OBSERVATION & COMMENTARY: Two US water marketers opt for PLA bottles; Moves follow bankruptcy of concept pioneer

Primo Water Corp., Winston-Salem, NC, is redesigning its 16.9-ounce polylactide (PLA) water bottle to improve its ergonomics and reduce material use and Earthpure Organics, Boise, ID, is rolling out a same size PLA bottle to be distributed nationally in vending machines by its sister company, Nextgen Vending.

The moves are seen as environmental plays that might offset some of the current environmental criticism of bottled water.

Primo’s bottle redesign comes just three months after the firm debuted a straight walled, petaloid-based PLA bottle similar to one chosen in 2004 by now bankrupt Biota Spring Water, the company that first introduced PLA bottles in the US. Coincidentally, Biota’s defunct Ouray, CO bottling ops were auctioned off last Thursday to Mountain Pure Water, Little Rock, AR for $2,350,000.

Primo’s new sculpted bottle consists of corn-based Ingeo PLA from NatureWorks, LLC, Minnetonka, MN. “We listened to consumer feedback about our test bottle and redesigned the shape to give shoppers the look and feel they want in a sleek, ergonomic package that fits their busy lifestyles,” says Billy Prim, chairman/ceo of Primo Water Corp., Winston-Salem, NC.

“We reduced our package weight, cap size and label, all in response to consumer demand to keep our packaging as environmentally friendly as possible,” says Prim, though he declines to say how much material/weight savings the new bottle saves.

Earthpure Organics is launching a line of renewable, biodegradable PLA water bottles called Eco-Water bottles. The new 16.9 ounce bottles will be distributed nationally by Nextgen Vending. The Eco-Water bottles are produced from PLA that is “fully offset with EPA/ BEF (Bonneville Environmental Foundation) wind power “Green Tags,” according to the company, which promotes the bottle as “fully biodegradable, recyclable, and fully carbon offset.”

“We are extremely proud to be the first vending operator in the United States to offer a socially responsible choice for water bottles” says Paul Frantellizzi, managing partner of Earthpure Organics. “This corn-based PLA bio-bottle with the addition of a 100% carbon offset commitment, is a compelling first step toward resolving growing concerns about petroleum based bottles overwhelming our landfills”.

Compostable, wood pulp based film bags hold dog treats

Compostable NatureFlex™ film from Innovia Films Ltd., Wigton, UK, protects organic treats from Barkwheats Dog Biscuits, Stockton Springs, ME. Film based on renewable resource – wood pulp – quickly breaks down under home or industrial composting conditions, meets European EN13432, American ASTM D6400 standards for compostable packaging. Cellulose-based film relies on wood-pulp sourced from managed plantations, certified suppliers, also offers functional characteristics such as inherent deadfold, antistatic properties, high gloss/transparency, resistance to grease/oil, good barrier to gases/aromas, wide heat seal range. “I needed a bag to package my dog biscuits that offered great heat sealing capabilities, was inexpensive, and compostable,” recalls Chris Roberts, Barkwheats founder. “Not an easy thing to accomplish…,” he adds, noting, “The fact that NatureFlex carries a compostability certification is an enormous advantage. Our company was founded on principles of sustainability and environmental stewardship. Innovia has helped us attain all of our goals and keep it within a price point that is easily accessible to any business, large or small.” Dog biscuits come in two flavors, Sea Veg & Chamomile, Ginger & Parsley flavor, rely on Maine-sourced human-grade ingredients. Follow-up: Malcolm Cohn, market manager-Americas, +1 770-818 3008, malcolm.cohn@innoviafilms.com; Link: www.innoviafilms.com.

Higher costs mean more price increases

Converters raise prices of fiber-based packaging as well as ink, lay blame on higher costs for energy, fiber, chemicals, transportation.

Caraustar Industries, Inc., Atlanta, GA, plans to increase prices 6% on all paperboard-based converted products effective with shipments 11 August 2008.

Europe-based Iggesund Paperboard, Iggesund, Sweden, adds €100/ton to prices for its Invercote® solid bleached board, Incada® folding box board effective 1 September 2008. For Incada folding box board, latest increase is on top of 8% price hike, which took effective 15 May 2008.

