Packaging Management Update 08-04-08



August 4, 2008 -

Ben Miyares' Packaging Management Update®

Ben Miyares' Packaging Management Update®

A weekly summary of packaging business and technology developments


Heat-set PET bottle runs on high-speed filling line


High-speed filling line at Krier Foods, Random Lake, WI, fills Elations Joint Supplement Beverage in 8-ounce Heat-Tek polyethylene terephthalate (PET) bottle from Ball Corp., Broomfield, CO.

Although initial design was multilayer barrier bottle, testing shows all-PET bottle provides adequate protection, meets shelf life requirements for fruit-juice based dietary supplement beverage from Elations Co., Cincinnati, OH. Monolayer heat-set polyethylene terephthalate (PET) bottle with 38-millimetre closure withstands hot-fill temperatures up to 185o Fahrenheit.

Fine-tuning of label area ensures bottle handles smoothly on Krier’s high-speed filling line. “We modified our stock 8-ounce Heat-Tek bottle to meet the demands of the Krier line, which runs about four times faster than a standard filling line,” reports Mike Vaughn, vp, Packaging Innovation, Ball Packaging Products, Americas. “We were able to do this successfully for Elations on an accelerated development schedule in order to meet their product launch requirements.”

Single-serving beverage, based on technology licensed from Procter & Gamble Co., Cincinnati, OH, contains glucosamine, chondroitin, calcium for healthier joints, bones. Two flavors, Raspberry White Grape, Cranberry Apple sell in six-packs as well as singly. FFollow-up: At Ball, Jennifer Hoover, +1 303-460-5541, jhoover@ball.com; Link: www.ball.com; at Krier, Contract Packaging, +1 920-994-2469.

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FPA pegs ’07 flexible packaging sales at $25.6 billion

With compound annual growth rate of 4% since 1997, flexible packaging industry sales rise to $25.6 billion in 2007. According to 2008 State of the Industry Report published by Flexible Packaging Association, Linthicum, MD, flexibles remain the second largest US packaging sector, representing approximately 18% of industry’s $135 billion in total annual sales. Report focuses on value-added segment of flexible packaging industry, valued at $19.8 billion.

More than 85% percent of survey respondents rank raw material cost, availability as “most important” issue for 2008. Labor, competition, imports, economy/interest rates round out top five concerns. Report also discusses industry performance/structure, materials/processes, end uses, global packaging. Report includes data from members, nonmembers, Census Bureau, other federal agencies, industry analysts, investment bankers. FPA members access report via Members Only section of association website. Nonmember price is $3500. Follow-up: Bob Zaborowski, +1 410-694-0800, bzaborowski@flexpack.org; Link: www.flexpack.org.

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Biogas refinery supplies fuel for medium mill


Bio-gas refinery at semi-chemical medium mill in Filer City, MI, owned by Packaging Corp. of America (PCA), Lake Forest, IL, produces methane gas from wood fiber.

Project represents $20 million capital investment, should save $10 million/year. Savings reduce cost of producing semi-chemical medium about $25/ton. Bio-refinery utilizes bacteria to convert liquor byproduct of pulp cooking process directly to methane, which replaces coal, natural gas in existing power boiler.

Process depends on proprietary pulping/papermaking technology developed by PCA. Since pulping liquor is converted directly to methane gas, process needs no recovery boilers or high energy consuming evaporators to remove water from liquor. As result, Filer City shuts down evaporators, fluidized bed recovery boiler.

“The startup of the bio-refinery at Filer City represents not only a significant milestone for PCA, but also for the development and use of low-cost, green energy,” says Paul T. Stecko, chairman/ceo of PCA. “The economics on the project are particularly good considering that the returns are based, in part, on replacing primarily coal, a relatively low-cost fuel, with methane in our boilers.” PCA, a PMMI member, is sixth largest US producer of containerboard, corrugated packaging products with sales of $2.3 billion in 2007. Company operates four paper mills, 67 corrugated product plants in 26 states. Follow-up: Link: www.packagingcorp.com.

