Packaging Managemenet Update 01-21-08



January 21, 2008 -

Ben Miyares' Packaging Management Update®

Ben Miyares' Packaging Management Update®

A weekly summary of packaging business and technology developments

‘Smart’ lid, PET barrier bottle earn top AmeriStar awards

Color-changing thermoformed lid for hot beverage cups, lightweighted barrier container earn top awards in 2007 AmeriStar competition, organized by Institute of Packaging Professionals (IoPP).

Best-of-Show Award sponsored by Lansmont Corp., Monterey, CA, goes to Smart Lid from Smart Lid Systems, Sydney, Australia. Temperature-sensitive color change from brown to red not only provides scald warning, but also shows whether high-impact polystyrene lid is secured properly on cup.

First 3M Sustainable Packaging Award, sponsored by 3M, St. Paul, MN, goes to Constar International Inc., Philadelphia, PA, for 46-ounce polyethylene terephthalate (PET) barrier bottle for Hunt’s ketchup from ConAgra Foods, Omaha, NE. Bottle utilizes PET blended with Constar’s DiamondClear oxygen scavenger to extend product shelf life. Bottle, which is recyclable in PET waste stream, weighs 12% less than multilayer PET/ethylene vinyl alcohol barrier container it replaces due to reduced wall thickness. Transition from multilayer to monolayer structure also eliminates delamination problems when container is squeezed. Follow-up: At Smart Lid, Nick Bayss, managing director, +614 0348 5858, nbayss@smartlidsystems.com; Link: www.smartlidsystems.com; at Constar, Alex Fioravanti, marketing director, +1 215-552-3737; Link: www.constar.net; at IoPP, Carole Schiller, IoPP Honors & Awards Manager, at 630-696-4006, or e-mail cschiller@iopp.org.

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Software adds greenhouse gas emissions tool

Greenhouse Gas (GHG) Emissions software helps packagers calculate carbon footprint with modeling, optimization tools. Addition to Supply Chain Guru™ software from Llamasoft Inc., Ann Arbor, MI, not only helps manufacturers identify opportunities for reducing GHG emissions related to packaging, other aspects of business, but also makes it possible to incorporate Carbon Offset purchases into calculations. “Every company worldwide that sources, manufactures or distributes physical materials has the need to manage its carbon footprint and to reduce emissions over time,” says Donald A. Hicks, president/ceo of LLamasoft. One early adopter, Chainalytics LLC, Atlanta, GA, uses Supply Chain Guru™ software as part of its supply chain network design services. “…the ability to incorporate this variable into our future network design analyses will provide our clients with a network that has been looked at from a cost, service and “green” perspective,” explains Jeff Metersky, vp Supply Chain Strategy at Chainalytics. Follow-up: Gary Bobalik, director of marketing, +1 734-418-3119, Gary.Bobalik@LLamasoft.com; Link: www.LLamasoft.com.

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Organic dairy works on reducing carbon footprint

Packaging represents one section of product lifecycle being studied by Aurora Organic Dairy, Boulder, CO, in effort to reduce its carbon footprint. Initiative underway in collaboration with Center for Sustainable Systems (CSS) at University of Michigan, Ann Arbor, MI, seeks ways producer of private-label organic milk, butter can increase energy efficiency, reduce greenhouse gas emissions. Newly established Aurora Organic Dairy Foundation provides $320,000 grant to CSS to fund research, believed to be most comprehensive “seed-to-shelf” carbon emissions reduction initiative undertaken in organic dairy industry. Initial research phase establishes baseline, identifies processes with greatest environmental impacts. Phase II involves developing recommendations to improve sustainability performance, including energy consumption, greenhouse gas emission related to material resources such as packaging. Follow-up: At CSS, Link: www.css.snre.umich.edu.

