Food & Beverage Packaging June - July 2011

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People love glass, and for good reason. Chefs know it protects flavor and freshness. Moms know glass is healthy, safe food packaging. Environmentalists know it’s 100% recyclable, forever. And CEOs know glass says quality. Honest, pure, iconic glass. What’s not to love? GlassIsLife.com

© Owens-Illinois, Inc.

Chef Geir Skeie, Bocuse d’Or World Champion

John McLean, CEO of Bundaberg Brewed Drinks

Céline Cousteau, Ocean Advocate, Environmentalist

makers of beautiful, pure, sustainable glass packaging

Edson Auricchio, CEO of OLÉ Foods

Linus, age 2

TM

Nic Lecloux, Co-Founder of true fruits

Stefano Agostini, Chairman and CEO of Sanpellegrino S.p.A.

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VOLUME 7 5 / IS SU E 5

F EATU RES

COVE R S TORY

24 Machinery communications technologies open the door to enhanced productivity

26 The Top 50 Food Packagers: Billion dollar brands, multibillion dollar companies

Jorge Izquierdo, vice president, PMMI, explains that the options available for real-time data via machinery communications helps CPG manufacturers meet and exceed production goals.

Big companies with mega-brands stay on track through business deals, marketing moves, and packaging changes.

Hershey

Unilever PLC

tyson foods Inc.

Dole Food Co.

Foods

H.J. Heinz Co.

McCain Foods Dean Foods Co.

Hormel Foods Kellogg Co.

Kraft Foods

Perdue

Dole Food Co.

Hostess Brands Inc.

Hershey

McCormick & Co. Inc.

unilever PLC

kikkoman

Fresh Del Monte Produce Inc.

Groupe Danone

Mars Inc.

Perdue

Gruma

Dole Food Co. General Mills

Unilever PLC Chiquita Brands International

Grupo Bimbo SA

Del Monte Foods

PepsiCo Inc.

&

Maple Leaf Foods Inc.

Hostess Brands Inc.

Pilgrim's Pride Corp.

Associate

British Foods Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

Hershey

Kikkoman Associate British Foods

Fresh Del Monte Produce Inc.

Dole Food Co.

Tyson Foods Grupo Inc. Bimbo SA

Food Co.

Land O'Lakes Inc.

Inc. Gruma Maple Leaf Foods Schwan

Mars Inc.

& Gamble Co.

Procter

Del Monte Foods

Groupe Danone

Nestlé SAMarsInc. Campbell Soup Co.

Foods

Kraft Foods

Mars Inc.

Procter & Gamble Co.

Tyson Foods Inc.

Sara Lee Kellogg Co.

Dole Food Co.

Gruma ConAgra

Kellogg Co.

sara lee

Maple Leaf Foods Inc.

Chiquita Brands International

perdue

Campbell Soup Co.

Fresh Del Monte Produce Inc.

Dean Foods Co.

Maple Leaf Foods Inc.

Dean Foods Co.

McCain Foods

Dean Foods Co.

Tyson Foods Inc. Sara Lee

Nestlé SA

Groupe Danone

Ralcorp Holdings

ConAgra Foods

PepsiCo Inc.

DEPARTM ENT S

PLC

Hormel Foods

Bioplastics authority Jeff Timm shares his thoughts on the myths, realities, and opportunities in this evolving market.

Gruma

Land O' Hershey Unilever Lakes Inc.

H.J.Heinz Co. perdue Dole Food Co. General Mills

40 Bioplastics: A product evolution or market revolution?

Hostess Brands Inc.

Hershey

Fresh Del Monte Produce Inc.

Cargill Meat Solutions

An exclusive interview with packaged foods expert Diane Teer, the new president of the Food Packaging Business of MeadWestvaco Corp.

Nestlé SA

Perdue

Hormel Foods

Maple Leaf Foods Inc.

ConAgra Foods

General Mills Fresh Del Monte Produce Inc.

General Mills

38 Prepared foods trends: An insider’s view

Dole

Schwan Food Co.

Procter & Gamble Co.

Cargill Meat Solutions

Kraft Foods

Tyson Foods Inc

Perdue

Dole

J.M. Smucker Grupo Bimbo SA co.

Hershey

Kikkoman

Sara Lee

Chiquita Brands International

Mars Inc.

McCormick & Co. Inc.

Perdue

Foods Inc. Nestlé SATyson PepsiCo Inc.

Unilever Kellogg Co.

Schwan’s debuts two distinctly different packaging formats for the brand: Whole pizza in a MAP thermoform and a by-the-slice package that relies on a microwave susceptor.

Gruma

36 Freschetta reinvents frozen pizza packaging

Gruma

FOOD PACKAGERS

14 New Packages Aseptic carton bottle, color-changing ‘Military Spec’ cans, Danone’s PLA yogurt cup, Aldi’s ‘spin’ canister, foaming liqueur dispenser, Heinz’s return to glass, and a honey of a bottle

36

20 Packager News World packaging standards changing, AIM Expo joins PACK EXPO Las Vegas, Heinz ketchup pack ‘double dips’ into awards, SunnyD’s ‘green’ success, and more

28 Supplier News Graham Packaging plans merger with Reynolds Holdings, Pro Mach bought by The Jordan Company, HeatGenie cooks up deal with Crown Holdings, Winpak Portion Packaging expands, and more

IN E VERY ISSUE 8 Editor’s Note 52 Supplier Forum

57 Classified Network 62 Data Watch

40

FOOD & BEVERAGE PACKAGING Volume 75, Issue 4 (ISSN 1941-8531) is published 9 times annually, Jan/Feb, Mar, Apr, May, Jun/Jul, Aug, Sept, Oct and Nov/Dec, by BNP Media II, L.L.C., 2401 W. Big Beaver Rd., Suite 700, Troy, MI 48084-3333. Telephone: (248) 362-3700, Fax: (248) 362-0317. No charge for subscriptions to qualified individuals. Annual rate for subscriptions to nonqualified individuals in the U.S.A.: $178.00 USD. Annual rate for subscriptions to nonqualified individuals in Canada: $216.00 USD (includes GST & postage); all other countries: $228.00 (int’l mail) payable in U.S. funds. Printed in the U.S.A. Copyright 2011, by BNP Media II, L.L.C. All rights reserved. The contents of this publication may not be reproduced in whole or in part without the consent of the publisher. The publisher is not responsible for product claims and representations. Periodicals Postage Paid at Troy, MI and at additional mailing offices. POSTMASTER: Send address changes to: FOOD & BEVERAGE PACKAGING, P.O. Box 1080, Skokie, IL 60076. CANADA POST: Publications Mail Agreement #40612608. GST account: 131263923. Send returns (Canada) to Pitney Bowes, P.O.Box 25542, London, ON, N6C 6B2. CHANGE OF ADDRESS: Send old address label along with new address to FOOD & BEVERAGE PACKAGING, P.O. Box 1080, Skokie, IL 60076. FOR SINGLE COPIES OR BACK ISSUES: contact Ann Kalb at (248) 244-6499 or [email protected]

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sustainability

Scan the QR code to learn more about TricorBraun’s sustainable options.

It used to be a buzz word. Now, in many cases, it’s a requirement. And what does sustainability really mean anyway? It’s very confusing. That’s where we come in. We’re focused on what it takes to optimize every aspect of your rigid packaging. Want to reduce your carbon foot print? Start with a call to TricorBraun. It’s what we call Options Plus. The plus is our people. We’re here to help.

the power of options

1 800 325 7782 | tricorbraun.com |

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VOLUME 7 5 / IS SU E 5

YOUR ONLINE COMPANION VISIT US AT

www.foodandbeveragepackaging.com » Breaking News Updated daily news, trends and market studies about packagers and packaging.

» First Look Reveals the newest packages and products introduced into the market.

» Product Spotlights Spotlights the newest products and includes case studies.

» Supply Side Details the latest vendor-centered news such as acquisitions, expansions, and new managers.

» More Web Exclusives CONNECT WITH US NOW!

Featuring blogs and podcasts from industry experts.

» Food Packaging Insights Twice monthly newsletter delivers the latest information, news, New Packages and Top Developments in a newsy format with hot links.

dar EventsCalen urses July 25-29 of Packaging co ls ta en am nd IoPP Fu ters 3 & 4) Chicago (Semes www.iopp.org Sept. 11-14 11 Graph Expo 20 e, Chicago ac Pl k McCormic www.gasc.org Sept. 14-15 uct PABS™11Prod ty & Brand Securi on Authenticati o t, Chicag Hyatt Rosemon om .c www.awa-bv n Associates Alexander Watso Sept. 8-10 PrintFest ention Center Las Vegas Conv om www.PrintFest.c

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www.facebook.com/FBPmag

http://twitter.com/FoodPack

Sept. 20-22 MidPack Center N) Convention Minneapolis (M xpo/midpack11 shows.com/e

www.canontrade

Sept. 26-28 Vegas Pack Expo Las tion Center en nv Co Las Vegas om/pelv2011 www.packexpo.c Oct. 22-25 and National Frozen s Convention od Fo d Refrigerate nter o (FL) World Ce Marriott Orland rg www.nfraweb.o Nov. 1-4 Suppliers Food Processing ocess Expo Association’s Pr e, Chicago McCormick Plac www.fpsa.org kaging.com andbeveragepac Visit www.food ve list of events. ensi for a compreh

W W W . F O O DA N D B E V E R A G E PA C K A G I N G . C O M

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Editor’sNote

UNCOVERING PACKAGING NUGGETS ave you ever gone dumpster diving? Neither have I, though I have occasionally rummaged through garbage to look for something I’d lost, most recently a pair of glasses. Don’t ask. I first heard that term used by manager Amber Brovak of Sunny Delight Beverages Co. in a session at last year’s Pack Expo. They dump a dumpster (if that’s not already redundant) and sort through the contents to see what might be useful rather than landfilled. “We’ve taken what was waste and turned it into revenue,” Brovak noted. “Our employees are excited about our sustainability efforts.” It took just six months for all six SunnyD facilities to reach the zero waste-to-landfill goal. I did much digging in a much cleaner way for the Top 50 cover story, which comprises unique content for a packaging publication. Yes, you’ll find in this issue the usual custom blend of materials, machinery, and marketing related to packaging. However, year-end revenues figures are paramount to our annual Top X Packagers chart (page 30). In this year’s iteration, X = 50 = The Top 50 Food Packagers. Previously, X was 100. It’s not that I am an editorial miner we ran out of companies, but we had bundled food and beverage packagsifting through much before; this year we split those two material to find packaging ers segments evenly over two issues. This nuggets and present them in month we focus squarely on food: No a useful, if not insightful, way. water, no carbonated soft drinks and no tea...unless powdered. This is a considerable undertaking. Suffice to report that I’ll take PET and PP over EBITDAs and FYs any day. Doing it for the first time last year got me to do something I’d neither had the time nor inclination to do before: pore through annual reports. Companies put a lot of effort, information and expense— literal and figurative—into those. Many pretty pictures, numerous charts and lots of facts, little of which was helpful to me. But a small amount of which was absolutely invaluable. And don’t get me started on those text- and legalese-heavy 10-K reports. They remind me why I dropped accounting in college. I am an editorial miner sifting through much material to find packaging nuggets and present them in a useful, if not insightful, way. That’s a lot of what editorial is all about. I hope that’s how you see this report specifically and our content in general. I’d be pleased to hear at any time about your packaging nuggets p y if I’m using the email address below. I’ll get back to yyou p promptly not too busy prospecting. Meantime, keep on packaging. F&BP

H

EDITORIAL RICK LINGLE Editor-in-Chief [email protected] SCOTT HILLING Senior Art Director FRANK MAYERAN Art Director

ADVERTISING MIKE BARR Group Publisher (630) 499-7392 [email protected] RANDY GREEN Publisher/Midwest Sales Manager (248) 244-6498 [email protected] GEORGE MISKO East Coast/Southeast Sales Manager (610) 866-6686 [email protected] CRAIG ZEHNTNER West Coast Sales Manager (818) 403-6379 [email protected] KRISTINA LORIO Inside Sales (249) 786-1579 [email protected] ERHARDT EISENACHER International Sales +49-228-2499860 [email protected] CATHERINE WYNN Senior Classified Sales Manager (847) 405-4010 [email protected] BNP CUSTOM MEDIA GROUP Christopher Wilson (248) 244-8264 [email protected] VINCE MICONI Advertising/Production Manager [email protected] ELISABETH CUNEO Marketing Coordinator [email protected]

AUDIENCE DEVELOPMENT KOURTNEY BELL Audience Development Manager STACEY NOOCHA Multimedia Coordinator CAROLYN M. ALEXANDER Audience Audit Coordinator For subscription information or service, please contact Customer Service at: Phone: (847) 763-9534 or Fax: (847) 763-9538 E-mail: [email protected] Web: www.foodandbeveragepackaging.com

LIST RENTAL Postal contact: KEVIN COLLOPY at 800-223-2194 x.684 or [email protected] Email contact: MICHAEL COSTANTINO at 800-223-2194 x.748 or [email protected]

CORPORATE DIRECTORS TIMOTHY A. FAUSCH Publishing JOHN R. SCHREI Publishing RITA M. FOUMIA Corporate Strategy SCOTT KESLER Information Technology ARIANE CLAIRE Marketing VINCENT M. MICONI Production LISA L. PAULUS Finance MICHAEL T. POWELL Creative NIKKI SMITH Directories MARLENE J. WITTHOFT Human Resources EMILY PATTEN Conferences & Events BETH A. SUROWIEC Clear Seas Research BNP MEDIA HELPS PEOPLE SUCCEED IN BUSINESS WITH SUPERIOR INFORMATION For Volume Reprints Contact JILL L. DEVRIES Corporate Reprint Manager Phone: 248-224-1726 Fax: 248-244-3934 E-mail: [email protected] How to contact

RICK LINGLE

E d i t o r- i n - C h i e f [email protected]

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FOOD&BEVERAGEPACKAGING Mail: 155 Pfingsten Rd., Suite 205 Deerfield IL 60015 Phone: (847) 405-4000 Fax: (847) 405-4100 Web: www.foodandbeveragepackaging.com

Food and Beverage Processing. Food and Beverage Packaging. Food and Beverage Solutions. PACK EXPO Las Vegas 2011

s -OREINTEGRATEDFOODAND BEVERAGEPROCESSINGSOLUTIONS ANDTECHNOLOGIESINONEPLACE Las Vegas.

s Largest FOODANDBEVERAGE PROCESSINGEVENTTHISYEAR

sDiscover MOREPROCESSING ANDTOTALSYSTEMSSOLUTIONS THROUGHOUTTHESHOWmOOR

PACK EXPO Las Vegas – The largest food and beverage processing and packaging show in North America

s 1,600 exhibitors. s 600,000 SQUAREFEET s Comprehensive education programDEDICATED TOFOODANDBEVERAGEPROCESSINGANDPACKAGING Register Today! www.packexpo.com/processing