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EFSA affirms safety of bisphenol A

After review of latest scientific data, European Food Safety Authority (EFSA), Parma, Italy, reaffirms safety of bisphenol A (BPA) in food containers, baby bottles, water bottles. EFSA expert scientific panel concludes its previously established safe limit for BPA “provides a sufficient margin of safety for the protection of the consumer, including fetuses and newborns.” Panel, which focused on how human body handles BPA, notes people metabolize, excrete BPA far more quickly than rodents, making rodent studies of limited relevance. “The conclusions…provide strong reassurance to consumers that they are not at risk from use of consumer products made from polycarbonate…,” states Steven G. Hentges, PhD, spokesperson for Polycarbonate/BPA Global Group of American Chemistry Council, Arlington, VA. EFSA findings support conclusions of other groups, such as US Food and Drug Administration, Washington, DC; National Institute of Advanced Industrial Science and Technology, Tokyo, Japan; as well as RTI International, Research Triangle Park, NC; which conducted largest, most comprehensive study on BPA to date, recently published results in Toxicological Sciences, Oxford, UK. Follow-up: At EFSA; Link: www.efsa.europa.eu/; at RTI; Link: http://www.rti.org; at BPA Global Group; Link: www.bisphenol-a.org/.

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Publisher launches Greener Package website, competition

Summit Publishing Co., Chicago, IL, publisher of Packaging World magazine, Field Guide to Sustainable Packaging, plans 4Q08 launch of Greener Package website, awards program dedicated to sustainable packaging. Website offers interactive forum moderated by industry experts, news blog, sustainable packaging awards database, continuously updated Greener Package Source Book. Summit also plans to issue annual print edition of Greener Package Source Book. Follow-up: Link: www.greenerpackage.com/.

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ON THE DRAWING BOARD: USDA scientists research pathogen controls for produce

Under investigation – (1) unchambered air plasma treatment: Scientists at Agricultural Research Service (ARS) of US Department of Agriculture, Washington, DC, devote considerable resources to pathogen control on fresh produce. Work takes on increasing urgency as consumers struggle to cope with latest major outbreak of foodborne illness, now associated with Salmonella-contaminated peppers from Mexico, but initially linked to tomatoes.

USDA studies cold plasma treatment that relies on cold plasma generated by electricity that disrupts gas atoms to release free electrons.

Although previously used for food safety with exotic gases like helium or argon, ARS method relies on air, offering potential for increased efficiency, lower costs. Since air doesn’t need closed chamber for plasma production, treatment could occur continuously on moving conveyor.

In lab-scale tests with Golden Delicious apples, plasma exposure reduced pathogen numbers without harming fruit.

(2) Natural bacteriacidic food-grade film additive: In follow-up to research done in 2002 that identified bactericidal properties of numerous herbs, spices, ARS scientists evaluate most powerful performers like carvacrol, the predominant essential oil in oregano, for use as ingredients in edible films. According to report in July 2008 issue of ARS’ Agricultural Research Magazine, one study focuses on whether adding small squares of carvacrol-enhanced spinach purée film to bags of chilled, ready-to-eat spinach leaves would help protect this salad green against E. coli.

(3) Bacteriophages: Other weapons against pathogens include bacteriophages, purified viral agents that eat bacteria like E. coli, but have no effect on humans or animals. Tests on fresh-cut cantaloupe, lettuce show bacteriophage treatment results in 100-fold reduction in pathogen population. Similar strategy to protect fresh produce like salad greens calls on benign microbe, Enterobacter asburiae, commonly found on beans, cucumbers, known to interfere with growth of E. coli. Follow-up: Link: www.ars.usda.gov/is/AR/archive/jul08/.

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Kids mistake air freshener for candy

Buffalo (NY) News reports three children were treated, released by Women and Children’s Hospital in Buffalo after eating Fruit Bomb, a novelty air freshener they thought was candy. Brightly colored graphics with cartoon characters, fruit fool kids, who range in age from eight to 11. Three-side-sealed pouch apparently contains liquid, dry ingredients that when mixed together build pressure so pouch bursts, releases fragrance. Back panel contains directions for use, two warnings, “Eating Prohibited,” “Please Do Not Put in Mouth.” Package notes product is made in Taiwan, but does identify manufacturer.

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PACK EXPO preview: Integrated line supports e-pedigree

Integrated packaging line from NJM/CLI, Lebanon, NH, supports electronic pedigree serialization, track/trace initiatives for pharmaceuticals, reduces chances of counterfeiting, helps assure patient safety, improve inventory management.

