White Paper. Quality Control for Premium Beverage. Vision Inspection Solutions for Wine, Beer & Spirits. CI-VISION Vision Inspection

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1 CI-VISION Vision Inspection Quality Control for Premium Beverage Vision Inspection Solutions for Wine, Beer & Spirits Implementing a Vision Inspection Solution to monitor the quality and security of your premium beverage product is an effective quality control method that ensures the most out of your valuable product. Using a vision inspection solution can protect your brand image, reduce the risk of retailer returns and protect consumers from harm and your company from potential liability risks. Contents 1 Introduction 2 Today's Beverage Market 3 Q & A with a Large Wine & Beer Distributer 4 How to Implement Vision Inspection Into Your Line 5 The CI-Vision Inspection Advantage 6 About CI-Vision

2 1 Introduction The global premium beverage manufacturing and packaging industry demands excellent product quality every time in order to always ensure brand name integrity. With more than 1,000 wineries in California alone, over 5,000 brands exist. In this highly competitive landscape, a winery could destroy its brand reputation with just one shipment of defective product. According to Wine Marketing Consultants, Tincknell & Tincknell, A brand is an idea, and if perceptions by anyone interacting with the product are negative the strength of the brand will suffer and brand equity will be lost. Premium beverages are packaged and sold when manufactured to the highest quality standard; therefore the manufacturer s time, resources, and profits should not be wasted on defective packaging. Premium beverage manufacturer s demand high margins, but if the product cannot reach the consumer due to product rework, retailer returns, or product recalls, margins can be lost. A vision inspection program can be a valuable tool for premium beverage manufacturers to protect their brand image and their bottom line. The ability of a vision inspection system to detect and prevent defective product packaging from being distributed to consumers is invaluable. In recent years, retailers and consumers have become much less tolerant with poor packaging quality that results in either health risks or increased retailer costs. If a vision inspection program is correctly implemented and managed, it can become a powerful tool to reduce rework and help safeguard your brand from recalls, increase retailer confidence, and protect consumers from defective bottled products and you from possible lawsuits. 1

3 2 Today's Beverage Market Today s North America Premium Beverage Industry Outlook Trending Beverage Manufacturing 11.37% 9.46% 0.64% 9.14% 9.89% Alcohol Wholesalers 7.22% 5.87% 4.78% 6.24% 6.44% Beer, Wine, and Liquor Stores 5.96% 2.00% 1.63% 5.74% 6.08% Craft Beers n/a n/a 10.30% 12% 14.40% Sageworks, a financial information company, According to Forbes.com, premium beverage manufacturing is expected to reach a 10% growth for this year, with wine sales expected to increase 8.2%. Manufacturers have an opportunity to capitalize on this industry growth, and by assessing their strengths and weaknesses within the production process they can implement new ways to reduce costs and eliminate defective product. A case study performed in a liquor bottling facility by, ABB International discovered that, If a premium beverage production line is down for sixty minutes, then up to 4,000 cases are lost in a normal twenty hour production day. The value of losses can be as high as $40-50,000 per event if you take into account the scrap costs, lost taxes, rework and overtime to recover lost production. This statistic may prove to be a current weakness for some beverage manufacturers, or a future threat to others. The use of automated inspection systems in the beverage market is not being fully utilized, but could provide a valuable solution for optimizing production. The risk and cost of not integrating a vision inspection system into the beverage manufacturing process grows with every new product and line. Do not damage your brand's equity during production, by letting it be weakened or compromised due to defective packaging reaching the retailer or consumer. Not only can defective products that reach the customer be damaging to the manufacturer, but just one defective bottle in the production line could result in thousands of costs. According to Wines & Vines, Bad packaging materials can add 5%-13% more to the packaging cost... when a winery out sources packaging components separately to multiple suppliers compatibility issues often arise, causing expensive downtime and packaging defects. Defects such as a wavy glass bottle or choked necks can bend or break filling valves, dramatically increasing production costs. The top tier beverage companies are now implementing vision inspection programs, as a standard to help protect their valuable brand, production process, and their reputation for quality. Vision inspection capabilities for the premium beverage industry include container dimensional inspection, proper fill level, cork presence, correctness of cap, seal integrity, label & print verification, and case packing. Implementation of a vision inspection solution can instill confidence to distribute 100% inspected product to retailers, distributors and consumers. White aper MTT TD 2

