Packaging Management Update 03-10-08



March 10, 2008 -

Ben Miyares' Packaging Management Update®

Ben Miyares' Packaging Management Update®

A weekly summary of packaging business and technology developments

Possible tampering prompts recall of frozen fish fillets; PA woman reports finding pills in family’s servings

Possible adulteration with pills prompts 1,000 case/11 state recall of Gorton’s 6 Crispy Battered Fish Fillets.

Recall by Gorton’s Seafood, Gloucester, MA, involves 11.4-ounce packages of frozen product produced on 16 October 2007, carrying UPC #4440015770, date code 7289G1, best if used by date of April 2009. Affected product ships between December 2007, mid-February 2008 to retail outlets in Alabama, California, Delaware, Florida, Georgia, Mississippi, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas.

Gorton’s initiates recall after receiving complaint from Pennsylvania woman who reported finding pills in the fish she was serving herself and her two children. After calling company, woman took herself, the kids to a local hospital “with fish fillets, pills, and box in hand,” as she subsequently reported on snopes.com, the urban legends website.

Investigation by company, Pennsylvania Department of Agriculture, Harrisburg, PA, Food and Drug Administration, Washington, DC, continues to determine origin of problem. There have been no reports of illness associated with product.

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Redesigned bottle, shrink label seal sales for wood glue

Package redesign reverses flat sales for wood glue from Elmer’s Products, Columbus, OH. “Tradition has its place, but Elmer’s needed a face lift, and a new brand identity for its packaging,” says David Snyder, design director at TricorBraun, St. Louis, MO. “We decided shape and color were the way to help punch up the brand on the shelf.”

Squeezable, natural polyethylene (PE) container from TricorBraun grabs attention with offset neck, which aids in dispensing, slanted top deck, shrink sleeve label featuring Elmer’s blue as base color, orange as contrasting color, matching dispensing closure. When aligned on store shelf, three bottles sizes, 4-, 8, 16-ounce, create point-of-purchase display. Silhouette, label differentiate Elmer’s wood glue line from lower priced competitor products housed in stock, natural PE squeeze bottles.

Redesign wins American Packaging Design award for packaging, point of purchase, in-store graphics from Graphic Design USA magazine, New York, NY. Follow-up: Suzanne Fenton, CPP, director of marketing, +1 314-569-3633, sfenton@tricorbraun.com; Link: www.tricorbraun.com.

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Packaging Technologies acquires MAP Systems

Packaging Technologies, Davenport, IA, acquires MAP Systems, division of Clear Lam Packaging, Inc., Elk Grove Village, IL. MAP Systems joins KartridgPak, KP Aerofill, Autoprod, Holmatic brands of packaging machinery under Packaging Technologies umbrella. Patented vacuum-less MAP Systems technology delivers inert or active gases into primary package, product to maintain freshness, extend shelf life, enabling expanded distribution, reduction in use of preservatives. “Modified atmosphere packaging is not new for the industry, however, the emphasis for longer shelf life has proliferated to a variety of products in the movement to remove food additives,” says Barry Shoulders, president/ceo, Packaging Technologies. Follow-up: Marketing Department, +1 563-391-1100; Link: www.oystar.packt.com.

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Breakfast kit entices kids with easy-open package, sweepstakes

Grab-and-go, handled, 100% recycled clay-coated newsback carton kicks off Breakfast Breaks, first shelf-stable breakfast kit. Designed to overcome traditional barriers to kids eating breakfast, “3-in-1 breakfast in a box” from ESE Foods, subsidiary of East Side Entrees, Woodbury, NY, holds single-serve Bowl Pack of cereal from General Mills, Minneapolis, MN; 200-millilitre (6.75-ounce) aseptic carton of 100% fruit juice from Minute Maid, division of Coca-Cola Co., Atlanta, GA; nutritious snack such as raisins in flowpack pouch; plus utensils, napkin. Bright blue, yellow graphics depict cereal bowl, juice, snack inside, announce, “Easy, Nutritious…Just Add Milk,” include photograph of Jonas Brothers, musical group that advertises Breakfast Breaks, entry form for Breakfast Like a Superstar sweepstakes. According to ESE marketing spokesperson, “Our goal was to create a package that would clearly communicate the products and promotions and at the same time, be fun for kids. We conducted quite a bit of market research with both moms and kids to zero in on an ideal package type and design.” Secondary carton opens at perforation that extends down edges of front panel, which flips up to form tray. Integral carry handle at top features “breakfast grabber” printed in yellow reverse type on blue background. Although company declines to identify packaging suppliers, it confirms carton consists solely of recycled fiber. Available in kid-friendly varieties such as Cheerios, Cinnamon Toast Crunch, Honey Nut Cheerios, Lucky Charms, breakfast kit sells nationally for suggested retail price of $2.49, also comes in in-school version.

