Product & Business News from Elopak

02 2013 no. ➼ Product & Business News from Elopak Product & Business News – ELOTALK NO. 2 | 1 | 2 Picture: Istockphoto In this issue Anyone for...
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02 2013 no.

➼ Product & Business News from Elopak

Product & Business News – ELOTALK NO. 2 | 1 |

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Picture: Istockphoto

In this issue Anyone for tea?

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Cracking New Look for Cracker Juice Drinks

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Icelandic Purity ­Protected with Pure-Pak

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Organic Ireland comes back to Pure-Pak®

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Elopak helps to break new ground in Russia

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Albi to Primiumize Packaging

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Social Responsibility DELTA Dairy helps kids learn nutrition in Breakfastland

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Pure-Pak carton debuts for dairy in Algeria

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Innovation for Growth

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Cartons do the t­ alking for Goats’ Milk

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Environmental notes & updates

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Towards Absolute Sustainability – Towards 2020

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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 June 2013

Product & Business News – ELOTALK NO. 2 | 3 |

Picture: Istockphoto

| Product News |

Facts

Biodynamic agriculture is a method of organic farming. It has been termed a ‘whole farm approach’ and a spiritualethical-ecological approach to agriculture, food production and nutrition. Biodynamic farmers aim to create a diversified yet balanced ecosystem that generates health and fertility within the farm. Everything must come from the farm itself which promotes sustainability. Demeter is the highest certified standard for sustainable ­agriculture. Most of Hampstead tea products carry the ­Demeter logo, thanks to the strict biodynamic practices on its estate in India, guaranteeing that they are all bio-­ dynamically grown. Kiran Tawadey, Founder, Hampstead Tea

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| Product News |

Anyone for tea? Hampstead Iced Tea is a cool fit in Pure-Pak®

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ampstead Tea, the London based biodynamic, ­organic and Fairtrade tea company, has brought its love of the leafy beverage to a new sector with the launch of three organic iced tea ­products in 330ml Mini Pure-Pak® Diamond Curve cartons. Introduced in 2012, the teas are now listed in major UK ­multiples and have won the ‘Oscar’ equivalent of the food world: the Great Taste Awards. Elotalk spoke to Hampstead Tea founder, Kiran Tawadey. “I hail from India which is where my passion for fine leaf tea comes from,” says Kiran. Most of Hampstead tea is produced in India on the Makaibari tea estate in the ­Darjeeling province, the world’s first certified Biodynamic estate. (See fact box). The three iced teas, Lemon Green, Raspberry Darjeeling and Elderflower Oolong, are all organic and made from 100% real tea for a ‘true brew’ experience. It’s all about taste “Most iced teas are made from concentrates and extracts, but we use brewed tea as a base rather than juice for the ‘true brew’ experience and taste,” explains Kiran. “By ­using 100% real, fine leaf tea of the highest quality there is no need for flavour enhancements – you get a pure, natural tea taste. We also wanted the products to be low sugar and low calorie (they are 16-18 calories per 100ml) to appeal to the health conscious consumer who wants something light and refreshing with lunch in the office, or out and about.” Unlike in Europe, Iced Tea is not as widely consumed in the UK but it became popular in the 2000s. 2010 saw ­significant growth with sales of the leading RTD brand ­increasing by 102 per cent,* and an off-trade value sales growth of 35% in 2011.

Kiran believes there is room for growth, however. “The UK Iced Tea market still remains relatively small, but we are giving the consumer the opportunity to buy into the idea with the highest quality, fine leaf tea full of antioxidants with no preservatives or flavourings.” Packaging follows philosophy The company’s packaging is a big part of its philosophy based on its biodynamic farming methods which promote sustainability, health and natural harmony, combined with its Fairtrade practices. “All our packaging is recyclable and biodegradable,” says Kiran. “The carton provides a much better footprint and its barrier protects the ­product. We wanted a recyclable package that supported our ­sustainability goals of lower carbon and water footprints, and the Pure-Pak® Diamond Curve carton matched this criterion while giving us a great looking, convenient-­­­t­ouse product.” The products are attracting attention in the UK, with ­Elderflower Oolong tea scooping a Great Taste Award 2012. “Our products are created by London’s finest tea tasters, and are different from commercial teas because we only use exceptional teas and herbs,” adds Kiran.

