Metsä Board Magazine autumn 2017

METSÄ BOARD STAKEHOLDER MAGAZINE AUTUMN 2017

BETTER WITH LESS Creating better and lighter paperboard solutions has been a guiding principle of Metsä Board for decades, but we have now clarified our offering and consolidated our know-how to serve you even better.

With this new approach we want to help our customers grow and strengthen their brands – with our harmonised product portfolio now offering more logic and transparency and our value-adding services playing a strong role.

Read on to discover how we want to, together with you, create better and more impactful packaging solutions with the least environmental impact. In short, bring you Better with Less.

THE ELEMENTS: | Cover: MetsäBoard Prime FBB Bright 190 g/m2 (10.2 pt). Cover effect: Soft-Touch dispersion Varnish and Gold Hot Foiling. Cover photography by Carl Kleiner.

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TABLE OF CONTENTS

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The circula r economy is the key s olution to support growing population s.

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16–18 Tak

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5 6 10

Editor ial Bites Think big,

think in circ les What 's in t he bo x?

16 Brand owne r insig hts 18 Consu mer in sights 20 Imple ment ing st rict ne 22 w legis From lation evolu requir tion to es de r dicatio e v o 25 lution n Captu ring t he im agina 28 tion Smar t from the st art 31 A unifi ed pro duct o ffering 34 make Supp s sele orting ction your b simple rand comm unica tion s ucces s

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EDITORIAL

Mika Joukio CEO, Metsä Board

Packaging is what a consumer sees first, even before the product. In addition to serving a practical purpose, the best packaging solutions convey a story and communicate a brand’s values.

Consumer lifestyles, population growth and scarcity of resources are setting new kinds of demands for packaging. Consumers require new experiences and added convenience, whether shopping in stores, online or on the go. At the same time, there is growing awareness of the challenges of increasing consumption and limited resources, and the future of the globe. For more and more consumers, sustainability is part of a positive shopping experience. People want to make the right choices for future generations.

Consumer expectations, together with tightening regulations in product safety and sustainability, are challenging companies to come up with new solutions. The best companies are already acting before it becomes a necessity, perceiving the changes not only as a challenge, but an opportunity.

Better with Less, innovating better and more lightweight paperboard solutions, has been in Metsä Board’s DNA for decades. We started to innovate for sustainability long before it became a trend, and are committed to improving further. Metsä Board is a global player, and many of our customers operate worldwide. That’s why both our choices can make a real difference. If we can make the packaging safer, lighter and easier to recycle, then we both operate more efficiently and create better consumer experiences, while making a contribution to our planet.

Premium looks sell, but good looks are not contradictory to sustainability – quite the opposite.

You can design a beautiful package with less impact on the environment if you think smart from the outset: through material-saving WE STARTED TO INNOVATE design, lightweight renewable materials, and structures enabling easier FOR SUSTAINABILITY LONG recyclability. I am excited about the many opportunities offered by this BEFORE IT BECAME A TREND, area, to be shared with brand owners and the entire packaging chain.

Combining looks and lightness is a winning combination, for AND ARE COMMITTED TO example, in e-commerce. The moment when you open your mail order IMPROVE FURTHER. package to reveal your purchase can be very exciting. This presents fantastic opportunities for us to engage and inspire the consumer. As many as 40% of consumers say that with premium online packaging, they are more likely to re-purchase. On top of that, what could be better than feeling good about the package, if it is sustainable, too?

These kinds of new, exciting opportunities are exactly what we want to support with our products and services which you can now find in one, unified Metsä Board family. Metsä means “forest” in Finnish, and the forest is where we have our roots. Sustainably managed northern European forests are home to the best raw material in the world: pure, safe and renewable fresh fibre, perfectly supporting the circular economy. Together with our partners, we want to create more sustainable, safe and efficient packaging solutions that are better for consumers and the world. I want to invite you all to join us on this journey, and to discuss how together we can do better with less.

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LIGHTWEIGHT BOARDS ARE RESOURCE EFFICIENT IN MANY WAYS: THEY CONSUME LESS RAW MATERIALS, DECREASE TRANSPORT WEIGHTS AND PRODUCE LESS WASTE.

METSÄ BOARD’S PRODUCTS AND SERVICES:

METSÄ BOARD’S offering of premium paperboards and related services, with its focus on contributing to even more sustainable, safe and efficient packaging, can now be found under one Metsä Board family.

The Better with Less initiative showcases Metsä Board’s aim to create, together with its customers, innovative and renewable contemporary packaging solutions to meet consumer demand for better experiences with less environmental impact.

As part of the launch, Metsä Board has renewed the product names of its paperboards to bring the offering to

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customers in a clearer way and make product selection even easier. Three service areas – Packaging Analysis & Design, Availability Services, and Technical Expertise and R&D – complement the products and provide collaboration initiatives for joint development with customers.

The products and their specifications have remained unchanged. Metsä Board launched its clarified product and service portfolio at Interpack in Düsseldorf on May 4th 2017.

You can read more about the Better with Less initiative on pages 30–33.

PE-COATED BOARDS:

THE FRESHEST ADDITION TO THE METSÄ BOARD PORTFOLIO IN APRIL 2017, we announced the start-up of the new extrusion coating line at our Husum mill in Sweden. Representing an investment of 38 million euros, and with an annual capacity of 100,000 tonnes, the new line propels Metsä Board to the front line of suppliers of integrated solutions for fresh, frozen, and on-the-go food packaging. The PE-coated boards can now be produced entirely under the same roof at Husum.

“PE-coated boards offer protective properties such as moisture and water barriers, and short-term grease barriers. At the same time, they have excellent sensory properties and are safe and clean, with a baseboard made of renewable fibres – everything that consumers expect of high-quality paperboard cups, plates and trays,” says Jarkko Tuominen, VP business development at Metsä Board. “As a result of this investment, Metsä Board is now able to act as a one-stop shop for customers tapping into the burgeoning food service market.”

