Reducing weight, reducing cost: lightweighting can ends

Transcription

1 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January 2007 Reducing weight, reducing cost: lightweighting can ends Key business information and technical background for companies seeking to replicate the lightweighting of easy open can ends

2 WRAP works in partnership to encourage and enable businesses and consumers to be more efficient in their use of materials and recycle more things more often. This helps to minimise landfill, reduce carbon emissions and improve our environment. Contents 1 Executive summary 3 2 Introduction 5 3 The technical requirements 6 4 The business case 8 5 Market data 10 6 Conclusion 11 While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being accurate, incomplete of misleading. For more detail, please refer to our Terms & Conditions on our website -

3 3 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January Executive summary Impress Metal Packaging BV (Impress) has developed a lightweighted full-aperture Easy Open End (EOE) that has set a new standard in the marketplace, for both of the leading 73mm diameter food can sizes nominally 200 g and 400 g. With the aid of funding from WRAP s Innovation Fund, the new end was trialled at H.J. Heinz Company Ltd s (Heinz) factory at Kitt Green, and has now been successfully implemented by Heinz across the whole of its production for these can sizes. The weight reduction initiative supports the objectives of the Courtauld Commitment, through which leading grocery retailers and brands have committed to work with WRAP in support of WRAP s objectives to halt the growth in packaging waste in the home. The new can end has a gauge of 0.18mm and weighs only 10.1g, which is some 13% lighter than Heinz s previous 0.2mm gauge end and as much as 25% lighter than some EOEs in the market. This material reduction provides a financial benefit as a consequence of using less steel and the corresponding savings in carbon emissions. Cost savings realised from using less steel will depend upon market conditions, but are likely to be around 3 to 4%. Further economies come from reduced producer responsibility charges, and reduced logistics costs since 18% more ends can be shipped on a pallet. The financial case was convincing for Heinz, who were already Best in Class for optimum EOE weight. Heinz will save over 400,000 as a consequence of the EOE lightweighting. Developing the new end was a major technical achievement, for which Corus supplied double-reduced steel and Impress Metal Packaging BV was awarded the Metal Packaging Manufacturers Association s Gold Award for Technical Innovation. The trials have demonstrated that the lightweighted end matches the functional characteristics of the previous heavier end, with respect to both the manufacturing processes and consumer properties. Because of this, the issues that need to be addressed by the filler tend to be of a detailed technical nature only. No changes to retorting conditions were required in the trials and there has been no identifiable consumer reaction. The new EOE is not interchangeable with the previous version, so the changeover has to be planned carefully to avoid write-offs or unplanned shutdowns. Adjustments are needed in the handling of the ends prior to their application, and new change parts are required for seamers and flangers. Fine-tuning of the dimensions affecting the seam is required. The new end is now available and performs in-line with the previous end. Canmakers and fillers are therefore urged to evaluate the commercial case for adopting 0.18mm gauge EOEs without delay, to deliver commercial and resource efficiency benefits. The new end has been trialled for 3-piece cans, but in principle is equally suitable for 2-piece constructions. WRAP is now working with Heinz to reduce the wall thickness of its 3-piece cans to deliver further savings.

4 4 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January 2007 Contents 1 Executive summary 3 2 Introduction 5 3 The technical requirements The Easy Open End Seaming of the end to the can body Process control and testing The trial programme The transition from old to new end 7 4 The business case The investment costs Savings 8 5 Market data Market breakdown by product sector Imports Easy Open Ends Body construction 10 6 Conclusion 11