➼ For more information about market and products, please take contact with Market Unit Manager Clive Brown at our office in Manchester, UK, [email protected] Sources: http://www.beveragedaily.com/Markets/UKice-tea-sales-heat-up Euromonitor International, RTD Tea in the UK, April 2012 www.biodynamic.org.uk www. biodynamics.com

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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 sees 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 will be 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 will be 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 vege­ tarians and vegans. First in line Of note within the industry is that these will be the very first products to roll off the UK’s only aseptic, gable-top filling line for juice, recently opened 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, will fill ­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 Britishbased 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

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 will include; ‘Pineapple, Guava & Lime’, ‘Mango & Passion fruit’, ‘Apple & Lychee’, ‘Apple, Strawberry & Cranberry’, ‘Blueberry & Blackberry’, ‘Still & Cloudy ­Lemonade’, and ‘Cranberry’.

Product & Business News – ELOTALK NO. 2 | 7 |

| Product News |

Icelandic Purity

­Protected with Pure-Pak® The success of the Pure-Pak® carton in Nordic markets has led MS Iceland Dairies (Mjólkursamsalan) to switch several of its established products to Elopak’s Pure-Pak® cartons in 2013 - starting with the launch of its new chocolate milk in early March.

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| Product News |

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Although Iceland is a small country it has many different milk products, and a high per capita consumption›› Eivind Nordlid, Elopak’s Sales Manager

MS Iceland Dairies is Iceland’s leading food and drink producer and is a co-operative organisation that includes more than 700 of Iceland’s family-run dairies and milk producers. MS began collaborating with Elopak after ­observing the market prominence of Pure-Pak® in Nordic markets. “Although Iceland is a small country it has many different milk products, and a high per capita consumption,” explains Elopak’s Sales Manager Eivind Nordlid. “MS wanted to use new packaging for its latest milk product and they looked at the gable carton for chocolate milk ­following its success in Norway. They liked the Pure-Pak® portion packs and so we worked with them to establish a cost ­effective way to switch more products from brik and cups.” A dairy market position to envy “MS has been built from a solid heritage of farming ­cooperatives and small regional producers creating a strong market position for dairy products that other ­European countries envy,” adds Elopak’s Anita Sundby, Market Unit Director. “Iceland is renowned for being clean and unpolluted. As a consequence, the milk is some of the purest in the world and producers work hard to maintain this by looking after their animals, farmers and the environment.” With this legacy it is no coincidence that the Icelandic consumers love their milk and consumption is some 60%

higher than the European average. MS continues to build on decades of development and experience and today ­produces more than 300 products - including 29 million ­litres of milk a year for homes, workplaces and for catering. Progressive green policies protect Iceland’s purity Because of its relatively untouched nature and farm ­culture, Iceland is a country which is very sensitive to global warming and the impact of climate change. MS is committed to progressive green policies and all products are now produced using only 100% carbon-free electricity. Selecting packaging with minimal environmental impact is a chief part of MS’s environmental strategy. “We take our role as packaging supplier very seriously to help keep the utmost quality and protect Iceland’s very unique product and market,” adds Anita. “We will continue to work with MS in 2013 to leverage the low risk investment and its progressive development towards quality and sustainability.”

➼ For more information about market and products, please contact Sales Manager Eivind Nordlid at our offices in ­Norway; [email protected] or go to the website of MS Dairy at www.ms.ic. Sources: www.ms.ic; MS Iceland Dairies.

Facts The chocolate milk was launched in 500 ml Mini Pure-Pak® cartons in March this year and fresh milk, cream, fermented flavoured milk and juices will be re-launched in 250 ml Mini Pure-Pak® cartons throughout the year.