P R O D U C E D B Y:

September 26-28, 2011 Las Vegas Convention Center Las Vegas, Nevada USA

CO-LOCATED WITH: C

ADVERTORIAL

PACK EXPO Las Vegas 2011 (September 26-28; Las Vegas Convention Center) will be the most comprehensive resource for food processors in North America in 2011. ith more than 1,600 exhibitors, PACK EXPO Las Vegas 2011 is the only food processing show in North America where food and beverage manufacturers can discover solutions across the supply chain to address critical issues like:

W s s s s s s s

Food safety Sustainability Shelf life Freshness Lean manufacturing Machine-to-machine communication Flexibility

For food processing attendees, having both packaging and processing technologies all in one place doesn’t just make it faster and easier to find solutions for the whole manufacturing line, it broadens their sourcing horizons. Integrated Solutions An increasing number of brand owners are taking a unified approach to processing and packaging and reaping significant benefits including: s Streamlined production s Increased output s Minimization of energy consumption or waste s Improved sustainability s Enhanced efficiencies s Greater automation This total systems approach also allows processing and packaging teams to better understand what product or packaging changes can feasibly run on the line. Communication between food processing and packaging operations also helps to assure that any new machinery added to either line is equally adaptable to future changes. Having machinery that can be adjusted or replaced all at the same time helps to minimize downtime and keep the pace of production. The Processing Zone at PACK EXPO Las Vegas 2011 will address the trend of integration at a greater level. This special area of the show will highlight the latest processing technologies for a range of market sectors including food, beverage, baking and snack, meat, dairy and produce. Food processing attendees will find additional examples of these technologies throughout the exhibit halls. Added Value at PACK EXPO Las Vegas 2011 PACK EXPO Las Vegas offers more opportunities to food and beverage processing professionals than any other trade show in North America. PMMI is collaborating with several industry partners to facilitate value-added programming around PACK EXPO and add an extra layer of depth for food manufacturers. The Confectionery Pavilion Candy and snack producers will find the innovations that answer their processing and packaging challenges at The Confectionery Pavilion, sponsored by the National Confectioners Association (NCA). They

“The show allowed me to initiate some commercial relationships with suppliers I didn’t know before. PACK EXPO is definitely a ‘must-be-at’ show,” said Stephane Boubee, Global Technician Procurement Manager at Nestlé. challenges they face on the job. Attendees will have the opportunity to learn about the latest breakthroughs in food safety and gain valuable insight into potential solutions.

will find solutions dealing with greater flexibility in equipment, reductions in changeover time, new ways to maximize convenience and guarantee freshness. Industry Specific Lounges The Baking-Snack Break and The Candy Bar will offer specialized opportunities for professionals in the baking & snack industries and confectionary industry, respectively, to connect with suppliers and partners, for even faster access to the solutions they need. Each lounge will house an “Ask the Expert” forum, where attendees can receive guidance from experts on specific packaging- and processing-related challenges. Each lounge will host a special reception that offers an additional forum for attendees to network with industry peers during the show. The Baking-Snack Break is being developed by PMMI, endorsed by the Snack Food Association (SFA) and sponsored by Kliklok-Woodman. Partnership with Anuga FoodTec Anuga FoodTec, (March 27-30, 2012; Cologne, Germany) the largest food and beverage processing and packaging show in Europe, will have a presence at PACK EXPO Las Vegas 2011. Experts will be on hand to help packaging and processing suppliers seeking to expand into the European market. Food Safety Summit Resource Center Featuring leading industry and subject matter experts, the Food Safety Summit Resource Center will help manufacturers and processors respond to the many

The Conference at PACK EXPO Food and beverage processors can gain further insight into pressing industry issues by participating in the comprehensive Conference at PACK EXPO program. Following are just some of the industry groups that will contribute to the program: s Alliance for Innovation and Operational Excellence (AIOE) s Institute of Packaging Professionals (IoPP) s International Society of Beverage Technologists (ISBT) s Reusable Packaging Association (RPA) s Converting and Package Printing (CPP) In addition, former Secretary of State and retired General Colin L. Powell will be the keynote speaker at the PACK EXPO Leadership Lecture sponsored by DuPont and Morrison Container Handling Solutions. The event will take place Tuesday, Sept. 27, 2011. General Powell’s address is titled “Diplomacy: Persuasion, Trust & Values.” Tickets can be purchased at www.packexpo.com. Single tickets are available for $125 or packages of 10 tickets are available for $1,000. PACK EXPO Delivers Food manufacturers continue to rely on PACK EXPO as the only North American processing show with a proven track record for delivering innovative solutions on the show floor. s 97 percent of past PACK EXPO attendees visit the show to see both packaging and processing innovations s 93 percent of past attendees indicated that PACK EXPO clearly fulfilled the overall expectations they had for attending the show. s 42 percent of attendees at PACK EXPO are from the food industry.

Register for PACK EXPO Las Vegas now at www.packexpo.com and make sure to secure an early registration discounted ticket. We look forward to seeing you in Las Vegas!

NewPackages INNOVATIONS / TRENDS / MARKETING

E PACfKthAeG o MONTH

‹‹

First-of-its-kind package debuts for Spain’s largest dairy.

FIRST ASEPTIC CARTON BOTTLE FOR MILK n mid-May, Tetra Pak launched the Tetra Evero™ Aseptic— the world’s first aseptic carton bottle for milk. The package intended for white milk combines the easy handling and pouring of a bottle with the environmental and cost advantages of a carton. The first customer for Tetra Evero is Corporación Alimentaria Peñasanta (CAPSA), Spain’s largest dairy, which is launching with three new milk products for its Asturiana line of ambient products in a 1-L size. CAPSA president and CEO Pedro Astals says he wanted the dairy to be the first to market with the Tetra Evero since he first heard of it two years ago. “For our most strategic project, we knew we had to have Tetra Evero Aseptic,” says Astals. “This package expresses evolution, a very advanced step in comparison with today’s packages. Tetra Evero Aseptic is the perfect match of a high value-added product with a highly developed package.” Another European dairy, Weihenstephan, one of Germany’s largest traditional dairies, planned to introduce the Tetra Evero Aseptic at the end of May 2011. Production is via the Tetra Pak A6 iLine™, which has a capacity of 10,000 packs/ hour. The Tetra Pak A6 iLine will first be available in Europe and South America.

I

Tetra Pak 847-955-6000; www.tetrapak.com

Internal Flanges provide top to bottom support, greatly increasing the compression strength of the box

H-Divider offers double laminated divider for excellent strength and rigidity

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Cut corner eliminates telescoping of boxes

‹‹

SOLDIERS ON MONSTER

When chilled, thermochromic inks transition the uniform color from desert camo to arctic blue.

CANS CHANGE UNIFORMS

hromatic Technologies Inc., a specialized ink company, expands into a new market with the launch of commemorative cans of Monster Energy drinks earmarked for United States Armed Forces worldwide. As the cans are chilled to 50° F the color of the soldiers’ uniforms transition from a “desert camo” color to a cold-weather, Machinery built for quality, dependability, and durability. arctic blue color. The cans also are printSystems built for speed, consistency, and precision. ed with a tribute inscription to the brave 'XGT[VJKPIFGUKIPGFCPFOCPWHCEVWTGFVQſV men and women of the U.S. Armed Forcyour recipe, es. The “Military Spec” cans 16-oz cans your facilities, are available in the familiar green Monand your needs. ster Energy and the blue Lo-Carb Monster Energy products from Memorial Day through July 4th and sold exclusively on military bases at home and abroad.

C

Chromatic Technologies Inc. 719-592-1557; www.ctiinks.com

DANONE AND WWF LAUNCH PLA YOGURT CUP or its Activia yogurt in Germany, Danone has switched from cups made of polystyrene to polylactic acid (PLA), a polymer derived from plants. The new yogurt cup is the result of cooperation between Danone, WWF-Germany and Ingeo™ producer NatureWorks LLC. The yogurt cups involved in this first step are 115-g (4-oz) size. The change to PLA improves the product’s packaging carbon footprint by 25%. Danone notes that the change represents about 80% of the total volume of all Activia products in Germany. Moving forward, it plans to expand the use of the Ingeo-based PLA packaging to other products in the Activia line.

Topping Unit

F

Rotary Plate Filler

Piston Filler

Simplify product change-over by having mobile depositors ready to be rolled into position.

visit our website at

www.raque.com

NatureWorks LLC 952-742-0400; www.natureworksllc.com

11002 Decimal Drive P.O. Box 99594 Louisville, KY 40269 (502) 267-9641 [email protected]

‹‹

Plant-based polymer helps reduces the 4-oz cup’s carbon footprint by 25%.

Meet with us at Booth 1229.

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NewPackages

KOCH FOODS LABEL ADDS SPIN TO CANISTERS och Foods, Park Ridge, IL, has introduced a new line of frozen chicken breast chunks under Aldi’s Kirkwood brand with innovative “spinning” packaging. The new Koch Foods package, partnering with Huhtamaki, Inc. incorporates an innovative oriented polypropylene (OPP) label, supplied by MPI Label Systems, that is placed over a specially designed round-shaped paperboard Huhtamaki Ultrakan® container. The label carries product photos plus nutrition facts, bar codes and other standard required product data, along with a clear section that reveals additional information on the Huhtamaki-printed base container when consumers “spin” the outer label. The resulting combination gives Aldi approximately 75% more label surface for communicating with shoppers. The container is formed in-house by Koch Foods using a Huhtamaki Systems™ FM-1400 forming machine.

K ‹‹ Private-label brand receives an innovative twist to stand out on Aldi storeshelves.

Huhtamaki, Inc. 913-583-3025; www.us.huhtamaki.com

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MPI Label Systems 800-837-2134; www.mpilabels.com

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‹‹

ONE-TOUCH FOAMER

Personal care foaming dispenser finds a new application with liqueurs in Europe.

A FIRST IN ADULT BEVERAGES ucas Bols B.V. and Rexam Personal Care have teamed to create the world’s first and only foam liqueurs, Bols Foam. Targeted to the on- and off- premise accounts, each bottle will feature Lucas Bols liqueur branding of the Rexam M3 mini-foamer. Bols Foam is dispensed from 200mL glass bottles using the Rexam M3 mini-foamer with S 10 “engine.” Each bottle of Bols Foam creates two liters of foaming liqueur. The foam is designed to keep its form for up to 15 minutes to ensure maximum distribution and customer satisfaction. Bols Foam has been launched in European markets only, but is expected to be available in both North America and Asia.

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Rexam Personal Care 847-808-7200; www.rexam.com

HEINZ KETCHUP TEMPORARILY RETURNS TO GLASS AT RETAIL einz brings back an American icon with the launch of a new collector’s edition of Heinz Tomato Ketchup, available in classic octagonal glass bottles. While the glass bottles can still be found in thousands of restaurants across the country, they have been absent from store shelves for more than 10 years. The limited edition glass bottle of Heinz Tomato Ketchup features a vintage-inspired design to bring some nostalgia to the summer barbecue season. The 14-oz glass bottles are provided by Owens-Illinois. Limited Edition Glass Bottle Heinz Tomato Ketchup will be sold at select retailers including Walmart and Safeway for around $1.99 through August.

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Owens-Illinois 419-247-5000; www.o-i.com

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Consumer requests led to the glass bottle’s limited engagement return.

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NewPackages

HEXAGONAL SHAPE HELPS MAKEOVER HONEY BRAND honey of a bottle—that’s the buzz over the RPC Llantrisant-assisted relaunch of Rowse Honey, a leading brand in the United Kingdom. The custommolded, hexagonal-shaped bottles incorporate a honeycomb theme and provide space for improved label-

ing—all with a hand-written feel. The hexagonal recess, instead of the previous torpedo shape, is the main feature of the lightweight, PET squeeze bottles, which were designed after extensive consumer research. RPC Lantrisant changed the label panel shape, without affecting the basic shape of the bottle, the company avers. The range includes 340-g (0.75 lb) and 680-g (1.5-lb) bottles with flip-top caps and a 1.36-kg (3-lb) variant with a valve cap. The bottles are manufactured on single-stage injection, stretch-blow molding machines from Aoki Technical Laboratory, Inc. The recyclable bottles “had to be introduced smoothly onto Rowse’s filling lines, without any major disruption to production,” says RPC designer Dean Williams. “All the preform tooling used for the bottles was new and custom-made to blow the Rowse shapes.” Design changes had to be implementFor 17 years, PakTech has served all major brands and processors with ed with no impact on the squeezability the most innovative technology in the marketplace. In fact, it’s our of the packs, as the dispensing of the mission to supply clients with tomorrow’s solutions, today. From our honey was important. The clear bottles premium packaging handle appeal and comfort to our state-of-the-art produced by RPC enhance the natural application machinery, we provide turn-key systems that streamline positioning of the honey itself and add operations, and create added value. Our green advantage? Low-waste more shelf-awareness to the product. 100% recyclable packaging and clean manufacturing. It’s how we roll.

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Perception of value begins with quality. Exceptional quality and great brands go hand and hand. PakTech – providing you the ultimate packaging solution.

Aoki Technical Laboratory, Inc. 81-268-820-111; www.aokitech.jp/english RPC Llantrisant 01-443-225-520; www.rpc-llantrisant.co.uk

Handle & Applicator Solutions

‹‹ A distinctive new look using a custom-molded PET bottle creates a fresh buzz for Rowse in U.K. markets.

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n Zone Brands, Atlanta, makers of BellyWashers, TummyTickler, and TummyTickler Tots healthy and fun children’s beverages, showcased new product packaging at the recent 2011 Natural Products Expo West in Anaheim, CA. One new packaging feature is a transition of the TummyTickler brand from an 8-oz high-density polyethylene bottle to a 6-oz HDPE bottle. As recommended by the American Academy of Pediatrics (AAP), the new serving size will better address the beverage needs of preschool children, ages 3-5. Additionally, the TummyTickler bottle shape now matches that of the contoured BellyWashers and TummyTickler Tots bottles, which offers a grip shape and size optimized for children’s small hands. “It’s no secret that 100% fruit juice helps provide children with important nutrients for growth and development,” says Ayana Parsons, marketing director for TummyTickler, “but a children’s beverage solution that is encouraged as part of an overall balanced diet and delivered in a unique package format that kids love is a win-win for moms and kids.”

I

Bottle graphics of the three brands have also been revised to clearly identify and communicate brand product attributes. The sleeve designer is Goodwin Design Group. “Goodwin was instrumental in helping us refresh our packaging in a way that helps maintain our brand equity. In Zone Brand’s Traci Strom tells Food & Beverage Packaging. “They were also most helpful in assisting with a cooler, more hip look for our BellyWashers, to help attract grade schoolers.” Available nationwide, BellyWashers fruit punch is sold in eye-catching, 8-oz interactive bottles, TummyTickler apple juice is sold in 6-oz character-topped bottles, and TummyTickler Tots apple juice premixed with purified water is sold in character-topped 4-oz bottles.

