Packaging Management Update 06-30-08



June 30, 2008 -

Ben Miyares' Packaging Management Update®

Ben Miyares' Packaging Management Update®

A weekly summary of packaging business and technology developments


PACK EXPO preview: Nestlé, Deloitte, Dow set to keynote PACK EXPO’s “Change, Innovation & Sustainability” program


“Change, Innovation & Sustainability” will be the theme for the Conference at PACK EXPO held in Chicago’s McCormick Place in conjunction with PACK EXPO International, 9-13 November 2008. Conference keynoters will be: Betsy Cohen, Vice President of Sustainability for Nestlé USA, Inc., Trevor Cusworth, Director, Deloitte Consulting LLP, and Glenn A. Wright, Commercial Vice President, North American Basic Plastics, The Dow Chemical Co.

In her November 10 address, “More Safety vs. Less Material? Where Does Packaging Go?”, Cohen will discuss the packaging challenges, conflicts and competing values corporations face today.

Cusworth’s Tuesday keynote charts a high-level roadmap for translating corporate sustainability visions into sustainable manufacturing practices in “Packaging Sustainability: From the Boardroom to the Break Room.”

On Wednesday, November 12, Wright debunks sustainability myths, describes how packaging contributes to sustainability, helps packagers achieve brand-strengthening sustainability goals in “Packaging — Elemental to a Sustainable Future.”

Organized into tracks that include “Upgrading Operations,” “Sustainability,” “Containers & Materials” and “Brand Protection” – the Conference at PACK EXPO consists of 57 presentations, picked from more than 100 proposals with guidance from a panel of packaging professionals Panelists include Curtis Babb; Director, Packaging Innovation; Coors Brewing Co.; Michael Bryant; Senior Packaging Research Engineer; Welch Foods; Robert C Collins II; Director, Global Package Development; P & G Gillette; Tom Egan; VP, Industry Services; PMMI; Mary Ann Falkman; Packaging Writer/Editor; Judy K. Fischer; Senior Packaging Engineer Manager; Sargento Foods; Jay Gehring; VP, R&D Packaging; Frito-Lay; Jennifer Griffin; Principal Packaging Engineer; Medtronic; Asad Hamid; VP, Global Packaging R&D; Campbell Soup; Tom Heaslip; Director, Global Oral Care Packaging; Colgate-Palmolive; Christian Keator; Area Manager – Packaging Engineering; BIC Consumer Products USA; Yolanda A. Malone; Director of Packaging Development; ConAgra Foods; Rebecca L Oesterle; Manager – Global Packaging Development; Energizer Holdings; John G Ratcliff; Director of Packaging; Nestlé Purina; Sean Riley; Editor; Packaging Machinery Technology ; James E Scott; Principal; JES Packaging; David J. Wiemann; Senior Director of Packaging; Beam Global Spirits & Wine.

PACK EXPO Preview:
For Conference program details, discount PACK EXPO Exhibition and Conference registration, go to www.packexpo.com before October 21.

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Liqueur maker scores first with opaque black PET bottle

White Rock Distilleries, Lewiston, ME, commercializes first opaque black polyethylene terephthalate (PET) liquor bottle. Custom 1.75-litre bottle from Amcor PET Packaging, Manchester, MI, holds Ryan’s Irish Style Cream Liqueur. Conversion from light brown stock PET bottle follows 2007 transition of 750-millilitre, 1L sizes from light brown stock glass to proprietary black glass bottles. With cream liqueur visible through sidewall of brown PET container, “The time had come to extend the redesign to include our largest size,” says Marguerite Provandie, associate director of marketing, White Rock Distilleries. “That’s when we decided to invest in custom molds that would come as close as possible to extending the look of our new glass to PET,” she adds. Redesign also includes new label to match graphics on glass bottles. “We were looking for more of an upscale look then the previous design,” explains Provandie. “The typeface and imagery we chose combines a traditional Irish look with an ‘old world’ feel,” she notes. Tamper-evident, black, 33-millimetre polypropylene closure from Berry Plastics Corp., Evansville, IN, completes package. Translation of glass design to PET poses several hurdles, reports Provandie. “…we have a ‘brow’ over the top of the label. It was a challenge to duplicate the glass version’s length and indentation. We also have a crest on the shoulder which had to be tweaked to achieve the desired embossing.” Solution involves proprietary heating techniques as well as close collaboration with colorant supplier, Colormatrix, Berea, OH. “Creating a black PET bottle presents a unique challenge,” explains Jonathan Jarman, project engineer, Amcor. “The primary issue is that a dark, opaque color absorbs the heat differently than anything else we produce.” Amcor produces container at plant in Nicholasville, KY. Filling occurs at White Rock’s facility in Lewiston. Follow-up: At Amcor, Latricia Fry, marketing manager, DPD, +1 734-302-2802, latricia.fry@amcorpet.com; Link: www.amcor.com; at Berry Plastics, Marketing Department, +1 812-306-2000; Link: www.berryplastics.com; at Colormatrix, Marketing Department, +1 216-622-0100; Link: www.colormatrix.com.