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| Product News |

Organic Ireland comes

back to Pure-Pak®

There are few companies more passionate about organic farming and the environment than Glenisk, the largest organic dairy in central Ireland. The dairy has a vision of an Organic Ireland, where healthy soil creates healthy food to raise healthy children.*

Glenisk is owned by the Cleary family (left to right): Evelyn Cleary, Administration Director, Mark Cleary, Operations & Procurement Director, Mary Cleary, Founder, Brian Cleary, Production Director, Vincent Cleary, Managing Director and Gerard Cleary, Financial Director

The dairy’s philosophy is communicated on every pack of its goats’ and cows’ milk, now filled in Pure-Pak® cartons with screw-cap. A family-run company, Glenisk was keen to use paperboard packaging rather than plastic - in-keeping with its organic ethos and desire for fully-recyclable packaging. Originally launched in Pure-Pak® cartons in 1997, Glenisk moved to a competing gable-top supplier but recently renewed its partnership with Elopak in January 2013. This relaunch will see the dairy incorporate a screw-cap into its packaging for the very first time. “More people are choosing organic food, for the great taste and the benefits to health, but also to preserve our environment for the health and wellbeing of future gene­ rations. Our packaging plays a part in this,” says Emma Walls, Marketing Director of Glenisk Organic Dairy. “The carton is a good, convenient package, but recent feedback has indicated that it was time to improve our consumer offering and add a cap to our packaging.”

The dairy’s cartons are updated on a regular basis with on-pack promotions and re-designs, and the Elopak team in Manchester is working closely with Glenisk to enable all pack design requirements.

➼ For more information about market and ­packages, please contact Russell Jones at the Elopak ­office in ­Manchester, UK; [email protected] and visit our customer’s website: *www.glenisk.com

Facts Elopak has installed an Elopak P-S50 filling machine in the Glenisk factory in Killeigh, Co. Offaly, where goats’ milk is filled in 750 ml and 1 litre Pure-Pak® cartons; organic cows’ milk is packaged in 1 litre Pure-Pak® cartons and fresh cream is packaged in 500 ml Pure-Pak® cartons. All products are packaged with screw-cap.

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| Market Report |

Elopak helps

to break new ground in Russia

Russia is a multifaceted market with dairy and juice driven by very different dynamics. Juice is dominated by global giants and dairy is seeing the rise of regional dairies.

All customers however, value the combination of a global company with a focus on local expertise. Since the opening of Elopak’s plant in St ­Petersburg in 2012, a design and innovation led approach has been adopted by more customers utilising high quality print technologies. Elotalk reports on Russian market dynamics and how customers are breaking the mould with Elopak. Growth expected for Russian Dairy Market Russia’s home-grown dairy specialities cover a wide spectrum, ­consumers are however most loyal to milk as an ­everyday basic. Because of this, dairy did not suffer significantly from the recession compared to other

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­European markets(1). However, in 2012 there was a shift in consumer behaviour due to changing economic conditions - resulting in an influx of economy products.(2) In 2012 the dairy market in Russia was valued at €5220 million Euros, +9% vs. 2011 according to Nielsen. In volume terms this accounted for an increase of 6% vs 2011. The fresh-milk sector has been growing for the last three years, with all dairy segments increasing in volumes. This is considered to be due to a trend towards healthier lifestyles, and the increase of immigrants and population growth. Despite the market remaining relatively stable, the drinking milk ­market has seen a shift in consumers ­moving

from high value products towards less expensive products from smaller and more regional dairies.(2) The has been driven by a desire for locally produced milk, stirring the beginnings of an organic milk trend. Milk consumption in Russia is ­expected to grow due to a number of factors: • Government-supported school milk programmes • Advertising campaigns encouraging milk consumption • New niches such as flavoured milks and milk and ­yoghurt cocktails • Young and active consumers consider drinking-milk products to be a refreshing alternative to soft drinks.(2)

Customers break the mould in Russia with Elopak Situated in the central ­region of ­Russia, in the ­Belgorod area, is Avida, one of the region’s leading dairies. Avida is the first dairy in the area to re-package its range - including fresh milk, yoghurts and traditional products - in the mini-sized PurePak® ­Diamond Curve. The packaging change in November 2012 enabled the dairy to differentiate and support its ambitions towards the Moscow market. “Regional dairies are prepared to break the mould in Russia. Their ­modern, standout packs ­reflect ­changing consumer habits and ­demands and are­ moving the ­market forward. With ­growing ­Russian ­incomes, lifestyles and tastes we are set to see more ­exciting developments,” comments Pavel Vylegzhanin, Elopak Director Market Area CIS.