Turnkey line affixes serialized, two-dimensional (2D) bar codes or radio frequency identification (RFID) labels on bottles, bundles, cases, pallets, captures serialized codes, makes data available to e-pedigree software via Ethernet connection. As line integrator, NJM/CLI combines its own labelers with field-proven, best-in-class technologies from other firms. Turnkey line begins with NJM/CLI’s servo-driven Model 130 Bronco pressure-sensitive labeler, followed by vision system from Optel Vision, Quebec City, QC, Canada, to capture, control item-level serialized codes. Separating wheel, reject shelf automatically ejects defects. Next step, SL-18 Shrink Bundler from Omega Design Corp., Exton, PA, is followed by NJM/CLI’s Model 400 Print & Apply labeler with optional RFID printer from Zebra Technologies International, LLC, Vernon Hills, IL, second Optel vision system. After collection tray, Belcor 507 Case Erector, Belcor 252 Case Taper from Belcor Industries, Richmond, BC, Canada, hand product off to second Model 400 Print & Apply labeler with optional Zebra RFID printer, followed by third Optel vision system. Line also includes semiautomatic case packer, palletizer.

Standard e-pedigree serialization line, scheduled to be displayed at PACK EXPO International, 9-13 November 2008 at McCormick Place, Chicago, IL, handles square bottles from 50 to 950 cubic centimetres at up to 200/minute with thermal-transfer printer producing 2D bar codes. Single-source responsibility, turnkey line integration services, full validation support from NJM/CLI simplifies design, engineering, purchasing, implementation, startup. Options include laser coder for higher line speeds, fully automated case packer, palletizer, handling for non-square bottles. Follow-up: Marla Stallmann, +1 603-448-0300, MarlaStallmann@njmcli.com; Link: www.njmcli.com.

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Global streamlining at O-I involves investment, divestiture

As result of ongoing review of global manufacturing footprint, Owens-Illinois, Inc. (O-I) expands glass plant in Auckland, NZ, shutters facility in Toronto, ON, Canada.

With investment of NZ$80.0 million (US$60.0 million) for furnace, two glass container forming machines, New Zealand expansion increases output by approximately 90,000 tons, or 2.2 million bottles/day, helps meet country’s growing demand for glass packaging. Scheduled to be completed by 1Q10, expansion adds 35 jobs. O-I plans to shift production of Toronto plant to other North American facilities before its closure on 30 September 2008. Spokesperson from O-I reports, “O-I plans to sell the plant and property.” Shutdown affects approximately 430 employees. Follow-up: www.o-i.com.

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USDA issues interim final rule for country of origin labeling

After several delays, it appears country of original labeling (COOL) will appear on store shelves beginning 30 September 2008. Food, Conservation and Energy Act of 2008 (2008 Farm Bill) makes more foods subject to COOL, adds provisions for labeling products of multiple origin, maintains 30 September 2008 deadline. To provide suppliers, retailers of newly affected products with opportunity to comment prior to issuing final rule, US Department of Agriculture, Washington, DC, publishes 200+-page interim final rule (Docket No. AMS-LS-07-0081). Products now subject to mandatory COOL include beef, pork, lamb, chicken, goat meat, perishable agricultural commodities, peanuts, macadamia nuts, pecans, ginseng produced or packaged after 30 September 2008. COOL requirements for wild, farm-raised fish, shellfish took effect in 2005. Acceptable COOL formats include legible, conspicuously placed placard, sign, label, sticker, band, twist tie or pin tag. There’s also some flexibility in how message is presented – via statement, country name or check box. Suppliers, retailers must retain COOL records for one year. Agency accepts comments on interim final rule for 60 days after its publication in Federal Register (expected on 1 August 2008). Industry associations collaborate in presenting workshops to help suppliers, retailers implement COOL. United Fresh Produce Association (UFPA), Washington, DC; joins Food Marketing Institute, Arlington, VA; American Meat Institute, Washington, DC; in scheduling workshops on 12 August 2008 in Baltimore, MD; 13 August in Chicago, IL; 14 August in San Jose, CA. UFPA also plans to update its Compliance Guide to Mandatory Country of Origin Labeling based on new regulations. Follow-up: at UFP: Andrew Marshall, +1 202-303-3407, amarshall@unitedfresh.org; Link: unitedfresh.org.

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Kraft funds recycling effort for drink pouches, cookie wrappers

Empty packages of Nabisco cookies, Balance/South Beach Living energy bars, Capri Sun/Kool Aid pouched beverages from Kraft Foods, Inc., Northfield, IL, serve as raw material for “upcycled” products from TerraCycle, Inc., Trenton, NJ.

After cleaning, TerraCycle “upcycles” pouches, wrappers into products like tote bags, backpacks, pencil cases, umbrellas, shower curtains by stitching, fusing or weaving material together. Collection effort for empty Capri Sun, Kool Aid drink pouches expands TerraCycle’s grassroots recycling program, which began in 2007 with pouches for Honest Kids organic juice drinks from Honest Tea, Bethesda, MD, a program co-sponsor.

