Wednesday, June 10, 2009

Shifting to Sustainable Packaging

PMMI VP Industry Relations, Ben Miyares, kindly agreed to participate in a Q&A with packagedesign.com on sustainable packaging materials, energy-saving equipment and the upcoming PACK EXPO trade show (October 5-7; Las Vegas Convention Center).

Q: What attributes define a sustainable package?
A: Sustainability is often misunderstood and can be confusing when applied to packaging. In essence, it is having the tools in place to continue operating into the next generation. I like to use the following definition for sustainability: Resource, Conservation and Replenishment.

It is sometimes easier to think of sustainability in terms of farming and fishing. For example, salmon are at risk of being fished out in the Northwest, so the government has imposed a moratorium to give the fish time to breed and replenish themselves. The idea is that you control the eco-system so that it has time to replenish itself.

However, when you apply the concepts of sustainability – resource, conservation, and replenishment – to packaging, it becomes a different matter. Packages and systems themselves do not have a regenerative capability. And the term “sustainable” has been applied to packaging without precise definition and guidelines. It has evolved into a discussion of the environmental friendliness of packaging. That is, people equate “green packaging” with “sustainable packaging” and as a consequence, some in the packaging supply chain believe – mistakenly we feel that this will be a transient movement.

Q: Is there a governmental or industry organization that supervises or regulates sustainable packaging to assure consumers of the integrity of sustainability claims?
A: Currently, there is no official government arbiter of sustainability in the U.S. The Environmental Protection Agency (EPA) would be the default regulator of environmental issues. The Federal Trade Commission (FTC) monitors market claims, including sustainability claims. If you say a product is made of recycled content, the FTC takes the position that it must be made of 100% recycled content. If it is anything less than that, you better spell out the percent.

In Europe, there is a clearer definition of what they consider sustainable packaging. They equate “sustainability” with “environmentalism,” so certain materials are perceived to be better than others because they are intrinsically less harmful to the environment in the minds of those who issue the guidelines.

Q: If there are no regulatory institutions overseeing these procedures, what’s to prevent manufacturers from abusing the term “sustainable” for marketing purposes while their procedures could be far from it?
A: The introduction of the Wal-Mart scorecard at PACK EXPO in 2006 has been the greatest change agent and driver of interest in packaging sustainability. The company has become the de facto regulator or standard setter simply because of its enormous impact in the marketplace. Wal-Mart accounts for a very large percentage of Fortune 500 CPG sales and figured out how to develop a distribution system that is more efficient than its competition. The company’s goal is to reduce packaging of products sold in its stores by 5% by 2013.

With the establishment of the scorecard and its various components, Wal-Mart has been able to encourage suppliers to reduce the size of their packages. From a design standpoint, one of the early success stories that Wal-Mart points to is the introduction of Unilever’s All® Small & Mighty™ triple-concentrated detergent. The concentrate in the 32-ounce bottle cleans as many loads as 100-ounces of unconcentrated liquid detergent, but in a more compact package that's easier to pour, store and carry. The bottle also uses less plastic in its packaging, less water in its formula than regular detergent and fits into smaller cases, saving on corrugated. And, more of these smaller cases can be stacked onto a conventional pallet for improved cube efficiency throughout the distribution pipeline.

Wal-Mart instructs its category buyers to use scorecard scores as an element in purchasing decisions. Still, Wal-Mart makes it clear that the scorecard will not be used to make bad purchasing decisions. At the end of the day, that suggests that a ketchup package with a better scorecard score but lower consumer preference will probably not push off Wal-Mart’s shelves the brand/package that the market prefers, and get a high rate on the scorecard, would I replace the category leaders on the shelf? Probably not.

Q: When people think of sustainability, they often think of the material itself. How does packaging machinery contribute to the sustainability equation?
A: In the discourse about packaging sustainability, you don’t hear much about packaging machinery. And that is really a major omission. Greenhouse gas counts for 15% on the Wal-Mart scorecard and a company’s energy footprint and emissions are seen as contributing to environmental damage. The package sitting on the shelf is not emitting much GHG. It’s the MANUFACTURING process of that package and the distribution system that contributes significantly to the package’s sustainability imprint.

Sustainability is part of the DNA of packaging operations managers. Typically at inception they will over-package a product, often protecting it more than it requires. But once a product begins to succeed in the marketplace, the first initiative that the packaging department is challenged with is, “how can we reduce the weight of that package without compromising its impact on the shelf?”

That is the type of message that will resonate at PACK EXPO in October. Technology advances will vary, ranging from let’s say a machine that can bundle a 6-pack of product with a thinner film that won’t break or one that reduces the amount of material needed, to systems that demonstrate a much longer Mean Time Between Repair (MTBR) so that they don’t break down as much. These are all important messages to decision-makers because in some categories, a minute of lost production can equate to tens of thousands of dollars per line.

