First Packaging Asia News September 2015

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SEPTEMBER 2015 sponsor by:

Supported by: Nilpeter, Wink, Eterna, FUMA, BCS, BP Agnati

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Acknowledge by:


Table of Content Indonesia Retail Indonesia Online E-commerce Indonesia Onli Pacprint Bangkok Trends in Flexible Packaging Uteco Installation Composite Film P & G Focus PE Film Recycling Flexible News LabelExpo Europe 2015 Danish PM Visit Nilpeter Strong Growth Propels Maroni Mettalic Color Xeikon Cafe IML North America Consumer Trend Digital Printing a Surefire Cure to the Commodity Mindset Pizza by Slice Packaging ACCA Sada Group Sutherland Packaging Provider Direct Color for Corrugated Digital Printing for Box Packaging Eggs Box Innovation Kiwi MIS

Page 4 Page 6 Page 8 Page 10 Page 17 Page 21 Page 22 Page 23 Page 24 Page 26 Page 29 Page 30 Page 35 Page 37 Page 42 Page 48 Page 52 Page 53 Page 58 Page 62 Page 65 Page 66 Page 68 Page 70 Page 73


Dear Readers, Eventhough at present Modern Retail is only 15% of the whole retail market in Indonesia, it play an important role to growth the local brand. While the E-commerce in Indonesia has started took off very sharply. Almost as high ad in Chine (see page 6) and most of big players are multinational from Japan, German and America – therefore Indonesian government has made a guidance for this E-commerce in Indonesia. Finally there will be a huge investment on the online shop by the local – Matahari group. Meanwhile Lotte make a huge loss in China, while Robinson make flourished in Phillipine. Thailand Packaging and Printing is more advance than Indonesia. They more prepare for the AEC. Their exhibition centre BITEC is international standard, connected to the local commuter. I have the opportunity to attend they Packaging Exhibition which sponsor as well by their government and the exhibitors to invite guest from Asean (26 from Indonesia and 30 from Malaysia). During that time we have the opportunity to visit ICHITAN very innovative beverage company which has made a joint venture with Indonesian company in Surabaya last year. Thailand also ready for the hallal food and has a centre in the University to test and issue the certificate for the hallal food (I will cover for about the it on th next issue) In August I participate in the Bangkok Pack Print (see page 10) and follow the conference about food waste saving and GREAT DESIGN for food products (page 12) Labelexpo Europe will be on end of September in Brussel. This is a big even for label, where now also participated by the wide web flexible packaging as well. They make the smaller machine with the repeat almost the same as of the narrow web 650 mm though the width can be as wide as 1000 mm. During this event we can see all the new innovation from the machine suppliers as well the peripherals such as Color Logic who smartly fill in the shortage of the digital print by provided metallic colors by Process Inks (page 35). Xeikon see the opportunity of Digitall Printing in the Packaging Market and arrange a Xeikon Café for Folding Carton. IML in America has now become the trend (page 42). Indeed Digital Printing for Packaging has been accepted by the Brand owner and we must adopt the market trend and change our mindset to follow the trend. We have to change our way of business now with the Megatrend happened with online market, short run job, JIT delivery. If we still doing business today just like yesterday – most probably we will not in the business anymore tomorrow,. The corrugated technology has a huge leap by serving broaden industry – making a better and more efficience paper – replacing duplex. Agnati has come with the machine that requested by SADA group how to overcome the very tight profit business in the packaging to go to “blue ocean” (page 61). While the in the US several independent corrugated come with an idea of making “That Box” (page 70). Happy Reading Tuti Buntaran


Indonesia’s Retail Indonesia's retail landscape is undergoing profound change as modern outlets increasingly replace wet markets and independent small shops. High consumer confidence, an expanding middle class and rising personal incomes have made private consumption the most important component of Indonesia's economy and attracted numerous global retailers. Partnerships among banks and the retail sector to offer incentives and consumer credit are also fuelling spending. While rising costs and increasing competition in the main urban areas are putting pressure on margins in the retail sector, investors can tap new growth potential in regions that are still under-served by modern outlets and shopping malls, but where demand is growing quickly.

A major geographic shift is taking place in Indonesia's retail landscape, with the centre of attention increasingly moving from Greater Jakarta and Bali's main tourist areas to regional capital cities across the country While fluctuating strongly from one month to another, retail sales have generally outperformed GDP growth in recent years with double-digit annual increases. Central bank data show that sales at 650 retailers surveyed across the country declined in January 2014 from the previous month, but were up almost 25% on the year. In terms of goods categories, information/communication equipment and other household equipment have seen the greatest increases since 2010, clearly benefitting from the rising living standard enjoyed by middle-class city dwellers. Indonesia Real Retail Sales Index (Base year 2010 = 100)

Modern Retail Spreading to The Regions A closer look at the Bank Indonesia figures reveals that retail sales grew at a modest 7% in Jakarta between January 2013 and January 2014 and declined by 13% in the Balinese capital of Denpasar. By contrast, sales over the same one-year period rose by 33% in Bandung, 31% in Semarang and 23% in Surabaya. These three Javanese cities were followed by North Sumatra's capital of Medan (+17%) and North Sulawesi's Manado (+14%).

momentum in consumer spending, opens up a host of opportunities for foreign-based franchisers and retailers to set up shop across Indonesia and build on their brand value and competency in running outlets.

Similarly to the capital, the traditional local markets that were once the centre of retail activity are being increasingly replaced by efficient hypermarkets and mini markets, with the latter being particularly popular among Indonesia's young population The expansion of modern retail, coupled with the overall growth Carefour Kuta Store, Bali


Leading Leading retail retail companies companies areare expanding expanding their their operaoperations tions in the in the Indonesian Indonesian market: market: • •PT. PT. Matahari Matahari Putra Putra Prima, Prima, which which owns owns thethe Hypermart Hypermart chain chain , the , the Foodmart Foodmart chain chain andand Matahari Matahari department department stores, stores, opened opened 39 new 39 new stores across country in 2013, compastores across thethe country in 2013, TheThe company had a total store count of 222 in more than ny had a total store count of 222 in more than 60 cities at the of 2013 is committed 60 cities at the endend of 2013 andand is committed to further expansion to further expansion

PT Trans Retail Indonesia, which acquired • •PT Trans Retail Indonesia, which acquired ownership of Carrefour Indonesia after full full ownership of Carrefour Indonesia after acquiring missing stake from acquiring thethe missing 60%60% stake from former French parent company Carreformer French parent company Carrein January 2013, continued fourfour S.A.S.A. in January 2013, continued its its expansion in 2013 at the of the expansion in 2013 andand at the endend of the year 85 Carrefour hypermarkets in 28 year hadhad 85 Carrefour hypermarkets in 28 cities, making it the country's leading cities, making it the country's leading hypermarket operator. hypermarket operator.

PT Hero Supermarket, similar owner to Giant • •PT Hero Supermarket, similar owner to Giant hypermarkets, Starmart mini-markets hypermarkets, Starmart mini-markets andand thethe Guardian chain pharmacies, opened Guardian chain of of pharmacies, opened a a 77 new stores in 2013. Diversify its business netnet 77 new stores in 2013. Diversify its business opening of Indonesia's IKEA store. withwith thethe opening of Indonesia's firstfirst IKEA store.

South Korea's Lotte Group is increasing • •South Korea's Lotte Group is increasing its its presence in Indonesia hypermarkets, presence in Indonesia withwith hypermarkets, wholesalers, duty shops departwholesalers, duty freefree shops andand department stores, after entering market ment stores, after firstfirst entering thethe market in October 2008 through takeover in October 2008 through thethe takeover of of 19 stores from PT Makro Indonesia. 19 stores from PT Makro Indonesia.

Mini-Markets Making Their Presence Felt Jakarta today boasts more than a hundred shopping malls. While malls with their hypermarkets and department stores steal most of the attention and account for a major share of overall sales, mini-market franchises are becoming an important factor and are claiming an increasing market share in the grocery segment. Consumers appreciate mini-markets for their convenient location and long opening hours. Like their larger-shop rivals, the leading mini-market chains Alfamart, Indomaret and 7-Eleven have all announced plans for aggressive expansion to grow

their business beyond Java. More nimble than supermarkets and hypermarkets, mini-markets will in many cases spearhead the move of modern retail into towns and cities up and down the country.

Food and Fashion to Benefit from Consumer Frends By 2020, Boston Consulting Group predicted, the MAC population would almost double to 141 million. Other studies have come to similarly upbeat conclusions about the country's growing consumer class and rising per-capita income, which are bound to boost discretionary spending. In the largest cities, growing purchasing power, coupled with the young average age of Indonesia's most-courted consumers, should benefit the fashion segment in particular. Hence it is hardly surprising that newcomers are still entering that market. Japan's Fast Retailing Co opened its first four stores of fashion retailer Uniqlo in Indonesia between June 2013 and April 2014, while Sweden's Hennes & Mauritz inaugurated its first of several planned Indonesian outlets in October 2013,

through local franchisee PT Hindo The spread of modern retail into the regions, on the other hand, should see the food and beverage segment reap most of the gain initially. This is because living standards in the secondary cities still lag far behind those in the urban centres, and lower-income consumers tend to spend a larger portion of their earnings on groceries.

Online Retail Not Pulling Its Weight Internet shopping is considered to be under-utilized in Indonesia even though major brands such as Carrefour Indonesia offer products on their websites at the click of a mouse. In the past, this was blamed on e-commerce security concerns and inadequate infrastructure. However, as consumers are beginning to feel more at ease with online banking and as internet connectivity is becoming both more robust and more affordable, online sales are a major new opportunity that retailers cannot afford to pass up. Rising inflation, a depreciating rupiah and slower GDP growth reflected a harsher macro-environment in Indonesia in 2013, which could very well take the

shine off retail sales even in 2014. The sector also has to deal with intensified competition and rising costs from salaries, rents and utility bills. In the long run, however, there can be little doubt that favourable demographics, rising personal incomes and plenty of untapped potential make the world's fourth-most populous country an attractive home for retail investment. Global Business Guide Indonesia - 2014


Indonesia E-commerce E-commerce boom triggers transformation in retail logistics Eventually emerging markets may surpass mature markets in pure volume owing to the size of their population. E-commerce gives retailers the potential to reach new customers that physical locations cannot, particularly in remote, rural locations. Global online sales grew 14.8 percent per annum from 2007 to 2012 compared to total retail sales, which increased by just 0.9 percent during the same period By 2017, the highest rates of B2C e-commerce sales growth are predicted to occur in Indonesia, China, India and Mexico

B2C E-Commerce Sales Growth in Asia Pacific, 2011-2017 % change 2011 2012 2013 2014 2015 2016 Indonesia 104.5% 85.0% 71.3 % 45.1 % 37.2 % 26.0 % China 103.7 % 94.1 % 65.1 % 51.2 % 30.6 % 22.6 % India 47.2 % 39.7 % 34.6 % 27.1 % 23.7 % 18.2 % South Korea 17.6 % 6.0 % 6.9 % 9.3 % 8.3 % 8.2 % Australia 11.0 % 10.05 % 6.0 % 5.7 % 5.1 % 5.0 % Japan 27.1 % 13.2 % -7.2 % 7.1 % 6.7 % 5.6 % Other 23.9 % 12.4 % 12.7 % 12.0 % 11.9 % 11.0 % Total Asia Pacific 37.2 % 32.8 % 23.1 % 29.0 % 20.9 % 16.7 %

In the U.S., it is estimated that 30 percent of industrial big box warehouse demand is correlated to e-commerce. Retailers continue to open large e-fulfillment centers in close proximity to major markets; they are also opening mid-sized warehouses operated by third-party logistics providers in secondary markets to meet same day delivery needs across the country.

2017 22.0 % 18.3 % 16.6 % 7.3 % 4.2 % 5.0 % 10.2% 14.2 %

Indonesian Government to Launch E-Commerce Legal Framework This Year, In an effort to create a more conducive climate for the e-commerce industry, the government plans to issue a set of regulations called the “e-commerce roadmap” in the next three to six months. The roadmap will provide clear guidelines regarding logistics services, payment gateways and tax —among others — for the e-commerce industry, Coordinating Economic Minister Sofyan Djalil stated. Under Presidential Decree No. 39/2014, the government includes e-commerce among the

industries closed to foreign investment, requiring e-commerce businesses to be wholly owned by local players. The regulation initially aimed to boost the growth of local e-commerce players and prevent foreign players from taking advantage. Acquisitions of key Indonesian e-commerce players have occurred over the last few years, such as that of dealkeren.com by US-based LivingSocial Inc. and Disdus by US-based Groupon. Indonesia has one of Asia's biggest untapped e-commerce markets which is only recently


“Online commerce commerce is a US$100 is a US$100 billion billion opportunity,” opportunity,” drawing drawing major major investors investors in search in search of the of the next next“Online Alibaba Alibaba Group Group Holding Holding Ltd. Japan's Ltd. Japan's SoftBank SoftBank CorpCorpexplains explains LippoLippo Group Group representative representative JohnJohn Riady. Riady. MatahariMall will offer will offer the the largest largest selection selection of of late late last last year year led a led$100 a $100 million million investment investment in inMatahariMall Indonesian Indonesian online online marketplace marketplace Tokopedia. Tokopedia. goods goods spanning spanning fashion, fashion, beauty, beauty, electronics, electronics, home, home, groceries, groceries, books, books, entertainment, entertainment, and and more, more, according to the tofirm. the firm. RiadyRiady claims claims MatahariMall MatahariMall is is Indonesia’s Indonesia’s LippoLippo Group Group announced announced the launch the launch of ofaccording first first online-to-offline online-to-offline ecommerce ecommerce site site in in its massive its massive ecommerce ecommerce venture venture MatahariMall MatahariMall – the– thethe the Southeast Asia.Asia. This means This means that that people people can can buy buy online online version version of one of one of the of the nation’s nation’s biggest biggestSoutheast stuff online, thenthen waltzwaltz into a into Matahari a Matahari department department mid-priced mid-priced department department stores. stores. LippoLippo Group Group is one is onestuff online, to pick to pick up the upgoods the goods later.later. of of the the archipelago’s archipelago’s largest largest and and richest richeststorestore conglomerates, conglomerates, and and has invested has invested US$500 US$500 million million into the intoinitiative. the initiative. LippoLippo plansplans to spend to spend the money the moneyOnline Online shopping shopping in Indonesia in Indonesia firstlyfirstly start start with with accessories or tertier or tertier goods. goods. NowNow the the online online over over the next the next two to two three to three yearsyears in hopes in hopes that that the theaccessories shopping has reach has reach premier premier goods goods eventhough eventhough site can site can create create US$1US$1 billion billion in sales. in sales. The firm The claims firm claimsshopping the volume still not stillas not significant as significant as in as China in China (three (three this would this would also also make make MatahariMall MatahariMall the the largest largestthe volume our state our state budget budget - $152 - $152 billion). billion). Last Last year year ecommerce ecommerce site insite theinnation, the nation, and that and it that would it would be betimestimes Indonesian online online has reached has reached US$ 12 US$billion 12 billion and and on on its way its way to becoming to becoming “the “the Alibaba Alibaba of ofIndonesian expected to reach to reach US$ 20 US$ billion 20 billion this year. this year. PricePrice is is Indonesia.” Indonesia.” LippoLippo hopes hopes MatahariMall MatahariMall will bring will bringexpected of the of key the major key major decision decision for the for shopper the shopper on on the the firm’sfirm’s consumer consumer retailretail division division (online (online and andone one this e-commerce in Indonesia. in Indonesia. If theIfprice the price doesdoes not not offline) offline) to US$25 to US$25 billion billion in revenue in revenue afterafter five years. five years.this e-commerce has significant different different thanthan the off theline off shop, line shop, the the 20 percent 20 percent of this ofisthis expected is expected to come to come fromfrom online onlinehas significant shopper shopper prefer prefer the off the line off line shop.shop. MostMost the on the on retail.retail. shopping shopping now now still dominated still dominated by Social by Social Media Media (see (see chartchart below). below).


Indonesia Online:

A Guide to E-commerce While currently, e-commerce only accounts for less than one percent (worth ~US$2 billion per year) of Indonesian retail spending, analysts believe that the country’s fast growing middle class and proliferation of smartphones will soon raise that share to eight percent (worth US$8 billion) in just a few years. If that scenario were to happen, then Indonesia’s e-commerce market would be the largest in Southeast Asia. Currently, e-commerce sales in Indonesia are admittedly somewhat low, but sales are expected to triple by 2016. Like most countries, the top category for online shopping is clothing and apparel. In 2014, around 60 percent of online shoppers bought items in this category. Interestingly, 27 percent of all e-commerce transactions occurred via social media. In a counterpoint to this dispiriting news, according to an analysis conducted by the Boston Consulting Group late last year, 74 million Indonesians live in households that spend more than US$200 per month – this number is predicted to grow to 141 million by 2020. Furthermore, according to SingPost, a global logistics firm, there will be 20 percent year on year growth in internet users through the year 2016. An additional factor contributing to the growth potential of e-commerce in Indonesia, is the fact that more and more people are becoming too busy to shop in traditional stores and do not want the headache associated with navigating the notoriously busy roads in order to reach the stores, instead preferring the products to be brought to their chosen location. Companies like Lazada, which is known as “the Amazon of Southeast Asia”, are already operating within Indonesia. Lazada, which has been in the country since 2013, became the largest business to consumer site in Indonesia during 2014 (taking the top spot from Amazon). The company reportedly averages around 6.5 million views a months. Maximilian Bittner, chief executive of Lazada, has stated that he believes “Indonesia is predestined for a really massive explosion in e-commerce.” According to Lazada, Indonesians spend on average 181 minutes on their smartphones a day – the longest time in the world. Other sites operating in the country include Alibaba (with 3.9 million views/month) and eBay (with 2.2 million views/month). It is unclear if Amazon has any future plans to invest into Indonesia with a physical

presence – the company tending to prefer a light footprint for its operations in much of Asia. Tokopedia, a local company, is one of Indonesia’s top consumer to consumer marketplaces; it has reportedly received over US$100 million in funding from venture capitalist firms Softbank and Sequoia Capital. Many are hopeful that this sort of large cash injection will spur further investment into other e-commerce businesses in Indonesia. Said Tokopedia CEO and co-founder William Tanuwijaya, “If we can convince and carry the level of the company to match what the investors expect, it will provide them with the confidence to put money into other [local] startups.” Another problem that companies must overcome if they wish to operate in the e-commerce space in Indonesia is finding a way to deal with the country’s poor shipping network. As a result, companies like Lazada have essentially created their own private delivery systems by hiring


hundreds of motorbike and truck drivers to deliver their packages. Additionally, due to poor roads, unclear addresses, and a lack of good maps, it is often difficult to actually physically deliver the packages.

lose their money, or have their information stolen. It is thus incumbent upon companies operating in the region to be open and honest about their policies and to ensure that they provide a high level of customer service.

An additional area that companies must work on is the lack of trust that many people still have with regards to buying products online. This is an issue that e-commerce companies have had to grapple with throughout Southeast Asia. The populace worries that they will not receive the products that they have ordered, that they might

A number of companies have arisen in order to fill the vacuum in the epayments space, these include Doku and Veritrans. In 2014, Doku processed US$520 million in transactions, a whopping 30 percent increase over 2013. Edward Barbour-Lacey

Indonesia Tightens Controls On Foreign Internet Investment The Indonesian government has tightened restrictions on foreign companies trying to enter its growing Internet market. It has also tightened rules on foreign ownership of the country's key resources and finance industries. With a population of roughly 250 million and a rapidly growing middle class, Indonesia has become Southeast Asia's largest Internet market due to the spread of smartphones. Internet-based business is expected to expand rapidly, but if the introduction of advanced technologies from

foreign companies and ample momentum, it could hinder growth.

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According to research firm GfK, 21 million smartphones were sold in Indonesia in 2013, up 50% on the previous year. An executive of the Indonesian subsidiary of Japanese online retail giant Rakuten, which entered the country in 2011, said that sales promotion via smartphones has been increasingly effective through collaborations with the free chat app Line and other companies.


PACK PRINT INTERNASIONAL 2015! Delivering Better Business Beyond Borders

PACK PRINT INTERNATIONAL is one of Southeast Asia's premier exhibitions for the packaging and printing industries, providing a unique platform for manufacturers of packaging and printing machinery, processing companies, designers and suppliers to display their products to a targeted audience. The exhibition attracts visitors from all over the region, including India and Oceania, and will present excellent opportunities for them make informed investment decisions for packaging and printing equipment and technologies. Messe Düsseldorf combined with the influential role and support of the Thai Packaging Association and Thai Printing Association held the event in BITEC, Thailand's first purpose-built exhibition and convention centre with top quality, multi-purpose and multi-functionality state-of-the-art features. The exhibition halls are column-free and able to accommodate events of up to 26,000 sqm. BITEC is a short 15 minutes' drive from the Suvarnabhumi International Airport. It is also well-served by existing and ongoing expressway projects. It also offers easy access to Bang Na Station (Bangkok's BTS Skytrain network) connecting BITEC to major hotels, shopping and entertainment establishments in the city. The event officially opened by Guest of Honour, Ms Atchaka Sribunruang, Minister for Industry, the occasion was also graced by Ms Pimnara Jiranithitnon, President, The Thai Printing Association, Mr Chaivudhi Pung-

thong, President, The Thai Packaging Association, Ms Jaruwan Suwannasat, Director, Exhibition and Event, Thailand Convention and Exhibition Bureau and Mr Gernot Ringling, Managing Director, Messe Düsseldorf Asia, alongside some 200 guests from the government agencies, diplomatic community, industry experts and visiting delegations from Philippines, Malaysia, Vietnam, India and for the first time, Mauritius. In her opening speech, Ms Atchaka Sribunruang emphasized the strategic locale of both synergistic trade exhibitions in Bangkok, Thailand, which comes at a time where the kingdom’s manufacturing sectors are heading on an upward curve – reflected in the expansion of Kingdom’s Gross Domestic Product (GDP) at 2.80 percent in the second quarter of 2015 over the same quarter of the previous year.


PACK PRINT CONFERENCE The Food and Beverage Packaging Conference, organized by Food Focus Thailand and Department of Packaging and Materials Technology, Faculty of Agro-Industry, Kasetsart University held on 26 August, welcomed a more-than-expected turn out of over 250 delegates and users from the F&B industry, including R&D specialists from F&N United, Ichitan Group Public, Atlantic Foods, Ajinomoto, Reckitt Benckiser and Yan Wai Yun Corporation. The full day seminar opened with a comprehensive line-up of topical subjects related to the packaging industry, particularly in food packaging. The Kingdom's food processing sector is a heavily export-oriented one with more than 50% of production sold outside the country. Thailand exported 438,884 tons of ready-to-eat (RTE) food and food ingredients valued at US$1.020 billion in 2012 and this trend will continue to soar. Although most processed food products are meant for international distribution, domestic consumption of processed food continues to grow due to changes in lifestyles, which have since brought about an increased demand for convenient food options, as well as active and smart packaging. Consumption of prepared meals in Thailand is estimated to rise at an annual rate of 9.8%, with consumer preferences shifting from non-processed foods to processed

packaged food – making light, convenient and easy-to-use packaging essential. Aligning seminar topics to the trends of the market, reputable industry speakers, Ms Kevalin Wangpichayasuk from Kasikorn Research Center, Assistant Professor Dr. Ngamtip Poovarodom from Kasetsart University, representatives from Ajinomoto and Tetra Pak and award-winning Mr Chatchai Rabeabtham from Yod Corporation presented on topics ranging from current consumption and trends in the food & beverage packaging, to Food Contact Materials (FCM): Safety and regulations, green and eco-friendly packaging, sustainable and biodegradable packaging concepts and the difference packaging makes in generating sales leads.

