Join us for PACK EXPO Booth C-2023
JUL2021 packworld.com SALARY 34 IoPP SURVEY
Frozen Salaries Thaw as Uncertainty Diminishes 30
Hybrid Oatmeal Pack Snaps from Flat to Bowl 44
Kellogg, Mars Share Supplier Management Strategies 50
Motion Control Synchs Unique Auger Filler 52
Octopi Co-Pack Brewery Bets on Beverage Transformation
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SUSTAINABILITY IS YOUR GOAL. GETTING YOU THERE IS OURS.
Empowering your sustainability through collaborative solutions is a commitment we take seriously. From engineered fiber-based primary, secondary and tertiary packaging, to automation that optimizes your supply chain, our innovations are reshaping the future of packaging and enabling you to meet your operational goals without compromising productivity.
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34
After a chilly 2020, things are looking up for packaging salaries, and 2020’s freezes seem to be thawing. This from the annual IoPP Salary Survey, which featured more than 800 responses collected in early 2021, reflecting an increase in optimism about future salary and job security as the uncertainty of 2020 begins to fade.
30
FEATURES 30 Automated Filling for Innovative Pack Once The GFB had established that its hybrid paper/paperboard package was a hit with consumers, an automated rotary bagger became an absolute must.
34 COVER STORY/SPECIAL REPORT Cautious Salary Optimism Returns After a flat salary year in 2020 with heightened uncertainty and worry about both traditional salary increases and bonuses, 2021 results indicate that confidence is returning. Meanwhile, job security is high and fewer people are seeking greener pastures at new jobs.
52
44 Kellogg and Mars: Views on Supplier Relationship Management A growing body of evidence shows that if CPG companies are excessively fixated on price and price alone, other forms of value are not being capitalized on.
50 AUTOMATION Motion Control Synchronizes Auger Filling Servo-driven auger fillers made by AS&E rely on an advanced motion control platform to synchronize three critical operating parameters, greatly improving accuracy.
52 Co-pack/Co-man Bets on Beverage Market Transformation Wisconsin-based beverage packer Octopi positions itself to address a rapidly changing beverage market, as well as a shift from bottles to cans, with two canning lines, the newest of which will produce up to 1,200 cans/min in seven sizes.
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DEPARTMENTS 8
VIDEO
COLUMNS
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packworld.com Two Vittel® Paper Bottle Techs
7 Lead Off 24 The Legal Side 26 The Big Picture 28 Sustainable Packaging 60 Shelf Impact! 64 Professional Perspective
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ANIMATION
8 News 20 Quotables/By the Numbers
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INTERVIEW
22 First Person PRODUCTS
51 Automation Technology 62 Technology
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Paper Confectionery by Nestlé, Mars Wrigley
ADVERTISING
63 Advertiser Index
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EDITORIAL ADVISORY BOARD Aladin Alkhawam Director, Packaging Operations, Par Pharmaceutical Jan Brücklmeier Technical Application Group Packaging Technology Expert, Nestlé David France Packaging Research Fellow, Conagra Foods Patrick Keenan R&D Packaging Engineer, General Mills/Annie’s Organic Snacks Mike Marcinkowski Global R&D Officer, GPA Global & Hub Folding Box Co. Paul Schaum Chief Operations Officer, Pretzels Inc. David Smith, PhD Principal, David S. Smith & Associates Brian Stepowany Packaging R&D, Senior Manager, B&G Foods, Inc. Jasmine Sutherland President, Texas Food Solutions; Vice President, Perfect Fit Meals
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Packaging World® (ISSN # 1073-7367) is a registered trademark of PMMI, The Association for Packaging and Processing Technologies. Packaging World® is published monthly by PMMI with its publishing office, PMMI Media Group, located at 401 N. Michigan Avenue, Suite 300, Chicago, IL 60611; 312.222.1010; Fax: 312.222.1310. Periodicals postage paid at Chicago, IL, and additional mailing offices. Copyright 2021 by PMMI. All rights reserved. Materials in this publication must not be reproduced in any form without written permission of the publisher. Applications for a free subscription may be made online at www.packworld.com/subscribe. Paid subscription rates per year are $200 in the U.S., $285 Canada and Mexico by surface mail; $475 Europe, $715 Far East and Australia by air mail. Single copy price in U.S. is $20. To subscribe or manage your subscription to Packaging World, visit Packworld.com/subscribe. Free digital edition available to qualified individuals outside the United States. POSTMASTER; Send address changes to Packaging World®, 401 N. Michigan Avenue, Suite 300, Chicago, IL 60611. PRINTED IN USA by Quad. The opinions expressed in articles are those of the authors and not necessarily those of PMMI. Comments, questions and letters to the editor are welcome and can be sent to: editors@packworld.com. Mailing List: We make a portion of our mailing list available to reputable firms. If you would prefer that we don’t include your name, please write us at the Chicago, IL address.
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LEAD OFF
CASE PACKING ACKING
Nestlé Pushing Sustainability Two bottles from Nestlé caught my eye this month. Both designed for Nestlé’s Vittel® natural mineral water, they function just like traditional plastic bottles but use much less plastic. First there’s the Vittel® GO system, which consists of a reusable hard protective plastic case designed to hold 50-cL refills of natural mineral water that are made with 40% less plastic than a traditional 50-cL PET bottle. Not available as this goes to press is the identity of the plastic resin used to make the case or the refills, but I’m thinking the case is injection-molded polypropylene and the refills are injection stretch blow molded PET. The second Vittel innovation is a paper/plastic hybrid approach that represents a new take on the paper bottle from Ecologic Brands, the Manteca, Calif.-based firm that was purchased in January and is now part of Jabil Packaging Solutions. (More on this acquisition in a moment.) The bottle’s two thermoformed fiber shells with interlocking tabs are familiar enough, and once again they’re made of recycled paperboard and old newspapers. But while recent offerings from Ecologic included an inner liner extrusion blown of 80% post-consumer HDPE, the liner in the Vittel bottle is injection stretch blow-molded of 100% recycled PET. It’s also notably svelte at just 9 g. Who makes the PET liner and how is it married to the fiber shells are questions I wasn’t able to get answered as press time neared, nor do I know what kind of label is involved. Such details are a bit hard to come by at this stage partly because the innovative bottle is really more trial than launch. In fact, when it makes its debut, this bottle won’t be on store shelves but rather will be distributed at that famous cycling extravaganza called the Tour de France, which starts June 26. Also distinguishing this bottle from earlier iterations is that it features a tear tab that will make it even easier for consumers to separate the fiber shells from the PET liner and put each in the appropriate recycle stream. Again, I wish I could provide a few specifics on how and when and on what kind of equipment the tear strip gets added. But alas.... Returning for a moment to Florida-based Jabil’s acquisition of Ecologic Brands, this could be a watershed moment in the development of paper bottles. Keep in mind that many would say the very idea of a paper bottle is fundamentally quixotic. After all, look how long Carlsberg has been prototyping a paper bottle for beer. Or ask Paboco (a consortium that includes Coke, L’Oreal, and Absolut) or Pulpex (another consortium that includes Diageo and Unilever) when their paper bottle offerings will reach consumers with product inside. Or consider the opinion of Axel Barrett of UK-based Bioplastics News, who concluded in a February 15 piece called “The Paper-Bottle Fairy Tale” that “PET bottles are the only existing example of bottle-to-bottle mechanical recycling at industrial scale.” Skepticism about the true viability of a paper bottle is well founded and inevitable. I’ve been as skeptical as the rest—as in, “Wait, you’re going to put liquid in a paper bottle and expect it not to leak?!?” But what makes the Ecologic/Jabil union notable is that it brings Ecologic—essentially a startup, mind you—the vast engineering skills and financial resources of a Fortune 200 juggernaut with annual sales of $27 billion. What Ecologic has hoped to do for some time now is ship nested shells to regions around the world where blow-molding or injection stretch blow molding of the inner liner would also be done. This would greatly optimize the sustainability of the container because then, rather than shipping empty bottles to its customer base, Ecologic could nest the fiber shells and have them efficiently assembled in locations relatively close to brand owner customers. Or maybe the brand owners themselves would install automated assembly equipment designed by Ecologic/Jabil. So far this model has been elusive because the highly specialized automated equipment currently used to assemble the bottles only exists, at this point in time, in Ecologic’s Manteca facility. But with the resources of Jabil—100 sites in 26 countries, design engineering expertise in life sciences, defense, automotive, computing, networking, and telecommunications— behind Ecologic’s efforts, optimizing such equipment and getting it built and distributed globally becomes a tad less daunting. Yes? PW
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reynolds@packworld.com
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NEWS
Unilever Will Launch Recyclable Toothpaste Tube Unilever, the maker of oral care brands such as Signal, Pepsodent, and Closeup, is moving all of its toothpaste tubes to recyclable material by 2025. The recyclable tubes will be available later this year in France and India, two of Unilever’s biggest oral care markets. Traditionally, most toothpaste tubes are made from a combination of plastic and aluminum, which gives the package its flexibility but also makes it difficult to recycle. The Unilever tube, says Babu Cherian, R&D Oral Care Packaging Director at Unilever, will not include aluminum. “Our new toothpaste tubes are made from a multilayer structure that consists of different polyethylene grades and an EVOH barrier,” says Cherian. “Based on the materials used, it’s categorized as HDPE, which is one of the most widely recyclable plastics globally. As part of the design, we not only wanted to make sure the tubes can be readily recycled, but also used less plastic. That’s why we developed the thinnest plastic lamination available on the toothpaste market at 220 microns. Most toothpaste tubes are currently made using plastic that is 250 to 300 microns in thickness.” The design has been approved by RecyClass, which sets the recyclability standard for Europe, as well as laboratories in Asia and North America. Meeting these rigorous requirements means the new tubes can be recycled within standard HDPE recycling streams. Partnering with Unilever on the supplier side are firms including EPL, Huhtamaki, Amcor, and Dai Nippon. To encourage wider industry change, the innovation will be made available for other companies to adopt. This decision to share is similar to the one made in 2020 by Colgate-Palmolive when that firm announced it had developed a recyclable toothpaste tube. Cherian says the Unilever tube has been in development for more than four years and that the work began “before we were
made aware of Colgate’s technology. We are pleased to see many more companies within the industry work towards more sustainable packaging solutions. Our hope is that shifting our entire global portfolio to the new recyclable tubes by 2025 will encourage the wider industry to change.” To drive further change across the waste management industry, Unilever is working with global recycling organizations to help ensure that the new tubes are collected and recycled. This will be the case in France, where consumers can put the new tubes in their home recycling bin ready to be collected and turned into new products. —Pat Reynolds
Ocean Spray Craisins Switch to In-store Drop-off Recyclable Pouch Ocean Spray Cranberries, Inc., the agricultural cooperative owned by more than 700 farmer families, announced the first store drop-off recyclable stand-uppouch solution for Ocean Spray Craisins® dried cranberries. The announcement comes after nearly two years of development and collaboration with Bryce Corporation, a supplier of flexible packaging and prepress solutions. “We are thrilled to commercialize this innovative, store drop-off recyclable stand-up-pouch, and proud to take another big step toward our goal of transitioning our global packaging portfolio to one day be fully-recyclable, reusable, or compostable,” says Tracey Todesco, commodity manager for Ocean Spray. “Bryce Corporation played an integral role
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in this milestone and we appreciate their passion for innovation and commitment to developing sustainable packaging.” The packaging solution designed for Ocean Spray Craisins dried cranberries will be available in both roll stock and premade stand-up-pouch formats, utilizing Bryce Corporation’s BryCyclable™ high-performance polyethylene (PE). It also showcases Bryce Corporation’s high-definition flexographic printing, high-opacity inks, and registered matte coatings that produce stunning shelfappeal, according to Bryce. The pouch carries a How2Recycle label designating that it is store dropoff recyclable. It will be available for purchase at costco.com and other club store channels this year. —Matt Reynolds
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NEWS
Hot Shot Insect Killer Gets Custom Actuator A custom actuator designed specifically for Spectrum Brands’ Home & Garden business unit is a key feature on the firm’s Hot Shot® Ant, Roach & Spider Killer line. Silgan Dispensing, a global leader in the design, development, and distribution of highly engineered pumps and sprayers in the home, health, and beauty markets, is the supplier of the custom component. The design intent behind the project was an actuator that delivers on the insights and style preferences of consumers. The actuator features a tapered, sleek design, which gives it an approachable, modern appearance while also presenting Hot Shot Ant, Roach & Spider Killer as a highly effective product. “Consumers tend to be loyal to the brand they are already using, which set the bar high. Our team took
on the challenge to design a custom solution that provides shelf impact and differentiation that will bring in new consumers.,” says Randall Haire, Strategic Account Manager – Sales at Silgan Dispensing. “Our custom design does exactly that, exceeding consumer expectations, giving Hot Shot Ant, Roach & Spider Killer a premium on-shelf presence.” The custom actuator’s design also prevents fingers from getting too close to the orifice of the spray, which helps consumers avoid accidentally dispensing the product onto their fingers and prevents them from having to re-grip the can. Further, Silgan Dispensing provided the ability to color-match the caps to the brand’s labels, creating on-shelf differentiation in appearance. —Pat Reynolds
Amazon Expands Frustration-Free Packaging Programs to Include Smaller Eligible Product Sizes On June 1, Amazon expanded its Frustration-Free Packaging (FFP) incentive program in the U.S. to include the largest-sized Sortable Amazon Standard Identification Numbers (ASINs) from 6 x 4 x 0.375 ins. The company is also offering new incentives for Non-Sortable ASINs from 18 x 14 x 8 ins. The expansion of the incentive program in Europe will follow in the coming months. “After the success of our initial incentive program in 2019, I’m thrilled to announce the Frustration-Free Packaging Program’s incentive expansion, launching this year, 2021, in both North America and Europe,” says Sabrina Burkhardt, Customer Packaging Experience (CPEX) Lab Manager, Amazon, during a June 15th webinar hosted by ISTA, the International Safe Transit Association, and attended by Packaging World. “This will be a new incentive program with expansion to smaller eligible product size, a minimum of 80 cubic inches, or five pounds in weight. Larger sized products that were eligible for our earlier 2019 incentive program will continue to be eligible for this program with the objective of maintaining or reducing
Read Packaging World’s case study on how stemware brand Lenox, with Fuseneo Custom Packaging Design, took Amazon’s Frustration-Free Packaging route to improved performance and reduced total packaging volume. Visit pwgo.to/7021 for more.
