REDUCING THE COST OF PACKAGING IN THE FOOD AND DRINK INDUSTRY

Transcription

1 GG157 GUIDE ENVIRONMENTAL TECHNOLOGY BEST PRACTICE PROGRAMME REDUCING THE COST OF PACKAGING IN THE FOOD AND DRINK INDUSTRY GOOD PRACTICE: Proven technology and techniques for profitable environmental improvement

2 REDUCING THE COST OF PACKAGING IN THE FOOD AND DRINK INDUSTRY This Good Practice Guide was produced by the Environmental Technology Best Practice Programme Prepared with assistance from: Aspinwall & Company Crown copyright. First printed February This material may be freely reproduced in its original form except for sale or advertising purposes. Printed on paper containing 75% post-consumer waste.

3 SUMMARY The food and drink industry is the largest industrial consumer of packaging materials. Packaging represents a significant proportion of production costs - costs that can be reduced by minimising inprocess packaging waste and by making changes to the type of and way packaging is used. Improving packaging management will benefit your company by: increasing overall profitability; enhancing environmental performance; helping to comply with legislation. Reducing the amount of packaging use is a significant driver for the food and drink industry, as doing so will also lower the obligations placed on companies by the Producer Responsibility Obligations (Packaging Waste) Regulations from January These packaging waste regulations currently apply to companies that handle more than 50 tonnes of packaging per year and have a turnover of more than 5 million, but this threshold will be reduced to 1 million after the year For companies that are currently outside the limits of the regulations, guidance on reducing packaging use will help them to remain under the current 50-tonne threshold. But for any user of packaging there are significant cost savings to be made from minimising its use. This Guide demonstrates, through a series of case histories from a variety of sub-sectors and regions, measures taken by food and drink companies, large and small, to achieve reductions. These success stories are brought together to stimulate action in others to start minimising their own packaging use.

4 CONTENTS Section Page 1 Introduction How reducing packaging use can save your company money How this Guide can help 2 1. Packaging legislation 2 2 Reducing the cost of packaging The full cost of packaging to a manufacturer Reduction of packaging materials 5 2. Re-use of packaging Recycling waste packaging Other benefits 5 Industry Examples 6 1 Packaging reduction brings healthy results 7 2 Optimisation of cardboard trays reduces packaging use 8 Trayless coffee packaging reduces packaging use 9 4 Elimination of inner collation wraps saves packaging costs 11 5 Redesign of garlic bread packaging saves tonnes 1 6 Re-usable trays improve handling and save money 15 7 Re-use of sandwich trays brings cost savings 17 8 Bulk purchase of label glue saves money 19 9 Plastics recycling through separation of waste 21 4 Action Plan 2 5 Further information 24

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6 1 INTRODUCTION 1.1 HOW REDUCING PACKAGING USE CAN SAVE YOUR COMPANY MONEY Total use of packaging in the UK is about nine million tonnes/year, nearly half of which is paper. Of this, about 0% of all packaging materials are recovered and most of this is recycled. 1 The remainder, about 6.7 million tonnes, is sent to landfill. 1 The food and drink industry is responsible for using over 50% of the total packaging output of the UK 2 - using between 4 to 5 million tonnes of packaging every year. This costs around 4 billion for the raw materials alone. Many companies, large and small, have identified opportunities to reduce the amount of packaging used and have made significant savings, often through simple, low-cost measures. If in-process packaging waste was reduced by an average of 1% across the food and beverage industry, it would save the sector about 50 million/year in raw materials purchased, not including the avoided costs of disposal and landfill taxation, and a further million saved on other factors, eg fuel and energy, manpower and resources. Reducing packaging use will also help to reduce the amount of paper, board, glass and plastic currently being sent to landfill as process waste or post-consumer waste. Improving packaging management will benefit your company by: increasing overall profitability; enhancing environmental performance; helping to comply with legislation. Changes in legislation, such as the Producer Responsibility Obligations (Packaging Waste) Regulations (see Section 1.) and the landfill tax, mean many companies will have to rethink their packaging by law and will have to demonstrate that they are recovering set amounts of materials each year. But there are also cost savings to be made that could add substantially to the bottom line. As this Guide makes clear, companies that are managing their packaging use carefully are saving money and increasing profits, as well as saving valuable resources and reducing disposal of waste. Thus there are two reasons to start rethinking your company s packaging needs: on average, packaging represents 1% of production costs; minimising packaging is a cost-effective way of complying with legislation figures. 2 Non-food goods account for 15%, consumer durables 9%, and other industrial and commercial users make up the remaining 24%. 1