The SPICE STORY according to Rene is one of the success packaging. It really can turn out the spice from traditional market to become worldwide commodity by its simple and elegan packaging. It sells well in Europe. Another brand is Gourmet Market a “Bravo” concept.


The Role of Packaging in Reducing Food Waste Survey Survey done done by by German German associaassociaThe latest industry studies tiontion of fruit, of fruit, vegevegetable table and and potato potato estimate that as much as producers producers in in 2013 2013 “Over “Over 30%30% of offresh freshfood food becomes becomes waste waste Of food produced Globally while while only only 10%10% of of for human Consumption is packed packed food food ends ends up up as as wasted every year. waste” waste” butbut conconsumers sumers notnot really really Mr Mr Stefan Stefan Glim Glim (CE(CE Director Director of of FPE) FPE) give give a a realize realize it it according according to to thethe Sealed Sealed Air Air very very good good view view of of you’re you’re thethe populations populations Research Research in in 2014 2014 “89% “89% of of shoppers shoppers think think changing changing – move – move toward toward urban urban area. area. In In packaging packaging waste waste is more is more harmful harmful to to thethe 1990s 1990s only only 20%20% of of population population in the in the urban urban environment environment than than food food waste” waste” Therefore Therefore wewe city. city. In the In the 2000s 2000s it has it has changed changed to 50%. to 50%. And And must must change change customer customer perception perception of (1) of (1) WeWe willwill increase increase to 60% to 60% by by 2050 2050 – therefore – therefore wewe do do notnot want want (more) (more) packaging packaging (2) (2) Wasting Wasting must must seesee where where thisthis people people shop, shop, Packaging Packaging food food is bad….but is bad….but I don‘t I don‘t waste waste that that much much play play a very a very important important rolerole to fulfill to fulfill their their needs needs and and engage engage consumers consumers emotionally emotionally by by as as wellwell as as to to reduce reduce food food waste. waste. Roughly Roughly convey convey thethe message message that that OUR OUR PACKAGING PACKAGING oneone third third of the of the food food produced produced in the in the world world willwill (1) (1) reduce reduce for for Climate Climate Change Change impacts impacts for for human human consumption consumption every every year year — — (2) (2) Is part Is part of of thethe solution solution to to reducing reducing food food approximately approximately 1.3 1.3 billion billion tonnes tonnes — gets — gets lostlost waste. waste. or wasted” or wasted” (UN(UN FAO FAO 2011)) 2011)) OnOn a global a global scale, scale, thethe cost cost (based (based on on 2009 2009 producer producer prices) prices) of of food food wastage wastage is 750 is 750 billion billion USDUSD Approximately Approximately 64%64% of all of all mangos mangos in Kenya in Kenya areare lostlost every every year. year. “The “The UNUN FAO FAO hashas said said food food production production willwill need need to to increase increase by by 70%70% by by 2050. 2050. 50%50% of this of this could could come come from from reducing reducing food food waste.” waste.” Janez Janez Potocnik, Potocnik, EU EU Commissioner Commissioner for for thethe Environment. Environment.

MILK MILK - Just - Just 1.5g 1.5g of alufoil of alufoil in in a beverage a beverage carton carton (28g) (28g) enable enable 1 litre 1 litre of of milkmilk to to be be transported transported and and stored stored for for several several months months without without refrigerrefrigeration. ation. Plaited Plaited yeast yeast bunbun - PP- PP filmfilm bag bag instead instead of paper of paper bag bag – less – less dehydration dehydration 0,8 0,8 % food % food waste waste instead instead of 11 of %. 11 %.

FOOD VALUE CHAIN:

PRODUCTION

HANDLING & STORAGE

PROCESING & PACKAGING

DISTRIBUTION & MARKET

CONSUMPTION


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How to get into the consumer’s heart?

... by showing and leading the target groups into The Aromaticatic Experience.


Retails Asia

Lotte China Loses a Trillion

Reports from Korea suggest Lotte Group has lost more than 1 trillion won (US$853 million) in China in just three years. Data assembled by CEO Score shows Lotte China made heavy losses between 2011 and 2014 as South Korea’s fifth largest company struggled to understand the Chinese consumer and build market share. Last month, Lotte said it would close four loss-making stores in its Mainland China network – all in in East China’s Shandong Province. Lotte is said to be losing market share in Mainland China unable to differentiate itself in the middle ground between local retail chains and the growing power of online retailers such as Alibaba and JD.com. CEO Score’s data shows the losses are growing, not narrowing. It started with 92.7 billion won in 2011, reached 250.8 billion won in 2012 and a massive 580.8 billion won in 2014. Lotte Mart has 120 stores in China, 116 in Korea, 39 in Indonesia and 10 in Vietnam. The company is family owned with the leadership locked in a bitter power struggle and two brothers compete to take control from their 93 year old father.

Robinsons Philippines Flourishes Robinsons Retail Holdings, the Filipino retail group, has reported a 25.9 per cent increase in first half net income. Strong sales across its many chains, together with newly acquired operations, AM Builder’s Depot and Chavez Pharmacy, all contributed to the first half sales of P1.95 billion (US$42.108 million). Total sales rose 11.8 per cent to P41.35 billion (US$893 million), with a net gain of 219 stores year on year. Same store sales grew 2.9 per cent. By sector, Robinson’s derives 49 per cent of its sales from its grocery division and 15 per cent from department stores, 11 per cent from DIY, 10 per cent from drugstores, nine per cent from specialiaty stores and six per cent from convenience stores. “Sales from our consumer electronics and appliance online business through a marketplace have been promising, which confirms that there is a growing market for this business,” she said.

Indonesia Retail Sales Surge in June Indonesia’s retailers appear to be among Asia’s most pessimistic. One month ago after government data showed a 19.8 per cent rise in May retail sales, the 700 retailers polled to create the index said they expected sales growth would slow in June. In August the government has released revised figures showing a 20.6 per cent increase in May – and a massive 22.9 per cent rise in June, only just behind April’s 23.1 per cent. In this month’s poll, they said they expected sales growth to slow in September as demand returned to normal after the Ramadan festivities. The Bank of Indonesia said June’s Indonesia retail sales increase was largely attributable to greater demand for food, beverages and tobacco, in line with increased consumption during the Muslim fasting month of Ramadan.


Matahari has Strong Half Foodmart Primo. The store, located at the new MaxxBox Lippo Village in Karawaci, Tangerang, opened last June. The creation of the Foodmart Primo concept is based on the company’s continuing observation and analytical studies on Indonesian shopping trends, showing an upward trend of middle class consumption throughout the region.

Indonesia’s PT Matahari Putra Prima (MPPA) says its first half year sales rose 6.6 per cent on the back of new stores. Matahari has continued with a strong focus on upgrading its store formats, rolling out its new G7 format with brighter, more upmarket store designs and increased range. It also opened the first of its new Foodmart Primo format stores during the half year. In the next six months Matahari will open the first of another new concept – a SmartClub wholesale store. Operating profit surged 29.4 per cent in the half (excluding extraordinary items) as the retailer continued to improve its infrastructure, boosting internal efficiencies and developing a solid platform for future growth. Indonesia’s PT Matahari Putra Prima has opened the first of a new upmarket grocery retail store format. The multi-format modern retailer, which operates Hypermart, Foodmart and Boston Health & Beauty chains, has branded its new offer

Foodmart Primo will be positioned strategically in key areas in several metropolitan Indonesia cities. Matahari says Foodmart Primo customers will experience modern supermarket format improvements related to store layout and ambience as well as product selections with a higher focus on providing a more enjoyable shopping experience, quality premium products and convenience. Director of Foodmart Operations, Dave Rao said: “With the opening of MaxxBox, we have the opportunity to open our first “upmarket” store under the Foodmart Primo brand. Primo means top quality. “Foodmart Primo is a professionally designed an upmarket store with additional features such as ready to eat section, “boutique” bakery and wine station under one roof. The supermarket offers a high level of local and imported goods to serve the growing international community in Lippo Village,” said Rao. “A wide range of local, imported fruits and vegetables are available daily in addition to a good selection of beef, poultry, seafood and delicatessen.”


1. Protection for delivery. A package protects a product—and itself—from the rigors of shipping, distribution, storage, and use. A consumer pays for a product and expects to receive the full value. Packaging plays a crucial role in delivering that value: • Hermetic seals that completely contain the product, protecting it from spilling or contamination from the environment. • Toughness that prevents breaching of package walls by outside physical forces or abuse. • Tamper-evident features that help ensure the product integrity for use. • Bundling multiple objects, including packages, together for transport or sale. • Opening and reseal features that facilitate multiple package accesses or uses while securely containing the product. 2

.

Protection for processability. The objective is to minimize waste through the entire chain of production and use of a product. A successful flexible package should be able to: • Customize the force required to slide the packaging material or the package against other materials. • Be optimized for packaging machine ease of operation or to prevent items from sliding relative to each other in distribution. • Customize package sealing response to a wide variety of package machine sealing methods and conditions, permitting fast, dependable production of sealed packages. • Withstand post-fill processing conditions such as freezing temperatures, high heat, humidity, and radiation sterilization.

3. Utility for consumer containment, freshness, and tailored transmission. Every product has its own needs for freshness and barrier properties. A flexible package can: • Provide tamper-evident features that help ensure the product integrity for use—or that it’s even still there. • Offer opening and resealing features that facilitate multiple package accesses and uses while securely containing the product. • Be able to customize the rate of transmission of gasses through the walls of sealed packages. • At the high-barrier end of the spectrum: Provide extremely low rates for long-term storage of sterilized food at room temperatures or medications in humid environments.

• At the low-barrier end of the spectrum: Provide very high rates for breathable produce packages, with the ability to create customized levels for individual produce items. • Allow controlled venting of steam released in microwave heating to cook product while maintaining product moisture and avoiding leakage. 4. Utility for consumer-added functionality. Flexible packaging technologies have progressed to improve product storage and add preparation functions. • Shelf life: Vacuum-packed food or personal items for long-term storage. • Microwavability: Food that can be warmed or heated thoroughly in the package. • In-package microwave “cooking”: Packages that can “cook” a product in microwave ovens include those for popcorn, brown-and-crisp sandwiches, and freshly made pasta dishes. • Ovenability: Retail packages that cook roasts, bake whole turkeys, etc. in conventional ovens. 5. Motivation at retail. Packages help motivate purchase decisions by presenting the product and its desirable attributes to consumers in a way that the product both stands out from the rest and engenders trust in its quality. Packaging appearance and style connect the consumer’s needs and expectations to the product, and the package can truly become the product. The package should be able to: • Provide a smooth surface for high-quality printed images, including the ability to bury the print beneath the outside package layer for extra gloss and sparkle and for resistance to abrasion. • Easily incorporate pigmentation to provide uniformly colored packages that protect products against damaging light frequencies. • Offer options for a variety of label shapes, including whole-body labels that shrink to conform to complex primary package shapes. 6. Motivation for repeat purchase. Packaging should reinforce the positive purchase retail decision in subsequent moments of truth. First, the value of the package should reflect the value of the product. In addition, the package can: • Add functionality for more comfortable or efficient in-home use. • Bring new use occasions to the user to expand or encourage consumption. • Solve an in-home use problem with easier storage, refill, or disposal experiences. • Surprise the consumer with an added-value feature.


Trends in Flexible Packaging Trends often come and go before you notice them. Flexible packaging trends seem to have a longer life span than most, signaling that the format is here to stay

1.

More easy-open, easy-reclose options. A much wider range of opening treatments, fitments, and closures is available today than ever before, including linear tear characteristics, reclosable zippers that don’t require any tearing of the pouch header to open, and screw-on spouts for liquid pouches. Machinery has advanced, too, with increased ability to apply these features in-line during filling and sealing with minimal downtime issues.

2.

Clear high-barrier films. A new generation of clear films and coatings is beginning to approach the barrier properties of foil and metallized films. This provides new opportunities to showcase appetizing products while avoiding the flex-cracking problems associated with foil and some older coating technologies. These structures also offer the potential for microwave-compatible pouches.

3.

Penetration into entirely new categories. Flexible packaging tends to sweep through entire

product categories, though admittedly over a period of years. Classic examples include tuna fish and pet food, where retort pouches are now common after decades of can dominance. More recently baby food retort pouches (and thermoformed trays) are replacing glass jars. Flexibles are also being used for home and garden supplies such as fertilizers, where resealability is a key feature

4.

A quick look ahead. Now that ketchup in flexible pouches is no longer a novelty, other viscous condiments that can be more efficiently evacuated from a pouch are a prime prospect. Test market successes in Western and Eastern Europe, Asia, and Latin


7.

America will tell the early tale. Health and beauty products, such as shampoo and liquid soaps, might also be ripe for conversion. Further expansion in soups, stocks, and canned fruit is likely as well.

5.

More layers in coextrusion. Though it sounds counterintuitive, the addition of layers into a flexible packaging structure can actually

lead

to

improvements in economics and functionality. How? It allows for more precise control of the layers. Three and five layer film coextrusion manufacturing lines are limited by the size of the extruders and the design of the dies. More converters are moving to seven and nine layer coextrusion lines that provide more flexibility for desired functionality, thickness, and cost without over engineering the structure. One technique is to use less expensive resins as bulking layers. Another is to split the barrier layer into two thinner layers, with one serving as a “backup” in case a pinhole breeches the other. This approach also multiplies the number of material interfaces a permeate must cross, further reducing permeation rates. Several technologies for splitting barrier materials into many layers are being introduced, with data showing more than linear improvements in barrier properties.

6.

Shaped flexible packaging. The current generation of form/fill/seal packaging can produce more bag shapes and styles than ever. That’s important for consumer packaged goods companies hungry for new shapes that stand out on the shelf. Shaped pouches that cut a mostly two-dimensional, curvy shape have been out for years, though mostly in other countries. Machinery manufacturers are working on efficient equipment for creating pouches with a conical or three-dimensional shape. A challenge here is to hold down the design waste inherent in more complex profiles.

More retortable pouches. A retort package is “cooked” after it is filled at high-enough temperatures long enough to kill bacteria and microorganisms that can spoil food. Several factors are driving the growth of retortable flexible packaging. They are easier to open than cans, weigh much less, and can have a smaller environmental impact versus metal cans and glass jars. Additionally, pouches can minimize loss from denting or breakage and enable package innovations such as cooking capability. And then there is the taste. Many believe the food from retortable pouches tastes better because of less abusive sterilization heating cycles. The flat geometry of the flexible package means that food closest to the surface doesn’t need to be heated for as long or at as high a temperature before the food in the center has received the proper time and temperature exposure to ensure sterility.

8.

Pouches’ wide impact. Because pouch structures can be customized to meet a wide range of barrier requirements, a host of new product applications is emerging: liquid, viscous, powdered, granulated, and particulate. This growth will cross multiple markets, including food and beverage, cosmetics, healthcare, pet foods, automotive, pharmaceutical, and agricultural. While pouch-filling speeds are not yet up to par with those of many conventional container types, this gap is closing, particularly in the dry product arena.

9.

Sustainable packaging is taking on new forms. Many people play up the recyclability aspect of sustainability as it relates to packaging at the exclusion of the front end of a package’s life cycle. The carbon footprint of various packaging types has to consider many factors. For example, pouches offer tremendous energy savings both in their production and transport. Comparing rigid containers versus pouches, you can ship one truckload of flat pouches that have the equivalent product-holding capacity of upwards of 15 to 25 truckloads of empty rigid containers. Packagers can also save hundreds of thousands of dollars in packaging material costs and secondary packaging operations systems due to simplifications of packaging systems, such as the elimination of labeling, capping, etc. By Ron Romanik


ELBA S.p.A.

Packaging Solution www.tosijasindo.com tosijkt@cbn.net.id +62 21 75902726

Since 1956 Elba has been designing and manufacturing automatic pouch and bag making machines. A mix of experience in different flexible market fields, like vacuum pouches, diapers bags, dairy food bags, frozen food bags, pet food bags, medical pouches, etc., along with new technologies and innovative research, allow ELBA to offer to any customer a dedicated and customized solution for his needs. With more than 2’000 installations worldwide, Elba can be considered really a market leader in the flexible packaging field, and “your converting . SAV – Automatic pouch making machines 1956 Elba has been andfolded manufacturing automatic pouch andsimultaneously bag making machines. A mix of •Since Stand-up pouches (both designing with bottom or inserted) can be produced experience in different flexible market fields, like vacuum pouches, diapers bags, dairy food bags, frozen food bags, on two lanes with different kind of zippers and slider. pet food bags, medical pouches, etc., along with new technologies and innovative research, allow to offerin-line. to • Side gusset bags in different dimensions can be produced with folded and glued bottom, andELBA top zipper any customer a dedicated and customized solution for his needs. • Valves, spout, easy open, Euro and round hole, round corners, handle slots are just some of the different options thatmore canthan be installed on the SAV machines. With 2’000 installations worldwide, Elba can be considered really a market leader in the flexible packaging •field, Theand machine is available.with different useful sealing width (from 600mm to 1200mm), “your converting to meet different production needs. SAV – Automatic pouch making machines • Stand-up pouches (both with bottom folded or inserted) can be produced simultaneously on two lanes with different kind of zippers and slider. • Side gusset bags in different dimensions can be produced with folded and glued bottom, and top zipper in-line. • Valves, spout, easy open, Euro and round hole, round corners, handle slots are just some of the different options that can be installed on the SAV machines. • The machine is available with different useful sealing width (from 600mm to 1200mm), to meet different production needs. SAM – Automatic pouch making machines for medical and pharmaceutical market The SAM machines can run with LDPE, HDPE, Aluminium foil, medical paper, Tyvekâ and combined materials, to give to customers a really wide range of production. SA90TVB – Vacuum sacks in thermoshrinking material This machine can produce sacks with wire side seal, bottom and side flat-band seal and flat-band seal SAM Automatic pouch making machines for medical and pharmaceutical market for– semicircular shape sealing. The SAM machines can run with LDPE, HDPE, Aluminium foil, medical paper, SU94ETyvekâ – Universal andmachine combined materials, to give to customers a really wide range of production. The SU94E is the universal machine traditionally used to produce different types of bags and, when properly equipped, to give– Vacuum the possibility to inmake many different types of sacks for the industrial sector. Zippered bags, courier bags, SA90TVB sacks thermoshrinking material dutycan bags, rigid handle seal bag can beside produced withseal this and machine. Thisheavy machine produce sacksbags withand wireany sideside seal, bottom and flat-band flat-band seal for semicircular shape sealing. SW97HP – Wicket machine The–automatic machine type SW97HP has been designed to produce bags with wicket collection which is used SU94E Universal sealing machine the automatic packaging of diapers. Thefor SU94E is the universal machine traditionally used to produce different types of bags and, when properly equipped, The high reliability and high production speed types reached by thisfor machine allowedsector. us to make it suitable for the to give the possibility to make many different of sacks the industrial Zippered bags,also courier bags, production of other types of bags like: bakeries, poultry, freezer and hygienic bags. heavy duty bags, rigid handle bags and any side seal bag can be produced with this machine. SA92EV – Bags on rolls SW97HP – Wicket machine Autopack – Automatic packing system The automatic sealing machine type SW97HP has been designed to produce bags with wicket collection which is used for the automatic packaging of diapers. The high reliability and high production speed reached by this machine allowed us to make it suitable also for the production of other types of bags like: bakeries, poultry, freezer and hygienic bags. SA92EV – Bags on rolls Autopack – Automatic packing system


Packaging Solution www.tosijasindo.com tosijkt@cbn.net.id +62 21 75902726

Perfect execution . . .from the first to the last note, taking place on april 21-22-23, 2015 at UtecoPlant2. A prestigiuos “Opera” created following the Standard Uteco Gravure Range for a high quality production with fast job changeovers and low energy consumption, continuously researching for the most accurate details that over time have become a tradition.

And a new innovation is coming... UTECO CONVERTING SPA • I 37030 COLOGNOLA AI COLLI (VR) • PH.: +39 045 6174555 • FAX: +39 045 6150855 • UTECOVR@UTECO.COM • WWW.UTECO.COM


Specification

ONYX

Technical Details

Model

612 GL

812 GL

808 GL

810 GL

108 GL

110 GL

Print Width

47 in - 63 in

47 in - 63 in

47 in - 59 in

47 in - 63 in

47 in - 59 in

47 in - 63 in

Minimum Print Repeat

15 in - 17 in

15 in - 17 in

13 in - 16 in

15 in - 18 in

13 in - 16 in

15 in - 18 in

43 in The ONYX CI flexo printing press represents Uteco’s state of the art offering to the Mechanical Speed 1.312 fpm 1.312 fpm 1.312 fpm 1.312 fpm 1.312 fpm 1.312 fpm printing industry. Equipped with Direct with Number of Colors 6 8 8 fpm 8 10 10 fpm Direct Drive Evo technology, it features unmatchable print quality, easy operations and externely fast job changes. To ensure optimum dot PTC : Predictable Torque Control, this software quality, Uteco developed Direct Drive Evo technolsystem allows predictive control of plate mandrel ogy, our true, patent protected, direct drive techservomotor’s torque in varying print conditions to nology. The CI drum and the plate sleeve mandrels ensure the best available print register accuracy. are flanged directly into their drive motors, ensurDirect Drive Evo : The Direct Drive Evo technology ing that dot quality is not compromised. PCT and by Uteco grants unique performance which give PTC technologies are used to enhance print operconverters improtant benefits. ation during press operation. The ONYX series of Chamber Doctor Blade : The new pneumatically presses features Uteco’s latest hardware and loaded chamber doctor blade features newly software developments that automatically set designed lightweight and robust doctor blade print register and printing pressures at job start, chambers, as well as on deck toolless end seal reducing both waste and changeover times, replacement and fast change toolless doctor ensuring optimum press performance and maxiblades. mum return on investment. Sprint Wash : The ONYX can be equipped with SprintWash, Uteco’s automatic and modular washOther features include : ing system. Three different washing cycles (light, PCT : Press Control During Transition, the Uteco medium and heavy) can be selected per deck, platform for low waste and fast setting of printing based on need by the operator or machine superpressures (Touch & Go and Kiss &Go) and visor. registers (Click & Drag) in partnership Maximum Print Repeat

49 in

49 in

31 in

43 in

31 in

with Grafikontrol.

Specification

Technical Details

Model

808 GL

812 GL

108 GL

112 GL

Print Width

39 in - 63 in

39 in - 63 in

39 in - 59 in

39 in - 63 in

Minimum Print Repeat

12 in - 17 in

14 in - 17 in

12 in - 17 in

14 in - 17 in

Maximum Print Repeat

33 in

49 in

33 in

49 in

Line Speed

1.969 fpm

1.969 fpm

1.969 fpm

1.969 fpm

small orders. The DIAMOND HP print deck represents an evolution of the well tested, dual guided and patented print unit of the Uteco Emerald flexographic press. The sleeve change is completely automatic and can be managed by the press operator from both the press supervisor, as well as the CI printing group.

DIAMOND HP The DIAMOND HP represents Uteco’s excellence in flexographic printing. SHort runs increased quality and reduced waste and setup times remain priorities in today’s flexible packaging market. The DIAMOND HP is the ideal answer for top converters who require increased flexibility and consolidation of equipment to streamine operations. Thermoregulation by air of the CI group frame, carbon fiber sleeve mandrels, sleeve ejection system, new and efficient drying system, improved high performance winders, dynamic adjustment of printing pressures (P2P), new automatic washing system (sprintWash) and an upgraded press supervisor (ShopWareHP) give the DIAMOND HP a significant competitive advantage in the production of both large and

Notable features include : ● PCT-Press Control During Transition new Uteco Platform for low waste and fast setting of: ● Printing pressures (Touch & Go & Kiss & Go) ● Registers (Click & Drag in partnership with Grafikontrol ● PTC-Predictable Torque Control This software system allows predictive control of plate mandrel servomotor’s torque in varying print conditions to ensure best available print register accuracy ● Direct Drive Evo The Direct Drive Evo technology by Uteco grants unique performance which give converters important benefits


Compostable Film for Coffee Packs Based in Modena, Italy, Caffe Molinari SpA is a specialty coffee company that recently introduced a BioTM range of coffees in packs that incorporate fully certified compostable packaging. The coffee pack is constructed using two-layers a white metallized high-barrier NatureFlexTM outer layer from InnoviaFilms (www.innoviafilms.com) laminated to a bio-polymer sealant inner layer. It’s a combo that provides high seal strength and structural integrity.