Graphic Packaging International, Inc., Marietta, GA, boosts prices $50/ton for both coated, uncoated recycled board effective 28 July 2008 on shipments supplied by mills in Pekin, IL; Middletown, OH; Kalamazoo, MI; Battle Creek, MI; Philadelphia, PA; Wabash, IN; Santa Clara, CA. Company also plans to set new freight allowances.

On ink side of business, Fujifilm Sericol, Kansas City, KS, raises prices up to 15% on ultraviolet, water-, solvent-based inks used in inkjet, screen, narrow web printing as well as on wide format presses. “Most of our raw materials are petroleum-based, and the price of a barrel of crude oil has risen from $53.39 to $140.21 since our last price increase in November of 2005,” explains Mitch Bode, svp of Fujifilm Sericol Americas. “Up until now, productivity improvements in manufacturing and optimization of freight efficiencies have helped offset some of the raw material and transportation cost increases. However, the size of these increases and the breadth of materials impacted can no longer be absorbed or offset by manufacturing or supply chain efficiencies.”

Multivac launches trade-in program for new machinery buyers

To help end-users upgrade to new generation thermoform-fill-seal machine, Multivac, Inc., Kansas City, MO, pledges to buy back any of its older units regardless of age, condition. Firm’s Jan Erik Kuhlmann, president/ceo, says of the machines’ iconic Maytag-like reputation, “With routine maintenance, a Multivac will serve a business reliably for decades.” However, he says, with advanced sanitary design, ergonomic features, latest machines such as models R 125, R145, R 245, R 535, are “engineered for superior performance across a range of functions vital to all manufacturers of perishable goods. Our trade-in program makes it easy…[to upgrade] to the most advanced and reliable packaging technology available.” Follow-up: Sales Department, +1 800 800-8552, muinc@multivac.com; Link: www.multivac.com.

Specialty chemicals industry consolidates

With two major deals pending, specialty chemicals business, which supplies additives, coatings, adhesives for packaging, experiences big changes. In first deal, Dow Chemical Co., Midland, MI; acquires Rohm and Haas, Philadelphia, PA, for $78/share in cash, or roughly $19 billion. Plans call for Dow to shift some of its specialty chemicals business to Rohm and Haas and for it to retain its name as well as its Philadelphia headquarters. As part of Dow, Rohm and Haas also becomes more vertically integrated. In second deal, Ashland Inc., Covington, KY, expands its capabilities in packaging coatings, adhesives, with acquisition of Hercules Inc., Wilmington, DE. Ashland plans to pay $3.3 billion in cash, stock, assume $0.7 billion in debt. Hercules brings expertise in aqueous formulations, as well as products used in pulp, papermaking. After closing, which is expected by end of 2008, combined company anticipates $10 billion in annual revenue. “The acquisition of Hercules…creates a defined core for Ashland composed of three specialty chemical businesses with strong market positions and promising global growth potential: specialty additives and ingredients, paper and water technologies, and specialty resins,” says James J. O’Brien, Ashland chairman/ceo. “In addition,” he notes, “we expect our financial profile to be enhanced significantly through reduced earnings volatility, improved profitability and stronger cash flow generation.” Ashland plans to maintain significant presence in Wilmington. Closings depend on approval of Hercules’, Rohm and Haas’ shareholders, regulatory approvals. Follow-up: Link: www.rohmhaas.com; www.ashland.com.

Consumers want more information on food labels

Two out of five consumers say food labels don’t provide enough information about food they eat. Survey by Deloitte LLP, Stamford, CT, shows 73% want country of origin information so much they would be willing to pay slightly more for products so labeled. Respondents also express concern about healthiness of ingredients, 61%; use of chemical ingredients that are detrimental to health, 49%; safety of ingredients, 49%. In addition, more than three-fourths (79%) want meat from cloned animals labeled as such, 50% want to ban sale entirely. “Although consumers enjoy more access to food information than ever, “…it’s clear that what they are getting is not enough,” says Pat Conroy, vice chairman, US Consumer Products Group Leader at Deloitte. “Consumers are spending more time checking labels and are often overwhelmed by a flood of contradictory nutrition ‘facts,’” he notes. “They seek clear, straightforward information they can understand so they can make more informed choices and better protect themselves and their families.” Follow-up: Link: www.deloitte.com/us/about.