4 Buffalo Trace Inspects Labels, Caps & Fill Levels Buffalo Trace Distillery ensures their complete packaging & bottom line Understanding Buffalo Trace s product inspection needs, CI-Vision designed and implemented a 4-camera solution that inspects for proper cap seal & fill-level, and correctness of neck, front, and back labels on un-oriented bottles. The system s scalability and ease of use is what appealed to Buffalo Trace. Using CI-Vision s intuitive CIVCore software, a high-speed production line of 300 bpm and 13 different product changeovers becomes very feasible to operate. Since implementation, Buffalo Trace has seen successful results in reducing rework costs, minimizing production downtime, and eliminating manual label inspection. According to Dale Mason, Distillery Engineer for Buffalo Trace, One of the biggest benefits of a vision inspection solution, over the human aspect, is the assurance of repeatability, with the ability to measure the same, day to day. 4

5 3 Q & A with a Large Wine & Beer Distributer Manufacturers understand every step of the supply chain in order to ensure the highest in product quality throughout every phase. In the premium beverage industry, this controlled substance is highly regulated, and must adhere to strict distribution and packaging laws. We spoke with a major alcohol distributor, in order to better understand and communicate the supply chain process and what occurs when defective products enter the market. Q: What is the supply chain process or steps that must occur in order to remove the defective products from the market or your warehouse? A: Ideally, we would like to identify all defective products before they reach our retailers, however majority of the defective product has already been distributed or enters the market before we can catch it. Majority of our products we distribute our supplied to us in large case packs and/or pallets, making defective product very difficult for us to prevent from being distributed. When we do catch defective product we make sure to identify what the defect is, take a picture, and communicate the damage to the supplier as well as credit or bill them for the wasted products. If the defective product has already reached the retail market, the retailer will identify us, the distributer, of the issue and we will take immediate action to remove and prevent further distribution of the product. Majority of the time, defective products will end up going to waste, therefore costing the distributer and manufacturer lost profits and wasted resources. Q: As a major distributor of Beer and Wine name brands, what are the most common defects you see in packaging? A: Labels that are missing are a huge problem area for both Wine and Beer products. Particularly on wine product, where important product information is communicated, it can be illegal to sell if labels are missing. The FDA and local governments heavily regulate the labelling process for premium beverage manufacturers and must grant approval for each new label designed and distributed. Product information such as the UPC, alcohol percentage, and manufacturer information must be properly readable and displayed on every label. Without adherence to strict label laws, suppliers not only risk heavy fines from the FDA but distributers will be forced to drop the product from their supply. Common defects for wine bottles are proper fill and cork levels. Without proper fill and sealing, wine risks being oxidized and therefore ruining the quality of the beverage, as well as wasted valuable product. *Due to the huge demand for craft beers in 2010, with 11% growth in volume, distributers are supplying more of microbreweries beers. However, they will be less hesitant to drop an un-known brand if they have a bad experience with the product due to defective packaging. Q: What costs are associated for the distributer and manufacturer when you receive defective batches of product? A: When unsellable products must be accounted for, distributers will either bill or credit the manufacturer for the lost amount. If only one product of a batch is defective, the distributer will not take any action unless it has become a reoccurring issue, in that case their trust in the manufacturer is diminished and their product is potentially dropped. 5

6 3 Where Vision Solutions Fit Into Your Line 100% detection of defective products in the beverage bottling process is now becoming a necessity in every major market today. The majority of these critical defects are created during the filling, capping and labeling process. Shown below are where most defects occur and where a vision inspection solution can play a critical role in ensuring quality in a beverage packaging line. LIQUID FILL LINE Empty Bottle Inspection Neck gauging - side and bottom wall including thickness, blisters, contamination & holes, gate, foreign material/debris inside bottle. Label Inspection Label presence, position and ID. Label presentation including double labels, flag labels, wrinkle detection. Verify codes. Cap and Fill Level Cap presence, position, skew, color, fill level and safety band integrity. Critical Inspections: Missing or incorrect cap Under-torqued caps (cap height measurement) Improperly-torqued caps (cap skew) Over-torqued caps (cap skew and damaged tamper-band) Missing or damaged tamper-band Case Packer Inspection Product presence, placement & correctness; exterior codes, ID, decorations & flap placement & position. 3