In alignment with our unified product portfolio, the new products – available also with extrusion coating – are identified by new names. Accordingly, for takeaway and fresh and frozen food packaging, customers will now find MetsäBoard Natural FBB, MetsäBoard Pro FBB Bright, MetsäBoard Natural FSB Cup, MetsäBoard Pro FSB, and MetsäBoard Pro FSB Cup. This range marks the latest addition to our high-quality sustainable product portfolio.

The customer response to these developments has been positive. “In the growing market for food service packaging, it’s important to have a trusted supplier and full transparency of origin to guarantee food safety. We are pleased to see that our customers have found these qualities in Metsä Board,” says Tuominen.

The new production line at the Husum mill represents the latest technology in extrusion coating.

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T2's Mini Fruit Tea packaging range won both at the Dieline Awards and at the iF Design awards.

The PET window is designed to be easily removable for troublefree recycling.

OUR DESIGN AND PACKAGING GOT

AWARDS GALORE TWO PACKAGING DESIGNS created by Metsä Board’s design team were awarded at the iF Design Awards 2017. T2’s Mini Fruit Tea packaging won a certificate for ‘Beverages’, and Metsä Board’s own innovative Elevated Drink Box (EDB) won another for ‘Independent Packaging’.

The T2 Mini Fruit Tea packaging range had to be both structurally and visually innovative to stand out from the crowd. Metsä Board created the structural design while the T2 design team managed the visual side.

Designed and patented by Metsä Board, the ground-breaking EDB provides an easy and convenient way for consumers to enjoy their beverages.

At The Dieline Awards 2017, the T2 Mini Fruit Tea range also won the first place in the Limited Edition category.

Entries into the US-based competition are judged on four key elements: creativity, marketability, innovation, and execution.

Cyril Drouet, Metsä Board’s design & innovation director,

is delighted that the skill of Metsä Board’s designers and the quality of its product have been recognised amongst stiff competition and a rigorous judging process: “We are thrilled to have won first place in the Limited Edition category. The team in Shanghai worked very hard with T2 to achieve a design that is beautiful, innovative, practical and durable, and it is very satisfying that everyone’s hard work has been rewarded in this way.”

The Dieline Awards recognises the best in consumer packaging design worldwide. It receives thousands of entries every year from all over the globe.

Finally, Metsä Board won the Luxe Pack Shanghai ’in green’ Award, in the Eco-Friendly Designed Product category, with its skincare gift box. The concept represents a winning combination of Metsä Board’s pure, lightweight and stiff paperboards and the company’s innovative packaging design service.

PLANTING SAPLINGS

TOGETHER ON EARTH DAY joined forces again this year with the Paperboard Packaging Council (PPC), as part of the TICCIT Programme (Trees into Cartons, Cartons into Trees).

TICCIT is an outreach and educational programme for school children, held annually to honour Earth Day, and highlights the renewability and sustainability of paper and paperboard packaging.

Together with the PPC and other participating companies, we planted 15,785 new trees. Many of our customers participated locally in the event.

In April, Ryan Arbito and Joey George from Metsä Board

METSÄ BOARD AMERICAS

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America’s sales team visited East Hanover Middle School, New Jersey, to present to the sixth grade class there.

Students were taught how paperboard is made, the benefits of recycling, and the importance of trees to the environment. Afterwards, tree saplings from the Arbor Day Foundation were distributed to the children in cartons made of Metsä Board’s paperboard. The children were encouraged to take the saplings home and plant them in the cartons with their families.

“This was a great way to celebrate Earth Day with the kids,” said school counselor AJ Ritter of East Hanover Middle School. “I’ve never seen them ask so many questions during a presentation before!”

Elevated Drink Box – designed and patented

by Metsä Board.

PROUD TO HAVE ACHIEVED THE

ECOVADIS GOLD RATING METSÄ BOARD has achieved the EcoVadis Gold rating for its approach to sustainability. Overall, Metsä Board was ranked in the top one per cent of suppliers assessed by EcoVadis across all categories.

“The assessment is a testament to Metsä Board’s continued commitment

BEAUTY, , S S E N E V I T A V O INN Y T I L A C I T C A R P & DURABILITY

to sustainability. We recognise that sustainability must go beyond regulatory compliance to also focus on how companies manage their economic, social, and environmental impacts, as well as their relationships with stakeholders such as customers, employees, suppliers and government,” says Soili Hietanen, VP, sustainability and energy at Metsä Board.

As part of the process, Metsä Board’s recent A-List recognition in CDP’s Water and Climate programmes and its Leadership status in CDP’s 2016 Forest and Supply Chain programmes were important considerations for the EcoVadis team.

EcoVadis operates a platform allowing companies to assess the environmental and social performance of its suppliers on a global basis.

PRESENTING OUR

BETTER WITH LESS MAGIC WE ARE PROUD to be presenting Metsä Board’s unified product and service portfolio at three exhibitions in the autumn of 2017. Would you like to know more about our lightweight paperboards and packaging optimisation? About the sustainability of our products? Or perhaps you’re more into supply chain and converting efficiency?

Whatever queries you might have, we are ready to answer any questions about our range of solutions, which is targeted for your very specific needs. In everything we do we are committed to helping our customers create better consumer experiences with less impact on the environment.

Come and meet us at: - PackExpo, Las Vegas, September 25–27 - LuxePack Monaco, October 2–4 - FEFCO, Vienna, October 11–13 Want to know more? Check out www.metsaboard.com

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The crucial need for the circular economy is a hot topic.

To provide for the needs of growing populations, we need to use resources more efficiently – and recycle.

TYTTI HÄMÄLÄINEN

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RISTO MUSTA

THINK

THINK IN T

he world’s population is expected to grow by over a billion by 2030. At the same time, consumption will increase, which means there will be even more competition for the world’s scarce resources. To fight overconsumption, it’s time to start thinking big and in terms of ‘the circular economy’.