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Court upholds validity of cushioning converting machine patent

Federal Supreme Court in Germany upholds validity of European Patent 0 677 379 held by Ranpak Corp., Concord Township, OH. Patent covers machine for converting material such as multi-ply paper sheets into dunnage. Decision rejects nullity complaint filed by Storopack Hans Reichenecker GmbH, Weinstadt, Germany, in 2002, strengthens Ranpak’s case in pending appeal related to infringement proceedings brought against Storopack, as well as NaturEmbal SA, Bouxwiller, France, which was filed in 2000 before District Court of Düsseldorf, decided in favor of Ranpak, appealed by Storopack, NaturEmbal. Follow-up: Tara Foote, director of marketing, +1-440-350-8078, foote.tara@ranpak.com; Link: www.ranpak.com.

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Union of RFID specialists provides one-stop shopping

Indicative of consolidation occurring among radio frequency identification (RFID) technology providers, Sirit, Toronto, ON, Canada, acquires RSI ID Technologies, Inc., Chula Vista, CA. Deal combines Sirit’s range of readers, modules with RSI’s vertically integrated antenna design, inlay manufacturing capabilities to provide one-stop shopping for customers. All-stock transaction consists of initial payment of 10 million Sirit common shares with additional shares to be issued during next 21 months if financial targets are met. Stock closed at C$0.27/share (US$0.27) on 4 March 2008, making initial payment worth nearly $3 million. Stock has been as high as $0.53 during past 52 weeks. Closing, which should occur about 1 April 2008, awaits regulatory approvals. Plans call for RSI to continue to operate from California. “This deal represents a key strategic growth opportunity for Sirit, building upon our readers and specialized active tag product offerings,” says Norbert Dawalibi, Sirit president/ceo. “The combination with RSI will assist us to attain our goals of increasing revenue, strengthening of our intellectual property portfolio and expanding our geographic presence,” he concludes. Follow-up: At Sirit, Marketing Department, +1 416-367-1897, marketing@sirit.com; Link: www.sirit.com; at RSI, Marketing Department, +1 619-656-2515; info@rsiid.com; Link: www.rsiid.com.

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USP publishes sixth edition of Food Chemicals Codex

US Pharmacopeia (USP), Rockville, MD, publishes sixth edition of Food Chemicals Codex (FCC). Reference, previously published by Institute of Medicine, Washington, DC, sets standards for identity, quality, purity of food ingredients, including colorings, flavorings, nutrients, preservatives, processing aids. “With the increasing globalization of the food supply, the availability of pure and safe foods is more important than ever,” says Darrell Abernethy, MD, PhD, cso for USP. “This latest edition of the Food Chemicals Codex will help assure that food ingredients are meeting high standards of quality for public consumption, just as USP has done with pharmaceutical products for close to 200 years.” Publishing schedule calls for seventh edition in 2010 with annual supplements in between. Submit proposed revisions, comments to FCC Forum at www.usp.org/fcc/forum. Follow-up: Information/Orders; Link: www.usp.org/fcc.

