03 2013 no.
JUICE
S P E C I A L
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In this issue By The Industry – For The Industry
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Juicing Up For The Recovery
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Powerful Platform For Growth
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REWE Volumes Are Growing
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Cracking New Look For Cracker Juice Drinks
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Beet It Hits UK Shelves In Pure-Pak® Cartons
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Wesergold – A Success Story
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Fruitapeel Launches First Aseptic Pure-Pak® Cartons For Juice In UK 20 Albi To Premiumize Packaging
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First UK Carton Recycling Facility Opens
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The Power Of Climate Savers
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Published by Elopak AS Group Headquarters. Postbox 418 Skøyen, 0213 Oslo, Norway. Tel: +47 31 27 10 00, Fax: +47 31 27 15 00 Editorial Team: Jutta Pinnerød, Ingrid Lille Thorsen and Stephanie Sergeant (Research) Design: LEO October 2013
Juice Special – ELOTALK NO. 3 | 3 |
| Elotalk Feature |
By the Industry
– For the Industry The story behind the first Juice Summit
“Get involved in your industry” is one of the main messages from the European Fruit Juice Industry Association (AIJN). The Association, founded in 1958, represents the EU juice industry, defending and promoting the interests of both processors and packers. It is a message set to be repeated at the first ever Juice Summit by Andrew Biles, AIJN President. Andrew, along with AIJN General Secretary Jan Hermans, spoke to Elotalk, about the story behind the summit, its objectives and their aspirations for the event. "In 2008 the AIJN organized a big symposium to celebrate its 50th anniversary. Following the success of this one day event we added a business session onto our annual summer general assembly which was opened to all companies active in the juice industry. The annual business sessions became increasingly popular year-by-year and the logical step was to turn these sessions into a full Juice Summit,” explains Jan Hermans.
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“The Juice Summit is powered by AIJN but co-organised with IFU International Federation of Fruit Juice Producers, SGF – Sure-GlobalFair, and EQCS – European Quality Control System. It is important to mention that we work closely together and they have contributed significantly to content and structure,” adds Andrew Biles. “The main objectives of the Juice Summit is to bring the industry together and to create a forum where all stakeholders, whether they are bottlers, growers, raw material or packaging suppliers or from the European Commission, can come together and discuss trends, opportunities and challenges for the juice industry - and what to expect over the next 12 months,” continues Andrew. “With our members including the national associations of 18 member countries, the AIJN is the voice of the industry at EU level. As such we attract the major decision makers in
the industry and you don’t often see that with other industry events. Additionally by having three coorganizing associations we also involve their membership in the event which for example in the case of the SGF brings in worldwide raw material suppliers,” says Jan. “The AIJN has represented the EU fruit juice industry for 54 years – therefore this event is organised by the industry - and for the sole benefit of the industry. Also remember that the AIJN is a non-profit organisation, any surplus we eventually make is put right back either into the summit itself or into industry projects,” Andrew mentions. Andrew Biles explains how the agenda is devised: “A group of industry leaders – the AIJN board of directors determined the program. It is very much based on what the Association is working on now – the needs and challenges of the industry. We have tried to cover everything from ‘crop to glass’.
Juice summit, Brussels 01.–02. october 2013
| Elotalk Feature |
We were clear that the agenda has to reflect what is actually happening now in the industry because our delegates are not coming for a history lesson!” Jan adds: “There is a strong focus on market conditions, trends, legislation and sustainability and of course on the opportunities to promote the consumption of our products.” Jan Hemans describes the rationale behind the post-summit seminar: The Fruit Juice CSR Platform: “Corporate Social Responsibility is one of the major challenges the industry has to face right now. The Platform’s main goal is to give greater visibility of CSR activities by individual companies and to inspire and encourage good practice by all juice stakeholders. “This is an integral part of the conference, and also demonstrates to policy makers in Brussels how the juice industry understands the importance of responsibility and sustainability. It will certainly stay on the agenda in the future,” he adds. “The CSR session was put together with, approved by and partly funded by the EU. So this is a good example of the AIJN bringing together the industry and the Commission on focussed projects and good practice,” states Andrew. “I hope that by raising awareness of the topics at the core of the industry and what we have to collectively do, people will realise that being part of an association and its common efforts is a clear benefit,” details Jan.
“Get involved in your industry and support it. I often use a JFK inspired phrase: “Ask not what your industry can do for you but what you can do for it,” adds Andrew. “There will be a second Summit. We are dealing with naturally evolving products and markets. There will be new opportunities every year. We will announce details of the 2014 Summit shortly,” confirms AIJN President Andrew Biles. “We welcome feedback as we have some ideas for the next summit such as including a technical session. We will expand and adapt according to what people tell us. Please send feedback to
[email protected],” concludes AIJN General Secretary Jan Hermans. “The Juice Summit is an ideal forum to gain insight into market trends and to bring the industry together,” adds Astrid Näscher, Marketing Director Region Europe. “Elopak is pleased to be a key sponsor of the Juice Summit and is looking forward to meeting our customers, juice partners and industry peers in Brussels. It is important for Elopak that we continue to support the juice industry with the best packaging concepts in terms of functionality and innovation to enable our customers to grow their brands; but more importantly to bring healthy, nutritious and delicious juice products to the consumer - safely and conveniently.”
Facts Andrew Biles, AIJN President
AIJN is the abbreviation of the original name of the European Fruit Juice Association: Association de l’industrie des jus et nectars de fruits et de legumes de l’Union Europeenne. The Association has kept the AIJN abbreviation because it is so well known and established with stakeholders and within the European Commission.