“The circular economy as a term is not perhaps widely known just yet,” says Riikka Joukio, Metsä Group’s SVP, sustainability and corporate affairs. “The basic idea is to use resources efficiently and use modern technology, produce

as little waste as possible, use waste as raw material for other products, and keep raw materials in circulation.”

“In fact, the forest industry is based on circulation,” she continues, “and the best way to explain it is by using real-life illustrations.”

Joukio has addressed a number of seminars on this topic, and she prefers to make her points using the four examples overleaf.

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1. SUSTAINABLE SOURCING

Metsä Board’s main raw material is wood from northern European forests.

“Our operations and their circularity began with sustainable forest management and securing the future growth of the trees. For example, when a tree is harvested, four new ones are planted. Renewability is nature’s own circularity,” says Joukio.

The future of forestry is also safeguarded by taking these values into account ​​already at the stage of making logging plans, and by always renewing the forest after harvesting.

This is done in accordance with voluntary forest certification schemes and the legislation of the country in question.

2. CIRCULARITY IN PRODUCTION

Our board mills circulate water, chemicals and other resources several times over. Metsä Board continues to use water more and more efficiently, and has decreased the amount of process

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water it uses by 14% since 2010. In practice, this means more use of the same water – closing the loop.

“In a mill, the same water can be used several times – if the process and product safety allow it. The use is always up-stream so, for example, in our pulp mills water is recycled from one stage of washing to the prior one. As much as 99% of the water used in production is returned back to waterways after careful cleaning, the rest is evaporated, and some of it goes into the product to ensure good performance in the converting process,” says Soili Hietanen, Metsä Board’s VP, sustainability and energy.

Most Metsä Board mills are integrated with pulp production. “This lowers the need for energy to dry the pulp for transportation and reduces the logistical needs, as well as enabling the use of excess energy produced in the pulp-making process. Both have a positive effect on the climate,” Hietanen points out.

3. INDUSTRIAL SIDE STREAMS

Metsä Group uses every part of a tree for the purpose that it is best suited to, and which provides the highest value. One tree is used to make many different products: sawn timber, plywood and Kerto LVL; pulp, paperboard, paper and bioproducts; as well as renewable energy.

What Metsä Group doesn’t use in the making of the traditional bioproducts is used in other ways.

“Some 50% of wood provides fibres that can be utilised for pulp. To use the material more efficiently, we are involved in research, development and innovation networks in which we are looking for new applications for it,” says Riikka Joukio.

In addition to these bioproducts pulp production generates massive amounts of energy. The energy that the mill doesn’t use for its own operations can be used by society. Today, Metsä Group produces 14% of Finland’s renewable energy – and all this from such side streams.

“The new bioproduct mill in Äänekoski, Finland, is surrounded by a unique industrial ecosystem. The new mill utilises 100% of its production side streams to make new bioproducts and renewable energy. It also operates using zero fossil fuels and generates 2.4 times the amount of renewable electricity it uses,” says Riikka Joukio. The bioproduct mill thus has a huge impact on the circular economy.

Another great example of circularity is Metsä Board’s Kaskinen high-yield pulp mill. The mill has a boiler on site where production side streams, bark and sludge, are burned in order to generate steam for the mill, a process which also yields ash.

“The ash from Kaskinen mill – just as it is – is returned to the forests as a fertiliser,” explains Olli Lehtovaara, development manager at Metsä Group’s Sustainability and Corporate Affairs department.

“Specific boreal forest types benefit from the potassium and phosphorous in the ash. Trees require a certain balance of these elements. The additional potassium in the ash fertiliser allows the trees to utilise phosphorus more efficiently.

This makes the forest grow better, which enhances its renewability. Using the ash as it is doesn’t mean we don’t make efforts to control its quality. The production of ash fertiliser involves diligent quality assurance both at the mill and when using it in the forest.”

4. RECYCLING AND FRESH FIBRES

“The key idea of the circular economy is to use materials as efficiently as possible and to use them more than once – the opposite of the take, make and waste

model,” says Riikka Joukio.

In Europe, paper and board are among the most efficiently recovered and recycled materials – the recovery rate is 72%, and for fibre-based packaging, 81%.

“Recovery alone is not enough – both fresh and recycled fibres are needed. Fresh fibres keep the fibre loop alive, as all products cannot be returned back to circulation. Without fresh fibre inflows, a serious shortage of fibre would occur within six months in Europe.”

Soili Hietanen adds that fresh and recycled fibres also have different properties and end uses.

“Fresh fibres from slow-growing northern European forests are strong, light and pure – and provide the material for our lightweight paperboards. Being light, our boards also generate less waste.”

Fresh fibres are also needed to guarantee product safety.

Food packaging requires the origin and purity of its constituent materials to be carefully documented.

From theory to practice

From these examples, it is clear that building up a value network that makes the most of the circular economy and resource efficiency is far from a simple process. It has taken Metsä Board decades to develop this way of working.

“Being at the forefront of the industry means thinking ahead, investing in new technologies and always trying to find ways to do things better,” says Soili Hietanen.

These are certainly inspiring actions for a company, but is there something individuals can do today to enhance the circular economy?

“Recycling packaging materials is a good place to start,” Riikka Joukio is quick to respond. “I do that myself every day.”

Soili Hietanen points out that fresh and recycled fibres have different properties and end uses. Clean fresh fibres are essential for safe food packaging, to give just one example.

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THE WORLD NEEDS THE CIRCULAR ECONOMY In the bioeconomy, renewable resources are processed into products that replace the use of fossil raw materials. In the circular economy, the renewable products are kept in circulation for as long as possible – by reusing and re-utilising it, the value of the raw material is maintained. The manufacturing and consumption of such products also generate as little loss and waste as possible, making production resource-efficient.

“The ash from Kaskinen mill – just as it is – is returned to the forests as a fertiliser,” explains Olli Lehtovaara, development manager at Metsä Group’s Sustainability and Corporate Affairs department.