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EU wants to recycle 50% of household waste by 2020

Compromise waste directive approved by European Parliament, Brussels, Belgium, calls for 50% recycling of household waste by 2020. Although target is not binding, noncompliance could land member states in court. Directive prioritizes waste processing options with prevention cited as most preferred, followed by reuse, recycling, recovery, disposal, classifies incineration as recovery. Critics complain targets are not stringent enough, noting some member states already recycle waste at levels above 50%. Directive takes effect after publication in European Union Official Journal, gives member states two years to implement it with national law. Follow-up: Link: www.euractiv.com/en/environment/watered-waste-directive-gets-meps-green-light/article-173447.

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VFFS machine withstands washdowns with caustic cleaners

Ultimax CM vertical form-fill-seal (VFFS) machine from Barry-Wehmiller’s HayssenSandiacre, Duncan, SC, withstands most stringent washdown/rinse protocols. Continuous-motion bag maker with stainless steel parts, sealed electrical components, solid rounded frame members, sloped surfaces meets sanitation needs of pre-cooked proteins, fresh produce, fresh meat/poultry packagers. With 67.5 x 103.1-inch footprint, low height (87 inches), machine fits in tight spaces, handles bags up to 15 inches wide. Other features include tool-less changeover, Allen-Bradley ControlLogix controller from Rockwell Automation, Milwaukee, WI, Allen-Bradley Versa View multi-language operator interface with 12-inch display, quick response screens, resident manuals. Models include CM10, CM10 Duplex, CM13, CM15. Follow-up: Lacy Cooper, marketing coordinator, +1 864-486-4251, sales@hayssensandiacre.com; Link: www.hayssensandiacre.com.

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Resealable aluminum bottle strikes with energy

New 16.9-ounce aluminum bottle with 38-millimetre roll-on pilfer-proof closure energizes market for Venom low-carbohydrate/calorie energy drink from Dr Pepper Snapple Group, Plano, TX. Although company declines to identify supplier, most likely source of straight-sided, resealable aluminum bottle with gently sloped shoulder appears to be CCL Container, Hermitage, PA. Explaining choice of material, Darrell Bentley, senior packaging engineer for Dr Pepper Snapple, says, “Aluminum is superior to a majority of alternatives and allows us the opportunity for the desired product shelf life. The new packaging for Venom is resealable, portable and easier to drink from than a regular can. The large opening on the container allows the user to consume the beverage more easily/readily. Unlike energy drinks in cans, the resealable package also allows the consumer to enjoy the product during multiple occasions without concerns of carbonation loss or spillage.” Closure, litho-printed in three colors, complements bottle’s eight-color, litho-printed graphics. Brooding black background shows off reverse-printed flavor over blazing red/black snake-like eye, name bookended with dripping V, elongated M. “Venom will accelerate Dr Pepper Snapple’s entry into the fast growing energy drink market by delivering a jolt of energy in new killer packaging,” says Charlotte Dimery, director of marketing for Venom, adding, “Its piercing energy that strikes back in a new resealable bottle delivers something new and functional in the competitive energy landscape.” Sold singly in two flavors, Black Mamba, Mojave Rattler, Venom energy blend sells for suggested price of $2.29.

