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CanCourier Ball’s Worldwide Beverage Can Customer Magazine 1/2012

Health & Wellness!


The beverage can is the perfect packaging for young customers on the go and at outdoor events. Here are some inspirations.

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Faster in the Market Interview with Thomas Haensch

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Leap through the Rings The beverage can makes the difference

Fighting against Food Waste A worldwide initiative

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Positive about Cans A European insight into the market

News from the Can World Ball expanding in Asia

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Fascinating 13 From an artistic perspective

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COVER STORY Health & Wellness! Riding a megatrend

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The Eye Catcher Alu makes the bottle

Water in Beverage Cans Pure and fresh

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Customer Wishes Fulfilled Ball‘s new tailor-made test filling unit

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Awards Recognition and incentive

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Our new Sustainability Report Once again impressive successes

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Imprint: CAN COURIER Published by Ball Packaging Europe, Public Relations, Kaiserswerther Straße 115, 40880 Ratingen, Germany, Phone +49 (0) 2102 130-0, Fax +49 (0) 2102 130-130 | Executive Editor Sylvia Blömker | Realization dn,media, Düsseldorf; Atelier Goral, Cologne, Germany | Printing Heider Druck GmbH, Bergisch Gladbach, Germany | Photos Tim Beelow, Coca-Cola, Thomas Frey, Rolf Schwertner, EMS & P, Corbis, Fotolia, Patrick White, Frank Reinhold, Rolf Schwertner, Susanne Dobler, Rainer Holz

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Editorial

Our focus on long-term sustainability links directly to our “Drive for 10” strategy.

Jim Peterson | Vice President, Marketing and Corporate Affairs Ball Corporation

“Creating long-term vaLue”

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Scan it and watch the video interview with Jim Peterson on your Smartphone. For detail information see page 36

ustainability has always been important at Ball. During our long history, we have identified and pursued sustainable practices in our businesses as a matter of course. Recycling, lightweighting our products, reducing our energy usage, eliminating waste – all have been part of Ball for as long as there has been a Ball. Striving to become a more sustainable enterprise requires that we think long term. We have been around for 132 years and we want to be successful for another 132! Since issuing our first sustainability report in 2008, we have focused on measuring and improving our sustainability performance within our facilities. We have also broadened our scope to collaborate with customers and suppliers to determine opportunities for the greatest sustainability impact within the supply chain of our products. We are making progress, and you can see that in our new sustainability report that was published recently and is available on www.ball. com/sustainability.

Our focus on long-term sustainability links directly to our “Drive for 10” strategy. Drive for 10 requires a proactive, “One Ball” global approach to long-term growth for our company so that we can continue to create value for our shareholders, customers, employees and other stakeholders. The beverage can is the most frequently recycled beverage container in the world. Wherever we are operating – whether in the Americas, Asia, Europe or other markets, we actively endeavour to increase the recycling rates of our products. We do that by means of information for the consumers and our customers, by campaigns and with support for take-back systems. We at Ball take our responsibility seriously. Jim Peterson Vice President, Marketing and Corporate Affairs, Ball Corporation

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Supplier of the Year Award (l-r): Stephen Moorhouse, Vice President and General Manager, Supply Chain, and John Brock, Chairman and CEO, CocaCola Enterprises, presented the Award to Thomas Haensch, Vice President Sales, Marketing and Innovation at Ball Packaging Europe, and Rob Miles, Senior Vice President Sales, North American Beverage & Global Accounts at Ball Corporation, together with David Cowell, Vice President Procurement, Coca-Cola Enterprises. (right) CC Ho and Jasmine Li of Ball Asia accepted the “Excellent Performance Award” from Coca-Cola Greater China.

Double award from Coca-Cola Double distinction: both in Europe and in Asia, Coca-Cola made coveted awards to Ball. These awards were preceded by intensive audits. At Coca-Cola’s third “Supplier Sustainability Summit“ held in London, Ball was awarded “Supplier of the Year” for the third time. Ball is among those hand-picked suppliers that Coca-Cola’s has said contributed the most to its corporate success since 2011. The award was made for performance in four categories: quality, service, added value, and corporate responsibility and sustainability. Ball continues to work on improving its award-winning performance. Currently Ball is

working together with Coca-Cola on the development, testing and implementation of the world’s lightest 33 cl beverage can. Out of 300 Coca-Cola suppliers in Asia, Ball Asia received one of only three awards for social sustainability. Coca-Cola’s auditors cited Ball‘s endeavors in the subject areas of health and industrial safety, working environment and social commitment. The base conditions for this strict audit were set by the Coca-Cola Supplier Guiding Principles (SGP), which are a clear example that supply chain sustainability in cooperation with others is becoming increasingly important.

In the top group There are more than 100 test criteria for the 360 biggest US companies. And only the best make it into the top 100 Climate Innovation Index (CIIs) of the British consultants and risk analysts from Maplecroft. The central question is, how successfully are the biggest multinational companies from the USA preparing for climate change? Ball’s ongoing sustainability efforts earned the company 75th place. Economic, social and environmental sustainability are an important part of the company’s corporate and operations decision making every day.

Award-Winning Recycling Instruction Six boys and girls throw their arms up to show how great the possibilities for metal recycling are: this photo of a group of schoolchildren from Qingdao was taken during the Ballsponsored school program ”Can, Life and Future” which received the Grand Award in the “Yechiu Cup.” The cup is given by the China Nonferrous Metals Industry Association – Recycling Metal Branch (CMRA) to projects that provide effective education about metal recycling and sustainability. Ball’s “Can, Life and Future” program provides information on the advantages of can recycling. Sally Yuen, Ball’s Director for Marketing and Business Development in Asia, accepted the award at the 11th Annual Secondary Metal International Forum. Sally Yuen, director, marketing & business development, for Ball in Asia, accepts the 2011 Yechiu Cup.

