Pack it up

In light of the FDA’s CGMP legislation and improved HACCP practices, the demand for the highest quality packaging, machinery and materials has never been higher. NGF speaks with Keith Pearson for the low down.

The FDA’s CGMP legislation and HACCP practices are just two examples of increased regulations the food industry has seen recently. There are two main drivers that have led to this increased regulatory environment, which both revolve around consumer safety: “First terrorism, and second security related to counterfeit. But there are costs associated with implementing these security measures; new technology has been developed to ensure consumer safety and ensure that each article is capable of being accurately and speedily identified and traced.” But how is the industry coping with these increased regulations? According to Pearson, staff training and education is a critical area: knowing the regulations and understanding the available technical possibilities of meeting the requirements is key to being successful.

When speaking about maximizing packaging and process efficiency while adhering to cost restraints, Pearson admits that some global retailing trends do make it more difficult to maximize process/manufacturing efficiency. “Trends such as smaller pack sizes and shorter runs together with new sometimes more complicated processes do make it more difficult to reduce costs. Raw material costs by far form the largest part of the cost structure, most packaging industries have made major strides in reducing raw material costs mainly through manufacturing stronger but lighter materials. Reducing process waste is a major management emphasis. Globalization has also played a part in reducing costs, as companies are able to purchase raw materials from the best in the world.” Pearson then tells us about how the World Packaging Organization is endeavoring to assist developing countries in supplying training and technology transfer. Developing countries need major assistance in positioning themselves to enjoy the fruit of the retailing explosion as well as being able to export, he says.

You can’t pick up a paper or turn on the news without coming across news stories and features about green issues. But how important is it to incorporate an ecological approach to mass production packaging? “With the retailing explosion across the world even in developing countries the packaging industry is even more aware of their responsibility in being responsible in respect of ecological strategies,” says Pearson. He gives Wal-Mart in the US as an example: the company has committed to reduce packaging waste by five percent in three years. In addition to preventing millions of pounds of trash from reaching landfills, the initiative is expected to save 667,000 metric tons of carbon dioxide from entering the atmosphere. This is equal to taking 213,000 trucks off the road annually, and saving 323,800 tonnes of coal and 66.7 million gallons of diesel fuel from being burned.

On February 1, 2007, tools and processes will be made available to all of Wal-Mart’s global suppliers. For 12 months, these suppliers will learn and share results within this process, and beginning in 2008, Wal-Mart will measure and recognize the entire worldwide supply base for using less packaging, utilizing more effective materials in packaging, and sourcing these materials more efficiently through a packaging scorecard. Wal-Mart's packaging vision began to form when the company partnered with suppliers to improve packaging on their private label Kid Connection toy line last year. By reducing the packaging of fewer than 300 toys, Wal-Mart saved 3,425 tons of corrugated materials, 1,358 barrels of oil, 5,190 trees, 727 shipping containers and $3.5 million in transportation costs, in just one year. Now Wal-Mart is taking what it learned from Kid Connection and applying it to the more than 160,000 products that are seen globally by 176 million customers each week.

It is, according to Pearson, difficult to say how many stores are following this exact route, but most majors are thinking along these same lines. The pressure and activity related to ecological issues is increasing as people in the street and investors sense the urgency; Western Europe has taken the lead by compiling the EU packaging regulations, and Canada and the US are beginning to take notice. “There are examples of this process taking place all over,” he says. “China recognizes that it needs to be part of the process. "Packaging sustainability was one of the key topics during Packaging Summit in Chicago. WPO will be attending the conference and holding meetings.”

Bearing in mind how many multinational food manufacturers there are, how important does Pearson think is it to create a global standard to bridge the international gap in packaging regulations? “It is certainly a concern, due to the diversity of development between countries. Differing transport modes and road infrastructure play a key role in deciding what type of packaging is to be utilized. Is freezing an option, or should process foods be used? The questions of whether households have fridges is another consideration, together with selecting optimal pack sizes.”

Innovation is always key in any industry. When asked what Pearson cites as the most important innovations in packaging over the past few years, he has a few. Flexible packaging has shown major growth and the stand-up resealable pouches have offered options to end users, he says. Developments in the paper sector innovated a variety of "coatings" making paper more versatile and capable of making inroads into the plastics sector. The possibilities offered by RFID will add real value to the "path" packaging takes. Security systems that compliment high speed manufacture must be seen packaging innovation. Competition between the corrugated and carton industries in respect of using "fine flute" combined with flexo printing and laminating has offered end users cost saving and merchandising opportunities. In the flexible field, multilayered films have made innovations possible. It seems the possibilities here are endless.

Looking to the future, Pearson cites raw material pricing as a concern, “as it is influenced by what transpires in the global oil supply scenario, as well as the growth taking place in China and India. These countries are using more and more of the world’s raw materials, and this will impact on pricing. ‘Chindia’ (China & India) are developing their global manufacturing capabilities and are capable of being the lowest cost producer. Other countries will have to be low-cost producers of world-class quality products. Innovation is a key component in maintaining market share and expanding export capabilities. Forming new "alliances" could be a key strategy for the future. Environmental pressures will increase and packaging companies and industries will continue to work hard on being and seen to be responsible. Their needs to be a united effort by all involved in the supply chain to bear the costs and work together.”

With the expansion in retailing around the world, the future of the packaging industry is looking good from a volume point of view. But the industry needs to learn how to reward investors with returns that reflect something of the success of the end users and retailers.

“The World Packaging Organization endeavors to support sustainability in the area of training and development,” says Pearson. “The organization’s mission is: Better quality of life through better packaging to more people, as well as developing the art and science of packaging is a key emphasis.” With this in mind, the future of packaging certainly looks bright.

ABOUT THE WORLD PACKAGING ORGANISATION (WPO)
The World Packaging Organisation is a not for profit, non-governmental, international federation of national packaging institutes, regional packaging federations and other interested parties including individuals, corporations and trade associations.

Founded September 6, 1968 in Tokyo by visionary leaders from the global packaging community, the purposes of the organisation include t

• Encourage the development of packaging technology, science, access and engineering;
• Contribute to the development of international trade; and
• Stimulate education and training in packaging.

Primary activities of the organisation today are to promote education through meetings, special activities and publications, including their web site; to sponsor an international packaging design awards program; and to facilitate contact and exchange among the various national institutes of packaging.