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NAME: MARK BEAMESDERFER TITLE: TECHNICAL MARKETING & SERVICES DIRECTOR, METSÄ BOARD AMERICAS

IN 2017, almost half of the world’s population is connected, or has access to the internet. Online purchasing accounts for roughly $1.3 trillion of the $22 trillion global retail market, and continues to rise by double digits each year, while traditional brick and mortar retailers and department stores have slumped.

Brands must now find new ways to stay connected with consumers. Traditionally, packaging was designed not only to protect the product during transport, but to capture the consumers’ attention as they navigated the store aisles amidst a sea of competing products. With the sudden rise in online shopping and e-commerce, the consumer is now attracted to the product through search engines, consumer reports, and product reviews. They make informed decisions, click to pay, and have the product delivered to their doorstep.

Typically, what is inside the shipping box is the same package that was created and designed to function on the store shelf. Sometimes it is packed with paper stuffed into the dead space of the shipping carton, sometimes it is secured with air pillows or bubble wrap, and sometimes it is just a box sliding around inside another box. Overall, the experience leaves something to be desired. More often than not, the consumers’ first and only thought is not of their satisfaction with the purchase, but to examine the product to see if it is undamaged.

Brands want to ensure that the loyalty of the consumer remains intact during the e-commerce distribution chain, and often struggle with changing their traditional packaging to accommodate the requirements that shipping can necessitate.

The time is right for a change, and the most successful brands have begun to look at these challenges as new opportunities to create new and exciting consumer experiences.

We at the Metsä Board Packaging Analysis and Design team have found several opportunities to help our brand owner customers identify the optimal, light-weight materials for their packaging. In addition, we have innovated completely new packaging structures that stand up to the requirements of shipping, while providing unique and satisfying consumer experiences that strengthen the value of the brand.

We are further reducing the weight of packaging and doing better with less, both through material optimisation, and by designing creative, structural reductions. Finally, we utilise the excellent print capability of our paperboards to facilitate the printing of our impactful graphics designed to promote the brand, while celebrating the consumer's online purchasing decision.

So, the consumer of tomorrow is already here today, purchasing products online. Let's not use yesterday's packaging, but together create a new consumer experience that will continue to develop your sales in the future.

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BRAND OWNER

INSIGHTS Consumer expectations on sustainability are developing by the day. We asked two major brand owners how they approach this dynamic situation, with regards to supplier requirements and packaging designs.

“We have a Nestlé Responsible Sourcing Guideline, where we communicate accompanying categoryspecific requirements for our upstream supply chain.

We look to our suppliers to comply with the Nestlé guidelines and to commit to the same level of standards as we do.

Nestlé is constantly evolving, and over the past years we have been lightweighting a lot of our packaging designs.

Moving from plastic to paper and paperboard, and increasing the use of renewable or recycled materials are all interesting areas for us. We will continue to investigate new technologies that help us on our sustainability journey.

Today, we already know that our consumers want to know where their products come from and how they are made. The majority of consumers also believe that companies must operate responsibly to address social and environmental issues.”

Hanna Jager, Global Responsible Sourcing Leader – Pulp&Paper, Vanilla and Hazelnuts, Nestrade

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“We consider that the activities of our suppliers are part of our wider social and environmental footprint.

They are therefore associated with L’Oréal’s CSR policy.

By joining forces with our suppliers, we will meet the Group’s commitments. We have developed a twofold approach, selecting our suppliers based on their environmental and social performance, and providing them with training tools.

Being the leader in the cosmetics industry, L’Oréal has made the choice to be exemplary with regards to sustainable packaging. In 2007, we launched a Packaging and Environment policy, integrating an eco-design approach, which is based on three pillars: respect the consumer and the environment, reduce packaging with an optimal weight and size, and replace materials with a strong environmental impact with recycled or renewable materials.

We also favour and encourage responsible consumption, and we share our ambitions and vision with our packaging suppliers to reach better results together, to continue to improve in packaging sustainability and quality, and to meet consumers’ expectations.”

Floriane Hedé, Sustainable Packaging & Development, L’Oréal Magda Carrasco, Sustainable Sourcing Director, L’Oréal

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I like packaging that is clean, bold, simple and really easy to spot on a shelf full of stuff. I also appreciate the design, and easy access to the product inside. I try to recycle as much as I can.

JENNA

JUSTUS

Practicality, renewable raw materials and attractive colours appeal to me.

For me, attractive packaging is secure, simple, and looks neat. I also appreciate clear product instructions. Nothing super complex, like “wrapping this and wrapping that”.

CARLA

DAVID

I value easy accessibility. You often get packaging that’s very difficult to open, or even needs a tool to open it. The easier to access, the better.

PHILADELPHIA, USA JUSTIN

I’m attracted to good-looking design. I also like resealable packages, depending on the type of material.

Packaging is attractive when it’s colourful.

ELOISE

CONSUMER

INSIGHTS

We asked millenials in four countries for their views on packaging and the use of renewable materials to produce it. The answers were both diverse and unpredictable.

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LAYANA

LAYANA

I am very much in favour of environmentally sound packaging – environmental pollution, especially caused by plastic, is much too high!

In packaging, I value design, usability and recyclability.

DENNIS STEWART

LONDON, UK CHARLOTTE

DÜSSELDORF, GERMANY

PARIS, FRANCE

TIM

I always recycle packaging materials.

I think that many people have the desire to recycle, but they are unsure of what really happens after the waste ends up in the bin.

The packaging which appeals to me is designed with as little plastic as possible and requires just enough packaging material to protect the product.