Working in collaboration with Goglio (www.goglio.it), an international flexible film converter, these new coffee packs were developed specifically for Caffe Molinari. This innovative eco-friendly integrated packaging system using NatureFlexTM includes an aroma protecting bio valve, designed and patented by Goglio Plastic Division. The full pack construction with the valve complies with the EN13432 industrial composting norm and is certified to OK Compost’s composting standard by Vincotte. “In order to satisfy our customers, who care for their environment and are health conscious, we have launched two BioTM coffees in fully certified compostable packs, “says Managing Director Giuseppe Molinari. “Working closely with Innovia Films and Goglio we have been able to launch this integrated coffee packaging system with a bio degassing valve into the market. So far we have had an excellent response from our customers.” NatureFlexTM films are certified to meet the American ASTM D6400 and European EN13432 standards for compostable packaging. They begin life as a natural product: wood that is sourced from managed plantations operating on good forestry principals. They also offer a host of advantages for packing and converting such as high seal strength and integrity; excellent gas, aroma, and UV light barrier; grease and chemical resistance; dead fold and anti-static properties; and enhanced printing and conversion. Pat Reynolds


P&G Put Focus on PE Film Recycling P&G joins the American Chemistry Council’s Flexible Film Recycling Group to develop and encourage local recycling programs. P&G R&D Manager Stephen Sikra explains why. Anne Marie Mohan, Senior Editor- In May 2015, P&G joined the American Chemistry Council’s Flexible Film Recycling Group (pwgo.to/1633) to develop and encourage the recycling of polyethylene film. In this Q&A article, P&G Research and Development Manager Stephen Sikra discusses how this effort will help advance P&G’s environmental vision, the challenges of recycling PE film, and the importance of film recycling. Stephen Sikra, P&G Research and Development Manager

This help multiple goals : 1. Using packaging that is recyclable or engaging in programs to create the ability to recycle it. Our goal is to have 90% recyclable packaging or have programs in place to create the ability to recycle it by 2020. 2. Contributing to our vision for one day having zero consumer and manufacturing waste to landfill. 3. Increasing the supply of material to meet growing PCR demand, such as P&G goal of doubling the use of PCR material by 2020. With the FFRG, we hope to expand participation in film recycling via existing and new retail store take-back programs. Further, we look to partner with FFRG to expand film recycling beyond polyolefin films and store collection. P&G is a relatively small film user (by tonnage) compared to the total film market, using films for both shipping and packaging. We use film to contain unit loads of product shipped on pallets within our distribution system. This industrial film is routinely recycled today by our plants and retail customers. On the consumer side, P&G uses flexible PE film as shelf packaging and unit packaging primarily for items such as diapers, feminine care products, and tissue/towels. We are working to educate and encourage consumers to recycle high-quality polyolefin films in store take back programs. Film packaging has many benefits versus rigid packaging, including the use of less material to package products, requiring less energy to produce, taking up less space in shipment/storage/retail, and reducing the environmental impacts of transportation. Given the many benefits and the increasing use of film packaging, it is important to optimize collection and recovery, as both post-consumer and post-industrial films have value. Maximizing recovery of value is good for business, good for consumers, and good for the environment. Four factors as critical to as successful program: 1. Access to collection 2. Participation by consumers 3. System for separation of materials, and 4. Markets for the recycled material.

Considering film recycling in the retail take-back system, consumer awareness and participation is a key focus area. The 2014 survey by Plastics Make it Possible “indicates that of the two-thirds of Americans who regularly recycle, less than one-third return plastic shopping bags to stores for recycling (so less than 25%). We aim to increase this rate and expand the collection beyond bags by including packaging materials made of similar clean, dry, polyolefin film. In this effort, we look to make use of the How2Recycle label (www.how2recycle.info) from GreenBlue’s Sustainable Packaging Coalition (SPC) as a simple means to communicate recyclability to consumers. P&G can and does use recycled PE in our packaging. In fact, we have been using recycled PE (and PET) since the late 1980s. Our main use of plastic PCR materials is in bottles, although we have demonstrated PCR use in films as well. Our 25-year history of using PCR-25% or more in all U.S detergent and fabric softener bottles, for example-and our recently announced goal of doubling our PCR use by 2020 is indicative of our commitment to the recycling industry. Simply, we use PCR, and we are in it for the long haul. Specific to new packaging, consideration of PCR inclusion and recycling is made in every situation; this is part of sustainable packaging design, along with performance requirements and product protection, material selection, minimization of material, cost, supply, and other factors.


Flexible News... WATER-BASED LAMINATION INKS FOR FLEXIBLE PACKAGING,

Flint Group’s PremoLam F system is a water-based lamination system formulated without migratory plasticizers. It is designed to perform on a wide variety of films by adhesive lamination. The system performs well in snack food packaging, stand-up pouches, food packaging, and many other laminated packages. The PremoLam F system is designed for applications that require bond strengths of 200+ lbs/in. This system works synergistically with the solvent or SAL adhesive to provide a consistent bond for end product; it provides high bond strengths on Polyester substrate constructions and is suitable for both liquid and solid products. Typical applications are stand up pouches, cold and hot fill food products, as well as microwavable pouches. This system enables enhanced graphics while maintaining package integrity when hot or frozen filled; PremoLam™ F can be used for microwave pouches and withstands cooking temperatures over 275°F. John Gaber continues, Product Director, Packaging Inks North America, said: “We knew the system would have to deliver excellent bond strength at 24 hours (green bonds) and at 72 hours (aged bonds), enabling converters to compete with those using solvent-based inks. In addition, the inks would need print high end graphics and work with multiple adhesives and films. Our product development group answered the challenge with PremoLam F – this new system enables printers to use low VOC inks to create high value solventless lamination packaging that was once only possible by using solvent-based inks.”

NORDMECANICCA GROUP – PRESENTATION OF VACUUM METALLISERS AND ADHESIVE LAMINATION,

During a 4 days open house at the corporate location of Nordmeccanica in Italy a new family of vacuum metallisers was presented. The event was organised through a demonstration of vacuum metallisation of a 2.9 m wide PP. The newly redesigned family of vacuum metallisers includes among others fast production cycles, good ergonomics, ease of use as well as scrap reduction and energy savings. A second demonstration featured the deposition of AlOx (aluminum oxide) on a PET film on a 1500 mm wide metalliser. Each day was concluded with a visit to the coating lamination division of Nordmeccanica for a seminar on barrier coating and a demonstration of thin foil lamination.

BOBST – TRENDS IN FLEXIBLE PACKAGING DISCUSSED AT ROADSHOW IN VIETNAM,

More than 130 participants attended the Bobst & Partners Roadshow held in HTMC, Vietnam in June to hear about the latest innovations and trends in flexible packaging. The roadshow formula brings together equipment manufacturers and management of packaging companies. The conference opened with a welcome from Othmar Hardegger, Consul General of the Swiss Embassy in Vietnam, and Cao Hong Quang from the Vietnam Packaging Association. During the event, Bobst discussed market trends and solutions, along with partners including Atlas Converting Equipment, Coim, Esko, Rossini, Daetwyler Graphics, Daetwyler SwissTec, Macchi and Schmid Rhyner, covering the areas of production, printing, converting and finishing. The Bobst & Partners Roadshow was the first to be held in the Asian country. Eric Pavone, Business Director of Bobst Business Unit Web-fed, commented: “Vietnam is an important market for us, due to the fast growing economy and the packaging sector gaining market share to become one of the most rapidly growing industries in the country with increased demand for consumer goods and in particular foodstuffs.” According to Pavone, their solutions in flexo printing, gravure printing, laminating, coating and vacuum metallizing are ideal for meeting the requirements of the packaging industry in Vietnam.

MARTIN AUTOMATIC WORKS WITH XIAMEN YING SHEN – TO DEVELOP ASEPTIC PACKAGING MARKET,

Xiamen Ying Shen Technology, which was established in 2012 by gravure flexible packaging producer Xiamen Hanbang Packaging Products, specialises in flexo printed aseptic packaging for beverages, and together, the companies have more than ten years of production experience providing complementary packaging materials and services for the food and beverage markets. Ying Shen Technology’s new plant and equipment layout was professionally designed in accordance with international standards, and the hardware and sanitary facilities meet the highest food production hygiene requirements. The production equipment includes a Gallus inline flexo press fitted with a Martin Automatic MCBWW non-stop unwind splicer and RMAP rewinder. With a growing market in aseptic packaging in China, Xiamen Ying Shen’s customers include Yinglu Group, Nestle Beverage, Dali Food Group, Hui Er Kang Group, Mengniu Dairy, Wanglaoji, Nongfu Spring, and C’estbon Beverage (China).


membership

professional networking packaging community

education sharing

WHO WE ARE First Packaging Asia will facilitate the process of education and training for the packaging industry. Primary goal is to provide a platform for players in the indonesian packaging industry to network, learn and exchange ideas. We arrange monthly seminar for flexible packaging, label, folding carton as well as corrugated industry General training such as - Packaging Fundamentals - Packaging Design - Food & Beverage Packaging - Cosmetic & Personal Care Packaging Basic Printing Package - Design - Prepress Printing (enhance for packaging prinitng) - Intro to Flexo - Advanced Flexography

The necessity of memberships for packaging professionals Packaging has evolved into a strategic tool that can be leveraged into a competitive advantage. New technologies, new materials, new markets, new regulations - today’s professional needs to scan those and other horizons to stay apace.

Who should join :

• New to packaging and need a broad introduction • A manager who needs a wider view of packaging • A sales rep who wants to expand your technical background • A packaging professional changing your focus who needs to come "up to speed" in a new area of packaging • A purchasing professional who needs more technical depth

Market segments represented : - Flexible Packaging - Corrugated - Folding Carton/Boxmaking

WHAT WE DO FOR YOU

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Tag & Label Digital Printing Envelopes Prepress

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29 September - 2 October 2015, BRUSSELS EXPO TECHNOLOGY IN ACTION Whether you’re choosing machinery or materials, it is vital you feel confident about your decisions. The best way to do this is to see all the options together in one place. Come to Labelexpo Europe 2015 and hear the noise of the machinery in operation, feel the texture of the substrates and see the print quality for yourself. Magazines, websites and brochures cannot compare. Experience it live and make a better choice.

WHO SHOULD VISIT? Printers / converters of labels, flexible packaging and folding cartons

OPENING TIMES Tuesday, 29 September, 10:00 - 18:00 Wednesday, 30 September, 10:00 - 18:00

Brand owners

Thursday, 1 October, 10:00 - 18:00

Label and packaging designers

Friday, 2 October, 10:00 - 16:00

Industry suppliers

WHAT YOU WILL SEE LIVE DEMONSTRATIONS OF NEW: Digital and conventional printing presses

Inspection,

High tech label and packaging materials

equipment

Prepress and platemaking technology

Dies, cutters, rollers

Finishing and converting systems

Inks and coatings

overprinting

and

label

application

RFID and security solutions Software and interactive technology

WHAT YOU WILL ACHIEVE SOURCE NEW TECHNOLOGY TO: Keep ahead of your competitors

Enter new high-value niche markets

Drive costs down and improve efficiency

Improve supply chain management

Offer value-added services

Optimize workflow and reduce press downtime

Attract new clients

Operate in an environmentally sustainable way

SEE See live demonstrations of the latest machinery and materials.

LEARN Learn about global label trends and technologies.

MEET Meet the world's leading suppliers and network with industry experts.


LABELEXPO EUROPE 2015 STRENGTHENS FOCUS ON PACKAGE PRINTING

Package printing will be a core subject at Labelexpo Europe as the show prepares to return to Brussels this autumn. Set to be the biggest ever edition in its 35 year history, Labelexpo Europe 2015’s show floor and feature areas will firmly put the spotlight on the lucrative commercial opportunities package print production offers. Taking place at Brussels Expo in Belgium from 29 September to 2 October, the show is aimed at trade professionals including label and package printers, brand owners and designers. Visitors to the show will be able to see and source the latest label and package printing solutions from over 600 exhibitors. Leading industry suppliers will be there in force with exhibitor. In addition, the award winning REVO team – consisting of Nuova Gidue, Flint Group, Apex International, AVT, DuPont, Esko, UPM Raflatac and packaging converter Adare Group – will bring new technology to Labelexpo Europe demonstrating how low migration UV flexo inks can be used to convert flexible packaging. Currently, most food-grade flexible packaging is printed with either solvent or water-based flexo inks or with solvent gravure. UV has been considered problematic because the photo-initiators can migrate if not fully cured. The REVO team claims to have developed a technology to guarantee that every meter of film within a roll has been fully cured, and

that brand colors are consistently matched by a seven-color process ink set. Covering an unprecedented eight halls, Labelexpo Europe will also host an array of educational feature areas. The Packprint Workshop will give practical insight into how printers can diversify and grow their business with press demonstrations by Xeikon using its 3500 for digital folding cartons and Nilpeter showing its FA* flexo press for flexible packaging capabilities. The Smart Packaging Lab will focus on opportunities in intelligent and active packaging, while the inaugural Packaging Design Studio will give show-goers a chance to network with some of the industry's leading creative designers. Lisa Milburn, managing director of the Labelexpo Global Series explains: “Package printing is now central to the label printing community and Labelexpo experience. With 53% of our total exhibitors showing products for flexible packaging and 32% featuring products for folding cartons, Labelexpo Europe offers all printers the most extensive showcase of package printing solutions available. Nowhere else will print industry professionals find such a comprehensive range of suppliers and technologies which will help gear up their business, improve profitability and add value for their customers.”


29 Sept - 2 Oct • Brussels

LABELEXPO EUROPE 2015 www.labelexpo-europe.com

The global launch of the Nilpeter PANORAMA product-line, including the 5-colour DP-3 UV-InkJet unit will be a major attraction at LabelExpo 2015. The press combines Nilpeter's expertise in web handling technology with advanced inkjet printing and workflow. This integrated approach to single-pass digital printing from a single supplier offers users many operational benefits, including high performance and very high effective up-time, through close integration of digital print and label converting. Designed for fast setups and quick job turnarounds, the PANORAMA product-line is highly productive in the fastest growing of all label sectors. It produces a variety of label jobs in short-to-medium run lengths with minimum wastage. Users are well placed to meet brand-owners’ demands for high quality labels in smaller quantities, in line with global trends towards product diversification. Nilpeter has adapted several of its inline finishing modules to digital production. They include a web in-feed, varnishing unit, the innovative QC-Die-cutting system, smart matrix stripping, length slitting, varnishing unit, and small roll dual rewinds. A mark sensor allows the precise re-inserting of webs for reverse printing, or overprinting of pre-printed webs, including variable data.

The PANORAMA product-line has a maximum printing width of 322 mm (12.67 in) on up to 350 mm wide web. It prints up to 50 m/min (164 ft/min) using paper or filmic label laminates from 90 to 350 microns. This comparatively high level of productivity equates to 16.1 sq/m (173 sq/ft) per minute. High-definition UV-inks are used for CMYK, with an opaque white ink as standard for printing transparent films and metallic foils. The PANORAMA DP-3 print engine delivers market leading, consistent colour output using single-pass 600 dpi piezo printheads with 4-level greyscale imaging. A minimum droplet size of 3 picolitres allows small-dot halftones for true flesh tones and fine vignettes. The digital front-end uses advanced workflow management system. Users can match the majority of Pantone colours for spot colours to gain a wide colour gamut, aided by a colour editing tool. The workflow also includes superb typeface optimisation and automated step- and-repeat functions. Expanded options for vivid colour reproduction is also available. The PANORAMA DP-3 is highly reliable and supported with Nilpeter’s safe service setup, offering remote repair assistance, maintenance and trouble-shooting.

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7 i 5 Jon Hall . 7B3 St

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Danish PM visits Nilpeter

The Prime Minister of Denmark, Helle Thorning-Schmidt, visited printing machine manufacturer, Nilpeter, at headquarters in Slagelse as part of her re-election campaign on the 2nd of June. She talked to management and employees in the factory. “It is incredibly exciting to visit a company like Nilpeter, where you both meet highly skilled employees who are very happy with their work, and a management team, which clearly states that they want to maintain production in Denmark”, said Helle Thorning-Schmidt during the visit. “We clearly sense that we are entering a global growth period. We are doing well as a company, we have skilled people, and look positively at the future”, said Peter Eriksen, COO at Nilpeter to the large crowd of reporters. “Nilpeter is a true global player. Today we have manufacturing sites in Europe, USA, and Asia, alongside seven fully owned daughter companies, to remain close to our markets and to support our customers locally. This is a central part of our strategy, and the decentralization is likely to continue”, Peter Eriksen concluded. During the one-hour visit, the Prime Minister made a tour of the factory assembly, the machine shop, and the Technology Center.


Production is monitored by Sispro, the software system from Argentine developer UpSoftware

The second Nilpeter FB 330 flexo press was installed last year

Strong Growth Propels Maroni Into New Markets Annual growth averaging 25-30 percent over the last five years and plans to incorporate shrink sleeve and in-mold label production have led Argentine converter Maroni C to seek larger premises. Buenos Aires-based label converter Maroni C is seeking larger premises after a five-year period of 25-30 percent annual growth fuelled by the installations of two Nilpeter FB 330 flexo presses. With entry into shrink sleeve and in-mold label production planned, as well as in-house plate production, Maroni C hopes to make the move within 18 months. The family run company has a long history of targeting and profiting from niche markets. The first came in the mid-1980s. Cesar Maroni had worked for his father Giorgio’s company for 15 years, a distributor which represented the likes of Cerrutti and Omet in Argentina. Wanting to branch out on his own, Maroni spotted a technology that had recently arrived in the country at a time when the local consumer goods market was beginning to flourish – the barcode. Cesar Maroni founded Maroni C in 1986 in the Buenos Aires neighborhood of Constitución. Importing Zebra thermal transfer printers and Datalogic data-capture equipment for local distribution, while also die-cutting simple blank labels, the company became a pioneer in mass item-level coding. From the sector’s earliest days in Argentina, Maroni C was installing barcoding equipment in supermarkets and other companies who wanted to add the technology to their production or stock-keeping processes. This early focus on industrial and commercial goods continues to have an effect today, but with the greater part of Maroni C’s business now dedicated to serving these markets with self-adhesive labels. In 1996, when Maroni C moved to its current factory in the suburb of Vicente Lopez, 80 percent of business came from sales of Datalogic and Zebra equipment and 20 percent from label printing. In the near twenty years since, these figures have been inverted: today 90 percent of the company’s labelsandlabeling.com

business is label printing, and 10 percent data-capture equipment sales. The transition began with the installation in 1998 of a 6-color Rotatek flexo press with a 250mm (10in) web width. Two years later, the company added a Rotatek die-cutter and a hot stamping machine from Berra. ‘The Rotatek press – one of the first fully UV flexo machines in Argentina – allowed us to produce more complex jobs and move away from the simple blank labels which we were producing as part of our work in the data-capture field,’ explains Cesar Maroni. ‘The idea was to maintain the data-capture market while at the same time moving into the consumer goods sector, targeting niches where value could be added.’ But it was five years ago, with the installation of the first Nilpeter FB 330, an 8-color, fully UV flexo press with a wide gamut of printing and finishing options, that Maroni C’s annual growth leapt to 25 percent – a figure it has matched or bettered every year since. (The figure is for turnover in dollars, so uncorrupted by high inflation in the Argentine peso.) A second Nilpeter FB 330, of the same specifications aside from two fewer colors, was installed last year.

‘The Nilpeter presses have allowed more flexible production and specialty applications,’ says Cesar Maroni. ‘When you operate in niche markets, you are required to innovate. And the

presses are so productive we had to find new markets to fill them.’ Diversity One of these new markets was electronics. In recent years Tierra del Fuego, in southern Argentina, has become a hub of local electronics manufacturing. Components are imported and then assembled and packaged locally. ‘We knew we had the right technology to be able to supply the market,’ comments Augusto Maroni, Cesar’s son and a director at the company.


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Maroni C has a diverse product line and client base. A pilot run of shrink sleeve production is underway, Among its self-adhesive offering are prime, promothe company expects to them to be commerMinimum wasteand of time tional and security labels. While PE, PET, OPP and cially available later this year. Work has also started paper materials are used in 80 percent of producon an in-mold labeling project; Maroni C is being Health & Beauty, Beverages, tion, the remainder employs specialty substrates – advised in this area by Luis Maria Garcia, former often developed in-house – for applications such as general manager of Argentine converter Multilabel Food, Petro Chemical, etc. personalizable hologram, void and tamper-evident and now an independent industry consultant with labels. The cosmetics, electronics and food sectors extensive experience of in-mold label production each take around 20 percent of Maroni C’s label (see L&L issue 2, 2015). production, with the remaining 40 percent divided between pharmaceutical, automobile, chemical, Later this year Maroni C will install a desktop digital beverage and others. ‘We prefer not to put all our printer from Memjet, which can be placed in-line eggs in one basket: we have a good spread of with the Berra finishing machine. ‘It’s a first small step different sectors,’ says Cesar Maroni. to investigate digital printing,’ reveals Cesar Maroni. www.tosijasindo.com ‘We want to test the water with a low investment.’ tosijkt@cbn.net.id ‘We’ve always been focused on specialty Maroni C produces 100,000 sqm meters of labels a +62and 21 75902726 security markets and on developing new products. month, though the machines have the capacity to We want to grow in the mass consumer market, but double or even triple this figure, according to Augusalways looking for the niche with special products to Maroni. Workflow is handled by Sispro, the and services,’ says Augusto Maroni. ‘We’re a software system from Argentine developer UpSoftboutique company that serves other boutique ware installed a year ago. Cesar Maroni describes it companies,’ adds Cesar Maroni. as helping to ‘fine-tune’ both printing and other aspects of the production process. ‘Sispro has With these strong foundations in place, Maroni C has benefitted us a great deal by providing data about a number of plans to stimulate further growth. A production and materials and consumables and bigger factory is a priority and will also facilitate helping us to maximize our efficiency,’ says Augusto in-house production of flexo plates, currently Maroni. Maroni C is qualified as a Green Partner by outsourced. Certified to ISO 9001, a project which Sony and other electronic components manufacturwas run by Augusto Maroni, the company aims to ers, and is a member of OPSD, a governmental achieve ISO 14001 certification in its next facility. environmental sustainability program. By James Quirk

The FB-3

is a sophisticated workhorse offering high ease of operation and superior quality


Augusto maroni is Director of Maroni C

Maroni C has a diverse product line and client base. Among its self-adhesive offering are prime, promotional and security labels. While PE, PET, OPP and paper materials are used in 80 percent of production, the remainder employs specialty substrates – often developed in-house – for applications such as personalizable hologram, void and tamper-evident labels. The cosmetics, electronics and food sectors each take around 20 percent of Maroni C’s label production, with the remaining 40 percent divided between pharmaceutical, automobile, chemical, beverage and others. ‘We prefer not to put all our eggs in one basket: we have a good spread of different sectors,’ says Cesar Maroni. ‘We’ve always been focused on specialty and security markets and on developing new products. We want to grow in the mass consumer market, but always looking for the niche with special products and services,’ says Augusto Maroni. ‘We’re a boutique company that serves other boutique companies,’ adds Cesar Maroni. With these strong foundations in place, Maroni C has a number of plans to stimulate further growth. A bigger factory is a priority and will also facilitate in-house production of flexo plates, currently outsourced. Certified to ISO 9001, a project which was run by Augusto Maroni, the company aims to achieve ISO 14001 certification in its next facility.