7 1.2 HOW THIS GUIDE CAN HELP This Guide includes a selection of examples from the food and drink industry that demonstrate how companies of all sizes are already making cost savings in packaging, often by using simple low-cost and no-cost measures. 1 It illustrates, through these examples, how significant cost savings can be made in packaging by different food and drink manufacturers employing a variety of initiatives, while required standards of hygiene and branding are still being achieved. An Action Plan at the end of this Guide provides you with an initial approach to reducing your packaging costs. Further guidance that will help your company achieve good results is available in Good Practice Guide (GG140) Cutting Costs and Waste by Reducing Packaging Use, also produced by the Environmental Technology Best Practice Programme. GG140 includes practical steps to take that will help you to manage your packaging more effectively, and provides clear, concise information and practical advice on a range of issues, including: packaging design; avoiding the need for packaging; minimising packaging use; re-using existing packaging; recycling packaging materials and reducing disposal costs. A further Guide, (GG141) Choosing and Managing Re-usable Transit Packaging, will help companies to achieve considerable cost savings by redesigning packaging specifically for several journeys between particular suppliers and consumers. The Guide covers the logistics of managing a re-usable packaging scheme effectively. Both of these additional packaging Guides are available free of charge through the Environment and Energy Helpline on PACKAGING LEGISLATION The packaging waste regulations require that all companies with a turnover above a specified minimum and that handle more than a certain quantity of packaging must undertake or arrange for some recovery and recycling of packaging waste. The more packaging a company handles, the greater is its obligation to recycle or recover, and the higher is the likely cost of compliance. 2

8 Producer Responsibility Obligations (Packaging Waste) Regulations 1997 The packaging waste regulations: Apply to companies that handle more than 50 tonnes of packaging per year and have a turnover of more than 5 million ( 1 million after the year 2000). Require the companies that meet these conditions to take responsibility for the recovery and recycling of their obligation for packaging waste. Calculation of the obligation quantity is complex and is a function of: - the amount of obligated packaging handled; - the activity obligation (raw material manufacturer 6%, converter 11%, packer/filler 6%, seller/final retailer 47%); - UK recovery/recycling targets. 1 1 There are a number of exemptions from the regulations, eg returnable packaging that has been re-used. Companies can register individually with the appropriate regulator 2, or pass on their obligations to a third party operating a compliance scheme. In all cases, companies are required to collect data by weight. 1 Recovery: 1998/99 = 8%; 2000 = 4%; 2001 and beyond = 52%. Recycling (by material): 1998/99 = 7%; 2000 = 11%; 2001 and beyond = 16%. 2 Contact the Environment and Energy Helpline on for further details. The Packaging (Essential Requirements) Regulations 1998 legally require certain conditions to be met in relation to the manufacture and composition of packaging and to its suitability for re-use and recovery. They also require that packaging should be so manufactured that the packaging volume and weight be limited to the minimum adequate amount to maintain the necessary level of safety, hygiene and acceptance for the packed product and the consumer. Companies that are not currently covered by the packaging waste regulations could find they are included in the year 2000, and should be considering measures now to keep their packaging use levels below the 50-tonne threshold through waste minimisation. Year Threshold limits 1997, 1998, 1999 Total turnover is greater than 5 million Business handles more than 50 tonnes of packaging per year 2000 Total turnover is greater than 1 million Business handles more than 50 tonnes of packaging per year Table 1 Summary of packaging obligation threshold limits Do you have questions about the packaging waste regulations? Anyone from a UK company that has queries about how the packaging waste regulations, or any other environmental regulations, might affect their business has free access to the Environment and Energy Helpline on