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Biomass powers boxboard plant

Biomass-fueled power plant generates electricity for Cascades SA, Division La Rochette, subsidiary of Cascades Inc., Kingsey Falls, QE, Canada. Scheduled to be operational in 2010, Cascades anticipates cogeneration plant to return 40 million kilowatt hours of electricity to France’s power grid while reducing coated boxboard mill’s carbon dioxide emissions by 7,500 tons. Plant, managed by Cofathec subsidiary of Gaz de France, Paris, France, relies on wood gasification technology, a first for France. “This undertaking will make it possible for us to virtually eliminate our use of fossil energy, replacing it with biomass energy, to achieve better control of our energy costs and to pool our equipment operating costs,” says Daniel Parrot, md of Cascades SA, Division La Rochette. Biomass also supplies other power needs via new €2 million (US$3.1 million) turbine-driven alternator, which produces 5.4 megawatt hours of electricity.

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Mayors resolve to buy less bottled water

In latest wave of controversy over environmental impact of bottled water, US Conference of Mayors, meeting in Miami, FL, passes resolution discouraging its purchase by city governments. Resolution encourages mayors to phase out city spending on bottled water, promote municipal water, redirect taxpayer dollars to essential city services, acknowledges exceptions may be necessary in situations where safe, clean municipal water is unavailable. “Cities are sending the wrong message about the quality of public water when we spend taxpayer dollars on water in disposable containers from a private corporation,” says Gavin Newsom, resolution author, who serves as mayor of San Francisco, CA. “Our public water systems are among the best in the world and demand significant and ongoing investment,” he adds. Applauding action by mayors, Gigi Kellett, national director of Think Outside the Bottle campaign organized by Corporate Accountability International, Boston, MA, notes, “This resolution will send the strong message that opting for tap over bottled water is what’s best for our environment, our pocketbooks and our long-term, equitable access to our most essential resource.” Critics include American Beverage Association (ABA), Washington, DC. “A few mayors have chosen sound-bite environmentalism over sound public policy in their zeal to appease liberal activist groups that are pedaling misinformation about bottled water,” contends Kevin Keane, svp ABA. “There’s great irony in the fact that beverage companies are actively helping mayors in flood-ravaged communities in the Midwest recover, while a handful of mayors in Miami are attacking the water products providing those residents with safe drinking water and good health,” he adds. “We believe that common sense will prevail when mayors return to their communities, as most recognize more pressing challenges are facing their communities than concerns about a healthy water beverage,” he concludes. Follow-up: At Corporate Accountability; Link: www.stopcorporateabuse.org/, www.thinkoutsidethebottle.org/; at ABA; Link: www.ameribev.org/.

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Job bank debuts on Packexpo.com

Career Center at Packexpo.com, new online tool for job seekers, employers of packaging professionals, provides audience of 100,000 monthly visitors. Site at http://careers.packexpo.com, established by Packaging Machinery Manufacturers Institute, Arlington, VA, allows employers to manage job postings online, include company information as well as link to corporate website. Database search feature matches candidates to job criteria, advises employers when resumes of interest arrive. Introductory offer discounts job posting fee 25% through 7 July 2008 (use promotional code, LAUNCH). Follow-up: Career Center, careers@pmmi.org; Link: http://careers.packexpo.com.

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Innovations in snack food packaging sweep win for Toray

Toray Plastics (America), Inc., North Kingstown, RI, wins 2007 Supplier of the Year award from Frito-Lay, division of PepsiCo., Purchase, NY. Toray’s customized barrier packaging films such as clear or metallized oriented polypropylene help keep products fresh, grow business. “The Toray Plastics (America) team…excelled on a variety of levels, including packaging product development and strategic international planning,” reports Michel Hogan, senior group manager at Frito-Lay North America. Follow-up: Kathryn Narkevicius, product development manager, +1 401-294-4511, Kathryn.Narkevicius@toraytpa.com; Link: www.TorayFilms.com.