Kaliningrad Dairy is a ­leading local producer of fresh milk, traditional ­fermented products, yog­ hurts, bio products and cream. The Kaliningrad area is uniquely positioned, isolated from Russia and surrounded by ­European countries. Local products must therefore compete heavily with European producers and necessitate differentiation. ­Previously packaged in PurePak® cartons with cap, Kaliningrad ­upgraded to ­mini-sized Pure-Pak® Diamond Curve 330 ml and 500 ml in 2012. The standout Diamond and Curve features on the carton have supported significant volume growth.

Juice market in Russia is bouncing back Unlike milk, juice is not considered a daily staple ­product in Russia. The juice market has remained relatively flat over the past few years due to the rising prices of raw ingredients, the economic downturn and periods of poor summer weather. (4)

Piskaryovskiy Dairy is a leading producer ­located in St ­Petersburg. In ­November 2012, the dairy moved to UV-flexo print on PurePak® Curve cartons for its fresh milk and kefir products. ­Together with a full pack redesign, the new-look package led to significant growth, and the success story continues as Piskaryovskiy has incorporated ­mini-sized Pure-Pak® Diamond Curve ­cartons into its range in March 2013.

➼ For more information about Elopak business development in Russia and the CIS markets, please contact ­Victoria Ovchinnikova at our office in Moscow: [email protected].

In packaging terms, juice is almost 100% carton in Russia, with a key current trend towards large family size packs such as two litre, rather than portion packs, which are seeing decline.

In 2012, juice market value increased by 8% to 3002 ­million Euros with no or little growth in volume terms (0% vs 2011 Canadean, -1% vs 2011 Nielsen). As with the drinkingmilk sector, private label share remains low. The market is dominated by 100% juice and nectars which are perceived to be better quality due to high juice ­content. In Russia, consumption of fruit/vegetable juice depends a lot on the overall economic situation.(3) As it is not considered a daily essential, and many consumers see it as an overpriced product, juice struggled during the economic downturn and in 2009 saw consumption decrease significantly. The outcome was a trade down to more economical products such as juice drinks. However, with more Russians focussed on healthy­ diets, consumers are expected to return to high quality ­juices. 100% juice and Not-From-Concentrate expected to ­increase in popularity.(3)

Facts The fledgling organic milk market in Russia saw Agrofirma Rossiya Dairy launch Ugleche Pole organic milk in 2012 filled in 500 ml and 1 litre Pure-Pak® ­Diamond Curve cartons in 2012.

Sources: (1)Dairy Packaging In Russia, Euromonitor ­International February 2012 (2) Drinking Milk Products in Russia, Euromonitor International March 2013 (3) Juices and Nectars Outlook to 2015, Euromonitor International May 2011 (4) Fruit/Vegetable Juice in Russia, Euromonitor International April 2012.

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albi to Premiumize Packaging German fruit juice company albi GmbH & Co. is springing 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 will be ambient in a 2x3 wrap-around format with handle. Cartons will be filled on an Elopak P-US80A filling machine.

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he change, which sees a move away from a stan­ dard competitor’s carton, has been motivated by albi’s desire to promote its premium products in a new, wholly premium package. Elopak will now package 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 will feature 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.

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Product & Business News – ELOTALK NO. 2 | 15 |

| Close to Customer |

Children creating their own carton designs

Social Responsibility

DELTA Dairy helps kids learn nutrition in Breakfastland DELTA Dairy in Athens learned Greek children about the benefits of a healthy a ­ nd balanced nutritional diet with the help of Elopak cartons.