Father and son team Cesar Maroni (right) and Augusto Maroni, in front of one of two Nilpeter FB 330 presses

A pilot run of shrink sleeve production is underway, and the company expects to them to be commercially available later this year. Work has also started on an in-mold labeling project; Maroni C is being advised in this area by Luis Maria Garcia, former general manager of Argentine converter Multilabel and now an independent industry consultant with extensive experience of in-mold label production (see L&L issue 2, 2015). Later this year Maroni C will install a desktop digital printer from Memjet, which can be placed in-line with the Berra finishing machine. ‘It’s a first small step to investigate digital printing,’ reveals Cesar Maroni. ‘We want to test the water with a low investment.’ Maroni C produces 100,000 sqm meters of labels a month, though the machines have the capacity to double or even triple this figure, according to Augusto Maroni. Workflow is handled by Sispro, the software system from Argentine developer UpSoftware installed a year ago. Cesar Maroni describes it as helping to ‘fine-tune’ both printing and other aspects of the production process. ‘Sispro has benefitted us a great deal by providing data about production and materials and consumables and helping us to maximize our efficiency,’ says Augusto Maroni. Maroni C is qualified as a Green Partner by Sony and other electronic components manufacturers, and is a member of OPSD, a governmental environmental sustainability program. By James Quirk

New Generation Cesar Maroni’s son Augusto, still only in his mid-twenties, is a full-time director of the company while studying in the evenings for a degree in business administration. He began working at the converter six years ago, initially part time, and has spent time in all the company’s departments. As part of his development he studied economics for six months in Italy, taking advantage of his time in Europe to visit industry suppliers Manter, Arconvert and Cartes as well as a number of their label converter clients. Augusto Maroni’s confidence and knowledge of the industry belie his age. A pattern emerges during L&L’s visit: Augusto will place an ambitious time-frame on a certain project, and his father Cesar will interject to remind him that progress can take time. It’s a pattern they also recognize: ‘The energy of youth combined with the wisdom of age,’ as Augusto describes his working relationship with his father. ‘Of course there are occasional differences of opinion,’ he reveals. ‘The important thing is how you find the solution. I’m still learning, and spending time with experts in different areas of the company.’

‘It’s important to train and to advise, but also one day to cede the chair,’ says Cesar Maroni. ‘Personality is key; there’s no tension between us. An important part of Augusto’s development was leading the ISO 9001 certification process. It helped him gain a detailed insight into all aspects of the company.’

Changing Landscape The Argentine label market has seen much merger and acquisition activity in recent years. Achemar was acquired by the Japanese Sato Group in 2012; Adhepel by Austrian company CTI Invest in the same year; Autopack by Brazillian converter Baumgarten in 2014. Multi-Color Corporation also runs a facility in the country. Maroni C has forged ahead unperturbed. ‘The arrival of international companies in Argentina helps us to professionalize,’ says Cesar Maroni. ‘It shows the market is strong and increases our competitiveness.’


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CS LABEL-DIGITAL PRINTING, BUT NOT AS YOU MIGHT KNOW IT Europe’s biggest user of Xeikon dry toner technology, CS Labels is using its heritage in digital to revolutionize how the process is seen and used, including opening it up new and previously untapped markets such as flexible packaging. Since purchasing its first Xeikon press in 2007, the UK’s CS Labels has continued to invest in dry toner to the extent that it holds an establihed position as Europe’s largest digital label printer to use the technology. This refresh of its machine park over the yeras has seen the company go wider, with a 3500 model and faster with the Xeikon Cheetah, its most recent press investment that is capable of printing at 98 ft/min (30 m/min). New consumables such as the ice toner, softaware and finishing equipment a laser die-cutting system is shortly to be commissioned have also been added and integrated into its operations. This has all combined to give the company an unparalleled understanding of dry toner and its capabilities, built up over a number of years. It has also given CS Labels an understanding of the need to innovate and evolve its capabilities in an increasingly competitive market. This has included maximizing digital as a tool not only for short runs but for longer runs and those which require elements that can only be produced using digital, such as variabel data. Saturated Market “The bottom end of the digital market is saturated and there is little room to move to create value,” says Simon Smith, CS Labels managing director. “We have been able to use our long history using Xeikon and a favorable investment environment as an opportunity to generate value and revenue that has been reinvested into our operations, meaning we can now create further value and new revenue streams to continue growing the business.” Recent innovations to come out of its Willenhall facility have included a new wraparound style peel and reveal label using a specially configured converting line from GM and digital heat transfer labels, where graphics are printed on to a clear film carrier with a unique adhesive applied.

“There are huge opportunities in flexible packaging for digital”

Flexible packaging is another new development, including those types featuring aluminum in the construction. For flexible packaging it is working with a leading pouch manufacturer to form the printed material into the finished product, utilizing thinner constructions and other elements to overcome the perceived issues with printing to the edge of the material using dry toner. A different approach For Smith, the key to making these innovations a reality a different approach and looking at challenges differently. “It is difficult to print on a metallic PET so instead we print on the laminate material, which is then applied to the PET and when people have seen our digitally printed flexible packaging, they assume it is printed using ice toner due to the lower temperature required to fuse the toner. In reality, the opposite is true as you don’t want a lower fusing temperature when forming the pouches and we manage the substrate-temperature issues on-press in other ways.” Taking such an approach to innovation opens up new opportunities and says Smith, places CS Labels in a privileged position by creating knowledge and intellectual property that helps it stay ahead of the curve. “There are huge opportunities in flexible packaging for digital. The market is probably where the label industry was six or seven years ago, but we now have examples such as the Coca-Cola projects, that have made people sit up and take notice and realize how they could benefit from using digital. As such, both Xeikon and we want to find ways of capitalizing on this emerging demand”. By David Pittman prints running off the Xeikon Cheetah at CS Labels

the peel and reveal converting line installed at CS Labels

Expansion

the Xeikon Cheetah has taken pride of place on the pressroom floor at CS Labels

The Xeikon Cheetah installed by CS Labels has been placed at the heart of its newly expanded manufacturing facility in Willenhall in the UK. The expansion and upgrade has created a special area for one of its presses as the company looks at achieving BRC accreditation, while three Roland DG printers also have a new home from where they are producing printed elemets for molding into brand wellington boots.


Metallic Colors from

Process Inks

Color-Logic software serves to bring increased production efficiency to label and packaging converters adopting in-house design as a service point. Manufacturing in the label and package printing industry is focusing more on standardization. As job turnaround times become shorter and projects become more complex, as clients try to differentiate their labels and packages from those of competitive products, it becomes increasingly important for production managers and workers to know exactly how jobs should be produced. Therefore more and more producers are reducing their reliance on the graphic designers that their clients employ, and are bringing talent inside to ensure that job specifications are constructed in a way that guarantees smooth production workflows and quick, accurate results on the production line. This move to standardize industry design procedures is being approached from two directions. First, brand managers at major consumer product firms – particularly those manufacturing huge volumes of major brands – have embraced standardization simply because so much is at stake. Companies such as Schawk and Phototype have developed autonomous design groups that support brands by providing finished files to printers under contract to major brands around the world. The role of these internal design organizations is to accommodate the different print workflows used by major brands, providing file variations as required by various printers. Only with this mechanism can major brands like Proctor & Gamble and Colgate be confident that their corporate colors and packages are uniformly consistent regardless of where printed. The second factor influencing design has more to do with the actual design function. As brands adopt the latest special effects to differentiate their packages from the competition on the shelf, designers need to be involved in the process in entirely new ways. Perhaps the most confounding design issue now facing the industry is the increasingly widespread use of metallics. Used both to connote luxury and to attract shoppers’ attention, metallics often befuddle graphic designers. Designing with metallics Several label and package printers have adopted the Color-Logic Process Metallic Color software system as a color communication technique to eliminate many of the customary pitfalls of designing for metallic print. The Color-Logic system is fully

compatible with G7, GRACoL, ISO, and FIRST specifications. It is licensed by printers and the files are supported by the Color-Logic Design Suite. Few designers have had training in designing metallic into packaging, and even fewer are confident in their ability to design and properly specify how files with metallic should be run to ensure success. Press operators, too, generally dislike metallics because the results on press are unpredictable and often require painful and expensive reruns to attain the results desired by the brand. In addition, designers are often faced with the choice of preparing files to be printed on a metallic substrate (using white ink to mask areas where metallic effects are not used), and preparing files to be printed on conventional substrates using silver ink to create metallic effects. Neither method i foolproof, while commercially available swatchbooks provide little helps. Additionally, when short production runs are involved, the designer’s choice of substrate can have dramatic financial implications, particularly if extensive on-press testing must be done to verify results.

Wold Top Brewery, located in the UK, used the Color-Logic process on a holiday carton offset-printed on a Mirri metallic substrate. The sparkling pack increased holiday sales by more than 30%.


As brands adopt the latest special effects to differentiate their packages from the competition on the shelf, designers need to be involved in the process in entirely new ways

With each license Color-Logic provides a number of design suites that are plug-ins for Adobe CS. The printer then sells or hands out design suites to designer clients, or retains the design suites for use by their own design group. The Color-Logic Design Suite incorporates several key functions that dramatically simplify the process of designing for metallics. The software analyzes photographs and other images, suggesting where metallic effects should be used for maximum effectiveness. To assist them in understanding how those metallic effects will appear in the final printed product, the software includes a viewer that permits designers to rotate the label or package and assess the effect of light striking the print from various angles on their monitor. Perhaps most important, the software automatically cuts the white ink masks necessary for printing on metallic substrate. This eliminates, with a simple click of the computer mouse, an otherwise daunting graphic designer task. Graphic designers often say they know how to cut white ink masks, and that software to eliminate the function is unnecessary expense. However, the cost of the license generally reduces designer time enough to repay the cost after only one or two jobs. The fact is that graphic designers often feel threatened by software, which eliminates what they see as creative effort on their part. Yet software should be viewed as a design tool. The Color-Logic technique is applicable to virtually any printing process. It enables users to create appealing packaging with metallic special effects.

One package printer that has made extensive use of the Color-Logic system is Oriel Printing, in Kingston upon Hull, England. Oriel’s in-house designers use the system to prepare files for a wide variety of clients, including hair care brand house Jemella, which uses metallic special effects to create packages calculated to connote value and luxury for its Good Hair Day line of hair straighteners. The Good Hair Day packages are offset printed on a Mirri metallic substrate. Turtle Run, a North American winery in Indiana, called upon Innovative Label Solutions (ILS) to produce striking metallic labels printed on an HP Indigo WS6000 for its range of wines. Says Jim Pfeiffer, Turtle Run owner: ‘I wanted the turtle to literally pop off the label. We experimented with foils and metallic inks, but nothing produced the effect I wanted. I found it difficult to explain to graphic designers what I wanted, and they had trouble executing. ‘Then a print salesman recommended Color-Logic. My printer thought it was just the ticket to let my labels reach their full potential, so I bought a copy of their design suite and gave it to my graphic designer. The label design they produced yielded the effect I had been trying to achieve, and after years of frustration, I finally got the look I wanted. Retail customers who see it in the wine shop love the new labels, as do those who visit the winery and buy from us direct.’ Label and package printers around the world are benefitting from the craft beer craze, and brewers are using metallics to accentuate their labels and packages. Early market leader, Wold Top Brewery, located in the Yorkshire Wolds region of England, used the Color-Logic process on a holiday carton offset-printed on a Mirri metallic substrate. The sparkling pack increased holiday sales by more than 30 percent, according to the brewery owners Tom and Gill Mellor. Metallics for security Metallics offer designers a quick and low-cost method of incorporating product security features into labels and packages. With the Color-Logic design suite, operators can insert an array of watermarks, dimensional effects, vignettes, and multicolor gradations into their designs. Most of these effects are extremely difficult to copy and cannot be accurately measured with conventional instruments, thus providing inexpensive first level security into the final printed product. Label and package producers should consider product design as part of their service offerings. Not only do design services increase job value, they make manufacturing operations more reliable, efficient, and predictable. By Danielle Jerschefske


Xeikon Café delivers tasty treats Xeikon’s latest Café event, held at its Antwerp HQ, saw the launch of a number of innovations which push forward digital possibilities. The 2015 edition of the Xeikon Café Packaging Innovations event saw more than 700 industry professionals descend on Antwerp to learn more about the possibilities surrounding digital printing, finishing and workflow. Hosted by Xeikon in collaboration with its 33 Aura industry partners (see info box), the three-day event was targeted not only at label and packaging converters, but at print buyers, marketers and brand owners. The event included an extensive technical conference program covering all aspects of digital production. A wide range of applications was demonstrated, ranging from folding cartons to self-adhesive labels, to heat transfer and in-mold labels. “Kurz showed for the first time its DM Liner, a machine for processing high gloss or holographic ‘Digital Metal’ foils over a toner-based adhesive” New developments Xeikon Café showcased two major industry firsts. Spartanics used the event to show for the first time its X-350 Laser Cutting Module, integrated into a SMAG E-Cut digital finishing line. This is the first practical result of a recently announced technology and marketing partnership between Spartanics and SMAG. Engineered to be integrated with both SMAG Graphique’s E-Cut and Digital Galaxie semi-rotary converting machines, the X-350 is a modular laser station that can cut materials up to 350mm wide at cutting speeds up to 100 (linear) m/min. It comes as standard with Spartanics’ Fastline and Optimization Control software that takes PDF or vector-based files and automatically turns them into laser cut files. The unit is available in either 200 or 400watt versions. The X-350 module

integrates seamlessly with Xeikon’s Vectorizor, an add-on to the company’s X-800 digital front-end. It produces the die-cut files based on the imposed labels and identifies them by name and barcode. This allows the laser cutter to understand and process the variability that a Xeikon digital press can generate and simplifies the production process. ‘This is the ultimate in flexibility,’ said Mike Bacon, VP of sales and marketing at Spartanics. ‘It gives customers the ability to add laser capabilities during the initial machine build or to add the laser module at some point in the future.’ The second major introduction was from Kurz, which showed for the first time its DM Liner, a machine for processing high gloss or holographic ‘Digital Metal’ foils over a toner-based adhesive. Paper sheets are first partially printed with dry toner, then the preprinted areas are coated with Digital Metal foil in the DM Liner unit. In the final step, the print media can be overprinted either digitally or conventionally to produce a wide variety of bold metallic colors. Since the pre-printing with toner is digitally controlled, it is possible to add personalized content, serial numbers or individualized design elements. The DM Liner can apply up to 30 meters of Digital Metal foil a minute and is suitable for paper with grammages between 90 and 350gsm. During the Xeikon Café event, DM-liner was demonstrated live applications including security and luxury cartons. ‘Digital Metal combines digital printing with coating and metal-transfer processes to create metallized surfaces, even for small runs or individual prints such as personalization,’ said Sonja Steffl, project manager Digital Metal at Kurz. ‘Our new technology around the DM-Liner is ideally suited to help Xeikon customers and brand owners to highlight how decorating digital print with real metal effects can impact the market.’ labelsandlabeling.com

SMAG’s Stephane Rateau demonstrates the E-Cut working with a Spartanics laser

The Kurz DM Liner – note Digital Metal roll


Rietstack machine finishing IM labels for thin walled containers

In-mold labels A major focus for Xeikon is the in-mold label (IML) sector, and a complete workflow was demonstrated from pre-press and digital print to converting. The Treofan Group demonstrated for the first time its EUH70 film for in-mold labeling of thin walled plastic containers. After pre-conditioning with a Michelman primer, the material is printed on a Xeikon 3500 with ICE toner. Running in-line with the press is a MiniUCoat500 which coats the prints with a water-based varnish from Actega before rewinding. Meech anti-static bars prevent the build-up of static. The reel with varnished prints is mounted onto a Rietstack converting unit for die-cutting. At the same time, Taghleef Industries demonstrated its LIG70 film for in-mold labeling of thick walled containers, also printed on a Xeikon 3500 with ICE toners with similar pre- and post-treatment. Self-adhesive labels The PS label industry is faced with a range of challenges that are also excellent opportunities for digital print and converting technologies. These include increased legislation requirements, greater versioning, language changes, more tactile and eye-catching finishes, and product security and authentication. Esko demonstrated a variable data printing application with logistics labels designed around the online ordering of bespoke shoes, and featuring a wide range of variable data including image, barcodes and logo of the shoe dealer. They were printed on the fly on a Xeikon Cheetah press equipped with spot color toner and in-line web varnishing module. Xeikon Vectorisor software drove the SEI Label Master off-line laser die-cutter to finish the labels. CERM MIS software creates the JDF job tickets used to control production. Several wine label demos showed the ability of the Xeikon 3300 press to print on textured label papers using an Alpine fuser drum. Individual serial numbers and an ATT seal vector formed security and track/trace features. Added value finishing was demonstrated on an ABG Digicon 3, including screen, cold foil and varnishing. Xeikon demonstrated its ColorMagic software on a clear health and beauty label: running on the X-800 front end, this automates the addition of the white layer in pre-press. A series of Peel & Reveal labels demonstrated a content management tool from KAN design which takes care of all legally required ingredient information during the design phase, making use of CHILI Publisher software. Heat transfer labels were also demonstrated. This application involves reverse

Xeikon in-line pre-coating module printing toners onto a liner, then transferring the image to the container using flame treatment. This again makes use of Xeikon’s ColorMagic software for automatic placement of white, as well as demonstrating VariLane, which allows the printing of labels with different sizes and SKUs along the web. Folding Cartons A range of integrated solutions dedicated to folding carton production were shown, including personalized pastry boxes facilitated by CHILI Publish and produced on a Xeikon 3500 digital press. A food-safe odorless varnish from Actega was applied to a Stora Enso substrate. “Several wine label demos showed the ability of the Xeikon 3300 press to print on textured label papers using an Alpine fuser drum” Finishing was carried out on a Zünd S3 Digital cutter, configured with automatic sheet-feeding. The integrated camera offers automated file retrieval through printed QR codes to maintain accurate print-to-cut registration. The S3 cutting instructions were generated by Xeikon’s Vectorizor software. A typical chocolate box was produced on a Xeikon 3500 with food safe QA-I and SuperBlack toners. Printed on a Stora Enso substrate and varnished with food safe water-based Actega coating, its decoration elements were applied by Kurz’s DM-liner foiling equipment (see above). The cartons were finished on a Highcon digital cut/crease unit. A coffee box with foiling and raised varnish was produced on a Xeikon 3500 digital press with an Actega varnish added on a Metsä Board substrate and finished on a Zünd cutting table. Bograma showcased its BSR 550 Servo rotary die-cutter for in-line finishing of digitally printed cartons. The unit can be configured for cutting, kiss-cutting, creasing, perforating, scoring and embossing in one-up or multiple-up mode. As well as pharma carton printing and finishing, a Xeikon 9800 digital press printed pharma leaflets on 40gsm uncoated roll-to-roll stock. The printed rolls were converted on an MBO finishing line. by Andy Thomas

Xeikon’s Aura partners Software: Advance Track & Trace, CERM, CHILI Publish, Esko, Hybrid Software, Label Traxx, OneVision Software, Fourpees.

nologies, Seilaser, SMAG Graphique, Tronics, Zünd. Consumables: ACTEGA Terra, Kurz, Michelman, RotoMetrics.

Equipment: AB Graphic International, Bograma, Esko, Grafisk Maskinfabrik A/S, Highcon, Kurz, MBO, Meech International, MOSS, Rietstack, Schobertech-

Print media: Avery Dennison, Metsäboard, Stora Enso, Taghleef, Treofan Group, UPM Raflatac.


TrojanTwo Digital Label Press Excites the Label Converters After the new TrojanTwo digital label press from Trojanlabel was introduced at Label Expo in Chicago in the fall 2014, close to 30 presses have been ordered by converters. Both small and large converters are among the customers, and Trojanlabel has increased their forecast to 125 digital presses delivered to customers in 2015. And during the next Labelexpo in Brussel The TrojanThree which is based on the successful TrojanTwo digital label press and will allow for speeds of up to 60 feet per minute, at 1600 DPI full color. The integration kit is designed to be leveraged by industry partners to support any type of media including roll-to-roll, cut sheets, envelops and even corrugated materials. Key features include the ability to support a wide range of paper-transport systems and 3rd party software via an API provided by Trojan. Label Converter, IkonPrint, Impressed by the Quality TrojanTwo is a state of the art digital roll-to-roll label printing system, capable of printing full color, high quality labels at low printing costs. This is one of the reasons why IkonPrint, a Danish label converter, was very excited when first seeing TrojanTwo in action. “I was really impressed with the quality of the print. Even when the color density in the print is high, the print is flawless and the colors are crisp. I wouldn’t expect this from a label press this size, and it is really fascinating to see how consistent the print is. I pretty quickly decided to buy the TrojanTwo” says Mr. Thomas Nielsen, the owner of IkonPrint. IkonPrint.

Etiquette Théophiles Saw Value for Money Etiquette Théophiles, a label converter in France, was in the market for a digital label press and was looking towards more expensive solutions when they came across TrojanTwo. “We were looking for high quality printing and did not want to make any compromises in this regard. TrojanTwo fulfilled our expectations and was furthermore more economic than other solutions we had been looking at. The 1600 x 1600 dpi resolution print was the best we had seen - even at an 18 m/minute printing speed. There is no doubt that TrojanTwo is value for money” says Mr. Régis Théophiles, owner of Etiquette Théophiles. TrojanTwo is servo-driven, with precision planetary gearheads, double sided frame for better platform stiffness; electronic webguide, two splice tables with magnetic clamps, contact cleaning system, an automatic tension system, and a capacitive 15.6” touch screen with user-friendly workflow software. The system is unique and includes a self-predictive and intelligent printhead servicing system using sophisticated usage algorithms, which maximizes up-time and delivers consistent print quality through long runs. The system is delivered with a comprehensive RIP.


ADJUSTABLE ANVIL CYLINDER The wide range of materials and ever thinner liners make special demands on all die-cutting components. Adjustable anvil systems permit a variable adaptation of the gap to the respective requirements. However, in some applications problems arise with conventional systems, in particular with cutting-through, larger working widths and high production speeds. After long research and development work, we present the GapControl® which overcomes these limitations. You can adapt the gap to your needs flexibly and with great accuracy. The system is convinding with highly precise double-sided gap adjustment and its particularly stable construction which even makes cutting through possible without any problems.

Easy and Flexible Handling

The GapControl® is very simple and flexible to operate. The unit has two control knobs on its frame which adjust the gap individually for the drive and operator side in order to compensate one-sided weat, inaccuracies in the cutting tool, as well as fluctuations in material thickness. The adjustment steps are less than a micron, so that even the smallest corrections can be made. Adjustment is possible both at a standstill and when the machine is running. The display of the adjustment elements is calibrated so that a display of “zero” (0000) coresponden to gap of 480 microns. If the knob is turned in the plus direction, the cutting pressure is increased (the gap gets smaller). If the knob is turned in the minus direction, the cutting pressure is decreased because the gap between the cylinders become greater.

Advantages ● ● ● ● ●

Very stable and low-maintenance system Cutting-through also possible with no problems No resonance/vibration problems No temperature increase in cylinder Simple installation and removal

● Solid, Hardened Cylinder ● Supported by Hardened Support Roller or blocks ● Bearer Ring Running Free on Underside ● Ball Race in bearer rings with minimum tolerance (through compression from above)

Cutting tool GapControl Support roller Sketch : Pressure course (transferred from above through the bearer rings to the support roller)


Molding Skills Drive IML Growth in North America Quebec-based Aspasie has leveraged its molding skills for the international beauty market to diversify into in-mold label production. Hair color experts satisfy clients in salons around the world using the tools produced by Aspasie in Three Rivers (Trois-Rivieres), Quebec, Canada. Aspasie has been a supplier to the international professional hair coloring market for 45 years, manufacturing a wide variety of materials for international beauty care brands such as L’Oréal, Clairol, Shiseido, Kao and Estee Lauder, to name a few.

business unit converts in-mold labels for plastic molders throughout North America in home improvement, industrial and dairy markets. Initially the growth strategy focused on the greater health and beauty sector. Food has become the leading market served, accounting for around 70 percent of the business.