9 2 REDUCING THE COST OF PACKAGING 2 Any company in the food and beverage industry, large or small, can make considerable savings by reviewing its packaging and considering ways to reduce, re-use and recycle materials. In recent years, many food and beverage manufacturers have made a variety of changes without compromising the integrity of the product or contravening health and safety measures. Practical guidance to achieving this can be found in Good Practice Guide (GG140) Cutting Costs and Waste by Reducing Packaging Use. 2.1 THE FULL COST OF PACKAGING TO A MANUFACTURER When assessing the benefits of minimising packaging, the full cost of the packaging system adopted for the safe containment of food and beverage products should be considered. This includes the purchase of a wide range of raw materials, eg: corrugated cartons; plastic bags; filler materials - expanded polystyrene (EPS), foam and paper; shrink-wrap; stretch-wrap; layer pads; pallets and slip sheets; drums and other containers. Other costs that should be included as part of your overall packaging costs are: transport and fuel costs for the delivery of materials from the supplier to the manufacturing site; storage on site and the costs incurred for warehousing space; the costs of final conversion (processing) of raw materials into containers, eg folding cardboard into boxes or blowing plastic preforms into bottles; the costs of running the packing and filling process; further transport and fuel costs to deliver goods to the customer; the disposal costs of trimmings, faulty packaging and abandoned product; packaging obligation charges for those companies over the threshold limits (see Table 1). Many of the above costs cover the purchase of equipment and machinery, energy and resource use and manpower resources. All of these areas can be a target for cost savings. Materials requiring containment can be solids, powders, liquids or gases, but all containers for these can benefit from the same waste minimisation approach, in the following order: first, avoid the need for packaging; second, minimise packaging use; third, re-use existing packaging; fourth, recycle packaging materials to reduce disposal costs. 4

10 2.2 REDUCTION OF PACKAGING MATERIALS First, measures to avoid or reduce the packaging used should be considered, eg eliminating an unnecessary layer. This can save on material, transport, storage and processing costs. Minimising packaging use can also save on a company s packaging obligation under the packaging waste regulations. 2. RE-USE OF PACKAGING Next, consider measures taken to re-use packaging, eg returnable transit packaging. This can save on: material costs; transport costs; storage costs. 2 Again, for many companies, this could result in a reduction in packaging obligation charges as, under the regulations, packaging used again is only counted the first time it is used, after which no charges are incurred. 2.4 RECYCLING WASTE PACKAGING Once the amount of packaging used has been reduced as far as possible, consider the recovery and recycling of waste packaging arising on site. Try to recycle the materials on site, eg companies that receive articles packed in expanded polystyrene (EPS) from suppliers often use this in packing their own products, if applicable. Finally, for any remaining packaging wastes, seek organisations that will recycle them, in order to avoid waste disposal charges. 2.5 OTHER BENEFITS Besides the savings that can be gained directly through reducing, re-using and recycling packaging, other benefits can be realised, eg: process management savings and increased efficiency; improved logistics, eg reduction of fuel consumption; reduced environmental impacts; enhanced customer relationships; promotion of a positive company image with stakeholders. The issues in this Section are all discussed fully in the Environmental Technology Best Practice Programme Good Practice Guide (GG140) Cutting Costs and Waste by Reducing Packaging Use, available free of charge through the Environment and Energy Helpline on

11 INDUSTRY EXAMPLES There are many sub-sectors in the food and drink industry, each using packaging in different ways. However, the examples contained in this Guide demonstrate the same principle - that large savings on packaging materials can be achieved through tried and tested waste minimisation techniques that apply to any company, whatever its function. Each of the Industry Examples that follow describe the way each company approached its packaging issues and explains why and how the changes were made. Industry Company Title Example 1 Country Harvest Natural Foods Packaging reduction brings healthy results 2 Pedigree Masterfoods Optimisation of cardboard trays reduces packaging use Douwe Egberts Trayless coffee packaging reduces packaging use 4 Nestlé Rowntree Elimination of inner collation wraps saves packaging costs 5 J Sainsbury plc Redesign of garlic bread packaging saves tonnes 6 Hartwall Bryggerier Re-usable trays improve handling and save money 7 The Boots Company Re-use of sandwich trays brings cost savings 8 Guinness Bulk purchase of label glue saves money 9 Devon Desserts Plastics recycling through separation of waste Table 2 Industry Examples 6