Juice Special – ELOTALK NO. 3 | 5 |
| AD Trend | Feature |
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| TREND FEATURE |
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The key thing is the volatility which, alongside extreme weather patterns creates uncertainty for all companies in the supply chain.›› Dominic Cakebread, Canadean’s Director of Packaging Services
Juicing up for the recovery As the first signs of economic recovery show in Europe, Elotalk spoke to Canadean’s Director of Packaging Services, Dominic Cakebread, to get a snapshot on juice in 2013 and an outlook to 2014 and beyond. “The overriding influence since 2008 has been the poorer economic conditions, resulting in juice consumption in many European markets being at best flat creating increased competition, lower margins and intense pressure on packaging to deliver brand differentiation at reduced cost. Only now are we beginning to see the early shoots of recovery, so for the moment the key trends of the past few years, persist,” explains Dominic Cakebread. Economic Factors Juice, like any other industry, has been at the mercy of economic factors and Mother Nature: • Oil prices continue to affect choice of packaging and processing with pack types that use a higher percentage of oil such as PET bottles affected most directly • The low forecast for the 2012-13 orange crop – 2-3% below previous year: Orange price rises resulting in fruit mix variations which consumers are demanding more of • The lower bearing tree count and the smaller predicted orange crops in Florida will put a strain on Brazil’s supply: this will keep prices high for the Europe which imports 80% of its raw materials from Brazil • Extreme weather in many parts of Europe in 2012 had a negative impact on juice consumption “It is not so much rising prices and poorer economics that cause problems; these factors are manageable if they are monitored closely and companies respond accordingly. The key thing is the volatility which, alongside extreme weather patterns creates uncertainty for all companies in the supply chain.”
Juice Special – ELOTALK NO. 3 | 7 |
| Trend Feature |
100% 90% 80% 70% 60%
FROM CONCENTRATE VS. VOLUME M LITRES From Concentrate Not from Concentrate TOTAL NFC Share
2008 14 749 1 689 16 438 10,3%
2009 14 051 1 685 15 736 10,7%
NOT FROM CONCENTRATE 2010 14 003 1 714 15 717 10,9%
2011 13 462 1 840 15 302 12,0%
2012 12 795 1 903 14 699 12,9%
2013F 12 487 1 931 14 418 13,4%
50% 40% 30% 20% 10% 0%
2013 FROM CONCENTRATE NOT FROM CONCENTRATE Consumer Drivers From the perspective of the consumer, although priorities may have changed, the long term consumer-side drivers (such as smaller average household sizes, increased urbanisation, more working women, greater mobility, less-formal consumption occasions and ageing population structures), have continued to exert an important influence. In Dominic’s view “The underlying consumer-side drivers have not fundamentally changed – they have just been tempered by the poorer economic conditions, pushing cost to the fore as consumers have become more selective and price-sensitive.”
Evidence of these drivers can be seen in juice consumption trends: • Health & Wellness remains of growing importance, but consumers seek better value for money by buying more through discounters or private label products • Concerns about sugar have brought about more low-sugar, lighter juices containing ‘natural’ sweeteners • Increased urbanization and mobility means trends toward on-the-go consumption have continued unabated • Cheaper concentrates (dilutables) and mixed flavour juices have grown, as consumers look for greater choice and savings • Some European consumers are choosing ‘value’ over ‘volume’ by buying lower volumes of premium NFC juice “In the From Concentrate (FC) vs. Not From Concentrate (NFC) contest the boundaries remain blurred but consumers are now becoming more aware of the differences,” says Dominic “There is a shift towards NFC
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because consumers still want promotional activity has also helped relative price,” adds Dominic.
quality and to lower their
100%
What’s next for private label vs. brand? 90% The proliferation of private label ranges has been a stand-out trend during the economic 80%downturn. Initially driven by the response of the supermarkets chains to rising 70% competition from the discounters, more recently this has prompted a response from the branded suppliers. 60% 50%
“Although private label growth varies, many consumers 40% have got used to buying retailer own-brands in recent years , so as the economy revives the key question is will 30% consumers return to brands?” asks Dominic. 20%
“Over time it looks like private label will continue to gain 10% share in-line with modern retailing, nevertheless the opportunity is certainly 0% there for brands as well and especially now.” 2013 Packs & Sizes BRANDED All of these issues have an important influence on PRIVATE LABEL packaging. In terms of pack sizes for example, there is continued polarisation: • On the one hand we have seen a rise in demand for large bulk family packs as consumers seek greater value for money and change their shopping habits and loyalties • On the other hand we see a rise in smaller packs both as a result of more ‘on the go’ consumption and a pack downsizing trend in some of the worst hit European markets
2013 | TREND FEATURE |
FROM CONCENTRATE NOT FROM CONCENTRATE
100% 90% 80% 70% 60% 50%
BRANDED VS. VOLUME M LITRES Branded Private Label TOTAL PL Share
PRIVATE LABEL
2008 11 489 4 950 16 438 30,1%
2009 10 554 5 178 15 736 32,9%
2010 10 500 5 217 15 717 33,2%
40%
2011 10 151 5 150 15 302 33,7%
2012 9 659 5 040 14 699 34,3%
2013F 9 452 4 966 14 418 34,4%
30% 20% 10% 0%
2013 BRANDED PRIVATE LABEL Convenience & Environment • Demand for more convenience and functionality (e.g. resealability, portability & better sealing, pouring and handling versatility) for on-the-go products • The rising number of branded and private label ranges creating demand for more distinctive shapes, sizes and features • Cost - ‘more for less’ • Environmentally friendly packaging “These drivers are much the same as always, the big difference now is that packaging companies are expected to deliver all these “added value” features for virtually no extra cost – ‘more for the same (or less),” says Dominic. This is manifested most clearly in prevailing ‘light-weighting’ trend – where all packs are being redesigned to use fewer materials to reduce costs and bring environmental benefits. Outlook “Combined with flat consumption, the cumulative pressure on packaging margins has been enormous, but as markets bounce back packaging companies should see and seek more opportunities,” confirms Dominic. “The proliferation of pack sizes and shapes is a feature of developed markets and we may see more as markets fragment and as interest in different pack formats increases. This trend favours packaging suppliers who can be flexible in their filling with speedy and easy pack size changes.
