. Bradman Lake continues to serve European customers from UK offices in Brislington, Norwich, as well as Moscow, Russia. Follow-up: At 3S, Katrin Woelfle, marketing coordinator, +49 8374 232 77 0, Katrin.Woelfle@3spactec.com; Link: www.3spactec.com; at Bradman Lake, Sales Department, +1 704-588-3301, sales@bradmanlake.com; Link: www.bradmanlake.com.

INEOS Films christens US headquarters, production facility

Renovated US$30-million facility in Delaware City, DE, strengthens North American presence for INEOS Films GmbH, Staufen, Germany. INEOS Films Inc. produces shrink film for food, beverage industry, rigid film for pharmaceutical blister packaging, credit/contact-less cards, anticipates employing workforce of more than 100. Phased renovation for regional headquarters, plant begins in May 2005, concludes in November 2007, allows company to supply North American market with high quality rigid films formerly shipped from company’s nine other plants in Europe, Asia. “We are pleased to be able to provide our customers with the quality films and service they have come to expect from INEOS Films,” says Steve Reynolds, commercial director. Follow-up: Lucy Strommer, +1 302-383-3221, lucy.strommer@ineosfilms.com; Link: www.ineosfilms.com.

Glass milk bottles celebrate 129^th anniversary

Milk packaging changes forever in January 1878 when Alexander Campbell of New York, NY, begins selling milk in glass bottles.Packaged product replaces less sanitary method of carrying large pots of milk in horse-drawn wagons to ladle into whatever container purchaser provided. According to US Census Bureau, Washington, DC, per capita milk consumption stands at 21 gallons/year with reduced fat or skim varieties accounting for 65% of sales. Most consumers now buy milk in supermarkets in either gabletop cartons or high-density polyethylene jugs. However, glass milk containers, which disappeared in 1970s with home delivery, remain collectible, make modest comeback in early to mid-2000s due to surge in demand for organic products.

Packexpo.com refreshes look, expands content

PMMI, the packaging supply chain association, is launching a new look and expanded packaging news and research content on www.packexpo.com.

“PMMI, owner of Packexpo.com, is always looking for ways to make site visits more valuable for the visitor,” says Tom Egan, PMMI’s vice president of Industry Services. “An extensive addition to the news section, including channels focused on various markets – food, beverage, pharma, for example – provide a wealth of daily information tailored to packaging managers’ specific interests.”

Subscribers to packexpo.com can now order tailored daily news emails including top stories selected from worldwide sources by the editorial team of Ben Miyares’ Packaging Management Update®.

PMMI is also enriching the packexpo.com site with the addition of executive summaries of various PMMI market studies. The first two to be posted under the Resources tab in the navigation bar: “2007 Packaging Machinery Purchasing Process Survey” and “2007 Shipments and Outlook Survey.” Additional studies will be posted later this month.

Upstream: Web Handling and Converting…

Reed Business Information, Oakbrook, IL, offers Web Handling 1: Understanding Web Handling Systems (www.seminarsforengineers.com), 12-13 February 2008, Hilton Garden Inn Charleston Airport, Charleston, SC; repeats 17-18 June 2008 in Montreal, QC, Canada; 19-20 August 2008, Raleigh, NC; 9-10 December 2008, Chicago, IL…

ShortRuns: Rexam… Barry-Wehmiller… BioFilm…

Rexam plc, London, UK, receives clearance to complete acquisition of Russian beverage canmaker Rostar, gains plants in Moscow, St. Petersburg, Russia, makes commitment to Federal Antimonopoly Service of the Russian Federation to keep annual beverage can price increases to less than 15%, agrees to continue to invest in Russian beverage can business to meet market growth; expects acquisition, announced in July 2007, to close in 1Q08… Barry-Wehmiller Design Group, Inc., St. Louis, MO, opens firm’s 11th engineering consulting office in Dallas, TX; new office specializes in industrial packaging automation, process control, software design, other technology services for clients in South, Midwest… Tate & Lyle Ventures, London, UK, along with Scottish Enterprise’s Scottish Venture Fund, Glasgow, Scotland, purchases BioFilm Ltd., Glasgow, Scotland, from Devro plc, Chryston, Scotland, for approximately US$7.12 million, forms BioFilm Holdings Ltd., plans US$ 5.9-million investment in fully integrated manufacturer of dissolvable/edible films that carry active ingredients for nutraceutical, medical products; former business development director of Devro, Trevor Morgan, becomes ceo of BioFilm…

Changeover: FDA… Sidel…

Two senior executives at Food and Drug Administration (FDA), Rockville, MD, move into new positions: Stephen F. Sundlof, DVM, PhD, shifts from director of Center for Veterinary Medicine (CVM) to director of Center for Food Safety and Applied Nutrition, while CVM Deputy Director Bernadette Dunham, DVM, PhD, succeeds Sundlof as director; both report to Andrew C. von Eschenbach, MD, commissioner of FDA... Mart Tiismann succeeds Gérard Stricher as president/ceo of Sidel, Le Havre, France, in preparation for Stricher’s April 2008 retirement; Tiismann joined supplier of beverage filling lines in 2005 as evp responsible for industrial operations, research/development…

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