12 INDUSTRY EXAMPLE 1 Packaging reduction brings healthy results A health food company has reduced the thickness of plastic packaging on 1 kg packets of its range. Country Harvest Natural Foods reduced the gauge of plastic film from 75 µm to 60 µm, reducing the cost of packaging per item. A larger transit box of higher grade cardboard was also introduced to improve transit efficiency, increasing the number of packets carried from six to ten per box. Larger transit box creates savings Savings and other benefits achieved Overall savings achieved of 7 000/year - a saving of 1.12 pence/1 kg packet. Increased line efficiency due to easier loading onto pallets. Overall reduction in weight of packaging - leading to a reduced obligation under the packaging waste regulations. Benefits for the producer responsibility obligations of those companies supplied by Country Harvest. Background The packaging previously consisted of six, 1 kg plastic packets of health foods, per cardboard transit box. This plastic packaging cost 6.89 pence per 1 kg packet. The design of six packs per box caused logistical problems during end-of-line handling, and to assist in calculating orders, it was felt it would be easier to handle ten packs per box than six. There was also potential for reducing the gauge of plastic film. The reduction in plastic film gauge and increased transit efficiency has reduced the cost of packaging per product unit to 5.77 pence per 1 kg packet. Country Harvest anticipates making a direct cost saving in the first year following the introduction of these minimisation measures of at current rates of production, and further savings are anticipated as production increases. The investment cost was zero because the change merely entailed purchasing thinner specification packaging materials. Payback was therefore immediate. About Country Harvest Natural Foods Country Harvest Natural Foods is a small company with 60 full-time employees and a turnover of 10 million. The Company packs and delivers health foods including beans, breakfast cereals, dried fruits, nuts, seeds, pasta and pulses. Country Harvest s packaging operation also specialises in developing own label product ranges for other organisations such as supermarket chains. REDUCE 7

13 INDUSTRY EXAMPLE 2 Optimisation of cardboard trays reduces packaging use Simply lowering the sides of cardboard transit trays has saved a pet food company /year. Laboratory testing for Pedigree Masterfoods proved that increasing the strength of the sales carton would allow the use of a lowwalled transit tray. Savings achieved Reduction in corrugated carton board of 49%. Reduction in ink use of 49%. Net reduction in white kraft board used for the trays of approximately 12% (after strengthening). REDUCE Background The packaging system for Brekkies cat food was reviewed and redesigned with the intention of achieving cost savings. Previously, cat food cartons were packed into a high-walled cardboard tray. Laboratory compression testing and travel testing showed that an increase in the strength of the carton would allow the use of a low-walled tray. This produced considerable reductions in material use and significant cost savings. About Pedigree Masterfoods Low-walled tray (front) reduces packaging costs Pedigree Masterfoods is a leading UK pet food manufacturer. It uses a wide range of packaging media and systems including bags, sacks, cartons and cans. As a major user of packaging materials, the Company considers the cost of packaging materials and their environmental impacts at every stage of the production process, ensuring that pallet utilisation is maximised, marketing requirements are fulfilled and product integrity is maintained. The review of Brekkies carton packaging was originally a purely cost-driven exercise. 8

14 INDUSTRY EXAMPLE Trayless coffee packaging reduces packaging use A coffee company has improved the use of shrink-wrap to hold packets in place during transit and for display on the shelf. Douwe Egberts has eliminated cardboard transit trays and made transportation more efficient. Summary of main savings achieved Elimination of card, glue and printing on cardboard transit trays. Elimination of plastic foil wrap from carton trays. Reduction in weight of end packaging unit. Redesigned shrink-wrap (right) eliminates cardboard trays (left) Background Originally, coffee packets were packed on carton trays, and wrapped in plastic foil. On arrival at the point of sale, the plastic was removed and disposed of separately. Now, cardboard transit trays for the coffee packets have been eliminated. Packets are held in place during transit and while on the shelf by the shrink-wrap. Perforations around the base of the shrinkwrap allow the top and sides to be removed for presentation on the shelves. Overall reductions in operating costs of up to 15% for the supermarkets and supplier are anticipated because of reduced shelving and loading labour costs. Increased flexibility in packet size and more efficient shrink-wrappers have improved internal logistics at the production facility. REDUCE 9