5 5 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January Introduction Impress is Heinz s supplier of can ends (sanitary and EOEs). Heinz manufactures its own can bodies and assembles the 3-piece cans at its factory at Kitt Green in Wigan the largest foodprocessing factory in Europe, filling over 1 billion cans per annum. Impress has developed a full-aperture lightweighted easy open end for 73mm diameter food cans. This fits the nominal 200 and 400 g sizes that make up the majority of cans in the market. WRAP s Innovation Fund enabled these new ends to be trialled through the Heinz processes. The trials were completed successfully and all Heinz cans in these mainstream sizes are now carrying the lightweighted ends. This report provides information derived from these trials, to assist other businesses moving to the new Best in Class 1 standard achieved by Impress and Heinz. It explains both the strength of the business case, and the enabling technical developments required. 1 Best in Class (BiC) is defined as the lightest weight household packaging for a given product/category. This information has been used to develop an online database (at to enable the sector to benchmark their packaging against the lightest currently available. Moving to BiC has many advantages including minimising the use of valuable resources, reducing costs and reducing energy consumption.

6 6 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January The technical requirements The design and manufacture of the new end was a major project for Impress. It required two years of effort, substantial costs and the retooling of the company s EOE manufacturing processes. To ensure successful implementation of lightweighted EOEs, manufacturers of cans and can ends must work closely with their filling customers. The following points must all be considered: 3.1 The Easy Open End Until now, 73mm diameter full-aperture EOEs in the food can market ranged in gauge (the thickness of the steel) from 0.20mm to 0.23mm. Heinz was previously at the best level in the market: 0.20mm. The new EOE has been developed from end plate of 0.18mm thickness (see figure 1). The thinner gauge has resulted in a corresponding weight reduction from 11.6g to 10.1g a 13% reduction. To accomplish this, Corus supplied double-reduced steel. There is sufficient steel capacity available for further implementation, and other leading steel producers are believed to be capable of offering comparable material. A fundamental objective of the Impress work was that the new end must retain all the key functional characteristics of the original 0.20mm end: the performance in passing through the Heinz processes must match the original; the new specification had to withstand filling, processing, packaging, warehousing and transportation; and there should be no difference in can performance for consumers opening the cans. These performance requirements were established to minimise the complexity and cost of adoption by Heinz and these goals have been achieved. No problems were encountered during the retorting process, and the distortion of the end is under control. The opening characteristics of the can end are at least as good as its thicker predecessor. Heinz applies the new end to its 3-piece food cans, but the end is equally appropriate for 2-piece constructions and pet food applications. 0.20mm 0.18mm Figure 1 Can end before and after

7 7 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January Seaming of the end to the can body The handling characteristics of the lightweighted ends, prior to seaming, are slightly different from those of the 0.20mm original, so minor modifications were required to the transporting and feeding equipment. Minor changes have been introduced on the can maker s flangers to marry the can body with the new end. It was found to be sound practice to make similar adjustments to both the maker s end and the filler s end. Very small dimensional fine-tuning was required to ensure adequate seam tightness and satisfactory appearance. SEFEL issue standards for can seams, so that the industry can ensure interchangeability. As yet no SEFEL standard exists for the new 0.18mm gauge end, and the end-maker, can maker and filler need to collaborate to determine the optimum dimensions. New change parts had to be fitted to the seamers. For a high-speed line, such parts are likely to cost around 1,000 per head. 3.3 Process control and testing On-line testing machinery had to be modified to accommodate the revised dimensions of the new package. No other significant changes were required to the process controls. 3.4 The trial programme Heinz has a wealth of experience of introducing changes to its operations. As with other leading businesses, Heinz has established formal step-wise management processes that reduce risks and minimise disruption. This also safeguards the company quality standards and assures the company reputation. The introduction of the new EOE was taken through this programme, from initial pilot trials through to production runs and transit tests. 3.5 The transition from old to new end The lightweighted EOE is not interchangeable with the previous version on the can making and filling lines. Essentially, this means that when a filling line has been changed to the new format, the old ends cannot be run. A careful planning exercise is essential, to use up the original design and introduce the new one without incurring write-offs or machine downtime.

