nextgen whitepaper june 2013

PACKAGING REDUCTION VS FIR…

THE BALANCING ACT!

Hosted by Your Packaging Partner

PACKAGING REDUCTION VS FIR…

THE BALANCING ACT!

Published by:

Your Packaging Partner

Albion Mills, Albion Road

Greengates, Bradford

UK, BD10 9TQ

T: +44 (0)1274 200 700

E: [email protected]

June 2013

EXECUTIVE SUMMARY

010205

0710

CONTENTS

EXECUTIVE SUMMARY

CONTENTS

Executive Summary

What Is Coca-Cola Doing On Packaging Reduction?

So What Are The Practicalities of FIR?

Packaging Solutions That Bridge The Gap

About NextGEN

About Coca-Cola

About Legal Impackt

About Your Packaging Partner

For many years now Brands and Retailers

have focused on packaging reductions,

historically weight and cost reductions and

more recently, carbon reductions. With the

Food Information Regulations being published

in November 2011, does this mean packaging

reduction will be replaced by increased

packaging to allow for additional mandatory

legal information?

Coca-Cola has been working hard for many

years on environmental strategies including

packaging reductions; light-weighting and

more specifically, carbon reduction

programmes. With a valuable insight into how

global brands plan and execute their

packaging strategies, Coca-Cola can

demonstrate this clearly and share some of

their future targets.

The Food Information Regulations (FIR) bring

EU rules on general and nutritional labelling

together into a single regulation to simplify

and consolidate existing labelling legislation.

The new legislation will enable consumers to

make informed decisions on the foods that

they buy, by ensuring labels are legible,

understandable and not misleading.

Transitional arrangements mean most

requirements do not apply until 2014, but the

clock is ticking and businesses need to be

aware of potential issues, requirements and

timings involved to allow for suitable planning

and implementation.

FIR is likely to affect all packaging and given

the scale you should start planning for these

changes now. The good news is there are

packaging solutions that can help bridge the

gap between regulatory requirements and

packaging reduction strategies. These

solutions can provide a mechanism to free-up

space for all mandatory information on

packaging while meeting customer needs

today and in the future.

This white paper has been published by Your

Packaging Partner in support of our Virtual

NextGEN event held on 16th May 2013,

supported by Packaging News. It provides an

insight into the strategies and reductions

already implemented by Coca-Cola and an

introduction to FIR and the impact they will

have on packaging. In addition, it considers

the packaging solutions available today in the

marketplace that could help reduce the impact

the FIR may have on packaging now and in

the future. We need to act now...

01 Packaging Reduction vs. FIR… The Balancing Act!

European Environment Destination 2010 - 2020

WHAT IS COCA-COLA DOING ON PACKAGING REDUCTION? WHAT ARE COCA-COLA DOING ON PACKAGING REDUCTION?

The Coca-Cola Company Environment 2020 Strategy is a

European strategy not just UK, but Coca-Cola Enterprises

Limited also has a UK based strategy of their own.

Packaging is only one element of the European

Environment Destination 2010 – 2020, other areas include

sourcing, water and carbon.

The whole life-cycle will be

analysed from ingredients and

packaging through to refrigeration

and recycling. All these have a

role to play in a carbon reduction

programme.

OUR CARBON PROMISE:

We will reduce the carbon

footprint of the drink in your hand

by 20% by 2020.

OUR PACKAGING PROMISE:

We will recycle the equivalent of 80% of the packaging we use and significantly

increase the use of recycled and renewable materials.

This will be achieved through a Reduce, Recycle, Renew programme including:

• Offer best consumer packaging with 25% less material

• Work with collection schemes and recyclers to recycle at least the equivalent 80% of our packaging

• Lead by example with 100% recyclability on our bottles and cans and maximum use of recycled alu, steel and glass

• Make all our plastic bottles with recycled and/ or PlantBottle material.