‹‹

KIDS’ JUICE BOTTLES IMPROVED

Package size and design modifications for In Zone Brand bottled juices center on meeting kids’ and moms’ needs.

Goodwin Design Group www.goodwindesigngroup.com

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PackagerNews

07/11

BUSINESS / TRENDS / PEOPLE

WORLD STANDARDS ON PACKAGING AND THE ENVIRONMENT PROGRESSING he world standards on packaging and the environment have gained momentum with the acceptance of the Draft International Standard (DIS) texts. Netherlands Packaging Centre (NVC) is chairing the working group, which addresses the optimization of the packaging system upfront. Other working groups address the different modes of recycling a package may be subject to after the product has been used. ISO-delegates from all over the world and from all parts of the packaged goods supply chain came together in Atlanta from May 2nd until May 6th, to align the draft texts to input given by a multitude of stakeholders. They succeeded in creating the robust DIS texts which will be available for a final review in the coming months. The new ISO-standards will address the optimization of packaging to minimize its environmental impact, the responsible use of heavy metals and other hazardous substances, the possible reuse of packaging, and the different modes of recycling including materials, energy use, or composting.

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The world standards on packaging and environment reflect the consensus that has grown over the past two years involving intense discussion on this highly complex, but societal-relevant subject. Delegates from all continents met in a series of international meetings, in Stockholm (2009), Beijing (2010), Tokyo (2011), and now Atlanta. The new ISO-standards will be used by all companies involved in the activity of packaging – packaging designers and manufacturers, recyclers, retailers, branded good manufacturers, and manufacturers of packaging materials and inks. The new ISO world standards will most likely be available for use by industry, retail and any other interested organization by the end of 2012. The NVC has 14,000 individual members and more than 550 member companies. NVC is provides information services, education and training in serving the interests of the packaging community in promoting the understanding and use of the standards. For more information, contact the NVC-office at phone +31-(0)-182-51-2411, by email at info@nvc. nl or visit www.nvc.nl.

AIM EXPO JOINS PACK EXPO IN LAS VEGAS MMI, the producer of the PACK EXPO family of trade shows, has signed an agreement with the Association for Automatic Identification and Mobility (AIM) to co-locate AIM Expo 2011 with North America’s biggest packaging and processing event, PACK EXPO Las Vegas 2011 running September 26-28. “We look forward to working with AIM this year,” says Jim Pittas, vice president of Trade Shows, PMMI. “For many of our members, attendees and exhibitors, this co-location will add even more value to an already great event.” The AIM Expo conference program will include tracks on government, healthcare, manufacturing, mobile workforce and retail. “Auto ID in Packaging” and “Internet of Things,” two new sessions, will identify state-of-the-art applications and solutions to improve operations, streamline production, reduce costs and enhance overall business processes. “We are excited to partner with PMMI to provide this opportunity to continue and expand the association’s educational

P

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mission. The type of solutions-driven education we provide as an industry trade association enables us to deliver a solid, unbiased program that cuts across industry and technology boundaries,” says Chuck Evanhoe, AIM Expo Chairman. “The event will address the need for ongoing education about the use of bar codes, RFID, and mobile computing technologies. The AIM Expo conference will complement the existing Conference at PACK EXPO program, which provides valuable insight into the trends affecting modern packaging and processing operations. PMMI has partnered with the Reusable Packaging Association (RPA), the Institute of Packaging Professionals (IoPP), the international Society of Beverage Technologists (ISBT), and PMMI’s own Alliance for Innovation and Operational Excellence (AIOE) to deliver educational opportunities at PACK EXPO. For more information, visit www.packexpo.com. You can learn more about the AIM Expo at www.AIM-Expo.com.

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AN AIRTIGHT ALLIANCE NEVER LOOKED SO SWEET. While most people associate success with outsidethe-box-thinking, we at Danafilms believe our best achievements include the partnerships we built inside the box. Such is the case with AirLiner, an inflatable, insulating plastic liner featuring leading-edge package design by Coldpack, and a precision-engineered film by Danafilms. Like the trademark hard candy shell

shipped in the box, the film in the AirLiner uses a unique combination of innovations—including a custom film blend, exceptional seal properties, and precision extrusion and barrier technology—to provide maximum protection to the candies. Premium film designed to perform, mixed with the collaboration of leading-edge companies is a recipe for true competitive advantage.

A MEMBER OF RKW-GROUP

Look to danafilms.com or call our film experts at 800.634.8289 ISO 9001 Certified

PackagerNews

HEINZ DIP & SQUEEZE® KETCHUP DOUBLE DIPS INTO INDUSTRY AWARDS H ‹‹

Revolutionary little foodservice pack draws major recognition in NRA Product Innovation Awards and DuPont Awards for Packaging Innovation.

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einz® Dip & Squeeze® Ketchup from H.J. Heinz Co. Pittsburgh, has been honored with two leading industry awards for innovation. The packaging innovation that allows for both dipping and squeezing and holds three times as much Heinz® Ketchup as the traditional packet. It received recognition from the National Restaurant Association during its first Food & Beverage Product Innovations Awards, which highlighted progressive food and beverage products that will make a significant impact in the restaurant industry. The product, touted for helping drive customer satisfaction and profitability for restaurant and foodservice operators

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nationwide, was showcased in the Food & Beverage Product Innovations Gallery at the 2011 NRA event in Chicago in May. In June, it was honored with a Silver award in Innovation from the 23rd DuPont Awards for Packaging Innovation. “For more than a century, Heinz has been committed to introducing innovative products and packaging that address the evolving needs of our customers and consumers,” says Michael Okoroafor, vice president Heinz Packaging Research & Development. “Dip & Squeeze marks the most significant packaging innovation for the ketchup packet in more than 42 years, revolutionizing the way consumers enjoy Heinz Ketchup on the go. To be recognized by these two highly respected organizations is a great honor.” The packaging was developed with Multivac.

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B R IEF S Outgoing Campbell Soup Co. president & CEO Douglas Conant, appearing on CNBC in June, says the company will have an exciting array of new soups in new packaging targeting Millennial consumers for 2012. The food and beverage can market is forecast to grow to $48 billion by 2016, according to the Global Food and Beverage Metal Cans Market report from Marketsandmarkets.com. The global market for food and beverage metal cans was estimated at 329,357 million cans in 2010 and is expected to reach 385,547 million cans in 2016.

Present Your Product Preserve Your Brand

The 116-page book, Machinery Matters: John Henry on Packaging, Machinery, Troubleshooting, is now available at Amazon.com in e-book and paperback formats. The book is a collection of 40+ columns and articles Henry wrote for Food & Beverage Packaging (formerly Food & Drug Packaging) between 2001 and 2010. Many of the articles address troubleshooting of various types of packaging machinery including Vision Inspection, Coding, Fillers, Cappers, Cartoners and more. During its first board meeting of 2011 at Interpack, the World Packaging Organisation (WPO) elected Thomas L. Schneider, CPP, as WPO’s new President for 2012-2014. He was elected by unanimous vote of the WPO Board. Schneider served on the IoPP National Board as President and Chair in 2004 and 2005 respectively. He is a member of the IoPP College of Fellows and is also an Honorary Life Member of the IoPP. Sunny Delight Beverages Co., Cincinnati, a major producer of fruit-based juices and juice drinks, released its third annual Sustainability Report that highlighted the company’s progress that included maintaining zero waste to landfill at all of the company’s plants, reducing the amount of plastic and packaging of company’s products by 10 million pounds, and shipping more than 90% of volume in full truckloads to reduce the company’s carbon footprint.

Simple and versatile, Glue Dots produce visible results in a variety of packaging applications.

Instant Bond No Mess No Residue No Odor

ConAgra Foods, Inc. made a proposal to Ralcorp Holdings, inc. to acquire Ralcorp for approximately $4.9 billion plus the assumption of $2.5 billion in debt. World demand for bulk packaging is projected to rise 5.8% per year to $56.0 billion in 2015, with advances driven by growth in manufacturing activity, especially in key end-use industries such as food and beverages and chemicals and pharmaceuticals. Together, China and the United States– the two largest markets–will account for about one-half of value gains in bulk packaging demand between 2010 and 2015, according to World Bulk Packaging, a new study from The Freedonia Group, Inc. The Institute of Packaging Professionals (IoPP) has named Jim George as the new director of education. George comes to IoPP with solid journalism and packaging industry credentials. He will be developing and expanding educational programs for IoPP. George can be reached at 630-696-4011, or e-mail [email protected].

Learn more about Glue Dots Brand Adhesives, Application Equipment, and Packaging Solutions at:

www.GlueDots.com/Adhesives l

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PMMICorner

MACHINERY COMMUNICATIONS TECHNOLOGIES OPEN THE DOOR TO ENHANCED PRODUCTIVITY s consumer packaged goods companies (CPGs) continually work to maximize uptime, modern machinery communications will play an integral role in advancing the production line. And as computer, mobile and wireless technologies continue to evolve, the options available for machinery communications are becoming more intelligent, providing realtime data that helps CPGs and other manufacturers meet and exceed their production goals. Whether that data is transferred internally, between machines or outside the production line, machinery communications have evolved beyond the traditional one-to-one connection. Elaborate networks connect software applications and hardware devices throughout the plant to maximize uptime and collect meaningful data for measuring and optimizing overall equipment effectiveness (OEE). PMMI’s recent study, “Machinery Communications – Trends and Challenges,” explores the expectations and drivers behind advancements in these technologies as end-users demand solutions that work together to prevent downtime, track and diagnose slowdowns and interruptions, and increasingly, auto-correct problems on the line. Most individual machines consist of five major parts that must communicate with each other to maintain or enhance efficiency: the logic controller, visualization, Input/ Output (I/O) and sensors, motion system and safety system equipment. Internal communications refers to communications between these five equipment groups. Machine-tomachine (M2M) technology supports wired or wireless communications. The sheer volume and variety of communication protocols, technologies and legacy equipment makes M2M integration the toughest area for manufacturers to master. Additionally, widespread implementation of standardized programming structures, such as PackML, is hampered due to a lack of education. Meanwhile, 84% of surveyed packaging professionals reported that they currently use or

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BY JORGE IZQUIERDO

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are moving towards Ethernet-based fieldbus protocols. Benefits include: greater bandwidth, enhanced real-time data reporting speed, support for multiple protocols and integration of legacy plant networks for easier data exchange. Though Ethernet technology shares the generic name of fieldbus, fundamental differences in data transfer methods of these real-time network control systems can present challenges in achieving connectivity between machines. To clear this hurdle, packagers use multiple communication protocols such as Ethernet/IP, ProfiNet, EtherCAT, and Modbus. Packaging engineers should remain flexible in selecting hardware or software as they continue to move towards Ethernet solutions. Considering best-in-class hardware or software can make achieving optimal operating efficiency and connectivity easier than adhering to a standardization policy alone. According to the study, 42% of participants viewed end-users as being the driving force behind changes in machinery communications due to their need to achieve OEE and uptime, reduce cost and continually innovate. Some 22% of respondents said they look to the automation technology suppliers as the drivers behind the advanced functionalities that will give them the competitive edge and 36% said that end users, automation technology suppliers and OEMs have worked together to bring about such changes. No matter where the change is coming from, the area of machinery communications technology continues to grow. That growth will be evident at PACK EXPO Las Vegas 2011 (September 26-28; Las Vegas Convention Center) where packaging equipment suppliers will showcase the latest advancements in internal, M2M and external innovations. Discounted registration is currently available at www.packexpo.com. F&BP

Jorge Izquierdo, Vice President, Market Development, PMMI

UNWRAP

BAG See Innovative Packaging / Palletizing Robots at KUKA Robotics booth C-4631 September 26-28th, 2011 www.kukarobotics.com

PACK

STACK

Kellogg Co.

J.M. Smucker Grupo Bimbo SA co.

Hershey Unilever PLC

Hostess Brands Inc.

Dean Foods Co.

Hormel Foods Kellogg Co.

tyson foods Dole Food Co. Inc.

McCormick & Co. Inc.

McCain Foods

Foods

Perdue

kikkoman

unilever PLC

Fresh Del Monte Produce Inc.

H.J. Heinz Co.

Kraft

Unilever PLC Chiquita Brands International

Grupo Bimbo SA

PepsiCo Inc.

Foods

Dole Food Co. Maple Leaf Foods Inc.

Pilgrim's Pride Corp.

Hershey

Hershey

Del Monte Foods

Mars Inc.

Perdue

Gruma

Dole Food Co. General Mills

Groupe Danone

Dole Food Co.

Land O'Lakes Inc.

Fresh Del Monte

Associate Produce Inc. British Foods Hostess Brands Inc.

PepsiCo Inc.

Groupe Danone

Campbell Soup Co.

Hormel Foods

Kikkoman

Nestlé SA

Mars Inc.

Tyson Foods Inc.

General Mills

Cargill Meat Solutions

Tyson Foods Grupo Inc. Bimbo SA

Procter & Gamble Co.

Associate British Foods

Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

&

ConAgra Foods

Food Co.

Mars Inc.

& Gamble Co.

Procter

Del Monte Foods

Dean Foods Co.

PLC

Inc. Gruma Maple Leaf Foods Schwan

Foods

Kraft Foods

Mars Inc.

Fresh Del Monte Produce Inc.

Sara Lee Kellogg Co.

Dole Food Co.

Gruma ConAgra

Dean Foods Co.

Maple Leaf Foods Inc.

Chiquita Brands International

perdue

Campbell Soup Co.

Tyson Foods Inc.

Fresh Del Monte Produce Inc.

sara lee

Land O' Unilever Lakes Inc.

H.J.Heinz Co. perdue Dole Food Co.

Ralcorp Holdings

Maple Leaf Foods Inc.

Sara Lee

Gruma

Hershey

Nestlé SA

Groupe Danone

Hershey

Perdue

Hostess Brands Inc.

Hormel Foods

Maple Leaf Foods Inc.

McCormick & Co. Inc.

ConAgra Foods

General Mills

Nestlé SA

Dean Foods Co.

Kraft Foods

Tyson Foods Inc

Perdue

Dole

General Mills Fresh Del Monte Produce Inc.

Unilever Kellogg Co.

Kikkoman

Dole

McCain Foods

Mars Inc.

Procter & Gamble Co.

Cargill Meat Solutions

Schwan Food Co.

Hershey

Chiquita Brands International

Sara Lee

Perdue

Foods Inc. Nestlé SATyson PepsiCo Inc.