7 4 How to Implement Vision Inspection Into Your Line Vision inspection systems are reliable and accountable solutions for 100% detection of defective premium beverage packaging. They are programmed to analyze, capture and virtually ensure that a defective package will never reach a consumer. There are 3 ways to implement a vision inspection program: (1) Do it yourself (DIY) (2) Use a systems integrator (3) Partner with a vision inspection solution provider However, according to a US based vision inspection expert, on average, 90% of vision implementation projects fail to meet or exceed expectations due to factory conditions, product handling and the need to inspect multiple projects on each line. Beware of component suppliers selling low cost and do-it-all components, because in the end it may cost you more than you bargained for. Do it yourself (DIY) According to industry analyst, the Automated Imaging Association, the real costs of in-house product development are often hidden in the lost opportunity cost and added labour of not getting a product to market on time. Due to a steep learning curve, lack of industry standards and time-to-market pressures the in-house approach is impractical. Studies show that, in today's fast-paced markets, the opportunity cost of a six-month delay in product development can result in a 10% increase in manufacturing costs. These potential costs associated with a DIY implementation will prevent any kind of ROI, and may not provide the quality assurance expected of the vision technology components. Use a systems integrator System integrators have the implementation expertise necessary to provide application-specific solutions, however they lack the in-house service support required should system problems arise. After implementation, your risk for added costs increases as additional support may be needed over the life cycle of the system. A system integrator may offer the capabilities necessary to complete the project, but they possess many limitations. Partner with a vision inspection solution provider Vision inspection solutions can be readily integrated into existing or new lines as a robust, turnkey system. Brand owners and manufacturers can gain the capability to perform automated changeovers for a large variety of products and brands. The newest 360 degree technology utilizes sophisticated computer software and multiple cameras to inspect containers in any orientation. Providing manufacturers with unmatched levels of product inspection accuracy, speed & versatility, combined with ease-of-use and future flexibility, it reduces the need for advanced training and minimizes downtime due to operator error. As today s technology rapidly advances, purchasers of vision inspection systems should choose adaptable systems in order to competitively sustain. When choosing to purchase a system, remember to evaluate the importance of your implementation process. 4

8 5 The CI-Vision Inspection Advantage CI-Vision inspection solutions are designed to be simple to operate and maintain, thereby making it easy for line operators to take ownership of your quality initiative. Once a new CI-Vision System has been installed and adjusted to specific customer needs, it requires minimal maintenance and can easily be operated by existing line personnel. Should there be any need for assistance after the system is installed, tested and commissioned, CI-Vision maintains a network of technical assistance centers around the world. CI-Vision offers multiple levels of vision inspection training for operator, maintenance and administrative personnel. The goal is to make everyone involved with a quality assurance program as comfortable and competent as possible with the installed vision application. Since 1979, CI-Vision has designed, built and installed turnkey vision inspections solutions to inspect a variety of products and processes. Each standard solution is configured specifically to the individual customer s needs. Many of today s less sophisticated vision inspection solutions do not offer the ability to automate changeovers, which limits them to performing on dedicated lines. Brand owners whose lines package a variety of products should be sure that the system they buy does enable automated changeovers. Purchasers of vision inspection systems need to be aware that rapidly changing technology may leave them behind if they choose a system or a manufacturer not adaptable to those changes. As you evaluate the system you are considering, evaluate the company that stands behind it as well. A vision inspection solution is able to provide you the means of being able to detect defective products accurately and reliably before continuing in your process. CI-Vision is an expert in vision technology and has been perfecting this craft for over 30 years. When considering implementing a vision inspection program, consult CI-Vision to discover what solutions can be provided for your beverage manufacturing process. 5

9 6 About CI-Vision CI-Vision is a leader in the design, manufacture and installation of vision inspection solutions for a wide variety of applications, ranging from molding operations to high-speed beverage and food packaging lines. CI-Vision inspection systems include all hardware, software, installation, startup, training and documentation. 6

10 For more information CI-Vision 2640-A White Oak Circle Aurora, IL Tel: (630) Fax: (630) Specifications subject to technical changes CI-Vision Printed in U.S.A.