Wide-mouth PET jars handle hot-filled products

Line of wide-mouth polyethylene terephthalate (PET) jars for hot-filled foods combine monolayer construction, high-barrier protection, crystal clarity. Designed by Constar International, Philadelphia, PA, for processed foods like pasta sauces, salsas, jellies/jams, containers incorporate DiamondClear oxygen scavenger/PET blend to protect product freshness, flavor, color along with panel-free Vertical Compensation Technology, which allows container to withstand filling temperatures up to 200 F as well as pressure generated by vacuum that occurs as contents cool. “Vertical Compensation Technology gives our wide-mouth food jars a rigid feel that equates to strength in the hands of consumers,” explains Alex Fioravanti, marketing director. “It’s a lightweight plastic jar that won’t break if dropped, an added value for consumers. In production, our VCT jars are easier to label compared to plastic jars that use side grips for vacuum compensation.” Stock range features traditional shapes. However, Constar also offers custom designs. Containers represent significant source reduction compared to comparable glass jars. Follow-up: Alex Fioravanti, +1 215-552-3737; Link: www.constar.net.

Air cushioning contains up to 40% recycled content

Astro-Bubble® Green air-filled cushioning from Pregis Corp., Deerfield, IL, consists of up to 40% recycled content with minimum of 30%. Bubble cushioning material contains up to 20% post-consumer recycled content, up to 20% industrial scrap yet maintains properties to ensure integrity of coextruded linear-low density polyethylene (LLDPE)/nylon, monolayer LLDPE materials. Suitable for surface cover, void-fill, options include coex, monolayer LLDPE structures in standard, economy grades, choice of four bubble sizes ranging from one-eighth to one-half inch in diameter. Green dye creates transparent visual cue that product is environmentally conscious alternative. “At Pregis, we…believe that recycling post-consumer waste is a crucial step in achieving sustainability goals, and we have worked hard toward securing a supply source for this product line,” says Josephine Lee, marketing director, Pregis Protective Packaging North America. Follow-up: Sales Department, +1 866-692-6163, protectivesales@pregis.com; Link: www.pregis.com.

Graphic Packaging expands Kalamazoo mill/folding carton ops

Graphic Packaging International (GPI) Inc., Marietta, GA, plans $27-million expansion of coated-recycled paperboard mill, folding carton manufacturing facility in Kalamazoo, MI. Project receives economic development tax credits from State of Michigan, City of Kalamazoo. GPI expects to add up to 160 local jobs to 500-employee operation. Follow-up: Link: www.graphicpkg.com.

Snap-on bowl family adds 900ml size for takeout food

New 900-millilitre (ml) polypropylene (PP) bowl completes range of Snap-on Bowls for hot, cold to-go foods. Same 19-centimetre (cm) diameter domed lid, made of clear amorphous polyethylene terephthalate (APET) or transparent PP, fits 900ml size as well as 450-, 600ml bowls from Huhtamäki Oyj, Espoo, Finland. Range also includes meal-size 910ml bowl with 23cm APET lid. Especially designed for eating take-out food directly from bowl, microwave-safe, black PP bases hold hot soups, pasta, ethnic food, salads, desserts, snacks. Domed lid enables easy stacking, saves space where storage may be limited such as self-serve counters, coffee bars. Custom embossing, labeling enhance brand identity. Follow-up: Minna Laitinen, marketing, development manager, +358 10 686 7837, foodservice@huhtamaki.com; Link: www.huhtamaki.com.

EXPO PACK México shows strength of Latin American market

Roughly 32,000 make trip to Mexico City, Mexico, to attend EXPO PACK México, 24-27 June 2008 at Centro Banamex. Total represents 5% increase in visitors, who came from 38 countries, included delegations from El Salvador, Guatemala.

“What is significant about the attendance was the number of pre-registered attendees increased by 12%, and the number of multiple-day visits increased by 20%,” reports Charles D. Yuska, president/ceo of show organizer, Packaging Machinery Manufacturers Institute (PMMI), Arlington, VA.

Show, co-located with PROCESA, draws attendees from major multinational consumer packaged goods firms to see 931 exhibitors from 25 countries including national pavilions from Argentina, Chile, China, Colombia, France, Germany, Guatemala, Spain, Taiwan, US.

Strong US presence earns PMMI an export achievement award from US Department of Commerce.