“Since April 2011, DELTA Dairy has run an action program helping pre-school children learn about nutrition through play and recreation,” explains Lydia Syrmaidou from Tesco s.a. Elopak’s partner in Greece. By listening to the story ‘A journey to Breakfastland’, children learn about the ­benefits of a healthy breakfast and how it provides ­important energy and nutrients. “They then participate in related activities such as ­creating their own milk carton design using blank 250 ml ­Pure-Pak® cartons provided by Elopak,” says Lydia. The project is a part of DELTA Foods S.A.’s corporate ­social responsibility model, in the fields of Education, Health and

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Culture. The activities aim to reinforce the messages of the story as well as developing creativity, cooperation and teamwork. To date, 300 presentations have been delivered to a total of 5,700 children run by qualified consultants from the Nutritional Advisory Centre (NAC) at Delta. “The children get to proudly take their carton home as a souvenir from their visit to Breakfastland, and we are very proud to support our customer Delta, with this great ­initiative,” concludes Lydia.

➼ For more information contact Lydia Syrmaidou at the Tesco/Elopak office in Greece; [email protected].

| News in Brief |

Students create the ‘Elopak Park’ In a joint project focused on social responsibility, Elopak Mexico and Universidad Iberoamericana (The Ibero-American University) have run a contest with I­ ndustrial ­Design students.The students were tasked with the concept of developing an i­nteractive game for kids with Elopak cartons as their main material!

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and how our company is fully compliant with the 3R´s. ­(Re-use, Recycle, Reduce). The goal is to communicate to the consumer that Elopak´s packaging best preserves nutrients and, because a carton degrades faster than glass or plastic containers, it is better for the planet.

For Elopak Mexico such activities are very important as we can communicate our concern for the environment

➼ For more information about the project and activities contact Cesar Marquez at the Elopak Envases office in Mexico; [email protected]

total of 120 students took part, divided into 15 teams. It should be noted that the students knew nothing of the actual activity until the day of the contest and they only had 24 hours to ­submit their finished project. The results of the competition were ­excellent. We received 15 very interesting ­pro­­po­sals, which will be exhibited in a public space or mall in the town, ­under the concept of "Elopak Park", as all the ­entries ­collected simulate a mini amusement park.

Product & Business News – ELOTALK NO. 2 | 17 |

Picture: Istockphoto

Pure-Pak® carton debuts for dairy in Algeria With approximately 3 billion litres of milk sold annually, Algeria is one of the largest fresh milk markets in North Africa.

To date, this market has been dominated by reconstituted milk (95%), and is largely packaged in plastic pouches due to government subsidies. However, one dairy is ­breaking through with a bold move – Laiterie Betouche is the very first to move over to cartons, and in March 2013 launched new Laban and Raieb products in 1 litre Pure-Pak® ­Diamond Curve cartons from Elopak. Elopak is the right partner “The dairy market in Algeria is growing at a rate of ­10-15%, and current production capacity cannot satisfy demand,” explains Jürg Burri, Elopak’s Marketing and Sales ­Manager, Middle East & North Africa. “Despite many chal-

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lenges, Elopak saw the potential for cartons and as such we were the ideal partner for Betouche who wanted the advantage of being the first to offer the premium ­benefits of Pure-Pak® gable-top cartons. “It was important for Betouche to have a premium carton pack to give the consumer the best alternative to plastic. They identified the Pure-Pak® Diamond Curve carton as the right fit for their objectives with its stand out features and Elopak’s UV Flexo print capabilities,” adds Jürg. The extended top panel of the Diamond feature allows for a larger cap, important for convenient pouring of viscous

| Product News |

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The dairy market in Algeria is ­ growing at a rate of 1­ 0-15%, and current production capacity cannot satisfy demand››

Facts Betouche is the largest private dairy in Algeria and the ­leader in fresh milk - producing up to one million litres a day. Founded in 1954, this family-run dairy closed down in 1976 in the wake of Algerian Socialism. However, under the helm of the four Betouche brothers it was re-opened in 2004 and is now one of the main players in the Algerian dairy industry.

fermented products like Laban and Raieb, and the extra curved panel provides added impact to a highly premium package. Launched in March, the products have received a positive response from the market, with volumes increasing in April. Betouche will also launch flavoured drinking ­yoghurt in 500 ml Pure-Pak® Diamond Curve cartons.

the benefits of the Pure-Pak® carton will encourage more dairy producers to move to the more convenient, environmental and premium carton packaging.”

