Nextgen whitepaper June 2013

June 2013

PACKAGING REDUCTION VS FIR…

THE BALANCING ACT! PACKAGING REDUCTION VS FIR…

Hosted by Your Packaging Partner Published by: Your Packaging Partner Albion Mills, Albion Road Greengates, Bradford UK, BD10 9TQ T: +44 (0)1274 200 700 E: info@yourpackagingpartner.com

CONTENTS

01 02 05

07 10

Packaging Solutions That Bridge The Gap

Executive Summary

What Is Coca-Cola Doing On Packaging Reduction?

About NextGEN About Coca-Cola About Legal Impackt

So What Are The Practicalities of FIR?

About Your Packaging Partner

EXECUTIVE SUMMARY For many years now Brands and Retailers

The Food Information Regulations (FIR) bring

gap between regulatory requirements and

have focused on packaging reductions,

EU rules on general and nutritional labelling

packaging reduction strategies. These

historically weight and cost reductions and

together into a single regulation to simplify

solutions can provide a mechanism to free-up

more recently, carbon reductions. With the

and consolidate existing labelling legislation.

space for all mandatory information on

Food Information Regulations being published

The new legislation will enable consumers to

packaging while meeting customer needs

in November 2011, does this mean packaging

make informed decisions on the foods that

today and in the future.

reduction will be replaced by increased

they buy, by ensuring labels are legible,

packaging to allow for additional mandatory

understandable and not misleading.

This white paper has been published by Your Packaging Partner in support of our Virtual

legal information?

Transitional arrangements mean most

NextGEN event held on 16th May 2013,

Coca-Cola has been working hard for many

requirements do not apply until 2014, but the

supported by Packaging News. It provides an

years on environmental strategies including

clock is ticking and businesses need to be

insight into the strategies and reductions

packaging reductions; light-weighting and

aware of potential issues, requirements and

already implemented by Coca-Cola and an

more specifically, carbon reduction

timings involved to allow for suitable planning

introduction to FIR and the impact they will

programmes. With a valuable insight into how

and implementation.

have on packaging. In addition, it considers the packaging solutions available today in the

global brands plan and execute their packaging strategies, Coca-Cola can

FIR is likely to affect all packaging and given

marketplace that could help reduce the impact

demonstrate this clearly and share some of

the scale you should start planning for these

the FIR may have on packaging now and in

their future targets.

changes now. The good news is there are

the future. We need to act now...

packaging solutions that can help bridge the

01

Packaging Reduction vs. FIR‌ The Balancing Act!

WHAT IS COCA-COLA DOING ON PACKAGING REDUCTION? WHAT ARE COCA-COLA Chris Bowers European Packaging Innovator, Coca-Cola

The Coca-Cola Company Environment 2020 Strategy is a European strategy not just UK, but Coca-Cola Enterprises Limited also has a UK based strategy of their own.

Packaging is only one element of the European Environment Destination 2010 – 2020, other areas include sourcing, water and carbon.

European Environment Destination 2010 - 2020 OUR CARBON PROMISE: We will reduce the carbon footprint of the drink in your hand by 20% by 2020.

The whole life-cycle will be analysed from ingredients and packaging through to refrigeration and recycling. All these have a role to play in a carbon reduction programme.

OUR PACKAGING PROMISE: We will recycle the equivalent of 80% of the packaging we use and significantly increase the use of recycled and renewable materials.

This will be achieved through a Reduce, Recycle, Renew programme including: • Offer best consumer packaging with 25% less material • Work with collection schemes and recyclers to recycle at least the equivalent 80% of our packaging • Lead by example with 100% recyclability on our bottles and cans and maximum use of recycled alu, steel and glass • Make all our plastic bottles with recycled and/ or PlantBottle material.

Packaging Reduction vs. FIR… The Balancing Act!

02

PLASTIC BOTTLE SUSTAINABILITY

PET packaging has fuelled our growth for over 40 years as PET makes up more than half of our packaging consumption. To remain competitive we must do more with less fossil

Today, 30% of a Coke bottle is made from Plant-Based material with the long-term strategy being for a 100% sustainable solution.

based materials.