Gruma

CoverStory

Gruma

FOOD PACKAGERS Billion dollar brands, multibillion dollar companies Big companies with mega-brands stay on track through business deals, marketing moves, and packaging changes. / by RICK LINGLE , Editor-in-Chief he more things change the more they stay the same. That’s certainly true in our exclusive, annual rankings of the top Food Packagers. As detailed in the methodology note listing (p. 32), the rankings are based on 2010 sales revenues or from the corresponding fiscal year. For example, the cutoff in last year’s list for what would have been the 50th food packager company was $2.1 billion. Coincidentally—give or take a hundred million dollars—that’s the same cutoff point for this year’s list.

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Another sure thing is that you can count on Nestlé SA and Kraft Foods to remain one and two respectively. They did it again this year as they have for the last four years in a row. Those same leading companies were involved in major business deals that reshuffled the brands and consumer packaged goods landscape. In 2010, Kraft sold the DiGiorno and Delissio brands, along with the rest of its frozen pizza business, to Swiss-based food manufacturer Nestlé. According to Bloomberg, this move helped finance Kraft’s bid for Cadbury, while also effectively ensuring that Nestlé would not

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Mars Inc. Foods

Gruma ConAgra

Hostess Brands Inc.

H.J. Heinz Co.

McCain Foods Dean Foods Co.

Hormel Foods Kellogg Co.

tyson foods Inc.

Foods Kraft

Unilever PLC Chiquita Brands International

Gruma

Perdue

Foods

Dole Food Co.

unilever PLC

Fresh Del Monte Produce Inc.

Groupe Danone

Dole Food Co.

Grupo Bimbo SA

Del Monte Foods

Hershey Unilever PLC

Mars Inc.

Hershey

Maple Leaf Foods Inc.

PepsiCo Inc.

Associate

Gruma

&

Perdue

McCormick & Co. Inc.

Fresh Del Monte Produce Inc. Hostess Brands Inc.

Pilgrim's Pride Corp.

PepsiCo Inc.

Del Monte Foods

British Foods Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

Hershey

Kikkoman Associate British Foods

Dole Food Co.

Tyson Foods Inc.

Food Co.

Land O'Lakes Inc.

Inc. Gruma Maple Leaf Foods Schwan

Tyson Foods Grupo Inc. Bimbo SA

Hormel Foods

Cargill Meat Solutions

General Mills

Procter & Gamble Co.

Nestlé SAMarsInc. Campbell Soup Co.

Dole Food Co.

Dole Food Co. General Mills

ConAgra Foods

Sara Lee Kellogg Co.

Maple Leaf Foods Inc.

Kellogg Co.

kikkoman

Hershey

McCain Foods

Chiquita Brands International

perdue

Dean Foods Co.

Campbell Soup Co.

Tyson Foods Inc. Sara Lee

Fresh Del Monte Produce Inc.

Kraft Foods

Mars Inc.

Groupe Danone

H.J.Heinz Co. perdue Dole Food Co.

Ralcorp Holdings

Dean Foods Co.

Maple Leaf Foods Inc.

sara lee &

Nestlé SA

Hershey

Gamble Co.

PLC

Procter

Schwan Food Co.

Nestlé SA

Perdue

Hostess Brands Inc.

Gruma

J.M. Smucker Grupo Bimbo SA co.

Dole

Land O' Hershey Unilever Lakes Inc.

Fresh Del Monte Produce Inc.

Dean Foods Co.

Maple Leaf Foods Inc.

McCormick & Co. Inc.

ConAgra Foods

Groupe Danone

Perdue

Sara Lee

Procter & Gamble Co.

Cargill Meat Solutions

Kraft Foods

Tyson Foods Inc

Perdue

Dole

General Mills Fresh Del Monte Produce Inc.

Unilever Kellogg Co.

Kikkoman

General Mills

Hormel Foods

Chiquita Brands International

Mars Inc.

Gruma

Foods Inc. Nestlé SATyson PepsiCo Inc.

FOOD PACKAGERS

PACKAGING NOTABLES: Green Giant sets package sensors to ‘DONE’ ow do you make a good product better? Enhance the packaging, of course. That’s what General Mills did in early 2011 with the successful line of Green Giant brand Valley Fresh Steamers. And successful it has been: The microwave-in-the-bag vegetables with sauce ranked a heady No. 4 among the top 10 most successful new products in the United States in 2009, according to industry analysts Information Resources, Inc. (IRI). A package innovation debuting in January makes it

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submit a competing bid for the confectionery company. Cadbury is of course gone from our list having been absorbed into Kraft; Cadbury itself was #17 last year with $9.36 billion in revenues, which would have placed it in that same position again this year ahead of Campbell Soup. It was in 2006 that Tyson Foods held the runner-up spot to perennial paramount Nestlé, which remains distantly entrenched at the top. It’s understandably challenging for a packager of proteinbased foods to keep pace with a nimble giant like Kraft that spans the entire spectrum of packaged foods. Kraft, at $36 billion, appears settled comfortably into the runner-up spot. Our third slot looks to be more competitive, with Mars Inc., Tyson Foods, and PepsiCo all bunched around the $30 billion mark. What makes a food company a top food company? In a word, brands. Big brands make for big sales volumes that make for big companies. For example, #2 Kraft Foods has 11 brands that top $1 billion in annual sales including Oreo, Nabisco, Maxwell House, and Oscar Mayer meats. Just as impressive, Kraft’s portfolio contains 70 brands that

even easier for consumers to prepare the microwave-inbag vegetables with sauce: The Green Giant cook sensor. Available on four Valley Fresh Steamers Healthy Colors products, the cook sensor gives consumers a clear visual signal that the microwaved vegetables are ready to eat. The word DONE appears on the packaging when the food inside has reached its optimal cooking point.

each generate annual revenues $7 billion b ll h of more than $100 million—that’s $7+ right there, enough to make the Top 20 on our list. PepsiCo has even more: 19 brands that generate more than $1 billion of retail sales each — and that’s sharply up from 11 in 2000. Providing snacks that make people thirsty is a synergistically paired business strategy. Not to be outdone, Nestlé owns 20 brands that have annual sales of over CHF 1 billion (US$1.2B) Putting it in perspective, each of those $1 billion brands’ sales is higher than the Gross Domestic Product of The Netherlands or Turkey. Companies like these do not get where they are by sitting tight, but continue to push on the innovation accelerator. For Nestlé, that’s through three growth drivers: nutrition, health and wellness. It looks to emerging markets for opportunities to provide nutritious, affordable, branded food to lower income consumers around the world. The packager also notes that out-of-home consumption is growing faster than in-home and opportunity in premium products. Also, incomes are increasing as is leisure time. These are just two trends that point to accelerated growth in premium food and drinks. Nestlé notes that each of its

PACKAGING NOTABLES: SunChips PLA-bag redux quiets critics rito-Lay’s SunChips made a big splash in the name of sustainability when the original petro-based three-layer structure transitioned into a 30% structure made of compostable polylactic acid (PLA) in 2009. Then in April 2010, in conjunction with Earth Day, the snacks giant made a bigger, louder splash with the introduction of a 100% compostable structure across the 5-product line of 10.5-ounce bags. And then the complaints about the bag’s crinkly “loudness” infamously reverberated throughout the

F

media. Frito-Lay heard loud and clear, especially after product sales slid 11%. After reformulating the bag structure to make the noise level more palatable to consumers’ ears, it relaunched a 100% compostable bag in the original variety only. The secret was the adhesive used in the package—substituting a flexible polymer for the more rigid polymer. That did the trick, lowering the noise level by 20 decibels to silence critics.

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CoverStory MachineryTechnology product categories has its own specific premium strategy, encompassing brands such as Nespresso and Häagen-Dazs.

PACKAGING NOTABLES: Nestlé finds a new pathway for microwave convenience

Big picture consciousness

“We are the second-largest food and beverage business in the world, and the largest food and beverage business in North Amer-

hat do you get when you mix a microwave ready meal in a stand-up format with a self-venting valve? A winner, according to a TNS survey of more than 60,000 consumers who named Nestlé Lean Cuisine Market Creations with steam-in-bag technology as Product of the Year in the frozen food category. Pioneered by Birds Eye in 2006 and named one of the Top 10 packages that have made the biggest consumer impact this decade by Brand Packaging magazine, steam-in-bag products continue to offer packaging-driven innovation. This summer Nestlé Foods took a new route when it introduced eight varieties of Lean Cuisine Market Creations in 10½-ounce stand-up pouches. The packaging breakthrough is a steam release valve on the bag back. A clear film patch applied over a perforated hole in the bag film creates the venting. When consumers buy into packaged convenience, it’s a win-win proposition.

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ica,” states Indra K. Nooyi, PepsiCo chairman and chief executive officer. “We are investing in a healthier planet by reducing water usage, increasing recycling levels and minimizing our carbon footprint.” The packaging component to products continues to grow in importance, pulled along as corporate social responsibility and sustainability programs have gained prominence. All those brands require a lot of packaging, for sure, but a raised environmental consciousness has resulted in concerted efforts to use less packaging than in the past. Nestlé reported that in 2010 the company consumed 4.6 million tonnes (5 million U.S. tons) of packaging materials, a weight reduction of 70,828 tonnes (78 million tons) from 2009. Likewise, Kraft reported this spring that, from 2005 through 2010, its energy use is down 16 %, net waste is down 42 %, and pack-

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aging has been reduced 100,000 metric tons (200 million lb). More is planned. Going forward and from a 2010 base, by the end of 2015 Kraft Foods plans include eliminating 50,000 metric tons (100 million lb) of packaging material. The on again, off again progress away from the recession remains somewhat unsteady due to the wild card

Hershey Unilever PLC

Mars Inc. Foods

Gruma ConAgra

Kraft Foods

Perdue

Hostess Brands Inc.

tyson foods Inc.

Foods

H.J. Heinz Co.

Dean Foods Co.

Hormel Foods Kellogg Co.

Dole Food Co.

unilever PLC

Fresh Del Monte Produce Inc.

McCormick & Co. Inc.

Dole Food Co.

McCain Foods

Unilever PLC Chiquita Brands International

Grupo Bimbo SA

PepsiCo Inc.

Mars Inc.

Maple Leaf Foods Inc.

Pilgrim's Pride Corp.

Associate

Gruma

&

Perdue

Hershey

Hershey

Del Monte Foods

PepsiCo Inc.

Del Monte Foods

British Foods Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

Groupe Danone

Dole Food Co.

Tyson Foods Inc.

Food Co.

Fresh Del Monte Produce Inc. Hostess Brands Inc.

Land O'Lakes Inc.

Inc. Gruma Maple Leaf Foods Schwan

Tyson Foods Grupo Inc. Bimbo SA

Kikkoman Associate British Foods

Hormel Foods

Cargill Meat Solutions

General Mills

Procter & Gamble Co.

Nestlé SAMarsInc. Campbell Soup Co.

Dole Food Co.

Dole Food Co. General Mills

ConAgra Foods

Sara Lee Kellogg Co.

Maple Leaf Foods Inc.

Kellogg Co.

kikkoman

Hershey

McCain Foods

Chiquita Brands International

perdue

Dean Foods Co.

Campbell Soup Co.

Tyson Foods Inc. Sara Lee

Fresh Del Monte Produce Inc.

Kraft Foods

Mars Inc.

Groupe Danone

H.J.Heinz Co. perdue Dole Food Co.

Ralcorp Holdings

Dean Foods Co.

Maple Leaf Foods Inc.

sara lee &

Nestlé SA

Hershey

Gamble Co.

PLC

Procter

Schwan Food Co.

Nestlé SA

Perdue

Hostess Brands Inc.

Gruma

J.M. Smucker Grupo Bimbo SA co.

Dole

Land O' Hershey Unilever Lakes Inc.

Fresh Del Monte Produce Inc.

Dean Foods Co.

Maple Leaf Foods Inc.

McCormick & Co. Inc.

ConAgra Foods

Groupe Danone

Perdue

Sara Lee

Procter & Gamble Co.

Cargill Meat Solutions

Kraft Foods

Tyson Foods Inc

Perdue

Dole

General Mills Fresh Del Monte Produce Inc.

Unilever Kellogg Co.

Kikkoman

General Mills

Hormel Foods

Chiquita Brands International

Mars Inc.

Gruma

Foods Inc. Nestlé SATyson PepsiCo Inc.

Gruma

FOOD PACKAGERS

of other geopolitical factors. At the time of this report in July, it appeared the economy was again heading forward. Nestlé, for one, is “confident” that so-called organic revenue will rise 5 to 6% in 2011. That makes one wonder: If a rising tide lifts all boats, does that mean that the bigger “boats” will be lifted higher? Time, as always, will tell. F&BP

CPG FOOD PACKAGERS ACTIVITY: Largest mergers and acquisitions TARGET

ACQUIRER/MERGER

VALUE (IN BILLIONS)

DATE COMPLETED

Cadbury plc

Kraft Foods

$18.5

June 2010

KKR & Co.

Del Monte Foods

$5.3

pending

Ralcorp Holdings

ConAgra Foods

$4.9

proposed

Kraft Foods North America frozen pizza business

Nestlé SA

$3.7

March 2010

Lance Inc./Snyder’s of Hanover

Snyder’s-Lance, Inc.

$1.6

December 2010

American Italian Pasta Co.

Ralcorp Holdings

$1.3

July 2010

Source: Standard & Poor, Food & Beverage Packaging

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CoverStory MachineryTechnology

PACKAGING SUPPLIERS: M&A DEALS he packaging landscape is also affected by what is going on in the supply side. After a challenging several years, the overall economy and the packaging industry have exhibited encouraging signs of recovery. Despite economic uncertainties that linger, the positive momentum in the economy has led to a notable resurgence in mergers and acquisitions (M&A) in 2010. The packaging industry has participated significantly in this trend. It is important to note from the accompanying graphic that aggregate deal value and the number of deals have increased meaningfully between 2009 and 2010. Both strategic and private equity valuations for packaging M&A transactions in 2010 have improved over 2009, but have remained notably below the pre-recession levels. Strategic buyers have come off the sidelines to fuel their growth objectives via strategic acquisi-

T

tions. Such acquisitions are typically driven by cost synergies as well as opportunities for geographic and product line expansion. Key deals over the past year

Among the most notable packaging transactions in 2010 involving a strategic acquirer included: • Reynolds/Rank Group’s acquisition of Pactiv • Bemis’s acquisition of Alcan Food Americas • Amcor’s acquisition of Alcan Global Pharmaceutical Packaging • Graham Packaging’s acquisition of Liquid Container • Sonoco’s acquisition of Associated Packaging Technologies • Greif’s acquisition of Storsack Private equity firms have been important and active participants in packaging M&A activity over the last several years, and continued the trend in 2010. According to Mesirow Financial research, approximately 60% of packaging M&A in 2010 was backed by private equity firms, which were attracted to packaging for several reasons, including that the industry has proven to be less cyclical than other notable sectors. F&BP Source: Miserow Financial (www.mesirowfinancial.com) via Packaging Strategies, www.packstart.com, Food & Beverage Packaging

GLOBAL M&A ACTIVITY - PACKAGING $40.0

$35.0

$32.8

$30.0 $26.6

$ in billions

$24.4

$25.0 $19.3

$20.0

$18.4

$15.0

$10.0

$5.0

2006

2007

$0.0

Source: Capital IQ, Mesirow Financial

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2008

2009

2010

Packaging Machinery Trends he trends in machinery play a fundamental role in packaging. Charles D. Yuska, president and CEO of the Packaging Machinery Manufacturers Institute (PMMI), cites these trends that were seen on the floor at PACK EXPO International 2010 and that will again be evident at this fall’s PACK EXPO Las Vegas: • Increased integration at all levels — component, machine-to-machine and beyond the line to plant and enterprise — and greater functionality with greater ease of use • Increased functionality with simpler controls and operator interfaces • Sustainability improvements — renewable materials, recycled content, source reduction, waste minimization and sustainable machines • Brand power: convenience & shelf appeal • Serialization and food safety solutions that respond to looming pharmaceutical pedigree deadlines and tracking and protecting efforts in food processing • New technologies, such as digital printing and augmented reality, that help create new relationships with customers.