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Can World

Cool mountain panorama 59 degrees Fahrenheit corresponds to 15 degrees Centigrade: the ideal drinking temperature for Harbin beer, one of the oldest and most renowned beer brands in China. Whoever chooses the glacier-blue, 33 cl can from Harbin can see at a glance whether the beer is ready to enjoy - only then is the glacier landscape above the Harbin logo clear and inspiring. But if the beer is too warm, thirsty consumers only see a vague silhouette of the mountain landscape. For this thermochrome effect, Ball Asia Pacific received one of the coveted “Best in Class” awards from the Asia CanTech Conference in Ho Chi Minh City, Vietnam.

Ball Once Again a “MostAdmired” Company Fortune, the oldest US business magazine, once again selected Ball Corporation as one of the most admired companies in the world. Ball, among all the companies of the packaging and container industry, landed in third place. Ball scored first in the categories corporate values, management quality and long-term investment.

Real success with virtual reality: Business Manager Larissa Laternser and Sales Director Central Eastern Europe, Frank Sasse.

Better than reality There was a double success for Ball Packaging Europe in the competition “Top Trading Product” in 2012: gold was awarded for the augmented reality campaign “Come and get your Fizzy Beast.“ For the “Interactive Can” of the German MiXery beer brand, Ball received the silver medal in the multi-channel category. Ball had developed the interactive 3D fizzy animal including photomechanics and Facebook viral for the introduction of the new flavour ”Cool Cola-Orange” of German retailer Edeka-Hessenring’s own brand Perlquell. With the help of the augmented reality application from junaio, the fizzy animal comes to life when the can design is scanned with a smart phone. In the display, the fizzy animal poses for photos which are posted via Facebook or sent by e-mail. There is a similar innovation in the case of MiXery from the German Karlsberg brewery: whoever scans the can passes through a virtual secret door into the fan community on the taste´n´play platform. Further development is already being retailed: by means of augmented reality you meet Nathan Drake, the hero of the Sony video game “Uncharted.“ Every fan can photograph himself/herself together with the adventurer and send the snapshot to friends.

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New sustainability report The third sustainability report from Ball shows successes and opportunities.

Waste per Disposal Route

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ustainability does not stop at a plant’s door. At Ball, commitment to sustainability has run deep through the company for over 130 years. The latest sustainability report for 2010/2011 is a continuing example of that pledge and recounts Ball’s progress over the past two years while identifying future sustainability goals. Both progress and goals are driven by measuring and improving sustainability within Ball’s facilities, and broadening its collaboration with suppliers and customers for greater efficiencies within Ball’s product supply chain. During the 2010/2011 reporting period, Ball made significant progress on numerous sustainability aspects:

Less Energy and Water Consumption Energy Consumption in billion kilowatt hours

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3.36

12 %

3.27

3.07

3.22

Water Consumption in billion cubic meters 3.37

5.77

5.57

5.21

5.73

6.16

100 % 90 % 88 %

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100 % 94 % 74 % 61 %

25 Recycling/Reuse Landfill Other Waste Treatment Energy Recovery

2007

Significant Decrease in Incident Rates 3.9

100 %

3.2 2.3

2007 2008

2.2

2009 2010

1.7

44 %

2011

recordable incidents per 200.000 hours worked

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2008

2009

2010 Plastics Can Slugs

2011

2007 Extruded aluminum packaging Aerospace

2008

2009

2010

2011

normalized values of different product groups


Sustainability

ECONOMIC

Ball generated over $1 billion in free cash flow to support our efforts to be economically sustainable. The total investment in Ball’s businesses was $694 million.

Environmental

Ball exceeded its global, 10-year greenhouse gas emissions reduction goal of 16 percent two years early, through continuous efforts to improve energy efficiencies.

SOCIAL

Ball improved its safety record by reducing the total recordable incident report by 27 percent, achieving far lower levels than its industry peers as reported by the U.S. Bureau of labor Statistics. The Ball Foundation was launched to take a strategic approach to charitable giving. Overall, Ball contributed more than $6.5 million (US dollars) to our communities around the world. Sustainability is the responsibility of each and every one of Ball’s 14,300 employees and those efforts are the reason for its success. With the correct balance of economic, ecological and social goals moving forward, Ball plans to continue doing business in a sustainable and successful way for the next 130 years.

“Becoming more sustainable means thinking long term – a hallmark of Ball’s history and a key component of our Drive for 10 vision.” John A. Hayes

President and CEO Ball Corporation

Contact: sustainability@ball.com

Discover more about Ball’s sustainability: http://www.ball.com/sustainability/

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Keeps your water fresh Perrier Slim Can: a new on-the-go format

Perrier has chosen this summer for the international launch of its Slim Can, a new range of narrow and elegant 25 cl cans with a sleek and modern style. The Slim Can is specially designed for people who want to recapture the Perrier experience in a handy format.  This new format will help attract young consumers and develop new, on-the-go consumption territories internationally: the user-friendly format is ideal for ultimate refreshment  night and day. Original, fresh, unfalsified: that is how consumers want to drink their water. It is quite natural in that case that they choose the can increasingly often. Perrier is at home in 140 countries and as of June, also in the 25 cl (8.4oz) slim can. The Perrier green can, accentuated with silver and yellow, itself provides attractive allure with its

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thermochromic ink. In the fridge the snowflake on the metal cylinder turns blue, signaling that the water inside is at the perfect temperature for drinking. “Combining the most widely recognized sparkling water in the world with the most recycled beverage packaging in the world provides consumers with a new, exciting choice in premium beverages in cans,” explains Michael L. Hranicka, president of Ball’s metal packaging division in the US.