Chris Bowers

European Packaging Innovator, Coca-Cola

02Packaging Reduction vs. FIR… The Balancing Act!

PLASTIC BOTTLE SUSTAINABILITY

PET packaging has fuelled our growth for over

40 years as PET makes up more than half of

our packaging consumption. To remain

competitive we must do more with less fossil

based materials.

To reduce the use of petrochemicals in PET

resin alternatives need to be created. Ethanol,

made from sugar cane, can produce Bio-MEG

which makes up 30% of the PET resin, the

remaining 70% can be produced from

biomass (Bio-TA) resulting in a fully

sustainable PET resin.

This innovation has been heavily invested in

by Coca-Cola but we have also opened this

technology up to non-competing brands such

as Heinz.

Purely looking at packaging weight

reduction, huge steps have been

taken already in both SSD packaging

and cans.

Europe 2020 – Environment, Roadmaps & KBIs

Plastic Bottle Sustainability

Towards The Bottle Of The Future

*Also includes recycled material

The weight = 21.7g

rPET content = 25%

Plant PET content = 22.5%

Film = Ultra Film (45ug)

Tray = Tray / Trayless

IN

2011/12

The weight = 18g

rPET content = 40%

Plant PET content = 22.5%

Film = Bio Film

Tray = No tray

BY

2020The weight = 26g

rPET content = 0%

Plant PET content = 0%

Film = 70ug film

Tray = Tray

IN

2007LIGHT-WEIGHTING

Today, 30% of a Coke bottle is made from

Plant-Based material with the long-term strategy

being for a 100% sustainable solution.

Looking at the 500ml bottle.


Aluminium cans are a real focus when it comes to environmental

impact. Although the can is one of the most developed packs in the

marketplace today, being extremely light for its delivered volume,

aluminium processing from source creates a great deal of carbon

emissions. Therefore leveraging recycled content for our cans is

essential and we need to work with Industry and Governments in

Europe to improve collection and availability of recycled material.

This does not mean we stop light weighting and we have projects

now that are looking at further savings in ends and bodies.

When will Plant PET be fully used, you

are only predicting 22.5% by 2020?

“There are two difficulties with predicting the

level of Plant PET use by 2020. Firstly is

availability. We are working with a limited

capacity in the system and while we are

developing the technology to use 100% Plant

PET, that capacity will grow slowly. 2020 is not

“The targets for 2020 are aggressive

but achievable.”

PUTTING THIS INTO PERSPECTIVE, FOR EVERY TONNE OF ALUMINIUM SAVES:

• 4 tonnes of bauxite

• 9 tonnes of CO2 emissions

• 85% of the energy needed to make aluminium

from raw materials

• 97% of the greenhouse gas emissions

QUESTIONS

F R O M T H E F L O O R

as far away as it seems when you are building

a technology project from scratch.

The second issue we have is that we want to

use recycled content as well to minimize the

total environmental impact. As PET, Plant or

otherwise is just PET, we cannot claim a Plant

sourced level as it cannot be detected in the

recycling system. So to use both gives us an

actual lower level of Plant sourced plastic than

we would like.

So although we are striving to raise the level

as soon as possible, 2020 is probably too

close and the technology too new to put that

target into our strategy at this time. But rest

assured, as soon as it becomes available, we

will fully leverage the technology.”

Do you take FIR considerations into

account on your labelling and

packaging reduction schemes?

“Yes we do. We have been focusing in this

area now for some time and are working on

our packages to ensure they are fully

compliant before the December 2014 date. It

is not an easy project especially with the

smaller packages, but we are confident we will

be fully compliant well in advance of the

requirement.”

Huge steps have been taken but there is still more opportunities to

improve packaging and Coca-Cola is committed to achieving the

best possible solutions to ensure we achieve our goal of achieving

sustainable communities.


Europe 2020 – Environment, Roadmaps & KBIs

Cans and future focus

SO WHAT ARE THE PRACTICALITIES OF FIR?SO WHAT ARE THE PRACTICALITIES OF FIR?