“I also expect to see more brand concepts tied in with ‘naturalness’ - matching sustainability, health and ethical issues,” explains Dominic. “The influence of the environment will also increase due to marketing and pressure from retailers, brand owners and their packaging suppliers. This only shows signs of amplifying within a recovery.” Elopak’s Director Market Intelligence, Uwe Tews adds: “The juice industry over the next few years will remain focussed on costs – optimization of costs to improve margins through lightweight packs, new product formulations, pack sizes and promotions. “Even in times of economic insecurity we see a trend towards NFC juices. But consumers are not willing to pay more and so price has to deliver value for money. Now that the difference in costs of raw materials between FC and NFC has reduced, NFC can offer a more competitive price. “There is a demand for packaging that supports NFC premium appeal. Consumer research shows the gable top carton scoring highest in terms of quality and naturalness compared to other cartons and PET bottles.”
➼ For more information about trends and market development, please take contact with Director Market Intelligence Uwe Tews at Elopak Headquarters in Norway;
[email protected]
Source: Canadean Geographic Coverage West Europe (16) Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, UK EAST EUROPE (18) Belarus, Bosnia, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovak Republic, Slovenia, Turkey, Ukraine
Juice Special – ELOTALK NO. 3 | 9 |
| Technology Update |
Powerful platform
for growth
Pure-Pak® Advanced Machine for Aseptic filling
Elopak has developed a new advanced machine platform for the filling of aseptic products. Utilizing on their in-house expertise and resources, the new filling machine platform features a unique modular design for exceptional flexibility in installation, operation and maintenance.
The first machine was validated at the Elopak Technology Center in Spikkestad, Norway. Further machine production will take place at Elopak’s new state-of-the-art manufacturing plant in Mönchengladbach, Germany. This new site was opened in 2011 and consists of an office section of 1850 sqm which is directly connected to the manufacturing hall of 4500 sqm. The impressive building will be the location for the further development, assembly and construction of the new Pure-Pak® Advanced filling machine (PPA).
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The machine is engineered to guarantee maximum hygiene throughout the entire filling process whilst maintaining the flexibility needed to respond to dynamic market changes. With a high speed capacity, filling up to 12,000 cartons per hour, this state-of-the-art technology offers highly efficient and full aseptic filling for juices in ambient distribution. The new machine gives the possibility to fill multiple Pure-Pak® carton sizes and configurations. It also offers a short automatic size changeover time of two minutes only.
The Pure-Pak® Advanced filling machine has been designed with an improved environmental performance with less water and energy consumption and minimal product waste. “With this new technology platform Elopak pursues the strategy of highlyfunctional packaging concepts,” says Elopak Executive Vice President Equipment Supply Ole Tjeldflåt. “It offers juice producers convenient and cost–attractive packaging solutions for their products.”
| Technology Update |
Facts
High machine output: • Capacity: up to 12,000 packs/hour Optimum space utilisation: • Semi-automatic blanks feeding • Integrated cap applicator • Small aseptic chamber • Fully automated cleaning system High flexibility: • Flexible change in design (i.E. Curve/non-curve) • Short automatic changeover time (max 2 min.) in sizes (3 arbritary, preset positions 500 ml, 750 ml, 1,000 ml) • Possible on running machine • No change of parts Minimal manpower required: • Machine operation with 1 person, trained by elopak • Semi-automatic sleeve feed magazine with 20 min. buffer Low service, utility consumption and operating costs Improved environmental performance: • Less water and energy consumption • Less product waste Integrated control cabinet: • Complete data recording MORE ACCURATE CAP SEALING: • Due to integrated cap applicator with ultrasonic welding
➼ For more information about Pure-Pak® Advanced filling machine contact Director Marketing Region Europe & Mediterranean Astrid Näscher;
[email protected].
Juice Special – ELOTALK NO. 3 | 11 |
| Product News |
REWE
VOLUMES ARE GROWING The most recent GFK figures point to a decline for juices and juice drinks in the German market for the first half of 2013. However, contrary to this, REWE volumes are growing. This is a result of an increasing number of stores, the new positioning with its strong focus on quality, price and variety, and the new optimized carton packaging.
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| Product News |
REWE Bio – Only best ingredients
REWE Beste Wahl – Making shopping easy
Having packaged its REWE Bio fresh milk in 1 litre Pure-Pak® cartons for many years, REWE re-launched its organic juice range of 8 flavours in the 1 litre Pure-Pak® Diamond Curve carton at the beginning of 2012.
The re-launch of REWE’s own brand the ”REWE Beste Wahl” (Best Choice) range was accompanied by a new and different carton packaging concept.
According to REWE; “The gable top carton offers the perfect brand fit for our organic products because it reflects naturalness, sustainability and freshness as well as its premium image. Add to that the outstanding functionality of the package with easy opening, easy pouring plus re-closing and you have consumer friendly packaging with high convenience.” REWE’s extensive organic range includes approximately 350 different products with national distribution in almost all 3.300 German REWE stores.
Facts REWE Group REWE supermarkets are part of the REWE Group, one of the leading trading companies in Europe. It is the third largest European food retailer operating nearly 15,500 stores throughout Europe. More than 327,600 employees work for the REWE Group, producing an annual turnover of nearly 49,7 billion Euros. In the German market it has a total turn over of 36 billion Euros and 226,000 employees. Since its foundation in 1927, the co-operative Group has developed through sustainable and long-term growth.