Hair color swatch with IML

Aspasie has invested in two new Heidelberg Speedmaster offset presses over the last ten years. One is dedicated to printing in-mold labels; the other produces printed color guide details for the hair swatch books. To convert the labels Aspasie uses a sheet-fed system by Bobst and a counter pressure cutting system. It has an in-house flatbed die shop to make tooling for finishing.

The company has a dedicated injection molding plant and the machinery to produce printed color charts, handheld color fans, color rings, binders and hair swatch pieces. It also has the capacity to produce point-of-purchase display kits for professional and consumer retail stores. The company’s long-standing experience in servicing international beauty brands and aptitude in plastic molding guided the business into in-mold label production in 2007. Francis Belleau, Aspasie business unit manager, IML, explains: ‘We used IML in the displays for our business and realized there were expansion opportunities where we could leverage our strength in molding technology and diversify our production in a niche, high growth-rate area.’ Move into IML The company reports tremendous growth over the last two years thanks to its focus on in-mold packaging development in the region. The Aspasie IML

Kemps frozen yogurt shop Raspberry Chocolate container with IML

Belleau is a former technician in the Aspasie injection molding shop and has the ability to communicate accurately with clients. He works closely with the Aspasie in-house design team and molding R&D experts.

He says: ‘We speak the same language and are able to provide clients with technical advice on the best practices in the IML process. Our injection molding depart-

ment is very helpful for conducting R&D. It speeds development since we don’t need a customer to do that for us. The brand owners and retailers for all consumer products want better service and faster lead-times. Our goal is to give them better service. We have been able to bring this promise to the value chain in North America because of our unique assets.’ By Danielle Jerschefske


IML Appeals in North America

AtAtAWA’s AWA’sIMLCON, IMLCON,the theconsensus consensuswas wasthat that in-mold in-mold labels labels are are increasingly increasingly finding finding their their way way into into the the market market asas brands brands seek seek differentiation,. differentiation,. Major Majorbrand brandowners ownersininNorth NorthAmerica Americaare are adopting adopting IML IML onon aa large large scale, scale, there there byby increasincreasing ing demand demand forfor aa reliable reliable local local supply. supply. Currently, Currently, the themajority majorityofofin-mold in-moldlabels labelsused usedininNorth North America America are are imported imported from from Europe. Europe. Jon JonKnight, Knight,managing managingdirector directorofof Treofan TreofanNorth North ‘There ‘Thereare arevery verypositive positive America, America, revealed: revealed:

developments developmentsfor forIML IMLininthe theregion. region. We’re We’re experiencing experiencing growth growth rates rates ofof around around 2020 percent. percent.There’s There’s aa great great opportunity opportunity for for converters converters willing willing toto make makethe theinvestment.’ investment.’

A Achanging changingcontainer containershape, shape,moving movingaway away from fromround roundand andinto intosquare, square,is isone oneofofthe thetop top thatIML IMLis isgaining gainingtraction tractionamong among reasons reasonsthat majorbrands. brands. Thedairy dairyand andice icecream creammarkets markets major The havebeen beenleading leadingthe theway wayininadoption, adoption,while while have othersectors sectorssuch suchasaspaints, paints,pet petfood foodand and other ready-to-eatfoods foodsare arealso alsofinding findingvalue valueininthe the ready-to-eat decorationtechnique. technique. Knightcontinued: continued: ‘Philadecoration Knight ‘Philadelphia cream cream delphia cheese moved moved cheese IML4-5 4-5years years totoIML Precision Press produced ago inin North North ago laminated structure that America. UnileUnileAmerica. works as both floor and wall of IML package verre-launched re-launched ver Can’tBelieve Believe I ICan’t Not Butter, Butter, It’sIt’s Not changing the the changing recipe and recipe and movingtotoIML IMLinin moving ordertotore-enerre-enerorder gize that brand. gize that brand. ‘Whenyou yousee see ‘When the big big brand brand the

MuCell gives 3D effect to IML

owners make the switch, that’s when we feel the owners make the switch, that’s when we feel the impactofofthe thegrowth. growth. Weare areregularly regularlyexperiexperiimpact We encingmajor majorbrands brandsundergoing undergoingIML IMLupgrades upgrades encing enhance their product’s value.’ toto enhance their product’s value.’ Since Sincea ahigh highpercentage percentageofofIML IMLfilms filmsand andIML IML containers containersare arePP-based, PP-based,the theregion regionwould would benefit benefitfrom froma amore morestable stabledomestic domesticsupply supplyofof propylene. propylene.Knight Knightsaid: said:‘This ‘Thiswould wouldlower lowerthe the prices pricesofofpolypropylene polypropyleneand andmake makeIML IMLmore more competitive inin the region.’ competitive the region.’ Duncan DuncanHenshall, Henshall,market marketdirector directorforforTaghleef Taghleef Industries, Industries,discussed discussedthe theaesthetic aestheticappeal appealofof IML: IML:‘New ‘Newmaterials materialsthat thatprovide providemarketing marketing appeal appeallike likea ametallic metalliclook lookand andtextures texturesthat that give aa tactile feel are winning brand favor.’ give tactile feel are winning brand favor.’ Taghleef Taghleefintroduced introduceda ametallic metallicIML IMLfilm filmininlate late 2014. 2014.It Itcommercialized commercializedthe thefilm filmwith withsuccess successinin Southeast Asia prodSoutheast Asiaforfora afitness fitnessenhancement enhancement product uctseries seriesand andis iscurrently currentlyworking workingonona alarge large project inin North America. project North America. Management Managementofofthe thesurface-printable surface-printablemetallic metallic IML IMLfilm filmthroughout throughoutthe theproduction production process processis is qualitycontrol controltoto difficult difficultand andrequires requiresacute acutequality overcomecurl curland andscratch scratchmitigation. mitigation.Static Static overcome must mustbe beclosely closelymonitored monitoredduring duringprinting, printing, converting convertingand andapplication applicationbecause becausethe the films filmsbehave behavedifferently differentlythan thanstandard standardIML IML films. films. IML film light weighting is a common trend just IML film light weighting is a common trend just asasit itis iswith withpressure-sensitive pressure-sensitivematerials. materials.Most Most suppliers suppliershave haveincreased increasedthe theyield yieldofofthe thefilm film atat different different densities, densities, offering offering roll-to-roll roll-to-roll options optionsdown downtoto4040microns. microns.Brand Brandowners owners are are constantly constantly looking looking forfor differentiation differentiation opportunities. opportunities.Henshall Henshallsaid: said: ‘Functionality ‘Functionality enhancements enhancementsand andinnovation innovationwill willcontinue continue toto drive growth inin IML product drive growth IML productdecoration.’ decoration.’

Taghleef metallic IML on nutraceutical product for Southeast Asia


Food Safety As IML is still considered a gray area in food safety regulations, it’s safer to conduct regular extraction testing at an approved location.

Mu Mu Cell Cell technology technology makes makes it possible it possible toto produce produce aa 3D3D effect effect inin in-mold in-mold labels. labels. The The MU MU Cell Cell process process incorporates incorporatessmall smallamounts amountsofofa afoaming foamingagent agent into intothe the40-micron 40-micronpolymer polymerfilm filmtotocreate createa a microcellular microcellular foam foam structure. structure. When When the the label label and and container container are arede-molded, de-molded, the the gas gas that that created created the the cell cell structure structure migrates migrates out, out, keeping keeping the the label label from from bonding bonding toto the the container. container. Functional Functional aspects aspectssuch suchasasbraille braillecan canbe beimplemented implemented using using this this technology. technology. Yupo Yupo Corporation Corporation also alsohas has aa 3D3D offering offering forfor IML. IML. Functional Functional IML IML Lamination Lamination expands expands the the purpose purpose and and uses uses ofof IML IML bybybuilding buildingcustomizable customizablefunctionality functionalityinto intoIML IML labels. labels. Functional Functional lamination lamination may may feature feature silicone silicone oxide oxide oror nano nano coatings coatings toto improve improve prodprodlifespan. span. Precision PrecisionPress Pressuses uses uct uct protection protectionand andlife web weboffset offsetpresses pressesforforin-line in-linesolvent solventlamination. lamination. Tim TimGoserud, Goserud, director directorofofsales salesand andmarketing marketingforfor Precision PrecisionPress, Press,said: said: ‘The ‘Theconfiguration configurationallows allowsusus totodo dothings thingswith withlamination laminationwith withmuch muchmore more ease easethan than other other methods methods ofof printing. printing. We We believe believe that that offset offset litho litho is is the the best best forfor high high quality qualitygraphgraphicsicsforforfood foodpackaging packagingand andwe wecan cangang gangthe the artwork artworktotoprovide providelower lowerplate platecosts.’ costs.’ For For aesthetic aesthetic purposes, purposes, matte, matte, satin, satin, gloss gloss and and pearlpearlized izedlaminates laminatesare arereadily readilyavailable availablein-mold in-mold labels. labels.

mulation, mulation,seasonal seasonalchanges, changes,temperature temperatureand and humidity, humidity,are areimportant importantforformaintaining maintainingconsistconsistency encyininIML IMLproduction. production.Data Datacollection collectionallows allows managers managersand andoperators operatorstotoevaluate evaluateand anddraw draw conclusions conclusionsthat thatwill willreduce reducewaste, waste,improve improve quality quality and and increase increase profitability. profitability. Valerie ValerieJean-Louis, Jean-Louis,operations operationsmanager, manager,IML IML Labels, Labels, is is tasked tasked with with driving driving continuous continuous improveimprovement mentacross acrossthe theconverter’s converter’s organization. organization.‘By ‘By understanding understanding our our process process we we are are able able toto better better guide guideour ourcustomers customersononthe theproject projectthey theywere were working working on,’ on,’ hehe explained. explained. ‘IML ‘IML is more is more than than just just aa label. label. It It has has aa functionality functionality attached attached toto it and it and we we constantly constantly work work with with key key suppliers suppliers and and molders molders toto gain gaininternal internalknowledge knowledgeininorder ordertotoface facethe the expectations expectations ofof our our clients.’ clients.’

Matt MattFyffe Fyffeofofstatic staticcontrol controlsystems systemsprovider provider Meech MeechInternational Internationalexplained explainedthe theadvantages advantages ofofstatic staticpinning, pinning,yet yetcautioned cautionedthe theaudience audience about about using using materials materials with with conductive conductive properties properties that thatreduce reducepinning pinningstrength. strength. He Hesaid: said: ‘The ‘Thelabel label design design is is one one ofof the themost most important important things things when when it itcomes comestotohaving havingproper properpinning. pinning.Metalized Metalized layers layersororconductive conductiveinks inksshould shouldbe beavoided. avoided. Label Label providers providers specializing specializing inin IML IML have have done done the the research researchand andgone gonethrough throughthe thepains painsofofknowlknowledge edgegain gaintotoprovide providelabels labelswith withthe theproper proper insulative insulative properties properties toto allow allow forforstatic static pinning pinning toto Flexibility Flexibility and and control control be besuccessful. successful.It’sIt’scritical criticalforforpressure-sensitive pressure-sensitive Filip Filip Weymans, Weymans,market marketdevelopment developmentdirector directorforfor providers providerslooking lookingtotomove moveinto intothis thisspace spacetoto Xeikon, Xeikon, promoted promoted the the importance importance ofofincreasing increasing understand understand this this piece piece ofof the the process.’ process.’ flexibility flexibilitywithin withinpackage packageprinting printingproduction. production. ‘When ‘Whenfinding findinga acomplementary complementarytechnology technologytoto Taras TarasKonowal, Konowal,managing managingpartner, partner,Fame FameTechTechconventional conventional (offset) (offset) printing, printing, the the major major technoltechnol- nology nologySolutions, Solutions,the theUSUSdistributor distributorforforMuller, Muller,a a ogy ogyused usedforforIML IMLproduction, production,it’sit’simportant importanttoto Swiss Swisscompany companythat thatmakes makes inspection inspectionsystems systems have have inks inksoror toners toners that that are are compatible compatible with with the the specifically specifically forfor thin thin wall wall rigid rigid packaging packaging and and IML, IML, application,’ application,’ hehe said. said. stressed stressed the the importance importance ofof identifying identifying the the aspects aspects ofof the the packaging packaging that that must must be be Xeikon Xeikon has has developed developed aa specific specific ICE ICE toner toner forfor IML IML checked. checked.Konowal Konowalsaid: said:‘Define, ‘Define,inindetail, detail,with with applications applicationsand andhas hasconducted conductedtesting testingwith with the the end end customer customer what what the the tolerance tolerance range range is for is for both bothInnovia Innoviaand andTreofan Treofanmaterials. materials. The Theroll-fed roll-fed quality.’ quality.’ If the If the printer printer inspects inspects the the graphics graphics before before dry drytoner tonerdigital digitalprinting printingpress presshas hasa avariable variable distribution, distribution,it itis isunnecessary unnecessarytotocheck checkthem them repeat repeatlength lengththat thatallows allowsusers userstotoproduce producevery very again againatatthe thenext nextphase phaseofofthe theprocess. process.Muller Muller large largelabels labels forformulti-gallon multi-galloncontainers containersand and offers offersadvanced advancedbarrier barrierlayer layerdetection detectionsystems systems popcorn popcorn tubs, tubs, aa feature feature that that is is limited limited with with other other forforin-line in-linereview reviewofoflabels labelsonce oncethey’re they’reapplied applied press presstechnologies. technologies.With Withsome someofofthe theinherent inherent toto the the container container atat the the molding molding stage. stage. qualities qualitiesofofdigital digitalprinting, printing, the thetechnology technologygives gives users usersthe theability abilitytotoproduce producetrial trialand andmock-up mock-up InInsummary, summary,the theanticipated anticipatedlevel levelofofIML IMLadopadopsamples samples ofof IML-decorated IML-decorated projects. projects. tion tion inin North North America America is is worth worth investigating. investigating. While While than than converting converting the the the the process process is more is more complex complex Building Buildinginternal internalknowledge knowledgeand anddocumenting documenting average averagepres pressure-sensitive sure-sensitivelabel, label,forforconverters converters the thedetails detailsofofproduction productionprocesses, processes,consumaconsuma- looking looking totodiversify diversify and and find find new new growth growth markets, markets, ble blebehaviors, behaviors,external externalfactors factorslike likestatic staticaccuaccu- IML IML could could fulfill fulfill the the objective. objective. ByBy Danielle Danielle Jerschefske Jerschefske

“When you see the big brand owners make the switch, that’s when we feel the impact of the growth. We are regularly experiencing major brands undergoing IML upgrades to enhance their product’s value”


Labels Specifications The packaging engineer must begin to collect data from all the team members at the beginning of a labelling project in order to select and specify the best material and label supplier for the project. If all requirements fully documented, this information will provide suppliers all the information needed to recommend the best material option and an accurate quotation for the project.

The information required is summarized below, listing all the areas of consideration where information is to be provided by team members. The lists contain information that applies to all types of labeling formats and applications and are intended to be used for new package designs. No individual labeling project will require everything listed.

1. Sensory Considerations Visual : Clear, Translucent, Opaque, Glossy, Matte, Flat, Artwork Touch : Smooth, Textured, Flexible Smell : Cratch’n Sniff Labels, Scented Plastics

2. Decoration Considerations Target Volume : Low, Medium, High Printing Process : Flexo, Gravure, Digital, Letterpress, Die Cutting, Scrap Removal Artwork : Number of Colors/Coatings/Effects/Embossing, Registration “Eye Spots” Label Type : Pressure Sensitive, In Mold, Wraparound, Shrink, Roll On Shrink On, Booklet Special Requirement : Hot Stamping, Silk Screening, Holographic Image, Special Inks, UV Curing, Distortion Printing, Print Trapped in Lamination


3. Primary Package Requirements Specification : Engineering Drawing indicating all Container Dimensions and Geometry Material (s) : Container Material, Colorants, Additives (UV inhibitors, Anti-Stats, Fillers, etc) Pre-Labeling Treatment : Flame Treating, Corona Treating, etc. (this may not become obvious until after label adhesion testing)

4. Product Interface Considerations Compatibility : Compatibility with the Material, Graphics and Adhesive (if required)

5. Technical Requirement Considerations Technology : RFID, EAS, Printed Electronics

6. Machinery Considerations Printing : Number of Color/Coating/Hot Stamping/Silk Screening Stations, Laminating, Die Cutting, Scrap Removal Labeling : Machine Speed, Roll Width, Max Roll Diameter, Core ID, Backing Material Strength, Coefficient of Friction, Static Charge, Adhesive Application

7. Secondary Processing Considerations Process : Sterilization, Retorting, Radiation, etc

8. Life Cycle Performance Requirements Physical : Scruff Resistance Environmental : Temperature, Atmospheric Pressure

9. Regulatory Requirements Artwork : Required Minimum Type Sizes Copy : Cautionary Language, Use Instruction, Multiple Languages, Environmental Markings, Date Coding, Expirations Dating, “Best Used By� Dating


Corrugated Manufacturers Play an Important Role in Walmarts’s Success at Retail As the world’s largest company, Walmart is one of the biggest users of corrugated packaging and displays on the planet. With more than 6.100 retail locations across 26 countries its footprint is enormous. Net sales last year were $473 billion. Marketing consultants worldwide have praised Walmart’s retail strategy, calling it both brilliant and shrewd. With 90% of Americans living within 15 miles of a Walmart store, it’s often difficult not to shop there. In any given week, the U.S. stores attract nearly 140 million shoppers. Globally, 250 million customers are served weekly. Walmart’s recent Global eCommerce initiative could further expand its footprint and boost earnings significantly, effectively challenging the market share of on-line retailers like Amazon. Corrugated packaging, displays and signage are closely tied to Walmart’s success at retail.

With the majority of consumers making their purchasing decisions in the store, packaging and displays often have a major influence on what they put in their carts. Walmart and its vendors want to deal directly with manufacturers to eliminate unnecessary costs and burdensome processes. It reinforces their Everyday Low Price culture.”

This display is an example of bay cities recent initiative with Walmart’s toy category

Everyday Low Price Any company that supplies product to Walmart must be intimately familiar with the EDLP business model or they will struggle. With EDLP, suppliers often find themselves caught in the middle, with high quality products and profitability pitted against lower margins. “They do take Everyday Low Price seriously,” From a margin standpoint it seem very fair. Retailer expect converter to produce a product that give them an everyday low cost. While converter must try to continuously make better and more competitive product at a low cost.” Vanguard manages all of the displays that go into Walmart’s Black Friday event. “That’s about 300 projects that have a lifespan of a day.


Food and beverage industry


Consumer Trend and Digital Packaging Declining Declining RunRun Lengths, Lengths, Short-run Short-run printing printing in packaging in packaging is increasing is increasing is attributable is attributable to ato a number number of factors. of factors. TheThe first first is the is the proliferation proliferation of SKUs of SKUs (stock (stock keepkeeping ing units). units). Instead Instead of one of one long long run run of packaging of packaging for for a single a single SKU,SKU, there there areare now now different different variations variations of a of basic a basic package package design design created created for each for each related related SKU.SKU. TheThe bestbest example example is perhaps is perhaps toothtoothpaste. paste. If you If you visitvisit thethe toothpaste toothpaste aisle aisle of a of grocery a grocery store store thatthat where where once once there there would would have have been been a single a single SKUSKU for for a brand a brand of of toothpaste—and toothpaste—and now now a dozen a dozen or or more more smaller smaller SKUs: SKUs: Extra Extra Whitening, Whitening, Tartar Tartar Control, Control, Sensitive Sensitive Teeth, Teeth, Sensitive Sensitive Teeth Teeth withwith Extra Extra Whitening, Whitening, Sensitive Sensitive Teeth Teeth withwith Extra Extra Whitening Whitening andand Tartar Tartar Control, Control, Extra Extra Powerful Powerful Sensitive Sensitive Teeth Teeth Whitening Whitening withwith Extra Extra Zesty Zesty Tartar Tartar Control Control MintMint Flakes Flakes andand Spam… Spam… andand on on andand on. on. Each Each of of those those SKUs SKUs thusthus needs needs its own its own smaller smaller packaging packaging run.run. Other Other factors factors affecting affecting run run length length include include experimentation experimentation withwith package package designs—to designs—to determine determine which which package package will will have have thethe most most effective, effective, Product Product for campaign for campaign or test or test market. market. Then Then there there is…is… Customization & Personalization, Customization & Personalization, potatoes brand crisps, Walkers Walkers Uk Uk potatoes brand crisps, - launched campaign whereby 2,000 launched a a campaign whereby 2,000 entrants could their names a unique entrants could getget their names or aorunique message printed on bags of crisps. (Twelve message printed on bags of crisps. (Twelve of these entrants actually used personof these entrants actually used thethe personalized bags to propose marriage.12 Make alized bags to propose marriage.12 Make of that what will.) a fair assumpof that what youyou will.) It’s It’s a fair assumpimages of any or all of these tiontion thatthat images of any or all of these personalized items ended Facebook, personalized items ended up up Facebook, Instagram,or orPinterest. Pinterest.Such Suchhashas Instagram, become power of social become thethe power of social media. media. point is that these types TheThe point is that these types of of personalizationefforts effortshelp help personalization build brand loyalty build brand loyalty andand in in some ways gives consumers some ways gives consumers something a stake in the something of aofstake in the brand. these types brand. AndAnd these types of of one-to-one packages one-to-one packages cancan produced digitalonlyonly be be produced digitally. ly. Ecommerce Role Ecommerce andand the the Role of Packaging of Packaging It should come It should come as as no no surprise anyone surprise to to anyone thatthat ecommerce been ecommerce hashas been on on According thethe rise.rise. U.S.U.S. According to to Census Bureau, in Q4 thethe Census Bureau, in Q4 2014. Some Some products 2014. products now even more now even soldsold more on on internetthan thanon on thetheinternet shop. example shop. For For example a a bricks-and-mortar. Prices bricks-and-mortar. Prices tendto tobe becheaper cheaper tend

lin well; o no line , e, as as well; some retailers retailers have comsome have complainedabout aboutbeing beingthethe“showroom “showroomfor for plained Amazon”: shoppers scope a product Amazon”: shoppers scope outout a product likelike a a screen TVother or other large electronic item flat flat screen TV or large electronic item at aat a physical store, then order it more cheaply physical store, then order it more cheaply online—sometimes right in the store from their online—sometimes right in the store from their cellphone, cellphone, Ecommerce opens doors to new opporEcommerce alsoalso opens thethe doors to new opportunities for digital short-run packaging. tunities for digital short-run packaging. Ecommerce facilitated growth of small Ecommerce hashas facilitated thethe growth of small “boutique” businesses solve andand “boutique” businesses andand cancan solve oneone of the knottiest problems product manof the knottiest problems thatthat anyany product manufacturer distribution. These companies ufacturer has:has: distribution. These companies cancan


Sample Corrugated Box By AUTOBOX BCS

Sample Corrugated Box By XANTE

now now sell sell directly directly to the to the consumer consumer online online without without worrying worrying about about selling selling intointo anyany kindkind of retail of retail store. store. These These small small companies companies don’t don’t need need hundreds hundreds of of thousands thousands of of packages—maybe packages—maybe onlyonly a few a few hundred hundred or at or most at most a few a few thousand thousand at a at time a time would would suffice. suffice. Many Many solve solve this this withwith labels, labels, butbut as as low-cost low-cost short-run short-run corrugated corrugated andand other other types types of of packaging packaging printing printing becomes becomes more more andand more more feasible, feasible, it opens it opens up up opportunities opportunities for for small small comcompanies panies to to have have packaging packaging thatthat matches matches what what much much larger larger consumer consumer goods goods companies companies cancan produce. produce.