T

PACKAGING NOTABLES: The convertible clamshell uniquely serves up convenience he Institute of Packaging Professionals’ annual AmeriStar awards program draws the best in packaging. This year, foodservice played the leading role as the “Best of Show” winner from among more than 100 submissions. This creative, winning package structure delivers on unique needs on both sides of the foodservice counter. The hingeless, polypropylene structure provides significant operational efficiency improvements, as well as product differentiation. It provides consumers with product protection, portability, visibility, insulation, and calibrated moisture release through the inventive integration of vents when the package is in the “closed” orientation. The eyecatching, unique, plate-like package is recyclable where facilities exist, reusable, and formed from a custom, downgauged resin sheet thickness. The package was sponsored by Lansmont Corp., and earned AmeriStar top honors for HAVI Global Solutions.

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31

PepsiCo Inc.

Gruma

Unilever PLC

tyson foods Inc.

Dole Food Co.

H.J. Heinz Co.

McCain Foods Dean Foods Co.

Hormel Foods Kellogg Co.

Kraft Foods

Perdue

Unilever PLC Chiquita Brands International

Grupo Bimbo SA

Del Monte Foods

Foods

Dole Food Co.

Hostess Brands Inc.

Hershey

McCormick & Co. Inc.

unilever PLC

Fresh Del Monte Produce Inc.

Groupe Danone

Mars Inc.

Perdue

Maple Leaf Foods Inc.

Hershey

Mars Inc.

Dole Food Co. General Mills

Pilgrim's Pride Corp. PepsiCo Inc.

Our Top 50 Food Packagers list uses sources that include annual company reports as well as 10-K filings with the Securities and Exchange Commission, databases such as Hoover’s and Gale’s, news reports, company websites, direct company contacts, and similar editorial from sister publications, particularly Dairy Foods and National Provisioner. Sales are based on calendar year 2010 or the most recent fiscal year that conforms to that timeframe. We used XE, the online currency converter (www.xe.com), where necessary. Major changes from 2009 include Cadbury being delisted as it is now part of Kraft Foods. We have also drilled down to the best of our abilities using all available resources to separate out food from beverages and other product segments. Finally, we acknowledge the help of staff and resources at the Schaumburg Public Library, Schaumburg, IL and the Helen Plum Library, Lombard, IL.

Associate

kikkoman

Dole Food Co.

Land O'Lakes Inc.

Fresh Del Monte

Associate Produce Inc. British Foods Hostess Brands Inc.

Foods

&

Groupe Danone Tyson Foods Inc.

Schwan Food Co.

Gruma ConAgra

&

Del Monte Foods

British Foods Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

Hershey

Kikkoman

Gruma

Maple Leaf Foods Inc.

Hormel Foods

General Mills

Cargill Meat Solutions

Tyson Foods Grupo Inc. Bimbo SA

Procter & Gamble Co.

Nestlé SAMarsInc. Campbell Soup Co.

Maple Leaf Foods Inc.

Chiquita Brands International

perdue

Campbell Soup Co.

Kraft Foods

ConAgra Foods

Sara Lee Kellogg Co.

Dole Food Co.

Mars Inc.

Fresh Del Monte Produce Inc.

H.J.Heinz Co. perdue Dole Food Co.

Kellogg Co.

sara lee Gamble Co.

PLC

METHODOLOGY

Fresh Del Monte Produce Inc.

Dean Foods Co.

Maple Leaf Foods Inc.

Procter

Land O' Hershey Unilever Lakes Inc.

Hershey J.M. Smucker Grupo Bimbo SA co.

Hostess Brands Inc.

Gruma

Ralcorp Holdings

Dean Foods Co.

McCain Foods

Tyson Foods Inc.

Dean Foods Co.

Perdue

Sara Lee

Maple Leaf Foods Inc.

McCormick & Co. Inc.

ConAgra Foods

General Mills

Nestlé SA

Schwan Food Co.

Dole

Nestlé SA

Hershey

Sara Lee

Procter & Gamble Co.

Cargill Meat Solutions

Kraft Foods

Tyson Foods Inc

Perdue

Dole

General Mills Fresh Del Monte Produce Inc.

Unilever Kellogg Co.

Kikkoman

Groupe Danone

Chiquita Brands International

Mars Inc.

Hormel Foods

Perdue

Foods Inc. Nestlé SATyson PepsiCo Inc.

Gruma

CoverStory

Gruma

FOOD PACKAGERS Rank

Company

2010 Total Revenues

Headquarters

(in $ Billions)

63.10

1

No. of Plants

Chief Packaging Officer, Title

Selected Brands

443

Anne Roulin

Hot Pockets; Purina; Buitoni; Dreyer’s/Edy’s; Stouffer’s; Nestlé; Lean Cuisine; Gerber

global head of pkg and design

Nestlé SA Vevey, Switzerland / Glendale, CA

39.37

2

178

Perfecto Perales sr dir pkg & research

Kraft, LU, Milka, Nabisco, Oreo, Philadelphia and Oscar Mayer

Kraft Foods Inc. Northfield, IL

30.00

3

135

Mars Inc.

Director of Strategic Brand Design for Mars Chocolate North America

M&M’s; Snickers; Twix; Uncle Ben’s; Pedigree; Sheba; Whiskas; Dove; Extra; Orbit

Steven Morris

Tyson; Wright

Steve Ginsberg

McLean, VA

28.43

4

104

dir, pkg innovation

Tyson Foods Inc. Springdale, AR

28.34

5

213

Robert Lewis VP, worldwide pkg innovation and equipment development

PepsiCo Inc.

Lay’s, Quaker, Doritos, Ruffles; Life, Cap’n Crunch; Rice-A-Roni; Near East

Purchase, NY

6

Groupe Danone

7

Unilever PLC

8

JBS USA (unit of Grupo JBS-Friboi)

9 10

32

19.85

83

Paris, France / White Plains, NY

Christophe Perthuisot dir, Danone R&D

18.47

177

London, U.K. / Englewood Cliffs, NJ

Jay Gouliard VP, global foods pkg

16.06

6

Cargill Meat Solutions, Wichita, KS (was Cargill Inc. Minneapolis, MN)

15.00

33

General Mills Inc.

14.80

F O O D &B E V E R A G E PA C K A G I N G

Mike Kennedy Cargill Strategic Sourcing Leader

N/A

Carol Cady dir, pkg R&D

JUNE/JULY

2011

Hellmann’s; Knorr; Wish-Bone; Becel/Flora; Slim-Fast; Bertolli; Ragu; Ben & Jerry’s Swift Angus Select; Swift Premium Black Angus; Anglo

Greeley, CO

Minneapolis, MN

Activia; Actimel/DanActive; Dannon; Danone; Danacol; Stonyfield Farm

W W W . F O O DA N D B E V E R A G E PA C K A G I N G . C O M

Sterling Silver; AngusPride; Excel; Rumba; Meadowland Farms; Progressive Baker; Wilbur Chocolate Cheerios; Wheaties; Betty Crocker; Pillsbury; Yoplait; Green Giant; Progresso; Nature Valley; Chex Mix

Company

2010 Total Revenues

Rank

Headquarters

(in $ Billions)

11

Kellogg Co.

12

Dean Foods Co.

13

ConAgra Foods Inc.

14

Smithfield Foods Inc.

15

H.J. Heinz Co.

16

Grupo Bimbo SA

18

Sara Lee Corp.

19

Hormel Foods Corp.

20

106

85 40+ 74

Pittsburgh, PA

80+ 56 42

23

McCain Foods Ltd.

6.90

39

6.89

26

Westlake Village, CA

6.50

57

26

Maple Leaf Foods Inc.

27

Perdue Inc.

28

Smucker Co. (The J M)

29

Ralcorp Holdings Inc.

30

Gruma, S.A.B. de C.V. (prev Gruma Corp. / Mission Foods)

Mars Inc. Foods

Gruma

Hostess Brands Inc.

tyson foods Inc.

Grupo Bimbo SA

Perdue

Dole Food Co.

unilever PLC

Fresh Del Monte Produce Inc.

Sara Lee, Jimmy Dean, Hillshire Farm, Ball Park Hormel; Jennie-O; Dinty Moore; SPAM; ChiChi’s; Lloyd’s; Stagg

SVP, procurement

Pilgrim’s Pride; EggsPlus; EatWellStayHealthy; Gold Kist

Dave Spare

Dole

Tim Thomas

SVP, supply chain

Mazola; Tone’s; Durkee; Spice Islands; Kingsmill; Ovaltine; Twinings; Allinson

Frank van Schaayk

McCain; Anchor; Moore’s; Brew City; Ellio’s

CEO, McCain Foods USA

5.76

18

Parmalat; Beatrice; Lactantia; Parkay; Black Diamond; Astro

Mike MacDonald mgr, pkg services

Collecchio, Italy

Hershey Co. (The)

Dan Miller

James House

6.60

Florenceville, New Brunswick, Canada / Lisle, IL

25

Martha E. Cassens

VP, marketing, Dole Packaged Foods

London, U.K.

Parmalat S.p.A.

Orweat; Mrs Baird’s; Bimbo; Entenmann’s; Marinela; Tia Rosa; Barcel; Ricolino

Leopoldo Barba

corporate mgr of pkg development

Pittsburg, TX

Associated British Foods

Heinz; Ore-Ida; Smart Ones; Weight Watchers; Bagel Bites; Classico; Lea & Perrins

Michael Okoroafor

dir pkg innovation & development

Austin, MN

22

Smithfield; John Morrell; Lykes; Patrick Cudahy; Armour; Eckrich; Farmland; Krakus; Butterball

Henry Morris

corporate purchasing officer

Downers Grove, IL

Dole Food Co.

Banquet; Healthy Choice; Hunt’s; Orville Redenbacher’s; Reddi-wip; Marie Callender’s

Robert Weick

VP, pkg R&D/innovation

Mexico City, Mexico

Pilgrim’s Pride Corp.

FOOD PACKAGERS

Dean’s; WhiteWave; Silk; Horizon Organic; Land O’Lakes (licensed); Dean’s; Mayfield; Meadow Gold; Country Fresh; Swiss Dairy; Garelick Farms

Brad Holcomb

VP, ops

7.22

Foods

Chiquita Brands International

Gruma

Rice Krispies; Special K; Frosted Flakes; Keebler; Nutri-Grain; Eggo; Pop-Tarts; Cheez-It; All-Bran; Morningstar Farms

Smithfield, VA

7.56

Kraft

Unilever PLC

Paul Pezzoli

VP, pkg and processing

9.60

Kellogg Co.

50+

Omaha, NE

10.50

Dean Foods Co.

Hormel Foods

Selected Brands

chief procurement officer

11.20

McCain Foods

Foods

Title

Dallas, TX

12.10

H.J. Heinz Co.

Chief Packaging Officer,

senior dir, pkg innovation

12.12

Dole Food Co.

No. of Plants

Battle Creek, MI

21

24

12.40

Mars Inc.

Maple Leaf Foods Inc.

Del Monte Foods

Hershey Unilever PLC

Associate

Hershey

Hershey

PepsiCo Inc.

Gruma ConAgra

&

Perdue

McCormick & Co. Inc.

Fresh Del Monte Produce Inc. Hostess Brands Inc.

Pilgrim's Pride Corp.

PepsiCo Inc.

Del Monte Foods

British Foods Procter Gamble Co. Kellogg Co. Schwan Food Co. Pilgrim's sara Pride Corp. lee ConAgra

Groupe Danone

Tyson Foods Inc.

Kikkoman Associate British Foods

Dole Food Co.

Food Co.

Land O'Lakes Inc.

Inc. Gruma Maple Leaf Foods Schwan

Tyson Foods Grupo Inc. Bimbo SA

Hormel Foods

Cargill Meat Solutions

General Mills

Procter & Gamble Co.

Nestlé SAMarsInc. Campbell Soup Co.

Dole Food Co.

Dole Food Co. General Mills

ConAgra Foods

Sara Lee Kellogg Co.

Maple Leaf Foods Inc.

Kellogg Co.

kikkoman

Hershey

Chiquita Brands International

perdue

Dean Foods Co.

Campbell Soup Co.

Tyson Foods Inc. Sara Lee

Fresh Del Monte Produce Inc.

Kraft Foods

Mars Inc.

Groupe Danone

H.J.Heinz Co. perdue Dole Food Co.

Ralcorp Holdings

Dean Foods Co.

Maple Leaf Foods Inc.

sara lee &

Nestlé SA

Hershey

Gamble Co.

PLC

Procter

Schwan Food Co.

Nestlé SA

Perdue

Hostess Brands Inc.

Gruma

J.M. Smucker Grupo Bimbo SA co.

Dole

Land O' Hershey Unilever Lakes Inc.

Fresh Del Monte Produce Inc.

Dean Foods Co.

Maple Leaf Foods Inc.

McCormick & Co. Inc.

ConAgra Foods

General Mills Fresh Del Monte Produce Inc.

Groupe Danone

Perdue

Sara Lee

Procter & Gamble Co.

Cargill Meat Solutions

Kraft Foods

Tyson Foods Inc

Perdue

Dole

General Mills

Hormel Foods

Unilever Kellogg Co.

Kikkoman

Gruma

Chiquita Brands International

Mars Inc.

McCain Foods

Foods Inc. Nestlé SATyson PepsiCo Inc.