”With its large ”Beste Wahl” range REWE offers the high quality of well known brands but at lower prices. By the end of 2013 more than 850 food products will be switched from the existing REWE quality brand to ”REWE Beste Wahl” range. Since early 2013 the entire NFC juice range of 7 varieties has been re-packaged in 1 litre Pure-Pak® Diamond Curve cartons, with new flavours added. A new emotional design gives better brand recognition on-shelf and is further enhanced by the new packaging style. Clearly branded with the central square logo, the new design features an eye-catching pattern and the Curve of the gable top carton offers an additional attention-grabbing feature to shoppers. According to the slogan ”Making shopping easy” the new carton packaging offers more convenience: the big screw cap guarantees easy pouring and handling for the end consumer, and is in-line with the latest ”simplify life” trend.
➼ For more information about customer and market, please take contact with Sales and Retail Manager Petra Decker at our office in Speyer, Germany;
[email protected]
Juice Special – ELOTALK NO. 3 | 13 |
| Product News |
Cracking New Look for
Cracker Juice Drinks With its refreshing take on flavours and focus on quality fruit, Cracker Drinks Co. has enjoyed compound double-digit growth over the last few years*.
May 2013 saw yet further development with a new-look range of fruit juice drinks in 1 litre Pure-Pak® Curve cartons making its mark on Britain’s ambient shelves. This is the UK’s first aseptic, gable top juice to be filled on home soil. Using the strap line, ‘Blended to perfection’, the company prides itself on blending delicious crushed fruits with water to give consumers the perfect fruity juice drink. All juice varieties are not-from-concentrate and are packaged in 1 litre Pure-Pak® Curve cartons. Described as ‘all-natural’, they contain no artificial colours, flavours or preservatives and are labelled as suitable for vegetarians and vegans. Shorter way to the shelves Of note within the industry is that these are the very first products to roll off the UK’s only aseptic, gable-top filling line for juice, opened in May at Fruitapeel, in Llantrisant, Wales.
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Fruitapeel, one of the UK’s fastest growing producers of own label, branded juices and smoothies, fills Cracker’s range of five juice-drink products, two juice products, ‘Cranberry’ and ‘Still & Cloudy lemonade’ on an Elopak S-PS80 High Aseptic filling machine. Volumes are expected to reach six million cartons per annum. Having previously filled in Germany, The Cracker Drinks Co. outlined its desire to shorten the supply chain to Elopak, who introduced Fruitapeel as a co-packer. “To date, aseptic juice producers had to go outside mainland UK for gable top,” says Fruitapeel’s Managing Director, Terry Haigh. “Cracker saw the logistical benefits, both cost and environmental, and the opportunities of British-based production.” “For Elopak, it was important to establish a UK filling facility for ambient juice,” adds Michaela Schaller, Sales Manager Elopak UK Ltd. “The determination of Cracker to bring production to its home market made a business
| Product News |
plan possible. With the Fruitapeel line, our customers can significantly reduce both their costs and carbon footprints, opening up opportunities for market.” The ‘Cracker Pack’ Cracker Drinks were first filled in Elopak 1 litre Pure-Pak® cartons three years ago. “We have become strategically tied to the Elopak carton; nicknamed the ‘Cracker Pack’ which portrays our ‘fruit and refreshment’ message perfectly and is now synonymous with the brand,” continues Gavin Cox, Managing Director of the Cracker Drinks Co.
Production of Cracker Drinks in Pure-Pak® Curve cartons began in April, with products on-shelf across all of the UK’s main multiple retailers, plus the pub and restaurant trade, in May 2013.
Source: The Grocer, 2 June 2012, New Cracker Drinks MD Gavin Cox says ‘we can treble the business’, Vince Bamford. (http://www.thegrocer.co.uk/people/ people-news/new-cracker-drinks-md-cox-we-can- treble-the-business/229637.article#.UWve8LWsiSp)
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The added curved panel was chosen to give a different look to the pack. “You have to do something different to be noticed and our research demonstrated an overwhelming response from consumers and trade buyers who welcomed the Pure-Pak® Curve. It brings a premium point of difference to the ambient shelves,” says Gavin. “By introducing a new gable top shape, with a new design that maximizes the Curve® feature and the fresh image of the Pure-Pak® carton, the Cracker brand brings the impetus required to revive the ambient juice category,” adds Michaela. The new pack forms part of a comprehensive brand review by Cracker Drinks. The subsequent relaunch will include Cracker’s first social media campaign and PR activities to drive brand awareness.
Facts The new-look range includes; ‘Pineapple, Guava & Lime’, ‘Mango & Passion fruit’, ‘Apple & Lychee’, ‘Apple, Strawberry & Cranberry’, ‘Blueberry & Blackberry’, ‘Still & Cloudy L emonade’, and ‘Cranberry’.
Juice Special – ELOTALK NO. 3 | 15 |
| Product News |
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Beetroot juice has taken the sporting world by storm It is a great tasting product – made with 90% Beetroot and 10% fresh apple juice. ››
| Product News |
Beet IT hits UK shelves
in Pure-Pak® cartons In 2012, Elotalk reported on the huge attention that beetroot juice was attracting from athletes, elite sportspeople and the nutrition industry. Now, ‘Beet IT’, the UK’s leading beetroot juice brand from James White Company, hits shelves in Pure-Pak® cartons from September 2013. Beet IT organic beetroot juice is now available in 1 litre and 750ml Pure-Pak® cartons and filled on the UK’s first aseptic juice filling line situated at Fruitapeel’s plant in Llantristant, Wales.
athletes at the London Olympics and Paralympics mentioning beetroot juice shots as part of their nutrition strategies. As demand and sales continue to grow, James White sees the huge value of a UK packer.