15 Perforations in shrink-wrap Tabs for easy removal of perforated Perforated area is removed to allow consumers easy access to packets Benefits No card, glue or printing is required as the cardboard boxes have been eliminated. A reduction in the weight of each packaging unit has been achieved. Only plastic shrink-wrap is used, which is recyclable. Transportation is more efficient. The new shrink-wrap machine is more efficient and is flexible in regard to packet size. About Douwe Egberts Entire pack is shrink-wrapped for transportation Perforations in the trayless coffee pack transform it for presentation on the shelf Douwe Egberts is a company within Sara Lee/Douwe Egberts which is part of the Sara Lee Corporation. In 1992, Sara Lee/Douwe Egberts began a global corporate environmental programme. Corporate standards were set as part of an environmental management system, with each operational unit making efforts to achieve compliance with these standards through a target-setting, audit and review programme. Packaging reduction is one of the targeted areas within the product management of the environmental management programme. Another reason for targeting packaging was the introduction of the packaging waste regulations, which opened up the potential for cost savings through the minimisation of the obligation. REDUCE Future developments Through the Sara Lee/Douwe Egberts corporate environmental management system, Douwe Egberts is using tools such as life cycle analysis, machine tests and adaptations to pilot a range of packaging minimisation projects. These projects include aluminium-foil-free film, recycled cardboard and paper, and replacing large quantities of cardboard with small quantities of plastic. 10

16 INDUSTRY EXAMPLE 4 Elimination of inner collation wraps saves packaging costs A chocolate manufacturer has eliminated a layer of wrapping for bumper packs of one of its best selling biscuits. Nestlé Rowntree has been able to eliminate the inner collation wraps of its bumper packs of Kit Kat chocolate biscuits because of the development of a new wrapping machine. Savings achieved Reduction of up to 100 tonnes/year of polypropylene. Two-year payback on new wrapping machine. New bumper pack (below) eliminates extra packaging layer Background Owing to the limitations of the packaging machinery previously used by Nestlé, the two layers in bumper packs of Kit Kat chocolate biscuits had to be wrapped individually before they could be collated into the single bumper pack. Questions and feedback from customers and the Packaging Council prompted Nestlé to spend six months engineering a machine capable of wrapping without the need for the inner collation wrap. This was in accordance with Nestlé s ongoing policy of packaging minimisation. REDUCE 11

17 The new machine The engineering problem faced by Nestlé was the difficulty of packing one layer of Kit Kats above another without extra wrapping to hold them in place. The new machine overcomes this problem of stability while being able to work at very high speeds. This has allowed the inner collation wraps in the bumper packs to be eliminated and only a single outer wrapping used. The machine was installed at the York site. A phased introduction was used owing to the significant capital expenditure required, although the investment was paid for within two years by the cost savings made. About Nestlé Rowntree Nestlé Rowntree is the confectionery division of Nestlé UK Ltd, which is part of Nestlé SA, the world s biggest food manufacturer, based in Switzerland. Nestlé Rowntree employs people, about 500 of them at York where the Nestlé Rowntree Division is headquartered. Nestlé has a clear interest in protecting the environment and contributing to sustainable development. All of its activities, from procuring raw materials, through manufacturing the packaging, to marketing and distribution, are continually analysed to see what effect they may have on the environment. Every effort is made to reduce the impact, year on year. The reduction of plastic for packaging the Kit Kat 16-pack is just one example where this approach has been used. REDUCE 12

18 INDUSTRY EXAMPLE 5 Redesign of garlic bread packaging saves tonnes A supermarket company has redesigned the packaging of one of its own-brand food products. Sainsbury s garlic bread is now sold in a single layer of polypropylene and polyester plastic film, saving 160 tonnes/year of packaging. Savings and other benefits achieved Net savings of 160 tonnes/year of packaging. Improved transport optimisation due to space saved on lorry loads. Reduced obligation under the packaging waste regulations for supplier. Reduction in packaging waste to the consumer. Polypropylene single sleeve replaces cardboard box and plastic inner sleeve Background The previous bread packaging was a 500 µm white-lined cardboard carton weighing 4 g, made with 75% recycled material and a 20 µm plastic film (.0 g). The product is now packaged in a single layer of polypropylene and polyester plastic film weighing 5.9 g. REDUCE 1

