First Packaging Asia News August 2014

from the

EDITOR Pac k aging is m y p a s s i o n . I l o v e p a c k a g i ng and w i sh to contri bute to the packagi ng i ndustr y in In dones ia. T h i s i n d u s try h a s ma d e m e become w hat I am today. I am so l ucky to get t he o ppor t unit ies t o tra v e l a ro u n d th e w o rl d e ither for trai ni ng, to attend exhi bi ti on or bri ng cutome r t o a tt end t he ac c e p ta n c e te s t i n Ita l y, Ge rman, U K , A meri ca, Japan, Tai w an, C hi na etc. E nj oy t he friends hip wit h a l l m y c u s to m e rs , m a n u fa cturers as w el l as my fel l ow shi p associ ati on packaging friends . P ac k ag i n g i s th e w o rl d w h e re I l i ve and l i fe.

My ex pos ur e t o th e w h o l e w o rl d o p e n m y e yes about the advantage and the di sadvantage of al l k ind p ac k aging in t he w o rl d . L a te l y I a tte n d e d the FTA i n B al ti more and been i nformed that the Fl ex ible Pac k aging in N o rth A m e ri c a i s j u s t 1 8 % o f the w hol e total packagi ng, w hi l e i n Indonesi a fl ex ible p ac k aging has 3 9 % s h a re . It s h o w s th a t f l exi bl e packagi ng i s very i mportant to Indonesi a (as well a s ot her c ount r i e s w i th l o w i n c o me ). As s ingl e pack product (product cost about R p. 1.500 or US$ 0 ,125) . T he pr o d u c ts s ta rte d w i th s h a m p o , but now i t goes to mi l k, coffee even detergent, etc (see p age 4) .

Fi nally I got t h e o p p o rtu n i ty to s ta rt my contri buti on to the packagi ng i ndustry i n Indonesi a by star t ing t he F I R S T PAC KA GIN G A SIA – Trai ni ng and Innovati on C entre. Thi s centre w i l l held sem inar and t r a i n i n g fo r th e p a c k a g i n g i ndustry. The trai ni ng and w orkshop w i l l be start fr om p ac k aging des ig n , p re p re s s , p l a te ma k i n g as w el l as di emaki ng and sampl e maki ng.

D et ails of t he t ra i n i n g .

By t his y ear I nd o n e s i a h a s b e c o me th e N e w Face i n the R etai l Industry as Indonesi a has reach 167 Billiion US $ in F o o d R e ta i l i n g . T h e In d o nesi an processed food market i s domi nated by sever al l ar ge loc al c omp a n i e s i n c l u d i n g In d o fo o d Sukses Makmur, one of the w orl d’s l argest i nstant noodle mak er s , Wings G ro u p , M a y o ra a n d Ga ru d a Food. W hi l e the pharmaceuti cal sector has been growing steadily wit h do u b l e d i g i t c o m p o u n d g ro w th si nce 2009.

Gl obal F lex ible Pa c k a g i n g In d u s try w i l l reach $231 bi l l i on by 2018 w i th a grow rate of 3.5 perc ent a nnually. I ndon e s i a s ti l h a s l o w c o n s u m p ti on of pl asti c j ust 10 kg annual l y compared to 56 k g in Th ailand and 45 k g i n Ma l a y s i a . A t p re s e n t w e grow i n fast phase at 22.47% i n 2011 i n spi te of t he g l o bal ec onom i c s l o w d o w n a n d c o n ti n u e g row i ng al bei t at a sl ow er pace i n 2012 at 7.75% to 3 . 48 million M E T. Fl ex ible pac k ag i n g h a s tre me d o u s o p p o rtu ni ti es to serve the consumers. R i gi d P l asti c has shif t ed to f lex ible ( s uc h a s H e i n z k e tc h u p , K ra ft Mayonese, etc) as w el l as Fol di ng B oxes (D etergen, M ilo) .

I hav e a pic t ur e s o f th e p a c k a g i n g i n th e o l ddays there w ere none i n Fl exi bl e P ackagi ng (see ph ot o b elow) In dones ia dom i n a te d w i th R o to g ra v u re i n the fl exi bl e packagi ng as the country has 251 mi l l ions p opulat ions , t he re fo re a l o t o f p ro d u c ts has very l ong run producti on (such as i nstant noo dle, d et er gen, s nac k s , e tc ) a s w e l l a s th e c o s t of the cyl i nder engravi ng i s very l ow compare to deve lop count r y. W hile th e k n o w l e d g e o f fl e x o i s not w i despread.

N owaday s wit h th e h i g h s o p h i s ti c a ti o n s y s tem i n the fl exo, i ndeed fl exo can pri nt as good as r ot o a nd would be a n i c e c o m p l e me n t fo r th e fl exi bl e packagi ng i n Indonesi a especi al l y for some spec if ic requir em ent s uc h a s s tre tc h fi l m fo r d i a p ers, ti ssue, etc. A s w el l as the new technol ogy i n flexo p r int ing as allo w a s h o rtru n c h a n g e o v e r w i th auto regi strati on to reduce w aste as mi ni mum as p os s ible. Color m a tc h i n g fa c i l i ty a l s o p ro vi ded w i th S marth Match Ink K i tchen that connect di re ct ly to t he pr int ing m a c h i n e a l l o w i n g i t to ma k e correcti on as necessary.

H er ewit h we pu t a b a s i c k n o w l e d g e o f fl e x opri nti ng, now A ni l ox R ol l (the heart of the fl exo pri nt ing) h as it s jour ney to H i g h Qu a l i ty P ri n ti n g a n d w i l l conti nue to the P l ate R equi rement i n the next i s sue o r y ou c an join o u r F l e x o Tra i n i n g w i l l b e hel d monthl y from A ugust 2014 on w ard.

Enjoy Reading th e F i rs t R e a l Pa c k a g i n g New s i n Indonesi a

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Expanded 22.4 % in 2011 and 7.75 in 2012 to 3.48 million MET

Indonesia’s plastic industry is growing healthily in line with the country’s increased consumption of all manner of products ranging from food & beverages The local plastic market expanded by 22.47% in 2011 in spite of the global economic slowdown and is expected to continue growing albeit at a slower pace in 2012 at 7.75% to 3.48 million MET. Indonesia’s per capita consumption of plastic goods remains low at 10 kg annually compared to 56 kg in Thailand and 45 kg in Malaysia (Ministry of Trade and Industry) leaving plenty of scope for future growth. Indonesia has a relatively developed downstream plastic industry with plenty of potential for further growth, yet a reliance on imported raw materials has somewhat held back the sector’s potential on a global scale. In 2010, demand for olefin and aromatic products reached 2.9 million MET with local producers supplying 1.2 million MET. Demand for Polypropylene in particular has increased significantly from 750,000 MET in 2010 to over 850,000 MET in 2011 however only two local players have the capacity to produce on the scale required by the domestic plastic industry; namely Chandra Asri and Pertamina with a combined annual output of 520,000 MET (IFT). The under

In addition to the under capacity of supply, the protective measures in place for local raw material producers through the Minister of Finance Decree No.19/2009 whereby up to 40% of imported petrochemical products such as polypropylene and polyethylene are subject to 15-20% import tariffs are actually hindering the domestic plastic and packaging industry. In 2011, the average price per tonne of polypropylene from Singapore and Thailand was $1,400 USD compared to $1,750 USD from Indonesian producers. Downstream plastic producers therefore prefer to import raw materials Indonesia’s packaging industry has

capacity of oil refineries to produce naphtha and condensate for the upstream petrochemical industry has led to a weakness in raw material supply for the downstream plastic industry. The upstream plastic sector has therefore not been able to keep pace with local demand from the downstream sector. This has subsequently forced downstream players to import raw materials mainly from markets in the ASEAN which supply 85% of total imports as well as Europe and USA which make up the remaining 15% (Upstream Plastic Association APHINDO).

Plastic packaging both flexible and rigid has become the most popular form of packaging making up nearly 60% of total packaging demand with paper and board packaging constituting 25%. However, local Indonesian packaging producers remain behind markets such as Japan, Thailand and China when it comes to knowhow, technology, use of the latest materials and production line flexibility.

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been expanding in line with the country’s increased consumer purchasing power and is expected to grow by 11.1% in 2012 reaching US$4.36 billion. Key sectors such as food and beverage as well as pharmaceuticals are the main sources of demand for packaging materials with the former consuming 67% of total packaging supply according to the Indonesian Packaging Federation. BRICdata Report released in January 2012 forecasts that the country’s packaging industry will reach a value of $9.6 billion USD in 2016.

Global Business Guide Indonesia – 2012

The New Face of the Retail Sector The food-retailing sector is faced with many challenges and opportunities. On the one hand it is affected by the world economy, cost variations, growing competition and the focus on sustainable issues. On the other hand, technological innovations offer new ways to conduct business, communicate with customers and share information with stakeholders throughout the value chain.

The globalisation of the food industry has led to structural changes and complex market conditions, including the concentration and expansion of retail chains. The result has been increased competition and pressure on costs, a development which amongst other things leads to integration between the various stages of the food supply chain. For consumers this means an unparalleled range of products, resulting in simplification and convenience, but also in some confusion.

More consumers and a changing market order By 2025 the world's population is expected to

increase from 6.8 to 8 billion, and more will grow to be older. This, combined with migration to urban areas and rising prosperity, will infl uence how people choose to spend their money and how the retail food sector will evolve and change. The food-retailing sector in high income countries is stagnating, while in developing regions such as Brazil, India, China, Southeast Asia, Eastern Europe and parts of Africa it is up-and-coming. Here, there is a growing middle class who are moving into the cities and who have more money to spend, resulting in an increased demand for food both locally and globally. This also aff ects the structure of the food stuffs.

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Small, fast growing value USD 7.31 billion in 2012

Indonesia’s pharmaceutical sector has been growing steadily with double digit compound growth since 2009 and projections of 14% growth for 2011 according to the Indonesian Pharma- ceutical Association. The high growth figures are a reflection of the rising disposable incomes of the population, but placed into context the value of the market itself is very small for a country of 240 million people.

The lack of health- care coverage, low quality of services on offer and the high cost of drugs relative to average wages has given rise to trends such as self medication and going abroad for treatment for those who can afford it.

Indonesia is a highly attractive market for the pharmaceutical industry given its large population as the fourth most populous country in the world, but spending on healthcare is very low. Indonesians spend on average $17 USD per capita on pharmaceuticals; 25% below that of the Philippines while total spending on healthcare is $52 USD a year, compared to $300 in Malaysia, according to the World Economic Forum (2010). In terms of consumer preferences, sales for over the counter drugs are growing faster than that of prescrip- tion drugs with growth at 17.3% and 9.9% respectively for 2010, but the latter has the dominant market share at $2.4 billion USD or 54.5% of total consumption for 2010 (Statistics Indonesia). Vitamin and nutritional supplements are also growing in popularity among more health conscious consumers. Total sales reached $4.4 billion USD at the end of 2010 (out of $700 billion globally), an increase of 11% from 2009.

The sector is highly competitive and heavily fragmented among more than 200 companies, 35 of which are foreign owned including the world’s largest producers such as Pfizer and GSK. The local producers are dominant in the market, making up 79% of total market share. Of the top ten companies, 7 of them are local companies with Kalbe Pharma leading the pack at 14% of the market. The top

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three global drug producers namely Pfizer, Bayer and GSK collectively hold only 8% of the market. The sector is heavily concentrated among the top companies with around 20 companies accountable for 80% of total production and locally produced drugs making up 75% of total consumption. State Owned Enterprises play a key role in generics and vaccine production through Kimia Pharma, Indofarma and Bio Farma.

The wide availability of counterfeit drugs is a major problem in Indonesia with the total amount in circulation estimated at 15-20% of the total drugs on the market according to the International Pharma- ceutical Manufacturers Group. The Indonesian Pharmaceutical Association states that 95% of locally produced drugs are being consumed domestically, with the remaining 5% exported. Yet, exports of Indonesia’s pharmaceutical products have been growing over the past five years by an average of 15% from 2005-2010. State owned Bio Farma produces the world’s cheapest polio vaccine and has recently seen a surge in exports, mainly to India where animal based vaccines cannot be produced due to religious reasons. Kalbe Pharma has been present in Africa for 15 years, beginning with Nigeria and since expanding into Zimbabwe, Mozambique and Ghana with production facilities in Nigeria from 2005.

The real impact on the industry will come with the eventual introduction of a national social security system that will grant coverage to an estimated 50% of the population that is currently uninsured.

However, boosting the competitiveness of the pharmaceutical manufacturing sector is a necessity to keep drug prices down and within reach of the general population to avoid local producers losing out to imports from India and China.

Global Business Guide Indonesia – 2012

Global Growth Flexible Packaging Industry to Reach $231 Billion by 2018 The global flexible packaging market will grow at a rate of 3.5 percent annually through 2018, according to a major new study by Smithers Pira. The market tonnage in this segment is estimated at 24.3 million tons in 2013 and is forecast to grow at a compound annual growth rate of 4.1 percent during the period of 2013 through 2018, to reach a total of 29.8 million tons.

According to Smithers Pira, the U.S. is the largest national market for this type of packaging, with a volume share of nearly 14 percent in 2013. Asia Pacific is the largest regional market, with 38 percent of global market volume and is also predicted to be the fastest growing market for consumer flexible packaging over the forecast period.

•Technical developments •Cost per package •Sustainability initiatives •The continued increase of the consumer class in Asia Pacific, America and Eastern Europe •The replacement of traditional pack types with flexible packaging In addition, the industry has benefited from a range of new products being developed by brand owners in an increasingly competitive consumer marketplace. According to Smithers Pira, barrier flexible packaging will continue to grow in importance, as consumer packaged goods companies and major retail chains demand greater product protection and longer shelf life.

The global packaging market stood at $799 billion in 2012, increasing by 1 percent over 2011. Sales are projected to increase by 3 percent in real terms for 2013, to $824 billion. Smithers Pira forecasts annual growth of 4 percent per year to 2018 in the world packaging market with sales to reach more than $1 trillion by 2018.

The study explores several reasons for this high forecasted growth rate. These include:

The flexible packaging sector has traditionally had an extremely diverse and fragmented structure, consisting of a few large global operations and many small to medium sized national and regional companies. Technical advances have allowed flexible packaging to become the format choice for a wide variety of consumer products. F1exible packaging has, as a result, become substantially more sophisticated, with high end graphics, high oxygen and moisture barriers, and new functionality.

The Future of Global F1exible Packaging to 2018 is avail- able to purchase online and receive immediately for $6,480.

For more information, visit www.smitherspira.com .

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Changing Tides

The Shift From Rigid to Flexible Packaging The way consumers view and interact is to replace processprocess is to replace plastic plastic bottlesbottles with with The way consumers view and interact with with packaged products is changing. a lightweight, pouches.

This flexibleflexible pouches.

This packaged products is changing.

With aWithlightweight, growing on convenience development has been development has been slowly slowly gaininggaining growing focus focus on convenience and and sustainability; traditional pack are types are traction over the years, but widespread traction over the years, but widespread sustainability; traditional pack types being replaced by innovative and flexible yet occurred.

The primary usage usage has nothas yetnot occurred.