➼ For more information about products and ­markets, contact Jürg Burri, Marketing and Sales Manager Middle East & North Africa; [email protected].

“This is a key milestone for Elopak,” adds Jürg. ­“Having worked with the main juice players in Algeria for many years, we have now tapped into the dairy sector ­establishing a solid base in this large market. We believe

Product & Business News – ELOTALK NO. 2 | 19 |

| Close to Customer |

The participants of the successful event.

Innovation for Growth Elopak held a one-day seminar with their customer Tnuva in Tel-Aviv, Israel. The event, led by General Manager for Elopak Israel Amedeo Scapin, was entitled ‘Marketing and Innovation for Growth’. The inspired outcomes of this special event look set to benefit both companies for years to come.

“We built a mini exhibition and conference with: input across market intelligence and trends; sustainability; strategy; print technology; filling technology; carton design and innovation; and most appealing for Tnuva, their designs transferred onto innovative packaging shapes and sizes from Elopak,” says Amedeo. 33 representatives from all Tnuva business functions were present, including: the CEO; senior management; ­marketing; supply chain and purchasing; business development and R&D; plus dairy and technical managers. Elopack created an environment that would spark debate and new ways of ­thinking, whilst encouraging fun and friendly networking. Amedeo Scapin says, “Tnuva’s CEO is driven towards packaging innovation and new marketing targets. The key ­objectives of the day were to: strengthen relationships; ­demonstrate the breadth of Elopak’s expertise; deeper ­understand customer needs and bring new inspiration to the partnership.” ‘Remarkable’ Eyal Malis, Deputy CEO Tnuva Group and CEO of the Dairy Division attended the event and described it as ‘remarkable’. Tnuva’s Group Purchasing Director, Yaron Zimerman, who also attended the event, says, “We were impressed by the innovative and simple design concepts that were presented. It was an excellent day where were learned about trends and innovations, and it has definitely strengthened our ­motivation to partner with Elopak.”

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Being Human “It is important to demonstrate that Elopak is more than blanks and caps - customers have to see other values and our human side,” says Amedeo. "We explored how brands can be built and obtain extra premium through innovation to ­secure market success. There are a number of inspired ­outcomes that we are excited to be developing together.”

Facts

Tnuva Scoop Top Innovation Award Elopak has been working with this innovative customer for many years resulting recently with Tnuva scooping The Innovation Award, at the Product of the Year Awards for the 1.5 litre Pure-Pak® rectangular carton – which was developed in partnership with Elopak. Tnuva was also ­announced as the ‘most innovative company of the year’.

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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.

Product & Business News – ELOTALK NO. 2 | 21 |

| Product News |

Cartons do the t ­ alking for Goats’ Milk St Helen’s Farm, the UK’s leading goats’ milk brand, re-packaged its range of ­pasteurised goats’ milks in 1 litre Pure-Pak® cartons in January 2013.

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Picture: Tine

Facts Similar nutritionally to cows’ milk, goats’ milk is easier to ­digest because of its different casein protein structure - which is often a cause of allergies in cows’ milk. Most consumers switch to goats’ milk for health reasons due to an intolerance to cows’ milk. Others will switch for ­different reasons including provenance and animal welfare, or simply because they love the taste of fresh goats’ milk products.

Fulfilling flexible print requirements “We see it as our newsletter to our consumers, and as a two way communication, where we feature stories and case studies from our customers,” adds Mike. “We use the four-panel space of the carton for our messages and change them 10-12 times a year, so we needed to have confidence in our supplier to do this. Elopak delivers through its high print quality, pre-press centre and its ­UK-based account team which understands our needs.”