Hiball: Cool Color Change

The pioneer of sparkling energy water, Hiball Energy from San Francisco, is now using Ball’s 16 oz large aluminum can to market organic-based sparkling energy water and energy drinks. The can in this case replaces the glass bottle. The company’s founder and Hiball’s president, Todd Berardi, explained his decision to choose cans. “They would like to have a larger size with a more portable packaging op-


Innovation

Original, refreshing, chilled: that is how consumers want to drink their water. As a result, they increasingly choose the can.

tion.” The West-coast entrepreneur with a wealth of ideas also made use of one of the can’s fascinating possibilities: the Hiball energy package is coated with thermochromic ink from Chromatic Technologies, Inc. As soon as the cans have cooled down to 45 degrees Fahrenheit (8 degrees Centigrade), the white bubbles of the can design become blue, signaling that the Hiball Energy Drink is perfectly chilled.

CW4K: Water for life

CannedWater4Kids. After the earthquake, the tsunami and the atomic disaster in Japan, CW4K sent drinking water in cans to Japan as part of a spontaneous aid operation. It was a unique event after this particularly serious disaster. Currently CW4K is supporting three long-term projects in Guatemala, in Zambia and in Tanzania. Ball has honored CW4K with a “Can Ambassador Award“ and continues to support the organization.

Contact: www.cannedwater4kids.com

The United Nations estimates that more than one billion people – every fifth inhabitant of the planet Earth – has no access to clean, healthy water. That’s why CannedWater4Kids (CW4K), an aid organization from Sussex, Wisconsin, supported by Ball, was formed. “The water that we drink every day and hardly give a second thought about, is a scarce commodity for countless children around the world,“ says Greg Stromberg, CEO of

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Customer wishes fulfilled Ball’s Technical Center has put a new tailor-made test filling unit into operation.

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More than 25 years experience in can filling: Wilfried Mohr working at the new test filling unit.

sleek and more precise fast test filling unit now stands in the laboratory of Ball’s Technical Centre in Bonn, Germany. It is a testament to the ingenuity of the employees of Ball that the most modern unit in the filling sector is currently available for batch testing our customers’ products. Working together with KHS GmbH, an international manufacturer of filling and packaging systems for the beverage industry, Ball’s Georg Janssen and his five member team installed the first of its kind test filling unit to meet the needs of Ball’s customers. “The new machine is a quantum leap. We can now fill test batches more precisely and fullfil our customers’ wishes much better than before with the new equipment,” says Georg Janssen, Manager Packaging Technology. The new system can fill upto 2,400 cans per hour and complies with today’s more stringent hygiene regulations and can process pasteurized liquids as easily as widget fillings. Concentrated high tech, which if necessary would fit onto the load bed of a truck. The filling and packaging plant constructor KHS has developed the new test filling machine as a worldwide unique item exactly in keeping with the ideas of Ball’s experts. The sealing machine from Ferrum completes the unit.

Quality control is seamless from the time the workers place can blanks on the conveyor belt to the end where ready-filled test cans are sealed with aluminum ends. And it doesn’t stop there. Next door, in the Technical Center’s laboratory – managed by Sabine Köppe – the cans are thoroughly examined for physical, biological and chemical defects. These tests are done prior to any Ball beverage can innovation being placed on the market. The new test-filling unit is another addition to the comprehensive services that Ball provides for its customers. “The staff of Ball’s Bonn Technical Center is available every day to provide the expertise and support to our customers to ensure that their beverages enjoy a long shelf-life in our cans,” said Sabine Köppe. The Bonn test filling unit is available to all of Ball’s customers – after prior consultation – for their own test batch filling needs. Contact persons: Sabine Köppe e-mail: sabine.koeppe@ball.com phone: +49 228 557 3675 Georg Janssen e-mail: georg.janssen@ball.com phone: +49 228 557 3661

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ype the word “health” in the search field in Google and you will find 7.33 billion entries. But it is not quantity alone that makes a mega trend – it is how it grabs hold of the public’s attention and grows to fit new definitions and needs. That is how, for example, Hollywood stars Megan Fox and Gwyneth Paltrow see it. They swear by green vegetable juices, what are known as green drinks. For them they are seen as the new “in” drink, a real vitamin boost with an all around wonderful effect: reducing cholesterol, improving digestion and slowing down aging. What the two film stars have recognized as being useful for themselves also has a large number of “followers.” The experts from “Global Industry Analysts,“ San José, California, predict double-digit growth per year for the world market of fruit and vegetable juices – and a quantity of 72.29 billion of consumed litres in 2017. The “lifestyle of health and

Health & Wellness!

Wellness awareness makes consumers sensitive to what they eat and drink. And it’s evolving.

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Cover Story

sustainability,“ Lohas for short, has long since made it to the front page of rankings of lifestyles in the marketing world. Many people already see in the attributes “rich,“ but “sustainable” something like the guiding trend for the European lifestyle. Ball’s trend researchers have widened this angle with the addition of new consumer groups. Lohas to Ball are people who want to combine market economy and ecology, individualism and responsibility. There are also consumers who follow the idea of “life balancing,” that is, trying to bring mind, body and soul into harmony. These consumers have overcome materialism and instead pursue values such as sustainability, trust, ethics and social justice. Those who just live for the moment complete this trio. They are looking for fun and adventure. “Instant performance” is their motto. In their case, organic and ecological products are one way to increase performance and capabilities even further. That is

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Cover Story

To continue to grow, most prominent beverage producers are investing lots of creativity and money into the exploration of new, healthier soft drinks – colas with an additional benefit for the body and the mind.

why they choose “power food” and believe food is a benefit for body and mind. All three groups together are ideal consumers of beverages that are placed on the market in cans. Sealed away in easily portable lightproof and air-tight metal containers, with the contents stored in a manner that is neutral in taste, easy to transport, quick-chilling and recycled again and again, the beverage can is the ideal package for these sophisticated consumer groups. These groups offer opportunity to the producers of soft drinks who supply the thirsty world with more than 200 billion litres of lemonade and cola every year. To continue to grow, leading beverage producers are investing lots of creativity and money into the exploration of new, healthier soft drinks – drinks with an additional benefit for the body and the mind. One area of focus is the search for white sugar substitutes. Mexican agave syrup, xylitol (birch sugar) or stevia extracted from sweetleaf are available as substitutes. Xylitol is said to offer, besides its sweet effect, the prevention of tooth decay, osteoporosis and inflammation of the middle ear – all intriguing

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benefits for use in beverages and ice teas which currently contain a lot of sugar. Highly concentrated stevia is also a potential sweetener. Extracted from a plant that was originally native to South America, stevia struggled for decades with licensing authorities in the USA and Europe before becoming recognized as a safe food additive. In France, Fanta and Sprite sweetened with stevia is already on sale. In the United States, Pepsi has launched the “Trop50” fruit nectar. Together with the steadily growing quantity of energy drinks and special, less-sweet lemonades for adults, this large sector of carbonated soft drinks is currently being “reinvented.” In the sector of beer and mixed drinks, ideas are fermenting as well. Whether continued intensive efforts are being made to find a way to produce a tasty, low-alcohol beer or to combine beer and vodka to a 3.8 volume percent energy drink: here, too, the market, driven by the megatrend health & wellness, is constantly on the look-out for new products in order to be able to meet consumers’ wishes even better.

Functional Drinks are on the Rise


So light The new sleek can made of aluminum is sleek in the market as well as on the weight scale. On the scales it is an absolute lightweight: just 9.5 grams in the case of the new 33 cl (11.1.02) sleek can made of aluminum. It is an ideal package for the growing trend toward health & wellness: healthy drinks, low calories, lot of taste – all of that fits into Ball’s aluminum sleek can. The slim, graceful beauty is now being produced by Ball for the first time in the company’s Dutch plant in Oss. It is a continuation of the success story in Europe that began with a sleek can made of steel that Ball placed on the market in 2004 and today is still being produced in Weißenthurm, Germany. The aluminum sleek can is well suited to all sophisticated beverages increasingly popular with consumers today, including energy drinks, ready-to-drink teas, cider or ultramodern types of beer with minimal or no alcohol content. The sleek can cuts a fine figure, and reliably transfers the three to five percent market growth of these trend beverages to marketing successes of our customers. So ask for the new, 33 cl sleek can made completely of aluminum!

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The eye catcher 1-2012 p Can courier p 17


The eye catcher

It is the market hit of the season: a package for sophisticated lifestyles and first-class events. The new aluminum bottle from Ball is something everyone wants to get their hands on.

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umbling and booming techno house in the Smoove, one of the classiest London clubs on Gaunt Street. Breathtakingly beautiful and excellently dressed scenesters in a sparkling party mood with a beer mix beverage in their hands. That is exactly the scene that Ball’s aluminum bottle is made for. The matte shimmering metal bottle is already one of the year’s most powerful innovations. The message in the bottle is clear: it positions brand name beverages as pure luxury in the premium beverage market segment. The aluminum bottle is an eye catcher and something that begs to be touched at the same time. “At present there is no package that radiates a stronger statement in the segment of sophisticated lifestyle in the retail shelves,” says Thomas Haensch, vice president sales, marketing & innovation at Ball Packaging Europe. Nothing else catches the eye as directly and sustainably as beverages that use the aluminum bottle as a package. They have an all-around strong appearance at the point of sale. And the experience of drinking from a cooled aluminum bottle is simply extraordinary. “What is more, our aluminum bottle is a good complement to the Alumi-Tek® bottle that Ball has been marketing in the USA with growing success since 2007,” adds Robert Miles, senior vice president, sales, for Ball‘s metal beverage packaging division, Americas. Alumi-Tek® bottles offer many advantages, including resealability, portability, high recycling rates, brand building graphics and beneficial economics to name just a few. Craft brewers and consumers alike are reaching for aluminum bottles because of the distinctive shape, perfect for premium beverages.

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In Europe, Ball is now also producing the extruded aluminum bottle, for all types of sophisticated beverages: premium beer, aromatized water, high-class energy drinks, cider and wine. Since spring 2012 the aluminum bottle can be produced by Ball Aerocan in the Czech Republic. Ball Aerocan has the technical know-how and many years of experience in the production of extruded aluminum bottles. This year Ball has a production capacity of about 20 million units for this luxury innovation. The extruded aluminum bottle exists in two sizes: 33 and 50 cl, and is sealed with a crown cap. A large range of design possibilities are available with the bottle. Eight different offset colors can be used. In addition there is an option of a matte or semi-matte finish. And the most outstanding feature is that at our customers’ request the neck of the bottle can be printed “anamorphically.” That means so cleverly that the motif on the slim neck of the bottle looks undistorted and totally natural – simply a real eye catcher. And there is one more advantage for Ball’s customers: the aluminum bottle can be filled on filling lines for glass bottles. Ball’s Customer Technical Service (CTS) led by Helmut Doetsch is standing by to take a close look at the filling plants of customers, so everyone who chooses the aluminum bottle can be assured for a smooth transition. In fact, Ball gives a 12-month guarantee on its extruded aluminum bottles. And at the end of a cycle the same conditions apply as for our traditional beverage cans made of aluminum: they are 100 percent recyclable. The Alumi-Tec® bottle in a limited edition for Chaka beer – a perfect packaging for a distinctive beer.


Innovation

New: recycling material in slugs

ReAl™ – the new alloy from Ball – permits for the first time the use of recycled aluminum for the production of extruded aluminum packages. Until now, these packages were made solely from new aluminum, used to make “slugs”. These metal discs are shaped in extrusion presses to make containers for body sprays, sunscreen products, air fresheners and numerous other products. The innovative metal alloy has a brand name of its own: ReAl™. It is considerably stronger than virgin aluminum, enabling lightweighting of the package by an initial 10 percent. “Our ReAl™ brand slugs will improve the carbon footprint of increasingly popular extruded aluminum packaging by enabling us to reduce the amount of metal in the package and further enhance the environmental performance of our company,” said Raymond J. Seabrook, the company’s chief operating officer, global packaging. “This breakthrough comes after months of collaboration between our global metal technology experts and innovation teams, and brings additional value to the supply chain by adding recycled aluminum from our beverage can plants into our slug manufacturing processes and by lightweighting our extruded aluminum packaging. We are excited to bring this new solution to our customers around the world in the coming months.”

NEW

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“While food is wasted, millions of people are starving. And One third of all the food produced for human consumption lands directly in the rubbish bin. How does this Waste Happen?� 20 p Cancourier p 1-2012


Sustainability

No appetite for waste The waste of food produces greenhouse gases and leaves lots of humans with empty stomachs. The Save Food initiative is fighting to get more food to people who need it.

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t doesn’t matter if it is fish, meat, bread or apples – far too often, foods land not on a plate but directly in the rubbish bin. About 1.3 billion metric tons of food is wasted each year on the way from the producer to the consumer. That corresponds to a third of all the food produced for human consumption. At the same time, millions of people are starving. How does this waste happen? Farmers plough vegetables under while still in the field, because they do not comply with any trading standard. In the supermarket, fruit lands in the rubbish bin due merely to a few cosmetic blemishes. And consumers dispose of unused packages because the best-before-date has been exceeded even by a few days. The shocking figures and notes originate from the “Food and Agriculture Organization” (FAO), the world nutrition organization of the United Nations (UN). The calculations were made by scientists of the Swedish Institute of Food and Biotechnology (SIK). They travelled through 151 countries – rich regions like Europe including Russia, North America and Oceania, as well as the industrialized countries of Asia (Chi-

na, Japan, South Korea) – and in regions with lower incomes: sub-Saharan Africa and North Africa, West and Central Asia, South, South-East Asia and Latin America. They found waste among the rich and the poor, though for different reasons. In the poor regions the majority of losses occurred at the beginning of the food supply chain. A lack of information regarding market demands and regulations led to production taking place for foods few wanted to buy. Sometimes harvests were not collected at all. And food that is harvested perished quickly due to lack of proper cooling in tropical regions. What did make it to consumers in poor countries was only rarely thrown away. By contrast, in rich regions like China, North America and Europe, consumers often shopped without enough planning and excessively. Despite a refrigerator, many forgotten food items perish. And the expiry date on foodstuffs is not questioned – it is used as an argument for disposal. The Swedish scientists working on behalf of the FAO found waste on an incredible scale –

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Three questions with Bjoern Kulmann

“The can is uniquely qualified to reduce waste.” Bjoern Kulmann, you are the global director of sustainability at Ball Corporation. What role do cans play in the reduction of food waste? Beverage, food and aerosol cans are durable containers that protect the products inside for long periods of time. Most cans easily and safely store products for a year or more, until they are needed. Why does that matter? Well, about 40 percent of the food produced in the US is never eaten. In fact, consumers throw out 26 million tons of food each year, or about a quarter of what they purchase. Cans make products available when people want to consume them, and lock in nutrition and freshness for longer periods of time than fresh or frozen food. The many different can sizes available for consumers also offer choices in portion sizes for beverages and foods. What contribution can Ball make? The essence of sustainability is making the most use of what we have and minimizing our depletion of natural resources. Cans are the most recycled beverage and food package in the world. They are made from recycled and abundant materials, recycling cans saves energy versus using virgin materials and cans are an economically efficient package for producers, retailers and consumers. Our focus has been to provide consumers with an appealing package that offers convenience, portability and exciting new features. In addition, Ball supports recycling initiatives and helps educate consumers on the benefits of recycling cans. Can packaging really make a difference in reducing waste? Packaging plays an important role in minimizing the stress on our planet and should be viewed as part of the solution. No package is perfect, and all packaging necessarily requires some degree of energy or natural resource inputs. The key is to determine which package provides the greatest overall benefit to consumers and society. The can is uniquely qualified to reduce waste. It has the highest recycling rate, minimizing landfill waste. It’s the most durable and robust container, minimizing spoilage and food waste. And it does so without requiring refrigeration or freezing on shelves or at home, minimizing energy consumption and saving money.

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about 1.3 billion metric tons of discarded food. In order to move this mass, you would need about 2,750,000 trucks. Arranged in a row, this would produce a 45,000 kilometre [about 28,000 miles] long column: once around the Earth’s equator and a further 5,000 kilometres. Save Food now wants to end this waste. Together with other companies, Ball is among the supporters of the initiative. The campaign is involved in efforts that address the root causes of food waste. In the regions yet to be developed, the farmers and the food producers get to know and to appreciate the value of the food packages such as cans as protection and a shelf-life-extending element. In rich countries, the obligation lies less mainly with the consumers. In Europe and North America, consumers dispose of between 95 and 115 kilograms per capita per year of food as waste although it would still be suitable for eating. The World Food Organization FAO cites two key figures that drive their efforts: in the year 2050, the Earth will feed a projected population totaling nine billion people. The FAO says the output of food producers must be increased by a full 70 percent in order to be able to supply nine billion people with even the most basic things. The FAO is convinced that reducing waste will fill a large part of the gap. In addition, however, FAO notes our planet cannot afford the waste of food, because it means enormous waste of water, soil and energy and at the same time produces huge quantities of greenhouse gases. According to FAO, the production of a kilogram of food causes a kilogram of the greenhouse gas carbon dioxide (CO2). 1.3 billion metric tons of wasted food corresponds to 1.3 billion metric tons of CO2, roughly five percent of the global carbon dioxide emissions each year. The waste of food means some people starve, and it also can contribute to climate change, according to FAO. That’s what the Save Food initiative wants to stop.


Sustainability

Swedish scientists working on behalf of the FAO found waste on an incredible scale – about 1.3 billion metric tons of discarded food. To move this mass, it would take about 2,750,000 trucks.

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Ball Expanding in Growing Asia Beverage Can Markets Ball has opened two new beverage can plants to serve the fast growing Asia markets. In Qingdao, China, Ball invested $75 million to build a state-of-the-art plant featuring numerous sustainable practices. The plant produces 100 percent recyclable aluminum beverage cans on high-speed production lines. “Beverage cans are the most recycled beverage packaging in the world, and the longterm sustainability of our products and our facilities is vital to Ball’s continued success in Asia,” said Gihan Atapattu, president of Ball Asia Pacific Ltd. “Our Qingdao plant was built from the beginning with sustainability in mind, and will supply high-quality beverage packaging to our customers using the latest in energy- and waterefficient practices.”

Special features include: • A geothermal heating-cooling for the plant’s office area, which can raise the ambient temperature in the winter and lower it in the summer • High efficiency ovens and motors • A water reuse system that is part of the plant’s waste water treatment process.

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In Ho Chi Minh City, Vietnam, Ball opened a joint venture beverage can plant with Thai Beverage Can Ltd. “The growth of the middle class in Southeast Asia, and the preference of consumers there for beverage cans, continue to increase demand for our containers,” said Raymond J. Seabrook, executive vice president and chief operating officer, global packaging. “The beverage can market in the region is projected to grow more than 15 percent annually over the next several years. We have operated a joint venture beverage can plant in Thailand with Thai Beverage Can since 1996, and have worked closely with our partners as we have expanded into emerging markets. This Vietnam plant fits our long-term strategy to grow our worldwide beverage can business to meet increasing demand from our customers.” The one-line plant primarily uses equipment relocated from other Ball facilities. The total value of the joint venture, including contributed equipment by Ball, is approximately $45 million. The plant will supply contracted customers in Vietnam as well as export beverage cans to adjacent countries, and can be expanded to meet growing demand.


Can World

Think Tank In this year´s 10th European Can School more than 40 participants learned in three days everything about beverage cans and end manufacturing including innovation, graphics, supply & demand, health & safety and sustainability. For the better understanding all participants are invited to a tour through our beverage can plant in Weißenthurm and our Technical Center in Bonn. Since 2006 Ball experts in Europe have introduced the beverage can and the production of this high tech product to interested customers.

Best of Craft Beer Can Designs

Well packaged in cans at two fairs

More wine debuted in Ball cans at the fairs “Anuga Food Tech 2012“ (Cologne, 27th to 30th March) and the 31st London Wine Fair (22nd to 24th May.) Ball was represented with its innovative wine cans. In Cologne the motto was “Boost your brand with beverage cans.“ There the focus was on the young hip consumer, for whom the can is the optimum package. In London the wine can was presented as a premium product, with which new target groups can be reached.

The best can graphics in the craft beer industry were on display as part of the first annual “Canny” Awards, a competition that recognizes the high-quality, captivating graphics featured on craft beer in cans. Awards were presented during the Craft Brewers Conference, May 2-5 in San Diego, California. During this inaugural competition, 83 craft breweries submitted 231 entries in seven categories. The Craft Can of the Year went to Bitter American Extra Pale Ale by 21st Amendment Brewery, with second place going to The Corruption IPA by DC Brau and third place to Johnny’s America IPA by Moab Brewery.

1-2012 p Can courier p 25


Faster in the In order to innovate faster and be even closer to customers, Ball Packaging Europe has repositioned the areas of sales, marketing and innovation. Can Courier spoke to Thomas Haensch, vice president of sales, marketing and innovation in Europe, about these changes.

What steps do you see ahead to continue the success of the beverage can? More innovation, certainly. Our product development pipeline is very well filled. From a strategic point of view we want to push forward into new, rapidly growing market segments. I’m thinking there about health and wellness drinks, new drinks known as functional drinks with healthpromoting additives, aromatized water, but also wine, low-alcohol beers and shandies – drinks that mix alcohol with other beverages. For these drinks the can is the package of choice to reach young adult target groups and to become established as a trend beverage. The beverage can will also of course remain a mass product in the future. Yet, with an increasing differentiation of life styles and consumer preferences, the beverage can will gain more strongly in importance as a highly customized package tailored exactly to the beverage brand and its respective target group. Our research and development projects for further customizing in-can design are divided into three areas: the expansion of can shapes and sizes, the design of the can wall by means of haptically appealing designs and new developments in the area of can ends, such as different forms of resealability.

26 p Can courier p 1-2012

“Our customers are, like us, interested in concentrating on those innovations which have the best possible prospects of commercial success, and developing them with the greatest possible ‘speed to market.’”

Were these the reasons for the reorganization of sales, marketing and innovation? The long-term trend toward customizing among the consumers’ preferences means for us as beverage can producers that we have to understand our customers and above and beyond that also the wishes of the consumers even better. Our customers are, like us, interested in concentrating on those innovations which have the best possible prospects of commercial success, and developing them with the greatest possible “speed to market.” Therefore we have repositioned the areas of sales, marketing and innovation and enmeshed them more tightly in order to be able to supply our customers with packaging solutions which meet the demands in the market more accurately. We have strengthened the interfaces between innovation, marketing and sales considerably and have redefined processes in order to ensure that the needs of consumers and customers are always the driving factor for all the projects in our research and development area. Moreover these changes are also part of a much more comprehensive reorganization of our company which includes, among other things, management and further strategic functions of Ball Packaging Europe being transferred to Zürich. The aim of this reorganization is to further increase our customer orientation overall and also our competitiveness.


Markets

market And therefore there are now a lot of new faces at Ball who attend to the needs of the European customers? Yes and no. In our sales team we are continuing to rely on the significant experience of our longserving managers. But we have restructured the areas of responsibility, since we know that the globally operating brand manufacturers among our customers have different requirements from young, promising start-ups that want to place a new product on the market. Also in the case of tried and proven instruments we are relying on continuity, such as our regular VIP customer surveys which ensure a continuous cycle of customer satisfaction analyses and improvement measures. And with new customer-relationship management software, which we call The Hub, our sales team has a very good, powerful tool at its disposal in order to keep all data and insights permanently up to date. There are also new faces – in marketing we have created new areas of activity and taken some capable new staff on board.

What role does the newly introduced product management play in the case of consumer brands, which have already used this for some time? The brand manufacturers have been very successfully using product management for a long time. As a B-to-B company, we can learn something there. Our business managers are to intensively observe their respective submarkets through the eyes of our customers, and they will explore opportunities with regard to the needs profiles of the target groups. With the business managers we have, the people responsible for processes keep an eye both on the technical and the economic developments in a balanced way. They are responsible for selling products and as importantly contribute to Ball developing the greatest added value for its customers.

“With an increasing differentiation of life styles and consumer preferences, the beverage can will gain more strongly in importance as a highly customized package tailored exactly to the beverage brand and its respective target group.�

Thomas Haensch Thomas Haensch joined Ball Packaging Europe in May 2011 and has been Vice President Sales, Marketing & Innovation since January 2012. Previously he worked for large consumer goods producers including Gillette, Wella Professional, Sebastian Inc., Procter & Gamble and Grohe AG.

1-2012 p Can courier p 27


Leap through the rings

The year 2012 heralds great sporting events that are not only opportunities for the athletes but also a time for marketers and beverage cans to show what they can do.

F

Cans with tailormade designs are the first choice for sports events.

irst the ball rolled, and then the whole world will be gazing at five colored rings this summer. Two major sports events dominate 2012: after the European Football Championship (8th June until 1st July) the Olympic Games are upcoming (27th July until 12th August). For marketing experts this is a marathon of opportunities. Many of them have already incorporated the beverage can into their plans as a way to clearly distinguish their brands in a competitive business environment. “Make every season a peak season“ is the heading over a bundle full of ideas from Ball for its customers in Europe. Of course the most important sports events of the year are its central theme. Whoever makes use of the graphic possibilities of the beverage can gains in reputation and brand strength. The media data speak a clear language: TV ratings close to the 80 percent mark and hundreds of thousands of enthusiastic fans who get together at thousands of locations for communal TV viewing – this is the playing field for marketers and brands. Whether soft drink, energy drink or beer – they all profit from cans designed especially for these sport events. The beverage can provides 360 degrees of design opportunities, by means of special colors or surface finishes, innovative look and feel experiences are obtained which sports fans will never forget. May the best win? The consumer can playfully implement this Olympic

28 p Can courier p 1-2012

idea with beverage cans. For example, you can start a lottery by engraving numbers under tabs with a laser. If the consumer has won he can see inside the can after enjoying a cold drink. In such a competition anyone can leave the field as a winner. And for fans on


Markets

the way to the sports arena, the can supplies with his/her favorite cold beverage in an unbreakable and shatterproof package. A premium product is involved? Then the matte-brushed aluminum bottle (see pages 16-19) is the right choice. It makes a beverage stand out against the masses, protects it like a can and offers shape and a unique drinking experience. And there is more: whether festival, sports party, barbecue or beach party – in the summer lots of people like to dance the night away in their bare feet. Why should an event manager jeopardize a Californian way of life with glass bottles that can break? In addition, beverage cans with QR codes offer opportunities for sup-

plementing simple beverage consumption with a large number of playful or informative elements. With “augmented reality,” a corresponding app and programming, the reality can be enhanced without a code: simply scan a product by smart phone and link the real and the cloud worlds with each other. Ball representatives are making consumers aware of the advantages of recycling beverage cans. In the UK, for example, Ball started the Every Can Counts program in 2008. This year the action group – in coopera– tion with local authorities – is planning to set up a number of Every Can Counts Ecopacktours in Weymouth on the south coast

of England, where Olympic sailing events will be taking place. There will be an opportunity to determine the recycling champions away from the regattas that yields tangible advantages for the environment: recycling of beverage cans saves up to 95% of the energy required for the production of new material and CO2 emissions are also reduced by up to 95%. That means that the higher the recycling rate, the lower the CO2 emissions. Making as many consumers as possible aware of these relationships is one of Ball‘s goals.

Cans for fans: For sports fans it is a great year with the European Football Championship and the Olympic Games. Of course, the beverage can belongs to each fan equipment, be it on the way to the stadium or at collective viewing locations. Scan the QR code to learn more about the options for tailor-made cans for sports fans.

www. ball-europe.com

1-2012 p Can courier p 29


30 p Can courier p 1-2012


MARKEts

T

60

68

65

% 50

53

59

For most European consumers environmental protection is important in choosing their beverage containers.

What consumers want Women want light packages that are Women easy to store and can be resealed and reused

14-17

The 14 to 17 year olds most want packages that look cool and attractive

35-54

The 35 to 54 year olds are more interested in recycling and are markedly more price conscious. They want to have stable and manipulation-proof packages

Can consumption trends in Europe

CSD

n n n

n

n

Beer

n

he beverage can is becoming increasingly popular in Germany. Evidence of this is provided by a representative study by the consumer research organization Gesellschaft für Konsumforschung (GfK)[1]. As early as 2007, the market research institute had surveyed more than 1,000 consumers concerning their drinking habits. Since then the purchase of beverage cans in Germany has doubled. Also in the UK, France and Spain the consumer chooses the beverage can more frequently compared to 2007. It is appreciated by consumers in all countries as a modern, refreshing and recyclable package. And not only that: more frequently than in the case of any other package, consumers say that the beverage can above all delivers cool refreshment – great news for brands in cans. That is all according to a consumer study conducted by the Nuremberg Gesellschaft für Konsumforschung (GfK) in the middle of 2011. The association of the European beverage can industry, BCME, requested a representative survey of consumers in the UK, France, Spain and Germany.

70

n

Consumers surveyed in the United Kingdom, France, Spain and Germany give the can high marks.