packaging size, or moving up in certification status, for example from SIOC [Ships in Own Container] to FFP.” This incentive program is time-bounded from Oct. 1, 2021, to December 31st, 2022, so that the earlier vendors can certify and ship their SIOC and FFP units to Amazon’s network, the greater the opportunity to further inspire packaging waste reduction. The incentive rate is based on a linear model where the incentive increases as the packaging total volume is reduced. Since 2015, Amazon has reduced the weight of outbound packaging by 36% and eliminated more than 1 million tons of packaging material, the equivalent of 2 billion shipping boxes. Now, under the expanded program, between October 1, 2021 and December 31, 2022, newly certified Frustration-Free Packaging that maintains or reduces volume will be eligible for incentives ranging from $0.08 to $6.49 per unit. Amazon determines the incentive amount by whether the package meets FFP requirements, and overall volume reduction from the existing package size. —Matt Reynolds
PACK EXPO Xpress: a Limited, Digital-Only Option For those who are unable to attend in-person we now offer virtual aspects of our live-event via PACK EXPO Xpress so you can search for products and innovations in digital showrooms and connect with solutions suppliers during the event no matter where you are. Visit pwgo.to/7062
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6/19/21 5:28 PM
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NEWS
Las Vegas Convention Center Fully Back in Action The beginning of June marked the first time in well over a year that Las Vegas fully reopened, with Nevada Gov. Steve Sisolak lifting all large gathering and capacity limitations. When the news broke, PMMI Vice President of Trade Shows Laura Thompson jumped on a special edition of the UnPACKed with PMMI podcast, live from the Sin City, where plans are in full swing for PACK EXPO Las Vegas and Healthcare Packaging EXPO (Sept. 27-29), the most comprehensive packaging and processing event in the world in 2021. During the podcast, Thompson addresses the reopening, discusses the significance of the show, and the competitive advantages to be gained by attending in-person in Las Vegas. She added that what she has seen and heard from exhibitors and attendees echoes comments from Sisolak. “The research shows that demand is steadily increasing for domestic travel, as well as meetings, conventions, and trade shows, and we are already experiencing increased levels of interest throughout that segment,” Sisolak said. Since the governor’s announcement, PMMI has seen a significant in-
crease in interest in the show from both attendees and exhibitors, adding over 100 exhibitors just in the last month. Spread across four halls at the Las Vegas Convention Center and approaching 1,400 exhibitors at press time, PACK EXPO Las Vegas and Healthcare Packaging EXPO 2021 will bring the industry together again. Thinking of attending PACK EXPO Las Vegas in a few With the largest variety of machinery and materials solutions suppliers months? Get the current lay of the land by listening to found anywhere, attendees and exhibitors will have the most productive this boots-on-the-ground podcast, relating live experiences at three days they have had all year, discussing challenges, seeing solutions the fully open convention center. Visit pwgo.to/7057 to listen. in action, and06/16/21 getting answers right the spot. 21_1210_Packaging_World_JUL Mod: June 1, 2021 1:27 PM Print: 9:55:53 AMonpage 1 v7—Sean Riley
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NEWS
Diaper Balm Tube Enables Mess-Free Application, Inspires Creativity
| AT11-20USA |
When family skincare company EmBeba began development of its first product, Don’t Be Rash Diaper Balm, in 2019, the design of the packaging was as important as the product in delivering a safe, clean, and effective experience for parents and babies. EmBeba founder and CEO Thai-Anh Hoang was inspired to
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launch the company after being given a balm for her daughter’s sensitive skin by a relative in Bosnia that was made using ingredients from her garden. The balm contained soothing, skinnourishing, anti-inflammatory herbs and flowers that helped protect the baby’s sensitive skin from moisture while wearing a diaper. “That’s where the first seed was planted—why don’t we share this recipe with others who have this issue?” Hoang recalls. “I quickly discovered there are any number of generational skin remedies from a variety of different cultures, typically based on soothing natural ingredients. So we decided to create a generation-tested, family-approved line of remedies for skin-sensitive families who want a product that is based on homemade balms but is easy and convenient to apply.”
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Hoang shares that one of her pet peeves as a parent to a newborn and toddler is how messy and hard it is to apply existing diaper cream products onto a squirming child. In designing the packaging for EmBeba, providing that ease of application— while at the same minimizing packaging waste— was the challenge. “The packaging had to be sustainable, multifunctional, and toddler-friendly, all of which were very hard to do when we started conceptualizing in 2019,” Hoang says. Among the requirements for the package, EmBeba wanted a design that was small enough to fit in a child’s hand so they could play with it while the parent applied the formula—“a sensory experience and a good distraction all in one!” says Hoang. The company also wanted a package that would make it easy for the child to apply the product
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in January 2021 and is available for an SRP of $14.99 on the themselves once they got a bit older and that could withstand usage company’s website, www.EmBeba.com, through Amazon and other by a child, such as opening, closing, twisting, dropping, etc. e-retailers, and in some independent pharmacies. Hoang says the EmBeba selected a standard, fiber-based, push-up tube from a company is looking to expand its distribution to grocery and mass proprietary supplier and worked with the company over a period of distribution in 2022. —Anne Marie Mohan 16 months to modify the package to better suit their needs. Among its requirements, the company wanted a package that was the right size for both parents and babies to use easily; one that was designed to prevent the oils in the formula from seeping out; and one that would stop the balm from sliding out of the tube too quickly, without using a plastic mechanism. Says Hoang, “We decided against plastic inserts early on due to the fact that the twist-up mechanism could not be recycled at that time.” The two-piece tube, holding 1.69 oz of balm, is made of white recycled-content paperboard, with what Hoang describes as an ultra-thin wax liner on the inside and outside of the tube body to keep the oils in the formula from seeping through. A paperboard disc glued to the push-top cap helps prevent the balm from being pulled up by the air ELPLAST, A LEADING MANUFACTURER suction created when the cap is removed. OF THE EL-ZIP® BRAND “Inspired by toy design, EmBeba has a touch-free, one-handed application design,” Hoang explains. “The user rubs the balm directly onto the skin, similar to how Chapstick is applied. There is no other similarly Technology that fits every designed, hands-free diaper balm packaging on the key flexible packaging market. To apply EmBeba Don’t Be Rash Diaper market, now and in the Balm, you simply twist, push, and swipe.” future Package graphics were a collaborative effort Over 250 zipper profiles between Hoang and the team of Meroo Seth and that bring a new dimension Nachiket Jadhav at Mechi Co. Design, along with to brand awareness, cartoon character designer Tadeo Soriano Argomedo. grasping the consumer’s Says Hoang, the illustrations were designed to be attention aesthetically pleasing to children, with bright and Technical expertise that cheerful visuals that would also stand out on the works for the customer, retail shelf. “We want children to see the product both in design and function and get excited about it, just like they would with a Producers must create for their application toy,” she says. packaging that attracts the While the outer cap is colorfully decorated, with a consumer’s attention while cartoon panda taking center stage, the tube body is a safeguarding children, and this line drawing that encourages children to color in the zipper does just that. artwork. The base of the tube body offers space for www.elplastgroup.com Manufactured by Elplast Group, the baby’s name to be written in. the zipper is constructed to be While EmBeba advises consumers the packaging difficult for children yet simple is 100% recyclable and biodegradable, they suggest for elders to open. This is the multiple ways it can be reused, rather than disposed ideal closure for potentially of. “For instance, we suggest the packaging can be harmful products. reused to hold crayons, because the inner tube is a
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coloring book,” says Hoang. “You can use it as a seed starter and place it directly into the garden. There are many fun activities you can create with our packaging, similar to crafting with an empty toilet paper roll. My toddler actually made a bird feeder out of our packaging!” EmBeba Don’t Be Rash Diaper Balm launched
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NEWS
Tea Bag-Style Coffee Pack is ‘Steeped’ in Sustainability
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Mr. Espresso is an Oakland, Calif.-based, family-owned and operated wholesaler of coffee products. It is the only major U.S. coffee company to exclusively use traditional oak wood-roasting methods for its beans, a process brought to America from Salerno, Italy, by its founder and family patriarch, Carlo Di Ruocco. With its customers comprising businesses such as offices, hotels, restaurants, and cafes, Mr. Espresso had long found it a challenge to break into the single-serve coffee market—especially given the available options for single-cup brewing. “K-Cup and Nespresso capsule products are very easy and very convenient, but as far as sustainability and the quality of coffee they produce, that’s always been questionable,” says Luigi Di Ruocco, co-owner and Vice President of Mr. Espresso. “As a local, family-owned, quality-oriented roaster with a mind for sustainable methods, neither of those options fell in line with our values.” But in 2019, a startup out of Santa Cruz, Calif., called Steeped Coffee Company, launched a new product that allows coffee lovers to prepare a single serving of coffee using a tea bag-style, full-immersion filter packed with 14.2 g of freshly ground coffee in just a couple of minutes. Not only is the steeping bag a more environmentally friendly option than single-use, non-recyclable capsules—10 billion of which end up in landfills each year, according to Steeped—but the filter is made from renewable, biodegradable, non-GMO materials and is ultrasonically sealed, eliminating the need for glue or staples. To keep the precision-ground coffee fresh, the filter bag is packaged in a nitrogen-flushed film sachet. As Steeped Coffee founder and CEO Josh Wilbur explained upon the launch of the product, “Premium coffee roasters have shied away from offering their specialty beans in single-serve packaging because it’s been nearly impossible to keep ground coffee fresh, which quickly ruins the taste. With our Nitro Sealed bags, oxygen is replaced with nitrogen, so the coffee stays fresh as if it was ground moments ago.” The outer film pack was designed with sustainability in mind as well. The multilayer structure includes a barrier layer made from renewable, plant-based materials; a water-based adhesive; and a bio-based sealant layer. (Details on the specific materials and suppliers were not furnished by Steeped.) The entire package is industrially compostable per ASTM D6400 and D6868 standards. Rounding out what Steeped has branded its Guilt-Free Packaging™ system is the retail carton, which is made from 100% recycled materials and is fully recyclable. Steeped Coffee launched with its own line five coffee roasts, but also made the proprietary Steeped Brewing Method available to licensed partners. Given the packaging system’s quality and sustainability credentials, Mr. Espresso reached out to Steeped in 2019 to have the company conduct trials with its coffee in the filter bag. In fall 2020, Mr. Espresso unveiled its popular Fair Trade/Organic Seven Bridges Blend, which is described in the cupping notes as having a “velvety body,” “complex sugars,” and “sweet acidity,” in the single-serve bags. Di Ruocco notes that the portability of the packaging and the ease of coffee preparation with the full-immersion filter—just hot water is required—make it ideal for environments such as offices, hotels, and meetings. “People love it,” he shares. “I think they’re happy they can get a really good cup of coffee with so much convenience. While it may never replace the fully brewed cup of coffee someone makes for themselves at home when they have all the time in the world, it’s definitely a very convenient way to make a great cup of coffee on the run.” Mr. Espresso’s Seven Bridges medium-dark roast coffee in the Steeped Coffee bag is available for purchase on the company’s website, https://mrespresso.com, for $14 for an eight-count carton. —Anne Marie Mohan
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NEWS
Middle Schoolers Shoulder Apple, Ford Packaging Projects Packaging engineers from Ford, Apple, Pfizer, Lumi, ButcherBox, and Kalamazoo Gourmet got the benefit of a fresh view of their own packaging efforts through the lens of 45 fifth grade remote students at Highcrest Middle School in Wilmette, Ill. In December, representatives from the brands had challenged the students to come up with ways to package their respective products, and were rewarded with a presentation of the results in May. The students’ recent virtual presentation capped off months of material research, consumer understanding, idea-generating, and prototype making. In conjunction with the Michigan State University School of Packaging, the engineers also delivered a presentation about packaging as a career choice. They then challenged the students by offering a unique packaging problem for them to solve with one or more of their products. A variety of items, including glass vials, disposable masks, grilling accessories, candles, and even an iPhone Welcome Bundle were offered up, and the students chose which challenge excited them the most. “During our unique year of online learning, this was the perfect project to get students into teams and problem-solving,” says Matt Aho, Math and Science Teacher at Highcrest. “Not only does this activity align with our science standards, but it hits all the 21st Century Skills we want stu-
Highcrest Middle Schoolers submitted and presented proposed specifications for a new Apple iPhone welcome bundle. dents to have, especially critical thinking, creativity, information literacy, and flexibility.” Aho, a packaging degree holder, had previously worked with MSU and engineers at KraftHeinz to have students redesign packaging for some of their existing products. “That project was a real highlight of my teaching career, so I knew we had to try something like that again.” Kurt Jaworski of Ford Motor Company says, “From the beginning the class was very inquisitive and asked detailed questions about the product and project during our Zoom calls back in December,” he says. “They
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showed a real interest in packaging, creating viable solutions while being conscious of potential environmental impact.” The engineers were also impressed with the students’ creativity and ability to present their ideas in multiple formats. “The students were really innovative, demonstrating their ideas through several media forms including presentations, prototypes, and videos,” says Lisa Rodriguez, VP of Sales at Kalamazoo Outdoor Gourmet. “The students showed their understanding of the Kalamazoo brand, challenges with current packaging, packaging solutions and marketing considerations. How refreshing to be able to conceive packaging ideas unhindered by cost, manufacturing limitations, and/or history.” Adds Jacob Kowalski, Packaging Program Manager at ButcherBox, “The project took me back to the college days, where solutions were driven by practicality and fun, without many outside constraints. The fifthgrade approach really stood out with practical, yet whimsical, solutions.” Students were appreciative the engineers were willing to donate their time to present such a unique learning experience. “We got to put our minds to work and do something that actually affects the world. We got to make things no one else had made before, and that’s something more schools should teach,” says fifth grader Nate Butkus. The projects may have even sparked the passion of future packaging engineers. “The project was really different from anything I’ve done previously, it had a combination of engineering, art, design, and brain power that I’ve never really had a chance to experience on any other projects. I think I could consider packaging as a career,” says student Lexy Geraci. “There are so many opportunities and so many different products you can work on. The possibilities are endless.” —Matt Reynolds
CONGRATULATIONS TO READ ALLEN ON BEING RECOGNIZED IN 2020 AS AN ELITE RECRUITER IN THE PACKAGING INDUSTRY
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6/19/21 5:36 PM
20 PW JUL2021
QUOTABLES
BY THE NUMBERS
62%
The percentage of Americans who said they prefer a recycling system capable of effectively dealing with plastic over a wholesale ban on single-use plastic, according to a survey conducted by the Consumer Brands Assn. (CBA)
$425 million
The amount invested by Tyson in a new 37,000-sq-ft facility in Humboldt, Tenn., for pre-packaged trays of chicken for retail—its first new plant in 25 years
4L
The volume of oat milk that can be made from a 375-g packet of oat powder from Berlin-based B2C brand Blue Farms, saving more than 80% in packaging waste and 70% on transport costs
17%
The percentage of consumers who were buying more larger-sized packages of snacks during the pandemic (up 2% from 2018), with the intent of sharing to reduce overall snacking expenditures, according to a 2021 survey from IRI
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“Supply chains and drugs’ infrastructures across the country must be bolstered with stronger, more effective security plans, including the introduction of hard-hitting anti-counterfeiting regulations and strategies. For instance, the use of track and trace programmes featuring security devices are especially helpful, facilitating greater cooperation among those with law enforcement responsibility and providing harder hitting ways to tackle mutual threats and bring down criminals before people’s lives are endangered.” –Dr. Paul Dunn, Chair of the International Hologram Manufacturers Assn. (IHMA), in a release from the organization, “Dangers Over Fake USA COVID Vaccines and Tests, Warns International Anti-Counterfeiting Trade Body”
“The pandemic brought quick and unexpected change to both food and beverage companies and consumers, which has forever altered how and what people eat. While we anticipate more people will return to eating out as restrictions ease, the new insights in this research confirm our belief that many of the at-home habits consumers adopted are here to stay.” –Steve Presley, Chairman and CEO of Nestlé USA, in a statement quoted by Fooddive.com in an article, “Many at-home trends adopted during COVID-19 to remain after pandemic, Nestlé says”
“Beer and beverage alcohol have long lagged other consumer goods in terms of share sold online—some of this is regulatory and legislative, it’s been a more difficult environment to navigate—but we see there is consumer demand there and some of that is going to be sticking. And online purchasing is going to play a role once taprooms fully reopen, because while some people are excited to get back to their former habits, others have developed purchasing strategies that are online now.” –Bart Watson, Chief Economist for the Brewers Association, quoted in an article from Beveragedaily.com, “‘The pint is half full’: US craft beer production down 9%—but emerges from 2020 stronger than expected”
“Chemical recycling of plastics is a niche solution but it is getting extraordinary attention from the largest petrochemical companies and consumer brands. Does this herald the start of a revolution? Quite possibly—ultimately, that depends on developments in the technology and economics of recycling, wider developments in the waste system and regulatory support for this nascent industry.” –Ben Dixon, Head of Circular Materials at consulting and investment group Systemiq, in an article, “Plastics-to-oil recyclers face a double struggle,” from the Financial Times
6/22/21 10:49 AM
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6/22/21 10:49 AM
RE-FLOW ACCUMULATION CONVEYOR
22 PW JUL2021
FIRST PERSON
Views on Produce Packaging Kingsville, Ont.-based Red Sun Farms is the largest fully integrated high-tech greenhouse company in North America. Director of Marketing and Packaging Leona Neill discusses the firm’s use of more sustainable packaging, including molded fiber.