MARION

The millennial perspective

h students of Board collaborated wit In spring 2017, Metsä millennials how of dy stu a sity on Helsinki’s Aalto Univer the-go food onability in relation to see the topic of sustain

I appreciate convenience in packaging.

packaging. lennials from views of over 100 mil The study observed the studying, tly ren cur e wer m e of who around the world, som a higher-edof sion e already in posses and many of whom wer different 30 r ove ed ent res group rep ucation diploma. The nationalities. re willing saw themselves as mo 87% of this sampling was stic Pla y. packaged sustainabl to buy food that was thoughts ir the d rise ma sum study considered a no-no. The ing, it’s about not about the packag with the statement “It’s is a subject they lity abi tain sus t clear tha the content”, making method is just y of which the deliver view as a holistic entity, one part. and commuple group, messages According to the sam plified and sim be ld cou lity tainabi nication relating to sus of company ical typ plex terminology should not use the com ential avepot one as dia me ial soc websites. The group saw rs, bring use end e used to help educat nue for this, if it were way. tive rac inte and fun a nicate in diversity and commu

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IMPLEMENTING TRICT NEW LEGI LATION REQUIRES DEDICATION Legislation affecting food packaging, particularly in Europe, the US and China, is constantly evolving, as governments react to increasing public pressure for greater sustainability and stricter safety guidelines. Metsä Board product safety managers Katja Tuomola and Marjatta Punkka provide a helpful update.

IAN FENTON

Food contact seems a particularly dynamic area. What are the main concerns?

KT: Mineral oil is certainly one. These concerns come mainly from recycled pulp and paper containing residuals from printing inks and other mineral oil sources. In Germany, draft legislation to control the levels of mineral oil migration in food packaging has been in the works since 2009. The fourth draft has been published and the work around it is going on. France also published recommendation to reduce foodstuff contamination by mineral oils in May 2017.

Metsä Board fresh fibre paperboards do not have the risk for mineral oil migration but we follow the discussion around mineral oils closely. However, we believe that harmonised EU-level regulation would be a preferable course of action. Harmonisation efforts have

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SEPPO SAMULI

recently begun, in fact, with a recommendation on mineral oil monitoring of foods and packaging materials given in January (2017/84). Furthermore, the EU Commission has announced that it will start harmonising regulation on printed food contact materials, which means printing inks in the first phase.

Other progress is being made outside the EU also. Switzerland, for example, has banned the use of recycled fibre in instances of packaging with direct food contact. This took effect in May of this year.

Perfluorinated chemicals, which have been linked to birth defects, are becoming another area of concern.

These have been found in fast-food packaging, such as the papers used to wrap hamburgers, for example, where the chemicals may be used as a grease barrier.

Draft legislation already exists in California, while in Europe Denmark has taken a strong position on this topic

and NGOs are exerting pressure for EU-level action.

Again, this is not an issue that affects Metsä Board’s products, since we do not use fluorochemistry, nor do we use recycled fibres, which may contain traces of these chemicals. We use only clean fresh fibres and other carefully selected raw materials to be sure Metsä Board can live up to it's promise to provide a pure and safe packaging material even for direct food contact.

Does the USA’s Food Safety Modernisation Act relate to paperboard?

KT: This legislation – and more precisely, its foreign-supplier verification programme – includes food contact substances. For Metsä Board this would mean that our materials would have to comply with it, meaning the packaging must comply with the same standards

as the food in terms of hazard identification and analysis of potential risks.

However, as it stands now the FSMA would create more work for importers of food contact substances, like paperboard, than for domestic suppliers.

The deadline for implementing this verification has been extended to 2019, and we hope to see amendments before that date is reached.

And what effect is China’s new food-safety legislation having?

MP: China’s new food-safety law came into force in 2015, and represented a fresh start for the country’s food-contact legislation. It certainly represents the most stringent food-safety enforcement enacted in the country to date.

As part of the new legislation, China published its new food packaging standards on November 2016.

Chinese legislation regulates food-packaging materials via two mechanisms. First, by limiting the substances that can be used in food-contact

materials, and secondly, by imposing compliance testing for food-contact materials and finished packaging articles.

While the contents of these new standards haven’t been dramatically revised, the rigor with which they are being enforced has certainly increased.

A marked improvement has occurred in this respect.

When it comes to Metsä Board, the most noteworthy impact has been due to the absence of optical brightening agents in the list of accepted food – contact additives in China. As our wide offering also contains OBA-free products, this is not an issue for Metsä Board, and by reviewing the alternatives together with the customer a compliant solution can easily be reached.

Marjatta Punkka

“WE USE ONLY CLEAN FRESH FIBRES TO PROVIDE A PURE AND SAFE PACKAGING MATERIAL EVEN FOR DIRECT FOOD CONTACT.” Katja Tuomola 21

Terhi Saari, director of Metsä Board's Äänekoski Technology Centre.

What is the next frontier for paperboard development?

How can business stay in step with the latest trends in packaging? For Metsä Board, creating better, innovative packaging is, first and foremost, a joint journey with forward-looking customers.

MARI SUONTO

THE PATH OF NEW packaging technol-

ogy from idea to market can take more than a decade. A company wishing to do innovative research and develop new products must be prepared for a long journey that requires not only a bold approach, but also patience and a willingness to cooperate with many different players – technology providers, clients, consumers – in search of major breakthroughs. But how does a company know where the next frontier of development lies?

According to Markku Leskelä, VP research & development at Metsä

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KAISU JOUPPI

Board, it all starts with a simple question: where is the world headed?

“As a company that wishes to grow, we must go where our customers and their customers, the consumers, are going to meet the needs of the future.

And furthermore, do it in a way that outsmarts the competition. These are the fundamental drivers for any company’s R&D.” In Metsä Board’s history, there is a concrete and successful example of this. Back in the 1990s, the company decided to invest in the research and development of BCTMP – short for

bleached chemi-thermomechanical pulp. Decades later, BCTMP is one of the main materials in Metsä Board’s paperboards, and has been key to the company’s trendsetting role in lightweighting paperboards.

“At the time, we detected weak signals in the markets – increasing purity requirements and the need for lighter paperboards – indicating that this new technology could be vital to the paperboard business in the future,” Leskelä says.

It proved to be the right move: not only did Metsä Board gain a lead

Samples in gas chromatography vials on their way to be analysed.

Electron microscope images of paperboard.

Box compression test in progress.

in lightweighting paperboard, but BCTMP also allowed for a combination of other great qualities such as excellent printability, brightness and stiffness.

“It was the cornerstone for Metsä Board’s premium paperboard business, and helped us to address the needs of the growth sectors, such as food and luxury packaging,” Leskelä explains.

Never out of fashion

But so much for history. The more interesting question is, of course, what lies ahead for packaging and paper-

Material characterisation underway in Metsä Board's cutting edge facility.

board development. To find answers for this, Leskelä points to megatrends that affect the business environments of Metsä Board’s customers, such as urbanisation and e-commerce.

“Packaging continues to be a growth industry, as more and more people move into cities and pursue a modern consumer lifestyle. However, online retail will likely change how brands interact with consumers. The experience the packages offer when delivered directly to end users will be different to that of traditional hypermarkets and department stores,” he explains.

Secondly, as the world tries to grapple with looming environmental crises, maximising material efficiency and minimising packaging waste continue to grow in importance. In other words: “Lightweighting has definitely not gone out of fashion!”

What exactly this means for paperboard development is not something that Metsä Board can claim to know for certain. But what the company does have a keen interest in is close partnerships with forward-looking clients who wish to explore new, innovative avenues in paperboard packaging.

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Metsä Board constantly evaluates a wide range of lightweighting and barrier technologies.

Each is scored according to its impact, readiness for market, and cost. Depending on the scores, a technology may be classified anywhere from basic research to market presence.

As Markku Leskelä explains, not all promising technologies succeed: “It is always fascinating to look at those technologies that are just appearing on the radar’s outer circle. Personally, I have been impressed by the recent advancements in good old cellulose chemistry.

However, there is still work to be done before commercial feasibility.”

“It’s critical that we listen to and collaborate closely with our customers as well as technology providers, so that we can discover and evaluate possible directions for development together, translating them into viable technological innovations,” Leskelä says.

Detectives and problem solvers

In fact, to test the viability of new technological solutions, Metsä Board has its own, cutting-edge lab facility called the Äänekoski Technology Centre.

It is part of to the company's R&D organisation. The centre holds Metsä Board’s research labs and has a staff of researchers and research laboratory technicians, who focus on testing and analysing product safety, including mineral oil migration methodology, barrier solutions, as well as different aspects of packaging functionality.

“We are like detectives and problem solvers for both Metsä Board internally and the company’s customers,” explains Terhi Saari, director of the centre.

“They utilise our research know-how and services to analyse and test products, troubleshoot problems or explore 24

new ideas.”

Packaging analysis, for instance, is a component of the expert services provided by Metsä Board’s R&D, through which customers can get their current packaging solution analysed to see if equal strength and stiffness could be achieved using a lighter paperboard solution.

Promising paths forward

Beyond lighter packages, Metsä Board’s R&D has recently focused on the converting of packaging materials as well as new barrier solutions for food service boards. The job of the Tech Centre’s staff is to investigate possible solutions, often also cooperating with universities and research organisations.

“We start from very small tests on the laboratory scale, and if the results are encouraging, move onto the next phases, eventually running trial batches on pilot equipment or at one of our plants. If the new solution proves to be commercially viable, it will finally end up in production.”

Though the R&D journey is seldom a straightforward series of successes,

Saari says that even seemingly negative results are part and parcel of the research path.

“Even if a promising new idea proves to be unfeasible in later phases, it still means we’ve gathered valuable knowledge and we can redirect our efforts to another avenue. As a researcher, you have to be persistent and investigate several promising ideas at the same time,” Saari explains.

Which is exactly what Metsä Board’s R&D and the Äänekoski Technology Centre are doing. Though Leskelä and Saari cannot divulge exactly what the most promising paths for Metsä Board’s R&D journey currently are, they both say that there are several interesting possibilities on the horizon.

“Lightweighting is, of course, an ongoing corporate project for us, and we have several technologies under investigation in that field, but in addition we keep a close eye on other innovative advancements, for instance in bio-based barriers,” Leskelä says.

And so, the journey to new frontiers continues.

E H T G N I R U T P CA N O I T A N I G IMA IAN FENTON

KATRI KAPANEN

Kyrö Distillery Company’s Napue Gin has swiftly become a Nordic sensation. We take a look at how their marketshaping brand is supported by careful packaging design.

The pure look and natural feel of MetsäBoard Natural WKL Bright matches exactly with what the brand aims to communicate.

LIKE MANY GREAT Finnish innovations, the idea of founding

Kyrö Distillery Company was born of wood – in this case, the traditional wood sauna. It was here, in 2012, that a group of friends drinking rye whisky decided that the rest of the country and beyond might be persuaded to enjoy the same tipple. The morning after, the idea retained its excitement, and the process of turning dream into reality was underway.

“Rye whisky didn’t really exist in Finland at the time,” says Mikko Koskinen, head of branding and gin, Kyrö Distillery. “As rye is the national grain here, and rye bread a national dish, we thought that if there is going to be whisky made in Finland, it should be rye whisky.”

Kyrö’s founders acknowledged that the market for premium spirits they wanted to tap in the Nordics did not really exist yet. With this in mind, they ran some calculations and came to the conclusion that they should also produce gin.

“Whisky has to age for at least three years,” explains Koskinen, “and it’s nice to be able to eat something during the first few years of running a company.”

With a year or two of fact-finding and research behind them, the distillery was eventually set up in one of the founders’ home town of Isokyrö, on Finland’s west coast, and their

first major product was launched – Napue Gin. Napue soon became a sensation, winning first place in The International Wine and Spirit Competition’s first ever gin and tonic awards, which propelled it to hit status in Finland and the Nordics. But what sustained this initial surge of popularity was Kyrö Distillery’s extremely well-considered branding efforts.

Transforming the market

The Kyrö Distillery Company’s strong brand is the result of intense cooperation with a Helsinki-based brand design agency named Werklig. Even in the beginning, ambitious targets were the order of the day.