• •Changes Changes in the in the purpose purpose of packaging, of packaging, from from simply simply being being a container a container for products for products to an to an increasingly increasingly crucial crucial piece piece of adverof advertising, tising, marketing, marketing, andand brand brand managemanagement; ment;

Adapting Adapting to These to These Trends, Trends,

• •TheThe ability ability to customize to customize packaging packaging thusthus target target it, laser-like, it, laser-like, in ain variety a variety of ways, of ways, from from geography geography to the to the type type of store of store a a product product is sold is sold in; in;

Brand Brand owners owners andand thethe various various linkslinks in the in the supply supply chain chain have have no no control control over over these these consumer consumer trends. trends. All All they they cancan do do is respond is respond to them, to them, andand adapt adapt their their own own processes—creative processes—creative andand producproduction—to tion—to thethe bestbest advantage. advantage. Digital Digital processes processes have have become become ideally ideally suited suited to to helping helping print print providers providers help help brand brand owners owners capitalize capitalize on on shortshorter-run, er-run, customized, customized, personalized, personalized, andand just-in-time just-in-time packaging. packaging.

• •TheThe demand demand for for an an environmentally environmentally sustainable sustainable supply supply chain; chain; • •TheThe proliferation proliferation of SKUs of SKUs andand sub-SKUs, sub-SKUs, or or different different variations variations of of thethe same same basic basic product product (the(the toothpaste toothpaste variations); variations);

• •TheThe ability ability to personalize to personalize individual individual packpackages ages (à la (àCoke, la Coke, Wheaties, Wheaties, or Walkers); or Walkers); • •TheThe emergence emergence of smart of smart packaging packaging thatthat cancan addadd interactive interactive media media or electronic or electronic capabilities capabilities to packaging. to packaging.

These These may may seem seem likelike a wildly a wildly disparate disparate group group of of Understanding Understanding these these demographic demographic changes changes andand trends, trends, butbut there there is one is one common common denominator denominator to to thethe effects effects they they areare having having on packaging on packaging is is them them all: all: they they cancan all all be be facilitated facilitated by by digital digital important important background background information information to have, to have, butbut printing. printing. it’s it’s important important to look to look at the at the practical practical sideside of what of what all all this this means. means. How How cancan thethe printer/converter, printer/converter, Admittedly, Admittedly, packaging packaging hashas been been a traditionally a traditionally armed armed withwith this this information, information, be be more more of aofpartner a partner tough tough market market for new for new players players to get to get into. into. to the to the brand brand owner, owner, helping helping them them achieve achieve their their There There areare substantial substantial barriers barriers to entry, to entry, notnot onlyonly in in objectives objectives andand streamline streamline production? production? OpportuniOpportuni- terms terms of equipment of equipment investment, investment, butbut tiesties abound abound for for print print service service providers providers in packagin packag- alsoalso navigating navigating thethe regulatory regulatory landscape, landscape, as well as well ing,ing, andand a comprehensive a comprehensive looklook at how at how to break to break as gaining as gaining thethe trusttrust of consumer of consumer products products intointo thatthat market. market. companies companies andand other other brand brand owners owners who who often often seesee their their packaging packaging lineslines as proprietary as proprietary TheThe New New Supply Supply Chain, Chain, manufacturing manufacturing processes. processes. Where Where does does this this all leave all leave us?us? WeWe have: have: But But as few as few traditional traditional packaging packaging printers/convertprinters/convert• •Changes Changes in consumer in consumer behavior behavior driven driven by by ers ers have have a background a background in digital in digital andand how how to leverto lever(or (or perhaps perhaps driving) driving) changes changes in technoloin technolo- ageage digital digital technologies technologies to take to take advantage advantage of the of the gy, gy, such such as as on-the-go on-the-go lifestyles, lifestyles, greater greater major major packaging packaging trends trends outlined outlined in this in this white white time time constraints, constraints, andand thethe desire desire to be to be seen seen paper, paper, thethe door door is open is open for for those those withwith digital digital as individuals; as individuals; expertise. expertise. Whether Whether it be it be in label in label printing printing or inorother in other forms forms of short-run of short-run packaging, packaging, brand brand owners owners areare • •Changes Changes in in consumer consumer demographics, demographics, looking looking for not for not just just packaging packaging printers, printers, butbut partners partners such such as as more more single-person single-person households, households, in brand in brand management. management. AndAnd thethe savvy savvy print print providprovidespecially especially among among seniors; seniors; er who er who cancan service service those those needs, needs, supported supported by by a a different different business business model model thatthat embraces embraces mobile mobile technology technology a laaUber la Uber or Airbnb, or Airbnb, may may be be just just what what thethe brand brand owner owner is looking is looking for.for.


Digital Printing Equation It may be difficult to see through the hype surrounding digital printing, because the actual packaging market penetration by percentage is still quite low. Its early success has been in labels for food and beverage products, but it is poised to

move to other categories and other substrates, such as folding cartons and flexible. It’s important to plan ahead and think of all the factors that warrant consideration when preparing to go digital.

1. Run 1. Run Size, Size,

Digital Digital printing printing is growing is growing in markets in markets thatthat require require specialized, specialized, frequently frequently updated updated labels labels likelike wines wines andand craft craft beers. beers. Small Small brands brands or or brands brands withwith many many SKUs SKUs benefit benefit most most from from digital digital printing. printing. TheThe short short changeover changeover times times andand reduced reduced material material waste waste cancan make make it an it an economically economically advantageous advantageous option. option. TheThe run run numbers numbers areare getting getting higher higher as to as competitiveto competitivenessness on on price price andand lower lower as to as competitiveness to competitiveness on speed. on speed.

2. Speed 2. Speed to to Market, Market,

Traditional Traditional print print methods methods likelike flexogflexographic, raphic, gravure gravure andand offset offset sometimes sometimes take take weeks weeks to prepare to prepare thethe plates plates or rolls or rolls andand getget thethe printer printer run-ready. run-ready. CPG CPG companies companies these these days, days, whether whether through through poor poor planning planning or for or for a competitive a competitive advantage, advantage, can’t can’t waitwait more more than than a few a few days days before before getting getting new new designs designs outout thethe door, door, especially especially withwith seasonal seasonal or or promotional promotional campaigns. campaigns.

3. The 3. The Cost Cost of of materials, materials,

In aInway, a way, comparing comparing digital digital to flexo to flexo is comis comparing paring apples apples to oranges, to oranges, butbut careful careful consideration consideration of all ofthe all the numbers numbers reveals reveals where where thethe costcost savings savings cancan be be realized. realized. Settle Settle on on thethe costcost of materials of materials first first andand then then compare compare total total costs. costs. Waste Waste as already as already menmentioned tioned is aissignificant a significant factor factor in assesing in assesing printing printing costs costs long-term. long-term. Standard Standard overrun overrun percentages percentages areare often often lower lower withwith digital digital andand withwith thethe ever-changing ever-changing demands demands of customers of customers andand retailers, retailers, labels labels in storage in storage often often become become obsolete obsolete andand thatthat cancan be be a substana substantial tial lossloss to absorb. to absorb.

design examples that print directly on the bottle

4. The 4. The Cost Cost of of Time, Time,

TheThe cost-of-time cost-of-time equation, equation, both both short-term short-term andand long-term long-term is being is being scruthinized scruthinized more more andand more more these these days. days. TheThe limiting limiting factor factor in any in any production production chain chain cancan clog clog up up design design andand management management processes processes in unseen in unseen ways. ways. It’s It’s difficult difficult to focus to focus intently intently on on thethe next next project project when when thethe current current oneone is on is hold on hold or held or held up in upprepress. in prepress.

5. Variability 5. Variability of of SKUs, SKUs,

Beverage Beverage companies companies withwith many many flavor flavor varieties, varieties, dietdiet options, options, andand performance performance lineslines cancan seesee thethe benefits benefits of localized, of localized, on-demand on-demand printing. printing. But But even even without without a multitude a multitude of SKU’s, of SKU’s, many many upstart upstart brand brand owners owners areare introducing introducing multiple multiple design design within within a single a single SKU.SKU. A wine A wine maker maker for for instance, instance, packed packed every every case case of one of one varietal varietal withwith 12 different 12 different label label designs, designs, albeit albeit all aligned all aligned in aintheme. a theme. design examples that different one varietal with different label designs, albeit all aligned in a theme.


6. International 6. International Presence, Presence,

Even Even if foreign if foreign expansion expansion is only is only on on thethe horizon, horizon, it isitworth is worth factoring factoring intointo your your long-term long-term printing printing plans. plans. Foreign Foreign language language requirements requirements on packaging on packaging continue continue to evolve to evolve andand become become more more specific. specific. Digital Digital is aisgo a go to solution to solution for for national national brands brands expanding expanding intointo international international markets, markets, because because even even dominant dominant players players somesometimes times have have to start to start withwith small small volumes. volumes. Plus,Plus, they they want want to appear to appear committed committed to the to the market market withwith wellwell designed designed andand wellwell produced produced multimultilingual lingual packages. packages. For For those those compacompanies, nies, asset asset management management software software is is alsoalso a must. a must.

7. Promotion 7. Promotion Opportunities, Opportunities,

TwoTwo examples examples of consumer of consumer directed, directed, design design your your own own package package areare telling. telling. Heineken Heineken beer beer in Europe in Europe hashas run run several several campaign campaign thatthat allow allow customers customers to order to order six packs six packs of beer, of beer, through through thethe mailmail thatthat arrive arrive withwith thethe customer’s customer’s own own personal personal designs. designs. Jones Jones Soda Soda in the in the U.S U.S usesuses onlyonly customer customer submitted submitted label label designs designs on on their their products. products. Fans Fans send send in in picture picture andand Jones Jones decides decides which which to to useuse in broad in broad distribution. distribution.

8. High 8. High End End Effects, Effects,

Digital Digital printing printing does does notnot allow allow as much as much expandability expandability to add to add effects, effects, embossing, embossing, or die or die cutting cutting in line. in line. However, However, more more brand brand owners owners areare testing testing outout thethe costcost efficiency efficiency of of “combination “combination printing” printing” , which , which runsruns thethe packaging packaging substrate substrate through through twotwo different different print print cycles. cycles.

9. Comfort 9. Comfort with with Your Your Print Print Provider Provider

Be Be careful careful thatthat your your print print provider provider is knowledgeable is knowledgeable in digital in digital printing printing inks.inks. TheThe chemistry chemistry of digital of digital inksinks cancan be be tricky tricky because because of the of the wayway inksinks adhere adhere to the to the substrate. substrate. Different Different substrates substrates have have different different “surface “surface tensions” tensions” regarding regarding thethe energy energy of the of the ink ink transfer, transfer, its adhesion its adhesion andand thethe postpost printing printing treatment. treatment.

10.10. Converter Converter Flexibility Flexibility

Plan Plan ahead, ahead, it’s common it’s common now now to start to start printing printing on digital on digital andand as volumes as volumes increase, increase, switch switch over over to to flexo flexo printing. printing. Sometimes Sometimes digital digital is used is used as aastest a test run,run, a what a what youyou should should expect expect their their practices practices to be. to be. Make Make suresure your your printer printer guarantees guarantees a seamless a seamless substitution substitution withwith proof proof copies copies andand production production run run samples. samples. Once Once they they have have proven proven a high a high level level of quality of quality assurance, assurance, they they may may notnot by agreement by agreement alert alert customers customers of when of when they they substitute substitute digital digital for flexo. for flexo.

11.11. Cross Cross Substrate Substrate Color Color Matching Matching

Be aware Be aware thatthat it’s not it’s not always always easy easy to match to match what what waswas produced produced digitally digitally withwith a different a different process process on different on different substrates, substrates, such such as flexible as flexible filmfilm or paperboard. or paperboard. That’s That’s whywhy some some printers printers will will do do a “dumbed-down” a “dumbed-down” testtest run run on on digital digital to show to show what’s what’s possible possible on on other other printers. printers. Digital Digital on flexible on flexible substrates substrates hashas limitations limitations thatthat include include limited limited web web widths, widths, lamination lamination time time limits limits (within (within 24 hours) 24 hours) andand longer longer run run minimums. minimums.

12.12. Potential Potential Hidden Hidden Costs, Costs,

One One of the of the commonly commonly cited cited benefits benefits to digital to digital printing printing is saving is saving thethe early early investments investments thatthat areare often often required required withwith other other methods. methods. Always Always expect expect andand require require an extensive an extensive analysis analysis of every of every project, project, apples apples to oranges to oranges comparisons comparisons andand transparency transparency intointo your your printer’s printer’s processes processes as well. as well.


Digital Printing a Surefire Cure to the Commodity Mindset Digital Digital printing printing is fast is fast becoming becoming one one of the of the printing printing for labels packaging for labels andand packaging andand has has bestbest waysways for packaging for packaging converters converters to make to make worked worked some of largest the largest packaging withwith some of the packaging themselves themselves theirtheir customer’s customer’s hero.hero. Here’s Here’s companies companies in the world. “Digital printing in the world. “Digital printing is is whatwhat four four thought thought leaders leaders in the in printing the printing andand capable capable of producing graphics of producing veryvery highhigh graphics packaging packaging community community havehave to say to say about about quality quality variable content, important andand variable content, bothboth important whatwhat brand brand owners owners want, want, whywhy converters converters to atobrand’s a brand’s success, Joachim. success, “says“says Joachim. “For “For andand printers printers havehave been been shy about shy about adopting adopting brands brands focused on very specific that that are are focused on very specific digital digital printing printing for packaging, for packaging, andand howhow to to markets, markets, which usually means relatively which usually means relatively shortshort overcome overcome the the fear fear of introducing of introducing digital digital printprint market-specific messaging runs,runs, market-specific messaging can can be be printing printing to the to converting the converting business. business. improve communication usedused to to improve the the communication between the brand the consumer. between the brand andand the consumer. Also,Also, WhatWhat a CPG a CPG wants wants if a brand wants its packaging torelevant be relevant if a brand wants its packaging to be “Brand “Brand marketing marketing is in is the in the midst midst of of to events to events Super other like like the the Super BowlBowl andand other reinventing reinventing itself.itself. Today’s Today’s shopper shopper journey journey promotional promotional opportunities, digital printing opportunities, digital printing goesgoes through through three three channels, channels, which which means means can can quickest efficient be be the the quickest andand mostmost efficient thatthat successful successful brands brands need need to be to present be present process process tothis. do this. to do not only not only on retail on retail shelves, shelves, but also but also online online andand in social in social media media channels. channels. This This creates creates more more “Digitally “Digitally printed packages meet printed packages can can nownow meet or or urgency urgency for brands for brands to provide to provide shoppers shoppers withwith exceed exceed the image quality of more traditional the image quality of more traditional relevancy, relevancy, engagement engagement andand interaction, interaction, printing printing methods (offset, flexo, gravure). methods (offset, flexo, gravure). To To which which digital digital printing printing can can handle handle withwith ease. ease. the the extent digitally printed packages extent that that digitally printed packages Digital Digital technology technology is making is making it possible, it possible, whilewhile are cost are cost competitive, the additional benefits competitive, the additional benefits shoppers shoppers are are drawn drawn to products to products thatthat speak speak of shorter of shorter times, run sizes, leadlead times, smallsmall run sizes, etc. etc. will will to them.” to them.” leveraged. Brand owners be be leveraged. Brand owners will will looklook to to those advantage. Having the ability to make those advantage. Having the ability to make That,That, in ainnutshell, a nutshell, is Mike is Mike Ferrari’s Ferrari’s taketake on on frequent frequent package variations target package variations andand target whywhy digital digital is so is important so important to today’s to today’s specific specific consumer segments by ethnicity, consumer segments by ethnicity, converter converter andand the converter’s the converter’s basebase of brand of brand gender, gender, geography customized andand geography withwith customized owner owner customers. customers. Ferrari Ferrari is nois stranger no stranger to to products products packages will lead to growth andand packages will lead to growth understanding understanding whatwhat brand brand owners owners want. want. He He for converters for converters adopt digital, Burke. whowho adopt digital, “says“says Burke. dedicated dedicated 32 years 32 years of service of service to The to Procter The Procter finally there’s Colleen Twomey, Assistant & Gamble & Gamble Co. and Co. and is now is now Founder/President Founder/President AndAnd finally there’s Colleen Twomey, Assistant Professor of Graphic Communication in the of Ferrari of Ferrari Innovation Innovation Solutions, Solutions, LLC.LLC. Echoing Echoing Professor of Graphic Communication in the College of of Liberal Ferrari Ferrari is Carl is Carl Joachim, Joachim, whowho has has paidpaid close close College Liberal Arts Arts at at attention attention to the to the evolution evolution of of d i g idt a i gl i t a l C aC l al l l


Poly,Poly, whowho has this has to thissay to about say about digital digital printing printingeveneven converting converting innovations, innovations, “ says “ says Twomey. Twomey. in the in the packaging packaging arena: arena: “I believe “I believe the the“Printers “Printers andand converters converters thatthat put put themselves themselves greatest greatest advantage advantage thatthat digital digital printing printingin a position in a position of serving of serving theirtheir clients clients by bringing by bringing provides provides CPGs CPGs is the is access the access to good to good quality qualitynewnew solutions solutions through through innovation innovation will will win. win. prototypes, prototypes, shortshort run jobs, run jobs, andand variable-data variable-dataTheyThey become become preferred preferred partners partners andand rise rise campaigns. campaigns. “Twomey “Twomey teaches teaches consumer consumerabove above commodity commodity status, status, “ says “ says Ferrari. Ferrari. packaging packaging andand workflow workflow classes classes related related to to packaging packaging andand publications, publications, andand printed printedGrowth Growth Opportunities Opportunities with with Digitally Digitally Printed Printed electronics. electronics. She is She theis Graphics the Graphics for Packaging for PackagingPackaging Packaging concentration concentrationcoordinator, coordinator,andandhas hasCarlCarl Joachim Joachim offers offers a checklist a checklist to consider to consider for for researched researchedflexographic flexographicprinting printingof ofsuccessful successful growth growth opportunities. opportunities. Run Run lengths lengths conductive conductive silversilver inks,inks, interactive interactive packaging, packaging,are declining are declining 7-9%7-9% per year, per year, so short so short runs runs are are andand general general packaging packaging trends. trends. a growing a growing market. market. His recommendation His recommendation for for the the mostmost growth growth is tois focus to focus on short on short run, run, Burkee Burkee seessees digital digital printing printing as aas major a major growth growthquick-turn quick-turn applications, applications, including: including: opportunity opportunity for converters for converters andand printers printers of of 1. Regional 1. Regional brands brands are are growing, growing, like like packaging. packaging. “The“The growth growth benefits benefits are related are related brand brand promotions promotions linked linked to events to events to being to being ableable to run to small run small lots, lots, quickly, quickly, in a in a andand holidays; holidays; each each of of these these cost-effective cost-effective manner manner withwith highhigh image image command command shortshort runs runs andand fast fast timetime to to quality. quality. Application Application of digital of digital printing printing should should market. market. leadlead to mass to mass customized customized products products andand 2. Brands 2. Brands thatthat distribute distribute products products packages. packages. Being Being ableable to facilitate to facilitate frequent frequent through through specialty specialty stores, stores, suchsuch as as package package changes, changes, newnew product product launches, launches, boutique boutique pet foods pet foods sold sold through through locallocal regulatory regulatory revisions, revisions, prototypes, prototypes, etc. etc. will will pet shops pet shops are another are another opportunity. opportunity. create create growth growth opportunities, opportunities, “ says “ says Burke. Burke. 3. Test 3. Test marketing marketing of aof new a new product, product, Treating Treating a new a new digital digital printing printing capability capability as aas a where where there there is often is often a requirement a requirement for for completely completely separate separate business business will will helphelp shortshort run, run, quick-turn quick-turn packaging. packaging. converters converters andand printers printers get the get new the new business business 4. Brands 4. Brands thatthat place place a premium a premium on on offering offering off the off ground, the ground, in Joachim’s in Joachim’s opinion. opinion. eye-catching eye-catching graphics graphics represents represents “Digital “Digital printing printing quality quality keeps keeps improving, improving, another another growth growth opportunity. opportunity. more more bellsbells andand whistles, whistles, suchsuch as varnishes, as varnishes, newnew usesuses of whites, of whites, various various substrates, substrates, andand Erin JErin Wolford, J Wolford, Contributing Contributing Editor Editor


Swedish Milk Brand

Launches 100% Bio-Based Carton Following in the footsteps of Finnish dairy Valio, Arla Foods of Sweden has become only the second chilled beverage producer to adopt Tetra Pak’s (www.tetrapak.com) Tetra Rex® Bio-based carton, made entirely of renewable material-from carton to cap. Arla launched its Eko brand of organic milk in the renewable carton in a 1-L format in April 2015. As Greta Bjornoy, Product Manager Milk, Arla Foods, explains the switch from a traditional, petroleum-based carton to the Tetra Rex Bio-based was prompted by the company’s desire to reduce its packaging’s environmental footprint. “Arla foods has a target to reduce the climate impact from our packaging, and we want to increase the share of renewable and recyclable packaging material. The Tetra Rex Bio-based, in a standard gable top format and available in a range of volumes and sizes, is constructed of layers of bio-based plastic on either side of a layer of Forest Stewardship

Certified-paperboard. The plastic layers are made from low-density polyethylene produced by Brazilian chemical company Braskem (www.braskem), which sources all of its feedstock from sugarcane grown on degrade pastures. According to Christina Chester, Product Director Carton Gable Top for Tetra Pak, two broad challenges had to be overcome in the development of the Tetra Rex Bio-based, which was introduced in October 2014. “The first, from a research and development perspective, was to ensure that the bio-based plastic performed identifically to conventional plastic under all conditions. This was achieved through close collaboration with Braskem, which developed and supplied a polymer to meet our specifications. “The second challenge was to ensure that Braskem had enough bio-based plastic available to meet our demand. This was achieved by again closely collaborating and working to scale up supply. For example, the launch of the bio-based Tetra Rex builds on a variety of other initiatives, such as the launch of bio-based closures or the launch of bio-based coatings in packages produced in Brazil. This gave us experience, which could then be scaled up.” Through life-cycle analysis of the bio-based carton, Tetra Pak has determined that the package provides a carbon footprint improvement of 20% to 30% versus the company’s conventional Tetra Rex carton over the entire life of the package. For Arla, this advantage comes at a price, although not a significant one. As Chester explains, while bio-based PE does cost slightly more right now than conventional PE due to relative scarcity of supply, that price should come down to the same level as petroleum –based PE as supply increases. Currently, Arla is scheduled to introduce a milk product in the bio-based carton in fall of 2015 Denmark. Anne Marie Mohan


But just want a slice or on the go afraid got greasy hand Here the solution by amazing packaging by Slice (Student Project) The Paper Dish, an idea that sets a miniature, tear away paper plate for each pizza slice in a box, came from the minds of Yu Kyung Ha, Won Min Jung and Kwon Young Hee.

Paper Dish is a perforated sheet that can be torn apart, used as a mini plate, and has a secondary perforation that allows it to be split into two pieces for double usage. With an innovation this sexy, it's no surprise these plates won a Red Dot Design Award.