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What place in the packaging universe does molded fiber occupy?
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The produce world has largely transitioned to plastic punnets because they offer increased visibility and good ventilation. But in recent years molded fiber technologies have improved. We’re seeing smooth surfaces, ventilation, and designs that are compatible with heat-sealed lidding materials. Our consumers appreciate that our 10-oz organic grape tomatoes are sold in a molded fiber package that is sourced within Canada, a package that can be recycled or become part of the backyard compost. We believe that fresh produce and environmentally friendly packaging are a winning combination.
What has been the response to the molded fiber punnet? Because it reduces plastic use by over 90 percent, this package captured an innovation award in Berlin in 2019 and is quickly achieving success across the globe. To date it has eliminated the equivalent of 7.5 million units of plastic of this variety. Is your use of molded fiber expanding? Our Organic Grape business continues to grow year over year. Additionally, we are always working with our molded fiber partners at CKF on new designs and formats for the organic market. Our organization recognizes the benefits of this technology and the connection that consumers who are drawn to organics have made with the eco-benefits of molded fiber. What other eco-initiatives are you pursuing? Last year we announced that we are transitioning our Organic Peppers, Tomatoes on the Vine, and Cucumbers to a backyard-compostable PLU (Produce Look-up Label). This will help keep labels that are applied to a cucumber, for example, from winding up in the landfill. It will also encourage consumers to compost the pepper stem along with the PLU in their backyard composters. And just now we are introducing the SustainLabel!® from Yerecic. It features wash-away technology that has passed the Critical Guidance testing of the Association of Plastic Recyclers. Because it separates cleanly from PET flake and floats during the recycling wash process, it will increase the availability of food-grade rPET. When it comes to managing relationships with suppliers, how formalized is it at Red Sun Farms? I’d say the produce industry is not as evolved as the rest of the Consumer Packaged Goods world when it comes to having a formalized Supplier Relationship Management program. The relationship we have with our suppliers is built on the integrity of both the grower and supplier. Keep in mind, too, that the produce industry is unique as it strives to maintain its family-like connections even as growers within the industry are becoming large industrial operations. So we recognize a need to formalize some of these processes, and our team is working with our supplier partners to come up with a corporate supplier program. —Pat Reynolds
www.nerconconveyors.com 844-293-2814
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6/22/21 10:35 AM
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Learn more at pmmi.org/workforce-development/teched-365 FirstPerson_0721.indd 23
6/22/21 10:35 AM
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THE LEGAL SIDE
By Eric F. Greenberg, Attorney-at-law
When? This month, we will explore the surprisingly complex question of “when?,” as in, when does a packaging company decide to stop using a controversial component substance? Do you stop on the very day it’s literally prohibited by law, or before that, at the first whiff of public controversy, or somewhere in between? It’s not a theoretical question. Instead, it’s a supremely practical one, as the substances in food packaging are garnering more attention perhaps than ever before. Think of examples like the recent controversy and legal actions against uses of bisphenol A, as well as the new model law that a number of U.S. states are likely soon to adopt that essentially bans PFAS and phthalates, and the EU officials who have declared titanium dioxide not fit for use in food (is packaging next?). I posed the “when” question to a number of folks in various roles in the packaging industry. They turned out to have well-reasoned, articulate responses, as expected from experienced professionals, and while the themes of their comments were in some respects predictable—for example, that large companies have more resources than small ones to track these issues and be proactive—there were some surprises and some excellent advice for those who want to better adapt to changing times. One official at a large food brand says they try not to be influenced by public pressure alone, and although they will work to find alternative materials to substances deemed controversial, “We are responsive to consumers, and we are informed by science.” Although “public perception is a component” of their decisions, it’s not determinative. What’s more, this official opines that reacting to legislative proposals is seldom warranted, and predicts that the recent updates to the Toxics in Packaging Clearinghouse model legislation are unlikely to get widespread adoption. Says an official of a major packaging supplier, “The decision to phase out of a material is based on numerous factors. Of course, the first one is if the material is being banned in geographies that cover too much of your intended product area to continue use in other areas. After that it is based on a scientific risk assessment of the actual risk from that material.” They also commented that, “Often the headlines about the danger of a material do not match the actual risk to consumers based on extremely low exposures. Then the final decision is based on if the material is an important component of your final product. If it can be removed without major reduction in the performance of the final product, it is often easier to just remove a material that has the potential to be a PR problem.”
Another food packaging official, also with years of experience at a big brand, takes a practical view of the “when” question. They note that generally, “The day a company moves away from a substance is the day when they find a suitable alternative at an affordable price.” Companies that use packaging and have the ability to plan ahead should do so, and “Unless they’re foolish and the company has its head in the sand, they should be looking for those alternatives before the law bans them.” Communication up and down the supply chain is crucial, they say, with, ideally, users telling converters their needs, and converters passing along those messages to their suppliers. It’s easier said than done for smaller companies than it is for larger ones. One regulatory official at a large packaging converter is acutely aware of the unique characteristics of their company’s role. “Plastics converters are often caught between the brand owners and suppliers of innovations. Brand owners are, more often, the first to drive a change due to public perception whereas material suppliers are driven more by regulation implementation/bans or larger market shifts to drive change. As a converter, the best approach is to combine the two landscapes, based upon frequency of brand owner inquiry and feedback from suppliers, so a solution can be identified before there is a public outcry that will manifest into a prohibitive regulation.” When you pose the “when” question to a former federal food agency official and food company product development executive who is now an industry consultant, they opine that the difference in companies’ approaches “depends on how sophisticated they are.” Companies who can monitor developments and anticipate changes should use a mixture of tools. They should keep tabs on social media—whether the information there is truthful or not—to gauge consumer values, and on the policy world, such as legislators and regulators, consumer protection activists, and even court decisions. How? “One way to be nimble enough is to track all these trends,” with in-house personnel for larger companies, or via consultants for smaller ones. (I’d be remiss if I didn’t add Packaging World as well.) While “Perception, whether factual or not,” should play a role in guiding a company’s assessment of risks, they add that risks or threats of change can sometimes be opportunities. If private rather than legal pressures induce your company to stop using a substance, for example, you might tout that fact in your marketing materials, turning the change to your advantage. In summary, these choices are individualized. Each company needs to evaluate a number of pressures, and weigh its own priorities, to help it answer the “when” question. PW
I posed the “when” question to a number of folks in various roles in the packaging industry.
Eric Greenberg can be reached at greenberg@efg-law.com. Or visit his firm’s Web site at www.ericfgreenbergpc.com. INFORMATIONAL ONLY, NOT LEGAL ADVICE.
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THE BIG PICTURE
By Sterling Anthony, CPP, Contributing Editor
Packaging Should Star in Brand Licensing Agreements What all consumer packaged goods companies have is common is that their most valuable assets are their brands. Brand extension is a proven means of leveraging those assets, increasing the variety of products under their respective umbrellas. A type of brand extension is licensing, wherein a company pays a brand owner for the privilege of marketing products under that brand. The licensing agreement should govern all aspects of the relationship, with none being more central than packaging. A brand is a symbol, promising quality and value, in fulfillment of the needs and expectations of targeted consumers. A brand’s visual cues include its trade dress: name, logo, colors, fonts, slogans, and mascots, in gestalt, the whole being more than the sum of its components. The packaging conveys those cues graphically, and in many instances, is a structural cue, itself. A brand is imbued with intangibles, the results of all the investments of time and resources expended on its behalf. Ideally, those intangibles reduce to an identity (aura, personality, etc.) that differentiates meaningfully to the consumer. For that sought-after result, the packaging must deliver at the point-of-purchase and afterward, throughout the consumer’s experience with the product. The brand owner should demand nothing less of the packaging of any of its licensed products. Only well-established brands are licensed. Why else would another company pay to ride the coattails of an unestablished brand? Brand owners, nonetheless, should think beyond the prospect of fees in determining whether to grant licensing rights. That’s because the brand owner always has more to lose from an ill-conceived and/ or ill-executed licensing agreement. Licensing is not a relinquishing of the brand owner’s control; to the contrary, the licensee should be regarded as an extension of the brand owner, with the latter exercising commensurate control and ultimate rights of approval. Regarding packaging, an overarching consideration is the product form to which the brand is being extended. Liquid or solid, for example; uni-construction or assembly, as another example. The point being broached is that the licensed product may be of a form different from any previously marketed under the brand. When that’s the case, a likelihood is that the required packaging will be different than what the brand owner has been using. It’s less of a challenge if the brand owner has its own efficient, effective package development process, which it only needs to assign to the evaluation of the licensee’s proposed packaging. In large part, package development is about achieving functionality with the least amount of complexity feasible. Keep it simple. When that’s the prescription, there’s less probability of
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malfunctions and consumer dissatisfaction, including personal injuries. Packaging can be reasonably simple, yet comprised of multiple components. Here, concerns should include the fit among components, along with their individual dimensional tolerances. The licensee’s quality assurance procedures, including package testing, need to be approved through documentation, augmented by the brand owner’s auditing of the licensee’s facility. It’s conceivable that the licensed product’s packaging is subject to agency regulations that don’t apply to the brand owner’s other products. The brand owner should assume nothing regarding compliance, but instead insist on proof of same from the licensee. Packaging regulations are not limited to package/product compatibility and interactions. They also can govern such matters as the accuracy of product depiction, instructions, and warnings—in short, anything falling under the communication function of packaging. Astute brand owners devise strategies for promoting their bona fides regarding sustainable packaging. The media can be websites, advertising, promotional literature, etc., and yes, on the packaging, too. Especially when the packaging for the licensed product differs (in material, for example) from that of the brand owner’s stable of products, the concern should be that it can’t be perceived as contradictory. That’s not an easy task, given the individuals and groups who are sustainability hardliners regarding packaging. Sometimes, the licensee presents a product line, composed of various flavors, strengths, sizes, or other differentiators. The packaging for each variety needs to be evaluated for approval, no matter how redundant the process might seem. As for the approval process, the licensing agreement should detail what’s to be submitted and by what means. Layouts, for example, might be submitted electronically. Final approval, however, always should be contingent on the evaluation of actual product in its physical packaging; in other words, the combination that is to appear at retail. Licensing is disclosed to the public, typically somewhere on the packaging, in wording to the effect of, “Sold under license granted by (insert the brand owner’s name, here).” Such disclosure is of little, if any concern to most consumers; being brand-driven, their satisfaction or dissatisfaction will be associated with the brand owner. Every brand, even an iconic one, has limited elasticity. There is a limit to the variety of product categories to which it can be applied and still retain credibility. If a brand owner is convinced that a given licensing proposal makes sense, it’s incumbent on that brand owner to control the arrangement as meticulously as would be done with an in-house project, in the process assigning packaging its due deference. PW
6/22/21 7:26 PM
LIP2021_A
Each of the following market-leading companies* participating in Packaging World’s 2021 Leaders in Packaging Program are named sponsors of PW’s Future Leaders in Packaging scholarship. This year’s recipient is Purdue Northwest (PNW), College of Technology. We appreciate the support of all participants on behalf of packaging education.
M *These logos represent some of the recent Leaders in Packaging Participants. Sponsor recognition will alternate every other month. ©2021 PMMI Media Group
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SUSTAINABLE PACKAGING
By Anne Marie Mohan, Senior Editor
Love Beauty and Planet Debuts Reusable Bottle Unilever’s hair and skincare brand Love Beauty and Planet was created with one goal in mind, says the company: “to make the planet a little cleaner, greener, and more beautiful through small acts of love—the little things we can all do to that add up to make a big difference.” One “small act of love” consumers can now do to reduce their impact on the planet is to avail themselves of Love Beauty and Planet’s new 16-oz reusable aluminum bottles for two formulas of its shampoo and conditioner: Coconut Water & Mimosa Flower and Murumuru Butter & Rose. The reusable bottles were launched in April at Target, along with 32.3-oz refills. The refill bottles are made from 100% recycled PET and use 40% less plastic per ounce compared with Love Beauty and Planet’s traditional 13.5-oz bottles. According to Sonika Malhotra, co-founder and Global Brand Director, Love Beauty and Planet, Unilever, after each reuse of the aluminum bottle and pump, 21.89 g of plastic are saved, resulting in a plastic reduction of 56.7% (compared to the standard, 13.5-oz bottle) over the course of a year. Malhotra shares that the refill system represents another step in Love Beauty and Planet’s journey toward meeting its 2030 sustainability commitments. “We recently announced our commitment to making all our packaging 100% recyclable, refillable, or compostable by 2030, so as we move toward that goal, we plan to assess and adjust the packaging for all our products,” she says. “There’s lots to do in this space. We need to have all hands on deck to work on solutions that are good for our shopper and the planet, so we are eager to innovate in this space.” Since its launch, Love Beauty and Planet has focused on making sustainability accessible to its consumers—“or else it stays on the fringes,” says Malhotra. Among the brand’s eco-friendly offerings are bottles made from 100% PCR plastic or ocean-bound plastic, innovative product formats like shampoo bars, concentrated formulas that use 50% less plastic or water, and “air-powered” dry shampoos. The brand also offers body wash, shampoo, conditioner, and laundry detergent products in reusable aluminum packaging on the Loop online shopping platform. The newly launched reusable bottles for purchase at retail are different than those created for Loop though. “These bottles were specially designed for consumers to pick their own refillable aluminum bottles conveniently with the option of buying refills as well. There is a role for both models,” explains Malhotra. “Once you need
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to refill your aluminum bottle, you can scan the bottle’s QR code, and you are directed to the order page for one of our lightweight refill bottles made with recycled and recyclable materials.” Label artwork for the reusable aluminum bottle was done by illustrator Leah Duncan and was inspired, Malhotra shares, by Duncan’s love for the planet, with the message around refilling and reusing beautifully and creatively embedded within the design. To source the packaging materials, Love Beauty and Planet worked with a number of proprietary suppliers. Aluminum was selected for the reusable component of the system due to its durability and its ability to be refilled, as well as its compatibility with the brand’s formulas. According to Malhotra, typically for the aluminum bottle to be comparable to a plastic bottle in terms of its footprint, Love Beauty and Planet suggests the consumer use it five to six times, at least. “The bottles are designed to do that and much more,” she adds. “In an industry of low brand loyalty and quick changes to routine, this is a tall task, but we believe our consumers will be excited to be part of this journey that helps reduce plastic waste to an extent.” According to the company, Love Beauty and Planet is the first beauty brand to introduce refillable aluminum bottles for shampoo and conditioner at mass retail. The hair care products are available from Target, both in-store and online, in the 16-oz aluminum bottle for $9.99 and in the 32.3-oz refill bottle for $14.99. PW
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Yes, We Can! At Sonoco, we’re committed to producing the right packaging for a better world. The design of Sonoco’s EnviroCan™ allows it to meet a brand’s ongoing challenge of balancing responsible materials sourcing with product and food safety. Our flagship container – a paper container with a steel bottom – not only meets the performance needs of the markets we are committed to serving, but it can also be recycled. The can body is made of 100% recycled fiber, of which 90% comes from post-consumer sources. The design of EnviroCan™ allows it to be recycled in the steel stream in the U.S., and EnviroCan™ is eligible for the relevant recycling label in Canada. But today, we face a new challenge. Unfortunately, many consumers don’t have access to recycle EnviroCan™ through their municipal recycling programs, meaning our paper container, like many other packages, is under-recycled. The North American recycling industry needs partnerships, investment and commitments from the industry to impact significant change. Sonoco is committed to reducing packaging’s negative impact on our world with ongoing efforts to increase the recycling rate of EnviroCan™ through both the paper and steel recycling streams. Through internal investments and external partnerships, Yes, we can succeed. To learn more about these projects and our EnviroCan™, contact 360solutions@sonoco.com.