100% Organic Beetroot juice has taken the sporting world by storm It is a great tasting product – made with 90% Beetroot and 10% fresh apple juice. 100% organic, Beet IT is free from artificial fertilisers and pesticides.
“Pressing more and more of our juice in the UK, it became vital for us to work with a UK packer. In addition to substantially reducing transport costs and CO2 emissions, Fruitapeel pack into full wrap around cases and palletise on UK pallets. These issues were critical for our decision to switch packers. We now have a UK organic certificate on the pack which is important for the UK market,” adds Lawrence Mallinson.
Beet IT is the best-selling brand from James White Drinks Company which has been producing fruit and vegetable juice for over 23 years, and is the UK’s first producer of beetroot juice. The decisions to switch production location to Fruitapeel in the UK and switch packaging to Pure-Pak® cartons had strong foundations and environmental considerations. “The gable-top carton is a personal preference from my New Covent Garden Soup days – of which I was a founder in 1987,” says Lawrence Mallinson, Managing Director. “The pack is a clear indicator of a superior quality product.” Sales of beetroot juice have been growing steadily since the publication of a research paper by the William Harvey Research Institute in 2008 that demonstrated a clear benefit for blood pressure from the natural dietary nitrate found in the juice. Subsequent papers from WHRI and the Univeristy of Exeter also show benefits of increasing stamina which has attracted much interest from the elite sports world, with many
Organic Accreditation “Fruitapeel is delighted to be working with James White Organic Drinks and began production of the Beet IT range in August 2013. James White is the second major brand to partner with Fruitapeel so far this year and the addition of the Organic Beetroot juice has resulted in Fruitapeel’s carton facility being awarded Organic status,” says Fruitapeel’s managing director Terry Haigh. “Our new aseptic capability along with the Organic accreditation is helping to shape new markets as well as driving the co-packing business in line with our ambitious growth plans for 2013 and beyond.” Beet IT is sold across the UK in all leading supermarkets and health retailers and is exported to Scandinavia and Australia. It is sold in other packaging formats, in particular as concentrated beetroot SPORT 7cl shots (0.4g) which have become a favourite with the sporting elite.
➼ For more information contact Market Unit Manager Clive Brown at the Elopak Office in Manchester;
[email protected] and go to our customers website for more information; www.beet-it.com. Sources: www.endurancesportsnutritionist.co.uk and www.naturalnews.com
Juice Special – ELOTALK NO. 3 | 17 |
| Product News |
Wesergold
A success story Elotalk asked Thomas Mertens, Managing Director Supply Chain riha-Wesergold group about their success, the market and the future.
N Thomas Mertens, Managing Director Supply Chain riha-Wesergold group
early 80 years ago Richard Hartinger sold his first juice product. Today the company is run by the family’s 3rd generation and is one of the most successful players within the European soft drink industry. What is its recipe for success?
Thomas Mertens: One important factor is that we are still a private enterprise. All the company’s stocks are held by Mr. Richard Hartinger junior. Another part of our success is our broad product portfolio which enables us to be present across the whole non-alcoholic market segment from mineral water, carbonated drinks, Schorles, iced teas, fruit juice drinks, nectars and juices from concentrate up to NFC juices. Moreover we have our own raw material processing and through our own plantations we have direct access to raw materials; this applies to our continental juices/vegetable juices such apple, black currant, sour cherry and carrots as well as for tropical fruits including pineapple and bananas in Costa Rica, Central America. Finally we are well established with six production facilities in Europe which logistically enables us to be close to markets.
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efficient way. In addition we follow our existing trade partners as a supplier of private label brands into new markets.
Most of your volume is for private label. How do you deal with the pressure on prices (raw material, energy, transport), the increasingly price sensitive consumer and the “best quality on discount level” claim? The enormous price pressure in combination with the over capacities in our industry can only be compensated by the continuous efficiency improvement. In this context it is very important, especially within European competitive environment, that the government offers the framework and conditions (e.g. regarding energy costs) that enable German production facilities to remain competitive. As previously mentioned, we secure raw materials partly through our own processing facilities and are therefore closer to raw material markets. This is how we also assure their quality. Furthermore all riha-Wesergold plants are IFS-certified, 14001 environmental management certified and have recently been certified within the framework of energy management.
In the first half of 2013 the juice consumption in Germany declined by 4.8 % compared to 2012. The trend has been negative for some years with consumers switching to water and Schorle products. The supposedly high sugar content of juice is often criticized. Has the juice industry lost connection with the market? What is being done to make juice attractive to the new generation?
Since 2003 the per capita consumption in Germany has consistently decreased, whilst other countries like Turkey are showing increases. You have production and sales affiliates in Poland, Spain and Switzerland, therefore will you focus more on these regions?
You are totally right where the consumption per capita and generation Y consumption is concerned, our industry has – especially for products with high juice content - a lot of work to do. We have to bring the young generation back to juice. Nowadays the positive aspect of juice such as its mineral and vitamins content are overlooked with focus on the fruit based sugar content. Here we clearly need to work on consumer education.
Our key market is still Europe where there remains room for further development. It is important for a privately owned company to use available resources in the most
Our juice is more than just sugar content. Unfortunately this fact is always negatively highlighted online and in other media. At association level we are working – with
| Product News |
limited finances- intensively on this subject. For example we are working with the Brazilian citrus industry on a health claim for orange juices. In addition we are discussing various other projects in order to re-vitalize this market segment. One measure of course is the Juice Summit in Brussels organized by the AIJN – European Fruit Juice Association. This is the event to meet all the most important representatives of our industry and where every Euro of surplus profit is invested by the AIJN back into the industry.