Designer: Yinan Wang Maryland Institute College of Arts, MD, USA


FIRST PLATE

Membantu Anda untuk pembuatan plate Flexo, Baik untuk narrow maupun wide web applikasi

Finger Print Elements

-

Flexible Packaging Tag & Label Pre-Print Corrugated

Process Control Solid Color Patches - Proses dan Spot Color Overprint/Trap Patches Gray Balance Patches Tone Scales Vignettes Barcodes Line danType elements

Mechanical Control Registration Targets Impression & Blur targets Solid Ink Color Patches Printer Control Target Prepress Control Target

Pencatatan Data Catat semua proses dan kondisi pada waktu dilakukan Fingerprint. Ukur beberapa sample untuk memperkirakan hasil yang dapat dicapai dan apa saja kendala-kendalanya


Corrugated INDUSTRY

53


ACCA’S 19TH Annual General Meeting 1st Management Committee Meeting (2015-2017)

Mr. Kinardo Ang - Mr. Simon Lo

Labour Labour CostsCosts make make it worst. it worst. Export Export also also weakweak whilewhile therethere are very are very strong strong domestic domestic competition competition whilewhile the paper the paper prices prices unstaunstable, too. ble, too. Trends Trends all over all over the plae the plae is theissame the same for : for : • •Digital Digital Printing Printing • •Pre Printing Pre Printing • •Lower Lower gsm gsm • •Lower Lower flutesflutes • •Automation Automation to save to save Labour Labour Costs: Costs: • •AutoAuto checking checking machines? machines?

Indonesia Indonesia Indonesia Indonesia GDPGDP Growth Growth is bout is bout 5% this 5%year this year and and eveneven it was it predicted was predicted below below 5%. 5%. The Inflation The Inflation is hight is hight up to up5..6% to 5..6% this year this year whilewhile last year last year about about 5%. 5%. WhileWhile our currency our currency is getting is getting weaker weaker Jan –Jan – ACCA’ ACCA’ president president Mr Simon Mr Simon Lo open Lo open the meeting the meeting 1 US$1 =US$ Rp=12.474 Rp 12.474 and and in Sept in Sept become become Rp 14.442. Rp 14.442. and and thanks thanks the the participants participants for attending for attending the the !5.78% !5.78% within within 9 months. 9 months. meeting. meeting. ThenThen afterafter the introduction the introduction for all forthe all the participants participants the secretary, the secretary, Mr KC Mr Liew KC Liew readread the the TRENDS TRENDS minutes minutes of throf ACCA thr ACCA 18th 18th annual annual general general meeting meeting • Less • paper Less paper grammage grammage held held in Vietnam in Vietnam to get tothe getconfirmation. the confirmation. • Most • Most of end of end usersusers still value still value the corrugatthe corrugatAfterAfter all confirm all confirm thenthen we start we start with with the election the election for for ed boxes ed boxes selling selling priceprice by weight by weight instead instead the new the new committee committee for the fornext the next termterm (2015-2017). (2015-2017). of box of strength box strength (BCT)(BCT) PICCIPICCI has has proposed proposed Mr Kinardo Mr Kinardo Ang Ang as the as the • More • More demand demand of die of die cut cut boxes boxes to to President President of ACCA. of ACCA. replace replace RSC RSC boxes boxes due due to more to more autoauto packing packing machines machines installed installed by end by end usersusers The new The new committee committee as follows as follows : : • President • President Kinardo Kinardo Ang Ang CURRENT CURRENT CONDITION CONDITION • 1st • Vice 1st Vice President President CPF CPF • Demand • Demand of corrugated of corrugated boxes boxes has has • 2nd • Vice 2nd Vice President President MACCMA MACCMA dropped dropped about about 20% 20% -25%-25% sincesince late late of of • Honorary • Honorary Secretary Secretary CBMA CBMA • Honorary • Honorary Treasurer Treasurer TCG TCG • Directors • Directors Prestige Prestige Atlantic, Atlantic, China Retail Growth Bobst, Bobst, Tosi Jasindo, Tosi Jasindo, ReedReed

Country Country Report Report

Hongkong Hongkong The GDP The GDP growing, growing, but slower but slower thanthan last last year,year, whilewhile the unemployment the unemployment still low still low at 3.3% at 3.3% though though the stock the stock market market dropdrop and and Housing Housing Prices Prices sky sky high high (Becomes (Becomes World World #2 most #2 most expensive expensive city).city). MostMost investments investments in forinpackagfor packaging ising in Southern is in Southern China China (Guangdong (Guangdong PearlPearl RiverRiver Delta). Delta). Many Many box box plants plants closing closing down/retiring down/retiring in this in this tough tough business business environment. environment. The challenge The challenge is oversupply, is oversupply, especialespecially due ly due to economic to economic growth growth slow slow down down as well as well as the as effect the effect of high of high


Thailand Thailand Y2014: Y2014: GDPGDP growth growth rate rate registered registered at 0.7% at 0.7% as as political political turmoil turmoil has brought has brought the economy the economy into a into a contraction contraction during during the first the half first half of 2014 of 2014 before before it it • started started to pick to pick up inup theinfollowing the following quarters. quarters. Y2015: Y2015: GDPGDP growth growth will pick will pick up to upthe to rate the rate of 3.0-3.5% of 3.0-3.5% • mainly mainly fromfrom government government spending spending on infrastrucon infrastructure. ture. Overall, Overall, Thailand’s Thailand’s economic economic situation situation is is Paper Paper & OCC & OCC PricePrice expected to remain to remain stable stable throughout throughout 2015.2015. • CM • Liner CM Liner = Rp.=4.800.000/ton Rp. 4.800.000/ton = USD = 331* USD 331* expected • Test • Liner Test Liner = Rp.=5.300.000/ton Rp. 5.300.000/ton = USD = 366* USD 366* • OCC • OCC = Rp.=2.200.000/ton Rp. 2.200.000/ton = USD = 152* USD 152* Industry Industry Outlook Outlook Q2/2015 Q2/2015 FoodFood & Related & Related (O) Food: (O) Food: increases increases lightly lightly snack snack consumption consumption in in * Exchange * Exchange rate rate USD = USD Rp.=14.500 Rp. 14.500 vacation vacation / retains / retains instant instant noodle noodle demand/ demand/ PS : PS Paper : Paper mills mills are trying are trying to increase to increase priceprice due due long long lack lack of palm; of palm; cooking cooking oil material oil material to depreciation to depreciation of IDR ofCurrency IDR Currency (O) Beverage: (O) Beverage: Alcohol Alcohol - slow - slow down down production production afterafter excise excise tax rise taxNon-Alcohol rise Non-Alcohol - big- promotions, big promotions, Malaysia Malaysia demand demand in summer in summer The GDP The GDP is forecast is forecast at 4.7% at 4.7% in 2015 in 2015 and and 5.0% 5.0% in in high high (+) Frozen Food:Food: Strong Strong export export for chicken for chicken to to 20162016 (by ADB). (by ADB). Private Private consumption consumption is going is going down down (+) Frozen many countries countries / still/less still shrimp less shrimp supply supply coupled coupled as well as well as government as government spending spending though though the the many high high competition competition in export in export markets markets business business spending spending and and business business expansion expansion still still with with (O) Canned (O) Canned Fruit:Fruit: increasing increasing production production in expecin expecgrowing. growing. tation tation of higher of higher pineapple pineapple supply supply Canned Canned Food:Food: tunatuna priceprice decreasing decreasing ; ; Malaysia Malaysia Industrial Industrial production production IndexIndex for the for the (O) (O) retailers postpone postpone orders orders period period of Jan of to Jan July to 2015 July 2015 posted posted growth growth of 5,5% of 5,5% retailers as compared as compared to the to previous the previous year.year. The increase The increase Electrical / Computer / Computer was due was to due the torise theinrise all in three all three indices: indices: ManufacturManufactur- Electrical (O) Air (O)Cond./ Air Cond./ Fan: Fan: slightly slightly decelerate decelerate production production ing (4.7%): ing (4.7%): Mining(8.3%) Mining(8.3%) and and Electricity(1.7%) Electricity(1.7%) afterafter peakpeak salessales period period (Samsung) (Samsung) (+) Refrigerator: (+) Refrigerator: continuously continuously growgrow production production for for Economic Economic Outlook: Outlook: export orders orders The The Consumer Consumer PricePrice IndexIndex (CPI)(CPI) inflation inflation rate rate export (O) Washing & Drying & Drying M/C:M/C: slightly slightly slow slow down down accelerate accelerate above above 3%. And 3%. And the GST the GST has has beenbeen (O) Washing production and and keepkeep produce produce for export for export market market implemented implemented in April in April 2015,2015, upward upward wages wages production (Fisher (Fisher & Paygel) & Paygel) pressure pressure due due to minimum to minimum wages wages policy policy (+) Copy M/C:M/C: raiseraise up production up production for export for export Private Private consumption consumption is expected is expected to grow to grow at at (+) Copy orders and and commercial commercial run new run new production production line line slower slower pacepace of 5.5% of 5.5% in 2015 in 2015 compared compared to 6.5% to 6.5% orders (Ricoh) 2014.2014. Weakening Weakening ringgit ringgit against against mostmost major major (Ricoh) currencies. currencies. Consumer Consumer Products Products (+) Baby, Feminine Feminine & Family & Family Care:Care: key key players players Demand Demand & Supply & Supply of Containerboard of Containerboard (‘000/ton) (‘000/ton) (+) Baby, increase increase diapers diapers production production capacity capacity and and keepkeep NewNew Capacity Capacity by Domestic by Domestic Mill 2010/2011 Mill 2010/2011 launching launching promotion promotion ( Unicharm ( Unicharm ) ) • Muda • Muda Paper Paper Mill (150,000 Mill (150,000 tons tons –CMP) –CMP) (+) Fabric (+) Fabric & Home & Home Care:Care: high high season season in summer, in summer, • Lekok • Lekok Paper Paper Mill (70,000 Mill (70,000 tons tons – CMP) – CMP) new new product product launch, launch, promotions(Colgate,Lion) promotions(Colgate,Lion) • Pascorp • Pascorp Paper Paper Mill (60,000 Mill (60,000 tons tons – CMP) – CMP) (+) Beauty, (+) Beauty, Hair & Hair Skin & Skin Care:Care: high high consumption consumption of of cooling cooling powder powder and and hair care hair care in summer in summer (P&G) (P&G) Singapore Singapore (+) Health & Oral & Oral Care:Care: growgrow in export in export orders; orders; Singapore Singapore excellent excellent infrastructure infrastructure will continue will continue to to (+) Health maintain maintain domestic domestic demand demand (Colgate) (Colgate) attract/retain attract/retain high high valuevalue manufacturing manufacturing to ride to ride whilewhile on recovery on recovery in USA in USA economy. economy. MIT helps MIT helps to to promote promote FoodFood Industry Industry (ready (ready meal) meal) for for export. export. Government Government tightens tightens the the foreign foreign worker worker supply supply further further with with moremore increase increase in foreign in foreign worker worker levy levy and and reduce reduce the number. the number. These These will have will have impact impact to local to local SME.SME. SlowSlow down down in in China China economy economy European European financial financial austerity austerity measures measures will will suppress suppress demand. demand. Strong Strong US$ would US$ would cause cause inflationary inflationary pressure. pressure. •

20142014 till now till now Investments • Investments (both(both machinery machinery and and new new plantplant expansion expansion are on arehold) on hold) Couple • Couple of box of box plants plants already already closed closed down down Small • Small size plants size plants are suffering are suffering now now

NODX NODX declined declined by 0.8% by 0.8% year year on year on year in July in July 15. 15. The The export export to top to top trading trading partners partners dropped. dropped. On aOn y-o-y a y-o-y basis,basis, Electronic Electronic NORX NORX increased increased by 6.4% by 6.4% in July in July 15 compared 15 compared to to 0.9 %0.9 increased % increased in theinprevious the previous month15. month15. On On a y-o-y a y-o-y basis,basis, non-electronic non-electronic NORX NORX rose rose by by 3.5% 3.5% in July in 15 July after 15 after a 3.1% a 3.1% up inup June15. in June15.


Containerboard Market: OCC Price (USD/ton)

Industry Outlook H2/2015

Food & Related (O) Food: Overall domestic demand is stable but export is growing mainly to ASEAN (+) Beverage: Alc. Bev. : Higher production after Buddhist lent period end / Non-alc. : Continue promotions; green tea, carbonated drinks (+) Frozen Food: : Export chicken strong growth / Higher shrimp supply but export orders drop (O) Canned Fruit : Still low supply for pineapple ; expected to recover by early next year (+) Canned Food: High season for export with expected higher tuna raw mat. prices Electrical / Computer (O) Air Cond./ Fan: Domestic demand slowdown due to low season but export good to EU and US (+) Refrigerator: Export orders to Japan significantly drop / Many producers slowdown production and plan to launch new model in 2016 (O) Washing & Drying M/C: Overall demand remains stable (+) Copy M/C: As lower export orders, key players reduce production to control their inventory Consumer Products Overall demand remained weak, producers stimulate by aggressive promotions (+) Baby, Feminine & Family Care : Strong domestic demand for diapers products, also export to Taiwan, Indonesia / Some producers move production to Indonesia (Sanitary napkin) (+) Beauty, Hair & Skin Care : Domestic market driven by aggressive promotions

Signing Agreement ACCA - Reed afterward we have ceremony of RX ACCA Cooperation Agrement. Mr Simon Lo represent ACCA to sign official agreement. (+) Health & Oral Care: Growth in export orders; while maintain domestic demand Trend & New Products Corrugated Trend • Light weight Corrugated box • Small lot size • Digital Printing is coming up • Free Standee Display Unit ( FSDU ) • Speed to market : SRP


Die Maker Equipments Die Board Cutting Stripping Tools Sample Making

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IMPROVED PRODUCTIVITY

SADA GROUP The Italian Corrugated Plant and Opts for a Worldwide ‘First’ Folding Carton Factory Leith Agnati New Technology In 2002,Inthe 2002, factory the factory installedinstalled a new Agnati a new 2.5m Agnati 2.5m year. Today, year.the Today, group theofgroup companies of companies employsemploys 300 300 corrugator corrugator and complete and complete NE Engineering NE Engineering people people and generates and generates over €90 overmillion €90 million in in materilas materilas handling handling system. system. In 2007,In the 2007, Sada the Sada turnover. turnover. family had family justhad opened just opened a new factory a new factory next to the next to the They bought They bought their firsttheir corrugator, first corrugator, a second a second hand hand corrugated corrugated plant where plant where they diversified they diversified the the machine, machine, in 1974 and in 1974 as business and as business prospered, prospered, then then businessbusiness into theinto production the production of folding of cartons. folding cartons. A A installed installed a new a corrugator new corrugator in 1979.inIn1979. the early In the early new KBA new press, KBABobst press,flat Bobst bedflat die-cutter bed die-cutter and a and1980s, a they 1980s, acquired they acquired a local paper a localmill paper andmill so the and so the Bobst gluer Bobstwhere gluer the where first the machines first machines in a huge in a huge family’s family’s future in future the in corrugated the corrugated industryindustry was was factory.factory. clear toclear all. to all. BusinessBusiness is still tough is still intough southern in southern Italy. Against Italy. Against a a have “We “Wealways have always believed believed in choosing in choosing the bestthe best backdrop backdrop of global of economic global economic melt-down melt-down and a andequipment a equipment on the on market,” the market,” explainsexplains AntonioAntonio slow, but slow, steady but recovery steady recovery over theover last the fewlast years, few years, Sada, President Sada, President and CEO. and“For CEO. example, “For example, in 2001 in 2001 southernsouthern Italy is Italy still isstruggling still struggling to rebound. to rebound. we werewe the were first company the first company in our region in ourto region installto a install a However, However, there are there a few aregoodwill a few goodwill stories instories the in the Bobst Masterflex Bobst Masterflex and thisand set this us apart set usfrom apartour from our region, region, and Sada and Group Sada Group is one is ofone them. of them. competitors. competitors. In the same In thevein, same we vein, were wethe were first the first Continuing Continuing investment investment in a variety in a of variety projects of projects has has corrugated corrugated company company in the area in thetoarea set-up to a set-up a meant the meant company the company bucks the bucks trend theand trend shows and shows micro-flute micro-flute and folding and carton folding factory carton factory that wasthat in was in double-digit double-digit growth growth in certain in certain divisions,divisions, year onyear on 2007. 2007.


Up untilUp2012, until the 2012, company the company had been had using been using contactcontact with thewith printing the printing surface surface with thewith heating the heating micro-flute micro-flute board being boardproduced being produced on the Agnati on the Agnati plates and plates shoes. andThis shoes. allows Thisfor allows a reduction for a reduction in the in the corrugator corrugator at the at board the board plant next plantdoor. next As door. As contactcontact temperature. temperature. The meachine The meachine featuresfeatures low low production production demand demand grew, sogrew, the owners so the owners realisedrealised volume volume heatingheating plates at plates the bottom at the bottom and heated and heated they needed they needed a dedicated a dedicated machine machine that could that could pressurepressure shoes on shoes top. on Once top.the Once single thewall single board wall board run E and runF flute E andbroad F fluteinbroad a controlled in a controlled enviroment. enviroment. exits theexits doube the doube facer it facer is slit and it is slit cross andcut. cross Thecut. The But theyBut also they had also some hadother somerequirements other requirements too. too. stacker stacker is similaristo similar a single to aface single stacker, face stacker, having having For example, For example, they needed they needed a compact a compact machine machine front and frontedge and pushers edge pushers to produce to produce perfect perfect with minimal with minimal footprintfootprint and it needed and it needed to be run toby be run by stacks. stacks. only two only or two threeor people. three people. They contacted They contacted BP BP In the Quantum In the Quantum system, system, the process the process of bonding of bonding Agnati to Agnati see what to see could whatbe could done. be done. the linersthe and liners fluting andisfluting achieved is achieved in one phase. in one The phase. The temperature temperature of the of liners the isliners adjusted is adjusted to the to the The Quantum The Quantum corrugator corrugator is a new is aconcept new concept temperature temperature necessary necessary for the bonding for the bonding process,process, 0 machine. machine. It has been It has designed been designed for the production for the production which iswhich in a range is in abetween range between 60-80 0C.60-80 “In our C.view, “In our view, of high of quality high quality single wall single board wall (all board flutes) (all and flutes) and the Quatum the Quatum is the ideal is the machine ideal machine for folding for folding has a has length a length of onlyof45-50 only m. 45-50 However, m. However, the the carton producers carton producers who arewho looking are looking to diversify to diversify their their QuatumQuatum can not canbenot considered be considered just as just a as product a product range,”range,” states Mr states Schmiedt. Mr Schmiedt. compact compact corrugator, corrugator, because because it includes it includes some some major differences major differences in the way in the it isway builtit and is built in its and in Commitment its Commitment production production process.process. The Sada TheGroup Sada takes Groupitstakes role in its the rolecommunity in the community ”The Quantum ”The Quantum was develop was develop in veryin close very close and the and local the environment local environment most seriously. most seriously. A A collaboration collaboration with Sada with Sada who needed who needed a a significant significant investment investment in solar in panels solar on panels the roof on the roof corrugator corrugator to produce to produce fine flutes, fine flat flutes, board, flat board, a a eachoffactory of each factory generates generates a largeraproportion larger proportion of of true printing true printing surface surface quality and quality a stack and a quality stack to quality the to energy the energy neededneeded to run to therun plants; the plants; surplus surplus allow forallow subsequent for subsequent offset post-printing,” offset post-printing,” explainsexplains energy energy is sold is back sold to back the tolocal the power local power MichaelMichael Schmiedt, Schmiedt, Sales Director Sales Director of BP Agnati. of BP Agnati. companies. companies. In addition In addition to this, the to this, company the company is a is a significant significant employer employer in the region in the and region holds andallholds all “Furthermore, “Furthermore, it had toit be hadcapable to be capable of producing of producing industry-recognised industry-recognised certification, certification, from ISOfrom to FSC ISO to FSC fine flutes-N fine flutes-N and F-with andlow F-with paper lowweights, paper weights, down down and more. and “We more. are “We proud are of proud our of environment our environment as low as as40gsm.” low as 40gsm.” BP Agnati BPhave Agnati totally havechanged totally changed and want andtowant protect to protect it for future it for generations,” future generations,” the design the of design the Quantum of the Quantum corrugator. corrugator. The single The single concludes concludes AntonioAntonio Sada. “The Sada.stability “The stability of our of our face web face exits web theexits Single theFacer Singleimmediately Facer immediately after after businessbusiness going forward going forward relies onrelies us looking on us looking after after the gluethe is applied glue is applied to the flute to the tipsflute andtips enters andthe enters the our environment our environment and engaging and engaging with thewith local the local double double facer above facerthe above bridge. the bridge. The outside The outside liner is linercommunity. is community. Add to this, Addthe to this, on-going the on-going relationships relationships combined combined from thefrom top.the top. with all with our all various our various supplierssuppliers and weand arewe sureare sure future offuture our business of our business is in safeishands. in safe hands. The Single TheFacer Singleincluded Facer included in the Quantum in the Quantum is the is the new BPnew Vantage, BP Vantage, featuring featuring non-metallic non-metallic roll, roll, which means which means no pressure no pressure marks. marks. The Double The Double Source: Source: International International Paper Board Paper Industry Board Industry and and Facer has Facer a top has and a top a and bottom a bottom belt to belt avoid to avoid Agnati. Agnati.


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Sutherland Packaging Provides Direct Color Corrugated Printing Corrugated displays produced by Sutherland Packaging with direct color printing. Sutherland Packaging, a leader in corrugated point-of-purchase (POP) displays and packaging for retail locations and club stores, offers highly-precise, high-impact direct print technology for both large and small-scale corrugated units. Direct print technology removes the need for a lithographic label to be applied over corrugated substrates, effectively replacing litho dollars with just a few cents of ink. According to Sutherland, the five-color technology saves on both material costs and shipping times and is Ideal for retail consumer products and club store displays. The ability to forgo label printing also allows customers to quickly recoup their initial short-term investment in the direct print process. In addition, direct print with ink on paper is 100 percent recyclable. Direct print can extend beyond the size limitations of a label, thereby limiting the need for multi-piece snack towers and pallet wraps. By greatly reducing seams, stitching and gluing,

the customer achieves lower production costs while eliminating in-store assembly complications. Materials cost reduction is only one key benefit. Sutherland’s single-piece, full-color towers employ precise folding, locking, and quick construction to achieve extreme side and column strength. The towers enhance the structural integrity of displays and improve overall durability, resulting in POP displays that can both withstand damage and deliver brand impact at the point of purchase. “For over 50 years, Sutherland has prided itself on the passion we have for supporting our customers’ branding, marketing and sales efforts,” says Paul Yost, CEO. “Our latest direct print technological breakthrough leads to high impact impressions for retail and marketing campaigns, a benefit that goes well beyond savings for our valued customers.