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Automated Filling for Innovative Pack Once The GFB had established that its hybrid paper/paperboard package was a hit with consumers, an automated rotary bagger became an absolute must. WHAT YOU’LL LEARN
How to offer portability
Efficient cube
By Pat Reynolds, VP Editor Emeritus Dedicated to gluten-free bars, bites, and other gluten-free products and in business now for a decade, The GFB of Grand Rapids, Mich., may be something of a new kid on the block. And with about 50 people on the payroll, it’s not exactly a food-making juggernaut. But one thing the firm’s management is not afraid of is innovative packaging and new equipment to fill it. Exhibit A is the collapsible cup that The GFB (acronym for Gluten-Free Bar) uses for its glutenfree oatmeal. This format is an alternative to round cups with flexible film lidding commonly used in this category of products. Such cups are certainly functional enough, but from any sort of
The rotary filling machine has two volumetric fillers and lets The GFB run about 25 packs/min. Inset left shows a package paused as it receives its charge of oatmeal. cube or space utilization perspective, they’re a bit suboptimal. Not only because a round package doesn’t cube out well, but also because the container needs to be designed with a considerable amount of head space between the dry product and the lid. Inherent in such a design is the need to ship a lot of air. These shortcomings are neatly addressed by the cup used by The GFB because it’s collapsible. This makes it uniquely suitable for on-thego consumers who crave portability and convenience. Consumers can easily tuck the slim pack in a purse or brief case. When it’s time for breakfast, just pinch the left and right sides toward the middle and, thanks to clever scoring and die cutting, the paper package turns itself into a squared-off bowl. Just add hot water and stir. Microwaving isn’t
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printing are joined by adhesive in a purpose-built IntegraFlex machine. In the case of the package used by The GFB, the paper is a 25-lb weight with an unnamed coating for barrier purposes. According to Andy Morgan, Vice President of Operations at The GFB, the collapsible cup has been in use ever since oatmeal was added to the firm’s product mix more than three years ago. At the outset, filling was an entirely manual operation. Then about 18 months ago, a semiautomatic system was put in place. “Sales were increasing,” says Morgan, “and it quickly became evident that using as many as seven people to fill 10 packages a minute was not going to do.”
Photo above left shows the filled hybrid package in its slender collapsed state. Consumers pop the package open (above right) and pour hot water in to prepare the gluten-free oatmeal. really necessary, but for those who prefer oatmeal that’s really hot, instructions for microwaving are included on the package. Essentially a hybrid package consisting of one flexible material (paper) and one rigid material (paperboard), this collapsible cup comes from Graphic Packaging International. It was born out of GPI’s IntegraFlex™ technology, a broad hybrid platform where the common denominator is finding ways to marry the advantages of flexible packaging materials with those of more rigid packaging materials. Until now, GPI has produced these unique packages in an R&D facility. But the firm is now in the process of finalizing a decision on which of its converting plants will house what might be called an IntegraFlex Version 3.0 machine. Unlike the beta units currently in operation, this next-generation equipment will crank out these hybrid packages in true commercial quantities. Fundamentally, the converting process consists of printing and coating roll-fed paper and then sending it through a slitter/rewinder. Next, the paper and individual 18-point SUS paperboard blanks with offset
Filled packages eventually move through this heat-sealing station and then a cooling station before dropping onto a discharge chute.
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Gluten-free bites led the way As luck would have it, The GFB had just recently installed an automated filling system for pre-made pouches of its gluten-free bites. Purchased from PPi Technologies, the PSG LEE machine was a big hit. “We basically plugged it in and started producing packages,” says Morgan. “So we said to PPi, how do you feel about filling this collapsible oatmeal package? And within about four weeks they came back with a solution I felt really good about. It was partly an off-the-shelf rotary system with two volumetric fillers on it, one for the coarse material and one for the ‘fines’—sugar, cinnamon, salt. But it had to have a few key elements of customization that were required by this particular package. Most important was a pneumatic mechanism that would push the bottom up so that the package fits better in its corrugated secondary packaging. That’s probably the most unique thing about the whole system.”
play trays are then placed in a corrugated shipper that is taped closed. In addition to distributing through supermarkets, pharmacies, and natural food stores, The GFB does a brisk online business, where a case of six oatmeal packs sells for $15. As for the new PSG Lee Rotary Bagger, Morgan says it’s been every bit as reliable as the one installed for the flexible film stand-up pouches. He also believes it will present opportunities for other product/package combinations. PW
Watch a video of the machine at pwgo.to/6097. Packages are fed into the intermittent-motion PSG LEE RT-110 Rotary Bagger from a magazine. A vacuum pickup device picks one bag at a time and hands it off to one of 10 mechanical grippers mounted on a central rotary carousel. These grippers move through a series of stations that are responsible for first making sure that the top of the package is wide open and then positioning the package over a Videojet ink-jet coder that imprints lot and date code on the bottom of each package. In subsequent stations, pouches pause beneath the two volumetric fillers that deposit product—first the coarse and then the fines—into the package. Filled packages eventually move through a heat-sealing station and then a cooling station before dropping onto a discharge chute. Secondary packaging, done manually for now, consists of an E-flute corrugated retail-ready tray that holds six primary packs. Eight of these six-count dis-
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SPECIAL REPORT
Cautious Salary Optimism Returns After a flat salary year in 2020 with heightened uncertainty and worry about both traditional salary increases and bonuses, 2021 results indicate that confidence is returning. Meanwhile, job security is high and fewer people are seeking greener pastures at new jobs.
By Matt Reynolds, Editor Getting down to brass tacks, overall reported salaries rebounded slightly in this year’s reporting, up 5.7% after a dip last year. But only a little more than a third of this year’s 828 respondents also took the survey last year, with another quarter who may or may not have (they don’t recall). The remainder absolutely didn’t take it last year. Since people are mostly different, the reported salary number is less of an indicator of what’s happening than the reported change in salary. We’re looking for change velocities more than dollar figures. And according to this year’s crop of respondents, fewer people Compensation Bounces Back After Two-Year Lull this year reported having received a traditional salary increase last year (63% in 2020 compared to 73% in 2019). Percent Earning 2021 2020 2019 2018 Expectations for future traditional salary increases are flat Less than $50,000 (calculated) 4% 5% 3% 3% from last year (71% expected to earn more in coming year $50,000 - $59,999 5% 5% 5% 5% in both last year’s and this year’s results). But the number of people worried about making less in the coming year $60,000 - $69,999 7% 7% 8% 8% dropped from 8% in last year to 5% this year, a hint of relief $70,000 - $79,999 9% 11% 8% 9% of anxiety. It feels like we’re on the cusp of returning to $80,000 - $89,999 8% 10% 10% 8% normalcy. $90,000 - $99,999 10% 11% 9% 8% Another suggestive clue is in bonus reporting. Last year, when responding at the outset of the pandemic, respon$100,000 - $124,999 20% 19% 22% 23% dents were more worried than usual about not receiving $125,000 - $149,999 14% 12% 13% 13% bonuses (page 41) in 2020. But it looks like some of those $150,000 - $174,999 10% 9% 8% 8% worries were unfounded, with more people actually having $175,000 - $199,999 5% 5% 4% 5% received bonuses in 2020 than had expected to. And more people this year expect to receive bonuses than did last $200,000 or more (calculated) 9% 7% 8% 10% year, another hint of greater confidence. Notably, a comAvg. (x $1,000) $122.00 $115.78 $120.72 $121.71 mon tactic for businesses in uncertain times is to maintain Base 996 1004 923 828 compensatory continuity in the form of single-year boSource: Institute of Packaging Professionals 2021 Salary Survey nuses instead of more permanent, lasting salary increases. Respondents fared awfully well in terms of pandemic Domestically, the weighted average salary was up by 5.7% over the previous employment, with only 1% reporting unemployment comyear in 2021. Compared to last year (which was reported in early 2020 as the pared to the 8% (at time of writing, even higher when repandemic spread), percentages of respondents earning less than $70,000 sponses were collected) national average. That stands to dropped by 1 percentage point, and the number of those earning between $70,000 and $100,000 dropped by 5 percentages points. During that same time, reason. Packaging was proven an essential job function during the last 16 months, and lots of brands/CPGs fared percentages of those earning $100,000 more increased by 6 percentage points. Are we there yet? Is it safe to say we’re emerging from the uncertainty of a pandemic into the (forgive the now-cliché) new normal? Are we recalibrating to adjust to what global consumer trends monitor Mintel calls the “next normal?” If the results of the annual Institute of Packaging Professionals (IoPP) Salary Survey are any evidence, the answer seems to be “kind of.” Uncertainty is diminishing, and confidence is returning. We’re on the downslope, but we aren’t fully there yet.
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Total Compensation by Job Function Job Function Consultants
Corporate Management
Engineering
Marketing/ Sales
Package Production
R&D
Structural Design
Supply Chain Management
Under $50,000 (calculated)
16%
0%
2%
2%
5%
2%
4%
5%
$50,000 - $59,999
5%
3%
2%
9%
31%
1%
11%
5%
$60,000 - $69,999
13%
1%
5%
5%
5%
5%
16%
19%
$70,000 - $79,999
8%
3%
9%
7%
13%
11%
4%
5%
$80,000 - $89,999
8%
1%
9%
3%
5%
11%
4%
9%
$90,000 - $99,999
6%
3%
14%
7%
0%
14%
12%
4%
$100,000 - $124,999
10%
10%
26%
19%
19%
19%
41%
24%
$125,000 - $149,999
8%
16%
13%
18%
9%
20%
4%
5%
$150,000 - $174,999
12%
11%
11%
16%
9%
10%
4%
5%
$175,000 - $199,999
7%
12%
5%
6%
5%
1%
0%
5%
$200,000 - $249,999
3%
16%
3%
3%
0%
3%
0%
5%
$250,000 or more
5%
25%
2%
4%
0%
4%
0%
11%
$111.03
$190.97
$117.80
$126.66
$93.15
$118.97
$94.54
$125.49
38
71
218
96
21
111
26
21
Salary Range
Avg. (x $1,000) Base: 602*
*Note: The 2020 (reported in 2021) average salary $122,420 is based on 828 total responses among 19 job function categories. The graphic above only illustrates eight highly pertinent packaging job functions with a significant number of responses, explaining why the base numbers here add up to 602 instead of 828. The other 11 job duties, like Human Resources, Quality Control, Warehouse Logistics, or Education, comprised the remaining 226 base responses. Source: Institute of Packaging Professionals 2021 Salary Survey
extremely well, struggling only to keep up with demand. As long as food, bev, and personal care CPGs could handle the swing away from foodservice and hospitality, and toward retail and e-comm, business was good. But respondents are still battle-worn from the last 16 months. One indicator that we’re not fully back to normal is that people are exhibiting quite limited job-seeking behavior (page 42). People are still in “hunker down and hold on to what ‘ya got” mode, and loyalty is high to companies who kept respondents employed in uncertain times. Job security is as high as we’ve seen it in this survey, and people are sticking around and avoiding the risk of seeking greener pastures. One noteworthy finding was a fairly clear distinction between generations, age groups, and experience levels. Younger and less experienced folks exhibited the most confidence in their future, and the most upward mobility (as stands to reason when early in careers). There’s a magical
‘five years of experience’ marker that seems to be a jumping off point for the greatest salary increases (percentage wise). With a tight and tightening job market, people are making more at lower age, education, and experience levels, though an undergraduate degree offers greater momentum. Obviously, the highest age, education, and experience levels command the highest salaries. But even so, upward mobility is diminished at that plateau, and there’s less confidence in continued earning momentum. Notably, we saw the words “age,” “ageism,” and “continued relevance” frequently listed, unprompted, as threats to job security in the verbatim section, something we haven’t noticed previously. As our magazine’s cover indicates, it feels like the post-pandemic thaw is on. The usual indicators of uncertainty that peaked last year are waning, and confidence in a more lucrative tomorrow (more by way of bonus than of traditional salary increase) is improving. PW
Methodology and Year-Over-Year Comparisons Information illustrated in this report is derived from a survey conducted by the Institute of Packaging Professionals (IoPP), PMMI, and Packaging World. Responses were collected between January 25 and April 9, 2021. Of the 996 total responses, 168 responses reporting their primary business was outside of the U.S. were removed from the following compensation reporting to avoid currency exchange and cultural variables, leaving a base of 828 highly qualified domestic packaging professional respondents. Year-over-year comparisons are made many times throughout this report. However, only a portion of respondents reflected here are the same respondents as last year. As such, though similar, demographics are not identical. Commentary on year-over-year comparisons is intended to be in view of an evolving workforce, rather than a direct 1:1, apples-to-apples comparison. PW
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Not All Packaging Jobs Fare Equally The overall salaries reported in this survey went up by 5.7% in 2020 (reported in 2021) compared to 2019 results (reported in 2020), but not all job functions or demographic groups fared the same.
Winners in a wild 2020 • Corporate management salaries as reflected in this survey went up by 13% compared to the previous year, from $168,370 to $190,970. It is possible that one or a few uncharacteristically high salaries skew this large jump, since corporate management has a less rigid upper bound/vertical limit than roles like Engineering and Package Design. • The Human Resources job function represented a small sample, but all 8 respondents are doing well and confident in next year. 100% received a salary increase this year, and 100% expect another salary increase next year. This may be a function of a tight labor market and the importance of HR being able to recruit and retain capable workers. • Quality Control salaries jumped by 27% from $86,350 to $109,370. While this is noteworthy, sample sizes were fairly small with only 24 reporting last year, and 10 this year. Still, 80% of QC respondents got a raise this year, and 90% expect one next year. • Confidence in earning more next year was at 71% across industries, but people in the Automotive (89% expect to earn more) and Pharmaceutical (80% expect to earn more) industries displayed the most confidence. Both were above average in reporting a salary increase in the past year, also. • Salaries in the Mountain and Pacific Regions increased by 19% and 11% respectively. The Pacific Region also reported the highest salaries overall at $139,220. • The 3- to 5-year experience cohort tends to be on the verge of a significant salary bump. The group has the greatest upward mobility, is the most likely to have received a both raise and a bonus in the previous year, are the second most likely to expect a raise in the coming year, and see the largest salary jumps (by percentage of their previous base salary) as they grow into the 6- to 10-year experience range. • Mid-sized companies, from 500-999 in size, saw a 19% increase in salaries to $120,520, the highest percentage increase of the various company sizes. The largest companies (50,000 employees or more) still command the highest overall salary figures, but the perhaps more nimble, more agile mid-sized companies were better able to quickly adapt in a crazy 2020, resulting in a higher percentage gain.
In-line with the averages • Supply Chain jobs maintained last year’s COVID-19 bump with a 5% increase this year to an average of $125,490, in line with the overall 6% increase. Last year, these jobs experienced 10% salary growth, the only job duty to increase in salary last year over the previous, from an average of $108,750 to $119,420. It is thought that supply chain management was put at a premium during the pandemic, and that seems to have carried over to this year. • Engineering job salaries increased from $108,700 last year to $117,800 this year, an 8% bump that’s in line with the 6% overall increase in salaries. • The youngest cohort, 18-34 experienced the second-highest salary bump at 8%, in line with the overall 6% salary increase average.