The riha group is distributing about 500 million litres of juices p.a., with more exported than in domestic markets. Your company is also working on regional concepts – are these credible for the consumer? We recognize significant changes in consumer behavior. In general there is a tendency towards carbonated products on one side, but also products with reduced calorie content are playing an important role. On the other hand regional concepts are having success in the juice market. We will see how this trend will develop.
Packaging is becoming more complex and more factors influence the choice of materials, format etc. Which aspects are most important for riha regarding choice of packaging? When discussing packaging we have to talk first about the enormous variety of different containers. The packaging portfolio of the riha group includes almost all relevant carton varieties from 0.2 l to 2.0 l sizes. Moreover we cover the whole product range of PET packaging from 0.2 l up to 2.0 l in both wide and narrow mouth versions, as well as
– even though it is decreasing – glass bottles (returnable and non-returnable) for different segments. The requirements for packaging are defined by the consumer; convenient handling and high degree of product safety. In summary – the consumer expects convenience and quality, which also reflects the positive market development of the gable top cartons from Elopak within the last few years. Our decision to switch the complete Wesergold range to gable top carton is based on the superior convenience advantages. And finally the various packaging systems are in continuous competition with each other. “Elopak has worked in close co-operation with the riha-group for over ten years. We have key focus on co-operative collaboration with all our customers – big and small, says Key Account Manager Dennis Hollmann. ”The closeness to customers, coupled with flexibility of our filling technology and uniqueness of our packaging give us ever new possibilities to deliver customized solutions. Working with a market leader and a forward thinking organization like the riha-group enables packaging strategies to reach their potential and maximize the benefits of the Pure-Pak® carton. We agree with Mr Mertens that the Juice Summit will establish itself as the forum for juice business and develop into one of the industry´s top events.”
➼ For more information about customer and market, please contact Key Account Manager Dennis Hollmann at our office in Speyer;
[email protected]
Juice Special – ELOTALK NO. 3 | 19 |
| Product News |
Fruitapeel launches first aseptic Pure-Pak® cartons for juice in UK Fruitapeel, one of the UK’s fastest growing manufacturers of own-label and branded juices and smoothies, partnered with Elopak in 2013 to launch the UK’s first Pure-Pak® aseptic filling line for juice. At a time of continued economic difficulties in Britain, here is one company delivering investment and growth.
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| Product News |
“Until now, to fill aseptic juices in Pure-Pak® cartons UK producers have had to go abroad adding to costs, logistics and increasing carbon footprints,” explains Fruitapeel’s Managing Director Terry Haigh. “We have invested in technology from Elopak that enables the UK production of aseptic juices and smoothies in Pure-Pak® cartons and brings business back to Britain.” An Elopak S-PS80 Aseptic filling machine was installed at Fruitapeel’s manufacturing site in Llantrisant, Wales in March 2013 and now provides cartons in 1 litre, 750ml and 500ml sizes; this is in addition to the current ESL (Extended Shelf Life) format which produces 1 and 2 litre and 250ml cartons. Unique technology can open up UK market “We have a good, established relationship with Elopak and they have supported us by adapting the new machine to our needs plus shortening lead and installation times,” adds Terry. “The machine has the flexibility to fill both aseptic and chilled products, enabling us to offer more capabilities to retailers and emerging brands.” “The machine fills chilled juices with longer life creating the opportunity for smaller retailers to produce own label ranges,” explains Terry. “Previous systems only allowed for large chilled volumes with short shelf life which could lead to high wastage and logistical nightmares for the smaller retailers. The capability with the new line, which has increased speeds of 40% compared to existing chilled filling lines, is opening up new markets for UK retail.” The machine is configured with three filling lanes as opposed to the one-lane machines currently in operation. “This means we can slow down production for increased quality control inspection but maintain the volumes,” says Terry. “The post filling cap application from Elopak for its Pure-Twist® cap offers added quality and integrity benefits increasing life.”
Production began in April with the co-packing of Cracker Drinks juices and smoothies, previously produced in Germany. “Logistical, cost and environmental benefits are now uniquely available for UK brands and retailers who select gable top cartons for chilled, ESL and aseptic juices,” concludes Terry Haigh. From nothing to investment, to jobs and opportunities Terry Haigh is the driving force behind Fruitapeel, establishing the company in 2006 as a producer of fruit/confectionary sauces to the retail and food service sectors. In 2010 Fruitapeel purchased the former Sunjuice carton facility at Llantrisant and, with the aim of moving into fresh juice, acquired the Sunjuice fresh fruit juice and smoothies operation in 2011. Operating primarily as a co-packer, Fruitapeel customers include many of the UK’s supermarket and grocery chains and leading brands. The company has literally grown from nothing into a £15 million business in seven years and is still expanding in a market previously dominated by two very large UK players and amidst a difficult economy. “Fruitapeel is investing in a market that has not seen investment on this scale for many years and are proud to be creating more jobs in Llantrisant,” Terry explains. “We took a huge gamble in moving into a market dominated by larger manufacturers but we have invested ahead of the curve to underpin our desire; we continue to grow our business through partnership opportunities and offer choice in a category which has been struggling for some time.”
➼ For more information contact Market Unit Manager Clive Brown at our office in Manchester;
[email protected] and see our customers website www.fruitapeel.co.uk.
Juice Special – ELOTALK NO. 3 | 21 |
| Product News |
albi to Premiumize Packaging German fruit juice company albi GmbH & Co. sprang into action this May with a re-launch of its premium range in Pure-Pak® Diamond Curve cartons.