19 Sainsbury s estimates that net savings in packaging material of 160 tonnes/year have been achieved as a result of the redesign of the product packaging. Annual use of 175 tonnes of cardboard, 14 tonnes of melinex plastic and over a tonne of solvent glue have been replaced by just 0 tonnes of polypropylene and polyester. This measure represents an optimisation in transport and lorry fill, and evidence of environmental improvement. These benefits are also passed to Sainsbury s suppliers, which achieve a reduced obligation under the packaging waste regulations. Sainsbury s worked closely with its packaging suppliers and bread suppliers to manufacture the product more effectively without adversely affecting marketability or performance. The ultimate driver for these improvements is Sainsbury s environmental goal of reducing packaging in line with corporate environmental policy. Development and introduction of the new packaging Packaging trials were conducted with the packaging and bread suppliers to ensure that the product could be flow wrapped on existing machinery, while achieving an effective seal to maintain product integrity. In addition, transit tests were conducted by the bread supplier to ensure that there was no increase in product damage during distribution. Distribution trials were also completed by Sainsbury s, which found that the new packaging assisted distribution by enabling more items to be loaded onto distribution lorries. Marketing tests were carried out by Sainsbury s to ensure that the new packaging would convey the same information and image of the product in the new design package. About J Sainsbury plc J Sainsbury plc operates three separate store chains and a bank in the UK, and a store chain in the USA. In 1996, J Sainsbury plc published the first environment report by any UK food retailer. This was followed by a 1997 interim environmental report which stated progress against targets set across all areas of the business. The redesign of the garlic bread packaging is just one of a number of environmental initiatives undertaken by Sainsbury s. Many of Sainsbury s major achievements, as well as new priorities and environmental initiatives, are detailed in the Company s comprehensive 1998 environment report. REDUCE 14

20 INDUSTRY EXAMPLE 6 Re-usable trays improve handling and save money A drinks company has developed a re-usable tray and dolly system for transporting drinks that eliminates the need for secondary packaging. The system, designed and implemented by Hartwall Brewery, Finland, makes handling PET bottles easier, improving handling for both the supplier and retailer. Summary of main savings achieved For the bottler: A cost saving of 1.1 in packaging for every 100 bottles distributed. Reduced overall operating costs of 15% through reduced loading and shelving labour costs. Use of lighter trays increases bottles per lorry load by 40%. Background A system of moulded plastic trays on wheeled trolleys has been developed by the Finnish brewery Hartwall Bryggerier. The trays are five times lighter than previously used crates, and enable 40% more bottles per lorry load to be transported. In response to customers needs, Hartwall Bryggerier developed the tray and dolly system, which is a shallow plastic tray on a wheeled dolly. It is ideal for bulk distribution and merchandising of drinks in PET bottles. The tray is designed to be used in either a totally automated or a manual environment. The product can be packed automatically at the time of production onto the new tray and dolly combinations and rolled directly onto the shop floor, eliminating the need for crates altogether. The bottles are held securely in moulded depressions in the tray. A total of litre bottles can be distributed on a stack of trays 600 mm x 800 mm, and 100 on a stack of trays 400 mm x 600 mm. There are now trays to fit both 0. litre and 0.5 litre sized bottles. Novel re-usable tray system brings many benefits REDUCE AND RE-USE 15

21 Reductions in operating costs of up to 15% are anticipated due to reduced loading and shelving labour costs. The application of typical data for the use of this system at Hartwall Brewery results in the estimate of savings shown in the table below. The new trays enable a cost saving of 2 on every half-pallet distribution. Traditional tray: 192 x 1.5 litre bottles ( ) New tray and dolly: 220 x 1.5 bottles ( ) 5 carton 0.25 each new each 2.22 Shrink foil 1.4 Replacement cost (based on 1/100th cost 0.2 of new trays) Cost of manual depacking 0.09 Return cost and washing 0.4 Cost of waste handling 0.06 Total packaging cost every half-pallet 2.74 Total packaging cost every half-pallet 0.66 Packaging cost/100 bottles 1.4 Packaging cost/100 bottles 0.0 Saving on every 100 bottles distributed using the new trays = 1.1. The new tray compared with traditional trays per half-pallet Benefits For the bottler: Direct cost savings of 1.10 on every 100 bottles distributed. Nearly 15% more bottles distributed each load. Nearly 15% more in stock without occupying more space. Lower obligation under packaging waste regulations. Reduced production labour due to automation between production and point of sale. For the supermarkets: The new trays are made from recyclable polypropylene. Bottles are ready-packed for supermarket display. Higher quantity of product on the same floor space. Reduced manual handling cost in stacking on shelves. About Hartwall Bryggerier REDUCE AND RE-USE Hartwall Bryggerier is the largest brewery in Finland, owned by the Hartwall Oy Group, which owns a number of breweries across Russia and northern Europe. K Hartwall is the packaging arm of the group and produces a wide range of material handling products and markets them globally for the beverage, dairy, retail and wholesale sectors. 16