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Salzgitter solidifies position in PET beverage packaging

Newcomer to packaging Salzgitter AG, Salzgitter, Germany, acquires SIG Beverages division from SIG Group, Neuhausen, Switzerland. Deal leaves SIG, acquired by Rank Group, Auckland, New Zealand, in mid-2007, focused on carton production, filling. With purchase, Salzgitter strengthens position in PET beverage packaging, gains stretch blowmolding specialist SIG Corpoplast GmbH & Co. KG, Hamburg, Germany, along with aseptic filling technology provider SIG Asbofill GmbH, Neuss, Germany, annual sales of US$223 million (€150 million). Addition builds Salzgitter’s Technology Division, formed in July 2007 with acquisition of majority ownership in Klöckner-Werke AG, Frankfurt am Main, Germany. “The takeover…will enable KHS [Dortmund, Germany], a Klöckner-Werke subsidiary, to operate as a singe-source provider, offering complete facilities and systems to the dynamic plastic bottle technology growth market,” says Salzgitter.

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Personalized packaging coordinates wine, chocolate gifts

In time for Valentine’s Day, printed black corrugated gift boxes present upscale wine, wine glasses, chocolate to loved ones. Collaborative effort by three companies creates gift box with bottle of 2005 Seduction wine from O’Brien Estate, Napa, CA, two 30-ounce balloon wine glasses from Bottega del Vino Crystal, Chicago, IL, two four-piece boxes of Taste of Love heart-shaped chocolates from Choclatique, Los Angeles, CA. Brown leatherette-lidded chocolate box resembles jewelry box wrapped with satin ribbon. Other packaging consists of stock wine bottle, corrugated box, foam cushioning, plus labels from Ben Franklin Press & Label Co. or Tapp Technologies, both of Napa, CA. At O’Brien Estate, Bart O’Brien, owner, explains, “We utilized a standard Bottega del Vino gift box that had a cutout for a wine bottle in addition to their glasses. Choclatique provided the chocolate, again part of their standard offering. The overall design concept was to create a high-end, romantic gift package for Valentine’s Day.” Ed Engoron, co-founder, Choclatique, says packaging is reusable, recyclable, except for foam. Hand-packed gift with handwritten gift card from sender costs $199/box. Follow-up: At Ben Franklin, Sales Department, +1 707-253-8250; Link: www.benfranklinpress.com; at Tapp Technologies, Information, +1 707-291-2803, info@tapptech.com; Link: www.tapptech.com.

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Amcor plants certify quality, food safety practices

Amcor PET Packaging, Manchester, MI, earns Gold Standard certification from AIB International (AIBI), Manhattan, KS, for 14 container-making plants in North America. Designation verifies facilities maintain highest levels of food safety, quality management via Good Manufacturing Practices audits, Hazard Analysis Critical Control Point accreditation, Quality Systems Evaluation audit, random sample inspection, annual recertification. “The quality systems we’ve put in place at Amcor exceed the requirements of our most demanding customers,” explains Tod Eberle, vp, Quality Systems, Engineering Standards and Blow Molding Process Technologies at Amcor. “Our intent is to lead the field, and our success has been validated by our acceptance into AIBI’s Gold Standard certification program. This enables our customers to have the highest confidence in the products we supply them.” Follow-up: At Amcor, Shelley Steele, +1 734-302-2264, shelley.steele@amcorpet.com; Link: www.amcor.com; at AIBI, +1 785-537-4750, info@aibonline.org; Link: www.aibonline.org.

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Forecast for kids’ beverages calls for nearly $6 billion in sales

US retail sales of kids’ beverage products decline 4.0% to $4.6 billion in 2007 from $4.7 billion in 2006, according to report from Packaged Facts, New York, NY. Kids’ Beverages in the US report blames drop in sales on recent focus on childhood obesity, curb on child-directed advertising, switch to healthier beverages in school vending machines. Nevertheless, study predicts growth in population/thirsts will drive market up at 5% compound annual growth rate (CAGR) to nearly $6 billion by 2012, more than double market’s historical 2% CAGR. Although sales slow in several large, traditional kids’ beverage categories; purchases of kid-targeted bottled waters, nutritional/sports drinks rise significantly. Packaged Facts’ Cathy Minkler, associate editor, notes, “Driven by the trend toward more wholesome ingredients and products, benefits such as pure, real, organic, no artificial color and no preservatives have been appearing on more new kids' beverages. High calcium, probably the oldest claim in the kids' beverage arsenal, still has a strong showing, particularly as milk comes back into vogue and as the popularity of yogurt smoothies grows.” Study sells for $3000, focuses on beverages for 3- to 11-year-olds. It also analyzes sales performance of leading brands, market players. Follow-up: Tom Ehart, +1 240-747-3014, tehart@marketresearch.com; Link: www.packagedfacts.com/Kids-rsquo-Beverages-1635853/.