Q: How will the sustainability trend be reflected at PACK EXPO this year? What resources can designers, CPG’s and retailers expect to find that will help them achieve sustainability goals?
A: At PACK EXPO, attendees will find many machinery and materials exhibitors highlighting technologies that use fewer resources and some that may in fact replenish them.

Hartness International (Greenville, SC) is a good example. The company has evolved into a machinery manufacturing company from a traditional packaging manufacturer and has numerous sustainability messages, such as remote diagnostics for repair of downtime and damages. The company has determined that 90% of the problems that occur can be addressed and repaired remotely over the phone and Internet. That reduces the time, cost, fuel consumption, etc. of a repair technician being there in person. Additionally, Hartness has a dry lubrication system that uses ounces of water in the course of production instead of the thousands of gallons traditionally used to lubricate a conveyor line in a can/bottle line.

Companies exhibiting materials at PACK EXPO will have the classic sustainability stories to tell in terms of lightweighting, increased use of recycled material, reusable palletization and tertiary packaging. For example, CHEP, started in Australia after WWII, is now global and provides a much more robust wooden pallet and service program to reuse that pallet. There are alternatives, including plastic or metal pallets that because of the nature of their composition can make a lot more trips. The initial cost may be higher, so on the surface, one may not want to invest more for these materials. However, if that metal pallet will make a lot more trips, you get into a concept that is sustainable without ever mentioning the environment, and that is considering the total cost of ownership of a technology.

Q: What are some of the newest packaging materials that you’ve seen and are excited about?
A: There are four core materials used in packaging – paper, metal, glass and plastic – where advances continue to be made.

In the plastics area, we have seen the emergence of biopolymers, or plastics derived from plants vs. geologically derived plastics. They have created a lot of buzz but are not quite ready for prime time. The principle biopolymer material that is currently being used in packaging is a PLA formulated by NatureWorks. It is derived from corn right now, although the company is talking about going from the corn we eat to “cellulosics,” the leaves and stalks of the plant.

The Dow Chemical Company also makes a monopolymer polyethylene and copolymer of polyethylene, used for milk bottles and laundry detergent respectively, from sugar that chemically functions as an equivalent to traditional petrochemical derived polyethylene. So they break down sugar to its chemical component and from there build a polyethylene that is chemical and functional equivalent of petrochemically derived polyethylene, virtually the same. From there we would potentially have a source of renewable plastic, which is really exciting.

I recently saw a thermoformable structure that looks like plastic but is made of “stone” where they take geologically derived components and press them in a form that is usable for packaging. Additionally, Cornell University has started a company called NOVOMER that is introducing eco-plastics or eco-polymers, as opposed to biopolymers. These plastics are not derived from plants, but instead from carbon monoxide and carbon dioxide. While still in early development, this approach could help address the greenhouse gas problem and create a source of feedstock for these polymers.

In the metal area, what is “new” are ever-lighter structures and shaped cans for added shelf appeal. For example, compared with 20 years ago, aluminum beverage cans are 28% lighter, steel food cans are 33% lighter and tinplate aerosols are up to 18% lighter – without sacrificing performance. In addition, new printing technologies result in photographic quality graphics or engage the senses, such as thermo-chromic inks that change color based on temperature, or feel soft to the touch.

In glass, the typical bottle is produced by a “blow and blow” blow technology that results in an irregular wall thickness, the thinnest part being the weakest. When breakage occurs, it breaks at its thinnest part, whereas a newer technology called “press and blow” does what it suggests: presses the mold so that there is a more even wall thickness and the result is a thinner yet stronger glass bottle.

Q. Do you think consumers have been over-hyped with the sustainability message by marketers?
A: Absolutely. To date we have seen a rash of certifications, brands and logos put on packages that are pretty meaningless to consumers. Some early studies indicate that the consumer has very little understanding of sustainability. The average consumer equates sustainability to recyclability. Further, they still prefer packages that are “recyclable” to those that are recycled.

There are probably 30 or 40 “green” or “sustainable” certification brands in the marketplace today. Most are pretty meaningless to the consumer due to lack of knowledge. They pick up a package and see chasing arrows with a number in it and they say “this is recyclable.” Unfortunately the industry has not done a good enough job clarifying for consumers that the numbers “1–7” are not recyclable codes, but rather resin identifiers.


About PMMI
PMMI is a trade association with more than 550 member companies that manufacture packaging and packaging-related converting machinery, commercially-available packaging machinery components, containers and materials in the United States and Canada. PMMI’s vision is to be the leading global resource for packaging, and its mission is to improve and promote members’ abilities to succeed in a global marketplace.

PACK EXPO will be held October 5-7, 2009 at the Las Vegas Convention Center. To register for the show or obtain more information, visit www.packexpo.com or contact PMMI’s Show Department at 703.243.8555 or expo@pmmi.org
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Posted on Monday, June 8, 2009 at 10:36AM by packagedesign.com



-- CardPak Inc.

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