Plastic Bottle Sustainability To reduce the use of petrochemicals in PET

Towards The Bottle Of The Future

resin alternatives need to be created. Ethanol, made from sugar cane, can produce Bio-MEG which makes up 30% of the PET resin, the remaining 70% can be produced from biomass (Bio-TA) resulting in a fully sustainable PET resin.

This innovation has been heavily invested in

by Coca-Cola but we have also opened this technology up to non-competing brands such as Heinz. *Also includes recycled material Europe 2020 – Environment, Roadmaps & KBIs

IN

LIGHT-WEIGHTING

2007

IN

2011/12

BY

2020

Purely looking at packaging weight

The weight = 26g

reduction, huge steps have been

rPET content = 0%

The weight = 21.7g

Plant PET content = 0%

rPET content = 25%

The weight = 18g

Film = 70ug film

Plant PET content = 22.5%

rPET content = 40%

Tray = Tray

Film = Ultra Film (45ug)

Plant PET content = 22.5%

Tray = Tray / Trayless

Film = Bio Film

taken already in both SSD packaging and cans.

Looking at the 500ml bottle.

Tray = No tray

03 Packaging Reduction vs. FIR‌ The Balancing Act!

“The targets for 2020 are aggressive but achievable.”

Cans and future focus Aluminium cans are a real focus when it comes to environmental impact. Although the can is one of the most developed packs in the marketplace today, being extremely light for its delivered volume, aluminium processing from source creates a great deal of carbon emissions. Therefore leveraging recycled content for our cans is essential and we need to work with Industry and Governments in Europe to improve collection and availability of recycled material.

This does not mean we stop light weighting and we have projects now that are looking at further savings in ends and bodies.

PUTTING THIS INTO PERSPECTIVE, FOR EVERY TONNE OF ALUMINIUM SAVES: Europe 2020 – Environment, Roadmaps & KBIs

• 4 tonnes of bauxite

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

• 9 tonnes of CO2 emissions

improve packaging and Coca-Cola is committed to achieving the

• 85% of the energy needed to make aluminium

best possible solutions to ensure we achieve our goal of achieving

from raw materials

sustainable communities.

• 97% of the greenhouse gas emissions

UES

T I ON S

Q

as far away as it seems when you are building

target into our strategy at this time. But rest

a technology project from scratch.

assured, as soon as it becomes available, we will fully leverage the technology.”

FROM THE FLOOR

The second issue we have is that we want to

Do you take FIR considerations into

use recycled content as well to minimize the

account on your labelling and

total environmental impact. As PET, Plant or

packaging reduction schemes?

otherwise is just PET, we cannot claim a Plant

When will Plant PET be fully used, you

sourced level as it cannot be detected in the

are only predicting 22.5% by 2020?

recycling system. So to use both gives us an

“There are two difficulties with predicting the

actual lower level of Plant sourced plastic than

level of Plant PET use by 2020. Firstly is

we would like.

“Yes we do. We have been focusing in this area now for some time and are working on our packages to ensure they are fully compliant before the December 2014 date. It is not an easy project especially with the

availability. We are working with a limited

smaller packages, but we are confident we will

capacity in the system and while we are

So although we are striving to raise the level

developing the technology to use 100% Plant

as soon as possible, 2020 is probably too

PET, that capacity will grow slowly. 2020 is not

close and the technology too new to put that

be fully compliant well in advance of the requirement.”

Packaging Reduction vs. FIR… The Balancing Act!

04

SO WHAT ARE THE PRACTICALITIES OF FIR? PHIL DALTON Head of Regulatory, Legal Impackt

The ‘Food Information Regulation’ (FIR) is the first comprehensive re-think of how information about food should be presented to consumers since 1979. The conclusion it enshrines about the type of information consumers require is far from radical. In fact some industry experts have bemoaned the lack of innovation and simplification, suggesting that the new Regulation is no more than tinkering and the net effect on industry, a requirement that virtually every food label across Europe needs to change, is disproportionate to the benefit for consumers. It certainly doesn’t reflect the amount of time the EU put into debating the subject, a process that began in 1994!

Be that as it may we have a new set of requirements that will drive a different approach to labelling of products and will produce an ongoing programme of change over the next several years.