In conjunction with show, Asociación Mexicana de Envase y Embalaje, AC (AMEE, Mexican Association of Packaging), Mexico City, Mexico, organizes Mexican Packaging Week including Mexican Packaging Congress, three-day conference program, display of packaging competition entries in AMEE Innovations Pavilion. Organizers continue co-location of EXPO PACK México, PROCESA, return to Centro Banamex, 23-26 June 2009. Follow-up: At PMMI, Link: www.pmmi.org; at AMEE, Link: http://amee.org.mx.

UK flexo label printer adds facility, personnel

Flexographic label printer, Systems Labelling Ltd. (SLL), Flintshire, UK, acquires 12,000-square-foot facility in Runcorn, UK, to supplement capacity to meet increasing demand.

After minor construction to prepare for installation of new in-mold labeling, wraparound equipment, relocation of some staff, SLL expects dedicated facility to open by end of August 2008. It also plans to add personnel. Systems Labelling’s Steve Pickford, md, says, “The additional site…will provide the business with additional capacity, flexibility and a centre of excellence for our new label options.” Follow-up: Sales Department, +44 1244 286300, enquiries@systemslabelling.com; Link: www.systemslabelling.com.

Acquisition creates international contract packager

With acquisition of Sharp Corp., Allentown, PA, for $99 million, United Drug plc (UD), Dublin, Ireland/London, UK, creates contract packager with international presence. Deal, expected to close before 30 September 2008, combines leading independent contract packaging business in US with UD’s European contract packaging operations in UK, Belgium, Holland, which are part of its Supply Chain Services division. UD expects transaction to be immediately accretive to earnings, plans to retain all 600 employees including senior management. Sharp, which reported $99 million in revenue in 2007, provides full-service packaging solutions to pharmaceutical, generic, biotechnology, specialty pharmaceutical, nutraceutical, consumer healthcare companies. “Sharp is a quality and compliance leader in pharmaceutical contract packaging in the United States and will fit extremely well with our existing packaging operations that provide services to the same client base in most major markets in Europe,” says Liam FitzGerald, UD chief executive. “The acquisition will also provide a major platform for our on-going development as an international healthcare services company.” UD operates three other divisions, Pharma Wholesale, Medical & Scientific, Contract Sales & Marketing Services. Follow-up: At UD, Supply Chain Services, +353 1 463 2300; info@united-drug.com; Link: www.united-drug.ie; at Sharp, Bill Walker, +1 610-279-3550, bill.walker@sharpcorporation.com; Link: www.sharpcorporation.com.

Demand for self-adhesive labels jumps in EU

Self-adhesive label market in central, eastern Europe grows more than 20% annually, more than twice as fast as 8% registered by label market as whole. Comprehensive update of multi-client report published in 2001, Self-Adhesive Label Market in Central/Eastern Europe, reflects impact of 2004 enlargement of European Union (EU) by 10 countries, including eight in central, eastern Europe (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia). Enlarged EU brings strong, sustainable growth to European label market, with opportunities for packaging converters, label converters, raw materials suppliers, packaging/label equipment suppliers, brand owners. Report from Research and Markets, Dublin, Ireland, describes impact of changes in retailing, distribution logistics, supply chains; addresses geographical scope of label market, self-adhesive label applications, types, technologies, end-user markets, sells for €3,250 (US$5,180). Follow-up: Laura Wood, senior manager, press@researchandmarkets.com; Link: www.researchandmarkets.com/research/42060e/the_selfadhesive.

Luxury brands, new flavored products spur liquor sales

Distilled spirits consumption grows for 10th consecutive year, rises 2.8% in 2007 to 181.7 million 9-litre cases. With upscale brands, especially imports, new flavored products generating sales, 2008 Liquor Handbook, published by Beverage Information Group, Norwalk, CT, forecasts continuing growth of 1.6% in total distilled spirits consumption to 184.5 million cases. Popularity of premium products bodes well for glass containers, upscale closures, labels, cartons. Study presents consumption information by category, market; tracks leading brands; reports historical data; makes projections. “Despite economic pressures and declining consumer confidence, the trend toward spirits as an ‘affordable luxury’ doesn’t show any signs of slowing, and a large number of product introductions continue to arrive at the higher price tiers,” says Eric Schmidt, manager of Information Services for Beverage Information Group. Handbook costs $795, $965 with companion CD, plus shipping/handling. Follow-up: Cynthia Porter, +1 630-762-8709, cporter@m2media360.com; Link: www.beveragehandbooks.com.