22 INDUSTRY EXAMPLE 7 Re-use of sandwich trays brings cost savings A high street sandwich retailer is re-using transit trays for delivery and display of sandwiches, meaning the trays are no longer used only once, but re-used about three times. The Boots Company has developed a system for re-using its plastic trays without any alteration or redesign. Savings and other benefits achieved Savings of 16 tonnes/year of plastic. Estimated cost savings of around /year. Reduces the packaging obligation costs for Boots and its suppliers. Payback is immediate. Re-usable sandwich trays REDUCE AND RE-USE 17

23 Background In 199, Boots undertook a packaging audit with the aim of identifying areas where packaging could be minimised. The trays used for the transportation and display of sandwiches were targeted for reduction, re-use or recycling. Plastic trays used for the transit and display of sandwiches were replaced every day. The reduction of 16 tonnes/year of plastic through re-use was achieved in a number of stages. A marketing decision was made to remove the front label from the trays. This meant that the trays could be re-used for any filled sandwiches. Boots then worked with its suppliers to agree a system of logistics. Boots staff stack empty trays ready for collection by the logistics company. The logistics company collects the empty trays daily, sorts and removes broken trays, and returns re-usable trays to the sandwich supplier. Each tray is now used at least three times. Broken trays are returned to the supplier for recycling. The success of this new system is entirely due to the partnership developed between Boots, the logistics company and the sandwich supplier. As a result of this system, 5.1 million trays/year are re-used. At an estimated average cost of 10 pence/tray, the cost saving is /year. About The Boots Company The Boots Company is the parent company of Boots The Chemists, which is the largest chain of retail chemists in the UK and one of the largest retailers of sandwiches. Boots has implemented a number of environmental initiatives and achievements, including the recycling of over tonnes of waste packaging and the use of tonnes of recycled materials during 1996/97. Moreover, since 1996/97, over tonnes/year of waste from the Company s main site has been treated by incineration with energy recovery rather than landfill. REDUCE AND RE-USE 18

24 INDUSTRY EXAMPLE 8 Bulk purchase of label glue saves money The packaging arm of a major brewer swapped glue pails for intermediate bulk containers (IBCs) and saved 1.5 tonnes/year of plastic polyethylene. Guinness Packaging used glue for sticking labels to bottles, from plastic polyethylene pails, but glue is now supplied in re-usable kg IBCs. Savings achieved 1.5 tonnes/year of plastic polyethylene saved. The purchase cost of glue was reduced by 166/tonne through bulk buying, giving an immediate cost saving of 1 000/year. 5 tonnes/year of glue saved from eliminating the 1.5 kg of glue remaining in each plastic pail after use - saving 7 500/year. Re-usable bulk glue container saves money Background Glue for adhering product labels to bottles was previously supplied in 25 kg plastic polyethylene pails. These pails were used once and sent for disposal. RE-USE 19

25 Seventy plastic pails of glue were used and sent for disposal every week. In 1994, it was decided to begin discussions with the glue supplier over a more efficient method of glue delivery. This was because of concern over the levels of packaging used through delivery of glue in pails, and also the need for a faster packaging process to meet increased production demand. The bulk containers of glue are made of reinforced PVC and contain up to kg of glue. They are returned to the supplier for refilling once a week. Installation of the container system, including hoses and heaters, incurred an initial capital cost of Guinness product range Additional benefits Energy and disposal savings have also been made due to the reduced number of deliveries required from the supplier and the removal of plastic from the waste stream. About Guinness Packaging Guinness Packaging is located on the Whitehouse Industrial Estate in Runcorn. It employs 220 people producing small beverage packs for home consumption. The product range covers all widgetted can products and standard canned and bottled products. The plant handles over 100 product lines with an output of 12.5 million cases/year. RE-USE 20

26 INDUSTRY EXAMPLE 9 Plastics recycling through separation of waste A dessert manufacturer has developed a machine that separates end-of-line packaging from food waste. Devon Desserts in Newton Abbot, Devon, now sells food waste as animal feed, providing additional profit and reducing waste disposal costs. Savings and other benefits achieved Reduced waste disposal costs. Additional revenue from sale of production effluent as pig food. Improved on-site housekeeping. Background Devon Desserts, which is part of BG Foods Ltd, makes individually packed desserts such as cheesecakes and trifles. Rejected finished product, still in its packaging, was previously disposed of to landfill via a compactor. It was decided to develop a new machine to combat the high costs and untidiness involved in the co-disposal of packaging and product. The Company designed and built a prototype machine in-house, the majority of parts being from redundant equipment. The machine separates waste end-of-line product from its packaging. This enables the plastic carton packaging (with foil still attached) to be sent for compaction and recycling. The separated solid product waste is then mixed with liquid Prototype waste separation machine food waste from the production process. This results in a swill which is sold as pig feed, thereby reducing both waste disposal and effluent charges. There was little cost to the Company in developing the new machine. Running costs are low because the machine requires only a small amount of electricity and only two hours/day of staff time for loading and maintenance. RE-USE 21