Quality made simple albi’s simple philosophy is that a good juice must taste like the fruit from which it was made. Therefore, everything which the company does revolves around harnessing the natural flavours from the fruit. Only natural, fresh fruits which have previously passed an extensive screening test are used and albi’s food engineers are relentlessly looking for the regions with the best growing and harvesting conditions for each variety. Distribution of albi’s premium range is ambient in a 2 x 3 wrap-around format with handle. Cartons are filled on an Elopak P-US80A filling machine.
T
he change, which sees a move away from a standard competitor’s carton, has been motivated by albi’s desire to promote its premium products in a new, wholly premium package. Elopak now packages 25 different varieties in albi’s ambient range of 100% juices, nectars and juice-based drinks. All have a 12-month shelf life.
Albi chose the Pure-Pak® Diamond Curve because of its outstanding design, better differentiation on shelf and the potential to offer consumers a bigger opening device for more convenient pouring. The new 1 litre Pure-Pak® Diamond Curve carton features a transparent PureTwistTM X closure enabling consumers to quickly see if the pack is open for extra convenience. This development follows hot on the heels of last year’s ‘Fruity’ launch – albi’s thirst-quenching 5% juice drink – also in Pure-Pak® Diamond Curve.
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➼ For further information about the products and market contact Marketing & Retail Manager Petra Decker at our office in Speyer, Germany:
[email protected]. Please also see our customer's website www.albi.de.
Facts The albi juice company was founded in 1928 by Hans Rösch and nationwide distribution began in the 1960s. Today, its total brand portfolio includes 40 products, manufactured at production sites in Bühlenhausen and Magdeburg. With production volume of 120 million litres per annum, albi is ranked 8th within the German fruit juice industry and its traditions of creating quality juice are now in the hands of the family’s third generation.
| AD |
PARTNERS FOR CHANGE WWF-NORWAY AND ELOPAK WORK TOGETHER TO REDUCE CO2 EMISSIONS AND TO PROMOTE SUSTAINABLE FORESTRY
Companies play a significant role for the environment. WWF’s strategy is to work together with businesses and industry that show environmental commitment and responsibility. We partner with companies eager to find smart solutions that are beneficial both for the company and for nature.
By working with us, your company can become a leading force and contribute to a more sustainable management of resources. We offer our expertise to assist companies to set ambitious and attainable environmental targets.
«WWF›s approach to working with the private sector is constructive and solutions-oriented. It is both collaborative in its methods and challenging in its objectives.»
Elopak and WWF’s common ambition is to minimize climate change impact from packaging production. The main focus is on reduction of CO2emissions and sustainable forestry (FSC).
Nina Jensen, CEO of WWF Norway
WWF wants global and lasting change.
www.panda.org
© NASA/MALIN REDVALL
TOGETHER WE ACHIEVE MORE.
Juice Special – ELOTALK NO. 3 | 23 |
| Environmental Update |
First UK Carton
Recycling Facility Opens Beverage carton recycling is set to increase dramatically in the UK with the opening in early September of the country’s first carton recycling centre. The facility is a new initiative between the Alliance for Beverage Cartons & the Environment (ACE) UK – representing Elopak, Tetra Pak and SIG Combibloc - and Sonoco Alcore, the paper and packaging producer.
The facility is capable of recycling up to 40% (25,000 tonnes) of the cartons manufactured each year for the UK food and drink market. Whilst previously cartons were exported from the UK for recycling, the new facility is set to dramatically increase rates of juice carton recycling in the UK diverting from landfill and reducing transport carbon emissions. The new site, near Halifax, West Yorkshire offers numerous benefits to local authorities, the kerbside collectors in the UK of beverage cartons, making it easier and more cost effective to recycle cartons. “Elopak sees the opening of the Sonoco facility in Halifax as the most significant event in UK recycling for a long time,” comments Elopak ACE UK representative Clive Brown. “It will reduce transport distance and make the recycling beverage of cartons more cost effective. Recycling is important because it reduces the consumption of virgin materials and levels of waste. Beverage cartons are fully recyclable and made mainly from wood fibres, a naturally renewable resource. The new dedicated carton recycling facility will therefore further strengthen the environmental benefits of beverage cartons.”
➼ For more information contact Market Unit Manager Clive Brown at our office in Manchester:
[email protected]. 24
Facts After beverage cartons have been collected, they are taken to a sorting or bulking facility. Here, they are sorted and separated to maximise recycle quality. Beverage cartons are separated from other packaging materials before being baled and sent for reprocessing. Where beverage cartons are collected with paper, they can be separated at the sorting facility or recycled as part of a mixed fibre stream. At the paper mill, baled cartons are dropped into a pulper, similar to a giant domestic food mixer, filled with water and pulped for around 20 minutes. This delaminates the packaging and breaks it down to produce a slurry. The aluminium foil and polyethylene liners are then separated from the fibre for recycling into new products or energy recovery. Source: ACE UK.
* Beverage cartons, on average, are made from 75% paperboard, a renewable material if made from wood fibre sourced from responsibly managed forests. They also contain some fine layers of low density polyethylene to prevent leakage (21%) and, in aseptic cartons, a very fine layer of aluminium as a barrier to light and oxygen (4%).
Aluminium/Polymer
Fibre
Carton
KEY
The bales of cartons are unfastened, separated and fed loosely up the conveyor belt to be dropped into the pulper. The conveyor belt can carry 1-2 tonnes per load.
PULPER CONVEYOR:
Used beverage cartons are collected from homes, schools and businesses, before being sorted, baled and transported to the UK carton recycling facility for processing.
This squeezes out the moisture from the recovered polymer/ aluminium before baling.
DEWATERING SCREW COMPACTOR:
aluminium is then baled for storage before reprocessing.