Most negatively affected • Innovation impacted? Average salaries for Consultant jobs dropped by 13% between the last survey and this survey, from $127,500 to $111,030. Purchasing salaries as reported dropped by 17%, from $104,220 to $86,890. And Research and Development jobs saw a 2% drop from $121,500 to $118,970—2% isn’t much, but keep in mind overall salaries went up by 6%. While correlation is not necessarily causation, it’s interesting to note that consultants, purchasers, and R&D mentioned above are all related to bringing innovation & new products to a brand or CPG. Packaging lines for brands and CPGs in food, beverage, and personal care (such as soap and hand sanitizer) were often at capacity in 2020, and these companies were struggling just to keep up with exorbitant consumer demand. This meant less capacity for new lines, new equipment, and R&D into new product SKUs. SKU proliferation actually contracted for the first time in a long time in 2020. Perhaps this impacted consultants, purchasers, and R&D in 2020. Of note, consultants and purchasing as a job duty didn’t fare so well in 2020, but of respondents in the Consulting Services industry 79% expect to make more in 2021. • Salaries in the Northeast and East South-Central regions were down by 2% and 1% respectively, the only two regions to report decreases compared to last year. The East South-Central region also had the lowest salaries of all regions at $109,690. • The smallest companies, with 1-9 employees, saw a 7% drop in salary, to $104,2100. Perhaps these companies had the fewest resources to manage a high-pace-of-change 2020.
Mixed results
L c p
• The oldest cohort, 65+, experienced the largest year-over-year salary bump of 31%, from $107,250 to $140,350. This reflects the smallest sample size of the age cohorts (43 respondents), however, and a few unusually high large salaries can affect averages. Meanwhile, this group is the least likely to expect to earn more next year, and of those expecting to earn more, they expect the smallest bump. Some of this is a natural result of having attained top positions in their field with less remaining upward mobility. However, the write-in/verbatim answers indicate that, unprompted, 4% of all respondents, or 24 people, expressly consider their age, ageism, and continued relevance in a changing world as their greatest threat to job security. This is the first time we’ve seen such an explicit generational divide in the results of the survey.
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Best Predictors of Salary What were the top predictors of a salary? After the obvious job function variable—corporate management makes more than operators on average—the three factors of experience, education, and age are the most accurate salary predictors. However, we see some evidence of drift away from this correlation. Those without undergraduate degrees are doing better than last year, evidence of labor scarcity and the premium on capable workers regardless of education level. Meanwhile, the gender-based wage gap persists, in part due to demographics.
Education
Age
• 63% of those without undergraduate degrees earn less than $100,000. That figure was 75% in 2020, and 62% in 2019.
• The largest difference in salary, one of 31%, occurs between the 18-34 cohort and the 35-44 cohort. Assuming age and experience are closely correlated, this stands to reason.
• Those without undergrad degrees earned an average of $95,380, up 12% from $84,500 last year. Perhaps this is an indicator of the tightening labor market. • The biggest salary jump based on education, a 25% difference in salary this year, was reported between a high school/some undergraduate ($95,380), and an undergraduate degree ($122,200). • People with undergraduate degrees are more confident in a raise. 76%
of people with undergraduate degrees expect to get a raise this year, compared to only 51% of those without undergraduate degrees.
• People with undergraduate degrees feel more secure in their jobs. 52%
feel very secure and 33% feel somewhat secure.
Respectively, those numbers are 37% very secure and 41% somewhat secure for those without undergraduate degrees.
• Ensuing pay percentage gains—from undergraduate to graduate degree (+5%) and graduate degree to doctoral degree (+11%)—aren’t as drastic, so the greatest pay gains by percentage are correlated with getting that undergraduate degree.
Experience • The experience continuum has the most graduated pay scale correlation, with two experience markers that seem to result in a vault forward in pay. More so than any other predictor, the largest salary jumps
occur after the employee gets at least 5 years of experience under his or
her belt.
• The least experienced respondents are most likely to expect a raise next year. 83% of those with 2 years, 78% of those with 3-5 years, and 80% of those with 6-10 of experience expect to earn more next year. Those numbers are 72% for those with 10 to 20 years of experience, and 61% for those with more than 20 years experience, an expected function of greater upward mobility in less experienced cohorts. • At greater experience levels, upward mobility and room to grow can be diminished. Though most (72%) highly experienced (11-20 years) still expect to earn more next year, they expect the earnings bump to be more modest—92% of those with 11-15 years of experience and 87% of those with 16-20 years of experience expect a raise of less than 10%. • Experience pays. People with more than 20 years of experience earn 21% more ($150,450) than BOTH the 11- to 15-year ($121,240) and 16- to 20year ($121,660) experience ranges. • The second biggest salary jump based on experience, a difference of 20%, is between the 3- to 5-year range, and the 6- to 10-year range, meaning that the 5-year mark is a good indicator of when an average employee can expect to see significant pay scale gains, if they keep at it. • While lower education levels (above) have correlated with rising salaries between 2019 (reported in 2020) and 2020 (reported in 2021), we don’t see the same effect with lower experience levels. People with less than 2 years of experience only earned 0.65% more in 2020 (reported in 2021) than they did in 2019 (reported in 2020).
2021_SalarySurvey.indd 38
• Of the 18-34 cohort, 84% expect to earn more than last year. This reflects the greater upward mobility of younger ages. Only 61% and 64% of the 45 to 54 and 55 to 64 cohorts, respectively, expect to earn more next year, and only 57% of 65+. • Younger people switch jobs more frequently. 39% of the 18-34 age range say they possibly, definitely, or currently are seeking a new job in the coming year, compared 27% of 35- to 44-year-olds, 28% of 45- to 54-year-olds, and 26% of 55- to 64-year-olds. • 26% of the youngest cohort, aged 18-34, make more than $100,000 per year. That cohort also earned 8% more in 2020 ($88,980) than they did in 2019 ($82,560), beating the average salary increase across all ages of 5.7%. • 29% of the oldest 65+ cohort earn less than $100,000, perhaps indicating reduction in hours or responsibility. They also earn 5% less ($140,350) than the next youngest cohort, 55- to 64-year-olds, who report making the most of any age group at $147,110.
C
M
Gender • The average salary reported by women ($109,210) still trails that of men ($127,900) by 16%, meaning the gender pay gap persists. • 21% of women respondents are engineers, compared to 29% of men. Current programs attracting women to STEM education aim to bridge that gap.
Y
CM
MY
CY
CMY
K
• 6% of women respondents are in corporate management positions, compared to 10% of men. Programs aimed at grooming women for leadership positions should result in more equal representation in this job function. • The reported average salary difference between genders for the past three years has been $18,500 (2018), $16,900 (2019), and $18,690 (2020). • Despite the persistent gap, there’s hope for greater equality. First, female respondents averaged 5 years younger than male counterparts, with an average age of 41 compared to men at 46. Younger cohorts tend to earn less. • Women are still a lot less experienced, with 49% claiming 10 years or less in experience compared to 33% of male respondents with less than a decade of experience. Women respondents averaged 12 years of experience, 3 years less than men respondents’ 15. More experience correlates with higher salary. • Women are every bit as educated as men, perhaps a bit more. 58% of women have undergraduate degrees compared to only 50% of men, and we know an undergraduate degree, compared to un-degreed workers, is responsible for the largest percentage of salary jump with education as a variable. Gender-based wage gap is persistent and frustrating. Taken together, the above insights collectively indicate that the age and experience distribution of women in packaging is a factor in the salary gap. Women less frequently report their job function as engineering or corporate management, something that many programs are working to change via youth programs exposing women and girls to STEM subjects and leadership skills. The good news, as it was last year, is that the survey reflects a younger and less experienced cohort of women—with collectively comparable or better educations—that should eventually emerge into the upper age and experience echelons they previously didn’t inhabit. If and when the age, experience, and job duty distribution of women more closely matches that of men, considering the education distribution is already even, we will be able to isolate gender as a variable in salary. Still, the single year-over-year snapshot didn’t reflect any progress, so in the short term, the persistent wage gap is frustrating.
6/23/21 2:51 PM
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Findings on Raises and Bonuses Lots of companies understandably tapped the breaks on traditional salary increases in 2020. Even so, respondents’ confidence in earning more this year than in the previous year has returned after early pandemic anxieties about making less than the previous year. Some companies appear to have opted for single-year bonuses instead of more permanent traditional salary increases (raises) to keep compensation temporarily steady while mitigating future uncertainty.
Pandemic Uncertainty Curbs Salary Increases in 2020 Yes, I earned more than han I did the previous year
75%
72% 63%
Predictably, traditional raises saw a 9-percentage point drop in 2020, as respondents’ employers girded themselves for the unknown that was to come in the remainder of 2020.
37% 28%
25%
No, stayed thee ssame am ame m oor decreased
2019
2020
2021
*Note: the survey question presented three possible answers: Yes (63%); No, stayed the same (32%); and No, decreased (5%). For simplicity’s sake, we combine the two ‘No’ answers in this and the above graphic.
How Traditional Salary Increases Stacked Up Did You Get a Traditional Salary Increase in 2020?
If So, How Much of an Increase? 16%-20% Increase
No 37%
6%-10% Increase
2% 4%
More than 20% Increase
Yes 63%
10%
11%-15% Increase
4%
0%-5% Increase
79%
Fear of Making Less Next Year Subsides 67%
27%
71%
I expect to earn same as last year 21%
6%
2019 19
2021_SalarySurvey.indd 40
71%
I expect to earn more than last year
8%
I expect to earn less than last year 2020
24%
5%
2021 202
Of the 63% of all respondents who reported getting traditional salary increases last year, most raises (89%) were of less than 10%, with most being under 5%. Under some conditions, when companies aren’t able to commit to permanent salary increases, single-year bonuses are used as temporary compensation. Some of this dynamic may be evident in the bonus findings on page 41. When asked about expectations of their salary the following year in early 2020, we saw a slight uptick in people worried about making less, probably born from uncertainty. That dropped by 3% when asked again this year, in early 2021, and expectation to earn the same rose by 3%. Meanwhile, confidence in earning more next year remains flat at 71%.
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Confidence Returns After Pandemic Scare Do You Expect to Earn More Next Year?
If So, How Much More Do You Expect? More than 20%
5%
6%-10%
14%
16%-20%
No, the same 24%
Yes, more 71%
2% 3% 11%-15% 0%-5%
No, less
76%
5%
Receipt of 2020 Bonuses, and Expectations for 2021 Bonuses, Rebound Post-Pandemic Yes, I received a bonus last year, and also anticipate one this year
63%
59%
63%
No, I didn’t receive a bonus last year, and don’t anticipate one this year 22% 8% 77% %
21% 19% Yes, I received a bonus last year, but don’t anticipate one this year 11% 1% % 11% 99% % 7% No, I didn’t receive a bonus last year, but do anticipate one this year
2019
2020
2021
IoPP Members & CPPs Report Higher Salaries in 2021 $130,000 $128,000 $126,000
$128,687
$128,149
$124,000 $122,000
$120,874
$120,000 $118,000 $116,000
$116,657
$114,000
Greater confidence. Forward-looking responses on future salary expectations (71% expect to earn more)—not only in whether they expect an increase, but also in how much of a salary increase— display greater confidence when compared to backward-looking responses on existing salary increases for the previous year (63% got more).
Fears of Missing Bonus Unfounded. Last year’s results revealed a 4-percentage point reduction (from 63% in 2019 to 59% in 2020) in the number of people who both received a bonus last year (2019) and expected one this year (2020). Now, in 2021, it appears that number has rebounded back to 63%, indicating that while traditional salary increases were stagnant, fears about not getting a bonus were unfounded. This is further supported by the 4-percentage point reduction (from 11% in 2020 to 7% in 2021) in people who got a bonus last year (2020), but don’t anticipate one this year (2021). Perhaps this hints at some companies being sure to keep singleyear bonuses in the compensation structure in 2020, while not committing as readily to more permanent traditional salary increases.
IoPP, CPP Bump. Once again, IoPP members reported higher salaries than non-members, and Certified Packaging Professionals (CPPs) earned higher salaries than their non-certified colleagues. Remember, the average respondent regardless of IoPP affiliation earned 5.77% more than they did the previous year. That’s why it’s noteworthy that IoPP members earned 7.7% more than the previous year, beating the overall average, while IoPP non-members only earned 4.0% more than last year, trailing the overall average.
$112,000 $110,000
2021_SalarySurvey.indd 41
IOPP IO PP Member
IIOPP IO OPP PP Non Non-Member n-Member
Ce C ert rtifiedd rtifi Certified P Prof. Pkg.
Not Not a Ce C Certified ert rtifi tifiedd Pkg. Pkg. Prof.
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General Employment Seeking and Job Security Findings After highly uncertain year, respondents have weathered the storm well. In this year’s findings, they tend to be sticking around at their current companies, are less likely to be seeking new employment elsewhere, and are enjoying stronger job security than we’ve seen in recent years in this survey. The pandemic helped demonstrate how essential the packaging function is to CPGs and brands, resulting in a robust combination of loyalty, retention, and job security.
Packagers Weather 2020 Well Involuntary termination, but rehired elsewhere Voluntarily changed employers
Will You Be Seeking a New Job? Not likely
Involuntary termination and I’m currently unemployed
1% 3%
34%
34%
Possibly yes
23% 18%
11%
37%
22%
Neutral – no strong feelings 17% 155% 15% 5%
15% 5% %
19% 18% 118 8% 8% 16% 6%
Definitely no I am currently looking for a new job 7% 5% %
5%
7% 4% %
Definitely yes 2019 85%
No job change
In a tumultuous year, survey respondents fared quite well, with only 1% reporting unemployment, and an impressive 85% reporting no change at all. At the time of this writing, the national unemployment rate is at 8% (was higher when responses were collected), for comparison’s sake. In uncertain times, people tend to hunker down and stay put. Meanwhile, the packaging industry— including most of the job functions encompassed within it—were deemed quite essential by employers during the pandemic. Retention efforts by brands were rewarded by workforce loyalty.
2020
2021
Respondents are less likely to be possibly, definitely, or currently seeking a new job than they were in previous years. In times of uncertainty, people tend to mitigate the risk that comes with trying something new. Of course, this is not universally true, but there’s a tendency towards being conservative and holding on to an existing position. And indeed, compared to the previous year we see a 6% combined increase in people who are either definitely not or probably not seeking a new job.
Job Security Rebounds as Certainty, Stability Return 49% 42% 36% 335% 5% 5
14% 9% 5% %
2018
Very secure 40% 36% 6%
33%
Neutral 12% 9% 9%
I'm a little worried 3%
2019
32%
Somewhat secure
I’m very worried
13%
12%
8% 3%
5% 33% %
2020
2021
Job security is as high as it has been in the last five years, jumping by 9 percentage points over last year. It’s important to note that much of the data last year was being collected at the outset of the pandemic, so uncertainty was high.
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What Keeps You Up At Night? Survey participants were asked to comment on the one thing that kept them up at night regarding job security. 605 of the 828 total respondents weighed in, and this is what they had to say…
2021 Category
Percentage
Count
Nothing
15% 14%
92 85
Stability (company) Job loss COVID Stability (industry) Economy
12% 8% 7% 7%
Visit pmmi.org/ppwln to join the Packaging & Processing Women’s Leadership Network to receive information on upcoming events, access professional development resources and learn about ways to get involved.