The ‘Food Information Regulation’ (FIR) is the first comprehensive re-think of how information

about food should be presented to consumers since 1979. The conclusion it enshrines about the

type of information consumers require is far from radical. In fact some industry experts have

bemoaned the lack of innovation and simplification, suggesting that the new Regulation is no more

than tinkering and the net effect on industry, a requirement that virtually every food label across

Europe needs to change, is disproportionate to the benefit for consumers. It certainly doesn’t

reflect the amount of time the EU put into debating the subject, a process that began in 1994!

The consequences of the immediate changes,

in particular the introduction of a minimum font

size for mandatory food information and the

change to the hierarchy of information on food

labels, are the key to understanding why a

new approach to label design is likely to be

necessary. It is clear that food manufacturers

or retailers will no longer be able to design

labels and as an afterthought squeeze the

‘legals’ onto a minor face of the packaging in

small print. The Food Information Regulation

requires that sufficient space is provided for

the legal information at or above a minimum

font size before any additional ‘Voluntary Food

Information’ is included on packaging.

Whilst food manufacturers and retailers are currently wrestling with what the FIR, as published,

means for their products, designs, brands and labelling they are also aware that the Regulation

contains provisions that will add to label requirements in future years. There are no less than 35

areas where detailed requirements will be subject to further proposals. A small, but important,

number of these have specific timescales, including origin and provenance marking rules in

relation to ingredients, where further detail is expected to be published at the end of 2013.

Though we do not yet know when this detail will become law we do know that the scope of what

is being considered could have a considerable impact when it does.

There are within the Regulation a significant number of proposals that have no timescale

attached and this is potentially more worrying as it is not possible to plan, except in the most

general sense of ‘be prepared’, for these changes

This ongoing programme will require labels to change not just once, but potentially several times

over the next few years. The immediate change can be planned in, but what the full future

programme of change looks like is not currently visible.

This uncertainty is not helpful for the food industry that must constantly be aware that changes in

the law could be announced at any time.

PHIL DALTON

Head of Regulatory, Legal Impackt

A NEW APPROACH TO LABEL DESIGN IT IS A PROGRAMME OF CHANGE


Be that as it may we have

a new set of requirements

that will drive a different

approach to labelling of

products and will produce

an ongoing programme

of change over the next

several years.

The probability of a programme of change is likely to be a particular

challenge for small businesses that often do not have the labelling

expertise in house. In order to help business manage any changes the

EU has committed to implementing future change on fixed dates each

year (likely to be 1st April).

The UK has been ahead of the rest of the EU on the use of simplified

nutrition information on front of pack as a step towards addressing

consumer choice in the fight against obesity. The Food Information

Regulation will allow this to continue, albeit with a set of specific rules

and the expectation that there will be a single scheme approved in each

country. The Department of Health anticipate that the details of the final

UK scheme will be published in the summer once approval is received

from Brussels. In 2017 the Commission will review all of the schemes

across Europe and make a decision as to whether tighter rules are

required.

During the consultation process much was made of the possibility of

‘new technologies’ influencing what should appear on a label and the

possibility for some of the consumer information to be given by other

means than on the label. In the short term this option was not taken

forward, but there is a real possibility that in the future we may see the

law change to be more flexible. For now the details must all be on the

label, and must be presented in a way that is clearly visible and

unobstructed. However, it can only be a matter of time before this

changes, driven in part by food companies who want to get back to

packaging being about presentation rather than ‘Information’.

The biggest benefit to consumers in the application of new

technologies is likely to be the ability to interpret the food information

that is provided. Whereas the label merely presents useful information,

a technological solution can help the consumer to interpret and to use

that information to plan a healthier diet.

WHAT IS THE IMPACT ON SMALL BUSINESSES?

HOW WILL IT AFFECT FRONT OF PACK LABELLING?