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Smurfit-Stone honors plants for performance, safety

At Smurfit-Stone Container Corp., St. Louis, MO, three plants earn 2007 Plant of the Year awards for efforts in recycling, safety, performance. Anchorage Recycling division, Anchorage, AK, achieves company record, recovers more than 7.0 million tons of recyclables in 2007. In addition, despite working outside in difficult weather, division marks seven years without recordable safety incident as measured by Occupational Health and Safety Administration (OSHA), Washington, DC. Second honoree, Smurfit-MBI, Toronto, ON, Canada, a corrugated container business unit with multiple facilities, design center, wins for world-class safety record (0.89 recordable case rate as measured by OSHA), centralization of functions like planning, transportation, logistics, increased volume, higher productivity, cost reduction. Third winner, Smurfit-Stone’s containerboard mill in Panama City, FL, receives recognition for identifying manufacturing options to adjust to declining availability, rising price of hardwood, controlling production costs, improving profitability. With broadened capabilities, unit uses more softwood, produces unbleached pine pulp on linerboard machine, baled pine bleached pulp, roll fluff pulp on pulp machine. Machines operate at uptimes of 95%, 98%, respectively. Follow-up: Link: www.smurfit-stone.com.

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Lidstock study examines trends, technologies

Flexible Lidstock Packaging - Markets and Technologies 2008 to 2012 study from Allied Development Corp., Burnsville, MN, details materials, structures, application techniques. Off press 27 February 2008, report analyzes North American market trends, drivers, projections. Wide-ranging study details more than 70 end-use categories, examines lidstock market from viewpoints of buyers, producers, materials/structure (printed versus unprinted, barrier versus non-barrier, microwaveable versus non-microwaveable, etc.). Text also discusses key technologies such as high temperature processing, modified-atmosphere packaging, as well as equipment profiles. Available in print or electronically, study costs $4,495 plus shipping for print version. Follow-up: Order Department, +1 952-898-2000, Sales@allied-dev.com; Link: www.allied-dev.com.

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PMMI members publicize what they’ll be showing at Interpack

Packaging Machinery Manufacturers Institute (PMMI), Arlington, VA, creates Interpack Product Showcase on its website. Showcase publicizes what members plan to exhibit at Interpack trade fair, 24-30 April 2008 in Düsseldorf, Germany, represents first of several online links to help packagers locate North American-based packaging technology on display at huge, triennial show. About 135 PMMI member companies plan to exhibit. Association also hosts press luncheon at Interpack. Scheduled for 1 p.m. on Thursday, 24 April, presentation focuses on Packaging Trends from PMMI: Making Sense of Packaging’s Future. Follow-up: www.pmmi.org/a/tradeshowprsearchall.asp?tsID=3&navitemid=234.

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DOJ puts conditions on Graphic Packaging/Altivity merger

US Department of Justice (DOJ), Washington, DC, puts conditions on $1.75 billion merger between Graphic Packaging Corp., Marietta, GA, and Altivity Packaging, LLC, Chicago, IL. Proposed settlement between DOJ, merger participants awaits approval by US District Court for District of Columbia, requires divestiture of two coated recycled paperboard mills owned by Altivity to preserve competition in market for coated recycled boxboard (CRB) for folding cartons. Altivity ranks as largest producer of CRB in North America, Graphic holds fourth place. Both companies also rank as major integrated producers of folding cartons made from CRB. Together, two firms generate about $1 billion annually from CRB, CRB folding carton sales. According to DOJ, without divestitures, merger would result in company with approximately 42% of production, sale of CRB in North America. “The proposed merger would have created incentives for the combined company to reduce CRB production capacity or output, which would result in increased CRB prices,” explains Thomas O. Barnett, assistant attorney general in charge of DOJ Antitrust Division. Proposed settlement calls for sale of Altivity mills in Wabash, IN; Philadelphia, PA; or Santa Clara, CA; if sale of Philadelphia mill does not go through. DOJ accepts written comments about proposed settlement for 60 days after publication in Federal Register. Follow-up: Divestiture Sale, Donald W. Sturdivant, +1 847-437-1700; Investor Relations, Scott Wenhold, +1 770-644-3062; Product Marketing; Link: www.graphicpkg.com; www.altivity.com.