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Merger creates ‘one-stop-shop’ for RFID-based solutions

Checkpoint Systems, Inc., Thorofare, NJ, acquires OATSystems, Inc., Waltham, MA, in undisclosed cash transaction expected to close by mid-July 2008. Deal merges leading radio frequency identification (RFID) firms, brings together complementary electronic article surveillance (EAS), inventory management technologies to serve international client base. Checkpoint supplies identification, tracking, security, merchandising solutions, while OATSystems provides RFID software, middleware. Checkpoint’s Rob van der Merwe, president/ceo, says, “The addition of OATSystems builds upon our previously announced strategy to help retailers and their suppliers migrate more easily with our Evolve EAS platform to Electronic Product Code RFID.” Plans call for Michael George, president/ceo of OATSystems, to operate business as division of Checkpoint. Follow-up: At Checkpoint, Jennifer Henry, manager – marketing services, +1 800-257-5540, ext. 2150, jennifer.henry@checkpt.com; Link: www.checkpointsystems.com; at OATSystems; Link: www.oatsystems.com.

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Press allows dairy to switch to flexo-printed shrink sleeves

Quality, reduced costs, availability of short runs convince Neilson Dairy, Georgetown, ON, Canada, to switch from gravure- to flexo-printed shrink sleeves. Labels for dairy’s Canadian brands run on new PRIMAFLEX® CM Flexographic Press from Windmoeller & Hoelscher Corp., Lincoln, RI, purchased by Reynolds Flexible Packaging, Richmond, VA. Ten-color press installed at Reynolds’ Downingtown Packaging Plant, Downingtown, PA, delivers gravure-comparable print quality on film, paper, laminates. “As one of the leading suppliers of shrink labels in the US, we are very excited to offer our customers the opportunity of virtually gravure quality printing but with the economies of flexo,” says Terry Copenhaver, marketing manager at Reynolds. Press features “easy-set” fully automatic impression setting system, latest generation TURBOCLEAN® 600 automatic inking/wash-up system. Sleeve-type, quick-change plate cylinder, anilox roll changeover systems, automatic viscosity control, inline slitting expedite changeover. In addition, new digital plate making technology now up and running at Downingtown reduces set-up time, plate costs. Follow-up: Victoria Welch, +1 804-281-2262, Victoria.Welch@reynoldspkg.com; Link: www.reynoldspkg.com.

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Packaging line problems prompt recalls of soup, bottled water

Changeover snafus cause recalls of canned soup, bottled water. Mislabeling prompts recall of 120 10.5-ounce cans (five cases) of Kroger Chicken Noodle Soup by Bay Valley Foods, Westchester, IL, because cans may actually contain Cream of Celery Soup. Mixup poses special danger to consumers with milk allergies since Chicken Noodle Soup labels don’t list milk on ingredient list. Bottom of affected cans carry lot code 52104098, “best before” date code of 40910 (April 9, 2010). Likely recipients include Dillon stores in Kansas, Missouri, Nebraska.

Nestle Waters North America, Greenwich, CT, recalls approximately 150 1-gallon containers of Nestle Pure Life Purified Drinking Water from Shop-Rite stores in Connecticut, Delaware, New Jersey, New York, Pennsylvania because they may contain diluted food-grade cleaning agent that imparts off-taste to water, could pose hazard to health if ingested in large quantities over extended period of time. Recall only involves containers produced between 8, 9 a.m. on 5 May 2008. Affected containers carry two-line product date code on shoulder with first line consisting of 050508126WF024, second line starting with 08.

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Data logger delivers real-time information

DataTrace RF System transmits temperature, humidity, pressure data in real time to personal computer via radio frequency (RF) network. Data logger from DataTrace Division of Mesa Laboratories, Inc., Lakewood, CO, monitors online or distribution environment, consists of transmitters, signal relay devices (repeaters), receiver (host), software, operates on proprietary DTLinc 2.4 gigahertz network. Software complies with 21 CFR Part 11 requirements related to electronic signatures, simplifies setup, data collection, report generation. AutoRecover feature ensures 100% of data is received, stored in database, prevents data loss. Follow-up: Loretta Baca, product manager, +1 303-565-4832, datatracesales@mesalabs.com; Link: www.mesalabs.com/.

