New Packaging Technologies in the Meat Industry: Focus on Sustainability

Transcription

1 New Packaging Technologies in the Meat Industry: Focus on Sustainability Scott J. Eilert, Ph.D. Presented to the 6 st Reciprocal Meat Conference June 24, 2008 University of Florida 0

2 Innovation defined at Cargill Converting knowledge and insights into New products and services that created distinctive value and profitable growth for our customers

3 Topics for Today Start with Insights Macro Trends Consumer Behavior Then identify a trend: Sustainability Fad or Trend Industry and Retailer Response Recently awarded innovations Then focus on a technology area: Renewable Packaging Recent innovations Update on impact of PLA in the food industry Discussions and questions 2

4 ENERGY: The macro-est of all trends today In 2005, ICoMST presentation asked the question:.has a fundamental shift in the demand for petroleum occurred Oil Prices Today: $30 40/barrel range year ago: $ years ago: $ years ago: $29.03 (Source: Bespoke Investment Group) 3

5 Question: Is the price of energy changing consumer behavior? Spring 2008: the Ford F50 pickup surpassed as the highest selling vehicle in US by imported sedans FMI report on Grocery Shopping Trends More cooking at home 2008: Main meal eaten at a restaurant:.2 times/week 2007:.3 times 2006:.5 times Increased purchase intent for store brands Reduced shopping trips/week Low prices and convenient locations are the two most influential factors in where to shop (Food Business News, May 3, 2008) 4

6 Food and Beverage Trends, 2008 (Source: Mintel International Report, cited in Food Business News, May 3, 2008) Bottled Water Backlash Salt positives and negatives Ancient grains or sacred grains Junk-free foods Clean labels A new way to talk about carbon footprinting Fairtrade expansion Experiential shopping Faux genomics Transparency throughout the system 5

7 Business Insights Report, 2008 Key Trends Health Indulgence Convenience ETHICAL HAS NOW JOINED THE LIST 6

8 Was Kermit the Frog Right? Is it not easy bein green Consumer desire for environmentally friendly products State that they are willing to pay for such products 48% of consumers believe that green products benefit the earth vs. are simply less harmful (22%) Important food market: $29.9B in sales (Source: Study: Green Shoppers Gullible and Confused, MediaPost Publications, April 2, 2008) Questions: Is the market for sustainable products sustainable Will the sustainable product market be able to withstand the thinning of the US wallet? 24% of consumers are shopping at less expensive stores (Citigroup Global Market Survey, April 2008) Can sustainability and affordability co-exist? 7

9 Commitment to Packaging Sustainability Sustainability and affordability have to co-exist. This is not a trend Sustainability will survive, not as a complete outcome of the desire to have less of an environmental impact, but the NEED to use less resources Packaging sustainability is not a nice to have, it is a need to have 8

10 Commitments McDonalds Wal-Mart Kraft Partner with suppliers. Suppliers charged to: ) eliminate unnecessary packaging, 2) favor renewable sources 3) reduce total amount of material 4) design for recycle or compost 5) materials and processes that minimize pollution. McD s participates in the Paper Working Group and Sustainable Packaging Coalition. McD s have reduced packaging waste by 300m lbs in the 990s. Introduced supplier community to the 7 R s Goal to reduce waste at stores by 25% by Move to concentrated detergents saves 400m gal water, 95m lbs resin, 25m lbs cardboard. Extended roll-life program for paper products eliminates 89.5m cardboard roll cores, 360k lbs plastic packaging and 54k gal diesel. Working to develop closed loop recycling programs with suppliers. Goal for less energy and materials used in production, shipping and distribution to the consumer. 6% decrease in solid waste generated, 90% recycle rate at most plants. From

11 Commitments Sara Lee Campbell s Design, package and distribute products in a manner that lessens eco-system impact. Suppliers required to report recycled content and make every effort to provide returnable or recyclable containers and recycle used packaging materials by Supply Base Requirements and Expectations Manual. From: 0

12 Cargill Commitments on Packaging and Waste Collaborate > Create > Succeed Completion of targets for reduction of resource impact will require complete supply chain cooperation and collaboration Commitment to NatureWorks polymer Reduction in solid wastes at production facilities and increased commitment to recycling and composting Increased use of reusable totes with customers

13 Recently Awarded Innovations DuPont Awards for Packaging Innovation, 2008 (Packaging World, May 2008) All seven awards this year are built around an element of sustainability Represent different aspects of sustainability innovation Reuse Reduce Recycle Renew 2

14 Recently Awarded Innovations Shelf stable, retort fish in CPET tray Moving beyond the can and the retort pouch for shelf stability CPET monolayer container Easy peel three layer lamination film 40% reduction in material costs over cans and glass While not as recyclable as steel or aluminum, plastics raw material generally require less energy to produce Source: Packaging World, May

15 Recently Awarded Innovations Organic Kiwi Fruit in completely renewable, compostable package Palm fiber based tray Cellulose based film Includes instructions for home composting Perfect fit for organic product Source: Packaging World, May

16 Recently Awarded Innovations Cornstarch based insert for candy boxes Use 50% less energy than plastic inserts Compostable Source: Packaging World, May

17 Recently Awarded Innovations The re-launch of a brand results in distinct sustainability benefits. The creation of a contoured design was the consumer benefit The resource impact was a 9% reduction in material use, resulting in 3.4 M lbs of PET saved annually, or equivalent of 70 M plastic water bottles Inbound freight usage improved by 8% Source: Packaging World, May

18 Renewable Sources for Packaging Sugar Case Based Materials By-product of cane processing Creation of Biodegradable materials Roots Biopack Trays Ovenable to 220 C Variable moisture layer can be a limiting factor Natura a.s.p. Used in UK ready meals application Testing starch based moisture layers Palm fiber trays are also common Similar characteristics 7

19 The barrier barrier High moisture and oxygen barrier are common characteristics of meat and poultry packaging Bio-based materials typically do not have high barrier properties One solution Ceramis Polylactic Acid (PLA) from Alcan Packaging PLA films with a silicon dioxide layer for moisture and oxygen barrier High relative cost, but effective strategy Applications in meat and poultry generally limited to shorter shelf life applications 8

20 Sustainable bio-plastic can damage the environment Headline from The Guardian, April 26, 2008 Focused on the areas: Methane release from conventional landfill of these materials Challenges in recycling streams Food for Packaging debate Consistent anti-technology slant. Response to concerns: There is a need to improve recycling capabilities, especially in UK. Recovery of methane gas is evolving in US landfill industry Most optimistic projections of PLA would use 0.04% of worlds corn crop. Continued pursuance of cellulosic based materials. This is an early stage technology Challenges should not stop the progression of long term sustainability efforts 9

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