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New graphics speak to consumers wanting healthy food for pets

Package redesign for high-end pet food company refines brand, packaging system, label graphics, emphasizes natural ingredients. New look for canned, dry pet food from Halo, Purely for Pets, Tampa, FL, strengthens message to consumers concerned about product safety after 2007’s recalls. Halo turns to design agency, Catapult Thinking, Boston, MA, to develop language, images for three product lines: meals/treats, supplements, grooming. Agency integrates original purple, gold, blue with additional colors to differentiate product categories. Illustrations in pastel shades of pet owner interacting with pet serve as primary graphic element. For wet food, two-piece aluminum cans with easy-open ring pull end hold 3.5 or 7.5 ounces of cat food or 5, 13 or 20 ounces of dog food, sport paper labels printed in six colors (four-color process, plus two spot colors) at multiple converters across US. New dry products feature 1-, 3-, 4-, 6- or 10-pound bags with zipper closure, which is commonly seen for pet treats, but unusual for pet food. “Halo came to us with some great products, but no real recognizable brand identity,” recalls Mike Mooney, partner at Catapult. “We…adapted the brand messages and packaging to speak clearly about holistic pet care. We also highlighted the superior quality of ingredients in their pet food line, as our research showed consumers are demanding more natural products.” Products such as Spot’s Stew puppy and adult dog formula, wholesome turkey recipe for cats, boast large print proclaiming, “The Original. Great Taste. Natural Ingredients.” Follow-up: Doug Sapp, director Business Development, +1 617-350-5277,
dougs@CatapultThinking.com; Link: www.catapultthinking.com.

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PP ice cream packaging combines clarity with impact strength

Unilever UK Foods, Crawley, UK, selects clear, injection molded polypropylene (PP) containers/lids for Carte D’Or ice cream. Clyrell EC340R PP resin from LyondellBasell, Rotterdam, The Netherlands, delivers flowability, rigidity, impact strength ice cream packaging requires. With melt flow of 25 grams/10 minutes (g/min), Clyrell EC340R outperforms PP resins generally used for ice cream packaging, which exhibit average melt flow rate of 15 g/10 min. Resin also exhibits good impact resistance at temperatures down to -20 C. “In general, increased flowability leads to a significant reduction of impact strength, but we managed…to achieve exceptional flowability without altering rigidity and impact strength,” says Nathalie Cartiaux, technical service manager for Injection Moulding at LyondellBasell. “The higher level of impact resistance and stiffness enabled Unilever to achieve high top load potential without distortion, which helped them optimize their manufacturing processes for ice cream.” Combination of rigidity, flowability enables 10% reduction in wall thickness, lighter container weight. “In the long run, this thin-wall injection molding resin will help customers reduce their contribution to waste recovery systems such as Green Dot in Germany, as manufacturers have to contribute to these programs based on the weight of each package they produce,” says Cartiaux. Optimized molecular structure of microwave-compatible resin reduces stress whitening. Follow-up: Mark Mendelson, polymers marketing, +1 302-683-8141, mark.mendelson@lyondellbasell.com; Link: www.lyondellbasell.com.

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Rollprint celebrates 75th anniversary

Rollprint Packaging Products, Inc., Addison, IL, developer of chevron header pouch, pioneer in Tyvek medical packaging, celebrates 75 years as supplier of flexible packaging for food, healthcare, industrial applications. Privately held company, owned by Dodrill family since 1975, operates joint venture with Acme Packaging Co. (Pte) Ltd., Singapore, plans to expand worldwide presence through acquisitions. Follow-up: Tony Paolino, vp of Sales and Marketing, +1 508-520-9784, tpaolino@rollprint.com; Link: www.rollprint.com.

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Product losses far outweigh investment in brand protection

nternational Market for Brand Protection Solutions study from Vandagraf International Ltd., Mid-Glamorgan, UK, evaluates sector from 2006-2011. Report predicts annual financial loss due to counterfeiting, piracy, tampering, theft, which hit approximately $610.0 billion in 2006, will increase, fueled primarily by trade with China, internet commerce. Second edition of report, first published in May 2004, reveals protection solutions only amount to about $3.7 billion or around 0.6% of cost of product-related crime. Targeted toward suppliers of brand protection technologies, brand protection-enabled packaging/labels, comprehensive, 300-page report contains breakdowns of more than 20 end-user sectors, covers approximately 100 individual product categories with market estimates, forecasts to 2011. Published in two volumes, cost is €3,450 (US$5,300) for both, 50% for one. Follow-up: Order Department, +44 1443 231 441, info@vandagraf.com; Link: www.vandagraf.com.

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Changeover: PneumaticScaleAngelus… Monosol… CPSC…

PneumaticScaleAngelus, Cuyahoga Falls, OH, division Barry-Wehmiller Cos., Inc., St. Louis, MO, promotes three to vp: Paul Kearney, vp of new machine sales; Jim Foley, vp of after-market sales; David Utrup, vp of customer service; they report to William Morgan, president… John Singer joins MonoSol LLC, Merrillville, IN, as vp of New Business Enterprise Development, responsible for expanding global use of company’s water-soluble films in unit-dose food, other applications… Unisource Worldwide, Inc., Norcross, GA, names Nancy C. Geisler vp of Sustainability; new position sharpens firm’s focus on environmental responsibilities; Geisler, who most recently served as senior director of Marketing for Packaging and Facility Supplies, recently completed assignment to develop marketing-related “green” programs for Packaging and Facility Supplies… Cheryl Falvey joins US Consumer Product Safety Commission (CPSC), Washington, DC, as general counsel after serving as partner in Akin Gump Strauss Hauer & Feld LLP, Washington, DC where she headed litigation practice group, advised clients on consumer product safety issues, recalls with special focus on toys, children’s products, household electronics, appliances… Nomination Committee of board of directors at Huhtamaki Oyj, Espoo, Finland, recommends shareholders re-elect Eija Ailasmaa, George V. Bayly, Robertus van Gestel, Mikael Lilius, Anthony J.B. Simon, Jukka Suominen; elect Rolf Börjesson, retiring chairman/ceo of Rexam plc, London, UK, to replace Paavo Hohti, who chose not to stand for reelection…

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Upstream: Sustainable Packaging…

Packaging Strategies, West Chester, PA, holds fourth annual Sustainable Packaging Forum, 9-11 September 2008 at Denver (CO) Marriott Tech Center; under new certification/reporting process, Sustainable Packaging Forum Advisory Board verifies sustainability claims made by speakers, exhibitors…

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ShortRuns: Silgan/Grup Vemsa… LyondellBasell/Solvay…

Silgan Holdings Inc., Stamford, CT, completes purchase of metal vacuum closures business of Grup Vemsa 1857, SL, Barcelona, Spain, including Vem de Tapas Metalicas (Spain), Vac Vem (China) [PMU, 25 February 2008]… LyondellBasell Industries, Lansing, MI, completes acquisition of Solvay Engineered Polymers, Inc., Mansfield, TX, strengthens capabilities in polypropylene compounding; Steve Dwyer, vp, Automotive Americas, heads newly combined North American business unit, LyondellBasell Advanced Polyolefins USA, Inc… Multi-Color Corp., Sharonville, OH, completes purchase of Collotype International Holdings Pty. Ltd., Adelaide, Australia, for A$200 million (US$188 million) plus additional A$10 million (US$9.4 million) upon achieving finance targets; sale includes label production ops in Australia, South Africa, US…

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EarningsUpdate: Chesapeake… Caraustar…

At Chesapeake Corp., Richmond, VA, increased sales in paperboard packaging, plastic packaging segments boost net sales 6% to $1.1 billion in 2007 from $995.4 million in 2006; restructuring costs, other expenses put pressure on earnings, result in net loss of $15.5 million in 2007 compared to net loss of $39.6 million in 2006… At Caraustar Industries Inc., Atlanta, GA, slower economy reduces sales 8.4% to $854.2 million in 2007 from $933.0 million in 2006, while restructuring/impairment expenses, high fiber/energy costs result in loss of $24.5 million in 2007 compared to net income of $47.3 million in 2006…

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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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