To participate, consumers fill prepaid UPS collection bag with 100 pouches, drop-off filled bag at UPS. Kraft, Honest Tea also pay for shipping pouches, wrappers to TerraCycle. By year-end TerraCycle expects number of recycled pouches to reach 10,000,000, anticipates that total to double or even triple in 2009. This translates into approximately 92,594 pounds of drink pouches kept out of landfill in 2008. TerraCycle also runs collection programs for standard yogurt cups, 20-ounce polyethylene terephthalate bottles, wine bottle corks, which are recycled, respectively, into plant pots, plant food containers, various consumer products. Other program sponsors include Stonyfield Farm, Londonderry, NH, for yogurt cups, Clif Bar & Co., Berkeley, CA, for energy bar wrappers. Follow-up: Marketing Department, +1 609-393-4252; Link: www.terracycle.net.

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S & P study: Converters’ cost pressures continuing

Packaging converters face raw material cost pressure at least through end of 2008, according to Standard & Poor’s “Industry Report Card: Global Packaging Companies Struggle With Raw Material Pressures.” S&P predicts especially tough time for companies that sell primarily in US where demand for rigid, flexible packaging for dairy, beverages, foods is softening as consumers reduce spending to offset high gas prices, rising food prices. More globally diversified converters, especially in metal, glass packaging, benefit from growing demand in eastern Europe, Asia, Latin America. “The biggest challenge facing plastic packaging companies is the unprecedented increase in raw material prices, namely polyethylene and polystyrene,” says S&P’s credit analyst Liley Mehta. “We expect these price hikes to hurt earnings and working capital for most companies in the second half of 2008,” she concludes.

Standard & Poor’s economists anticipate mild recession to start before end of 2008, continue into 2009 with improvement by late 2009, through 2010. Follow-up: Research, +1 212-438-9823, research_request@standardandpoors.com; Link: www.standardandpoors.com.

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Application technology optimizes adhesive usage, cuts costs

EcoPattern™ technology for PatternJet hot-melt labeling systems from Nordson Corp., Duluth, GA, applies tiny spirals of adhesive to reduce consumption up to 90%. Accurate application of adhesive at any speed improves process control, production efficiency, while significantly reducing maintenance costs, scrap rates. System eliminates adhesive circulation, provides superior insulation, resulting in more than 50% energy savings vs. typical wheel-pot labeling system. “By substantially decreasing the amount of adhesive required, the EcoPattern technology allows manufacturers to both meet their efficiency targets and respond effectively to the growing demand for environmentally friendly packaging,” says Olivier Huss, labeling industry sales manager. Easy-to-change replacement components allow for greater application, system compatibility, while PatternJet’s integrated, closed-system design reduces maintenance, minimizes line stoppages, improves safety. Follow-up: Sales Department, +1 800-683-2314; Link: www.nordson.com.

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Group works to counter bag bans, misinformation

Coalition of businesses, citizens forms SaveThePlasticBag.com, Tiburon, CA, to mount legal challenge to bag bans like those recently enacted by Los Angeles, Manhattan Beach, CA. Los Angeles wants to eliminate 2.3 billion non-biodegradable plastic bags distributed there each year. Ban takes effect 1 July 2010, calls for shoppers to provide own bags or purchase biodegradable bags for $0.25 each. However, coalition points out, plastic carrier bags frequently are reused, if landfilled, paper bags generate methane, a greenhouse gas. Coalition, which was formed in June 2008, also works to discourage bag taxes like one passed by California House, being considered by California Senate. As written, AB 2058 requires supermarkets to recycled or reduce number of bags given to customers by 70% by July 2011. If goal isn’t met, retailer must cease giving shoppers bags or charge $0.25/bag. Current California law, AB 2449, requires retail stores to install plastic bag recycling bins, prohibits any ordinance requiring consumers to pay fee for plastic bags. Coalition notes 85% of plastic carry bags used in US are made in US in industry that accounts for about 4,000 jobs, while most reusable bags are imported. Follow-up: Link: www.savetheplasticbag.com/.