BALER: The polymer/
The fibre slurry then passes through the drum thickener which reduces the water content to the optimum level for storage. Water content is reduced from 97.5% to 95%, doubling fibre content to 5%.
slurry is pumped to the specially-designed Kadant ScreenOne which uses an energy efficient three stage screening process to remove any glue or final tiny pieces of polymer and aluminium from the fibre.
This filters out the smaller pieces of polymer/ aluminium (above 2mm) from the fibre mix, which are conveyed to the dewatering screw compactor before being baled. The fibre mix is then sent to the final screening process.
density cleaner cleans the pulp (which still contains smaller pieces of polymer/aluminium) and separates out the ‘fines’ such as glass, grit and small stones.
The cartons are pulped with ambient temperature water in the Kadant Helisoft pulper using a large rotating screw, which separates out the fine polyethylene and aluminium layers* from the paperboard layers and breaks the paperboard down into a fibre slurry. The process takes about 20 minutes.
CONIC DRUM: The polymer/aluminium recovered from the pulper is pumped into a large drum, similar to a washing machine, for cleaning. This water is reused in the pulper, so any remaining fibres are recaptured for processing.
DRUM THICKENER:
SCREENONE: The fibre
POIRE COARSE SCREEN:
HD CLEANER: The high
HELIDRUM PULPER:
THE THE carton CARTON RECYCLING Recycling process PROCESS
Several different approaches for recycling or recovering the polymer/aluminium fraction are being assessed and a UK solution will be in place in 2014. The material will be stored until then – it will not be landfilled or exported.
The reprocessed fibre is then stored in a large tank, ready to be blended with fibre from Sonoco Alcore’s other on-site pulping operation. Stock chest capacity is 300 cubic metres, containing water and 15 tonnes of carton fibre.
CLEAN STOCK CHEST:
Carton fibres provide an ideal raw material for the industrialstrength coreboard manufactured at the Sonoco Alcore paper mill on the same site. In fact these fibres are so strong that they can be recycled many times, making them a valuable raw material for new products and locking in the carbon for longer.
| Environmental Update |
Juice Special – ELOTALK NO. 3 | 25 |
| Environmental Update |
Picture: Kevin Schafer / WWF-Canon
The Power of Climate Savers More than a decade ago, a number of leading businesses embarked on a journey to address climatechange.
First, they began to measure, track and verify carbon emissions. This was followed by setting carbon reduction goals and by developing action plans. More recently, some of them have turned to reducing emissions throughout their supply chains and taking into account the growing demand from consumers for sustainable products and services. We need to reduce CO2 emissions In today’s world businesses face increasing risks to growth, productivity and supply chains from climate change, as the frequency and severity of extreme weather events such as droughts, floods, and storms increases. Those risks are expected to grow, as the path we are currently on will very likely see an increase of the global average temperature with more than 2°C above pre-industrial levels. This would cross a threshold beyond which climate change is expected to have long term, irreversible, and dangerous effects. Scientists say we need to substantially reduce emissions to have a fair chance of achieving the goal of not crossing the 2°C increase threshold. This, by reducing global CO 2 emissions by 20% – 40% under 1990 levels by 2050.
The 3% solution The 3% solution, a report published by the Carbon Disclosure Project and WWF on the effort that needs to be made by US industry to meet its carbon budget, shows that if companies in the US act today, not only can they close the carbon gap in the US, but can do so saving US$ 790 billion in the process. For any company serious about reducing their CO2 footprint, the important first step to take is to set targets to reduce climate footprint, followed by improving the energy management system, increasing the share of sustainable energy, developing low-carbon products and supply chains, and engaging with stakeholders and governments. Three main focus areas to a safe and sustainable future 1. Energy efficiency management 2. Behavioural change 3. Uptake of sustainable energy
According to the International Energy Agency, we have until 2020 to close the gap of 12 gigatonnes of CO2, if we want to have a fighting chance to stay below the 2°C threshold.
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| Environmental Update |
Unlike any other program, Climate Savers offers managementsolutions and provides guidance and advice regarding the target setting process, all the way supported by one of the world’s most trusted brands. Moreover, Climate Savers companies have great access and networking opportunities to likeminded companies that envision a similar future, and companies receive recognition for their efforts. “Being a Climate Savers member requires a progressive position on reducing the impact on the environment. For Elopak the membership of WWF Climate Savers means that we are committed to reduce our environmental impact. Elopak believes that these efforts also will improve our competitive position within our industry segment. We have defined our emission reduction targets and are working hard to accomplish them within the designated time period. Elopak believes that by teaming up with other members of Climate Savers organization, we can make a difference for future generations." says Ivar Jevne, Elopak’s VP Environment.
Picture: Kevin Schafer / WWF-Canon
Upgrading buildings with energy efficient lighting and heating, improvement of data centres, a more efficient vehicle fleet, waste management, switching off lights and computers, monitoring energy use, and placing solar panels on the roofs of building are just some of the examples which companies have done to reduce their carbon footprint, while at the same time increasing the efficiency of their operations.
Facts About Climate Savers The Climate Savers programme, launched in 1999 is WWF’s global platform to engage business and industry on climate and energy. Member companies take on two commitments: 1. to become the best in class in reducing greenhouse gas emissions 2. to influence market or policy developments by promoting their vision, solutions and achievements
Juice Special – ELOTALK NO. 3 | 27 |
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01 2013
➼ Product & Business news
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02 2013 no.
➼ PRODUCT & BUSINESS NEWS FROM ELOPAK
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Published by Elopak AS Group Headquarters. Postbox 418 Skøyen, 0213 Oslo, Norway. Tel: +47 31 27 10 00, Fax: +47 31 27 15 00
PRODUCT & BUSINESS NEWS – ELOTALK NO. 2 | 1 |