27 The prototype machine Waste product and packaging is loaded into a hopper. The cartons move along the column by a screw which slices open the foil lids. The solid product is washed out by liquid food effluent pumped from the pig feed tank. The liquid, now with a higher solids content, is returned to the pig feed tank for subsequent sale. The empty cartons and foil lids go to a compactor and are sent for recycling. Cartons Liquid production waste Pig feed tank Empty washed cartons and foil lids Solids and liquid food effluent pumped back to pig feed tank Compactor Schematic diagram of the waste separation machine About Devon Desserts Devon Desserts is based on the Brunel Industrial Estate in Newton Abbot, Devon. The current premises were opened in August 1990 and the Company presently employs 00 people. Devon Desserts is wholly owned by BG Foods Ltd, the parent Group based in Sevenoaks, Kent. Products include cheesecakes, trifles and hot puddings. These are supplied to all major supermarket and food retail chains. RE-USE 22

28 4 ACTION PLAN Call the Environment and Energy Helpline on to obtain copies of relevant Guides. Get senior management commitment to reduce packaging waste and save on costs. Set up a team and carry out a review of product packaging. Analyse results and decide on the areas to change. Decide on the first project - one that will have the largest saving potential for the least effort. Liaise and work with suppliers and customers to exchange ideas and agree changes, eg returnable transit packaging. Investigate new materials and technology, and innovative and environmentally sound packaging design. Develop and implement changes. 4 Monitor savings and other benefits. Report on successes. Repeat with other products. If necessary, obtain help. The Environment and Energy Helpline ( ) can: provide further advice about the techniques described in this Guide; tell you about relevant environmental and other regulations that could affect your operations; send you copies of relevant Environmental Technology Best Practice Programme publications; arrange for a specialist to contact your company if you employ fewer than 250 people, at the discretion of the Helpline Manager. 2

29 5 FURTHER INFORMATION ADVICE Advice on current legislation and packaging use is available through the Environment and Energy Helpline on Advice on all aspects of packaging is also available from: The Industry Council for Packaging and the Environment (INCPEN) Tenterden House, Tenterden Street, London W1R 9AH Tel: Fax: PUBLICATIONS 5 The publications listed below are all available free of charge through the Environment and Energy Helpline on Good Practice Guide (GG140) Cutting Costs and Waste by Reducing Packaging Use Good Practice Guide (GG141) Choosing and Managing Re-usable Transit Packaging The Guides below are designed to give practical advice to reduce waste at source and save money. Saving Money Through Waste Minimisation For larger companies: Getting Started Raw Material Use Reducing Water Use Teams and Champions (GS25) (GG25) (GG26) (GG27) For smaller companies & workshops: Cutting Costs by Reducing Waste: A Self-help Guide for Growing Businesses (GG8C) For all companies: Cost-effective Water Saving Devices and Practices Finding Hidden Profit Tips for Reducing Waste (GG67) (ET0) 24

30 The Environmental Technology Best Practice Programme is a joint Department of Trade and Industry and Department of the Environment, Transport and the Regions programme. It is managed by AEA Technology plc through ETSU and the National Environmental Technology Centre. The Programme offers free advice and information for UK businesses and promotes environmental practices that: increase profits for UK industry and commerce; reduce waste and pollution at source. To find out more about the Programme please call the Environment and Energy Helpline on freephone As well as giving information about the Programme, the Helpline has access to a wide range of environmental information. It offers free advice to UK businesses on technical matters, environmental legislation, conferences and promotional seminars. For smaller companies, a free counselling service may be offered at the discretion of the Helpline Manager. FOR FURTHER INFORMATION, PLEASE CONTACT THE ENVIRONMENT AND ENERGY HELPLINE address: etbppenvhelp@aeat.co.uk world wide web: