CCL Industries

Headof Sustainability and Communication

CCL Industries is a portfolio of packaging specialists serving a wide range of government institutions and large global customers. Head of Sustainability and Communication Marika Knorr explained the latest developments in conversation with Phil Nicholls.

Innovation is a core part of the broad range of products at this global speciality packaging pioneer. A prime example of this operating philosophy can be found in the polymer banknotes produced by the CCL Secure subsidiary.

“Since the first GUARDIAN™ polymer banknotes were launched in 1988, the benefits have been recognised around the world,” explained Head of Sustainability and Communication Marika Knorr. “Put simply, polymer banknotes are more secure, being much harder to counterfeit, more hygienic

to use and having less of an environmental impact than paper notes. They’re also more durable, which means they need to be replaced less often. Even better, polymer notes are recyclable into other long-lasting plastic products at the end of their life, such as car components or flooring.”

Established in 1951, CCL was founded as Connecticut Chemicals Limited in Toronto, Canada. In 1983 the container business was added, then in 1985 specialty packaging arrived. By 2001,

Marika Knorr

CCL INDUSTRIES I PROFILE

the Label Division comprised 13 facilities and was limited to North America.

It is at this point that CCL Industries’ intensive acquisition and growth began. By 2020, the group owned 170 produc tion facilities in 40 countries with 22,000 dedicated employees.

A global operation

Today, CCL Industries has 25,300 employees at 205 facilities in 43 countries, which generated a total revenue of CDN $6.4 billion in 2022. CCL Industries is the partner of choice for many large brands that operate globally, but also plenty of local companies.

As the largest label company in the world, CCL Industries provides innovative solutions to the home and personal care, premium food

and beverage, healthcare and specialty, automotive and durables, and consumer markets worldwide. The company is divided into four reporting segments: CCL, Avery, Checkpoint and Innovia.

CCL is the world’s largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications. CCL serves government institutions and large global customers in the consumer packaging, healthcare and chemicals, consumer electronic device and automotive markets. Complementary products and services are sold in parallel to specific end-use markets.

The Avery segment is the world’s largest supplier of labels, specialty converted media, and software solutions for short-run digital printing applications for businesses and consumers.

These lines are available alongside supporting products sold through distributors, mass market stores and e-commerce retailers.

Checkpoint is a leading developer of RF- and RFID-based technology systems for loss prevention and inventory management applications – including labelling and tagging solutions – for the retail and apparel industries worldwide. Finally,

Innovia is a leading global producer of specialty, high-performance, multi-layer, surface- engineered films for label, packaging and security applications.

Innovative designs

With over 200 production sites, CCL is a truly global company that meets the needs of both global and local customers. It is in the DNA of CCL that the investment in the latest printing and production technology is key. CCL offers all printing techniques and can also combine several options for the best results in terms of printing quality.

“The focus on premium embellishments and sustainability sets CCL aside from the competition – as does its innovation

capability,” said Ms Knorr. “As we have many different technologies within the CCL Industries Group, such as RFID tags, material science and printing excellence, then many things are possible that other companies cannot offer.”

When innovating, it is key to design the l abels and other product decorations according to the Design for Recycling Guidelines that have been issued in many parts of the world, such as APR in the United States and RecyClass in Europe.

“Basically, a bottle consists of three parts – the bottle, the cap and the label or sleeve,” explained Ms Knorr. “All these parts need to harmonise so that the bottle can be separated efficiently in the mechanical sorting and recycling process.”

An evolving market

The current trends in packaging and labelling are towards sustainability, digitisation and alternative materials. CCL

works with an extensive network of partners, ranging from suppliers to customers. This also includes a special sustainability network including industry organisations, associations and certification bodies.

“In recent years, there has been a shift from simply being the supplier to also consulting on the best options for labels and other product decoration,” continued Ms Knorr. “The customer expects us to have a clear understanding of the landscape when it comes to regulations and recycling infrastructure. Thus, we have invested in our capacities to meet these expectations.

“In terms of sustainability, it is our goal to be the thought leader in the industry. We are fully aware of our responsibility as the world’s largest player.”

Three years ago, CCL Label introduced a sustainability roadmap and strategy called ‘The Positive Programme’, consisting of three main pillars. The first one is a positive plastic pledge, committing to invest in research

The benefits of GUARDIAN polymer banknotes:

• Stronger – lasting from 3.8 to 6 times longer than paper

• Safer – GUARDIAN is inherently extremely difficult to counterfeit

• Cleaner – the surface is smoother than paper and totally non-absorbent

• Greener – distribution of polymer banknotes resulted in a 48.8% reduction in greenhouse gases

and development along the whole value chain to drive a more circular economy for FMCG packaging.

The second pillar addresses positive products, meaning investments in production efficiency and more sustainable technologies at production sites. This pillar also focuses on the Sustainable Label family – a portfolio of labels specifically engineered to support recycling and to deliver a better carbon footprint.

The third pillar is ‘The Positive Academy’, which reflects CCL’s ambition as the industry sustainability thought leader. This pillar supports fact-based discussions about packaging materials and the Design for Recycling guidelines. Finally, the academy delivers regular education to employees about the latest recycling techniques and how label materials can make a difference.

CCL is also investing in this evolving market with plans for the new Dornbirn facility in Austria to be a 20,000m² sustainable factory fit for the future. This facility will be a hub for Sustainable Shrink Sleeves for many major European brands. The new 140-metre-long and 70-metre-wide building will offer state-of-the-art workplaces for 220 employees.

The factory will be equipped with sustainable energy generation, as the heating energy for the building is primarily covered by heat recovery from the production machines, compressors and afterburners.

A future in relationships

Apart from striving to be the thought-leader when it comes to sustainability, CCL is looking to grow with its global brand customers. Over recent years, CCL’s adjusted net earnings moved from less than $500 million at the end of 2019 to well over $600 million for 2022. The company aspires to further gains in 2023.

“None of us could imagine such a development during the worrisome lockdown days of the winter and spring of 2020, but it happened,” Ms Knorr said. “Sales for 2022 were up 12.1 per cent to 6.4 billion dollars.

“This is the path CCL wants to continue along.”

CCL has an in-house BOPP manufacturer called Innovia. This puts CCL in the unique situation of having a material science specialist within the group. Thus, CCL can develop, test and tailor-make packaging materials – not only for labels but also for flexible packaging solutions and graphic films.

“In order to produce a new generation of shrink sleeves that are made from polyolefin and float during the recycling process, we invested 23 million Euros at our Innovia site in Plock, Poland,” Ms Knorr explained. “The line opened last year, and we are able to produce our own shrink sleeve material that can be modified as required.”

Alongside relying on the abilities of companies within the CCL Industries Group, close partnerships with employees and suppliers are vital to achieve these growth goals, according to Ms Knorr: “The future is in relationships. Full stop.

“We are fortunate to work for a company that believes in its people above all else, and then uses its resources to support them with new technology and products.

“This ideology extends to our customers; putting these relationships first and sup -

porting them with the greater resources of CCL. As we all plan for the future and the uncertainty it brings – a more competitive market, sustainable packaging, supply chain stability – none of these can be over come without strong relationships.

“I got into packaging seven years ago,” Ms Knorr concluded, “and this is where I found my passion for FMCG and sustainability-related topics.

“When CCL Label asked me to join them in my current role, I immediately accepted. This job gives me the opportunity to utilise my key strengths by com municating inte r nationally on a very important and contemporary topic. I am now able to contribute to a very pressing matter: sustainable packaging of the future.” n