Elopak received a specific brief from St Helen’s Farm for the carton, as it is one of its main communication tools.

The goats’ milk market is still niche at around £27 million RSP according to Nielsen Scantrack but it is growing steadily. “Today every multiple will carry fresh goats’ milk; this was not the case 15 years ago,” says Mike Hind. ­“Naturally, as farmers we have strong environmental ­values and our packaging must support this. If we used HDPE bottles then we would need a delivery almost every day, but with cartons we only need a delivery every five weeks, so there are huge savings on our carbon footprint.”

Sales and Marketing Manager for St Helen’s Farm, Mike Hind, told Elotalk, “Goats’ milk is a natural alternative, ­appealing to consumers with cows’ milk intolerance. The proteins in goats’ milk are different and it is easier to ­digest than cow’s milk, so many people with dairy ­intolerance can often drink it with no adverse effects,” he says. “As more consumers switch, we have found it ­invaluable to keep up our communication with our ­customers. The carton is the ideal vehicle which enables us to do this.”

Products in the St Helen’s Farm fresh pasteurised range include whole milk, semi-skimmed and skimmed milk in 1 litre Pure-Pak® cartons – all made with 100% British goats’ milk.

The cartons feature stories from consumers about why they drink goats’ milk and the benefits to them, plus information about farming methods, promotions and offers as well as all the information about the product itself.

➼ For further information contact [email protected] and www.sthelensfarm.co.uk.

Product & Business News – ELOTALK NO. 2 | 23 |

| Environmental Update |

Environmental

Footprinter – steps towards 2020

Elopak has been focusing on a more environ­mentallyfriendly industrial operation for many years and has been reporting environmental parameters monthly since 2008 from more than 50 units worldwide. One of the goals of Elopak’s sustainability strategy is to act as a “change agent” for the entire value chain, both up and downstream of the internal operation. Hence Elopak will invite both suppliers and customers to access a new cloud based system called Footprinter, which has been developed in cooperation with Best Foot Forward1 and Footprinter Inc2. 1

www.bestfootforward.com

https://footprinter.com

2

icates environElopak commun ucts mance of prod mental perfor rs are increasingly

holde Consumers and stake cts on the impact of produ on ati orm inf ng sti us ­reque cio ns -co ate clim to make on our climate in order important an as s thi s see k pa purchase decisions. Elo and is currently updating the cy part of their transparen clarations (EDP) across their De ct du Pro l nta me on entEnvir is a Lifecycle-Assess­m D EP An . cts l nta carton produ me on municates the envir Ds EP based-tool which com k’s pa Elo All e. vic ct or ser performance of a produ relevant data and will conre Ps will will be updated with mo ISO 14025:2006. The ED ard nd sta l rket form to globa ma al er. Contact your loc be available this summ unit/ key account!

Update from Carton Council in US

The Carton Council is composed of four leading carton manufacturers in the U.S. and was formed in 2009. They are committed to building a sustainable infrastructure for carton recycling nationwide and working toward their continual goal of adding access to carton recycling throughout the U.S. Recently they launched a new website designed for the professional audience with information about carton recycling, www.cartonopportunities.org More information about The Carton Council can be found on their website www.recyclecartons.com

24

notes & updates

Increased recycling in the UK

In the UK, approximately 60,000 tons of paper-base cartons are used or about 2.3 kg of cartons per household. Although cartons are a highly recyclable product, facilities to recycle cartons have been limited. However The Alliance for Beverage Cartons & the Environment (ACE) UK has recently announced an increase in carton recycling facilities for Great Britain. Now 50% of local authorities collect recyclable cartons which is a 12-fold increase since 2006. The increase follows the cooperative efforts of the ACE members – Tetra Pak, Elopak and SIG Combibloc – with local authorities and consumer groups. With the UK’s first beverage carton reprocessing facility set to open later this year recycling rates are expected to increase further. Sources: http://www.environmentalleader.com/2013/05/13/half-of-ukauthorities-collect-drink-cartons-at-curbside/

New EU Timber regulations

New European Union Regulations on timber came into force on 3rd March, 2013. These prohibit products made from illegally harvested timber being sold on the EU market. The first operator to place a product on the EU market is required to exercise a Due Diligence System (DDS) to ensure that the timber is legal. Operators are required to have the DDS information available upon request.