A NEW APPROACH TO LABEL DESIGN

IT IS A PROGRAMME OF CHANGE

The consequences of the immediate changes,

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

in particular the introduction of a minimum font

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

size for mandatory food information and the

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

change to the hierarchy of information on food

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

labels, are the key to understanding why a

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

new approach to label design is likely to be

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

necessary. It is clear that food manufacturers

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

or retailers will no longer be able to design

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

labels and as an afterthought squeeze the ‘legals’ onto a minor face of the packaging in

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

small print. The Food Information Regulation

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

requires that sufficient space is provided for

general sense of ‘be prepared’, for these changes

the legal information at or above a minimum font size before any additional ‘Voluntary Food

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

Information’ is included on packaging.

over the next few years. The immediate change can be planned in, but what the full future programme of change looks like is not currently visible.

This uncertainty is not helpful for the food industry that must constantly be aware that changes in the law could be announced at any time.

05 Packaging Reduction vs. FIR… The Balancing Act!

WHAT IS THE IMPACT ON SMALL BUSINESSES?

CONCLUSION

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

We have to deal with the specific requirements and the consequences

challenge for small businesses that often do not have the labelling

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

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

the timing of changes to meet the December 2014 deadline for

EU has committed to implementing future change on fixed dates each

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

year (likely to be 1st April).

programme of future changes with help from the EU to structure these changes in a way that minimises disruption and cost.

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

HOW WILL IT AFFECT FRONT OF PACK LABELLING?

labelling was needed to ensure the information presented to consumers remains relevant. A UK only approach may have arrived at conclusions

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

quicker, but they would likely have been substantially the same

nutrition information on front of pack as a step towards addressing

conclusions based as they were on the premise that consolidation and

consumer choice in the fight against obesity. The Food Information

simplification was required to provide a basis for tackling diet related

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

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

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

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

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

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

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

any change to food labelling requirements based as they are on

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

common principles.

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

Having reviewed and confirmed the basic legal requirements (subject to the additional changes yet to be confirmed), the next challenge for government will be to inform consumers and ensure they understand how to use the information provided.

THE ROLE OF PACKAGING TECHNOLOGIES During the consultation process much was made of the possibility of ‘new technologies’ influencing what should appear on a label and the possibility for some of the consumer information to be given by other means than on the label. In the short term this option was not taken forward, but there is a real possibility that in the future we may see the law change to be more flexible. For now the details must all be on the label, and must be presented in a way that is clearly visible and unobstructed. However, it can only be a matter of time before this changes, driven in part by food companies who want to get back to packaging being about presentation rather than ‘Information’.

The biggest benefit to consumers in the application of new technologies is likely to be the ability to interpret the food information that is provided. Whereas the label merely presents useful information, a technological solution can help the consumer to interpret and to use that information to plan a healthier diet.

Packaging Reduction vs. FIR… The Balancing Act!

06

WHAT DOES IT MEAN FOR PACKAGING REDUCTION? Gillian Garside-Wight Packaging Technology Director, Your Packaging Partner

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

Well, that really does depend on the available space.

Smaller packaging generally delivers a packaging cost reduction as well The packaging industry has changed over the last +20 years since the

as less packaging to landfill, lower transportation and distribution costs

Essential Packaging Regulations were introduced, however progress

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

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

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

regulatory change since 1988, where other voluntary obligations have

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

shaped packaging today, including Courtauld.

increase in mandatory information and an increase in the minimum font size.

Courtauld and the economic downturn have brought packaging reduction (weight, cost and carbon) to the forefront of most FMCG

Regulatory requirements must be met but thankfully there are

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

packaging solutions available in the marketplace today that can help.

packaging components or reducing the physical size of the packaging.

The solutions illustrated can be used for voluntary information only and

Others can be more subtle with light-weighting substrates like

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

cartonboard, glass and flexibles.

in the regulations that states that technological means of displaying information maybe valid in the future.

POTENTIAL SOLUTIONS INCLUDE: LEAFLET LABELS

REVERSE PRINTED

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

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

additional voluntary information is required.

reverse printing the inside provides a much larger available space to print all required elements.

07

Packaging Reduction vs. FIR‌ The Balancing Act!