5.70

7

Hershey, PA

Hershey’s; Kisses; Ice Breakers; Jolly Rancher; Milk Duds; Reese’s; Twizzlers; York

Sandy Hand dir, global pkg innovation

4.97

90

Toronto, Ontario, Canada

Maple Leaf; Hygrade; Tenderflake; Dempster’s; Olivieri

Jeff Conway VP, indirect purchases OR Peter Smith, VP, corp eng

4.60

9

Salisbury, MD

Perdue; Short Cuts; Fit & Easy

Dave Owens VP, R&D

4.44

19

Orrville, OH

Jif; Smucker’s; Crisco; Pillsbury baking mixes; Hungry Jack; Folgers

Dennis Armstrong VP, logistics/ops support

4.05

44

St. Louis, MO

3.76

88

chief procurement officer

Ry Krisp; Carriage House Co.; Ralston; Post; Major Peters’; Jero’s

Leonel Garza Ramírez

Mission; Guerrero; Selecta

Kim Reed,

chief procurement officer

Nuevo León, Mexico / Irving, TX

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CoverStory Company

2010 Total Revenues

Rank

Headquarters

(in $ Billions)

31

Del Monte Foods

32

Land O’Lakes Inc.

33

Fresh Del Monte Produce Inc.

34

McCormick & Co. Inc.

35

Chiquita Brands International

36

Weston Foods, Sub. of George Weston Ltd.

No. of Plants

Chief Packaging Officer, Title

Selected Brands

3.74

20

N/A

9 Lives; Del Monte; Contadina; Meow Mix; Kibbles ‘n Bits; College Inn; Pup-Peroni; Milk-Bone

3.70

13

Tanya Dowda

Land O’Lakes; Alpine Lace; New Yorker

San Francisco, CA

Arden Hills, MN

director, packaging

3.60

16

Marvin Marlin

3.30

17

Sparks, MD

3.20

6

Cincinnati, OH

dir, package development

McCormick; Lawry’s; Club House; Grill Mates; Zatarain’s; Simply Asia; Thai Kitchen; Billy Bee

Toby Wingfield

Chiquita; Fresh Express

Lisa Feustle

dir of global pkg

3.20

38

VP, fresh marketing

Wonder, Country Harvest, D’Italiano, Thomas, Gadoua, Weight Watchers, Weston, ReadyBake

Naoya Kakizoe

Gorton’s

Darren Mahaffy

Horsham, PA

37

Nippon Suisan Kaisha Ltd.

38

Procter & Gamble Co.

39

Kikkoman Corp.

40

Schreiber Foods Inc.

41

Rich Products Corp.

42

Schwan Food Co. (The)

43 44

Del Monte; UTC; Rosy

VP, corporate packaging

Grand Cayman, Cayman Islands / Coral Gables, FL

3.17

N/A

Tokyo, Japan / Redmond, WA

president/CEO

3.10

15

Cincinnati, OH

Len Sauers

Pringles; Iams; Eukanuba

VP, global sustainability:

3.10

N/A

3.00

21

N/A

Kikkoman’s

Robert Byrne

American Heritage; Cooper

Noda, Chiba, Japan / San Francisco, CA Green Bay, WI

dir, industry and regulatory affairs

2.90

53

Buffalo, NY

Bill Gillmore

SeaPak; Rich’s; Farm Rich

chief procurement officer

2.78

16

Marshall, MN

Jane Chase Sr Dir Packaging Innovation

Hostess Brands Inc.

2.70

36

Dallas, TX

Chocoladefabriken Lindt & Sprungli AG

2.70

8

Freschetta; Red Baron; Tony’s; Mrs. Smith’s; Pagoda Express; Edwards; Larry’s; Chicago Town

chief marketing officer

Wonder; Hostess; Dolly Madison; Beefsteak; Butternut

Dieter Weisskopf

Ghirardelli; Lindt; Caffarel; Hofbauer; Kufferle

Rich Seban

CFO, admin, purchasing, mfg

Zurich, Switzerland / Stratham, NH

45

Flowers Foods Inc.

46

California Dairies

47

HP Hood LLC

48

Foster Poultry Farms

49

Hills Pet Nutrition Inc., Sub. of Colgate-Palmolive

2.60

41

Thomasville, GA

2.40

6

Visalia, CA

senior dir of procurement

Nature’s Own; Cobblestone Mill; Mrs. Freshley’s; Blue Bird

David Bush

Challenge

Greg Jenkins

VP, fluid & mfg ops

2.20

22

Lynnfield, MA

Mike Suever SVP, R&D, engineering and procurement

2.20

11

Livingston, CA

Richard King

Hood, Crowley, Kemps, Heluva Good, Rosenberger’s, Axelrod, Penn Maid, Maggio

Foster Farms

VP of Chicken Plant Operations

2.10

5

Lionel Austin

Science Diet; Prescription Diet

pkg dir

Topeka, KS

50 34

Sanderson Farms Inc.

1.90

Laurel, MS

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10

Lorri Devereaux manager, central purchasing

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MarketTrends

P R E PARE D F O O DS

FRESCHETTA REINVENTS FROZEN PIZZA PACKAGING Schwan’s debuts two distinctly different packaging formats for the brand: Whole pizza in a MAP thermoform and a by-the-slice package that relies on a microwave susceptor. by RICK LINGLE, Editor in Chief

chwan’s Consumer Brands, Inc., Bloomington, MN, the retail grocery subsidiary of The Schwan Food Co. and makers of Freschetta pizza, has taken a whole new approach to frozen pizza with the introduction of two new frozen pizza products: Freschetta Simply...Inspired Pizzas and Freschetta By The Slice (see sidebar p. 37). For the introduction of whole pizza Simply…Inspired, Schwan’s packaging staff started from scratch. The staff was directed by Marketing’s request to “reinvent frozen pizza packaging,” says senior packaging engineer Rick Green. “Frozen pizza is a category that hadn’t seen a whole lot of new packaging in a long time.” Along with Jane Chase, senior director packaging innovation and R&D, Green worked with vendors and design companies to develop and adjust the packaging following input from focus group testing. What they ended up with was a category-busting thermoform package. It’s sealed with flexible, printed lidstock that offers an easypeel tab and clear view window. The back of the opaque white thermoform features a large, colorful pressure-sensitive label. Inside, the 12-inch diameter pizza is cushioned with a corrugated pad.

S ‹‹ Category-busting Simply...Inspired serves up form and function using a MAP thermoform and colorfully printed, peelable lidding.

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Schwan’s refers to the sealed thermoform as the new “Fresch-Taste Seal” packaging that includes a modified atmosphere to prolong shelf life and keep the ingredients fresh and bright. As far as the packaging details, Schwan’s packaging team will only disclose that the thermoform is made from a barrier laminate. However, they credit Bemis Co. for its involvement in developing the thermoform. Why the radical move to a thermoform package? “Marketing really wanted to grow the category, not just get consumers who buy pizza to buy more of ours,” responds Chase. Adds Green, “They wanted us to go after consumers who are not a current purchaser of frozen pizza—either those that have left the category or are new to the category.” The packaging is as fully loaded as the thin-crust pizza, with benefits of freshness, appearance, convenience, sustainability, and easy opening, according to Green and Chase. “It’s all about growing the category,” summarizes Chase. This new package sets Freschetta Simply…Inspired Pizzas apart in the frozen pizza section and fits perfectly in home freezers. In fact, the combination of the thincrust pizza and low-profile thermoform require a clearance of just 1 ¼ in. The thermoform measures about

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13 inches to a side; it is arched along one side and flat along the other three sides. The bottom of the thermoform has ridges for rigidity. From a sustainability standpoint, the thermoform is an environmental win in terms of the amount of packaging. According to Schwan, it uses 30% less packaging by weight than a traditional pizza carton. By eliminating the outer box, Simply...Inspired saves 1,378 tons of paperboard yearly, the equivalent of more than 23,000 trees. The pizzas are packaged on a new production line located at the company’s facility in Florence, KY. In March 2011, the innovative packaging received Institute of Packaging Professionals AmeriStar recognition in the food category. The pizzas are available in eight varieties that retail for $6.79. F&BP

‹‹ The package back features graphics on a full-coverage pressuresensitive label applied over ridges that add strength.

FOR MORE INFORMATION Bemis Co. 920-727-4100; www.bemis.com

Freschetta serves up a slice of package innovation maller in size, but no less complex in scope, is the packaging for Freschetta By The Slice. All four varieties of Freschetta By The Slice provide oven-baked taste, right out of the microwave, thanks to microwave susceptor technology from Inline Packaging. The he wedge-shaped paperboard tray that holds each slice has two susceptorlaminated flaps that are folded over before the packager adds the pizza. The purpose of the double susceptor flaps is two fold, according to Schwan packaging engineer Rick Kobylinski: “The double susceptor system intensifies the heat that is focused on the crust to provide the superior crispness and browning to the pizza. za. The purpose in using the two flap design is to insure that if there is any bubbling of the cheese and saucee off of the pizza that the tray is leak proof. roof.”

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Small die-cut tabs beneath the tray keep the tray/ pizza off the microwave carousel. The susceptor tray and pizza are overwrapped in clear shrink film and inserted inside a paperboard carton. This combination package affords time-saving convenience and eliminates the use of a consumerelimin supplied microwave plate. supp “When our consumer is time“W strapped, Freschetta By The Slice strap provides the perfect solution prov when whe seeking one perfect slice of pizza in minutes,” says Mary p Brown, Bro Freschetta senior director to of marketing. Freschetta By The Slice retails for $1.99. re

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For more information: Inline Packaging 763-631-1555; www.inlinepkg.com

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‹‹ Two layers of susceptorlaminated flaps on the tray inside intensify the heating and keep the toppings contained.

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MarketTrends

PREPARED FOODS TRENDS: AN INSIDER’S VIEW hen MeadWestvaco Corp., Richmond, VA., named Diane Teer as the new president of the company’s Food Packaging Business, they selected someone who knew the consumer packaged goods (CPG) side of the business from the inside. In foods, Teer held leadership positions at ConAgra Foods where she oversaw brands including Banquet, Marie Callender’s and Healthy Choice. She also spent nine years at The Campbell Soup Co. focusing on growing and refreshing brands in the beverage and soup categories. Before that, she led marketing efforts at The Nabob Coffee Co. and the integration of its brands into Kraft’s portfolio following the acquisition by Kraft Canada. We wanted to tap her expertise to cast some light on the prepared foods markets.

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We see tremendous opportunities... using nanotechnology,

advanced barrier coatings and surface modifications. – Diane Teer, MeadWestvaco Corp.

Food & Beverage Packaging: What are the trends in packaged foods? Diane Teer: Packaging is one of the most important marketing vehicles for any brand. Effective messaging—not only through graphics but also structure—elevates the role of a pack from projecting a brand’s image to telling its story. Knowing what drives consumers to a purchase decision is the key to a brand’s success. Many of our customers have told us that they are concerned about the environmental impact of packaging. Brands want to offer consumers sustainable packaging options, but they’re not willing to do so at any price point. Private label continues to be another big trend in the food industry. Through the economic downturn, consumers became hyper-aware of their budgets, and as a result, shopping habits shifted toward private label brands. In fact, our research shows that 78% of consum-

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ers believe that private label products are just as good as established name brands. Although the economy seems to be improving, consumers are still looking for value. To stay on consumers’ grocery lists, private label brands need to maintain customer attention and loyalty. One way to do that is through packaging. Our research shows a strong correlation between better graphic quality and premium perception of a brand. Packaging can serve as a persuasive vehicle to keep a brand’s story front and center with consumers. Shelf-Ready Packaging is probably the most recent trend and the most challenging. Retailers are looking for more efficient vehicles for stocking product on the shelf and are pushing brands to find solutions. Often those solutions are in the form of tray packs which can work against the image a brand is trying to convey. Packaging that is more efficient for the retailer, is a strong communication vehicle for the brand, and is easy to shop for the consumer is a win-win-win.

F&BP: What market subsegment do you see as an especially good growth opportunity? Teer: We see tremendous opportunities in frozen food and chilled ready meals using developments such as nanotechnology, advanced barrier coatings, and surface modifications. In the frozen food segment, for example, brand owners need packaging that properly conveys the quality and consistency of the meal experience, but importantly, delivers secondary cartons and sleeves that protect the product and its image throughout the very tough freeze thaw threats in the distribution channels. F&BP: Where do you see the industry headed? Teer:

The outlook for food packaging is excellent. Brands and retailers alike understand the power of packaging in the marketing mix and are looking for innovative solutions that can drive consumer preference, improve efficiency, and reduce environmental impact.

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FOR MORE INFORMATION MeadWestvaco 804-444-1000; www.meadwestvaco.com

MaterialsTechnology

S U STAI N AB L E MATE R IAL S

BIOPLASTICS: A PRODUCT EVOLUTION OR MARKET REVOLUTION? Bioplastics authority Jeff Timm shares his thoughts on bioplastics developments in this exclusive interview. / by RICK LINGLE, Editor-in-Chief Food & Beverage Packaging: What are the major packaging drivers in bioplastic development and use? Jeff Timm: The major drivers in bioplastic packaging are incorporated in or are a part of a company’s total sustainability program, which is part of the total brand image. The basic role of a package also plays into bioplastic usage. Features like single-use, attractive endof-life options, environmental footprint and specific functionality lend themselves to the attributes that bioplastics bring to packaging. F&BP: Can you provide a definition of what a bioplastic is and maybe what it isn’t?

‹‹ Launched in June 2011, Heinz’s PlantBottle is one of the best examples of a ‘drop-in’ bioplastic and recycled PET combination. It resulted from a strategic partnership with The Coca-Cola Company.

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Timm:

There are a number of definitions floating around but I believe the Society of the Plastic Industry (SPI) definition is the one we should all embrace. It states a bioplastic is a plastic that is biodegradable, has bio-based content, or both. The trouble with this definition is that it incorporates two other words–biodegradability and bio-based–that also require definitions. This is why a bioplastic definition is so confusing. A biodegradable plastic is one thatt aundergoes a breakdown of organic masms terial in the presence of microorganisms (bacteria, fungi or algae) usually in a cont. trolled heat and moisture environment. Biodegradation is not thermal, UV or hydro degradation. Bio-based content is the fraction of the carbon content which is “new”carbon content made up of biological materials or agricultural

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resources versus fossil-derived “old” carbon content. Bio-based content is measured following the procedures set by ASTM D6866. Water soluble plastics like polyvinyl alcohol (PVOH) are not bioplastics.

F&BP: You’ve noted that there’s been a recent shift in what a bioplastic is . . . can you comment further on that? Timm: The shift is that there are more product offerings falling into the second part of the bioplastic definition: bio-based rather than biodegradable. For example, when bioplastics were first introduced to the marketplace they were almost exclusively biodegradable polymers derived from renewable resources like corn. More rec recent developments have been bioplastic derived from bio-based, renewable tics b building blocks that are not biodegradable. An example is a drop-in polyethylene polymerized from ethylene that is derived from renewable sugarcane, not petrochemical sources. This shift has added to the marketplace and consumer confusion in understanding what a bioplastic is. A simple way to look at a bioplastic is to separate how it is created vs. its end-of-life outcome. The confusion develops when we combine the creation and disposal in tthe same definition. Biodegradation and re recycling are both end-of- life outcomes. Wo Words like bio-sourced, bio-based and renewa newable are from the front-end creation side.