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Early adopters of RFID gain competitive advantage

Early adopters of radio frequency identification (RFID) technology gain significant, sustainable competitive advantages, according to study by Aberdeen Group, Boston, MA. According to Winning RFID Strategies for 2008 report, benefits include better asset tracking, improved business processes. Study also details best-in-class trends, offers insights, recommendations for packagers involved in any phase of RFID deployment. Key elements of successful RFID implementations include data accuracy, scalability to seamlessly expand usage, as well as automated infrastructure deployment, maintenance, support to ensure accuracy, provide 24x7 availability without human intervention. Automation also simplifies installation of RFID devices, results in optimized operation, reduces need for IT support. Report co-sponsor, ODIN technologies, Dulles, VA, a provider of EasyRFID software tools for automating RFID infrastructure deployment, maintenance, support, offers free copies of report. Follow-up: Kiely Faroe, +1 703-968-0000, ODINcontact@ODINtechnologies.com; Link: www.ODINtechnologies.com.

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Controller runs up to four DOD inkjets

Marking Products, Pittsburgh, PA, features 10.4-inch color touch screen. Compatible with standard or 8000 Series low ink-consumption, high-resolution DOD printheads, controller drives up to four printheads printing up to five lines of text, graphics/logos or bar codes. Icon-based navigation, what-you-see-is-what-you-get format simplify message setup, changes. Depending on printheads selected, controller accommodates print speeds up to 680 feet/minute, characters from 3/32 to 5 inches high. Shown for first time at WestPack, 29-31 January 2008 at Anaheim Convention Center, Anaheim, CA, show demo integrates I-Mark V84 controller with 8000 Series 32-valve Mini printhead. Matthews also plans to introduce PX-370 water-based ink for printing on porous food packaging materials, such as paper, paperboard, corrugated. Designed for use in DOD inkjet systems, PX-370 ink prints darker to create bolder, higher contrast bar codes, date codes, lot numbers, product information on boxes or bulk bags. Follow-up: Cindy Wilson, +1 412-665-2489, Link: www.matthewsmarking.com.

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Alcoa joins nonprofit group to help measure GHG emissions

As Founding Reporter on The Climate Change Registry, Washington, DC, Alcoa, New York, NY, measures, verifies, publicly reports greenhouse gas (GHG) emissions. Reporting protocol based on international standards provides accurate, transparent measurement of GHG; ensures consistency across industry sectors, borders; supports voluntary, regulatory programs. Alcoa, a producer of primary aluminum, can sheet, other aluminum products, ranks as one of first companies to join group, which currently consists primarily of states, provinces, tribes. According to Climate Registry’s Chairman Gina McCarty, “Alcoa has demonstrated exemplary environmental leadership by stepping forward to support The Climate Registry in its preliminary stages. We are deeply grateful for their integral support in helping to address the challenge of climate change.” Alcoa’s stated core values include commitment to sustainability with 2010 target of reducing GHG by 25% below 1990 levels. Firms that join Climate Registry before May 2008 receive Founding Reporter status. Follow-up: At Alcoa, Link: www.alcoa.com; at Climate Registry, Diane Wittenberg, executive director, +1 213-891-6922; diane@climateregistry.org; Link: www.theclimateregistry.org.