8 8 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January The business case The soundness of the business case depends mainly on the cost of the investment, the amount of effort needed and the financial return that results. The trials sought to quantify the time and cost to convert production lines for the new end. The trial findings provided Heinz with the information required to approve the investment for converting all 200 g and 400 g lines. Heinz estimate that they will save over 400,000 each year as a consequence of moving to the new lightweighted EOEs. In addition to the financial case, there are wider benefits in support of the company s corporate social responsibility objectives. The reduction of material usage, for example, delivers reductions in carbon emissions through the whole packaging life cycle. The project supports the objectives of the Courtauld Commitment, through which major grocery retailers and brands including Heinz have committed to work with WRAP towards WRAP s objectives to halt the growth in household packaging waste and deliver reductions in the weight of household packaging by The investment costs The investment required in the can filler s plants is not large, and the likely costs should be easy to estimate. Provision should be made to: run down stocks of the current end and introduce the lightweighted end in a systematic way, including some contingency provision should timetables be changed. This may or may not have investment implications; modify the end feeders systems to the seamers, to accommodate the minor dimensional differences and characteristics; replace flanger parts at the can maker, and seamer change parts at the filler, to handle the lightweighted end and its matching flange; and modify on-line testing equipment to fit with the revised dimensions. 4.2 Savings The change to a lighter end will generate savings in a number of areas: less steel material required; lower producer responsibility costs; lower logistics costs; and reduced carbon emissions Steel The reduction in steel weight generates a saving in material cost. The reduction in weight of material supplied will typically be shared along the supply chain. This cost saving will depend on market conditions, but is likely to be around 3-4% of the cost of the end. Through this initiative, Heinz is purchasing 1,400 tonnes less steel from Impress for the same number of EOEs. It should be noted that EOEs common in the UK range from 0.20mm gauge to 0.23mm with 0.21mm being a common gauge. Heinz moved from 0.20mm. Any other company moving from a thicker gauge will make proportionately greater savings.

9 9 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January 2007 Current can end gauge 0.20mm 0.21mm 0.22mm Current steel content 11.6 tonnes 12.2 tonnes 12.8 tonnes Steel content at 0.18mm 10.1 tonnes 10.1 tonnes 10.1 tonnes Reduction in weight of steel 1.5 tonnes 2.1 tonnes 2.7 tonnes Approximate cost of 1 million 73mm diameter EOEs 21,500 21,800 22,100 Approximate material saving for 1 million lightweighted EOEs (costed at, for example 500 per tonne) 750 1,050 1,350 Figure 2 Potential material savings for 1 million can ends moving to 0.18mm Producer responsibility costs Producer responsibility costs are in direct proportion to the weight of material placed in the market. Compliance is demonstrated through packaging recovery notes, and their prices fluctuate during the year. The lightweight ends will reduce the number of packaging recovery notes required to demonstrate compliance, giving rise to a further saving per million can ends Logistics From a logistics perspective, the lightweighted end reduces the palletised product by 3.5kg, reducing the weight of each full lorry load by 83kg. This is not sufficient by itself to enable more product to be placed on the vehicle, but it is one of a number of steps that will enable logistics efficiencies to be improved. However, there are direct benefits in terms of the delivery of the ends from the can end supplier to the can filler, since an additional 18% of ends can be placed on a pallet, so the number of delivery loads can be reduced Energy and carbon emissions The reduction in steel not only saves material resources, but also has consequent reductions in energy and carbon emissions. The industry endorses a value of 27.5 GJ/t for steel tinplate with current recycling rates. This implies that the lightweighted EOE will save 11,460 kwh of energy per million can ends, when moving from 0.20 to 0.18mm guage. Based on the current energy mix, this will reduce carbon emissions by 0.90 tonnes per million can ends. Corresponding savings for other gauges are shown in Figure 3. Current can end gauge 0.20mm 0.21mm 0.22mm Reduced can end gauge 0.18mm 0.18mm 0.18mm Energy saving per million EOEs 11,460 kwh 16,040 kwh 20,630 kwh Carbon emission savings per million EOEs 0.9 tonnes 1.35 tonnes 1.80 tonnes Figure 3 Energy and carbon emission savings per million can ends