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Top executives want global commitment to reduce GHG

Voicing concerns of many executives, global packagers, Alain Belda, chairman of Alcoa, New York, NY, urges national leaders to pledge to cut greenhouse gas emissions in half by 2050. Belda, who serves as member of steering board of World Business Council for Sustainable Development, Conches-Geneva, Switzerland, joins 98 other executives in presenting policy recommendations to leaders meeting at Group of 8 (G8) summit, 7-9 July 2008 in Hokkaido, Japan. “We know we must address climate change,” Belda states, adding, “We may not have sorted out every detail, but we are willing to take a leadership position and embrace open dialogue…that will get us all to our common goals of protecting our world for future generations.” G8 members include Canada, France, Germany, Italy, Japan, Russia, UK, US with participation from European Union. Follow-up: Link: www.alcoa.com.

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No packaging material or region escapes price increases

Steel cans for foods, beverages appear to be poised for price hikes. According to recent announcements, not only is steel in short supply, trading at record high of $1,225/ton on London (UK) Metal Exchange, but iron ore prices hit new peak. China’s largest steelmaker, Baosteel Group, Shanghai, China, agrees to 2008-2009 contract that nearly doubles price it pays Rio Tinto plc, London, UK, for metric ton of iron ore. Paperboard prices remain on upward course too with Graphic Packaging International, Marietta, GA, boosting prices $40/ton for Pearl-Kote, Omni-Kote, Aqua-Kote coated unbleached kraft shipped on or after 1 August 2008. Company also plans to implement freight allowances that shift portion of transportation cost to customers. Pregis Protective Packaging Europe, subsidiary of Pregis Corp., Deerfield, IL, announces price increases of up to 10% on products such as film-, foam-, paper-based cushioning materials, implementation of fuel surcharge to offset rising costs. After hiking prices in December 2007, March 2008, June 2008, Tronox Inc., Oklahoma City, OK, adds $150/ton increase to all grades of titanium dioxide, a pigment commonly used in plastic, paper, coatings. New pricing takes effect 15 July 2008 for material sold in Asia-Pacific region. On polymer side of business, LyondellBasell Industries, Rotterdam, The Netherlands, increases prices by €100/ton ($157/ton) for polyethylene grades, €40/ton ($63/ton) for polypropylene grades sold in Europe, effective 1 June 2008. Increase of €120/ton ($189/ton) takes effect 1 July 2008 in Europe for PP resins based on Catalloy process, marketed under trade names Adflex, Adsyl, Softell, Hifax.

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Contract packager aseptically fills RTD, tube feeding products

Farmland Dairies, Wallington, NJ, begins manufacturing, aseptically filling clinical, long-term care, sports beverages for Millennium Biotechnologies, Inc., Basking Ridge, NJ. Three-year contract covers ready-to-drink (RTD), as well as tube feeding products. Shelf-stable products include Resurgex, Resurgex Select, Resurgex Plus nutritional formulas for cancer patients, Surgex sports nutrition formula, Resurgex Essential, Resurgex Essential Plus nutritional formulas for assisted living community. Filling occurs at Farmland’s facility in Grand Rapids, MI. “After a diligent selection process, we have selected Farmland for the quality of their aseptic facilities, their proximity to the heart of our current customer bases, and stringent standards of their kosher manufacturing facilities,” recalls Mark Mirken, Millennium president/coo. “They clearly have the capacity to meet our current needs with scalable capacity to accommodate our future growth both domestically, as well as internationally,” he adds. Farmland fills fresh, shelf-stable milk, cream, juice drinks under variety of brand names. Follow-up: Link: www.farmlanddairies.com.

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Domino expands laser coding repertoire

Domino Printing Sciences plc, Bar Hill, UK, expands capabilities in laser coding beyond packaging with acquisition of solid state laser marking specialist Photon Energy GmbH, Ottensoos, Germany. Deal for €4 million ($6.3 million) includes Photon subsidiary, NWL Lasertechnologie GmbH, brings Domino expertise in solid-state laser marking technologies for plastic, metal, as well as surface decoration applications in automotive, other industrial sectors. Follow-up: Sheila Richardson, group marketing manager, +44 1954 782551, sheila.richardson@domino-uk.com; Carl Traynor/Lisa Apolinski, Domino Amjet, +1 847-244-2501, ctraynor@dominoamjet.com, lapolinski@dominoamjet.com; Link: www.domino-printing.com.