QR CODES

TALKING PACKAGING

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

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

retailers to communicate so much more about their product, packaging

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

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

the packaging will talk to the customer and provide them with

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

information about the product, brand, promotions and the

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

sustainability of the packaging components.

desires.

INTELLIGENT TILL RECEIPTS

AUGMENTED REALITY

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

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

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

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

customer bought Hellmann’s mayonnaise a recipe receipt was printed

emerge in key brands within grocery retail. The customer simply

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

downloads an App on their smartphone and scans the pack which

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

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

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

recipes, TV adverts, information about the brand, packaging

customer experience.

information and so much more. The good thing about this solution is that it can be as interactive as you want and can be updated without the time and cost associated with packaging amends.

Packaging Reduction vs. FIR… The Balancing Act!

08

MULTI - CHANNEL RETAILING

IN CONCLUSION

How packaging requirements will develop in the future is not known, however with the growth of internet sales and social media set to continue, multi-channel retailing is the future and the role of packaging will inevitably change. One thing is for sure, consumers will expect more:

• More convenience in purchasing • Easier to dispose of – recyclability • More information available about the Product and packaging • More for their money!

With multi-channel retailing the range of solutions available to brands needs to be diverse and packaging also needs to adapt according.

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

Social media and internet shopping have changed the face of retail

smarter with packaging – meet the regulatory requirements and

sales and marketing.

customer needs, now and in the future.

The world’s first Tweet Shop opened in London to promote new Special K crisp products using the power of social media. Shoppers who visited the ‘Tweet Shop’ could pick up a bag of new crisps, and all they had to do to pay was recommend them on Twitter using the smartphones and iPads provided in store.

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

CLOSING REMARKS With the ever looming date of 13th December 2014, you need to ask yourself if you are ready for FIR? EVERY pack will need to change with the introduction of FIR, and if you haven’t already done so, you need to start NOW! You need to get smarter with your packaging to meet regulatory requirements & customer needs.

09 Packaging Reduction vs. FIR… The Balancing Act!

FIR is happening and it will affect packaging!

However, this should not compromise packaging reduction programmes!

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

ABOUT NEXTGEN

ABOUT COCA-COLA www.coca-cola.co.uk

NextGEN is an exclusive, invitation only, forum whereby

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

retailers, brand owners, food manufacturers and packaging

company, refreshing consumers with more than 500

producers come to discuss and find solutions to the latest

sparkling and still brands including Diet Coke, Fanta,

industry challenges.

Sprite, Coca-Cola Zero, vitaminwater, Powerade and many more. Coca-Cola beverages are enjoyed in more than 200

Launched in 2010, NextGEN events have covered many

countries at a rate of 1.7 billion servings a day.

hop topics including migration, innovative packaging solutions, changes in customer behaviours and disposal /

With an enduring commitment to building sustainable

recycling challenges. With a non-sales approach taken by

communities, Coca-Cola is focused on many initiatives

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

including reducing their environmental footprint and

cross-discipline team to find solutions to common industry

supporting active, healthy living.

headaches.

ABOUT LEGAL IMPACKT

ABOUT YOUR PACKAGING PARTNER

www.legalimpackt.com

www.yourpackagingpartneruk.com

Legal Impackt provides regulatory services covering

Your Packaging Partner is the largest, and most

consumer products from food to health and beauty and

successful, independent packaging development team in

everything in-between.

the UK, with experience in FMCG categories working within major retailers and brand owners.

Our team, made up of a unique blend of Regulatory Advisors and Creative Copywriters, is at the cutting edge

We deliver many benefits to our clients by creating

of food production, safety legislation and industry codes,

packaging to meet their diverse needs including solutions

servicing many of the UK’s leading retailers.

to provide the political, commercial and social needs necessary from packaging today.

Want to speak to one of our experts?

Contact Sarah Wilford, Marketing Manager

swilford@yourpackagingpartner.com www.yourpackagingpartneruk.com

Packaging Reduction vs. FIR… The Balancing Act!

10

Corporate Headquarters: Your Packaging Partner, Albion Mills, Albion Road, Greengates, Bradford, West Yorkshire, UK, BD10 9TQ T: +44 (0)1274 200 700 E: info@yourpackagingpartneruk.com www.yourpackagingpartneruk.com

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