“We knew the only way for the company to exist would be to change the way Finns consume alcohol, and create a market here for premium spirits,” says Koskinen. “This could only be done by building a brand strong enough to convince people to pay a premium for something that offers more than just a good-tasting liquid.”

The result was a consciously Finnish brand – referencing the closeness to nature and purity so important to the national identity – but one which takes a markedly innovative approach. There is a certain freshness in the way it combines its geographic heritage with an open, modern, and, at times, humorous attitude to communications.

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“We distill and bottle everything in Isokyrö,” stresses Koskinen, “and all the ingredients that make sense to be produced in Finland are sourced here. All of our rye is Finnish – this is really important to us.”

However, the brand extends beyond Finland, and is more wide reaching in its intentions. Kyrö Distillery sees itself as a Nordic brand. “I think the Nordics share similar values in terms of honesty, purity, and quality,” he explains.

Partners to match

“WE DISTILL AND BOTTLE EVERYTHING IN ISOKYRÖ, AND ALL THE INGREDIENTS THAT MAKE SENSE TO BE PRODUCED IN FINLAND ARE SOURCED HERE.”

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As a young company whose brand attributes are crucially important to its business model, Kyrö has reason to be particularly attentive to its supply chain, and selects its partners carefully.

This figured strongly in their thinking when selecting a material for their new gift package, which debuted in the festive season of 2016, and will also be used in other applications in which a boxed package is preferable to bottles being sold alone.

“Kyrö Distillery was looking for a solution that would combine the themes of high quality and natural raw materials.

The packaging design was done to support the intensity and passion behind Napue Gin, and the packages are converted by the latest hybrid technology in die-cutting and foiling,” says account manager Rami Haapanen of Pyroll, the company which handled the package’s production – also in Finland. The material for the carton, N-microflute, was supplied to Pyroll

by DS Smith Sheetfeeding. Located in Kettering in the UK, the company is specialised in producing microflute corrugated materials, with a wide range of material finishes, barriers and colours for direct offset printing and foiling. MetsäBoard Natural WKL Bright is also among the paperboard grades they stock.

Ilkka Harju, head of design & innovation at Starcke, a Finnish company that provides special graphical effects for packaging, selected Metsä Board’s uncoated white kraftliner, MetsäBoard Natural WKL Bright, due to its natural, pure and tactile feel. A premium look for the package was achieved by using the paperboard both for a fluting and linerboard.

The outcome is a simple, pure and eye-catching white box upon which all the texts are stamped with black or silver foil.

The foiling process also generated a light debossing, which reinforces the consumer perception of a handcrafted box.

One brand colour, tellingly, was left out of the package: gold. This one is reserved for Kyrö Distillery's new rye whisky, which was unveiled in August. Taking into account the company’s success to date – with sales both in Finland and abroad growing more than healthily each year – this is sure to be a spirit worth looking out for.

The recipe for success In 2015, Kyrö Distillery Company’s Napue Gin exploded onto the scene thanks to its success in The International Wine and Spirit Competition’s first ever gin and tonic awards.

Word spread very quickly, with thousands of customers in the Nordics discovering a new passion for gin as a result. You too can enjoy the very same award-winning drink by following the recipe below.

Ingredients ◊ 1 part Napue Gin ◊ 2–3 parts Fever Tree tonic ◊ Rosemary ◊ Cranberries Preparation ◊ Fill a Copa de Balon glass with ice ◊ Pour in the Napue Gin ◊ Top with Fever Tree tonic ◊ Garnish with rosemary and cranberries

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CHRIS WANG

ALAN LI

Structural design specialist

Structural design specialist

VIKI LI

Graphic design specialist

SMART FROM THE START How does Metsä Board’s design team make packaging both attractive and sustainable? The leader of the company’s packaging design team, Cyril Drouet, provides a few insights into the process.

IAN FENTON

ALL TOO OFTEN, success in today’s highly competitive markets comes down to a simple, easily perceived edge.

Cyril Drouet, Metsä Board’s design & innovation director, is confident that this advantage is to be found in design, and is convinced that the company’s efforts in this area are a strong means of adding value for its customers.

“Brand owners and converters are constantly looking for ways to improve packaging performance across value chains,” he points out. “We have a truly

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SUKEY ZHANG

innovative design team that helps brand owners succeed in their target markets by creatively executing design, manufacturing, and performance of their packaging-related goals and strategies.”

But what does this mean in practice?

Drouet is eager to show that it comes down to concrete action and demonstrable results: “Our design team identifies the board that offers optimal functional and visual properties for the specific demands of each packaging end use. Our innovative approaches

to packaging lower costs, improve efficiency, delight the consumer, and enhance sustainability – while making sure that the packaging is appealing and helps to sell itself to consumers.”

Insider knowledge

Metsä Board as an organisation is committed to continuous innovation for lighter and more sustainable solutions.

But knowledge of customer industries and their workings is a necessary foundation for this work. How do Drouet

ADI GUNAWAN

Design team leader

and his team keep on top of the latest trends and developments, and become aware of the upcoming challenges customers will face?

“Our integrated business intelligence service does wonders at compiling the latest trends, market research and data in various segments and countries,” he replies. “We also learn a lot from our clients themselves – brand owners’ marketing teams are very well informed of their market and of consumer needs. Since we work globally, we are aware of broader trends taking shape, as well as local ones.”

Top of the list is the consumer experience, which Drouet describes as an absolute must for consideration in today’s market, as consumers increasingly look for brands and packaging that engage and entertain them, and perhaps most importantly, make a connection with them through good storytelling.

“Trends are created by the consumer through their behaviour and needs,” he continues. “If you take, for example, the way consumers interact with their mobile phone when taking selfies, there are definitely opportunities for packaging to become part of this habit.

It’s much more likely that packaging

SUKEY ZHANG

CYRIL DROUET

Photo retoucher specialist

Design & innovation director

that can contribute to a selfie will be shared on social media. With novel, eye-catching new designs like our Lidloc paperboard cup concept, we envision a new form of viral marketing through packaging.”