74 48 44 40
Packaging Job Functions Represented Consultant
5%
Contract Packaging
3%
6% 6%
37 35
Corporate Management
9%
Distribution
1%
Education
1%
5% 4%
28 24
Engineering
27%
Graphic Design
0%
24 21
1%
Marketing/Sales
12%
Staffing/Staff shortage
4% 3%
Human Resources Package Production
3%
Health/Mental health
2%
11
Packaging Technology/Design
11%
11
2%
Opportunities for growth
2%
Purchasing Quality Control
1%
Uncertainty
1%
8
Regulatory
1%
Automation
1%
8
Research & Development
14%
Supply Chain Management
3%
Competition
1%
6
Sustainability & Compliance
1%
Management
1%
5
Structural Design
3%
Warehouse Logistics
0%
Other
4%
Base
816*
Personal Performance Regulations/Policy Undefined Personal Compensation Ageism & continued relevance
Job satisfaction
1%
3
Sustainability
0%
2
Total
100%
Source: Institute of Packaging Professionals 2021 Salary Survey
605
* Note: Demographic questions were not required to be answered, so the Base number is 816 instead of 828. Source: Institute of Packaging Professionals 2021 Salary Survey
Access PMMI’s Free Career Toolkit Prior to the pandemic, studies expected there to be a shortage of two million workers over the next decade. The pandemic further destabilized things. PMMI’s Career Toolkit provides resources to help companies address the critical swhortage of skilled employees and promote awareness of careers in the packaging and processing industry. The toolkit includes: • PMMI Internship Guide
• U.S. Department of Labor Support
• Skills Gap Infographic
• Employer Guide to Hire Veterans
• Career Fair Promotion 101 User Guide
•E ducation & Workforce Development Best Practices Report
Learn more by visiting pwgo.to/5614
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Figure A: Six Pillars of SRM
Alan Day of State of Flux describes SRM as consisting of six main pillars that are all interconnected.
Kellogg and Mars: Views on Supplier Relationship Management A growing body of evidence shows that if CPG companies are excessively fixated on price and price alone, other forms of value are not being capitalized on. WHAT YOU’LL LEARN
Becoming a strategic customer
Redefining ‘value’ in the supply chain
By Pat Reynolds, VP Editor Emeritus EDITOR’S NOTE: Among the many Zoom meetings and presentations I’ve been in on this year, one that got me thinking about a whole new aspect of the packaging supply chain took place in late January. Its title was “Optimizing Your Supply Chain by Improving Supplier Performance and Creating Value.” It was sponsored by F4SS (Foundation for Strategic Sourcing), and the key presenter was Alan Day, Chairman and Founder of State of Flux, a global leader in supplier management technology and services. In recent conversations with Day, he introduced me to a few Consumer Packaged Goods companies where management thinks very highly of the idea that supplier performance is a key to success. In fact, these companies have formalized their efforts and ideas on the topic into a strategy known as Supplier Relationship Management, or SRM. What follows is a synopsis of Day’s January presentation, which he was kind enough to share with me so that I could walk through it with him on the phone on a one-on-one basis. Augmenting Day’s observations are contributions from SRM experts at Mars and Kellogg.
SupplyChainMngmt.indd 44
Please, not another acronym. That was my first thought early this year when SRM first crossed my radar screen. But it didn’t take long to realize that, yes, Supplier Relationship Management is a thing. In fact, it’s a strategy that leads the way to unlocking all kinds of value from suppliers rather than doggedly beating them to smithereens in an effort to cut costs. Fundamentally, SRM is a strategy built on the recognition that obsessing over cost and cost alone is not as beneficial as taking a longterm view that promotes the success of both customers and suppliers. Alan Day of State of Flux, a leading supplier management technology and services organization, describes SRM as consisting of six main pillars that are all interconnected (Figure A). Each is many-faceted and worthy of lengthy discussion and analysis. But Day boils it down to these condensed descriptions:
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• Value—Are you getting risk reduction and innovation from the relationship? Can you measure these things, and is what you’re getting aligned with your fundamental business objectives? When it comes to value, I want to focus on key opportunities here. Leaders in SRM are focusing on growth and innovation, especially in the CPG space. We are also seeing that we need to close the gap in where that value definition is. In the past, “value” generally equaled “price.” But now we’re starting to see it can also mean things like risk reduction, access to scarce resources, joint go-to-market opportunities, and access to innovation. • Engagement—One of the challenges with SRM is that it needs to be business-wide. It can’t be just about procurement. There’s no point in a procurement person saying this supplier is strategic if the business doesn’t treat the supplier that way. And if SRM is going to succeed, there must be support from the C-Suite on down. • Governance—This is where we talk about segmentation, treatment strategies, processes, and building a kind of governance structure to manage supplier relationships. Segmentation is so important. A key is to make sure that, first, you’re focused on the right suppliers and you’re putting effort where effort is required. That’s what segmentation is about. And in your segmentation efforts, don’t just look at criticality and spend. Look at other factors like access to innovation, or even ask yourself if the supplier sees you as strategic. Not much point in you trying to work with them strategically if they don’t see you as a strategic customer. We suggest you map out the org chart for both organizations—yours and the supplier’s—and then you note down the responsibilities on those charts. I understand that some of these relationships are massive, but it’s very interesting once you start mapping out the touch points and seeing what overlaps and what controls are missing. • Technology—This underpins it all, especially in a world of COVID-19, where it’s more difficult to go and visit your suppliers in person. With key suppliers, use technology to enable interactions—governance meetings, evaluations of potential risk, innovations that are surfacing, opportunities, etc. And then in terms of suppliers who rank lower in your segmentation, leverage technology to automate those relationships. So you want to think about how to automate supplier performance in such a way that purely administrative transactions can perhaps be entered by the supplier. Speaking of technology, specifically in the software arena, it’s positively scary to think that 86% of organizations use Excel, the hacker’s favorite tool, as their main tool for managing suppliers. • People—This is all about looking at skill sets and job descriptions. It’s amazing how many people manage suppliers as part of their day job but it’s not in their job description. Too often, it’s not clear who is actually responsible for SRM. So if it gets done at all, it gets done by the seat of the pants. It’s rarely formalized. And it’s certainly not a fulltime job. Now compare SRM with CRM (Customer Relationship Management). When it comes to CRM, you have key account managers. Not only is theirs a full-time job, they get training and full IT support and technology to back them up. And isn’t it curious that if you are in sales at a CPG company, the more years and experience you have under your belt the fewer customers you are assigned to manage, until you might be responsible for just one key account. But if you are in procurement at a CPG company, the more years and experience you have under your belt, the more suppliers you are asked to manage. So you might have
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one person looking after 60 suppliers. That’s a complete mismatch. • Collaboration— This is really an output of the other five pillars. We recommend running a 360-degree review. It’s a matter of understanding how you’re viewed from the supplier’s point of view. Work toward what we call a “joint account plan” rather than a “sales account plan.” That means working in collaboration with your supplier and building lots of trust.
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Leaders, Fast Followers, Followers Day believes that if a company is well established in four of these six pillars, that firm is a “Leader” in SRM. “Fast Followers” are established in three of the six, and firms that are well established in less than three are “Followers.” In the State of Flux Global SRM research for 2020, the twelfth edition of this annual study, only 17% of respondents identified themselves as Leaders, 23% as Fast Followers, and 60% as Followers. The State of Flux research also asks respondents to identify the business drivers making SRM attractive (Figure B). While Cost Reduction/Avoidance remains at the top of the list with 54% of respondents picking it as important, three drivers nipping at its heels are Risk Management/Reduction, Innovation/Continuous Improvement, and Supply Chain Resilience. “The 2020 research was done in May 2020, so the impact of COVID-19 had not really made itself felt,” notes Day. “I’m expecting that Supply Chain Resilience and Improving End Customer Experience will gain in importance when we see the 2021 results.” Michele Van Treeck, Chief Procurement Officer & VP Global Procurement at Battle Creek, Mich.-based Kellogg Co., also believes the pandemic’s impact on the supply chain will rearrange priorities. But she sees other influences, too. “In addition to a year of COVID-19, there were numerous other events and changing trends that impacted buyers and sellers alike, some of which continue into the present. Everything from record-breaking cold snaps and other weather anomalies that disrupted many supply chains, to changes in regional and global trade, regulations, logistics and labor markets that have become the norm,” she says. “After a year like that, I would expect Supply Chain Resilience, Risk Management, and suppliers who can partner to creatively solve problems and support customers and our growth to become more desirable than ever.” Rachael Tomasello, Head of SRM at McLean, Va.based Mars Inc., believes that having an established SRM program in place as COVID-19 rearranged the supply chain paid big dividends. ”We saw incredible growth in our food business and in our pet care business as the pandemic took off,” says Tomasello. “It was our supplier relationships that helped us meet this unforeseen demand. Key suppliers viewed us as a customer of choice because we’d established a relationship of sharing with them our challenges and our goals. Putting in the time and the resources into building those relationships was an investment that really paid off.”
SRM as a philosophy SRM at Mars isn’t viewed as traditional procurement but rather as part of a larger commercial function. “It’s a mindset where we see ourselves as being a
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Figure B: Primary (Top Three) Business Drivers for SRM 2020 – Consumer Packaged Goods 54%
Cost reduction / avoidance
48% 48% 43%
Risk management / reduction
Value
Innovation and continuous improvement Supply chain resilience
24% 21% 17% 14% 11% 11%
Quality and service level improvement
If your goal for SRM is cost reduction, you are leaving many other forms of value on the table.
Achieve responsible business and sustainability goals Improve supply chain efficiency Improve internal customer experience Speed to market Improve end customer experience Regulatory compliance
Source: State of Flux Global SRM research 2020
Data collected: May-June 2020
larger partner in the business as opposed to being responsible for just buying something,” says Tomasello. “So we go beyond just getting the best price for materials or services. We look at value delivery mechanisms, at how best to drive innovation, at how best to deliver on our sustainability goals, at how to ensure that we’ve got the right diversity in our supply base. When you think about driving value from this perspective, you get better results when you work with suppliers whose
SupplyChainMngmt.indd 47
2%
Here’s how respondents from CPG companies ranked business drivers making SRM attractive.
N = 93 (15% of total)
©2020 State of Flux Ltd.
strategies align with yours and you can really leverage the full benefit of their capabilities. “We look at it this way. We’re experts in our core competency of making and selling our products, but we’ve got a massive extended supply chain brimming with experts in what they do. SRM is what allows us to take a really intentional view of what our business strategy is and who we should be partnering with to deliver on that strategy.”
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strategy where “the goal is to purchase from suppliers who represent the diversity of our customer and consumer base. The diverse solutions, perspectives, and innovation that are created with diverse partners enable positive impact on the communities in which we collectively operate, support growth for our businesses, and are viewed positively by employees and consumers alike,” says Van Treeck. She adds that diverse suppliers to Kellogg are independently certified as well.
Listen to the UnPACKed with PMMI Podcast about, among other things, supply chain disruption during COVID-19 and supplier relations management at pwgo.to/7028. Kellogg’s Van Treeck echoes Tomasello’s thoughts on how SRM can support mutual growth as well as be an effective tool to enable supplier diversity. She defines supplier diversity as an integrated business
91
97
92 COMPLETE SNACK PACKAGING SOLUTIONS • • • • • • • •
Accumulation Horizontal motion conveying Incline, belt and bucket conveyors Filling and multihead weighing Bagmaking and casepacking Checkweighing and seal checking Foreign object and defect inspection Controls and information systems
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32 Helping you bring your best products to market. Delivering Results. With Heat and Control, you have a partner with the scale to support your success, the innovation to advance your operations, and a commitment to quality that will help you offer better products for consumers.
Michele Van Treeck is Chief Procurement Officer & VP Global Procurement at Battle Creek, Mich.based Kellogg Co.
That’s why we apply creativity, engineering excellence, and determined perseverance to every project to help our customers get the performance their business demands—whether measured by flavor, efficiencies, sustainability, improvement, or innovation.
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Kellogg appears to be among the CPG companies that are not new to the practice of SRM. According to Van Treeck, it was in place when she joined the firm more than 15 years ago, though she says it has continuously evolved from a performance measurement program (those roots remain) to end to end strategic relationship management. For example, four years ago the firm enhanced its program with the implementation of K Partner Advantage, whose tagline is “A recipe for shared success.” One component that has remained central to Kellogg’s SRM approach is the idea of segmentation that State of Flux’s Day believes is so important. “If you do SRM well, you recognize that supplier partnerships are not one-size-fits-all,” says Van Treeck. “So we work closely with our R&D team and other key stakeholders to segment our suppliers. Based on that segmentation, we have varying degrees of joint business planning, development, operations reviews, and access to our senior leaders and corporate strategies at the highest levels.”
Another believer Also a big believer in the importance of supplier segmentation is Tomasello. “We spend the most resources on suppliers that are going to deliver the most
LOOKING BACK. PRESSING FORWARD. ALWAYS INNOVATING.
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strategic initiatives with us—not for us but with us,” she says. “The other suppliers? It’s more of a business-as-usual relationship.” When asked if she thinks there is a danger to over-obsessing about cost, Van Treeck says absolutely yes. “If we focus only on cost, it means we are without that thing that makes suppliers want to support our business and growth. It’s the same thing that makes us want to partner with those longer-term-focused suppliers that can operate in what we
ly have a role to play,” says Van Treeck. “While it’s early days and much work is ahead, we’ve been able to work with supplier partners to come up with multiple options to meet our goals. It’s not just seeing one solution and buying it off the shelf. It’s more a matter of continuing to have a shared purpose and objective, and collaborating and leveraging each other’s brains, energy, and knowledge as we look to design, implement, and go to market.” PW
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Savings are just the beginning. t PACK See us a Vegas s a L EXPO -2214 Booth C
Rachael Tomasello is Head of SRM at McLean, Va.-based Mars Inc. call the ‘and world.’ As in, ‘quality and safety and service and price and sustainability and supplier diversity and all of that stuff that helps us really be great at serving the needs of our customers and consumers.’ And then think about last year. Because of the SRM program and strong foundation of segmented partners and strategic relationships, we knew which partners were keenly attuned or had shared purpose or interest in which issues or opportunities, we knew who to reach out to, and we knew what we could ask for or who to partner with to create change and impact. We and our suppliers made each other better.” Both Van Treeck and Tomasello think sustainable packaging will be at the very core of SRM for the foreseeable future. “I think sustainable packaging and SRM are intrinsically linked,” says Tomasello. “When we look at our suppliers of packaging materials, the way they operate and how they do business has an obvious impact on our ability to meet our sustainability targets. So if a supplier has an asset base that is not focused on sustainability, and they’re not making any upgrades in that direction, and they’re not getting on board with that agenda, then long term it will be more difficult to do business with us because we have sustainability targets we have to meet.” “Nurturing our planet and functional, sustainable packaging go hand in hand; strategic partners certain-
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AUTOMATION
OEM APPLICATION NOTE
Motion Control Synchronizes Auger Filling Servo-driven auger fillers made by AS&E rely on an advanced motion control platform to synchronize three critical operating parameters, greatly improving accuracy. WHAT YOU’LL LEARN
Motion control software
Filling accuracy
By Pat Reynolds, VP Editor Emeritus A producer of high-end custom filling machines and packaging equipment with a specialization in auger fillers, AS&E has long supplied auger filling components to packaging machinery OEMs that build complete filling systems. But recently the firm introduced the M302L, an in-line twin-auger filling system that includes not just the two augers but also the container infeed and handling components. In other words, a complete filling system that is especially suitable for things like powders, ground coffee, or spices and herbs. According to AS&E President Ken Kunze, it can fill the conventional spice and herb jars found in kitchens across the country at about 100/min. One especially clever bit of engineering that makes the M302L stand out is the way that it elevates the glass or PET jars up into the filling spout for filling. “The motion control platform allows us to not only raise the jar with each fill cycle but also to superimpose an oscillatory motion to the container platform,” says Kunze. In other words, the jar is not just descending but is being shaken up and down ever so slightly as it descends so that the product will settle properly during the fill cycle instead of settling gradually while in the distribution chain. This lets users of the machine accomplish an accurate fill without having to leave the kind of empty head space that consumers so dislike.