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F F&BP: What are the major misconceptions about bioplastics? Timm: The biggest misconception is that all bioplastics biodegrade or compost. Bio-based PE derived

from renewable bio-based building blocks does not compost. Surveys indicate most consumers associate “doing the right thing” with recyclability, not reducing GHG or using renewable feedstock in the manufacture of plastics. Most of the time recycling has nothing to do with whether a plastic is bio- or petrochemicalderived. In some cases bioplastics can cause harm to traditional plastic recycling streams like PET.

F&BP: What are the realities of this market? Timm: There are a number of major market realities: a. First, there’s tremendous confusion surrounding materials, technology and marketing claims. The consumer clearly wants sustainable products. However, when faced with real-world decisions on how to achieve that goal there are confusing marketplace signals. Some packaging companies blatantly mislead consumers with false claims while other companies have tried using bioplastics only to be disappointed by their fitness in use or processing difficulties. Additionally, performance expectations have not been meet in all cases, especially when it comes to compostability. Consumer expectations and actual performance realities have not aligned, creating disappointment. b. There is inadequate end-of-life (EOL) consumer understanding and expectations around disposal. Many consumers believe biodegradation is simply throwing a bottle out the car window and having it degrade in a relatively short period of time. This is far from reality. The misunderstanding around landfills also leads to confusion. Plastics, including bioplastics, for the most part do not degrade in landfills. A better matching of bioplastics degradation properties and consumer expectations is needed. c. End-of-life disposal programs need to be developed on a national level. The hodgepodge of local, city and state regulations around recycling and plastic usage and disposal only adds to the confusion. For example, incineration should be part of the public disposal debate, but it rarely is in the U.S. d. The whole public understanding of green-housegas (GHG), carbon footprint, “new” carbon vs. “old” carbon layered on top of a discussion on sustainability and the addition of bioplastic applications has been too great an educational burden for the consumer. A simple example: Do the numbers inside the recycle chasing arrows symbol appearing on most plastic packaging identify the type of plastic or that it is recyclable or both?

We need to have a collective common understanding in order to make informed decisions.

F&BP: What are some of the reasons there seems to be so much confusion in this market and to what degree are packagers responsible? Timm: The reason confusion abounds is because there are no common acceptable standards or definitions for bioplastic usage, disposal and claims. The whole plastic industry and the subset of the packaging industry is partly responsible for this confusion. Although the term “sustainable packaging” has been used in the marketplace since early this decade, most people in the industry today still cannot define what sustainable packaging is according to the Sustainable Packaging Coalition (SPC) definition.

The reason confusion abounds is because there are no common acceptable standards or definitions for bioplastic usage, disposal and claims. – Jeff Timm, Timm Consulting

Also, conflicting claims about end-of-life scenarios are prevalent. Examples: “What actually goes on inside a landfill? Do products really degrade in a landfill or are they simply entombed?” However there is a light at the end of the tunnel. The Consumer Goods Forum-Global Packaging Project (GPP), Federal Trade CommissionGreen Guides, ASTM, UL, USDA and other groups are slowly setting standards to bring order to the chaos. The collective goal taken from the introduction of the GPP Report is to bring “common definitions and principles, agreed metrics and indicators and guidance on usage”. In my estimation, this has taken far too long. An example of this is why are municipalities all over this country trying to regulate and ban the use of plastic packaging? Why hasn’t the plastic industry stepped up and presented the value proposition for plastics? They saw this coming years ago.

F&BP: Other than requiring regulatory approval for food contact, are there any differences in bioplastics selected for applications in food and beverages than for other end-use markets?

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MaterialsTechnology Timm: The biggest requirement for food packaging is keeping the ingredients safe from outside contaminates and spoilage. To do this, barrier properties are probably the most significant requirement of the food and beverage package. Additional requirements are printability, machinability, and a good balance of physical properties, e.g. toughness and puncture-resistance. The major requirements for many nonfood and beverage durable applications are heat resistance and impact resistance. These are areas where many biodegradable bioplastics suffer, though there are polyhydroxyalkanoates (PHAs) and additive packages employed that increase temperature and impact limits. Drop-in bioplastics discussed

shift is also occurring with commercially available biobased polyethylene (PE). Technology is also commercial or near commercial for bio-based nylon, polypropylene, polystyrene, acrylic and many other traditional plastics used in the packaging industry. This does not signal the death of biodegradable bioplastics. It is just the dawning of the next stage of market development after the early stage market confusion and scramble to match food and beverage applications requirements with the bioplastic properties and attributes. There will always be opportunity for all bioplastic families of products. Just like in the traditional petro-plastic industry, one product does not fulfill all application requirements.

TOP 5 WEB RESOURCES FOR BIOPLASTICS FOR PACKAGING Bioplastics expert Jeff Timm offers the following as his Top 5 most useful websites for those developing or using packaging that includes bioplastics. SUSTAINABLE PACKAGING COALITION, A PROJECT OF GREENBLUE: www.greenblue.org and www.sustainablepackaging.org FEDERAL TRADE COMMISSION (FTC): www.ftc.gov/green CONSUMER GOODS FORUM-GLOBAL PACKAGING PROJECT: www.ciesnet.com and globalpackaging.mycgforum.com A full list of Timm’s 12 suggested websites can be found here: http://cot.ag/iRDNLs Source: Timm Consulting

earlier would have the same physical properties as their petro counterparts. Finally, injection molding is the least used thermoplastic converting process for the packaging industry compared to extruded and blown film and extruded and cast sheet for thermoforming. As a result of these processing differences, specifications like green strength, draw down, lower melt indexes, etc. are required for packaging applications and may not be necessary for injection molded durable applications. Additionally attributes like clarity and printability (surface features) could be different.

F&BP: What do you see as the biggest opportunities for bioplastics within the food and beverage market? And where do you see this market going? Timm: The biggest opportunity that has only emerged over the last 18 months is the bio-based PET beverage bottle. Both Coke Cola and Pepsi have different bio-based bottle technologies to replace their current PET bottles. These two companies have clearly indicated their marketing plan is to embrace recyclability rather than biodegradability as their disposal method of choice. This is a huge shift away from most early packaging applications that were focused on biodegradability as the end-of-life outcome. If successful, the impact of this shift will create huge market opportunities for bioplastic drop-ins as replacements for petroleum-based materials. The same 42

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F&BP: What’s your biggest piece of advice for packagers? Timm: The most important piece of advice I can give when considering using a bioplastic is to match the packaging requirements to the bioplastic properties. I don’t mean just the physical and mechanical properties of the bioplastic. Consideration must be given to the end-of-life scenarios: What do you want your customer to do with the package once the contents are gone, and what do you tell the consumer in the shopping aisle about the package claims-compostability, recyclable, percent recycled content, etc? These claims must be supported by data recognized by the industry. It is a very exciting time to be in the bioplastics market. As suppliers do a better job matching properties to packaging requirements and consumers are more educated, the industry takes control of “speaking points” around plastics’ role in society and a national program hopefully emerges to address end-of-life issues the industry can only grow. F&BP Jeff Timm has spent more than 35 years in the plastics industry with Fortune 100 companies in positions ranging from sales and marketing research to leadership roles in product and business management and business development. The last six years have been as Managing Principal for Timm Consulting, Franksville, WI, a plastics business and market development consultancy focusing on bioplastics. Timm can be reached at [email protected] or www.linkedin.com/in/jefftimm.

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T EC H N O L O G Y A PPL IC ATION

BOTTLE-LEVEL TRACEABILITY AT ALLAGASH BREWING Consumer interest in craft beers, or microbrews, has exploded—but getting them in the hands of consumers at the beer’s best date is all about timing. raft beers are on the rise in America, and their creative methods and flavor varieties are designed to keep customers both interested and thirsty. Industry wide, craft brewers sold an estimated 9,115,635 barrels of beer in 2009, and 9,951,956 barrels in 2010. Allagash Brewing Co., Portland, ME, which has proudly produced its distinct beers since 1995, is a perfect example. Allagash brews 16,000 barrels of beer per year—or almost 500,000 gallons, with much of the beer bottled. With its wide variety of traditional Belgian-style beers and experimental brews that taste best at different times, date coding on individual bottles is of the utmost importance. It is critical that the brewer know when a beer was produced, so that consumption can happen at the beer’s peak. The question is, how long has their beer been sitting on the shelves? Is it the right timing for that particular beer so that the customer tastes it when it is at its best? Date coding allows their representatives to know how long a beer has been hanging around, and to make the appropriate adjustments. Allagash uses Markem-Imaje traceability solutions for its printing and coding needs. Before finding MarkemLaser coder enables Allagash Imaje date coding technology, Allagash’s 12-oz bottles Brewing to date were only coded on the exterior of 24-pack cases, which code its craft the stores would then break down into six packs of four beers at the bottle bottles. Large format bottles at Allagash were marked level to benefit simply with a batch number embossed on the label. This company sales representatives system wasn’t as specific as Allagash needed in order to and consumers. trace their beers, and it didn’t contain a date. After experimenting with various types of ink jet and FOR MORE INFORMATION laser printing, the Allagash Markem-Imaje team along with Markem770-421-7700; www.markem-imaje.com Imaje representatives found that the SmartLase 10 watt Zajac, LLC CO2 laser printer solution 207-286-9100; www.zajacllc.com best suited their needs for

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printing on glass beer bottles. This stainless-steel encased coder is small in size, yet durable—perfect for a brewer’s production space. Markem-Imaje technicians were able to customize the SmartLase printhead so that it could work with the existing labeler. Since turning to Markem-Imaje technology, all bottles produced by Allagash are date coded. Date coding allows Allagash representatives to keep an eye on the products in the stores and help to make sure that customers are getting the beer at the best possible stage in the beer’s development. Allagash found Markem-Imaje date coding systems through its relationship with Zajac, LLC, from which g y much of its production p q p Allagash buys equipment. It recommended Markem-Imaje for date coding after having collaborated with the company successfully in the past. Now looking for that special seasonal brew or finding a favorite Allagash White at its flavor peak is easier than ever—for both consumers and the Allagash team, who continue to make providing a quality product to their customers a priority. F&BP

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SUPPORT

RESPONSIBLE

FORESTRY.

When you consider that only 10% of the world’s forests are certified, we have a long way to go. The good news is that there are a number of credible forest certification programs. And each one, including SFI, encourages responsible forestry. When you buy or source SFI-labeled paper, packaging or wood products, you increase demand for responsibly managed forests. So look for the SFI label, and source wisely. For more on forest certification and what you can do, visit www.sfiprogram.org.

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IN D U ST RY I N SI G HTS

IMPROVING FOOD TRACEABILITY THROUGH ITEM-LEVEL CODING While traceability mechanisms cannot prevent contamination, they are clearly essential to limiting the fall-out when it happens. / by LEE METTERS, Strategic Product Director, Domino e’ve seen a sea change in coding and marking over the last decade. In that time the technology has evolved from regulatory device (printing the “sell by” date on foodstuffs, for example), to supply chain essential (helping retailers keep the shelves stocked), to its new role as the consumers’ window onto the history of pen to be holding whatever product they happen nger belongs in their hand. Coding no longer heir suponly to manufacturers and their ms, has ply chains; everyone, it seems, an opinion on the subject. dIn truth, it isn’t the codd ing per se that has grabbed Kerry Foods’ butter pack is an public attention, but the example of the traceability that it progrowing number vides. Periodic food safety of products with “scares” have contributed 2-D bar codes that to its raised profile; in June prompt consumer interaction and 2008, a recall in the U.S. can play a role in highlighted inadequacies product traceability. in food traceability after n outbreaks of salmonella in ere New Mexico and Texas were mainitially blamed on raw tomatoes. At one point, the U.S. Director of Food Safety admitted “we may not ultimately know wheree these [toomment was more matoes] came from.” The comment alarming in hindsight: a month later, the outbreak was traced to jalapeno peppers! Small wonder that in the same month an AP-Ipsos poll found 86% of Americans support produce labeling that enables “traceback”, or that in January this year President Obama signed into FOR MORE INFORMATION law the Food Safety Modernisation Act (FSMA), the most Domino Printing Sciences significant update of U.S. 847-244-2501; www.domino-printing.com food safety law in decades. While traceability mecha-

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nisms cannot prevent contamination, they are clearly essential to limiting the fall-out when it happens. There are, however, different “flavors” of traceability. A widely-used system is the “one up, one back” case-level solution. Every case is allocated a GS1-standard 14-digit GTIN and lot code, which each trading partner in the supply chain records when they receive the case (“one back”) and when tthey send it onward (“one c down”). If contamination occurs, got ing back through the databases will identify the source, and reversing pr the process facilitates a recall. T Traceability becomes more com complex where cases of produ are often broken up. duce T solution is to add anThe o other layer of traceability, t time at the item level. this If you question just how c comfortable consumers a with the smartphoneare as as-scanner idea, research by Deloitte in 2008 found that 56% of people wanted to be ab able to trace the origin and product production date of food in this way. Since then, consumers have become familiar with the Quick Response codes The smartphone sm (QR) codes. will also be the scanner of choice for the Chinese government’s massive coding project to combat the country’s rampant counterfeiting problem. The goal is to apply a linear bar code to every product sold, so that consumers can instantly verify its authenticity. After a slow start, the initiative is gaining traction. The combination of consumer pressure and FSMAstyle legislation in other countries could mean that we had better get used to seeing more of our fellow shoppers scanning their tomatoes. Or should that be their jalapenos? F&BP

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EVERY THING AND EVERYONE YOU NEED IN JUST ONE SHOW. Advanced technology, innovative packaging, green transportation, food safety solutions, expanding markets, sustainability, enhancements in plant operations, new ingredients — all make up the universe of hot trends, education topics and exhibitors that will highlight the 2011 International Dairy Show. Everyone who has a stake in the dairy industry will be on hand to share ideas to streamline processes and improve plant performance.