The primary being replaced by innovative and flexible designed to meet consumer has issues been with issueshigh with high reasonreason for thisfor hasthis been optionsoptions designed to meet consumer The flexible packaging is speed filling:PET While PET bottles be filled speed filling: While bottles can becan filled needs.needs.

The flexible packaging marketmarket is estimated to be $351 worthbillion $351 by billion at speeds of packages 1,500 packages per minute at speeds of 1,500 per minute estimated to be worth 2018by 2018 and rapid that growth rapid growth is projected to (ppm), the process ofpouches filling pouches (ppm), the process of filling falls falls and that is projected to the expense of sectors, other sectors, only 400 ppm. to onlyto 400 ppm. come come at the atexpense of other as traditional rigid packaging. such assuch traditional rigid packaging. the newer PET bottle Some Some of theof newer PET bottle filling filling prime reason that growth is the range technologie are designed to transport technologie are designed to transport A primeAreason for thatfor growth is the range of product new product developments, through thevia cycle theThis neck. This bottlesbottles through the cycle thevia neck. of new developments, which which to demonstrate is forecasted to occur as as early as 2014, is forecasted to occur as early 2014, have have helpedhelped to demonstrate flexibleflexible packaging's potential to consumers. and use of pouches wouldwater allow water and the usethe of pouches would allow packaging's potential to consumers.

Examples the"twist Hallsoff" "twist off" Stick companies to reduce their packaging companies to reduce their packaging Examples includeinclude the Halls Stick converted

by Sonoco & Co--a by as as much as 50 percent. weightweight by as much 50 percent. pack pack converted

by Sonoco & Co--a package one sweet flexibleflexible package which which allows allows one sweet to be dispensed losing others. FLEXIBLE FLEXIBLE PACKAGING BENEFITS PACKAGING BENEFITS to be dispensed withoutwithout losing others.

• to decorate • Easy toEasy decorate FLEXIBLE ADVANTAGES • Barrier properties • Barrier properties FLEXIBLE ADVANTAGES So, sets what sets products these products apart from • Light weight • Light weight So, what these apart from thepackaging rigid packaging that customers are • Larger • Larger sizes sizes the rigid that customers are used to seeing on supermarket • Dispensing • Dispensing more more used to seeing on supermarket shelves?

In the sixth installment of Smithers • Design variation • Design variation shelves?

In the sixth installment of Smithers the forecaster Pira's Pira's bulletinbulletin series, series, the forecaster examines the latest packaging EASE OF DECORATING EASE OF DECORATING examines the latest flexibleflexible packaging as as welltheas main the main of thecost total any rigid package Part of Part the total ofcost any of rigid package marketmarket trends,trends, as well advantages of flexible packaging is theand label and are these are applied is the label these applied as partas part advantages of flexible packaging over over more traditional rigid packaging solutions. theprocess. filling process. of the of filling Labels Labels come come from afrom a more traditional rigid packaging solutions. different thanbottles the bottles different suppliersupplier than the they they LlGHTWEIGHTING to, meaning theybecome often become a adhereadhere to, meaning they often a LlGHTWEIGHTING The bottled is a prime bottleneck the process. filling process. bottleneck in theinfilling With With The bottled water water sector sector is a prime example of a market packaging flexibleflexible packaging example of a market materials such as pouches, the such as pouches, the where where materials have have converting of the converting of the gottengotten lighter lighter over over producing less generally pouch pouchgenerally time, time, producing less However, includes full printing includes full printing waste. waste.However, manufacturers features features along along with with manufacturers have have reached the the lamination the lamination of films,of films, now now reached the if needed.

This printing if needed.

This printing stage stage where where marginally only only marginally p o l ypeot lhyyel tehnyel e n e increases theofcost of terephthalate increases the cost terephthalate (PIT) (PIT) the pouch and be the pouch and has nohas no bottlesbottles cannotcannot be effect on filling. made lighter. much lighter. effect on filling. made much The step next instep The next this in this 8

Another key decorating feature is the printing of security or brand identity graphics, something just being developed for flexible packaging. This comes with an added challenge: How can security graphics be included in a package's design without making them obvious to a potential counterfeiter? Solutions include pigment additives that only appear under certain lighting and inks which disappear and reappear depending on environmental conditions.

Such technology isn't possible with rigid alternatives.

BARRIER PROPERTIES One of the main advantages of flexible packaging over rigid packaging is a company's ability to "dial in" the appropriate barrier for the product and its end use. Many products require a reasonable oxygen barrier: • Juice • Wine • Milk Bottles made from PET, glass or multilayer paperboard laminate provide a barrier for all products, whether one is required or not.

A flexible package can be supplied with barrier properties that can provide anything from moisture and aroma protection to essentially the same benefits as glass. Aluminum foil has been used for many years as the ultimate flexible barrier material, although its properties are compromised by recent flexible packaging developments, such as standup pouches. When creased in this way; the foil can fracture, leading to pinholes, which let in oxygen, water and light.

To combat this, new flexible materials such as styrene acrylonitrile (SAN), have been developed as foil replacement. SAN is

tough, even in thin layers, and recent production methods have improved the flexible properties of this resin.

PACKAGING VARIATION & DISPENSING Packages made from flexible plastic films can be made into practically any shape imaginable, and the inclusion of handles, fitments and opening features is quite straightforward. Today’s pouches often have advanced dispensing functions, such as screw top caps and laser scored tear features. Flexible packaging can also be used to enhance rigid packs, an example being shrink labels used for plastic bottles. These labels not only provide attractive decoration features, but also additional levels of barrier protection against oxygen or light. Other developments include fitments for use with flexible packaging for liquids, with traditional dispensing taps leading to connecting valves, one way dispensers and pop up straws.

LARGER SIZES As technology has improved, the flexible packaging market size has increased and the ability to produce packaging of ever larger sizes has become possible. Larger retail flexible packages are now becoming the norm as consumer packaged goods and retail outlets alike take advantage of larger format packaging. For example, the classic paperboard carton and unprinted flexible liner used for dry cereals is rapidly being replaced with flexible pouches that incorporate high end graphics and easy to reclose features.

Incorporating many of the benefits of f l e x i b l e packaging into a large format package for food service

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liquids, the pouch makes it easy to dispense product and makes sure every last drop is utilized. We can expect to see many new types of pouches being introduced for large format liquid packaging as consumers better understand the benefits and converters develop new technologies to their fullest.

Looking for more information about the flexible packaging industry? Smithers Pira offers a range of in depth market reports containing 5 and 10 year forecasts of the industry available to purchase now, such as The Future of Global Flexible Packaging to 2018.

Flexible Packaging shaping up in 2014 The flexible packaging industry outpaced rigid packaging alternatives in growth during 2013, capturing a higher percentage of demand both in the US market and globally. Flexible packaging, particularly in pouches, continued to elbow its way into new applications where it has taken a larger market share than in the past. That was a nice banner headline for the industry last year, especially for the plastics segment of flexible packaging.

Globally, innovation has to be primarily focused on adhesives.

Solventless lamination is the solution for the majority of the applications while targeting productivity, quality, energy consumption and emissions reduction. The formulation of new adhesives with shorter time to food contact, allowing for reduced inventory time, will push this technology to capture even larger shares. As well with machines, performances growing in the territory of high speed, adhesives and coatings in general will have to be reliably handled under extreme performance conditions.

Mondi Americas is part of Mondi, the international packaging and paper

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The new sprayer pouch from Mondi Americas offers manufacturers an alternative to rigid bottles.

group, which has major operations in central Europe, Russia, the Americas and South Africa.

More education is needed, starting in elementary school, because it is there where the first lessons about “bad plastics” are being taught. We as an industry, however, also need to face our responsibility to educate consumers about recycling or other safe and inert disposal methods for plastic waste such as “Waste to Energy” programs.

Growing fast with 30 million person in middle class

The Indonesian processed food market is dominated by several large local companies including Indofood Sukses Makmur, one of the world’s largest instant noodle makers, Wings Group, Mayora and Garuda Food. Such companies have embarked on strategies to not only entice customers by price, but innovating to produce tailored, value added products that appeal to the Indonesian consumer’s preference for traditional food in an instant form such as Mayora’s instant congee. Foreign companies and brands are also well integrated into the market, including Nestle and Kraft Unilever, often in joint ventures with local companies to access distribution networks. The sector as a whole is estimated to have over 6,000 compa- nies; approximately 90% are classified as large and medium sized companies which are all mainly appealing to the price sensitive lower income customers. Output of the sector grew by 176.3% over the period of 2000 to 2009 putting the industry as a whole at a value of $194 billion USD at the end of 2010 according to the Indonesia Food and Beverage Business Associatio.

GAPMMI. Both domestic consumption and spending on food and beverage, particularly processed foods, has been steadily increasing at a rate of 14.1% a year from 2006-2010, driven by rising incomes as well as inflation of food prices. Total sales for 2010 reached $63.4 billion USD and are projected to grow by 13% to $76.59 billion in 2011 according to GAPMMI. The processed food sector had previously been confined to the domestic market, but its contribution to exports has been increasing from $3.7 billion in 2009 to $5.7 billion in 2010. The Ministry of Industry has put targeted exports from the sector at around $6 billion for 2011 and sector growth as a whole at 8.4% annually to 2013.

The ready availability of natural resources such as cocoa and palm oil as well as the size of the domestic market makes Indonesia an attractive production base for multinational companies. However, the sector still faces the challenge of being regionally and globally competi- tive. Imports of essential raw materials such as wheat, milk and sugar make the sector far from self sufficient. Imports of processed foodstuffs such as seasonings make up substantial part of total sales and have been increasing with the introduction of the AFTA and CAFTA. In 2011, the amount of imports is set to increase to $2.79 billion USD, up 15% from 2010 (GAPMMI). High logistical costs from poor infrastructure add to domestic operating costs as the country has only 6 ports that can be used for large scale importation of foodstuffs, while others for nationwide distribution are heavily congested. The rise in electricity tariffs and increasing inflation impacting raw material such as wheat and sugar are also placing pressure on operational costs for manufacturers. In a low income market such as Indonesia, consumers are highly sensitive to small increases in product prices given that an average of 50.62% of total per capita income is spent on food (Statistics Indonesia).

The World Economic Forum that took place in Jakarta in June 2011 saw the announcement of large scale invest- ments by food & beverage manufac- turers into the country including Coca Cola which plans to invest up to $500 billion USD and Nestle that will set up a $200 million USD new dairy plant in West Java.

Global Business Guide Indonesia – 2012

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Esko enables you to..

12 3 Gain Data & Process Control

Innovate your packaging development

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Reduce costs

4

Reduce time to market

Packaging News

Amcor Announces Indonesian Flexible Packaging Acquisition Amcor announces that it has entered into an

customers as well as adding to the local talent pool.

agreement to acquire Bella Prima Packaging, an Indonesian flexible packaging business, for $27

Amcor’s

managing

director

and

CEO,

Ken

million.

MacKenzie says: “Indonesia is an attractive market for

Bella Prima has two plants in Jakarta specializing in

flexible packaging given its rising per capita income

the high-growth shrink-sleeve label and lidding

and changing retail formats. The Bella Prima

business. Sales in CY2013 were approximately $30

acquisition gives Amcor the opportunity to broaden

million.

its product portfolio in attractive end market segments and deepen our relationships with key

Amcor currently has one flexible packaging plant in

customers. Given the expected synergy benefits, it is

Indonesia. This acquisition is complementary to the

anticipated returns will exceed 20 percent by year

existing

three.”

operations

as

it

broadens

Amcor’s

participation strategy with its multinational and local

Huhtamaki has entered into an agreement to acquire Positive Packaging, a privately owned flexible packaging company with nine manufacturing facilities in India and the United Arab Emirates as well as significant business in Africa and other export markets. With the acquisition Huhtamaki continues to implement its strategy of quality growth and strengthens its position in the fast-growing emerging markets.

Goss International has promoted Tim Mercy to the newly created position of managing director – Asia

This is what Coke was missing out on: • The can uses no paint, which can introduce

Pacific. He now leads the unified Goss sales, service

pollutants into the environment when they are

and

printed and when they are broken

support

organization

serving

commercial,

packaging and newspaper operations throughout the region, with the exception of China.

down for recycling.

• The Naked can saves the energy and paint required to manufacture coloured cans.

The introduction of plain tobacco packaging in

• And it reduces energy and effort because there is

Australia could be the reason for a fall in smoking

no need to separate toxic paint from aluminium in

rates, according to new figures released by the

the recycling process.

Australian government.

Coke sheds the red?

Two designers, Ryan Yoon and Harc Lee, founded studio called Ryan Harc and designed a colourless Coke can with sustainability advantages that they called Naked. The original design won the Biennale Internationale Design award at the end of 2010. Coke showed no interest.

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MISS TUTI SEES Opportunity

To Spread The Flexo Word PT. Tosi Jasundo’s Managing Director, Miss Tuti Buntaran, has operators as a real opportunity to raise the education bar in Indonesia. This live-wire female executive, has established her very own training campus at Delta Silikon-Lippo Cikarang just outside Jakarta.

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“Asian Labels Plus” spoke to Miss Tuti about her plans for the new college, and how she became involved in the packaging and label industry.

“Basically, I have ben in it for many, many years,” she said.

“I worked for Heidelberg Indonesia for a number of years, and later other printing companies. In 2000, I set-up my own company and started representing corrugated products from Europe.

“In 2004 I strated in the label industry and now represent Nilpeter and also Xeikon digital printing, throughout Indonesia.

“In addition, she is also the Indonesian agent for Uteco wide-web, Flint plates, and Apex rollers from Holland. “This year, we created this flexo training. I had been thinking about what I wanted to do and had been teaching printing and flexographic subjects in the past at the Polytechnic, the University of Indonesia. It quickly became obvious, that it wasn’t easy for students to keep pace with the fast-chnging flexo industry because much of the equipment at the college available to suit flexo technology.”

To address this, she said she had put in a request to her principals to see if they could supply the training centre with more relevant equipment that reflected the changes that the label and packaging industry was undergoing. “So I have strated this training facility and we already have had a number of students who have attended and work directly in the industry. Around the world, flexible packaging is around 80% flexo, but in Asia, there is just a very small percentage of packaging printed flexo the

majority being rotogravure.”

Miss Tuti said she was quite confident that the training will be well attended, and at the time of the innterview, had bookings two months in advance. “I have gone to my customers who have employed new people and undertaken presentations on what we are seeking to do. I show them that their people need this up-to-date knowledge.”

Looking at how the students will be able to afford her tuition, Tuti says there were two ways she saw the program working. One was to charge the employers and converters who send their employees to the course and the other, was to offer the course free of charge to likely students and then select the best of those as a placement service to the flexo industry. “ In that way I charge the company who employs them, which would be a win-win for all. And I would expect to have at least one or two students out of each course who are good.”

She said the course covered a variety of subjects starting with design. “I see this as having appeal to a wide area of the market. Firstly, to converters and the other the consumer

goods manufacturers. I will bring specialists in to teach various subjects, be it food packaging or beverage or pharmaceutical. With flexo, whether it is narrow-web or wide-web, students learn valuable knowledge how to do the mounting and the features of the anilox.

“For our intensive courses, we see them going over a week.