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UK supermarket waste reduction effort halts packaging growth

Packaging growth flattens, despite 1.8% sales increase as result of efforts by UK supermarkets, brand owners to cut food, packaging waste. Signatories to Courtauld Commitment to reduce household packaging/food waste achieve 2008 goal, according to statistics from Waste & Resources Action Programme (WRAP), Banbury, UK. As next step, WRAP, Department for Environment, Food and Rural Affairs, London, UK, plus Scottish, Welsh governments consider forging separate voluntary agreement to reduce packaging of nonfood products such as toys, electrical devices, furniture. “Packaging is the most visual, intrusive and irritating part of household rubbish,” says Environment Minister Joan Ruddock. “People say they feel it’s out of their control and that they want something done about it. WRAP, retailers and brands have made progress together and are coming up with increasingly innovative solutions, but we need to keep moving forward,” she says. “The Government will continue to support WRAP and welcomes plans to explore a move away from weight to carbon dioxide as a better measure of the environmental cost of food waste and packaging,” she concludes. Follow-up: Link: www.wrap.org.uk.

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Ball licenses oxygen scavenger technology for PET

Ball Corp., Broomfield, licenses oxygen scavenger technology to Koch Industries’ subsidiary Invista, Wichita, KS. Invista produces polyethylene terephthalate (PET), nylon, PolyShield® resins. PolyShield modified PET copolymers provide active oxygen barrier, carbonation retention, clarity in colored monolayer containers when blended with up to 5% MXD6 nylon just prior to injection molding of preform. Tests show containers made from PolyShield/MXD6 blends protect oxygen-sensitive foods such as beer, wine, juice. “Ball develops and utilizes a variety of barrier technologies to provide enhanced packaging solutions for food and beverage products,” says Mike Vaughn, vp, Packaging Innovation at Ball. “This agreement represents our willingness and ability to make this technology available to others.” Follow-up: Jennifer Hoover, +1 303-460-5541, jhoover@ball.com; Link: www.ball.com.

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URB plant closes while recycling center remains onstream

Although Caraustar Industries, Inc., Atlanta, GA, halts production of uncoated recycled boxboard (URB) at mill in Chattanooga, TN, facility’s recycling center continues operating. With closure of 60,000-ton capacity mill on 18 July 2008, company shifts service of regional customers to other locations. Closure affects about 67 employees. Follow-up: Link: www.caraustar.com.

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Lidstock study analyzes more than 70 end-use categories

From butter bottles to yogurt tubs, Flexible Lidstock Packaging Markets and Technologies 2008 to 2012 study examines trends, drivers, lidstock technologies. Report from Packaging Strategies, West Chester, PA, talks about lidstock market from various viewpoints such as materials, structures, printed vs. unprinted, barrier vs. non-barrier, buyers. More than 80 tables detail sales/consumption from 2002 to 2007 with projections through 2012, report total container sales, containers with lids, average lidstock area, lidstock consumption, percentage increase/decrease. Text includes extensive list of producers ranked by revenue. Hard copy or digital file costs $4,495 plus $25 shipping in US, $50 elsewhere. Follow-up: Karen Vaillancourt, national sales manager, +1 610-436-6277, orders@packstrat.com; Link: www.packstrat.com.

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EarningsUpdate: Ball… Silgan… Rexam…

Closure of plastic container plant in Brampton, ON, Canada, bevcan plant in Kent, WA, decrease earnings at Ball Corp., which fell to $100 million in 2Q08 vs. record $105.9 million in 2Q07; rising bevcan demand in Europe, Brazil, China, including 20% increase in China, help push sales to $2.08 billion in 2Q08 At Silgan Holdings Inc. higher average selling prices, favorable foreign currency translations help boost net sales 7.6% to $735.3 million in 2Q08 despite lower unit volumes in metal food, plastic container segments; net income also rises, reaching $33.3 million in 2Q08 vs. $26.8 million in 2Q07… Rexam plc sets sales record for 1H08 with 30% increase to £2,191.0 (US$4,336.4) million over same period in 2007; operating profit jumps 47% to record £217.0 (US$429.5) million…

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ShortRuns: PCA… DuPont… ColepCCL/Czewo…

Explosion in recycled fiber storage tank, which was undergoing maintenance, kills three employees, injures another at Packaging Corp. of America (PCA) paper mill in Tomahawk, WI… DuPont Liqui-Box Corp., subsidiary of DuPont, increases US prices 10%-25% for all premade dairy, beverage, bulk food bags, effective 1 August 2008; hike follows 5% increase for premade dairy bags, which took effect 1 March 2008… Major European supplier of aerosol products, cans, ColepCCL SA, Vale de Cambra, Portugal, purchases Czewo Full Filling Service GmbH, Neutraubling, Germany…

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Changeover: Multivac…

At Multivac Inc., Kansas City, MO, Dan Mack assumes newly created position of product manager, FormShrink and vacuum skin packaging systems, from previous slot as market development manager for broad-based range of packaging solutions; Mack continues to report to Bob Koch, director of sales, food division…

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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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