ShortRuns: Heinz/Graham… Key Technology… OnSpeX…

HJ Heinz Co., Pittsburgh, PA, honors Graham Packaging Co., LP, York, PA, as packaging Supplier of the Year for third straight year; Graham supplies all of polyethylene terephthalate containers Heinz uses, manufactures multilayer, recycled-content containers for ketchup at plant in Fremont, OH, within 5 miles of Heinz’s principal ketchup manufacturing facility; recently developed inverted 20-ounce bottle for foodservice market with patented design, non-removable closure … Key Technology, Inc., Walla Walla, WA, lands on list of America’s 100 Fastest Growing Small Public Companies, published in July/August 2008 issue of Fortune Small Business, New York, NY, ranks 96 among public companies with revenue under $200.0 million, stock price greater than $1; performance during past two years helps assure position with 33.9% growth in revenue to $107.5 million for fiscal 2007 from $80.3 million in fiscal 2005, 163.5% jump in earnings/fully diluted share to $1.37 in fiscal 2007 from $0.52 in fiscal 2005… CSA Group’s OnSpeX division, Cleveland, OH, conducts packaging performance testing, analyzes materials/physical properties at new 25,000-square-foot testing facility, which holds certification from International Safe Transit Association, East Lansing, MI… Yeast contamination, most likely originating in one lot of high-density polyethylene bottles, prompts Roxane Laboratories, Inc., Columbus, OH, to recall two lots of drug used to treat elevated blood levels of potassium (Lots 856396A Exp April 2010, 856693A Exp May 2010 of unit-dose Sodium Polystyrene Sulfonate Suspension, USP, 15 g/60 mL) due to risk of immunocompromised patients developing yeast infections… Upgraded Invercote G, Creato, Duo paperboards from Iggesund Paperboard AB, Iggesund, Sweden, hit market with improved printing/mechanical properties, higher purity, brighter white color with completion of €74.0 (US$117.1) million rebuild of No. 2 board machine…

Changeover: ISTA… ELAU… RockTenn…

International Safe Transit Association (ISTA), East Lansing, MI, adds Paul Koning as associate executive director-Development; Koning brings 27 years’ experience in transport packaging, most recently as senior manager, Packaging Engineering at Cisco Systems, San Jose, CA; background also includes service as ISTA board member from 1999-2004, vp-Education, 1999-2001… Norbert Gauß succeeds Dr. Thomas Cord as ceo of ELAU AG, Markheidenfeld, Germany; subsidiary of Schneider Electric plans to expand leadership position in motion/logic control, servo drives for packaging machines beyond Germany, Italy to US, Asia, remainder of Europe with assistance from sales, application support, service departments of Schneider Electric subsidiaries in each country; Gauß comes to ELAU from Schneider Electric Motion…At RockTenn Co., Norcross, GA, David Dreibelbis retires for health reasons from position as evp/gm after 34 years’ service; new operating leadership appointments include Mike Kiepura, evp, consumer packaging folding carton unit with 26 folding carton plants, six coated paperboard mills; Dick Steed, evp, overseeing joint ventures, four uncoated paperboard mills, two converting plants; Jim Porter, evp with responsibility for containerboard, corrugated packaging, paperboard mill, box plant system; while Steve Vorhees, evp/cfo, adds chief administrative officer responsibilities… Marc S. Pritchard, president-Strategy, Productivity and Growth at Procter & Gamble Co., Cincinnati, OH, succeeds James R. Stengel as global marketing officer on 1 August 2008 to allow smooth transition before Stengel’s retirement on 31 October 2008; Pritchard reports to Robert A. McDonald, coo…

EarningsUpdate: Crown...

Higher sales of bevcans in Europe, Asia, Middle East, food cans in Europe help boost sales 10.4% at Crown Holdings, Inc., Philadelphia, PA, where net sales hit $2.2 billion in 2Q08 versus $2.0 billion for 2Q07; net income for period rises 8.8% to $99 million from $91 million in 2Q07…

Upstream: HBA…

Technical Conference Program accompanies HBA Global Expo, 9-11 September 2008 at Jacob K. Javits Convention Center, New York, NY, includes sessions on sustainable packaging, contract packaging, shelf impact for cosmetics, fragrance, personal care, wellness products…

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