Digital Printing, Creasing, Cutting Come to Carton Converting

HP Indigo 30000 30000 sheet-fed sheet-fed digital digital presspress and and the the Folding Folding carton carton converter converter Boutwell Boutwell Owens Owens & Co. & is Co. HP is Indigo Highcon Highcon digital digital carton carton finishing finishing system. system. Boutwell Boutwell among among the first theinfirst theinworld the world to combine to combine wide-format wide-format Owens Owens is in is the in catbird’s the catbird’s seat seat whenwhen it comes it comes to to sheet-fed sheet-fed digital digital printing printing and and digital digital creasing creasing with with fast turnaround/short fast turnaround/short run carton run carton converting. converting. cutting. cutting. (www.highcon.net) (www.highcon.net) introduced introduced its Euclid its Euclid system system the the world’s world’s first fully first fully digital digital creasing creasing and and Though Though the two the digital two digital machines machines sit side sit by sideside by in side in cutting cutting machine machine for converting for converting folding folding cartons. cartons. a specially a specially built built room-air room-air conditioning, conditioning, moisture moisture Euclid Euclid greatly greatly streamlines streamlines the the tried-and-true tried-and-true but but and and humidity humidity control, control, newly newly poured poured cement cement rather rather cumbersome cumbersome process process of creasing of creasing and and cutting cutting floor-there floor-there is nois attempt no attempt at linking at linking themthem in a in a cartons cartons that that is used is used today. today. It also It also reduces reduces the need the need continuous continuous in-line in-line print-to-finishing print-to-finishing workwork flow.flow. “In “In for the for highly the highly skilled skilled employees employees typically typically needed needed to to “says“says Hodges, Hodges, “We “We use use the the Highcon Highcon for for make make carton carton creasing creasing and and cutting cutting cartons cartons that that is fact, is fact, cartons cartons printed printed on our onconventional our conventional offsetoffset presses presses usedused today. today. It also It also reduces reduces the need the need for the for highly the highly whenwhen a runaisrun short, is short, thus thus saving saving the customer the customer the the skilled skilled employees employees typically typically needed needed to make to make carton carton cost cost of tooling of tooling a die.” a die.” creasing creasing and and cutting cutting dies,dies, which which involves involves the skilled the skilled hammering hammering of steel of steel rules rules into sheets into sheets of plywood. of plywood. And And Brave Brave New New World World finally, finally, because because it does it does away away with conventional with conventional dies,dies, It should It should be pointed be pointed out that out that certain certain challenges challenges it frees it frees up storage up storage space space formerly formerly occupied occupied by those by those come come with with this this brave brave new new worldworld of digital of digital dies.dies. manufacturing. manufacturing. Figuring Figuring out out an an appropriate appropriate pricing pricing structure structure is among is among them. them. “We “We did the did the As As appealing appealing as as suchsuch manufacturing manufacturing and and on the on number the number of jobs of jobs it was it was going going to take to take operations operations advantage advantage may may be, the be, real the real valuevalue in math in math to generate the necessary the necessary revenue revenue through through thesethese digital digital carton carton creasing creasing and and cutting cutting lies in lieswhat in what it to it generate digital digital systems,” systems,” says says ViceVice President President of Operations of Operations permits permits Boutwell Boutwell Owens Owens to bring to bring to itsto customers; its customers; an an Bill Lorenz. Bill Lorenz. “What “What you have you have to keep to keep in mind in mind is that is that unmatched unmatched ability ability to meet to meet the growing the growing needneed for for thesethese are all aregoing all going to be to smaller be smaller jobs jobs that that go go shorter shorter runs runs of packaging of packaging materials materials now now that that through through the digital the digital workflow. workflow. A smaller A smaller number number of of micro-segmentation, micro-segmentation,SKU SKUproliferation, proliferation,and and sheets, sheets, regardless regardless of what of what the revenue the revenue per sheet per sheet event-driven event-drivenpackaging packagingcampaigns campaignsare are is, means is, means less revenue less revenue per job per compared job compared to the to the increasingly increasingly popular popular among among the the Consumer Consumer traditional traditional workwork flow we flowhave we have in theinplant. the plant. How How do do Packaged Packaged Goods Goods companies companies of the of world. the world. Making Making factor factor in in customer customer service service costs,costs, the Boutwell the Boutwell Owens Owens storystory all the all more the more intriguing intriguing is you is you administrative administrative time,time, quoting quoting time,time, and so and onso when on when that that shortly shortly before before the November the November 20142014 installation installation of of you introduce you introduce so many so many smallsmall jobs jobs into your into your workwork its Euclid its Euclid system, system, the the firm firm made made another another boldbold flow?” flow?” investment investment in digital in digital technology technology whenwhen it became it became one of one the ofU.S. theto U.S. install to install an HP anIndigo HP Indigo (www.hp.com) (www.hp.com) Hodges Hodges addsadds that that HP Indigo HP Indigo 30000 30000 also also has some has some 30000 30000 sheet-fed sheet-fed digital digital press.press. Built Built to accept to accept a 29.5x a 29.5x ideasideas on how on how to optimize to optimize this process, this process, as do as do 20.9 20.9 inch inch sheetsheet size, size, the HP theIndigo HP Indigo 30000 30000 brings brings the the pre-press pre-press specialists specialists like Esko. like Esko. But he Butthinks he thinks that that samesame widewide format format capability capability to sheet-fed to sheet-fed carton carton whenwhen it comes it comes to managing to managing workwork flow flow in a world in a world converting converting that that the HP theIndigo HP Indigo 20000 20000 brings brings to roll-fed to roll-fed of digital of digital manufacturing, manufacturing, mostmost converters converters are are flexible flexible film converting. film converting. Possessing Possessing as it does as it does bothboth the the going going to betolooking be looking to customize to customize it according it according to to the way the way they they themselves themselves do business. do business. “Plenty “Plenty of of questions questions are are surfacing surfacing and and somesome potential potential solutions solutions are being are being offered offered where where workwork flow flow is is concerned, concerned, “says“says Hodges. Hodges. “But “But our stance our stance it is it is that,that, in the in interest the interest of getting of getting to market to market as as quickly quickly as possible, as possible, we’re we’re better better off developing off developing our own our own solutions solutions rather rather thanthan waiting waiting on the onrest the rest of the ofworld the world to dotoit do for itus.” for us.”

Carton Done Digitally, Boutwell Owens is among the first in the U.S to install this fully digital carton and cutting system.

Perfect Perfect Customer Customer for Digital? for Digital? When When asked asked to describe to describe the ideal the ideal customer customer mostmost likelylikely to benefit to benefit mostmost oftenoften fromfrom Boutwell Boutwell Owens Owens new new digital digital capabilities, capabilities, Hodges Hodges says says therethere is nois single no single perfect perfect customer. customer. He also He also says says that that whilewhile figuring figuring out which out which customers customers to target to target is stillisastill work a work in progress, in progress, two two


the front end.end. But itBut gives it gives the customer the customer a flexible a flexible targets targets are very are very clear: clear: customers customers looking looking to better to betterthe front bandwidth of possibilities of possibilities they they would would never never manage manage packaging packaging obsolescence obsolescence and and customers customersbandwidth eveneven havehave dreamed dreamed of and of and the quality the quality of print of print seeking seeking waysways to keep to keep inventory inventory to a to minimum. a minimum. is terrific.” is terrific.” Hodges Hodges also also believes believes that that having having digital converting converting capabilities capabilities brings brings the the One One example example of a customer of a customer with with much much to gain to gain fromfromdigital company an opportunity an opportunity to enter to enter markets markets a carton a carton converter converter with with digitally digitally driven driven flexibility flexibility is iscompany outside its current its current folding folding carton carton workwork flow.flow. “It “It UCI UCI FramFram Autobrands, Autobrands, makers makers of the of well the well known knownoutside won’t be just beexisting just existing customers. customers. FramFram oil filters oil filters that that are ubiquitous are ubiquitous in the in automotive the automotivewon’t aftermarket. aftermarket. “They “They make make a filter a filter for every for every car on carthe on the The to key Euclid to Euclid road,road, “says“says Hodges. Hodges. “The “The pressure pressure of providing of providing a fulla fullThe key The to keyEuclid to Euclid is DART: is DART: Digital Digital Adhesive Adhesive rule rule range range of products of products for the for never the never ending ending stream stream of ofThe key Technology. Digital Digital creasing creasing datadata is uploaded is uploaded new new vehicle vehicle models models combined combined with with having having to make to makeTechnology. a DXF a file DXFtofile the to Euclid the Euclid system. system. Proprietary Proprietary filtersfilters for allforthe all older the older models models that that are disappearing are disappearingfromfrom software translates translates the data the data and and sendssends it to ita to a steadily steadily fromfrom the the roadsroads is very is very taxing taxing on their on theirsoftware special dispensing dispensing unit unit that that contains contains an an business. business. They’ve They’ve always always beenbeen forced forced to buy to large buy largespecial unnamed polymer. polymer. This polymer This polymer is released is released ontoonto amounts amounts of carton of carton inventory, inventory, eveneven though though somesome of ofunnamed PET jacket mounted mounted on aon hard a hard metal metal upper upper their their SKUs SKUs are low-volume are low-volume in nature. in nature. NowNow we’re we’re in a in aa PETa jacket cylinder. In essence, In essence, the dispensing the dispensing unit extrudes unit extrudes position position to do to some do some of their of their low-volume low-volume jobs jobscylinder. the PET the jacket PET jacket the rules the rules needed needed to make to make practically practically on demand. on demand. Piece Piece prices prices may may be higher be higherontoonto the carton creases. creases. The pattern The pattern it extrudes it extrudes is is thanthan in theinpast, the past, but that but that will be willmore be more thanthan offsetoffset by bythe carton dictated by the bydigital the digital datadata uploaded uploaded fromfrom the the the savings the savings they’ll they’ll gain gain by carrying by carrying less inventory less inventory and anddictated DXF file. DXF file. reducing reducing obsolescent obsolescent packaging.” packaging.” As soon as the as polymer the polymer rules rules are laid are laid down, down, The other The other big opportunity big opportunity Boutwell Boutwell Owens Owens will be will beAs soon they’re hardened hardened by exposure by exposure to UV to light. UV light. targeting targeting is in isareas in areas suchsuch as prototyping, as prototyping, new newthey’re Directly beneath beneath the upper the upper cylinder cylinder and and its PET its PET product product releases, releases, market market testing, testing, and and focusfocus group groupDirectly jacket is a islower a lower cylinder cylinder that that has has a soft, a soft, testing. testing. “In the “Inpast the past customers customers would would havehave a sample a samplejacket silicone-like blanket blanket mounted mounted on it. onAllit. that All that house house print print something something in small in small quantities quantities just to justget to getsilicone-like remains is to issend to send printed printed paperboard paperboard carton carton themthem through through a photo a photo shootshoot or trade or trade show, show, “says“saysremains through through the two the two cylinders. cylinders. As the As upper the upper Hodges. Hodges. “The “The quality quality was usually was usually suspect. suspect. NowNow we’llwe’llsheetsheet cylinder with with its UV-hardened its UV-hardened rules rules presses presses into into be able be able to print to print right right on the onactual the actual paper paper stockstock they theycylinder thesurface soft surface of the oflower the lower cylinder, cylinder, the carton the carton plan plan to run to run on on and and give give themthem an an actual actualthe soft stockstock in between in between is creased is creased by the by rules. the rules. Once Once production-quality production-quality piece.” piece.” the the required required number number of sheets of sheets has has beenbeen creased, the PET the jacket PET jacket is removed is removed fromfrom the the Healthcare Healthcare packaging packaging is another is another target. target. “Highcon “Highconcreased, upper cylinder cylinder and a and fresh a fresh one takes one takes its place its place so so lets lets us do us do customized customized braille braille embossing embossing or orupper a completely a completely different different job job can can be be debossing, debossing, “says“says Hodges. Hodges. “And“And somesome of the of ethical the ethicalthat that downloaded. drugdrug prescription prescription business business that’sthat’s low low volume volume is isdownloaded. another another place place where where digital digital is working is working well well for us. for us. As for Ascutting for cutting individual individual cartons cartons fromfrom the sheet, the sheet, TheyThey might might look look for 250 forto 250 1000 to 1000 units.” units.” it’s done it’s done within within the Euclid the Euclid system system immediately immediately creasing. creasing. An array An array of high-powered of high-powered CO2CO2 Finally, Finally, therethere are are the the CPGCPG companies companies who who see seeafterafter combine combine with with scanners scanners and and advanced advanced customized customized or personalized or personalized packaging packaging as the as next the nextlaserslasers optics to perform to perform whatever whatever cutting cutting design design was was greatgreat thing.thing. “Like“Like the Share the Share a Coke a Coke campaign, campaign, “says“saysoptics spelled out digitally out digitally in theinuploaded the uploaded file. file. Hodges. Hodges. “That“That sort of sort thinking of thinking is going is going to follow to follow into intospelled otherother industries industries and and package package formats, formats, including including Among the things the things that that pleasantly pleasantly surprised surprised the the cartons. cartons. We’llWe’ll be able be able to change to change an image an image or orAmong Boutwell owens owens teamteam is how is how quickly quickly the the artwork artwork fromfromBoutwell Highcon machine machine wentwent fromfrom arrival arrival and and carton cartonto toHighcon installation to commercial to commercial production. production. “Within “Within a a carton. carton. It’s It’sinstallation of itsofarrival its arrival it was it was creasing creasing and and cutting cutting not not cheap, cheap,weekweek cartons, “says“says Lorenz. Lorenz. because because it itcartons, takestakes time time at at Pat Reynolds, Pat Reynolds, VP Editor VP Editor

DART, Digital Adhesive Rule Technology extrudes the rules needed to make carton creases. The rules are then hardened by UV light so that they can produce creases as sheets of printed cartons pass through the system,

Commercial Examples, Shown here are two well known brands benefiting from the short run/quick turnaround capabilities of Boutwell Owens digital converting systems.


PACKAGING FOR EGGS Epicur, a division of the agricultural holding Leto, produces and sells poultry and eggs in the central region of Russia. The company has been on the market for over 15 years and its products are sold by more than 30 retailers.

Three years ago, Epicur began a project to develop a packaging solution for cartons of 20 eggs under the Leto brand. The packaging solution was recently updated and improved in cooperation with Stora Enso Renewable Packaging, resulting in a 40 per cent increase in sales during the first month after the product was launched. The new packaging solution offers many advantages compared with the old solution. A new structural design made it possible to use a 20 per cent smaller package for the same number of eggs, what meant less packaging material. The company, in turn, has experienced benefits in terms of logistics – a 60 per cent improvement for transportation on pallets – thanks to the new construction of the box. The rigid structure has significantly reduced the amount of breakage, making it easier for consumers to carry the product and guaranteeing safety during transportation. But most importantly, the new packaging has provided extra shelf space – the most precious and expensive commodity in the consumer-retail value chain. Where the company’s merchandisers were previously able to store eight boxes, they can now fit ten to 12.

Epicur can now collaborate with various types of retail operations, from small grocery stores to hypermarkets, placing its new boxes on shelves or on pallets and mini-pallets. “We started looking for something different and new, and settled on a solution that combined several features – on the one hand, freshness and quality are a priority, but we also decided to be as innovative as possible. This may sound bizarre given that we were talking about the egg market and even our colleagues had some doubts that it would work, but we are successfully moving in this direction, primarily due to the innovations in packaging, eye-catching designs, new technologies and other inventive approaches,” says Andrey

Filimonov, Sales and Marketing Director at Epicur. “We managed to break into this market because we decided not to choose the most common niche. It’s quite difficult to develop a new category by instilling new consumption behaviours, rather than focusing on an established niche, since habits are not easy to change. But we were there from the very beginning and are now starting to reap the fruits of our labour.”


The BCS Auto BOX is quite simply he most advanced boxmaking machine vailable today. Using servo control, this machine can automatically change from one style and size of box to another in just seconds. All tools are controlled through the simple touch screen and set themselves automatically, so whether you need to produce small boxes, large wraps or more complicated boxes, the BCS AutoBox can make them all at the touch of a button. To complete the potential of the BCS AutoBOX, there is also a range of

1. Produce over 100 box styles including 0411, partitions, trays, 0201, pallet boxes and more 2. Speeds of up to 1.200 boxes/hour 3. Uses 25% of the energy of conventional machines 4. Fully auto-set via touch screen 5. Make blank wicths from 100mm to 2600mm x unlimited lengh 6. Run all types of corrugated, even plastic. Only BCS now has a Just in time solution to short run low cost box making.

shipping frees, be it courier or air freight. The oversize box could be a complete layer of product! Your end user may needs 100 / 200 boxes per week, not 1000 which entails a big invoice and having cartons he not need for a month. With the Autobox one to two minute set up time and print and variable data. You will have the edge.

TYPICAL SET TIM

www.tosijasindo.com E: tosijkt@cbn.net.id +62 21 75902726


Putting The Fun Back Into Packaging The corrugated market is getting tough with over capacity and the slowdown economic growth. Therefore you have 2 choices only either fighting in the red ocean for a lower margin or switch to the “blue ocean” with a new innovative products.

From

Flat

To

That

Several U.S. independent converters have teamed up with a South Carolina company to offer a new style of collapsible fast setup box. Offering their customers a solution that adds value. The patented process was developed by Donn Costanzo, an industry veteran who was looking for an innovative and alternative corrugated packaging solution. While working at a small sheet plant he developed pop-up style boxes that had the potential to reduce fiber content, offer better stacking strength, nest within themselves and eliminate premaking cartons and the need for taping. ThatBox™ is actually a catchall name for the machine, the company, and the process that offers board converters a new opportunity to produce innovative designs for collapsible fast setup boxes.

Additionally, they have reduced raw material usage by up to 46% and have been proven to reduce setup time by 50% over the typical 1-2-3 bottom box, 38% on the typical crash-lock equivalent and by as much as 66% over fold-up designs, Costanzo says. Order sizes off the machine are not limited to smaller quantities. Costanzo says most of the jobs he runs range between 20,000 and 500,000.

Costanzo, who has 25 years of corrugated industry experience and is owner of The Packaging Warehouse, Inc., in Fort Mill, S.C, engineered the patented ThatBox specialty folder-gluer. The 8-x 20-ft long machine currently runs microflute up to doublewall. Machine speed is about 3600 boxes an hour, or one a second, and makeready times average 20 minutes. It can use cold set or hot melt glue and comes standard with a Valco Melton hot melt glue system and Allen-Bradley touch screen controls. The machine usually requires two operators.

ThatBox offers a program where converters can plug in the size or dimension of the box that they arevtrying to replace to find out if ThatBox is a more suitable design. The company is also working on marketing kitsvbecause the sales approach is different from selling a traditional box. “You’re usually selling on price,” Burke says. “We look at how our design could save them money and then sell on total cost savings, be it labor, downgrading board, or tape savings, to be able to put the total cost solution together.”

The machine can produce a wide range of box sizes and shapes, including retail packaging and P-O-P displays, and offers advantages over traditional designs. The boxes can be taped or, depending on the design, closed with a quick locking tab. No knives or tools are needed for breakdown.

The equipment and box designs can be leased and licensed by box makers or end-users. The lease runs for two years with automatic renewals. ROI is estimated at six months to one year. ThatBox has established an agreement with the plants that lease the machines, giving them exclusivity to serve their respective regions of the country.


www.tosijasindo.com tosijkt@cbn.net.id +62 21 75902726

tosijkt@cbn.net.id +62 21 75902726 www.tosijasindo.com


Packaging Solution www.tosijasindo.com tosijkt@cbn.net.id +62 21 75902726

ETERNA LEAD EDGE FEEDER Allows consistent and precise feeding of wide range corrugated board with various board quality. Unique polyurethane wheel surface with grid lifter and air cushion ensures smooth feeding of warp boards with consistency and register accuracy. Front gauge position back and forth adjustable to accommodate variation in gripper margin Fine vacuum suction adjustment through invertor adapts to wide range of stock

DIECUTTING SECTION Safety door and diechase safety locking system to ensure safe operation. Complete lost sheet control throughout the entire machine. Centerline system compatible to Centerline II for quick change over and short set up time. Air cushion underneath the cutting plate for easy cutting plate

STRIPPNG SECTION Heavy duty double action stripping system to ensure positive stripping

DELIVERY SECTION

Centerline system compatible to Centerline II for quick stripping die set up.

Front, back and side joggers to ensure neat stacking

Motorized upper frame suspending hoister.

Non-stop delivery ensures continuous productivity

Quick lock stripping pins used for quick set up of simple stripping work.

Batch counter output


is Your In-Plant

System Ready for Digital? Ryan Brown of Kiwiplan addresses some of the workflow issues you will need to consider before venturing into digital printing and short run production. Over the last three decades, the corrugated packaging industry has seen its share of changes. Global market consolidation, capital equipment upgrades, increasing market competition, graphic rich packaging, and sustainability are all areas that continue to evolve. As a result, our customer’s expectations for the highest quality, speed to market delivery, at the most competitive price, are here to stay. Digital technology plays a large role in the future of corrugated packaging. Digital printing will provide a niche in the market place to meet customer demand for smaller quantities, shorter lead times with no upfront tooling or setup costs. Which leads to the key question, what impact will a digital corrugated press have on your plant?. From an independent perspective, operating a corrugated plant under the traditional way of thinking may not be the long-term solution. The ongoing challenge in our industry is convincing the younger generation to build a career in the packaging industry. No longer are independents “brown box” focused and selling on a two-week lead time. Market competition drives a JIT mentality to service customers. Expanding product offerings allows plants to be a “onestop” shop for their clients, eliminating the need for customers to purchase product from multiple vendors. Building long-term relationships with our vendors and customers will always be a fixture in this industry. But in some cases, this is minimized in today’s market with online purchasing and immediate customer satisfaction.

Independent owners continue to upgrade their IT staff and implement software to provide manufacturing visibility and accountability. MIS solutions play a critical role in the success of your plant. Whether it’s increasing throughput and efficiency in your plant or improving on-time delivery to your customer, a MIS solution is important in evaluating your plant’s performance. There are six specific areas where MIS solutions will have an impact on your plant with the addition of digital technology. These components include: (1) product designs (specifications), (2) system integration, (3) costing, (4) planning, (5) reporting (6) logistics. Product Designs Incorporating digital processes will create a need for greater flexibility with product designs and defining and suggesting the optimal machine routing based on order quantities, print quality and lead times. For short run volumes and the ability to eliminate extra machine operations, running the order through the digital press might be more cost-effective. Ultimately, defining the customer’s expectations will determine if the order is run digitally or through an analog press. System Integration System integration plays a key role in accurate workflow through a plant. Digital processes have a direct impact on the design department. Orders are fed directly from design to the digital press, eliminating tooling steps and increasing

The MIS planning system needs to determine machine capacity based on order details and machine crew availability/downtime.


accuracy. Implementing a bidirectional interface between your CAD and MIS systems ensures accurate workflows to the digital printers. This can help reduce future bottlenecks in design. In addition to bi-directional CAD links, converting machine interfaces provide setup details and schedule information. Production information is retrieved automatically, eliminating the need for manual production reporting. As the digital market continues to grow, protocols will be built to handle similar transmissions. Combining a digital press with your existing plant workflow can be challenging and complex. It is imperative that your MIS solution integrate directly to your order management system, manufacturing, and finished good inventory. Costing Costing is a key component in deciding if it is more cost-effective to run as digital or analog. Running the order over the digital press eliminates tooling charges and machine setup times. Waste is greatly reduced, but volume output is lower. Sheet costs have direct influence on costing and routing. Is it more cost-effective to run an order digitally with stock sheets or purchase sheets? Order volumes, sheet supplier lead times, MSF minimums and waste all influence the routing and costing of a product design. Planning Planning plays a primary role in the success of your plant. The MIS planning system needs to determine machine capacity based on order details and machine crew availability/downtime. Also important is identifying tooling and materials required for each order and meeting the customer’s required due date and evaluating pre and post production history to determine how the job will be run in the future. Having the ability to evaluate “what if” scenarios in advance of making changes to your order mix or machine constraints is also key. Reporting Having the ability to generate reporting tools from your MIS solution provides deliverable information that is important to your business. Daily feedback in the form of dashboards, charts, and tables are all reporting tools to monitor key performance indicators and trends. By adding a digital press, evaluating production performance of analog vs. digital will become

Daily feedback in the form of dashboards, charts and tables are all reporting tools to monitor key performance indicators and trends.

even more imperative. Consolidating data from specific plants or the entire enterprise will allow you to compare machine production feedback and sales history. Logistics The final MIS component to have an impact on a plant is logistics — improving integration between shipping and production to optimize loads and reduce shipping costs. Digital capabilities will produce an increased volume of smaller orders with greater delivery frequency to your customers. Many shipments today are not at full capacity because jobs expected to ship are not produced at the scheduled time. Responding proactively can prevent late deliveries and increase customer satisfaction by creating an alert system that notifies shipping of production order delays. Speed to market expectations is driving the future growth of digital technology. Proof to production eliminates offset and flexography setups. Fast-cycle prototyping to produce retail ready applications will add to your portfolio of services and new growth. These factors are reasons why it is important to integrate a software solution to manage your overall workflow complexities. ■ Ryan Brown is currently Senior Account Executive of Kiwiplan in Cincinnati, Ohio. He can be reached at ryan.brown@kiwiplan.com


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