The NX Series Controller (left) and the servo motors and drives (right) play a big role in the advanced motion control platform that sets the M302L apart from comparable filling systems.
OAN_ASE_Omron.indd 50
The M302L, an in-line twin-auger filling system, elevates the container with each fill cycle and then vibrates it on its way down so that product can settle.
The motion control platform that Kunze refers to is the Sysmac Studio from Omron. This software was created to give machine developers complete control from a single environment, and it integrates configuration, programming, simulation, and monitoring in a simple interface. As for the machine’s NX Series PLC, that also comes from Omron, as do the servo motors and drives. AS&E was an early adopter when it came to migrating away from augers that are based on clutch and break mechanical components and moving into servo-based augers. The communications protocol over which all the inputs and outputs travel is EtherCAT. The use of advanced motion control means that three critical operating parameters—the downward speed at which the container moves, the speed of the auger screw, and the amplitude or severity of oscillation—can all be synchronized. This proves highly beneficial when it comes to filling spices and herbs. Think of the difference between something super-fine and densely packed like cinnamon compared to something light and flaky like marjoram or basil. As Kunze puts it, “Products behave differently, and with this motion control in place we can fine tune those three parameters with remarkable precision. All the operator does is make a selection on the HMI panel.” PW
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Visit the link below each item for more info.
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AUTOMATION TECHNOLOGY
Servo Drive Advanced Motion Controls’ micro-sized FM060-25-CM servo drive is rated to output 25A continuous and 50A peak. It is suited for mobile and portable applications such as mobile robotics, automated mobile robots, material handling, and more.
Advanced Motion Controls pwgo.to/5997
Solid State Relays
Motors for a Range of Applications
Carlo Gavazzi launches the NRG Series of EtherNet/ IP, PROFINET, and Modbus Controllers and multifunction solid state relays designed for realtime communication with a controller.
Bison Gear’s VFsync line of permanent magnet AC synchronous (PMAC) motors is designed for use within a wide range of applications, including: conveyor systems, bottling equipment, bagging equipment, packaging machines, and more.
Carlo Gavazzi pwgo.to/7049
Bison Gear & Engineering pwgo.to/6086
Distributed Drive System Consisting of a drive, motor, and gear box, the Sinamics G115D system, available from Siemens, is designed for motor- and wall-mounted horizontal motion control conveyor applications.
Siemens pwgo.to/7047
Machine Vision-specific Control Software Beckhoff’s new TwinCAT Vision control combined with its TwinCAT HMI gives users the option of directly integrating image processing into the TwinCAT HMI operator interface.
Beckhoff Automation pwgo.to/7004
Proximity Sensors
Label Inspection System Antares Vision’s AV Print Inspector offers whole-label inspection, including image matching, code reading, and color detection at speeds up to 75 meters/min.
Antares Vision pwgo.to/7003
Automation_Technology_0721.indd 51
AutomationDirect offers ProSense 8mm triple-sense inductive proximity sensors in flush and non-flush mounting options designed to detect ferrous metals up to a distance of 6mm.
AutomationDirect pwgo.to/7048
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Co-pack/Co-man Bets on Beverage Market Transformation Wisconsin-based beverage packer Octopi positions itself to address a rapidly changing beverage market, as well as a shift from bottles to cans, with two canning lines, the newest of which will produce up to 1,200 cans/min in seven sizes. WHAT YOU’LL LEARN
Beverage market transformation
Can filling
Contract packaging/manufacturing
By Anne Marie Mohan, Senior Editor It took Mexico City-born entrepreneur Isaac Showaki 30 years, six types of visas, and multiple jobs in the brewing industry to realize his dream of becoming an American citizen and launching his own highly successful beverage business, Octopi. What he learned, as he shared at a 2020 Tedx Talk—“Failing My Way into the American Dream” (see pwgo. to/7059)—was that overcoming failure not only requires persistence, but also the willingness and imagination to try new strategies. According to Showaki, the lesson is, “Don’t try and try again. Try, and if you get stuck, try something else.” Ever since his first visit to the U.S. when he was four, Showaki was determined to make America his home. After studying at Boston University, he had a string of consulting jobs that cemented his love for the brewing industry and that brought him back and forth to the states. In 2011, while on an investor’s visa, he co-founded the nation’s first Latin craft brewery in the Chicago. Upon leaving the company and after living in the U.S. for 13 years, Showaki was preparing to return to Mexico when he met his wife—an American citizen—and got his sixth and final visa and then his green card. Now able to fully pursue his American Dream, Showaki opened Octopi in 2014 in Waunakee, Wis., just outside of Madison. The business, initially offering contract manufacturing and contract packaging services for beer brands only, started with a staff of six, including Showaki, and shipped 150,000 cases of product its first year. Today Octopi has 150 full-time employees, with 30 open positions, ships up to 3.5 million cases of beverage products per year, or 250,000 barrels (bbls) in brewing parlance, and handles virtually any type of beverage that can be packaged in a bottle, keg, or can. The company is in the process of nearly quadrupling its footprint, with a plant expansion that will house a custom-built canning line. Its current packaging processes include a glass bottling line, a canning line, and a kegging line—all from KHS Group. With its end-to-end services
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Following his bad experiences working with contract brewers, Isaac Showaki built his contract packaging/manufacturing beverage business with a focus on quality and customer service.
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and current and future capabilities, Showaki says Octopi is ideally positioned and “right-sized” to help its customers succeed in the rapidly changing beverage industry.
Bad experiences lead to brilliant business strategy Just as Showaki learned to switch gears in his personal life when confronted with challenges in achieving citizenship, so too did he take a new direction in business after obstacles he faced during his time in Chicago. As Showaki shares, when he started the craft brewery, he knew a lot about the craft beer business, but not much about craft beer production. So, he sought help from the contract brewing industry. What he hoped to find was a dependable partner with expertise, but what he found was “a nightmare.” “There were very few co-packers, and for the ones that were available, their quality was horrendous,” recalls Showaki. “The packaging was not what we wanted, and the pricing was terrible. I thought I was going to be able to choose one co-packer and grow with them, but the way it turned out, I had to scramble for volume and capacity. I was working with eight co-packers at a time getting anywhere from a hundred cases, all the way to 3,000 cases per batch. The co-packers were either too small or too large, and the quality was insane—it was low, low, low.
Visit pwgo.to/7058 to download the PMMI Business Intelligence report, 2021 Beverage Trends Driving Change, for free. “It was like they couldn’t care less about me as a client. They would push me from the schedule, cancel me without telling me, and I had to pay extra. It was just bad experience, after bad experience, after bad experience. And I always said if I had to leave the company, I’d open a good co-packer that focuses on the client and on quality. And that’s where the idea for Octopi started—from having these really bad experiences.” As Octopi’s website explains, the octopus possesses qualities that symbolize the company’s objectives in the world of beverages. Among them is to be the client’s “extra limb,” helping them to grow their business. Continues the site, “Our objective is to tailor our services to our clients’ needs. From producing high-quality beverages for new brands and developing their marketing strategy to guiding existing brands in their expansion plans and distribution selection.” Octopi can create beverage recipes, provide consulting and brand development expertise, source materials and ingredients, and aid with merchandising, warehousing, and distribution, in addition to product manufacturing and packaging. As Showaki explains, Octopi is at “the right size,” or the middle spot. “We’re not small, but we’re not gigantic,” he says. “That’s where we really, really shine. We do whatever the client wants. We have small clients that just want to go straight co-packing. They’ll tell us, ‘We’ll send you all the product and all the raw materials and all the packaging, you just put it together,’ and we’re like, ‘Great.’ And we have larger clients who’ll say, ‘You know what? It’s very hard for us to deal with inventory in our systems or SAP or Oracle. We want you to buy everything for us and just charge us for it.’ And we’re like, ‘Great. We’ll do that for you.’” Another quality of the octopus that Octopi shares is that “just like an octopus, Octopi is in constant motion, adapting to the needs of the industry.” The company adds, “We have the ability to move with market
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A unique lowering element uses vacuum to move cans from the depalletizer to the packaging line below, eliminating the need for changeover for different can sizes. demands and trends to meet the needs of our clients.” The current “trend” in beverages is complete transformation, according to Showaki. “If you ask anyone right now, the amount of innovation that’s coming out of the beverage industry has never been like this before,” he says. “Where 20 years ago, you used to have milk, orange juice, soda, water, and coffee, and that was it, now there are probably hundreds of categories. “I believe the market is going to become far more segmented. The beverage market is still going to grow, but now there will be hundreds of different categories you can play in.” Sensing a decline in the craft beer industry around four years ago, Octopi made significant investments in more processing equipment and capabilities in order to change the focus of the company from being a contract brewer to a beverage co-packer. Today just 30% of its business is beer. Says Showaki, “Right now we do beer, non-alcoholic beer, hard seltzers, ready-to-drink beverages, craft cocktails, carbonated soft drinks, and adaptogens, and we’ve been playing with CBD and hemp products. The only beverages we don’t do are any dairy products or wild yeast fermentation, like kombucha. But we’re willing to tackle any project that’s
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exciting and has good volume. We’re willing to take a look at it and see if we can make it work.” Lately Octopi has attracted the attention of a number of multinationals that want to test the waters—no pun intended—with new products, but don’t want to make multi-million dollar investments unless the products are successful. Octopi’s right-size positioning is ideal for these types of launches.
Investing in the future of cans Another area where Octopi spotted a change in market demand and quickly adapted was the shift in preference for beverage packaging from glass bottles to cans—a trend that only accelerated during COVID-19. “Cans are growing much faster than glass bottles,” says Showaki. “They’re cheaper, and they’re better for the environment, because they’re recyclable. I can ship 200,000 cans in a truckload, versus 81,000 bottles in a truckload. It’s better for freight, better for cost. And then the truth of the matter is, it’s better for the product inside—as long as you have a really good packaging line—because the product is completely enclosed. The can protects against sunlight, and it can keep the pressure very nice if it has a good seam and seal.”
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A sleeve labeler from Krones applies labels to brite cans. Octopi’s first foray into canning was the purchase of a 100-can/min line in 2017 that Showaki says he hoped would serve their needs for a couple of years. The company outgrew the line within six months. In mid-2019, Octopi replaced its first line with a fully automatic canning line capable of speeds from 335 to 350 cans/min, depending on can size. The keystone of the line is the KHS Innofill Can Compact, or Can C, filler, which had only recently been launched by the supplier when Octopi purchased it. “KHS launched the Can C because at the time, they only had very large canning lines, where the seamer was separate from the filler,” says Showaki. “They saw there was a lot of growth for cans, so they engineered a solution for small and mid-sized companies. We got one of the first machines.” The Innofill Can C features the filler, valve manifold, seamer, control cabinet, and paneling in one closed and compact unit. “They created
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their own seamers,” shares Showaki. “We wondered if they could provide equipment with good seaming. But KHS hired someone with a lot of background from a large seaming company, and their seamers are really, really reliable.” The Can C includes 27 volumetric filling heads and six seaming heads. Other features of the machine include a patented purging process that KHS says results in extremely low CO2 consumption. In addition, says KHS, the computer-controlled filling system provides maximum dimensional accuracy; it ensures uniform filling levels and also that headspaces of exactly the same size are created in the cans. The supplier shares that the hygienic design of the Innofill Can C is guaranteed by a gapless bell guide with Teflon expansion joints and bells that are lifted and positioned fully electropneumatically to seal the cans. Product is supplied to the filling stations by a rotary distributor, a design that KHS explains saves space in the filler carousel, making the machine easier to access for maintenance and enhancing hygiene.
Eleven suppliers, one fully automated line Given that KHS was still busy rolling out the Can C at the time Octopi selected it, Octopi and KHS agreed it would be best for the supplier to provide the filler/seamer, with Octopi specifying the rest of the equipment on the line. This entailed working with 10 machinery suppliers and a systems integrator, MCE (Modular Conveyor Express), which provided all the conveying equipment and integrated the line. “The equipment on the line is wonderful. It runs fast, and it’s also very, very reliable,” says Showaki. “But we were dealing with 11 suppliers, so it was definitely a challenge to commission and run the line. Once it began running, it ran beautifully.” The line begins with a Codi aluminum can depalletizer, the DPL1000, which automates the process of removing and stacking slip sheets between cans, pushing bulk can supply layer by layer onto conveying, and indexing cans for feeding into the canning line. The equipment handles either brite or preprinted cans, depending on the customer’s specifications, in four sizes: 12-oz standard, 12-oz sleek, 16oz standard, and 19.2-oz standard. According to Showaki, the 12- and 16-oz sizes are Octopi’s bread and butter, with the 12-oz sleek making up 45% of its business. The company rarely runs the 19.2-oz can, but the equipment on the line affords the option, if needed. From the top of the depalletizer, the cans are transported to a conveyor below through the use of a unique lowering element designed by Codi. Showaki says he first saw the system in use at a Coca-Cola plant. The lowering element uses vacuum to hold the cans, which means no changes need to be made when moving from one can size to another. If the cans are brite and require decoration, they are conveyed to a Krones Sleevematic M1 sleeve-label machine, where a film label is applied, after which the cans are conveyed through a steam tunnel, also from Krones, that shrinks the label to the can. Cans then are conveyed upside down and rinsed with ionized air, after which they are turned right side up, with equipment from Carleton Helical Gear. While the cans are upside down, a Diagraph Linx 8900 continuous inkjet printer adds a date code and batch ID, or other customer-required information, up to three lines. Immediately following cleaning and coding, the cans enter the KHS Innofill Can C. After filling and sealing, the cans are conveyed through a Filtec Intellect inspection system that checks for seal integrity.
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For those products requiring pasteurization, they are then conveyed through a Krones LinaFlex tunnel pasteurizer, after which the cans are dried via a Paxton Products can drying system. The cans then pass through another Filtec inspection system, the 3G, which uses gamma rays to detect the fill level in the cans to ensure the pressure exerted during pasteurization hasn’t caused any of the cans to explode. For secondary packaging, cans are diverted to one of two machines: a PakTech CCA 440 plus plastic can carrier applicator or a cartoner from Design Machine & Manufacturing (DMM Packaging). On the PakTech, Octopi primarily runs four- and six-pack sizes, however Showaki says the company has run dual-packs for special jobs. The machine is also capable of applying an eight-pack can carrier, but Octopi has not run this configuration. The DMM cartoner can run everything from a four-pack to a 24-pk, including six-, 12-, 15-, and 18-ct sizes, for each different can size (12-oz standard, 12-oz sleek, 16 oz, and 19.2 oz). For tertiary packaging, another machine from DMM loads four-, six-, and 12-ct sizes into a tray. Larger sizes, such as a 24-pk carton, can be palletized without the need for a tray. According to Showaki, the majority of the larger packaging run by Octopi is a 12-pk size. A Diagraph TJ1000 inkjet printer follows the tray packer, applying information including a UPC code and the name of the product on the side of the tray. In the final step of the packaging process, trays or cartons are placed on a pallet using a low level-infeed row-forming palletizer the TTL-30 from Top Tier, followed by stretch wrapping on the same machine.
Octopi installed one of the first Innofill Can C models, designed by KHS for smaller beverage companies, which houses the can filler and seamer in one compact machine. Because Octopi tries to accommodate any job thrown at them from a customer, flexibility was key in specifying the equipment for the filling line. According to Showaki, changeover from a 12-oz standard to a 16-oz to a 19.2-oz can size is a fairly quick process, perhaps 30 minutes. Changing over from a 12-oz standard to a 12-oz sleek is a more complex
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affair, taking from one to two hours, depending on the pattern. “We try to run as much consecutively as possible before we have to change back sizes,” he says. “We have a very talented scheduling team that helps us plan efficiently. But, because we say yes to everything, or as much as we can, we do a lot of changeovers.”