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Software tool analyzes environmental impact of packaging

SavvyPack System life-cycle analysis (LCA) software from Allied Development Corp., Burnsville, MN, quickly analyzes environmental impact of packaging. Available as subscription service, intuitive tool contains life cycle inventory data for more than 100 packaging materials, accounts for regional differences so potential scenarios can be changed with click of mouse. Tool also provides one-click switch between English, metric measurements. Comprehensive data inputs accommodate any product or production method. Other considerations include operating speeds, equipment efficiency, transport packaging, final disposition. Outputs include energy consumption, greenhouse gas emissions, scorecard values, health/safety. Since environmental LCA module shares data with SavvyPack System’s economic analysis tool, economic analysis can be performed simultaneously. System stores all analyses for future reference. Follow-up: Sales Department, +1 952-898-2000; Sales@allied-dev.com; Link: www.allied-dev.com

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Retro glass bottle floats ‘ice cream’ beverage

Vintage soda shop-inspired 11.5-ounce glass bottle promotes world’s first ready-to-drink ice cream floats. A&W Root Beer or Sunkist Soda Float from Cadbury Schweppes Americas Beverages (CSAB), Plano, TX, delivers rich, creamy frothiness of homemade ice cream float without fuss. Glass bottle from Anchor Glass Container Group, Tampa, FL, meets pressure development criteria of post-fill retort processing, combines nostalgic curved shape with convenience of steel twist-off crown caps from Crown Holdings, Inc., Philadelphia, PA. “For years, beverage makers have tried to crack the code and develop an indulgent drink that tastes like a homemade float,” says Andrew Springate, vp Marketing for CSAB. “The A&W and Sunkist Floats are…like nothing consumers have experienced before: One pour and your taste buds will be amazed – no work, no hassle.” CSAB cold-fills product at its facility in Opelousas, LA, on carbonated soft drink line equipped with glass filler, crowner. Roll-fed applicator applies polyethylene terephthalate glycol shrink sleeve label. Label graphics reinforce rich creaminess of product, showcase Float in flowing script, include shades of orange or brown, Sunkist or A&W logo, bubble motif, product description. Matching 18-point paperboard four-pack carrier from Zumbiel Packaging, Cincinnati, OH, completes soda shop look. Follow-up: At Anchor Glass, Sales Department, +1 813-884-0000, salesgroup@anchorglass.com; Link: www.anchorglass.com; at Crown, Sheila Heath, Metal Closures division, Sheila.heath@crowncork.com; Link: www.crowncork.com; at Zumbiel, Sales Department, +1 513-531-3600, sales@zumbiel.com; Link: www.zumbiel.com.

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Updated reference helps design corrugated packaging

European Federation of Corrugated Board Manufacturers (FEFCO), Brussels, Belgium, launches updated version of FEFCO Esbo Code on CD-ROM. International Fibreboard case code for designers of corrugated, solid board packaging shows folding sequences for range of styles, permits interactive visualization of designs. Export tools permit transfer of DXF, JPEG files to computer-aided design/manufacturing systems. Reference also includes data on international standards applicable to corrugated, board, presents catalog of design codes in 13 languages. FEFCO provides free online test version at www.fefco-esbo-codes.com. Reference sells for €200 to FEFCO members, €400 to nonmembers. Follow-up: Marketing Department, + 32 2 646 40 70; Link: www.fefco.org/?webshop.

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NewPage integrates Stora Enso business

As NewPage Corp., Miamisburg, OH, integrates Stora Enso North American operations, purchased in December 2007, company anticipates $265 million in synergies. In addition, NewPage expects to increase North American production capacity up to 8% compared to combined production in 2007, despite closure of several facilities. Company continues to offer broad portfolio of printing papers including specialty products such as pressure-sensitive label materials, as well as coated freesheet, lightweight coated groundwood, supercalendered paper. “Closing one of our converting facilities and transitioning sheeting operations will result in better geographical distribution, more capacity for sheets, faster turnaround and delivery times for custom sizes, and a wider range of sheet sizes,” reports Rick Willett, president/coo. Follow-up: Link: www.newpagecorp.com/.