THE ROLE OF PACKAGING TECHNOLOGIES

We have to deal with the specific requirements and the consequences

of the legislation. It presents challenges both for the design of labels and

the timing of changes to meet the December 2014 deadline for

compliance with the published FIR. We will need to manage the likely

programme of future changes with help from the EU to structure these

changes in a way that minimises disruption and cost.

It is tempting to blame the EU for the changes, but a review of food

labelling was needed to ensure the information presented to consumers

remains relevant. A UK only approach may have arrived at conclusions

quicker, but they would likely have been substantially the same

conclusions based as they were on the premise that consolidation and

simplification was required to provide a basis for tackling diet related

health issues. It is not surprising that the debate on food labelling

arrived back at a list of information for consumers substantially similar to

the previous requirement. Similarly leaving the EU is unlikely to result in

any change to food labelling requirements based as they are on

common principles.

Having reviewed and confirmed the basic legal requirements (subject to

the additional changes yet to be confirmed), the next challenge for

government will be to inform consumers and ensure they understand

how to use the information provided.

CONCLUSION


Well, that really does depend on the available space.

The packaging industry has changed over the last +20 years since the

Essential Packaging Regulations were introduced, however progress

has been slow from a regulatory perspective. The FIR, is the largest

regulatory change since 1988, where other voluntary obligations have

shaped packaging today, including Courtauld.

Courtauld and the economic downturn have brought packaging

reduction (weight, cost and carbon) to the forefront of most FMCG

brands and retailers. Reductions can be obvious, such as removing

packaging components or reducing the physical size of the packaging.

Others can be more subtle with light-weighting substrates like

cartonboard, glass and flexibles.

POTENTIAL SOLUTIONS INCLUDE:

So will your physical packaging need to change, or is it just the text?

WHAT DOES IT MEAN FOR PACKAGING REDUCTION?WHAT DOES IT MEAN FOR PACKAGING REDUCTION?

Gillian Garside-Wight

Packaging Technology Director, Your Packaging Partner

Smaller packaging generally delivers a packaging cost reduction as well

as less packaging to landfill, lower transportation and distribution costs

and reduced carbon. However this can also deliver (potentially) less

impact on shelf and less available space on pack. These restrictions

could work against the requirements of the FIR as they require an

increase in mandatory information and an increase in the minimum font

size.

Regulatory requirements must be met but thankfully there are

packaging solutions available in the marketplace today that can help.

The solutions illustrated can be used for voluntary information only and

not mandatory information at the moment, however there is a provision

in the regulations that states that technological means of displaying

information maybe valid in the future.

Where the packaging format allows (labels, flexibles and cartons)

reverse printing the inside provides a much larger available space to

print all required elements.

Widely available and could provide a solution for small packs, or where

additional voluntary information is required.


LEAFLET LABELS REVERSE PRINTED

Used by many leading brands today, QR codes enable brands and

retailers to communicate so much more about their product, packaging

and promotions in a very small space. Through the use of QR codes,

which are scanned by customers on smart phones, linking directly to

websites, the information displayed can be as extensive as the brand

desires.

QR CODES

Currently on shelf in Germany, by holding a wand provided (which

in the future could be a SMART phone app), over certain areas,

the packaging will talk to the customer and provide them with

information about the product, brand, promotions and the

sustainability of the packaging components.

TALKING PACKAGING

Hellmann’s worked with a premium retailer in Brazil to encourage

consumers to use mayonnaise for more than just sandwiches. When a

customer bought Hellmann’s mayonnaise a recipe receipt was printed

out at the check-out, the recipe ideas included some of the other items

the customer had in their basket. This technology could be used in many

ways and is just one example of how technology can drive enhanced

customer experience.

INTELLIGENT TILL RECEIPTS

Following on from QR codes, augmented reality (AR) is primarily

used in gaming and security at the moment but is starting to

emerge in key brands within grocery retail. The customer simply

downloads an App on their smartphone and scans the pack which

instantly takes them to a web page. This page can include games,

recipes, TV adverts, information about the brand, packaging

information and so much more. The good thing about this solution

is that it can be as interactive as you want and can be updated

without the time and cost associated with packaging amends.

AUGMENTED REALITY


CLOSING REMARKSCLOSING REMARKS

With multi-channel retailing the range of solutions available to brands

needs to be diverse and packaging also needs to adapt according.

Social media and internet shopping have changed the face of retail

sales and marketing.

The world’s first Tweet Shop opened in London to promote new Special

K crisp products using the power of social media. Shoppers who visited

the ‘Tweet Shop’ could pick up a bag of new crisps, and all they had to

do to pay was recommend them on Twitter using the smartphones and

iPads provided in store.

MULTI - CHANNEL RETAILING


With the ever looming date of 13th December 2014, you need to ask yourself if you are ready for FIR?

EVERY pack will need to change with the introduction of FIR, and if you haven’t already done so, you need to start NOW!

You need to get smarter with your packaging to meet regulatory requirements & customer needs.

There are packaging solutions available today that can bridge this gap and meet future customer needs!

FIR is happening and it will affect packaging!

However, this should not compromise packaging reduction programmes!

How packaging requirements will develop in the future is not known,

however with the growth of internet sales and social media set to

continue, multi-channel retailing is the future and the role of packaging

will inevitably change. One thing is for sure, consumers will expect

more:

• More convenience in purchasing

• Easier to dispose of – recyclability

• More information available about the Product and packaging

• More for their money!

There are solutions to the FIR, we (the packaging industry) need to get

smarter with packaging – meet the regulatory requirements and

customer needs, now and in the future.

IN CONCLUSION

IT IS NOT A COMPROMISE; IT’S THE RIGHT THING TO DO!

ABOUT NEXTGEN

NextGEN is an exclusive, invitation only, forum whereby

retailers, brand owners, food manufacturers and packaging

producers come to discuss and find solutions to the latest

industry challenges.

Launched in 2010, NextGEN events have covered many

hop topics including migration, innovative packaging

solutions, changes in customer behaviours and disposal /

recycling challenges. With a non-sales approach taken by

all presenters, the aim is to share knowledge and work as a

cross-discipline team to find solutions to common industry

headaches.

Legal Impackt provides regulatory services covering

consumer products from food to health and beauty and

everything in-between.

Our team, made up of a unique blend of Regulatory

Advisors and Creative Copywriters, is at the cutting edge

of food production, safety legislation and industry codes,

servicing many of the UK’s leading retailers.

Your Packaging Partner is the largest, and most

successful, independent packaging development team in

the UK, with experience in FMCG categories working

within major retailers and brand owners.

We deliver many benefits to our clients by creating

packaging to meet their diverse needs including solutions

to provide the political, commercial and social needs

necessary from packaging today.

The Coca-Cola Company is the world’s largest beverage

company, refreshing consumers with more than 500

sparkling and still brands including Diet Coke, Fanta,

Sprite, Coca-Cola Zero, vitaminwater, Powerade and many

more. Coca-Cola beverages are enjoyed in more than 200

countries at a rate of 1.7 billion servings a day.

With an enduring commitment to building sustainable

communities, Coca-Cola is focused on many initiatives

including reducing their environmental footprint and

supporting active, healthy living.

ABOUT COCA-COLA

www.coca-cola.co.uk

ABOUT LEGAL IMPACKT

www.legalimpackt.com

ABOUT YOUR PACKAGING PARTNER

www.yourpackagingpartneruk.com


Want to speak to one of our experts?Contact Sarah Wilford, Marketing Manager

[email protected]


Corporate Headquarters:Your Packaging Partner, Albion Mills, Albion Road,

Greengates, Bradford, West Yorkshire, UK,

BD10 9TQ


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nextgen whitepaper june 2013

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