For the longer courses, we are planning one week for basic packaging, basic design one week, Photoshop one week, Illustrator one week. For people who already have Photoshop or know Illustrator, we’ll show them how to use this technology in a more professional way to suit packaging customers. When I go to an exhibition or to a customer, people often say they’ve created really good packaging, but have missed a very important point. So, it is not just making good packaging, it’s a case of making excellent packaging easily, with little waste. You may already do this, but how many ways do you know and how long does it take?. So this is my idea and I have had a good response.”

15

Degraf launches plate processors James Quirk reports from Degraf’s first International Open event in Monte Carlo, where several new plate processing systems were launched

Degraf, Italian manufacturer of equipment for the production of flexo plates, hosted 180 customers, partners, and journalists at its first International Open event. The event, held in Monte Carlo, welcomed visitors from 52 countries and was attended by large delegations from the US, Far East, and South America.

The company used the occasion to launch a series of new products and to acknowledge the ongoing support of its distributors and OEMs. Organized in association with AZ, a subsidiary of Degraf, and Mekrom, the company’s main distributor, the two-day event celebrated the company’s 20 years in the flexo industry.

Degraf, which sells its products through major plate manufacturers such as Dupont, Flint Group, Kodak, MacDermid, and Asahi, displayed ten machines at the event, four of which are new this year: the ‘Concept’ processors 305 P, 505 XP, and 505 DW, and a multi-process unit, Concept 305 EDLF. The Concept 305 P is the updated version of Degraf’s 301 P, which was also displayed at the event. The 305 P is a processor for flexo plates of up to 92x120cm (36x48’’), which allows the operator to remove all brushes manually – allowing maintenance and cleaning operations to be simplified. As with all Degraf washing units, the movement rotating cylindrical brushes, which oscillate in different directions, reduce processing time and eliminate plate shifting, according to the company.

Concept 505 XP is claimed to be the first wash-out unit in the world that can process flexo plates of up to 132x203cm (52x80’’) in batch or in-line mode.

16

In batch mode, the plate is loaded into the washing bed at high speed. Comprehensive washing is ensured by 22 oscillating cylindrical brushes, which rotate over the entire surface in opposing directions. When this operation is completed, the plate passes to the exit section and the machine is ready to load the next plate. Working in batch mode is particularly useful in the resurfacing of individual plates and in non-standard or occasional production, as well as in the use of extra-thick plates (exceeding 4 mm), offering significant time savings compared to the inline/incremental mode.

Concept 505 DW, a wash-out unit launched in May 2006, is specifically designed to allow the production of analogue and digital plates using a single piece of equipment. The machine can process plates of up to 132x203cm (52x80’’). The processor is equipped with a prewashing section, which removes the carbon layer from the digital plates, which is then collected in a separate tank. This approach ensures that the washing solvent is always non-contaminated.

(L-r) His Excellency René Novella, secretary of state for Monte Carlo; and Degraf president Riccardo de Caria at the gala dinner at the Hotel de Paris The first Concept 505 DW was installed at NuMaber, a flexo trade shop based near Treviso, Italy. Impressed with the new unit, the company installed a second machine in May 2006.

Concept 305 EDLF is a multi-process unit for exposing, drying and finishing flexo plates. It can process plates of up to 92x120cm (36x48’’), and contains a new automatic system for the opening of the lid, allowing the operator fast and safe access to the equipment from three sides.

Concept 305 EDLF is also equipped with a lamp temperature control which keeps lamps at 45°C to maintain optimum UV output. A controlled cooled bed considerably reduces oxygen emissions, with the consequent decrease of blurring problems.

This multi-process unit also includes a drying section made up of four drawers, each one with its own timer, where the air flows uniformly for a quick evaporation of the solvent, resulting in a general reduction of process time. The finishing section is made up of 20 UV-A and 19 UV-C lamps, which can be activated together or individually to ensure maximum flexibility for a better management of theequipment.

Degraf used the event to underline its continuing strategy of selling its machines through a network of OEMs, partners and resellers around the world.

‘We do not like to sell directly to the customer,’ said Jacques Dutard. ‘We want to create the demand from our five OEMs, instead of just making the machines that they ask for.’ The company’s emphasis is on investing in R&D and developing new solutions – it lacks a commercial structure strong enough to enter the market independently. Géry Dubois, sales manager for Degraf’s main distributor Mekrom, reiterated: ‘Selling directly necessitates a local support network and therefore great resources.

HTD; an all-in-one unit which can manage the entire flexo production cycle for plates up to 66x81cm (26x32’’); Concept 400 ECLF, a multi-process unit for plate exposing and finishing; Concept 501 ETL, a large format exposure unit; and the Concepts 501 D and 501 LF, a large format dryer and light finisher combination.

During the event, Degraf thanked its OEMs and partners in an award ceremony. OEMs Asahi, Dupont, Flint Group, Kodak and MacDermid were all acknowledged, as well as customers NuMaber and JV Imaging, and Asia Pacific equipment service leader Remi Loh. The two-day event culminated in a gala dinner in the luxurious setting of the Hotel de Paris in Monte Carlo, where guests were entertained by the Philharmonic Orchestra of Nice.

Alongside the new machines, Degraf also gave visitors the chance to see Concept 201

17

The Rise of Indonesian Retail Market

INDONESIA - In the first of a two-part series, Stuart Hoggard looks at the alternatives to China presented by South East Asia’s booming economies. Today’s GDP growth, the fastest in South East Asia, is a more modest 6-6.5%.

Even in non-election years, this is fuelled almost entirely by domestic consumer spending. As a country of 251 million people, which is growing at a rate of 1.03% annually, the Indonesian domestic consumer market holds huge possibilities. While the national per capita annual GDP is slightly more than $5,000, this is largely due to the size of the population, and the fact that 38.9% of the population is still employed in family-unit size subsistence agriculture (mainly rice).

Today’s GDP growth, the fastest in South East Asia, is a more modest 6-6.5%. Even in non-election years, this is fuelled almost entirely by domestic consumer spending. As a country of 251 million people, which is growing at a rate of 1.03% annually, the Indonesian domestic consumer market holds huge possibilities.

While the national per capita annual GDP is slightly more than $5,000, this is largely due to the size of the population, and the fact that 38.9% of the population is still employed in family-unit size subsistence agriculture (mainly rice).

Nevertheless, all income groups have benefited from Indonesia’s accelerated growth, although the middle class has enjoyed the most rapid advances in terms of spending increases and quality of life improvement, and increased demand in a range of consumer categories from home electronics and appliances to health and beauty products.Indonesia’s growing middle class - defined by the World Bank’s Index of Developing Countries as those with incomes of above $10,000 annually - will reach 150 million people by the end of 2014.

Booming Retail

A strong economy has built a consuming class, if not overnight, then certainly in the past ten years. In 2009, less than a quarter of the country was middle class; now it is more than half.

In five years, household consumption expenditure in current dollar terms has more than doubled. After years of holding back, Indonesians appear to be increasing discretionary spending on what can be considered premium goods, according to research by global measurement firm Nielsen. According to Nielsen, the fast-moving consumer goods (FMCG) sector is growing twice as fast as the overall economy.

Economic wisdom holds that in developing countries, as people begin to earn more, they spend almost half their income on food, but as Indonesians become wealthier, it doesn’t necessarily mean that they will eat more - it means that they will buy more smartphones and tablets; a cursory straw poll of three packaging company executives at lunch in a German restaurant in Jakarta revealed that they carried two mobile phones each (the obligatory Blackberry and Samsung smart phones). When the gadgets were laid on the table, one lady dug into her handbag and sheepishly pulled out her third phone “It’s the new Sony. Shock and waterproof!” I couldn’t picture this middle-aged lady abandoning her Honda Jazz for a more extreme action sports model. “Well, we’ve had a lot of heavy rain in the last few months!”

Nowhere is this increasing distribution of wealth more evident than in Jakarta’s gridlocked streets. Traffic has always been a nightmare but even as times change, Jakarta’s infamous traffic jams remain; but where 15 years ago the majority of the vehicles honking and inching bumper to bumper through the dusty wide express-ways (sic) were rust buckets spewing black smoky exhaust fumes and radiator steam, today’s generation of vehicles sitting immobile in the baking heat are gleaming Toyotas, Mercedes, BMWs and SUVs, with their middle class

occupants sitting in behind tinted windows in air conditioned comfort.

Greater Jakarta is a significant stand-alone market.

In itself a city of more than 28 million, it is one of the largest urban centres in the world – even larger than Beijing (19,6 million) or Shanghai (23.9 million).

It's also one of the fastest-growing cities on earth, growing faster than Beijing and Bangkok, with a population density inside the city’s official boundary of 15,342 people per square kilometre (39,740/square mile). Indonesia has 11 cities with a population over 1 million.

Gone Shopping The increase in consumer demand has driven a property construction boom, with the priority being new multi story shopping complexes. According to real estate agency Colliers International, total retail space in Jakarta has risen from around one million square metres in 2000 to 4.5 million square meters today.

In the past five years Jakarta has seen the opening of 178 new glittering polished marble and glass air-conditioned shopping complexes. International retail luxury brands such as Louis Vuitton, Cartier and Burberry rub shoulders with Marks & Spencer and H&M – both of which are regarded as up-market foreign brands.

Supermarket chains, such as Carrefour, 7-11 and Korea’s Lotte Mart, vie for business with local retailers Indomart and Alfamart. The rise in consumer demand and availability of outlets has changed the way people shop. Malls, minimarts and hypermarkets are fast replacing wet markets and traditional outlets, and they are as advanced and sophisticated as any in South East Asia, Europe or Japan.

According to Ariana Susanti, Director of the Indonesian Packaging Federation (IPF), “The biggest change we’ve seen in consumer preference is that at all income levels, people no longer eat rice for breakfast” - this in the second largest rice growing country in the world. “Rice needs to be cooked and is time consuming to prepare,” Ariana explained.

“These days, most people eat instant noodles, just

boil water and pour it into a bowl and each packet comes with its own seasoning.”

Over 54% of all packaged groceries are sold in modern outlets, up from 35% in 2000.

While the air conditioned malls offer an entertaining comfortable day out for consumers and window-shoppers alike, gridlock out in the streets turn household provisioning into a major expedition with complex logistics: how to get there, where to park, how long will it take to get there. As a result minimarkets, such as Alfamart, Indomart, Circle K and 7-11 have sprung up in neighbourhoods all over the city offering basic packaged necessities a short walk or moped ride away. Minimarts now account for 17% of all grocery sales in urban areas.

An interesting trend that has emerged in the past five years is the diversification of the minimart into a sidewalk café. A few tables and chairs with umbrellas outside the store, inside they are equipped with a microwave, various hot food warmer displays and freezer/chiller units stacked with food service trays and flexible packaging pouches, and the minimart has been transformed into a neighbourhood café.

Indonesia is shaping up to become the next China, with strong markets in major cities as well as in the secondary urban locations. Indonesia’s demographic trajectory makes it all the more attractive. While China faces major demographic challenges as much of its GDP future wealth will be spent on taking care of elderly citizens, by contrast Indonesia is facing a demographic dividend: as the number of children in the overall population is declining slightly, the percentage of working age people is increasing – the average age of the population is 28 years old - while the number of elderly is rising, but slowly.

Indonesia, and young working Indonesians are becoming relatively wealthy, pouring more into consumption as they climb the social ladder and want all the trappings of a modern lifestyle – that means packaged product….. lots of it!

Based in Singapore, Stuart Hoggard is publisher of www.packwebasia.com the daily news service for the Asian Packaging Industry, and Packaging Business Insight Asia. (link:http://packwebasia.com/packaging-newsletter).

Written by Stuart Hoggard

Vietnam a low cost high production base VIETNAM - In the second of his two-part series on

alternatives to the China market, Stuart Hoggard looks at Vietnam. While Indonesia’s domestic market is booming and packaging demand is on the rise, Vietnam is positioning itself as a regional hub to supply packaging, and product, throughout South East Asia. Almost 60 years after the battle of Dien Bien Phu, and forty years after that last US helicopter took off from the US Embassy roof in Saigon, Vietnam has become the quiet foreign investment destination and, along with Thailand, becoming a lynch-pin in the multi-national Fast Moving Goods Manufacturer’s (FMCG) China Plus One policy.

The China plus One policy first emerged middle of the last decade, at the peak of China’s transition from a dirt-poor collective drab underdog to a thriving vibrant modern economy assertively taking its place on the world stage as foreign investment poured in to the workshop of the world at break-neck speed. At some point, someone, in FMCG board rooms in Europe and the US, said “Hang on a minute! What if….” What if indeed!

All of the Country Risk Assessments where re-evaluated turned up the possibility that their supply chains could be vulnerable to China as a new global super-power – Cross Strait and South China Sea conflict, changing attitude to foreign investment, intellectual property risk, escalating costs of doing business, rocketing property rents and salaries – and individually the FMCGs began evolving their own Plan B: a backup to their China strategies. This became known as China Plus One: Continue to invest in China, but make strategic investments in other low-cost Asian manufacturing capabilities. In an interview with Packaging Business Insight Asia in Tokyo, Masahiro Yoshikawa of DNP’s Packaging operations Overseas Business Development Dept said, “The US$39 million (¥4 billion) plant is operated

by DNP Vietnam Co Ltd – a joint venture between DNP (Japan) and DNP Indonesia (on an 80:20 equity split) and is an expansion of DNP’s booming Southeast Asian packaging business, which has operated from two plants in Indonesia for more than 40 years”.

Mr Yoshikawa explained that as South East Asian

demand from the FMCGs increases, DNP found itself in a changing market.

“Several years ago, internal demand from Indonesia was slower than present growth rates. In recent years, the Indonesian economy has been expanding rapidly, and with that growth demand for quality packaging has increased. But at the same time DNP Indonesia’s major customers, brand owners such as Unilever are producing and exporting across Asia,” said Mr Yoshikawa. “Since the packaging business is based on the needs of the local market, DNP Indonesia has been exporting a packaging to meet customer needs in neighbouring South East Asian countries. We have now reached the stage where we need to expand capacity further. Vietnam was the logical choice to cope with growth in domestic demand and to service customers in other regional markets.”

Target Vietnam

With a population of 92,5 million - the 14th largest population in the world - Vietnam has a lot going for it, if you can put the stereotype of a war-torn country back into the history book where it belongs. VietNam has a very young growing population: The current workforce of about 43.3 million has an average age of between 25-54 years and is growing by more than one million people every year. It is a highly educated work force (94% literacy). The current generation of young employees aged between 18 – 30 is the first generation in the country’s post World War II history that has not experienced, and have no personal memories of, war. Unlike previous generations they are able to confidently embrace consumer lifestyles with almost no fear for the future. Since I first began visiting the country in 1991, to write about VietNam’s open-door business and investment policies, the country’s economic health has been a roller-coaster ride, a series of rapid growth cycles lasting about three to four years, followed by sharp declines, though the overall general trend has been upward.

In 2006, GDP was US$52 billion. In 2012 it hit US$124 billion, a 138% increase in six years.The global recession hurt Vietnam's export-oriented economic sector, with GDP in 2009-12 growing less than the 7% per annum average achieved during the previous decade. In 2012 however, exports rebounded increasing by more than 12% year-on-year. With a GDP per capita of just US$3,500, VietNam is still regarded as a ‘poor’ ASEAN country: behind Indonesia, Thailand, Malaysia and the Philippines, but ahead of Laos, Cambodia and Myanmar.

Consumer concern

Economy was the biggest concern among

consumers in Vietnam, where consumer confidence Armani, Burberry, Tiffany etc) than it has supermarkets. remained “fairly stagnant” in Q4 of 2012 compared HCMC has three Ferarri and Porche dealerships even to the previous quarter, according to Nielsen. The though imported cars are subject to 300% import duty. second and third biggest concerns for Vietnamese Where there is a market for branded luxury goods there consumers were increasing utility bills like electricity is also a market for fine dining, and up-market food & and gas, and job security, according to the Nielsen beverage outlets; HCMC (Ho Chi Minh City, formerly Global Survey of Consumer Confidence and Spend- Saigon) now hosts a wide range of food and beverage ing Intentions. Yet despite these concerns consumer outlets representing many cuisines from around the spending in Vietnam increased to US$77.88 billion world: Japanese, Korean, French, German and even Brazilian. A far cry from my first 1991 (1,630,143 VND billion) in 2011 visit when the only foreign restauup from US$62.95 billion rant was the German Pub on Dong (1,317,588 VND Billion) in 2010 Khoi Street, formally Rue Catinat as employment levels In early 2014, Japanese flexible packaging made famous by Grahame Green increase, more money goes company, DNP (Dai Nippon Printing Co Ltd) in The Quiet American. into the consumer pocket, and opened a 30,000 square metre factory near Home grown coffee company that changes lifestyles and HCMC, in the My Phuoc Industrial Park 3 in Trung Nguyen, has more than consumer aspirations.

Ben Cat District, Binh Duong province, to 10,000 franchised cafés across the Retail sales increased produce pouches for food, sachets for country, with branches in Singa11.7% in the first quarter from shampoo, stand-up pouches for softeners pore and Malaysia, serving Vietthe same period a year earlier, and washing detergent, laminate web for namese coffee from 19th century slowing from a 21.8% pace in toothpaste and cosmetics tubes.

This is part plantations originally started by the same period in 2011 earlier, of the company’s strategy to expand French colonists. It is a major comaccording to the Vietnam production capacity to meet export petitor to Starbucks inside VietNam Statistics Office (27 March and has announced that it is to 2013). The struggling economy demand in Southeast Asia as well as domesopen outlets in the US. and labour market cut into tic Vietnamese demand. purchasing power, the agency Workforce Advantages said in a summary. The Vietnamese consumer goods sector posted the highest The driver of growth is the expanding workforce, it is growth rate in Asia, according to a report released in true that VietNam factory worker costs are lower than January 2014 by Nielsen: It grew by 23%, while the China and considerably less than its neighbours: 2.5 figures of India and China are 18.8% and 13%, times lower than Thailand and 2.36 times lower than respectively.

Malaysia. That makes it an attractive production Milk sales is a great indicator of changing centre for FMCGs such as Unilever, P&G, J&J and food consumer trends because, as a dietary supplement manufacturers like Nissin, Nestle and Ajinomoto. Vietfor young children, it is the first item on the shopping Nam has a minimum wage regulation which varies by list when a family begins to have surplus income: In location. In urban centres currently stands at US$125 2012, Vietnam's largest dairy producer Vinamilk per worker per month. reported a sales growth of 23% year on year, while NutiFood, another local milk producer, saw its sales Based in Singapore, Stuart Hoggard is publisher of grow by 30%. www.packwebasia.com the daily news service for VietNam has transformed its supply chain the Asian Packaging Industry, and Packaging from being a 100% state-driven ‘distribution system’ in Business Insight Asia. the 1980’s where products were distributed to the (link:http://packwebasia.com/packaging-newsletter). public via government owned stores in return for vouchers, to a small-scale capitalist ‘mom-&-pop’ stores in the period 1990-2000. It is now a very mixed retail sector reflecting the growing wealth gap between rich and poor: HCMC has more up-market, expensive branded goods shops (Pierre Cardin,

Packaging Prospects

Written by Stuart Hoggard

A Need for Speed ?

Short Runs Put an Emphasis on Changeover

Time is money. It’s a fact all flexographic printers/converters understand. The faster a job can be set up, run to completion and broken down in preparation for the next job, the more jobs that can be run. Every minute that a press isn’t running is money lost.

In today’s flexible packaging market, printers throw around the words “high speed” in reference to wide web flexo presses. But what is “high speeds”? And more importantly, how critical is “speed,” in the strictest sense of the word? The answer to both questions is, “It depends.”

The large majority of wide web presses in operation today are running at anywhere from 900fpm to 1,200fpm. Those are considered typical working speeds. Some printers will run at 1,500fpm, which is considered pushing the limits. When mostflexo printers are thinking about high speed presses, they are referring to those that can run 1,800fpm and up. That’s because, at these speeds, you are in a different ballpark.

1. Most wide web printers run between 900fpm and 1,200fpm.

2. Speeds above 1,800fpm only make sense on long runs.

3. With shorter runs, changeover times are more critical than actual run speeds.

Once you start looking to 1,800fpm or more, many flexo printers have to consider buying a new press, and need to make adjustments in prepress, etc.

Fast FactsTechnically, there is no limit to the speed that a gearless flexo press can run. The servo motors that drive the mandrelsare not limited by anything, per se.

Heck, you can adjust the top speed of your car’s engine to go 200mph. The problem is there are components beyond the motor that have to be able to run at such speeds. The same thing applies in flexo.

Getting to high speeds requires more than just the press. You are talking about ink transfer, drying, prepress, and other factors. So the printer needs to be well equipped to run at high speeds. Ink is going to be a major player—what properties must the ink have to get it from the anilox to the plate and then the substrate at such speeds. On top of that, how do you dry the ink on that substrate? The anilox rolls have to have the right volume, and be able to release the ink without sending it everywhere. Not to mention, mandrels and carriers have to be suitable to run that fast; TIR tolerances have to be much tighter. Only when all these are in place, can a printer run at 2,400fpm or higher.

The Long and Short of It There are three parameters that have the greatest affect on production: changeover time, waste generated from startup, and speed of the press. One of these alone does not give a competitive edge. Today, many printers are looking for machines that reduce waste and facilitate faster startup. Truth be told, many of them are forsaking speed.

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By Mario Mucciacciaro

The reason is, in today’s flexible packaging industry, the portion of long runs to short runs is increasing in favor of the latter. Customers will not accept stock inventory, and packaging is being constantly redesigned, even for legacy brands. As such, many printers are running at lengths of 10,000 to 20,000 feet.

With a 10,000 foot job, there is too much waste generated by running at a high speed, not to mention roller handling is another concern. You are better off having a faster changeover.

Today, most people with geared presses are changing over eight colors in three hours! With gearless technology and the introduction of sleeve presses, it’s happening in as little as 20 minutes. Most eight color servo presses can be changed over in 20 to 30 minutes.

With automatic impression setting, this time can be reduced even further. Most wide web press manufacturers have some version of this technology.

This also reduces waste—bringing it down to as little as 150 feet per job.

Not to mention, there’s also automatic wash-up systems. Wide web anilox rolls are heavy, even if they are sleeved. To not have to remove each one and clean it by hand after every job saves a tremendous amount of time. Lastly, there’s also a human factor that can be controlled and fine tuned for even faster changeovers, by establishing a pit crew mentality and adopting elements of a Lean or SMED (single minute exchange of dies) workflow.

High speed matters the most when it comes to long run lengths. When you are producing orders of 1 million units, orthe work load duration spans over two working shifts, then speed will have a massive impact on profitability. But when daily changeovers occur six to eight times a day, the speed that matters most is in changeover.

By Mario Mucciacciaro

Diamond HP

Onyx

GRAVURE

PRODUCT

FLEXOGRAPHIC

COATING & LAMINATING ROTO OFF-SET

Coaters & Laminators

E Press

SPECIAL MACHINES

INTEGRATED IN-LINE TECHNOLOGIES

23

Genetic Innovation in Converting

UTECO SmartMatch

®

REFERENCE COLOR

FIRST PRINTED RESULT

SPECTROPHOTOMETER SmartKitch®

DATA TRANSFER

FINAL PRINTED RESULT: MATCH COLOR

INK FORMULATION

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www.uteco.com

Genetic Innovation in Converting

UTECO SmartMatch

®

The Uteco SmartMatch® consists of: • 1 Spectrophotometer • 1 SmartKitch®. It is a mobile dispensing system on wheels which can be moved near the printing press to perform the color matching procedure.

The SmartKitch® consists of: 14 storage containers, 4 of 10 lt and 10 of 5 lt capacity 14 dispensing valves Pneumatic pumps and piping 1 automatic ink dispensing head 1 dispensing pail (bucket) - up to 20 kg 1 laptop with spectro software The software functions are: Link to the spectro for the automatic ink formulation and correction Link to Uteco press to know the ink status Interface with the eventual main dispensing system Synoptic which shows the current state of the storage levels Optimization of the return management Storage of every data required for ISO 9000 traceability More than 100 reports available

How the system works:

By reading the image of reference and the printed image with the spectrophotometer and transferring the data to the SmartKitch® which takes care of the preparation of the proper color correction. The proper quantity (weight) of color correction is given in the dispensing bucket and utilized by the printer to adjust that specific color directly on press.

Advantages of the SmartMatch®:

The standard process of color matching requires several corrections to get to the right colour.

With the SmartMatch® and through the use of the SmartKitch®, only two steps are needed to get to the right color.

The advantages of the system are: • Reduction of press down time to color matching

UTECO CONVERTING SpA Viale del Lavoro, 25 • I-37030 Colognola ai Colli (VR) Ph.: +39 045 617 4555 • Fax: +39 045 615 0855 utecovr@ uteco.com • www.uteco.com

25

©

E•0511•SmartMatch

• It gives more flexibility on color demand • It allows fine tuning of colors nearby the printing press • It gives the exact quantity of needed ink • It gives report of ink consumption • It allows to keep ink cost under control • It is linked to the Main Ink Dosing System • It gives traceability (ISO certified) • It gives automatic update of ink formulation

Automation on wide web presses

Automating the various processes on flexo printing presses is nowhere more in evidence than on wide web machines, be they central impression or sheetfed. Witth tun length getting shorter, demand for highest quality increasing and the need for reducing was to minimum as essential, wide web flexo presses must perform to tight tolerances and offer exceptional repeatable results every time.

Nowadays, one of the beggest improvements we can find in the machine technologies are those related with the process of the start up of the job, on how to adjust the correct pressure, register and colour. Those processes, if they are not under serius control, can have a significant impact on the result both in term of the quality of the job and the cost.

Just a kiss Initially developed in conjuction with Grafikontrol for its Onyx CI press, Uteco’s whole range of presses now features the succesful Touch&Go, Kiss&Go and Click&Drag systems for automatic impression setting and register with minimum start up waste created (average waste is 12 meters per prinitng unit).

The system consists of a compact scanning unit, which is installed immediately ater the last printing station on the cenral drum, and a screen interface for operator control.

The optical scanner is a contrast scannerm which registers the quality of ink laid down on the substrate independently of the printed image.

Web tension in controlled via the Synchro Web software, which used PID control keeps to obtain the tighest print register accuraby. The parameters are fed into the ShopWare press control system, which provides a full overciew o the pressing settins and prior specification in real time. A modem is integrated into all Uteco presses so allow for remore troubleshooting by the service department.

The patented system perorms an optical scan of the printed area to calculate the correct printing impression settings and transfers any corrections to the printing deck positioning system.

In the Kitchen Uteco has the SmartMatch solution or colour matching and ink formulation. The software link a spectophotometer to the SmartKitch, a mobile dispensing unit, which is linked to the press. It works by reading the image reference and transferring the data to the mobile unit, which then prepares the correct colour formulation and exact amount of ink needed. Reports of usafe and formulations are kep in the system for complete traceability and cost control. For optimal wash up of the printing unit, SprintWash is an automatic, modular washing system that features three different wash cycles (light, medium and heavy). The operator can specifiy the need o each unit individually.

26

African-Mineral-Water

Health concerns and rising prosperity drive the packaged water market in Africa Health concerns towards the lack of safe drinking water across many African countries, combined with rising consumer incomes, has driven the packaged water market in the region to grow faster than that of Europe and the US. The African packaged water market has seen strong growth in recent years, largely outperforming developed Western nations, according to Canadean’s latest soft drinks research. Rising incomes across the region has meant that more people can afford packaged water as a solution for clean and safe drinking water.

In the last five years, growth levels have remained consistently high across the continent, with double-digit increases posted in a number of countries. A compound average growth rate (CAGR) of 10% in Africa has largely been driven by the Nigerian market. Nigeria makes up two-thirds of the region’s packaged water contribution. Although growth in Nigeria has slowed in recent years, per capita consumption continues to increase and is still well

above the regional average.

In the coming years the African packaged water market is expected to continue its growth, with public water supplies still remaining rather limited or unreliable. The rate of growth is, nonetheless, forecast to slow between 2013 and 2018 to a CAGR of5% .This reflects concerns over the quality of infrastructure across the continent, as well as uncertainty about the introduction of more expensive PET bottles in the key Nigerian market.

Balancing consumer demand with the right price point will therefore be critical for African packaged water companies in the near future.

27

Rotogravure Still Going Strong

gravure, though though mostmost coffe coffe laminate laminate packaging packaging Although Although customers customers are always are always on the on lookout the lookout for forgravure, printprint usingusing gravure gravure for hot-filled for hot-filled beverages, beverages, the the printer printer whowho will cut will cut them them a break a break herehere or oralso also chocolate-coated sweets, sweets, soups, soups, detergents, detergents, there, there, gravure gravure printers printers are are riding riding the the wave wave of ofchocolate-coated engine oil, oil, antifreeze, antifreeze, and and laundry laundry liquids. liquids. flexible flexible packaging, packaging, exactly exactly the type the type of packaging of packagingengine Whenever a combination a combination of superb of superb appearance appearance that that demands demands the the quality quality that that the the gravure gravureWhenever and and highhigh functional functional qualities qualities is required, is required, suchsuch as as process process routinely routinely delivers. delivers. retort retort pouches, pouches, gravure gravure technology technology is a is a preference.

This This is not is not to say to say that that flexoflexo printing printing hasn’t hasn’t made madepreference. continued continued inroads. inroads.

However, However, gravure gravure printers printers are are Challenges Challenges remain remain learning learning that that there there is a place is a place for for Gravure Gravureis isenjoying enjoying bothboth processes, processes, sometimes sometimes widespread widespreadusage usagein in eveneven adding adding flexoflexo capabilities capabilities flexible flexible packaging packaging and and to their to their businesses. businesses.

Gravure, Gravure, labeling labeling applications, applications, but but however, however, remains remains at at the the gravure gravure printers printers mustmust keepkeep forefront forefront of long of long runs runs that that an eye an eye on flexo, on flexo, which which require require repeatable repeatable quality quality all all continues continues to nip to nip at the at the the way the way through through the print the print run. run. heelsheels of gravure of gravure in terms in terms of price of price and and quality. quality.

What What Fast Fast changeover changeover ability, ability, cost,cost, gravure gravureprinters printersare are feasibility feasibility for short for short runs—none runs—none of of saying, saying, however, however, is that is that these these has ever has ever favored favored gravure. gravure.

However, However, gravure gravure is still is still the the gravure gravure and and flexoflexo havehave theirtheir places places in flexible in flexible mostmost highly highly regarded regarded printing printing process process for packaging for packaging due due to itsto high its high printprint quality qualitypackaging packaging and and labeling. labeling. and and its ability its ability to convey to convey graphic graphic detail detail for shelf for shelf appeal. appeal. Flexible Flexible packaging packaging and and retort retortThe bottom The bottom line line packaging packaging are are two two market market sectors sectors that that benefit benefitGravure’s Gravure’s strength strength is its isquality. its quality.

Gravure Gravure printers printers fromfrom gravure’s gravure’s quality—two quality—two types types of packaging of packagingare are employing employing the the flexographic flexographic process process for for brand brand owners owners demand. demand. certain certain customers customers and and havehave determined determined that that gravure gravure and and flexoflexo each each havehave a place a place in their in their Retortable Retortable packaging packaging is one is one of largest of largest markets markets for forbusinesses. businesses.

We have We have seenseen marked marked improvement improvement

Excellent image reproduction, Brilliant colours, Consistency over the whole print run

Market share of the print processes in flexible packaging worldwide

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in flexographic in flexographic printing printing quality quality especially especially on the on the GRAVURE GRAVURE CYLINDER IMAGING CYLINDER IMAGING plate plate and and anilox anilox roll new roll new technology. technology.BothBoth The The matter to printed be printed is reproduced on the matter to be is reproduced on the gravure gravure and and flexoflexo havehave niches niches in the in packaging the packaging cylinder cylinder as "gravure cells": recesses which as "gravure cells": smallsmall recesses which market. market.

Volumes, Volumes, materials materials usedused and and quality quality will will carrycarry the the ink ink are are engraved engraved expectations expectations are key are for keywhat for what process process will work will work for for (electromechanically (electromechanically or by laser) or etched or by laser) or etched the end the end user.” user.” (chemically or electrolysis) by electrolysis) its surface. (chemically or by into into its surface.

Depending production method, Depending on on the the production method, the the Gravure Gravure – the– process the process gravure the same gravure cellscells can can havehave the same areaarea and and varyvary in in Once Once an art anform art form and and a craft a craft skill, gravure skill, gravure today today is is depth, depth, or the same depth in area, or the same depth and and varyvary in area, or or a computer a computer controlled controlled manufacturing manufacturing process, process, bothboth the area the depth For typical the area and and the depth can can vary.vary.

For typical offering offering outstanding outstanding printprint quality, quality, output output publication publication gravure, engraving process gravure, the the engraving process is is consistency, consistency, highest highest versatility versatility and and speed. speed.

Just Just as as used. used.

Mechanical engraving normally takes Mechanical engraving normally takes with with offset offset lithography, lithography, the the gravure gravure process process is is place place in a copper surface.

Mechanical engraving in a copper surface.

Mechanical engraving realised realised in both in both sheet-fed sheet-fed and and web-fed web-fed presses. presses. usesuses diamond oscillating up 12 to 000 12 000 tiny tiny diamond styli styli oscillating up to The majority The majority of gravure of gravure presses presses are web-fed. are web-fed. times second. mechanical engraving times per per second.

OneOne mechanical engraving machine up16 to 16 machine can can havehave up to Packaging Packaging presses presses havehave engraving heads which engraving heads which workwork typically typically five five or or six six simultaneously, each simultaneously, each printing printing units,units, but but covering width of one covering the the width of one sometimes sometimes up to up11. to This 11. This page cylinder, page on on the the cylinder, to to allows allows the the printing printing of of reduce the engraving reduce the engraving time.time. special special colours colours usedused for for brand brand identification identification (e.g.(e.g. engraving reaches LaserLaser engraving reaches an an a a particular particular red red or or engraving frequency of 140 engraving frequency of 140 purple) purple)or orin inthe the 000 cells per second 000 cells per second with with two two package package design design (e.g.(e.g. engraving heads, engraving heads, and and usesuses lightlight green green for for frozen frozen instead of copper. zinc zinc instead of copper.

BothBoth peas) peas) with with theirtheir ownown inks. inks. systems engrave in the systems engrave cellscells in the cylindersurface, surface,which which cylinder Sheet-fed Sheet-fed gravure gravure depending on strength the strength depending on the of of presses presses are are a special a special electronic signal signal the the electronic class, class, and and can can be used be used representing the image data, representing the image data, for for many many applications, applications, correspondingly of larger are are correspondingly of larger particularly particularly in packaging in packaging and and security security printing. printing. or smaller or smaller volume. volume.

Available Available with with fromfrom one one to eight to eight printing printing units,units, typical typical presses presses havehave three three or six. orKey six. Key features features are are In modern In modern etching processes, cylinder is first etching processes, the the cylinder is first the ability the ability to print to print on very on very thickthick substrates substrates (up (up to to covered covered a lacquer or photo-resist, which with with a lacquer or photo-resist, which is is 0,8 mm 0,8 mm thickness, thickness, 600 600 g/m²), g/m²), plus plus the the quick quick job job thenthen imaged by laser. is removed imaged by laser.

The The resistresist layerlayer is removed changeover changeover and and low waste low waste on startup on startup that that make make where where the the cellscells are are to to appear. appear. sheet-fed sheet-fed gravure gravure particularly particularly suitable suitable for short for short Computer-controlled Computer-controlled spray-etching or electrolytic spray-etching or electrolytic and and medium medium run lengths run lengths of premium of premium products. products. copper removal generates the cells. copper removal thenthen generates the cells.

Basic Basic of Rotogravure of Rotogravure The The image image carrier carrier in the in the gravure gravure process process is is generally generally a steel a steel cylinder cylinder with with a copper-plated a copper-plated surface surface in which in which smallsmall recesses, recesses, called called 'cells', 'cells', are are made made which which carrycarry the ink. the The ink. surface The surface is normally is normally thenthen plated plated with with hardhard chromium chromium to improve to improve its its wearing wearing properties. properties.

In the In the press, press, there there is a isprinting a printing unit unit for each for each cylinder. cylinder.

The The surface surface of the of rotating the rotating cylinder cylinder dips dips into into an ink anpan ink pan which which fills the fills cells the cells with with ink (the ink (the inks inks for gravure for gravure printing printing are very are very fluid,fluid, whereas whereas offset offset litholitho ink isink paste-like). is paste-like).

Surplus Surplus ink isink then is then wiped wiped off off the the cylinder cylinder surface surface by the by the squeegee squeegee action action of of the doctor the doctor blade, blade, leaving leaving ink only ink only in the in cells. the cells.

The The impression impression rollerroller thenthen presses presses the paper the paper webweb ontoonto the cylinder, the cylinder, and and the ink thetransfers ink transfers ontoonto the paper. the paper.

Gravure Gravure applies applies the the ink in inkcontrolled in controlled doses doses fromfrom different different sizessizes of cell. of cell.

The larger The larger the volume the volume of the of the printing printing cells,cells, the more the more ink isink transferred is transferred and and the the stronger stronger the tone the tone which which is reproduced is reproduced by them. by them.

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The Game-Changing Flexible Packaging Format

Standup Pouches

Over the last few years the standup pouch has emerged as one of the most versatile and rapidly growing flexible packaging formats that is being adopted worldwide for an increasingly wide variety of end-use applications.

PCI Films Consulting Ltd estimates current global market demand at around 80 billion units, over 50 percent of which is now in Europe and North America where unit volumes are growing by around 5 percent and 8 percent per annum respectively.

Recent studies on the European and US stand-up pouch markets published by PCI Films Consulting Ltd show demand being driven by a range of factors: • Machinery improvements in terms of speed and the ability to incorporate 30

resealable features such as zippers and sliders.

• For retort applications, pouches offer reduced heating times and better taste compared with cans.

• Improvements in barrier film substrates such as coatings with increased heat tolerance and strength; developments in EVOH which is a lower cost barrier film alternative to PVdC coated films; and the availability of directional tear films.

• Environmental benefits and reduced logistical and storage costs compared with rigid formats.

• Consumer convenience – light weight, ease of opening and usage – e.g. special spouts on pouches for baby food, measured dosing and reclose / resealability.

• New eating occasions such as eating and drinking on-the-go.

• Attractiveness to retailers – more visible

display area with increased printing surface for effective graphics, economies of stacking space by usage in vertical display cabinets.

More generally, standup pouches offer packers an opportunity to stimulate packaged food sales, develop creative ways to compete better at the consumer and retailer, and the ability to offer profitable and innovative value-added line extensions to brand owners that complement their core businesses. Clearly the stand-up pouch is set to become a serious rival alternative to rigid fo mats especially as packers replace existing ageing filling equipment.

PCI’s comprehensive report, ‘The US Market for Standup Pouches to 2018’, which follows publication of a similar study on the European market, analyses the major factors driving growth in this dynamic market. Based on extensive fieldwork, the report provides details of the current US stand-up pouch market by unit volume; area of substrates used (M²) and value; existing and planned new filling capacities; trends in more than 30 end-use sub-sectors; usage split between pre-made and formfill-seal formats; and profiles of the leading pouch suppliers. With forecasts to 2018, this market-leading report provides valuable strategic insights into how the US stand-up pouch market is expected to develop over the next five years.

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Stonyfield has launced stand-up singl-server pouches for its you baby. YoTot and Yokids yogurt brands. The packages were designed in partnership with Clear Lam Packaging which engineered special packaging films for the project.

Trendy packs James sanfilippo, president and CEO of clear Lam Packging told FoodProductionDaily stonyfiled has led the pack in offering on-trend dairy products for consumers.

“Grab-and-go snacking is fueling demand for portable packaging while consumers gravite to organic, nutrition-rich products.” he said “clear Lam is proud to support this nwe product launch with lingtweght, durable packaging that meets real cunsumer needs while delivering sustainability benefits’ Flexible, stand-up pouchesare gaining ground as a packaging format in yogurt and other retail food categories. According to market intelligence firm Freedonia, the number of consumer retail products housed in stand-up pouches will grow at 6.5% each year, representing more than 27% of the overal market by 2023.

According to Sanfilippo, the stand-up pouch format improves upon bottles and jars by cutting down material usage and overal packaging weight.

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Additionally, the resealable cap promotes portabilty and reduces food waste.

Custom work Clear Lam produced specialized pouch packaging firm for the Stonyfield pouches.the material are used to contruct apouch with a fitment on a horizontal form-fill-seal machine.

The film was designed to support a 60-day refrigerated shelf life, run on high-speed processing equipment, and withstand the rigors of moving through the distribution and retail end of the supply chain.

According to Sanfilippo, the stiffness of the pouches enables the packages to stand tall and stright at retail for optimal shelf presence.

The lightweight pouches reportedly offersustainability.

Clear Lam Packaging’s environmental efforts include developing lightweighting technoloies, using recycled content, and developing renewable materials (such as bio-based plastics), as part of its Project EarthClear initiative.

By Jenni Spinner

First Packaging Asia Food and Beverage industry

Contact US :

First Packaging Asia

Jl.Gaharu 1 Blok F02 No.010T, Delta Silicon 2, Lippo Cikarang 021-71209599

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Fruits and Vegetables face competition from Processed Foods Consumption of fruits and vegetables in the United States has decreased over the past decade due to lower incomes and perceived price increases along with competition from processed and convenience foods, according to a study from Rabobank.

“The challenge for the fruits and vegetables industry is to close the gap between what consumers say they want and what they actually do,” said Cindy van Rijswick, Rabobank analyst. “Surveys have shown that, in principle, consumers are positive-minded about healthy eating, but in practice they are easily swayed by creative marketing of processed food and beverages and exhibit a strong bias for convenience products.”

The report found a link between income and fruit and vegetable consumption, so in hard economic times consumers respond sensitively to changes in price. There is also a misperception that unhealthy food is cheaper than healthy food. In fact, average prices for fruits and vegetables actually fell less in price between 2006 and 2011 than prices in the total food category, but consumption levels declined.

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Processed foods have become such a competitor to fruits and vegetables due to availability, taste, marketing, product range and c o n v e n i e n c e .

Consumers looking for healthier choices often choose processed foods in the health and wellness category instead of a fresh product.

Rabobank said the industry needs to do several things in order to increase consumption. First, inconvenience needs to be reduced. Washed, cut, diced, sliced and packaged products are becoming more popular, so the industry needs to find ways to increase convenience, such as possibly offering chopped vegetables that may be heated in the microwave without removing packaging. Second, the industry needs to market fruits and vegetables on more than just its health benefits. Consumers are already aware of the benefits but are looking for convenience, taste and versatile products. Also, there needs to be better cooperation in the supply chain to keep low-quality products off the market, Rabobank said.

Asia Love Vegetable Juice Vegetable juice is getting increasingly popular across the Asian countries. Together the Asian region, driven by Japan and China, accounts for 55% of the total vegetable juice market. This comes as Asian consu mers are getting more health conscious, Canadean reports.

The Asian region, driven by Japan and China, accounts for 55% of the total vegetable juice market. This is followed by North America with 18% and East Europe with 17%. Vegetable flavoured drinks acc ounts for the majority of the juice category in Japan, with vegetable variants and pure tomato juice being the most popular flavours.

According to Javier Gutierrez, Beverage Analyst at Canadean, Japanese consumers are becoming more conscious about a healthier lifestyle and vegetable beverages (particularly tomato) are likely to continue growing in the future.

“With health and wellness trends taking an important role in consumer purchasing habits, vegetable flavoured beverages will see its share increase over the coming years.”

Tomato juice in particular recorded phenomenal growth in Japan in 2012. A study from the Kyoto University together with Del Monte (Kikkoman) showed that tomatoes accelerate the burning of fat and help prevent metabolic syndromes. The study, which was widely covered in the Japanese media, caused a massive jump in sales with supermarket chains across Japan reporting a sharp 50% increase in product sales.

properties. In the United States vegetable flavours increased significantly in 2012 due to small brands, such as Evolution Fresh (Starbucks), and established brands, such as Bolthouse Farms, increasing their reach across the country.

Vegetable variants products outperformed those which were tomato juice based, and it is likely this trend will continue in the near future.

“Although this a niche segment compared to other flavours, there is no doubt that vegetable-based beverages will continue to experience strong growth in the regions where they are predominant and gaining interest from health conscious consumers” says Gutierrez. The health and wellness trend will play a major role in the segment’s success, together with increased availability, new flavour offerings and its fashionable image. Globally the rise of vegetable beverages will be slower, affected by decreasing volumes in Europe where premium prices and low availability are limiting the segment’s development.

In the United States vegetable flavours increased significantly in 2012 due to small brands, such as Evolution Fresh (Starbucks), and established brands, such as Bolthouse Farms, increasing their reach across the country.

Besides the Asian region, Canadean predicts that North America and Latin America will play a major role in the growth of this segment, driven by new products entering the market which claim they include nutritional and healthy

35

Juicing, snack trends inspire

Innovation at Campbell

Forthcoming launches from the Campbell Soup Co. were developed with consumer trends in mind.

More than 200 new products set to launch from the Campbell Soup Co. key into consumer demand for protein-rich snacks, organic ingredients and dinnertime convenience.

As part of its strategy to become a $10 billion company in the next five years, Campbell plans to strengthen its core businesses, with a focus on soup and shelf-stable beverages, and expand into faster-growing spaces with innovation targeting the $18.6 billion packaged fresh foods category.

Expanding in organic Plans to expand in the high-growth premium soup segment include the company’s first range of Campbell’s branded organic soups in six varieties, featuring chicken noodle, tomato and basil, chicken tortilla, and garden vegetable.

Packaged in contemporary cartons, the ready-to-serve soups build on the company’s current organic offerings of Swanson broth, Wolfgang Puck soups and Plum Organics baby food. Plum Organics also will expand with 22 new products, including simple meals and snacks for infants, toddlers and children.

Vegetables on the verge New V8 juices combine on-trend flavors.

Campbell aims to refresh its V8 brand with a line of juicing-inspired vegetable juices in such on-trend flavors and combinations as carrot mango and healthy greens. The classic V8 100% vegetable juice line will expand with a trio of new varieties: spicy mango, sea salt and clam, and mint and lime.

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Portable protein Also set to debut from V8 are protein shakes and bars that extend the brand into the $4.6 billion category of adult on-the-go nutrition. The products include such ingredients as carrot and sweet potato and use honey as a sweetener.

S nac k I n n ovation

Bo o s t s Pe p s i C o PepsiCo, Inc. hopes its new cappuccino-flavored Lay’s potato chips will create enough buzz to drive growth in the second half of the year. The unusual flavor is part of recent promotional efforts to increase on-line interaction with consumers and generate trial of new products. Such innovation and consumer engagement programs helped lift sales. which also include Cheddar Bacon Mac and Cheese, Mango Salsa, and Wasabi Ginger. The creator of the winning flavor receives $1 million.

Last year’s winner was Cheesy Garlic Bread, which collected more votes than Chicken and Waffles and Sriracha.

Another new product driving on-line engagement

In April, the company rolled out its Doritos Jacked Mystery Flavors campaign, which pitted three varieties of the seasoned tortilla chips in an on-line voting campaign. The flavors were revealed in July as Chocolate Chipotle Bacon, Caribbean Citrus Jerk and Spicy Street Taco, which received the most votes and will be launched as a permanent product in the fall.

The coffeehouse-inspired Lay’s variety is part of the Lay’s “Do Us a Flavor” contest in the United States.

In its second year, consumers submitted more than 14 million flavor suggestions, nearly four times the submissions received for last year's campaign, The the consumers may vote on-line at DoUsAFlavor.com for one of four submitted flavors,

is Doritos Loaded, which are Doritos-encrusted bites filled with melted nacho cheese that are sold exclusively in 7-Eleven stores nationwide. The snack was introduced concurrently with Solar Flare, a tropical punch variety of Mountain Dew, which has a high purchase coincidence with Doritos.

“Each of these programs is a strong demonstration of how we are leveraging our culinary center to create unique great tasting new products and driving excitement … through creative consumer engagement.”

Innovation helped PepsiCo’s Quaker Foods North America division gain value share at retail in its key categories of hot cereal, ready-to-eat cereal and snack bars. Recent launches include Quaker Express Cups, which is instant oatmeal packaged in on-the-go cups, and Quaker Warm and Crunchy Granola, the brand’s first-of-its-kind hot cereal. The company also continues to build on the success of its Real Medleys platform with the addition of ready-to-eat cereal.

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Beer Labels React To Changing Market global market, reflecting much The The global beerbeer market, reflecting much of of AWA AWA estimates in 2012, labels used estimates thatthat in 2012, labels used as aas a consumer goods landscape, a con- formform the the consumer goods landscape, is inisainconof product decoration for bottled of product decoration for bottled beerbeer stant state of flux.

Mergers acquisitions totaled stant state of flux.

Mergers andand acquisitions totaled 3,292 million square meters. leads 3,292 million square meters.

AsiaAsia leads have steady stream of change, have fed fed intointo the the steady stream of change, as as regional regional demand for labels 47 percent demand for labels withwith 47 percent of of legislation trends in beer pack- the the has has legislation andand newnew trends in beer packshare.

Europe is responsible forpercent 19 percent share.

Europe is responsible for 19 aging labeling,some some a result of the of regional aging andand labeling, as aasresult of the of regional label demand, followed

by South label demand, followed

by South in micro-breweries. newly released America rise rise in micro-breweries.

The The newly released America 15 percent, Africa & the Middle withwith 15 percent, Africa & the Middle study, Global Label Market Study 2013, EastEast study, Global BeerBeer Label Market Study 2013, 11 percent North America withwith 11 percent andand North America withwith 8 8 AWA Alexander Watson Associates, percent. fromfrom AWA Alexander Watson Associates, percent.

By format, applied labels By format, wetwet glueglue applied labels provides a worldwide overview of beer pack- remain provides a worldwide overview of beer packremain strong leader in market share the the strong leader in market share in in aging by region market forces affect- North aging by region andand the the market forces affectNorth America. labels have America.

WetWet glueglue labels have 62 62 ing the growth in labels. ing the growth in labels. percent of the demand, followed percent of the totaltotal demand, followed by by pressure sensitive labels atpercent, 32 percent, sleeve pressure sensitive labels at 32 sleeve AWA estimates global production labels AWA estimates thatthat global beerbeer production labels 4 percent wraparound withwith 4 percent andand wraparound glueglue will grow in value terms at annualized an annualized will grow in value terms at an raterate applied applied labels 2 percent of the share. labels withwith 2 percent of the share.

In In of percent.

2.4 percent. global production of beer Europe, of 2.4 The The global production of beer Europe, label demand for wet labels the the label demand for wet glueglue labels in 2012 is estimated at 1,951 million hectoliters, is very in 2012 is estimated at 1,951 million hectoliters, is very similar to that of North America similar to that of North America (64 (64 an increase of percent 1.2 percent on 2011 volumes. percent) an increase of 1.2 on 2011 volumes. percent) wraparound applied but but the the wraparound glueglue applied is the leading regional producer of beer labels AsiaAsia is the leading regional producer of beer labels have a much more significant share have a much more significant share of of by rapid growth in production levels led led by rapid growth in production levels in in the the demand 25 percent, while pressure demand withwith 25 percent, while pressure China. is responsible for percent 36 percent China.

AsiaAsia is responsible for 36 of of sensitive, sensitive, at 10 percent, considerably at 10 percent, are are considerably production, followed

by Europe beerbeer production, followed

by Europe withwith 28 28 lower lower North America’s 32 percent. thanthan North America’s 32 percent.

In In percent, North America percent, Asia,Asia, percent, North America withwith 17 17 percent, an astounding 94 percent of labels an astounding 94 percent of labels are are South America 12 percent Africa South America withwith 12 percent andand Africa & & wetwet glue, just 4 percent pressure sensitive, glue, withwith just 4 percent pressure sensitive, Middle 7 percent.

China produces Middle EastEast at 7at percent.

China produces the the andand sleeve wraparound sleeve andand wraparound withwith onlyonly 1 1 beer, more twice as much as the percent mostmost beer, more thanthan twice as much as the percent each. each.

United States in the second spot.

United States in the second spot.

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Growing Label Demand Growing Label Demand AWA estimates global label AWA estimates thatthat by by 20172017 global label volumes have increased to around 3,850 volumes will will have increased to around 3,850 million square meters. growth of individual million square meters.

The The growth of individual regions still dictated be dictated by beer volume regions will will still be by beer volume increases competition alternative increases andand competition fromfrom alternative packaging styles. packaging styles.

Growth in label demand between Growth in label demand between 20122012 andand willstrongest by strongest in Asia South Ameri20172017 will by in Asia andand South Amerismall downward in rest the rest of the ca, ca, withwith small downward shiftsshifts in the of the world.

Label demand in Asia is predicted world.

Label demand in Asia is predicted to to grow 4 percent, a 3.5 percent growth grow 4 percent, withwith a 3.5 percent growth expected in South America.

Meanwhile North expected in South America.

Meanwhile North America a small of 0.25 percent, America will will see see a small dip dip of 0.25 percent, Europe experience a 0.5 percent andand Europe will will experience a 0.5 percent decrease. decrease.

BEER IN INDONESIA Multi Bintang Indonesia Tbk PT continued to lead beer with a commanding total volume share of over 61% in 2012. A well-known promotional activity used by the company is to give away free t-shirts with the star logo, and these t-shirts are now commonly worn by the local young generation. The company also produces Bintang Zero non-alcoholic beer and two international beer brands under licence, namely Heineken and Guinness.

Bintang makes an alcohol free beer, packaged in a blue bottle and called Bintang Zero and a shandy-type product called Green Sands—a beer mixed with lime that has less than 1% alcohol. Construction of the brewery began in Surabaya in 1929 during Dutch colonial rule of Indonesia.[3] In 1949, following Indonesian independence, the brewery was renamed 'Heineken's Indonesian Brewery Company'. In 1957 the Indonesian Government appropriated the brewery, and retained control for the next ten years. In 1967 Heineken resumed operations of the brewery, which was later renamed "Multi Bintang Indonesia".

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Private Label di Indonesia Saat ini di Carrefour private label mereka sudah mencapai 7.5% dengan pertumbuhan 5 – 10% per tahun diharapkan segera mencapai 10% dari seluruh total SKU mereka atau 4.000 SKU (10% dari 40.000 SKU), Alfamart juga sudah mulai meluncurkan private label mereka.

60% dari private label di Carrefour bukan golongan makanan minuman, seperti baju, kontainer plastik dan hal lain diluar makanan. Sisanya produk makanan, seperti beras, kecap, minyak goreng, gula, abon.

Sementara Indomarco (Indomaret) setiap tahun meluncurkan 100-200 SKU private label.

Pembeli menyukai private label karena harganya lebih ekonomis hingga 30% dibandingkan dengan harga produk yang bermerek terkenal.

Private label juga merupakan jembatan / kesempatan bagi SME untuk menjual produk mereka langsung ke supermarket, karena SME tidak mempunyai dana untuk marketing/iklan maupun distribusi. Sebagai contoh Carrefore memberikan pengarahan kepada SME bagaimana membuat produk yang baik dan sesuai standar yang seharusnya

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UK ConsumerPrefer

Private Label

Shoppers Choose Private Label According to a new survey from Canadean Custom Solutions, 81% of UK adults are happy to buy private label brands. Approximately three in ten people (30%) say that at least half of the items they buy are store own brands. Biscuits (53%) is the product people are most li kely to buy private label.

The survey found that 55% of UK adults believe that the quality of private label food and drinks is just as good as branded alternatives. More worrying for branded manufacturers is that 46% of respondents believed that branded and non-branded food and drink is produced in the same factory and it is only the packaging that is different.

Discount Stores Successfully Targeting The message being pushed by ALDI and LIDL that discount stores are a good place to pick up a bargain on premium brands is resonating with UK shoppers. This attitude, shared by both higher and lower income groups, highlights how discounters' strategy to appeal to middle class Britain is succeeding.

A new survey by Canadean Custom Solutions finds that 51% of adults aged 18 years and over have been visiting a discount store such as ALDI or LIDL in the last three months.

According to the survey, 54% of consumers believe that the quality of food sold in discount stores is of at least the same quality as that stocked in supermarkets, while 45% believe that the continental offerings served in discount stores offer an added level of appeal and excitement to those offered by the major retailers.

Additionally, 64% of consumers believe that stores such as ALDI and LIDL allow shoppers to pick up bargains on premium brands.

and shake off the association with shoppers who are less affluent.

Michael Hughes, Research Manager at Canadean Custom Solutions explains “these findings show that the attempts by discounters such as ALDI and LIDL to target middle class consumers through advertising campaigns and products stocked in store are paying dividends. The association with discounters and low quality offerings has long been eroded and middle-to-high class consumers are happy to do their grocery shopping there–irrespective of levels of financial well-being. If discounters continue to expand their grocery ranges, this could prove a significant threat to established retailers in the long-term.�

Perhaps most importantly for the discount chains, is that the view that premium quality brands are available in discount stores is shared by both middle-to-higher income consumers (classified as ABC1) (64%) and consumers with lower income (classified as C2DE) (65%). This attitude among ABC1 class consumers is particularly important as such chains look to target consumers from middle-to-higher income backgrounds

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Pr i v ate La beL 60% Value Share

50% Volume Share

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P ri va t e la b e l pr odu cts a r e th ose m anuf act ured by one com pany f o r offe r u n d e r a n o t h e r compa n y 's b r a n d. Pri vat e l abel are avai l abl e i n a w i d e r ange of i n d u st r ie s f rom food to cosmeti cs, etc. They are of ten posi ti oned as l ow e r c o s t a lt e r n a t i v es to r eg ion a l, nati onal or i nternati onal brands, alt hough r e ce n t ly so m e p r iv ate la b el brand s have been posi t i oned as "pre m i um " bra nd s t o c o m pete with ex istin g "nam e" brand s.

There are various advantages for the retailers to go for private label brands.

1. Control over pricing of the product/service, 2. Put forth own ideas on marketing plans, 3. Create personalized image which in turn leads to higher customer loyalty, 4. Higher control on production, marketing, distri bution and profits, 5. Give their own inputs, additional materials, logos, tag lines, etc.

6. Customer's changing preference - drive towards private label products.

These points provide an edge over the other brands.

These brands help create a personalized and unique brand for retailers. Retailers with pretty good private label brands will be able to create better sales opportunities for themselves. They can build value and recognition from the customers.

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recent survey by ConAgra found that 53 percent of consumers shop at a particular retailer because of its private brand products. A Private Label Association found that private brand sales increased by more than 2.9 percent in 2012, raising annual revenues to more than $108 billion.

It is reported that 57 percent of the photo-sharing web site Pinterest is comprised of food-related content with 33 percent of Pinterest users claiming to have purchased food or cooking items after seeing them on the site, according to a PriceGrabber survey. Packaging converters that keep focused and informed of the changes in the retail environment are not only better suited to introduce packaging tomeet those changes but become invaluable partners to their CPG customers who are always seeking advice from those they perceive as experts.

Private Label Perception - Oct - Dec 2011 50

Coles Mid-Tier

40 40

39

39

30

23

20 13 10 0

It is better value for money

The price was The quality is cheaper just as good compared to as the quality leading of leading brands branks

Private Label In North America According to a consumer research study conducted for the New York-based Private Label Manufacturers Association (PLMA), 36 percent of millennials frequently purchase store brand products, and 53 percent of them purchase store brand products occasionally. Thus, almost nine out of 10 millennials purchase private brands.

PLMA discovered that 48 percent of millennials purchase more store brands than their baby boomer parents do, and millennials as a group are not loyal to national brands. When a national brand is not available on the shelf, 41 percent of millennials opt for the store brand, and 35 percent pick a different national brand. These findings indicate that more than three-quarters of millennials are willing to switch to a different brand on the spot.

It is a good The pack quality looked just as product good as leading brands

When asked why they opt for store brands instead of national brands, 71 percent of millennials said "value for the money" was the main reason. More than six in 10 agree that private label products are as good as, if not better than, national brands both when it comes to performance and taste.

For retailers, perhaps one of the most interesting findings from the research study is that 56 percent of all millennials say that when choosing a particular grocery product, the availability of a store brand is important to them, and 31 percent say that when visiting a store, it's important that the store provides a good selection of store brand products. These numbers are even higher in frequent purchasers of private label products — 70 percent and 39 percent respectively, PLMA noted.

By Michal Christine Escobar is the Associate Editor of Store Brands magazine. She can be reached at mescobar@stagnitomail.com

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Anyone who has ever been to a Costco warehouse knows Kirkland Signature, the "house brand" first introduced in 1995 and named after original company HQ in Kirkland, Washington.

What is hard to believe is that Kirkland Signature has built its success by violating every rule of consumer packaged goods marketing dreamed up by a starry-eyed MBA or classic brand manager.

Not only is consumer segmentation out -- no need for different Tide, Cheer, Gain, Era, Dreft, and Ivory Snow detergents -- there's no need even for different brands for different products like Duracell, Pringles, Vicks, Pampers, Clairol, etc. (all the foregoing, by the way are separate Procter & Gamble brands).

House brands are of course nothing new. Every grocery store markets its own brand that purports to be "as good as the leading brand."

But Kirkland Signature doesn't strive for parity, it demands superiority.

Here's Costco's own explanation of what it takes to be worthy of the Kirkland Signature imprimatur. Or take the case of Kirkland Signature canned tuna fish, it not only costs more and is of higher quality than the national brand Bumble Bee, it is actually made

by Bumble Bee to compete with their own, inferior national brand! Kirkland Signature paper towels and toilet paper are two of Costco's all time best selling products (that's why they're always located in the farthest reaches of the warehouse, of course), and they consistently perform better than their national counterparts.

Costco does not use product brands to distinguish luxury Kirkland Signature products from the merely high quality. No Lexus, Toyota and Scion product lines for different types of customers. Nor are there even tiers of Kirkland Signature: no Kirkland Signature Ultra, Premium or Select. No Black, Platinum, Gold, Green, Red, and Blue Cards. The Kirkland Signature brand is a branded house of one.

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How does Costco get away with this incomparable elasticity? If BrandCultureTalk has consistently asserted one thing, it's that great brands make hard choices, and Kirkland Signature is so catholic in its reach that it appears to make no choices at all. But that's not really the case. Kirkland Signature does make tough choices, but it does so behind the scenes through unwavering fidelity to quality and value.

For example, Costco also sells more wine than anyone else in the country, despite being restricted by state laws that limit where it can operate. Costco isn't only the world's largest retailer of high-end wines and spirits, it is in the vanguard in using the Kirkland brand to market premium, super-premium and luxury wines and spirits. Unless you have Costco's perpetual commitment to enhance quality and can leverage huge economies of scale to continually reduce cost, don't aspire to become the next Kirkland Signature brand. Right next to the bin of 2004 Chateau Margaux for $165 a bottle a savvy shopper may well espy a 2005 Kirkland Signature Margaux for $17.99. Kirkland Signature Champagne isn't just from Champagne, France, they amazinglyuse Grand Cru and Premier Cru grapes to make it. But you wouldn't know it from looking at the label because the Kirkland Signature imprimatur has become so strong that it evidently requires no additional support to bolster its "signature" quality. Oh, and it costs $24.99. Such power explains the rush for premium independent brands as valuable as Martha Stewart (NYSE: MSO) , Macallan Whisky (a premium brand that's been around for 300 years) and Starbucks to embrace co-branding with Kirkland Signature to help build their brand equity. Similarly Costco required Tyson to upgrade the quality of "Tyson Skinless Chicken Breasts" before they earned the right to be "Kirkland Signature Tyson Skinless Chicken Breasts."

Yet even the elasticity of Kirkland Signature is not infinite, despite its ability to span boat batteries to cashmere sweaters to glucosamine to prime rib. One Kirkland Signature product the world will never see, no matter how high the quality or fervently coveted: Kirkland Signature Smokes.

European food information regulations are changing scans the design and flags all violations against the x-height. This way compliancy is ensured before the design enters production.

Longer approval cycle The new regulations have strict guidelines on how and where critical information is displayed on the package. Therefor the Brand Owner’s legal department is added to the approval cycle.Through WebCenter all stakeholders get aligned on the latest update. This software enables the central management of assets, version control, and packaging approval.

As from 13 December 2014 a new EU Regulation 1169/2011 will come into effect. It considerably changes legislation on food labeling. Failure to comply with the new labeling requirements could lead to expensive product recalls and legal claims.

As a global supplier of integrated solutions for the packaging supply chain, Esko developed features in Esko Suite 12.1 to meet the challenges that come from this new EU regulation. Let’s have a closer look:

Content Management Print service providers can assure their clients that the package they produce is compliant. However, they will need to automate the workflow to increase efficiency and eliminate manual errors.

Dynamic Content plug-in makes any update of the content in the database lead to an automatic update of the artwork. This guarantees the most current information to be published on the package, as well as online.

Font size Part of the Regulation No 1169/2011 state the minimum font size in x-height. However, designers usually work with fonts in point sizes. Besides, as each font has its own x-height, there is no generic rule on how to convert this to point size.That’s where Esko’s DeskPack comes in. The software

3D visualization before production The new regulation also states that all mandatory food information shall be clearly legible in a conspicuous place, and in no way hidden by any other material. Esko’s package design tool, Studio, enables the designer to see a 3D image of the package before it moves on to production. It eliminates the need to make an expensive live mock up, and helps the designer – and the legal team – to assess if the package is compliant.

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Global Label Market

GLOBAL consultancy Alexander Watson Associates (AWA) looks at trends marking the close of 2013 and what will be the growth drivers in 2014. As industry emerges out of the recession and experiences material price inflation, the financial viability of both suppliers and converters has become a key question. Despite the challenges, opportunities and scope for innovation continue to drive the market. Forward and backward integration, substitution by other decorating technologies, economic recovery, management of waste, and new materials are just a few issues that are challenging the industry.

GLUE-APPLIED LABELS: GLUE-APPLIED LABELS: THE INDUSTRY'S WORKHORSE THE INDUSTRY'S WORKHORSE Glue-applied labels are in the lead in Europe and Glue-applied labels are in the lead do in Europe and the South America.

These labels not have South America. These labels dorequirements not have the of complex pressroom complex pressroom requirements of to pressure-sensitive technology, are ideally suited pressure-sensitive technology, are printed ideally suited to or long print runs, and may be sheet-fed longroll-fed print runs, may be printed sheet-fed on and normal commercial presses. orThey roll-fed on normal commercial presses.

They therefore represent an opportunity for commercial therefore represent opportunity for commercial printers who, an today, are suffering from the printers who, today, from the detrimental effectsareof suffering the detrimental effects of and the the growing online market growing online market and the for reduced requirement reduced forfact printed requirement materials. It is a printed It is a factprint that materials. the packaging thatmarket the ispackaging print for the only market market is the only market printed goods today, for which, printed goods today, which, globally, is growing.

Automatic globally, growing. Automatic labelisapplication on the robust labelinstalled application robust baseon ofthe glue-applied installed base of glue-applied

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labeling lines is fast, although the initial set-up can labeling lines is fast, although the initial set-up can be costly. be costly.

beverages, which represent the largest of the beverages, the across largest the of the end-use which marketrepresent for labels region, end-use market for labels across the region, coupled with their tamper-evident properties and coupled their propertiesdamage and abilitywith to act astamper-evident a barrier to any container ability act as a barrier to any container damage or to breakages are driving their popularity with both or breakages are driving their popularity with bothoffer brand owners and consumers. Sleeves also brand owners and consumers.

Sleeves also offer head-to-toe decoration of complex container head-to-toe decoration of its complex container geometries.

Sleeving , by very nature, is primarily geometries.

Sleeving , by its very nature, is primarily a film-based technology, unlike pressure-sensitive a film-based technology, unlike and glue-applied, which offerpressure-sensitive both film and paper andlabels. glue-applied, which offer both film and paper labels.

IN-MOLD LABELS: IN-MOLD LABELS: A GROWTH TECHNOLOGY A GROWTH TECHNOLOGY In-mold labels are the 'new kid on the block'. The

PRESSURE-SENSITIVE In-mold labels are the 'new kid method, on the block'.

The the complex manufacturing where PRESSURE-SENSITIVE Pressure-sensitive technology can deliver high complex manufacturing method, where the container is made and labeled at the same time, Pressure-sensitive technology can deliver levels of sophistication in terms of labelhigh shape, levels of sophistication in terms of label shape, multi-process imaging, and accurate, speedy multi-process accurate, for speedy automatic imaging, dispensingand - particularly premium automatic dispensing particularly for premium prime labeling applications. 'Shelf stand-out' is prime labeling ever applications.

'Shelf for stand-out' is of becoming more important retail sales becoming everproducts, more important for retail of branded to attract the sales discerning branded products, to attract the discerning consumer. Pressure-sensitive is also the preferred consumer.

Pressure-sensitive is also the preferred technology for variable information print labels technology for variable information print labels -and for example, track-and-trace/barcoding, for in-store example, and or pricetrack-and-trace/barcoding, weight applications, using thermal in-store price weight applications, using thermal uncoated paper stocks. There is room foror uncoated stocks.inThere is room for growthpaper (particularly high-value, specialist growth (particularly in high-value, specialist areas like security and durables labeling), areas like security and durables labeling), although the 'new' technologies - sleeving although the 'new' technologies sleeving and in-mold - are forecast to -grow faster in andthe in-mold are forecast to grow faster in medium term. the medium term.

container is made and labeled at the time, involves high-speed injection or same blow-molding involves high-speed injection or blow-molding using robotics and expensive molds. IML is, usinghowever, robotics suited and expensive molds. IML is, to high-volume container however, suited and to particularly high-volumethecontainer decoration, thin-walled decoration, and particularly the thin-walled margarine/yogurt containers that are popular margarine/yogurt containers popular today with brand owners that sinceare they represent today with brand owners since they represent reduced weight and, of course, reduced costs. reduced weightthere and, of reduced costs. of However, arecourse, a limited number However, there printers are working a limited number of experienced on in-mold labels. experienced printers working on in-mold labels.

SLEEVES - SHRINK AND STRETCH SLEEVES SHRINK AND STRETCH The -shrink, stretch and RFS (reel-fed

The shrink)/ROSO shrink, stretch and RFS (reel-fed sleeve will continue to grow shrink)/ROSO sleeve will continue to grow faster than the overall market - although not faster overall rates market - although not atthan the the dynamic experienced a few at the dynamic rates experienced few years ago. Their shelf stand-out,aparticularly on years ago. Their shelf stand-out, particularly on

MACRO TRENDS MACRO Some TRENDS new macro trends are emerging in the label

Some new macro trends are emerging in the label market.

Hotmelt glue-applied wrap-around labels market.

Hotmelt glue-applied wrap-around labels and heat shrink sleeves are significantly andchallenging heat shrink are significantly the sleeves main labeling technologies. challenging the main labeling technologies.

Wrap-around labels are making strong inroads into Wrap-around labels are making strong inroads a broader beverage sector than just into bottled a broader beverage sector than just bottled waters, taking in fruit juices and functional drinks, waters, fruit juices andtaking also in growing in and the functional main fooddrinks, labeling andmarket. also growing in the main food labeling In the US, pressure-sensitive labels are market.

In the thecurrent US, pressure-sensitive labelslabels are on facing return from film-based facing the current return from film-based labels on

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premium beers to paper-based labels, and even back to glue-applied labels to save costs. Even label print technologies are showing a shift in the direction of the maturing digital print technologies, which are gaining market share - particularly for multi-version labels printed on a generic template, for application to a standardized container. This is especially visible in the health and beauty care market.

COST ISSUES High raw material costs are at the forefront of the agenda of both end-user packaging buyers and their label converter suppliers.

Rising oil and petrochemical prices, as well as prices of film materials, resins, inks, adhesives, and even paper and wood pulp are creating a difficult route to profitable business for all concerned in the label industry value chain.

THE ENVIRONMENT Environmental concerns are today playing an increasingly important role in that value chain, as brand owners publish corporate mission statements on carbon footprint and waste management. There are initiatives dedicated to helping converters and suppliers find cost-effective ways to reduce their environmental

footprint, as well as in the direction of waste collection, particularly for pressure sensitive release liner and matrix waste. Europe is in the lead, but the rest of the world will certainly follow.

ISSUES AND OPPORTUNITIES There are other concerns for the label industry - particularly the rise of flexible packaging and pouches, which do not require an additional label at all. But there are also a number of high-value opportunity areas such as 'intelligent' packaging, using RFID or featuring time/temperature or sell-by date indicators, as well as an ever-increasing need for anti-counterfeiting, track-and- trace, and tamper-evident features.

The food, beverage, and pharmaceutical markets are key targets. Such security options are ideally located on labels, in whichever way they are printed and applied.

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Packaging Creates

Consumer Loyalty

by Greg Kishbaugh

Meadwestvaco has released its second annual study, called Packaging Matters, which analyzes the role packaging plays in consumer purchasing behavior, brand loyalty and overall product satisfaction. The report utilizes information garnered from 10 countries, including Brazil, China, Germany, India, Japan, Russia, South Africa, Turkey, the United Kingdom and the United States.

It comes as no surprise that packaging plays a significant role in the purchasing decisions of consumers, but the report stresses that packaging also helps determine a consumer’s relationship with a product well beyond the initial purchasing decision. “It wouldn’t be an overstatement to say that the role that packaging has played in that brand/consumer relationship has changed irrevocably over the last 20 years, 10 years and even 5 years,” said Steve Kazanjian, Vice President of Global Creative.

The Packaging Matters research focused on the Trial, Repeat or Switch mentality of the retail purchasing process, in which consumers trial a new product and subsequently repeat the purchase or switch to another product, the steps then repeating themselves.

“64 percent of consumers tried a new product as a direct result of packaging catching their attention on the retail shelf. 40 percent purchased a product again because of the packaging, while 36 percent switched brands because of dissatisfaction with the new packaging”

“Packaging continues to play an important role in building brand loyalty and driving repeat purchase in-store and, increasingly, it is also a vehicle that connects brands and consumers online,” said Kazanjian. “Brands that recognize how packaging can influence online shoppers have an opportunity to see a ripple effect as those consumers share their positive experience with others via product reviews or through their social networks.”

Despite the critical role that packaging plays in the consumer experience, it’s surprising to see that only 11 percent of global consumers are completely satisfied with packaging today. “Consumers say that functional attributes of packaging are critical to their satisfaction, but only a small percentage are completely satisfied with packaging as it exists today,” said Brian Richard, director, Consumer and Customer Insights, MWV. “Our research shows that the package needs to do more than look good on a shelf and drive trial of a product. The package also needs to be easy to transport, store, use and dispose of, if the consumer is going to buy the product again.”

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Ultrasonic Anilox Roll Damage:

Separating Fact from Fiction One of the essential keys to consistently excellent flexographic production is a clean anilox. Getting things right at the front end means the press is guaranteed to produce the highest quality. Ensuring the anilox is clean and free from damage is a sure fire way of getting this to happen. Despite this being glaringly obvious, this essential and highly significant task is often overlooked or treated with less importance than required.