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Changeover: NatureWorks… Cognex… Cloud…

Polylactide resin maker NatureWorks LLC, Minnetonka, MN, names Marc Verbruggen president/ceo; he replaces Dennis McGrew who remains with company in advisory capacity; Verbruggen previously served as president of Toho Tenax America, Rockwood, TN, a maker of carbon fiber and subsidiary of NatureWorks joint venture partner Teijin Ltd., Osaka, Japan… Robert Willett joins Cognex Corp., Natick, MA, as president, Modular Vision Systems Division, reporting to Dr. Robert J. Shillman, chairman/ceo; Willett hails from position as gvp Business Development, Innovation of Product Identification business group of Danaher Corp., Washington, DC; he also served as president of Danaher’s Videojet Technologies subsidiary after 2003 sale of Willett International to Danaher… Cloud Packaging Solutions, St. Louis, MO, promotes Les Teague to president, Personal Care and Industrial Packaging Group with responsibility for Multi-Pack, Milwaukee, WI; Span Packaging Services, Greenville, SC; Automated Packaging, LLC, Winder, GA; reporting to Teague, Joe Ervin, formerly director of Operations, becomes vp/gm at Span Packaging; John Panaseny, formerly vp of Sales, Marketing, rises to vp/gm, Automated Packaging; Keith Wyatt, former director of Materials Management, Customer Service, becomes director of Sales, Span Packaging… Board of European Federation of Corrugated Board Manufacturers (FEFCO), Brussels, Belgium, elects John Williams, president; Ryzsard Kolodziejski, vp/treasurer; Williams also serves as president, SCA Packaging Europe, Diegem, Belgium, while Kolodziejski hails from EUROBOX Polska Sp. z o.o., Ujazd, Poland…

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ShortRuns: Ball… Smurfit-Stone… Graphic Packaging…

Ball Corp., Broomfield, CO, plans to close polypropylene bottle manufacturing plant in Brampton, ON, Canada, by end of 3Q08, consolidate operations in other facilities; company, which acquired facility from Alcan Packaging, Paris, France, in 2006, estimates closure costs at $5 million, but expects to save $4 million/year starting in 2009; closure affects 90 employees… Smurfit-Stone Container Corp., Creve Coeur, MO/Chicago, IL, plans to shut down 135,000-ton/year containerboard medium machine at mill in Snowflake, AZ, by 15 October 2008; unit ranks as company’s highest cost containerboard machine… Rising costs for fiber, energy, chemicals prompt Graphic Packaging International Inc., Marietta, GA, to suspend production on 100,000-ton/year coated unbleached kraft (CUK) machine at facility in West Monroe, LA; CUK from #2 paper machine goes primarily into beverage cartons; company also plans to increase prices, renegotiate freight, delivery charges…

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Upstream: PAC… Pharma Security…

Packaging, supply chain, security experts discuss counterfeit prevention at Securing the Pharma Supply Chain conference, 1-2 July 2008, Hilton Amsterdam, Amsterdam, The Netherlands; other topics on tap at event hosted by SPG Media, London, UK; BPCouncil, Geneva, Switzerland; include smart packaging for brand protection, radio frequency identification versus two-dimensional bar coding, regulations, intellectual property protection… Packaging Association of Canada (PAC, labraham@pac.ca), Toronto, ON, Canada, calls for early bird registration by 11 July 2008 for PAC National Conference 2008, 12-13 September 2008 at Fairmont Le Chateau Frontenac, Quebec City, QE, Canada; theme of “Green Packaging Today for Tomorrow” kicks off with keynote address by Anne Johnson, director, Sustainable Packaging Coalition, Charlottesville, VA, includes speakers Jean Leclerc, ceo, Leclerc Biscuits Ltd., St-Augustin-de-Desmaures, QE; Matt Croson, vp, Member Services and Communications, Packaging Machinery Manufacturers Institute, Arlington, VA…

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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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