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SupplierNews

07/11

NEWS / TECHNOLOGY / PEOPLE

IT’S NOT SILGAN CONTAINERS: GRAHAM PACKAGING TURNS TO REYNOLDS HOLDINGS INSTEAD As with many media outlets, we have to update a story reported some weeks ago (“Silgan Buys Graham Packaging”, April 2011) because of an unexpected turn of events. raham Packaging Co. Inc. announced in midJune the signing of a definitive merger agreement under which Graham Packaging will be acquired by Reynolds Group Holdings Ltd. in an all-cash transaction for $25.50 per share, or a total of approximately $4.5 billion including assumed indebtedness. The deal is expected to close in the second half of this year. Graham Packaging also announced that it terminated the previously announced merger agreement with Silgan Holdings Inc. Graham Packaging’s Board of Directors has determined that the transaction with

G

Reynolds constitutes a superior proposal as compared to the transaction with Silgan even after taking into account certain adjustments to the terms thereof proposed by Silgan during the match-right period. As a consequence, Graham Packaging’s Board of Directors has withdrawn its recommendation with respect to the merger agreement with Silgan. Graham Packaging is paying Silgan a $39.5 million termination fee in accordance with the terms of that agreement.

PRO MACH TO BE ACQUIRED BY THE JORDAN COMPANY ro Mach, Inc. (www.ProMachInc.com) announced in mid-June a definitive agreement under which The Resolute Fund II, L.P., an affiliate of The Jordan Company, will acquire the company from Odyssey Investment Partners, LLC. Financial terms of the transaction were not disclosed. Pro Mach is a leading provider of packaging machinery solutions and related aftermarket products and services to multinational clients in the food, beverage, household goods and pharmaceutical industries. “We are excited to be partnering with The Jordan Company,” says Mark Anderson, CEO of Pro Mach. “The Jordan Company team has an impressive track record, understands our business and shares our vision for the future of the Company. We look forward to working closely with them to pursue our strategic objectives and continue our strong customer focus.” “Pro Mach has a proven track record of solving its customers’ complex marketing and operational challenges, and that success is reflected in its stable, global customer base,” says Brian Higgins, principal, The Jordan Company.

P

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“The management team has transformed Pro Mach from a portfolio of individual brands to an integrated operating company with a unified market strategy. We look forward to partnering with Mark Anderson and the Pro Mach leadership team to continue building the premium brand in the North American packaging machinery industry.” Craig Staub, a Managing Principal of Odyssey Investment Partners, says, “We are proud of what Pro Mach has accomplished in recent years and the success of our investment. The Company’s excellent management team has consistently delivered superior products and services to its customers. We wish the Pro Mach team continued success under The Jordan Company’s ownership.” Completion of the transaction is expected in July 2011. Pro Mach companies include Allpax, Axon, Brenton Engineering, Fowler, ID Technology, Labeling Systems Inc. (LSI), Ossid, Roberts PolyPro, Orion Packaging, Rennco, Shuttleworth, and Wexxar. Pro Mach is headquartered near Cincinnati, OH, with manufacturing facilities and offices throughout the United States and Canada.

W W W . F O O DA N D B E V E R A G E PA C K A G I N G . C O M

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SupplierNews

HEATGENIE FORGES STRATEGIC ALLIANCE WITH CROWN HOLDINGS elf-heating technology developer HeatGenie (www. heatgenie.com) and packaging products supplier Crown Holdings, Inc. (www.crowncork.com) have signed a joint development agreement to integrate HeatGenie’s patented high-efficiency, solid-fuel technology into food and beverage packaging. Under development since 2008, HeatGenie technology heats beverages or foods within the package. To activate, consumers simply press a button at the bottom of the package. The compact modular heat source at the base of the package is about the size of a small tea candle and weighs just 1.33 ounces. The common, food-safe material within the heater provides high con-

S

B R I E FS As part of a $30 million expansion, Winpak Portion Packaging, Inc., will be building a new manufacturing facility in Sauk Village, IL. The new facility will be built on 28 acres and will initially have 267,000 square feet of manufacturing, warehouse, printing, and office space. Expected to be operational in Q1 2012, it will be a short distance from the current South Chicago Heights, IL, plant. Triangle Package Machinery Co. has appointed Kim Magon to the position of marketing manager. Magon has held inside sales and marketing positions with several leading packaging OEMs, and was most recently marketing manager with a cartoning OEM in the Chicagoland area. Triangle also has named Jay Leveroni as its new southeast regional sales manager. Leveroni brings a diversified background with extensive experience in packaging equipment sales that spans over 18 years in the baking industry. Carlyn Bargemann has been appointed west region sales manager for Dorner Mfg. Corp., Hartland, WI. In her new position with Dorner, Bargemann will be working with sales channel partners and key accounts to grow the company’s industrial and Bargemann sanitary conveyor business. She resides in Huntington Beach, CA. Intelligrated, Cincinnati, a North American-owned automated material handling solutions provider, names Chris Barber as vice president, southern operations, distribution & fulfillment. Based out of Intelligrated’s Atlanta location, Barber will oversee sales, concepting,

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tent energy and heat at a controlled rate. “We’ve looked at a lot of different self-heating technologies and we think this is the right one,” says Daniel Abramowicz, executive vice president of technology and regulatory affairs at Crown. “Together, HeatGenie and Crown have the expertise and resources to bring this unique technology to the food and beverage industry.”

estimating, engineering, and project implementation services for the company’s distribution, warehousing and fulfillment clients in the region. Walter Herrmann Herrmann, founder and partner of Herrmann Ultraschall, announced the forthcoming celebration of the company’s 50th anniversary. The celebration is planned along with technology days seminars on November 3-4, 2011. The company maintains operations as Herrmann Ultraschalltechnik GmbH & Co. in Karlsbad, Germany, and as Herrmann Ultrasonics, Inc. in Bartlett, IL. Inland Label, La Crosse, WI, one of the largest familyowned label printers in North America, received a 2010 Packaging Materials Supplier of the Year award from MillerCoors. The award recognizes Inland’s contributions in areas such as quality, service, competitive cost, safety, corporate responsibility, and innovation. Inland was honored at the first annual MillerCoors Supplier Recognition awards in May at MillerCoors’ headquarters in Chicago. Matthews Marking Products has appointed Liz Churchill as vice president of sales & marketing effective in April. Matthews Marking provides custom and standard industrial marking solutions for applications in a wide range of industries, from packaging and plastics to construction and metal. HMPS, a leading Australian packaging machinery manufacturer, has teamed up with Delkor Systems, Inc. as the exclusive distributor for Delkor cartoning equipment in Australia and New Zealand. Axon, Raleigh, NC, a division of Pro Mach, has much to celebrate during its 20th anniversary year, including a 25% increase in sales, new machinery, new product demonstration area, new logo, and revamped website.

W W W . F O O DA N D B E V E R A G E PA C K A G I N G . C O M

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SupplierForum NEW CASE PACKER OFFERS UP TO 30% SAVINGS ON CORRUGATE Polypack has built a new wraparound case packer to complement its existing line of shrink wrap equipment. When compared to traditional RSC cases, the new WR Case-Packer offers up to 30% savings on corrugate. Rather than using prefolded and glued RSC cases, the new WR case-packer uses die-cut corrugate blanks and forms them by first loading the product onto the blanks. The end result is a tightly packed case that offers support for thin chipboard cases encountered in the food, beverage, dairy, personal care and consumer products industries. The new wrap around case packer has multi-layer packaging capability, servo-controlled gantry product loading system, a color touch screen interface, automatic changeover adjustments and can accommodate up to 20 cases/min. Poly Pack Inc. 727-578-5000; www.polypack.com

CHEMICAL DOSING ADDED TO RINSE RECOVERY Fogg Filler has added chemical dosing to its existing Rinse Recovery System that accurately heats and blends chemicals for sanitizing. This feature mixes the chemical of your choice to the proper concentration. Then it heats it to the prescribed temperature and maintains it as needed. These actions are controlled and operated by the PLC. This feature will ensure that the rinsing/sanitizing system always maintains the proper pressure and allows for custom blending requirements. Fogg’s Rinse Recovery System coupled with the new Chemical Blend feature provides a standalone Chemical Blend Skid designed for the customer’s precise rinsing requirements. Together these features will help save 96-98.5% of fluid losses for a new or existing line. Each system is customized to meet your sanitation needs. Fogg Filler 616-786-FOGG; www.foggfiller.com

DUA DUAL-HEAD INK JET PRINTER APPLIES CODES ON TWO SITE SITES SIMULTANEOUSLY The Videojet® V 1610 Dual Head small character continuous ink jet printer has that can run independently or in tandem to meet a wide range two printheads p This can include applications that require printing on two of applications. ap locations on a single product, or on multiple lines on a traversing unit. It can locat print up to five lines of high-resolution code per printhead at speeds up to 960 feet per minute for applications such as food and beverage packaging. includes IP65 washdown and dust protection that allows for The printer p superior environmental protection without plant air. Additionally, the vapor supe recovery system on the Videojet 1610 Dual Head printer reduces solvent recov consumption and provides longer runs before fluid change. cons uses the exclusive Smart Cartridge™ fluid system featured on all printers It u in the Videojet 1000 Line. By reading the embedded microchip, the printer identifies whether compatible fluid has been installed to prevent errors in ink ident types or switching make-up and ink fluids. Saving time and money, the Smart typ Cartridge fluid system is designed to drain completely, wasting no residual fluids. The needle-and-septum design eliminates the need for operators to pour ink, preventing fluid spillage and waste. Videojet Technologies Inc. 800-843-3610; www.videojet.com

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OXYGEN SCAVENGING SACHETS AND DISPENSERS At the 2011 IFT Annual Meeting & Food Expo, Multisorb Technologies highlighted active packaging technologies and solutions, including their recent improvements in the MAPLOX™ FreshPax CR oxygen scavenger for ground beef. Solutions include: • Ground beef packaged with or without tri-gas • MAPLOX™ for value-added fresh meats products such as kabobs and fajitas • PolyFresh™ active film for a built-in solution • FreshCard™ for baked goods, processed meats, and a wide variety of other food and nutritional products. Multisorb also showcased their systems approach to sorbent dispensing, a system which easily integrates into existing packaging lines and offers a variety of options. The APA-1000 FreshPax™ and StripPax™ system can dispense up to 135 packets per minute. The APA 3500 FreshPax and StripPax system has two dispensing heads and auto spool feed allowing for continuous operation. The APA-3500 dispenses 60 packets per minute. The APA-5000 FreshCard dispensing system uses stacked feeding and can dispense at a rate of 200 cards per minute. Multisorb 716-824-8900; www.multisorb.com

It’s better with vision Matrox Iris GT smart camera keeps a close eye on your packaging process Are your containers defect-free, properly filled and accurately labelled? Are your barcodes and 2D codes up to standard? Is your lot and expiry information correct? With the right smart camera-based vision system the answer is always yes. The Matrox Iris GT smart camera with Design Assistant software has what you need to tackle your next packaging project with confidence.

Register for a FREE smart camera workshop www.matroximaging.com/workshop

matroximaging.com 1-800-804-6243 / +1-514-822-6020 [email protected]

SupplierForum NEW GENERATION STAINLESS STEEL CONVEYORS FlexLink launched new stainless steel conveyors at Interpack 2011, available in three widths, 85, 180 and 300 mm, which are suited for handling products in production and packaging lines within the Fast Moving Consumer Goods (FMCG) and segment. Following the previously released new generation X85 conveyors in aluminum, the designations for the new stainless steel conveyors are X85X, X180X and X300X. The capacity requirement for the 85-mm wide version is 120 m/min and the wider versions can run up to 80 m/min. They are also considerably less noisier than industry standards. The design is fully modular, from the individual component up to the complete conveyor. They are available in three versions: Washdown, which is the standard and easy to clean; wipe off, the version with covered sides and no slots; and covered return chain, which is suited for applications when the requirements of cleanliness are extra high. New robust conveyor supports and guide rails systems also debut with the conveyor platform. Standard drive units are of IP65 class with food-grade oil. FlexLink 610-973-8268; www.FlexLink.com

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IMPROVED CONTROLLER RELEASED FOR INK JET PRINTERS The Marksman HHI (Hand Held Interface) Controller is designed solely for use with its SoloSeries Thermal InkJet product line. The Marksman HHI pulls all the benefits from the Marksman Duo IPC Controller and puts them into a lowercost, handheld package. The Marksman HHI features a large 7-inch widescreen touchscreen display and thumb-friendly keyboard that allows for improved message creation and software usability. FoxJet 800-369-5384; www.foxjet.com

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100% Food-Focused Technology

STRETCH WRAP FILM SYSTEM RAISES EFFICIENCY ITW Muller introduces its OctoMAX™ system to help manufacturers increase productivity and decrease costs. Available as an enhancement to the ITW Muller Octopus line of new stretch wrap equipment or as a retrofit to most existing machines, OctoMAX utilizes proprietary hardware and software to monitor and measure equipment and film effectiveness. The system enables customers to maximize the performance of their machine by making sure the optimal settings, prestretch gears, number of wraps and amount of film are set at all times, and also maximizes savings by monitoring the performance of their film. The system provides real-time simple and actionable information. If something goes wrong with either the machine or film, the system is connected through the internet and will immediately notify the user via e-mail. The information is also available on the enhanced operator interface or HMI display. Users can visit their personal online portal to view historical data and download reports.

THE GLOBAL FOOD EQUIPMENT AND TECHNOLOGY SHOW™

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DataWatch

BIOPLASTIC TO DOUBLE BY 2015

23

295

2010

2015

0

Biodegradable (incl. not biobased) Durable (biobased)

318

Total capacity

724

714

2009

2008

296

6 174

180

428

T

GLOBAL PRODUCTION CAPACITY OF BIOPLASTICS

996

he global capacity for bioplastics is predicted to pass the one million tonne mark in 2011 and more than double from 2010 to 2015 (Ed note: A tonne is 2,204 lb, or about 10% more than the U.S. ton). That’s according to a current study presented by the industry association European Bioplastics in cooperation with the University of Applied Sciences and Arts of Hanover at the interpack trade fair in Dusseldorf, Germany. From a figure of around 700,000 tonnes in 2010, the production capacity for bioplastics will increase to a predicted 1.7 million tonnes by 2015. The million tonne mark is close, and will likely be passed by the bioplastics industry within this year. A further change is evident in the composition of global production volume. In 2010, the bioplastics branch primarily produced biodegradable materials, totaling around 400,000 tonnes. This ratio will be reversed in the coming years. “Our market study shows that biobased commodity plastics, with a total of around one million tonnes, will make up the majority of production capacity in 2015. Biodegradable materials will, however, also grow substantially and will reach about 700,000 tonnes by then,” says Professor Dr. (Eng.) Hans-Josef Endres of the University of Applied Sciences and Arts of Hanover.

500

1,710

1,000

1,500

2,000

1,000 metric tons

Source: European Bioplastics | University of Applied Sciences and Arts Hanover (May 2011)

Essential to this rapid growth is the swift expansion of bioplastics into an ever-increasing number of applications. From packaging to car manufacture to toys, bioplastics are in demand as never before.The growing group of durable biobased bioplastics appeals strongly to the packaging market, for example. More information is available at www.european-bioplastics.org.F&BP

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F O O D &B E V E R A G E PA C K A G I N G

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