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Boise starts up P-S paper machine

Revamped No. 3 paper machine at Boise Paper, Boise, ID, starts producing material for pressure-sensitive (P-S) labels. Machine at Wallula, WA, mill represents part of $80 million capital investment to expand annual production capacity of P-S materials by 200,000 tons. Proprietary technology permits machine to produce coated one-side face stocks, release liners as well as range of uncoated products giving Boise flexibility to meet changes in demand. “We are now achieving our operating and quality targets for the production of coated label and release products while continuing to meet targets on existing uncoated free sheet products,” says Alexander Toeldte, evp, Paper, Packaging & Newsprint. Follow-up: Susan Hawkins, director of Sales, +1 317-908-7605, SusanHawkins@BoisePaper.com; Link: www.boiselabelrelease.com/.

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ShortRuns: Food\Bev Packaging…

BNP Media, Troy, MI, renames Food & Drug Packaging magazine Food & Beverage Packaging, retains Deerfield, IL, office; other changes at BNP related to its August 2007 purchase of food, beverage, packaging magazines from Ascend Media, Overland Park, KS, include renaming Confectioner magazine to Confection & Snack Retailing…

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Changeover: GPI… Tyson… Celestial Seasonings…

Glass Packaging Institute (GPI), Alexandria, VA, elects L. Richard Crawford, president of global glass operations at O-I, Perrysburg, OH, to one-year term as chairman of board of trustees; a 25-year veteran of O-I, Crawford assumed current position in October 2006 after serving as president, Latin American division, director of operations-technology for O-I Europe… Donnie Smith, veteran executive at Tyson Foods Inc., Springdale, AR, moves from gvp of Logistics and Operations Services to gvp of Consumer Products with departure of Scott NcNair, who takes on presidency of home delivery business unit of Schwan Food Co., Marshall, MN; Hal Carper, receives promotion to gvp of Corporate Research and Development, assumes most of Smith’s previous duties; Craig Bacon succeeds Carper as svp of Corporate Research and Development… Michael A. Bloom oversees product innovation, market development, branding, communications as vp, Marketing at Celestial Seasonings, Boulder, CO; joins provider of specialty teas after five-year stint at Nestle, where he served as director of Marketing for Hand-held Foods Group, Englewood, CO… HK Systems, Inc., Milwaukee, WI, promotes John C. Hines from evp/cfo to president of new HK Production Logistics division, while James P. (Jamie) Purko takes on vp/cfo spot, moving up from vp/controller… Kenneth R. Webb joins McKesson Specialty business unit, of McKesson Corp., Scottsdale, AZ, as vp/Operations, Reimbursement, Access Services, oversees 500-employee solutions center supporting company’s expansion in specialty pharmaceuticals… NOVA Chemicals Corp., Pittsburgh, PA, promotes Chris Pappas to president/coo from svp/coo; he heads day-to-day operations, while Jeffrey M. Lipton continues as ceo... Owens-Illinois, Inc. (O-I), Perrysburg, OH, closes glass container manufacturing plant in Scoudouc, NB, Canada, on 31 March 2008, affecting 200 employees; closure leaves company with four glass container manufacturing plants in Canada, 20 in US, including one joint venture… Shareholders of paperboard packaging specialist, Graphic Packaging Corp., Marietta, GA, approve merger with Altivity Packaging, LLC, Chicago, IL, a maker of folding cartons, boxboard, bags, to create Graphic Packaging Holding Co.; completion of merger depends on meeting antitrust requirements, other customary closing conditions…

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Upstream: Transport Packaging… RFID... FDLI-FDA…

International Safe Transit Association, 17-20 March 2008, Disney’s Coronado Springs Resort, Orlando, FL… Food and Drug Administration (FDA), Bethesda, MD, co-sponsors 51st Annual Conference of Food and Drug Law Institute (www.fdli.org), Washington, DC; event scheduled 26-27 March 2008 at L’Enfant Plaza Hotel, Washington, DC, features presentations by US Supreme Court Justice Antonin Scalia, FDA Commissioner Andrew C. von Eschenbach following theme, Scientific Revolution and Legal Evolution: Keeping Pace with Science & Policy Issues in Food and Drug Law... Bob McDonald, coo Procter & Gamble Co., Cincinnati, OH, discusses company’s expectations for radio frequency identification (RFID) technology at RFID Journal Live, 16-18 April 2008 at The Venetian in Las Vegas, NV…

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-- 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.


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