FSC, not just fo r

cartons Elopak follows the Fo rest Stewardship Coun cilTM’s (FSCTM) international certification system, wh ich ­guarantees that pape r and wood products are from environmentally sound sources. The FSC cer tification of our global sites acr oss the world continue s as more and more consumers see packaging as an indica the FSC logo on product tion of climate and soc ial ­responsibility. “Our business ethics and our sustainability strategy runs through all of ou r operations and not jus t our Pure-Pak® cartons,” explains Marianne Gr oven. “Our intention is that Elopa k em FSC international forest beds the principles of the certification and that all paper products we us e come from forests ma the naged according to the strict est environmental an d social responsibility standard s.” At Elopak however, FS C is not just about ou r cartons and Elotalk has now be en printed on FSC pa per.

“This is a regulation in-line with our commitment and policy towards the sustainable and ethical sourcing of our raw materials,” says Marianne Groven, Elopak’s FSC Manager. Elopak has put in place procedures for compliance across the group and provides c­ ustomer information to detail the regulations and their ­implications.

Product & Business News – ELOTALK NO. 2 | 25 |

| Environmental Update |

Towards Absolut – Towar

In 2012, Elopak announced its ambitious vision and strategy for susta Elopak started the journey towards ­absolute sustainability – and th

This year Elopak is creating a “baseline” for each of the six pillars of the strategy. This baseline will form the ­anchor points for measuring the progress throughout the period towards 2020. For each pillar, Elopak has defined ­activities and responsibilities and ­established a reporting structure.

Renewable raw materials:

Sustainable energy:

Sustainable logistics:

Committed to use 100% renewable raw materials by 2020, by identifying, ­testing and implementing alternative ­materials.

Reach a 25% reduction in energy use and achieve 85% renewable energy by 2020.

Achieve a green supply chain, ­ elimi­nating wastage in transport, and achieving a 15% CO2 reduction per ­kilometer of transported blanks.

Renewable raw materials: Since 2012, Elopak has been involved in three publicly funded research projects. They include coating materials as well as oxygen barriers and caps. ­During this baseline year Elopak is identifying and contacting potential suppliers and ­performing internal tests. The goal is to have renewable products available for customers within the next two years; however, the ­customers’ product ­quality cannot be affected and hence thorough testing is required.

Sustainable logistics: Several projects are in place to reach the overall goal. Increasing the number of blanks per pallet and increasing the number of pallets per carrier, are two examples. Also, Elopak is evaluating several ­changes in transport modes from road to sea or rail. Transport by sea to Norway is already successfully implemented. During this baseline year Elopak will audit all standard ­carriers and map all distances for inbound, internal and ­outbound transport in Europe. The CO2 effect of all ­European transport will be included in the 2013 sustainability ­report. The baseline mapping will be the basis for additional ­projects over the next years and Elopak is confident that ­improvements will be achieved.

26

te Sustainability rds 2020

ainability ­towards 2020 called Future Proofed Packaging. With this, h e overall goal of zero negative impact on the environment by 2020.

In this issue of Elotalk, we are focusing and reporting on two of the pillars – ­renewable raw materials and sustainable l­ogistics.

Customer operations efficiency:

Total recycling zero waste:

Achieve a 25% reduction in carbon emissions and use of water, steam and chemicals in our customeroperated, carton filling equipment.

Aim to completely prevent waste and products in landfill. Achieve 100% ­recycling of the internal production waste and 50% recycling of cartons from households by 2020.

Culture and governance: This is a fundament which supports the first five pillars and integrates the ­sustainability agenda into all activities in Elopak.

You will find more information about ongoing projects and progress regarding the other pillars in the next issues of Elotalk – stay tuned and read Elotalk!

Product & Business News – ELOTALK NO. 2 | 27 |

LEO

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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