10 10 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January Market data Since the new end is now available, and has been successfully implemented by Heinz, WRAP are keen for other can makers and fillers to move to the new Best in Class EOEs. A first step in this process was to analyse the canned foods and pet foods supply chain, and thereby identify the potential for this initiative. 5.1 Market breakdown by product sector Market data available to WRAP has permitted analysis of the main product sectors in the can market. Product Total cans Ends Construction Source EOE Plain 3-piece 2-piece UK Import Beans Pasta Cold meat Hot meat Other meals Pet food 1,121 1, , Soup Fish Vegetables Fruit Total 2 4,894 2,796 1,245 1,632 2,409 2,805 2,089 Percent 69.2% 30.8% 40.4% 59.6% 57.3% 42.7% Figure 4 Numbers of cans by source, type of end and type of construction (millions of cans p.a.) 5.2 Imports Market analysis shows that one third of canned food is imported. Sourcing varies markedly between the product categories, with importation being dominant in fruit, vegetables, fish and meat, while UK sourcing is focussed on beans, pasta, soup and pet food. 5.3 Easy Open Ends The industry considers that the use of EOEs is at a mature level. EOEs cost approximately twice as much as a plain end. In the mainstream size of 73mm diameter, they are approximately 2p each, as opposed to 1p for a plain end. This level of cost is very significant where price is the driving force. Many own label offerings do not use EOEs, whereas most branded products on 400 g and 200 g sizes use EOEs. Market observations indicate that approximately half of all cans have EOEs. EOEs in other diameters are much more expensive in relative terms, due to the smaller production volumes. 5.4 Body Construction Some 40% of food cans have a 3-piece construction, with 3-piece Heinz production representing 29% of all food cans. EOEs can be equally applied to 2-piece constructions. 1 Many cans in these categories are of a unique shape, and not relevant to this initiative, e.g. Sardines, Hams, Pies. 2 Grand total and analysis by source includes the uniquely shaped cans, but the analysis by type of ends and construction does not.

11 11 Retailer Innovation: Heinz Lightweighting Can Ends Final Report January Conclusion The new lightweight EOEs produced from 0.18mm gauge steel, have the same functional characteristics as the previous 0.20mm gauge ends. Rigorous trials were undertaken to test the effectiveness of the new design for different product, line and cooking configurations by Heinz, and this demonstrated that with effective planning and cost effective modification to change parts and monitoring systems on lines, it was possible to adopt the lightweight EOEs throughout Heinz s 73mm diameter can range. This has now happened. As Heinz was already using 0.20mm gauge EOEs, there is a greater opportunity for lightweighting and cost reduction for can fillers using thicker gauge ends by moving to the now proven 0.18mm gauge EOEs. There is likely to be a minimum production volume required per line to justify the line modifications to run the lightweight ends, and the data provided in this report will help can fillers identify the conversion costs and resulting benefits to determine the return on investment that can be achieved. The trials demonstrated a new Best in Class benchmark for optimum EOE weight and highlighted to other can makers the technical feasibility of developing and successfully implementing 0.18mm gauge EOEs. For can fillers, the trials demonstrate that 0.18mm gauge EOEs are available and can deliver a financial and environmental return on investment with no impact on the consumer experience. Figure 6 shows the possible benefits of rolling out a change from average 0.21mm ends to the new Best in Class 0.18mm ends. There are also additional savings to producer responsibility costs. Per million cans For the UK s 2.8 billion EOEs Steel savings 2.1 tonnes 5,880 tonnes Carbon emission savings 1.35 tonnes 3,780 tonnes Energy savings 16,040 kwh 44.9 million kwh WRAP is now working with Heinz to reduce the wall thickness of its 3-piece can bodies to deliver further savings. Figure 5

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