Consumer preferences for green packaging

n

The Can Delivers

Gesellschaft für Konsumforschung (GfK) on behalf of BCME (Beverage Can Makers Europe), June 2011

[1]

1-2012 p Can courier p 31


On the shopping list 71 66

Best-known can advantages

in %

Unbreakable in % 30

40

46 43 44

61

60

39 34

53

29

50 50

58

Cool and trendy in % 13 15 13

28

spontaneously

2007 2011

26

Most Europeans have beverage cans expressly on their shopping list.

planned

27

�I know that cans are recyclable...“

32 34

57 50

The Price in % 14

38

33 45

29 35

45 47

37

in % of respondents

71

The knowledge about the recycling of cans is quite different in Europe.


MARKEts

Above all, male consumers and teenagers between 14 and 17 years of age prefer cans to plastic or glass bottles. The survey found the needs of consumers have hardly changed since 2007 – and they are comparable across national borders: • Taste is the most important requirement of consumers, closely followed by the price/ performance ratio (“good value for money”) and easy handling • The recyclability of packaging remains important • The design of the package is becoming increasingly important to the consumers. In the UK, the biggest European beverage can market, cans are the dominate package in the beer segment and are increasingly gaining market share in the area of energy drinks. In Spain, beverage cans are the most popular packaging for beer consumption at home, however, the consumption of cans for carbonated soft drinks has decreased. In France, a marked increase in beer in cans has been recorded, but their share in the beer segment has room to grow. On the other hand, French consumers prefer carbonated soft drinks in beverage cans. In Germany, in younger age groups a completely new generation of consumers is growing up as “can fans.” Twenty percent of the Germans surveyed stated that they consumed beverages from cans several times a week. This figure has doubled compared to 2007, when the number was nine percent. Above all, male consumers and teenagers between 14 and 17 years of age prefer cans to plastic or glass bottles. The popular sports and energy drinks give the beverage can an additional boost. It is considered “hip“ to be seen with a stylishly designed can.

The survey’s conclusion is this: in the eyes of consumers, a cool refreshment is the most important strength of the can and should be moved to the forefront in advertising and communication particularly in the case of beer. The increasing importance that consumers attach to the package design is an opportunity for brand manufacturers and package producers to emphasize the advantages of the brands by means of new printing technologies and other innovative can design techniques.

More recycling

With 95 percent, Germany has the highest recycling rate throughout Europe in the case of beverage cans. This high value is reflected in the awareness of consumers: 81 percent of consumers are of the opinion that beverage cans are generally recyclable. More than half of German consumers (57 percent) know even more – that cans are infinitely recyclable. In the UK, consumer awareness of the fact that beverage cans are recyclable – as well as the positive attitude of consumers to the subject of recycling in general – is increasing. By contrast, the French tend to request more information on the subject of recycling. In 2009, the European average value for the recycling of beverage cans of 66 percent was already clearly higher than the comparable figures for other beverage packaging types such as cartons, glass or plastic bottles. Beverage can producers now want to further expand this lead. The European beverage can industry’s goal is that in 2015, 75 percent of all the beverage cans in Europe will be recycled.

1-2012 p Can courier p 33


art

T

he metal with the atomic number 13 in the periodic table of the elements shimmers: aluminum – a material of the future which makes cars and planes but also beverage cans lighter, energy-saving or quite simply – faster. “I grew up with aluminum. My father worked in an aluminum plant and my brother still does. And I am – now as ever – fascinated by aluminum,” says the photographer Susanne Dobler. For two years the industrial and advertising photographer spent a lot of time working with the valuable metal. In 2008, she started “Project 13“ by visiting aluminum producers and processors in Germany – and also photographed Ball’s beverage can plant in Hermsdorf, Saxony-Anhalt. At 660.4 degrees Centigrade aluminum melts and becomes liquid. Taming the bubbling soup, having it set into ingots or strips and winding the latter to form coils weighing several tons, intrigues Dobler. “Whether liquid or solid – at every stage, aluminum refracts the light differently,” explains Dobler. In Ball’s beverage can production facilities the high speed line of cans on the conveyor belts and the masses of uniform can bodies grouped together formed abstract motifs in her photos.

The can production in Ball’s Hermsdorf plant – from the artistic perspective of the photographer Susanne Dobler.

Fascinating 13 Susanne Dobler photographs aluminum. Light refraction and light reflections fascinate her. For her “Project 13“ she visited one of Ball’s beverage can plants and captured images that are great works of art.

Susanne Dobler Born in Neuss in 1967, she trained as a fashion and advertising photographer at Horst Wackerbarth’s. Today she lives and works in Dormagen near Cologne as an industrial and people photographer. “Project 13“ is an art project about the material aluminum Dobler started in 2008.

What she captured of all this with her camera she herself has imprinted onto aluminum. These sheets of aluminum are works of art illustrating the fascinating structure of the metal in light and shadow. The exhibition at the end of last year was an enormous success. Now the photographer Susanne Dobler is working on giving the aluminum a voice: “The next thing is that video installations will be created to give voice to the special sounds of the metal.” For example, the sound of tens of thousands of beverage cans on the way to be filled. “That clattering sound is a unique and special noise,“ she said.

Further information at www.susannedobler.de

1-2012 p Can courier p 35


QR code: mobile bookmarking A QR code enables you to bookmark a web page with your mobile phone quickly and easily. With a QR code there is no need to type the full URL into your phone, instead you simply scan the image. Your phone reads it, converts it back into the URL and stores it as a bookmark. Then you can use your phone to go online to that page. What you need • A mobile phone with a camera • A mobile phone with internet access if you want to go straight online • A QR code reader installed on the phone There may not be a QR code reader for some models of mobile phones. Downloads of readers We suggest you try these two websites, although others may offer a similar service: www.reader.kaywa.com www.quickmark.com.tw

Ball Europe GmbH Leutschenbachstr. 52 CH-8050 Zürich

www.ball-europe.com


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