What makes Lidloc so groundbreaking is its integration of the lid into the structure of the paperboard cup, meaning that a separate plastic lid is no longer needed. Lidloc also offers the possibility to print on the top of the lid, which provides an additional area for marketing messages. In this way, Lidloc brings together is all about sustainability and better consumer experiences.

to meet consumers’ expectations, influence consumer purchasing decisions and build brand loyalty.”

The designer takes a moment to reflect on Metsä Board’s recent successes in attaining this balance. “If you take a look at the tea packaging we designed for T2, we are promoting fruit tea flavours in fruit-shaped packaging.

The uncoated side of MetsäBoard Pro FBB Bright 250 g/m2 was deliberately selected to echo the natural feel of the fruit.” " The packaging structure is totally glue-free too. How much more organic can you be in packaging?”

In its packaging design, Drouet’s integrated design studio at Metsä Board follows the same philosophy as the company itself – prioritising sustainability and making sure they use materials and energy efficiently. “Packaging is an important part of the brand,” he concludes. “It protects and promotes the product. However, it is important that the packaging is recyclable. Our role as designers is to make sure that we are reducing the environmental impact of disposal for the product, during its whole lifecycle.”

Balancing sustainability

Drouet points to the continuing need to balance attractive design and sustainability, explaining that the growing trend for organic and healthy food has influenced food packaging in the direction of becoming more natural in its appearance and composition.

“Consumer commitment towards sustainable packaging has increased,” he says, “and in fact, most consumers prefer more environmentally sustainable options for paperboard and packaging. Many brands are making the shift to more sustainable packaging

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Metsä Board’s new brand imagery was created with Stockholm-based photographer and image maker Carl Kleiner.

Kleiner is known for creating playful, highquality and eye-catching visuals for global companies such as Calvin Klein, Google, Hermès, H&M and Nike.

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A UNIFIED PRODUCT OFFERING MAKES SELECTION SIMPLE We have recently clarified our offering to help customers easily find the perfect products to fit their exact needs. Let’s take a look at the changes and how our collaborations will benefit from them.

METSÄ BOARD

METSÄ BOARD OFFERS a wide range of premium paperboards designed to promote the brand all the way. “The Metsä Board family of sustainable, safe and lightweight paperboards includes solutions for the product package itself, various for a retail applications and to on-the-go solutions for food services.

The portfolio can answer both the trend towards natural-looking products, and the need to emphasise the premium quality of the product – depending on what the brand wants to reflect,” says Sari Pajari, SVP, marketing and sales at Metsä Board.

To help customers make the selection for their project more easily, we have created the following four distinct categories – ranging from a natural look to a premium one – for our folding boxboards, food-service boards and white kraftliners: NATURAL products provide, as the name suggests, a ‘natural’ look and feel, with good printability that gives colours and images more emphasis. Products in the CLASSIC category combine reliable performance with excellent value for money, making them ideal for fast-moving goods requiring good shelf visibility and food safety. Our PRO products offer strong brightness and smoothness, and are designed for high-value products that require outstanding brand promotion through more demanding printing, converting and forming techniques.

Finally, PRIME products are ideal for premium high-end brands, combining excellent brightness and surface-smoothness characteristics to help achieve world-class printing, converting and special effects.

Sari Pajari spells out how the changes will benefit our customers.

“All the products our customers already know and trust are included in the portfolio, with the same winning properties,” she states. “But the new way of organising them offers more simplicity, and a clearer logic. Selecting fit-for-purpose products for a wide range of brand-packaging and promotion applications has never been easier.”

The unified product offering is complemented by a range of expert services, to help Metsä Board’s customers achieve better consumer experiences with less environmental impact. On pages 28–29 you can read more about our packaging design services. Our expert services cover a range of solutions targeted for specific needs, including packaging analysis and design, technical expertise and R&D, as well as availability services.

The key is collaboration – we believe in constant improvement, and in developing packaging solutions together. This new way of looking at Metsä Board’s offering brings us one step closer to the customer, and allows us to take a proactive role in bringing them solutions and ideas for future success in a highly competitive market.

Please visit our website for the new product names as well as a conversion tool. There is also a handy product table with direct links to product-specific technical data.

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WHITE KRAFTLINERS WKL

FOOD SERVICE BOARDS FSB

FOLDING BOXBOARDS FBB

NATURAL

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MetsäBoard Natural FBB

CLASSIC MetsäBoard Classic FBB

MetsäBoard Classic FBB CX

MetsäBoard Natural FSB Cup

MetsäBoard Natural WKL MetsäBoard Natural WKL Bright

MetsäBoard Classic WKL

PRO

PRIME

MetsäBoard Pro FBB

MetsäBoard Prime FBB

MetsäBoard Pro FBB Bright

MetsäBoard Prime FBB Bright

MetsäBoard Pro FBB CX

MetsäBoard Prime FBB CX MetsäBoard Prime FBB CXB

MetsäBoard Pro FSB Cup MetsäBoard Pro FSB

MetsäBoard Pro WKL

MetsäBoard Prime WKL

MetsäBoard Pro WKL Bright

MetsäBoard Prime WKL Bright

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SUPPORTING YOUR BRAND COMMUNICATION SUCCESS Our high-quality paperboards and expert services help you create the most powerful brand communication and brand experiences – from the package itself to various retail solutions.

IN PACK: Packaging solutions for consumer goods ON SHELF: Retail-ready tray solutions High-quality, lightweight materials ensure easy opening, faster shelf filling and replenishment.

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Perfect for consumer packaging used in all types of retail environments, offering consistency and outstanding printing properties.

ON THE GO: Solutions for food service Lightweight and sustainable solutions that perform well in printing and converting and are safe for direct food contact.

ON DISPLAY: Display and point-of-sale solutions Quality boards for display and point-ofsale solutions to both attract the eye and inform the customer.

IN GRAPHICS: Solutions for graphical uses Metsä Board’s paperboards for graphical end uses are ideal for enhancing content and adding a personal touch.

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