A ambitious request for KHS The move to the 350-can/min Innofill Can C line in June 2019 provided Octopi with greatly expanded capacity for can filling, but Showaki says by late 2020, the company had already outgrown this line as well. “We’re squeezing everything we can out of that machine,” he says. “We’re going to start running it 24/7 [up from 24/5].”
See an animation of the KHS Innofill Can C at: pwgo.to/7060 Long term, Octopi is working with KHS to design and commission another canning line, which is scheduled to be operational by Q2-2022. The new line will be supplied entirely by KHS and will be able to run seven different can sizes—the four currently run by Octopi, plus 150-, 200-, and 250-mL slim cans, which Showaki believes are the future of cans. “We told KHS, we’re going to send you an extensive list of packout options, because typically each count size has four to five different packout options. Then, you can multiply that by two,” Showaki says. “We told them, we need all of these, and we need them all to run great, and we need a max speed of 1,200 cans per minute for a 12-ounce can.” The line will be anchored by a KHS Innofill Can DVD 92 computer-controlled volumetric filler, followed by two seamers. One seamer will run 202 lids for 12-oz standard and sleek cans and 16-oz standard cans, while the other can run 200 lids for 12-oz slim cans—with no changeover required. The line will be fully automated from depalletizing to palletizing, and will include a cartoner, tray packer, and packout machine. “The whole line will be automated to do changeovers, line changes, etcetera,” says Showaki. “We want it to run fast, and we want to make sure it’s reliable. We have extra machines to make sure the seam is correct and the packing is correct, because when you get that big, you don’t want to be recalling a batch, because it could be hundreds of thousands of dollars.” The new line will be used in addition to the existing line, with the Innofill Can C supplying product to those customers looking for smaller runs, for example 2,000 to 4,000 cases, and the Innofill DVD producing 10,000 plus cases at a time for customers wanting larger runs.
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Building for the future At the time of Packaging World’s visit to Octopi, the company was in the midst of construction on an addition to its plant that will expand its current footprint from 60,000 sq ft to 160,000 sq ft. The addition will house the new canning line, as well as additional R&D and office space. With the expansion, Octopi says it will be able to grow its capacity from its current 3.5 million cases (250,000 bbls) to 13 million cases, or 1 million bbls, in 2022. The next phase will include the construction of a 200,000-sq-ft warehouse on land Octopi owns across the street from its plant that will allow the company to bring warehousing in-house. At the moment, it uses a third-party provider with 150,000 sq ft of space off-site. In the last five years, Octopi has seen 100% yearover-year growth, and Showaki anticipates the same in 2021. “We’re still growing, we’re still very malleable,” he says. “We’re not set in our ways. There’s a 180-degree difference in what we did last year compared to what we’re doing this year—it’s completely different, but hopefully in a positive way. And that keeps us moving forward and becoming a much better company.” PW
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By Dr. R. Andrew Hurley, PhD, Contributing Editor
Taking the Fifth (Panel): Create an Invitation to Engage tube is placed in the box, but instead of it being a run-of-the-mill sixSeveral times a month, individuals, sided box, it has an extension that allows it to be hung on a peg. This inventors, and startups reach out to me extension provides extra marketing area on the front and increases with questions about the best ways of packaging their really cool the marketing area on the back of the box. These extended marketing ideas. One recent conversation was with Clemson alumna Catherine areas are ideal for new products that don’t fit a single retail category, Chapman, co-founder of BitRip, a digital tape that stores a wealth such as BitRip’s digital tape. The additional space on the packaging of information about the objects it’s applied to. They sell their tape can be used to educate consumers about the product and help the online, but she was looking for ideas for packaging her product for the consumer determine if it solves their needs. For a relatively low cost, retail marketplace. the advertising return of a fifth panel can be quite large. It’s a good question. Digital tape that can be used like a Beyond just marketing the product, a fifth panel can give combination sticky note and QR code doesn’t really fit into one consumers a memorable tactile experience before they even purchase particular retail category. It isn’t actually a sticky note, so it doesn’t the product, providing a kind of unboxing belong in office supplies. Though it’s experience right there in the store. Think of a tape, it doesn’t really fit in with masking, A fifth panel is a relatively fifth-panel package for the newest in soundpainting, and duct tapes. It can store digital simple concept, but it can cancelling headphones. You pick the box up information, but it isn’t software. It is a provide a powerful message. off the shelf, loving that satiny feel. The box completely new concept, and it requires its own unique category. But before consumers That’s why I recommend it to doesn’t say much, but it doesn’t need to. Still, you turn it over, examining all sides, reading can understand it enough to appreciate its many of the people who call the information that’s there. You get back to many uses, they first need to be educated about what it can do. What I suggested to with questions about how to the front and slowly open that fifth panel. that scritch that lets you feel you’re Catherine, in fact, what I recommend to most package the unique products There’s the first to crack the spine of this “book” of those who ask, is to consider fifth-panel they’ve created. The only way (even though you know you aren’t, you packaging. feel like you are). And then, there they are, What is fifth-panel packaging? Don’t boxes to convert passersby into nestled in the velvet-flocked plastic form are have six sides? Which one is the “fifth” one? purchasers is if the packaging the headphones you’ve been waiting for. You What the term really means is “extra smile and trail your fingers across the mattepanel.” It’s a common packaging technique is seen and touched. finish cellophane, imagining these on your for electronics and audio/visual devices. ears, looking like the well-contented, stress-free person sitting in the Remember the days when software was purchased in a box, before pastoral scene on the back of the cover you just opened. Yes, you know downloading gigabytes was a realistic scenario? You’d take the box these will provide all the noise-cancelling bliss you’ve dreamed of. off the shelf, review the front and the back, then open the panel on Fifth panels do require some thought before implementing. Tobias the front. The little circle of Velcro made a slight scratchy sound like Watson, Creative Director at Quad, noted that fifth panels should you were opening a book for the first time—a powerful psychological communicate a level of care and precision. For instance, the thickness factor that bridged a level of familiarity to the excitement of what of your paperboard will be doubled to create that fifth panel, so if was about to be revealed. On those two inside panels, you were you currently use 24-point stock, the panel now becomes 48-point. able to read more about the features and functions of the software, This can provide an additional level of security and protection to a see screenshots and other graphics, and get a feel for whether this package, but it may also present challenges for some folding and was the right software for your needs. The space provided by the gluing operations. extra panel allowed the software marketers that much more area to There is a level of premium-ness that comes with many fifth communicate value without taking up any additional shelf space or panels. With the added space, there’s room to spread out what you overloading the precious primary display panel (PDP) that needed to want to say and places for graphics to show different aspects of the grab your attention first. product. That same added space can also create a feeling of needing A book-style opening is not the only type of fifth panel available. to cram in as much information as possible, thereby rendering an There are also fifth-panel peg hanging boxes, frequently referred to experience that is not only overwhelming, but also overlookable. as “fifth-panel headers.” Typically, they house a primary package, for With a thoughtfully designed fifth-panel package, the benefits instance, a bottle of medicine or a tube of lip balm. The bottle or
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certainly outweigh the cons. Richard Gordon-Smith, Creative Director at Periscope, considers fifth-panel cartons to be an economical “ownable element” of the brand experience. The cost benefit of something like a custom bottle shape can be a difficult decision for most, but the same is not necessarily true for fifth-panel cartons. Brands can leverage this structure to create an interactive experience, engage the senses—through haptics and tactility—and generate physical space. Gordon-Smith described how most brands depend primarily upon visual assets, so fifth panels open up numerous possibilities for creating new dimensions for consumers to engage with the brand at the point of sale as well as during unboxing. Those looking to level-up their cartons to “Applelike” standards may be shocked when the quotes come back for a custom setup box with soft-touch features. While these standards are not practical or affordable for mass grocery items, a fifth panel may provide what you are looking to accomplish for more specialized products. A fifth panel is a relatively simple concept, but it can provide a powerful message. That’s why I recommend it to many of the people who call with questions about how to package the unique products they’ve created. The only way to convert passersby into purchasers is if the packaging is seen and touched. If shoppers are not enticed to pick up a new offering and explore further, they aren’t going to buy it. It’s up to the creator to educate shoppers about the product and invite them to give the new product a try. It can be difficult to educate on just the PDP because it’s small, and the design needs to be simple. Fifth-panel packages provide some extra space to share a bit more information that will hopefully get a few more people to engage with the packaging. Gordon-Smith summed it up perfectly as he remembered an idea renowned branding consultant Alina
Wheeler shared in her book, “Designing Brand Identity”: “Packages are brands that you trust enough to take into your home.” A fifth panel might be the perfect place to put your invitation for consumers to pick up your package and trust enough to take home. PW Dr. R. Andrew Hurley is an Associate Professor at Clemson University. He can be reached at me@DrAndrewHurley.com.
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AD INDEX Search Packworld.com for additional information on any of the advertisers listed or visit their website directly
Medium-Payload Robot Kawasaki introduces the RS013N mediumpayload robot featuring a 13-kg payload capacity, a smaller footprint, a new arm structure, a drive system, and a lighter main unit.
ADVERTISER WEBSITE PAGE
Allfo GmbH & Co. KG. www.allfo.de/en/index.html
54
AmbaFlex Inc. www.ambaflex.com
6
Beckhoff Automation www.beckhoffautomation.com
14
Bell-Mark Sales Company www.bell-mark.com
54
Bevcorp. LLC www.bevcorp.com
47
CRG Automation www.crgautomation.com
21
DEKKA www.dekkaindustries.com
61
Dispense Works www.dispenseworks.com
59
Continuous Inkjet Printer
Duraco www.duraco.com
17
The Videojet 1880 Continuous Inkjet (CIJ) printer is designed to help users proactively prevent manufacturing downtime using advanced, digitally enabled technology.
Econocorp Inc. www.econocorp.com
45
ELPLAST America Inc. www.elplastamerica.com
15
Fibre Box Association www.corrugated.org
31
Heat and Control, Inc. www.heatandcontrol.com
48
High Tek USA hightekusa.com
25
Kawasaki pwgo.to/7052
Eam Mosca Corporation www.eammosca.com 16
ID Technology www.idtechnology.com
Videojet Technologies pwgo.to/6045
5
Institute of Packaging Professionals www.iopp.org
55
Krones, Inc. USA www.krones.com/en/
13
Label-Aire, Inc. www.label-aire.com
49, OBC
Mettler Toledo North America www.mt.com 33 Multifeeder Technology www.multifeeder.com
9
Nercon www.nerconconveyors.com
22
Norwix www.norwix.com
27
Pepperl + Fuchs, Inc www.pepperl-fuchs.com
56
PFlow Industries www.pflow.com
58
Paperboard Spoon
PMI KYOTO Packaging Systems www.pmikyoto.com
Greiner Packaging and Cardbox Packaging have designed a 100% recyclable fold-out paperboard spoon for use in convenience products packaging.
Robatech USA ww.robatechusa.com
Greiner Packaging pwgo.to/6010
11, IBC
Packaging World www.packworld.com
PMMI, The Association for Packaging and Procesing Technologies www.pmmi.org
7 19, 23, 37, 39, 57
Siko www.siko-global.com SKC Films, Inc. www.skcfilms.com
3 32 1
Sonoco Products Co. www.sonoco.com
29
Corrugated Bottle Carrier
Spee-Dee Packaging Machinery www.spee-dee.com
46
Standard-Knapp, Inc. www.standard-knapp.com
58
Uline www.uline.com
12
Blue Box Partners launches ECOGRIP, a corrugated alternative to shrink wrap for multipacking a wide range of bottles.
Vacuum Barrier Corporation www.vacuumbarrier.com
59
Valco Melton www.valcomelton.com
18
Van der Graaf www.vandergraaf.com WestRock www.westrock.com
32a IFC, OFC
ZSG Talent www.zsgtalent.com 19
Blue Box Partners pwgo.to/6009 Connect with a Leaders in Packaging supplier and support packaging education!
www.packworld.com/leaders
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PROFESSIONAL PERSPECTIVE
By Jennifer Leonardson
Brand, Packaging, and Sustainability— Can We All Get Along? Three things to consider for packaging post-COVID-19
Like all packaging professionals, I’ve done a lot of virtual networking with my peers over the past year. One topic that keeps coming up is sustainability. Everyone seems eager to talk about it, but everyone also seems to have a different idea about what sustainability means 1. How do you create new systems and processes that are and what the best solution could be. So, I’ll add my two cents to the more sustainable when consumers also demand individual “fast” conversation. packaging? Eliza Erskine, Owner of Green Buoy Consulting, who speAs a graphic designer who works on package and label design cializes in helping companies with their sustainability plans, says that for clients in the manufacturing and packaging space, I must stay there has been a definite shift from consumer responsibility (like recycurrent and continuously be learning cling efforts) to more corporate responsibilabout the packaging industry. I do this There is no doubt that we need ity. And that shift is starting. Larger corpofor my own business, but also to help my rations that used to say “this doesn’t apply a more circular product lifecycle. to my industry” are now working with their clients. In fact, I recently joined a group of Climate Designers to be more focused With companies like TerraCycle internal departments to manage their susand intentional about designing for the tainability efforts. Erskine goes on to say launching a global recycling environment. that even small- to medium-sized compaprogram that includes recycling nies, which make up 80% of the economy, difficult items like car seats, etc., are following suit. The main barrier to her clients using sustainable materials is the I deal with regulations and compliance this will bring a policy shift with a cost to implement these programs. for all types of industries on projects that 2. With a definite shift from personal range from warning requirements for greater emphasis on accepting responsibility to more corporate respona chemical product label to the brand more items for recycling and a sibility, we may see more regulations identity and packaging design for a new trend toward designing items coming that require using items that food product. It can be complicated when are more sustainable. My challenge, as a limited to the U.S. When a company for the environment. designer, is to address this without every decides to expand their reach outside of product looking the same. Packaging presentation is so important the U.S., there are even more items to consider. Each country requires to the look and feel of a company’s brand. Two popular examples specific regulations for product labels, down to the specific font size of include Apple and Gucci. Will upscale brands like these want to make warning text and icons, not to mention running into size constraints a change to brown paper packaging? It’s important for designers to when adding translations to your product label. find more sustainable design solutions if regulations change but keep These regulations can be confusing and conflicting, and can affect the company’s brand in mind while using new materials. the original design of the product. That’s why a graphic designer 3. According to an article in Fortune magazine, consumers needs to problem-solve and find ways to adjust the layout to fit these want more sustainable options, yet price and brand are still at items on the label, while still staying within the company’s style the top of their list when making purchases. There is no doubt guidelines to stay true to their brand. that we need a more circular product lifecycle. With companies When it comes to sustainability, it has become even more like TerraCycle launching a global recycling program that includes complex. With everyone staying at home more in 2020, we were recycling difficult items like car seats, etc., this will bring a policy shift forced to see how our daily habits contribute to waste. Having more with a greater emphasis on accepting more items for recycling and a things shipped to our homes quickly brought that fact to light. trend toward designing items for the environment. Instead of eating out and having the restaurants deal with the waste, I hope these conversations are happening in the first place, and we got to eat at home and couldn’t help but see the packaging waste I truly believe there is a solution to this issue of sustainability. Small it creates, whether it’s single-use products or through the shipping of changes add up, and by working together, I think we’ll get there. PW consumer goods bought online.
Many considerations
The author, Jennifer Leonardson, is Founder at Oxyjen Design, Principal at The Sourced Collective, and a board member in the IoPP Minnesota Chapter. For information on IoPP, please visit www.iopp.org.
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