A fear factor is prevalent. Printers need to protect the vast amounts of money spent on aniloxes, especially in these times of HD flexo which leads us further and further down the path of ultra high screens.

Any suggestion that equipment has damage potential lurking in the shadows, they will avoid it at all costs. This is by no way their fault, but if they are taking definitive advice from those without expertise in different methods utilising complex technology as averse to simple sprays and application methods, they do not have the full picture.

Having distorted viewpoints has potentially harmful affect for suppliers and printers alike. It is a calamity when the customer is not getting the facts.

A phrase often heard is: ‘we don’t have to clean our aniloxes really. The work we do doesn’t require it.’

This is akin to saying ‘I don’t need to clean my teeth.

I only eat certain foods.’ To achieve consistent, high quality print production, implementing and maintaining a regular and effective anilox cleaning regime is of paramount importance. Regardless of the jobs running.

More to the point, it protects the significant investment made in a printing press, plates, inks and HD design software. Without an anilox in prime condition, one simply cannot get the best from the press and the surrounding elements.

I addressed this in an article written for FlexoTech in 2011 which was a guide on how to make an informed choice on an anilox cleaner. Along with consumable costs, skill level and time consumption, the other important consideration is ensuring that the anilox remains safe at all times. This is where the cut throat world of anilox cleaning suppliers becomes murky. Badmouthing between competitors is rife and this is where myths and falsities are created.

The Fiction Alphasonics have fallen foul of this. They feel this is the result of certain suppliers wrongly suggesting to potential customers Alphasonics equipment can cause anilox roll damage despite having zero expertise in ultrasonics and its capabilities.

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The Facts In truth, there are some horror stories surrounding ultrasonics that stem from systems which circulated in the 80’s and early 90’s where equipment was low frequency, low specification and generally not fit for purpose.

Anilox damage was possible as the ultrasound was often not controlled in the correct manner.

When sound is put into water, it is patchy. There are areas of high concentration and likewise, areas of low activity, spelling danger for the anilox. These ‘hot and cold spots’ are ultrasonic over and under exposure across the web width of the anilox. To counteract this, manufacturers use what is called a ‘Sweep Rate’. Sweeping above and below an average frequency means the ultrasonic activity loses that focus and is spread over a wider area.

Imagine a spotlight. The wider the sweep rate, the wider the ‘beam’.

Another key factor is the frequency. Ultrasonic transducers vibrate the base of a tank, causing it to flex at high speeds. Due to the speed and the width of the flex, a process occurs called ‘cavitation’. This is the production of vacuum chambers (or micro bubbles) that implode in the fluid and on contact with the anilox. A higher frequency produces smaller cambers and therefore a gentler cleaning action.

The sad truth is, the culpable equipment in question still exists in one form or another today. Both then and now, they can utilise frequencies of 30-40 kHz alongside extremely narrow sweep rates. This is a frequency range Alphasonics would not even use for parts cleaning, let alone delicate ceramic coated aniloxes.

The frustration from Alphasonics is that they are associated with poor examples by competitors from other spheres of anilox cleaning, despite being a lot more advanced technically than the poorer examples on the market. Again, this is down to lack of expertise from these parties as they are unable to differentiate.

Despite Alphasonics being tarred with the same brush, over 21 years they have developed a number of unique, highly advanced technologies designed to control the ultrasound used in a tank. In house developments such as ‘Alphasound’ give the operator the choice between low and high frequency settings. The low frequency setting of 55 kHz can be used on rolls of 800lpi or under whether cleaning is frequent or sporadic. The alterative setting of 98 kHz however allows the user to clean high screen counts regularly. This could be once, twice or three times a day or even at every ink change. The principle is the flexibility to use a mechanical cleaning process as a regular cleaning method without any risk to the anilox.

With regards to the control aspects, until recently a sweep rate of +/-5khz has assured roll safety.

Alphasonics are proud to highlight their 21 year record of never having to replace an anilox due to ultrasonic damage, a guarantee they give to all customers. However, a slightly different approach was launched at LabelExpo Europe 2013 and is now a standard feature. ‘Enhanced SuperSweep’ uses a much wider sweep rate, tailored to suit the ultrasonic transducers used on the system. This means going well beyond the previous technology as at the end of each sweep above and below the average frequency, a peak is reached where the sound is perfectly suited to the ultrasonic elements. This means safety is even further assured.

Despite their differentiators, they can often fall foul of ill conceived notions and associations. For this reason, they met the challenges head on and put themselves firmly in the spotlight in order to separate fact from fiction.

Three brand new 1200lpi 400lpi ex production anilox rolls were used, supplied by some of the biggest and best names in anilox roll production including Pamarco Global Graphics and Inometa. Coming in at the equivalent of around five years worth of cleaning, the trial was continuously captured around the clock by 4 cameras. Three separate live discussion and Q and A sessions also took place addressing questions fielded via the internet and social media from those looking to find out more about the trial and the technology.

The rolls were independently inspected before and after the trial by Troika systems who verified that all rolls were undamaged and would be perfect for full production. Results were taken during a final live broadcast with the viewer being given full access to the measuring process with results revealed as they happened. Alphasonics have since published the roll measurements from Troika online and the footage will be posted to YouTube as a condensed version for viewers to watch at their convenience.

Alphasonics equipment has been put through an unobstructed and exhausting test, proving their equipment does not cause anilox damage.

The Ultimate Outcome The idea behind the trial was to undeniably prove the link between Alphasonics equipment and anilox damage to be no more than a myth. Controlling ultrasound correctly ensures anilox rolls can remain safe, and while Alphasonics cannot speak for other ultrasonic suppliers, they are safe in the knowledge that their technology and their capabilities simply cannot be questioned when anilox safety is considered.

Ensuring the printer receives the full picture is what has driven the company. Dispelling links to anilox damage therefore gives printers access to technology that can have a positive impact on production quality. Regularity is the key factor to ensure guaranteed results from the press. Therefore, an anilox cleaning method needs to be flexible enough to use regularly but at the same time, capable of delivering on cleaning results time after time.

Alphasonics are confident they have proven their equipment to be capable of this, and have put a few myths to bed in the process.

The Answer In response to damage claims, a unique experiment was carried out. From Sunday 25th of May 2014, a continuous roll cleaning trial was streamed online, live from their manufacturing facility for 24 hours a day over the course of 5 days, with no breaks.

Watched by a combined audience of 607 viewers, the trial employed the ‘Alphasound’ and ‘Enhanced SuperSweep’ technologies, designed to give viewers full access to the equipment along with behind the scenes access to their production facility.

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CROSSING THE GENDER A Brand’s Ability to Speak to Women and Men

Dove successfully made the leap into the men’s personal care category by leveraging its product differentiation and making moisturizing meaningful to both men and women.

With fewer new brands being created by large CPG companies, more companies are extending traditionally gender focused brands or product offerings to appeal to the other 50 percent, be it men or women.

Dove, the female-focused “Real Beauty” brand, extended into men’s grooming since late 2009 and now was reported by Buyology as being one of the most desirable brands in the U.S. for both women and men, ranking fourth on the list for both genders.

Interestingly, Unilever is taking its other gender-focused brands, Axe (in the U.S. and international) and Lynx (in the U.K.), in the opposite direction, taking the to-date quintessential male-targeted brand and extending the product offering and mes52

sage to women. Perhaps the company picked up on the fact that the brand has a few female followers. What may come as a shock to many, almost 25 percent of Axe’s 2.6 million U.S. Facebook followers are women. The company launched the first Axe/Lynx limited edition product for women, an Anarchy fragrance or body spray that has a version just for her. Even more surprising, more women have had a positive perception of the Axe brand since the launch (perception levels almost doubled) according to YouGov BrandIndex, which tracks consumers’ daily perception of brands.

Axe is finding its fans are female after the brand launched the limited edition “For Her” version of the Axe fragrance, Anarchy

Corrugated INDUSTRY

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CORRUGATED MA R K E T The global corrugated market was worth over $140 billion in 2013, amounting to almost 90 million tonnes of finished product according to a new market report from Smithers Pira.

Demand for corrugated packaging is expected to increase by an average of more than 4% annually over the next five years, and will amount to almost 115 million tonnes of converted material worth by 2019.

According to the report, the largest producing country of corrugated board is China, which amounted for more than Figure E.3 Forecast global consumption of corrugated board 27% of the total container board market by end-use market, 2019, volume, end-use market Source: Smithers Pira volume produced in 2013. China also leads the world in corrugated conversion, making up over 28% of the global converted output in 2013.

Almost 30% of the projected volume in 2019 will be used in the packaging of processed foods, with fresh produce adding a further 10% to the total. The packaging of electrical goods, which includes mobile devices, is expected to show the most attractive growth prospects. This sector will increase its volume consumption of corrugated materials on average by 5.6% annually to 2019, representing almost 7% of the total market volume by this time. By 2019, food packaging will consume almost 47% of the total volume of board, with processed foods accounting for 30% of the total. Electrical goods will be the single largest non-food packaging application, followed by paper products and personal and household care items.

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INDONESIAN CORRUGATED INDUSTRY Total production of the corrugated industy in Indonesia 3.3 million tons or 6.6 billion sqm. Indonesia corrugated had become no 10 in the world by 20111 and the incremenatal growth for the next 5 years (2011 – 2016) amounting to 2.351 msm (no 4 in the world). Last growth is 12%. Trend of the corrugated the same all over the world less weight, less energy, demand on automated machines to increase quality and less man power.

In Indonesia there are about 160 corrugated machineries mainly in Java island (greater jakarta, bandung, semarang and surabaya. Only few outside java island (1 in Sulawesi, few in Sumatera and none in Kalimantan).

Paper Paper weight is getting less and less. Fluting mostly now about 112 gsm down from 125 gsm. While Liner now mostly 150 gsm down from 200 gsm. Almost 100% of paper are supply locally as Indonesia has quite some big paper manufacturers.

The paper price tends to increase since the beginning of 2014 and current market prices for test liner between US$ 490 – US$ 517 per ton, while medium about US$ 450 per ton. Business dropped 15-20% in Quarter 1 2014 but expected to moving up in Q2, Most of machineries used in the Indonesian corrugated industry are Asian made with some few exception using Martin, Bobst, Mitsubishi and Isowa.

INDONESIA CORRUGATED INDUSTRY 2011 – 2016 TOP 10 BY CORRUGATED OUTPUT – 2011 Country 1. China 2. USA 3. Japan 4. German 5. Brazil 6. Italy 7. India 8. South Korea 9. France 10. Indonesia

Msm

% share

50341 36667 13143 8947 6902 6516 6275 5657 5581 4525

24.8 18.0 6.5 4.4 3.4 3.2 3.1 2.8 2.7 2.2

TOP 10 BY INCREMENTAL 2011 - 2016 Country 1. China 2. India 3. USA 4. Indonesia 5. Brazil 6. South Korea 7. Turkey 8. Mexico 9. Vietnam 10. Poland 11. Thailand

Msm 18298 3219 2406 2351 1208 976 973 811 718 694 664

% share %pa 48,3 8,7 6,4 6,2 3.2 2,6 2,6 2.1 1,9 1,8 1,8

6,4 8,8 1,3 8,7 3,3 3.2 5.2 4.6 8.9 3.9 3.9

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PT DWI ANEKA JAYA KEMASINDO Tbk With its 9001- 2008 specialize on Corrugated Carton and Offset Printing

Established since 1996 and currently known globally as one of the leading player in in the offset printing industry and corrugated packaging. They are the first Offset Printing Company Go Public in Indonesia this year.

With the Vision to become one of the market leader in offset printing and corrugated packaging in Indonesia, by providing high quality product, on time delivery, good services and creating value added to the customer. PT Dwi Aneka Jaya Kemasindo will provide the best service to all customers, adding value and improving the quality of product, and build excelent collaboration with the custome

The Man Behind DAJK The Man Behind DAJK

Mr Andrea was born in Mr Andrea Singkawang was born (Kalimantan Island). in Singkawang The (Kalimantan brave young Island). manThe move to brave young Yogyakarta following man move to his Yogyakarta friend to enjoy following study School hisHigh friend to in enjoy this studyart and in High School education city, this art Heand did education all the He city, registration by himself with the blessing from the did all the parent.

Later onby hehimself proceed his the study to University registration with blessing from the Indonesia in Jakarta majoring in Electrical parent. Later on he proceed his study to University Engineering.

When I asked why he choose Electrical Indonesia in Jakarta majoring in Electrical Engineering – HeWhen replied with his I was inElectrical IPA Engineering.

I asked whysmile he choose (Chemical, Match) so naturally to choose Engineering – He replied with his smile I was in IPA engineering (his father asked the same and (Chemical, Match) sohimnaturally to got choose the same answer like me). engineering (his father asked him the same and got the same answer like me).

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With his natural instint in Sales, since semester III in the University henatural had instint startedin Sales, his venture in Sales IIIby With his since semester in the become a Freelance Salesman for Encyclopedia up by University he had started his venture in Sales to the film fora Freelance car window (something like Vcool). up become Salesman for Encyclopedia Thentointhe 1992 finally he started his venture film for car window (something likewith Vcool).

Corrugated joininghe SKUstarted as Saleshis Manager.

Then in Boar 1992byfinally venture 4with years later whenBoar he decided to SKU startas hisSales new Manager. venture 4 Corrugated by joining he was the GM of Sales by then. years later when he decided to start his new venture he was the GM of Sales by then.

Startup of DAJK DAJK Dwi Startup Aneka startedof in his living room with 2 employee

onlyDwi for pick up started the phone and delivering the2goods.

Aneka in his living room with employee The first 30 million.

On the 2nd year onlyinvestment for pick upjust theRp phone and delivering the goods.

Dwi The Aneka rent sqmOn warehouse first managed investmentto just Rp a 30300 million. the 2nd year andDwi start in managed operation towith simple Aneka rent few a 300very sqm warehouse At the same year PT Dwi Aneka Jaya Kemasindo equipment. afterward with they few rent avery bigger and start2 years in operation simple make Opening of their Head Quater in Attheir the Official same year PT Dwi Aneka Jaya Kemasindo place of 800 sqm.2 years In this afterward place theythey canrent afford to equipment. a bigger a 11.000 sqm land with 16.000 building.

By this time PT make their Official Opening of their Head Quater in haveplace 2 color By 2002 they started of printing 800 sqm.machine, In this place they can afford to Dwi a Aneka Jaya has contributed serve 11.000 sqmKemasindo land with 16.000 building. Bytothis time PT to buy their of 2.500 sqm and have they 3 colors have 2 own colorland printing machine, By 2002 started 1,000Dwi Indonesian population with a place to work (or Aneka Jaya Kemasindo has contributed to serve FlexotoPrinter. buy their own land of 2.500 sqm and have 3 colors giving liabilities to about 4.000 Indonesian 1,000 Indonesian population with a place to work (or Flexo Printer. population. giving liabilities to about 4.000 Indonesian population.

Grand Opening Grand Opening

Folding Carton Venture Carton Venture Dwi Folding Aneka Jaya Kemasindo started

Mr Andreas share his secret o success

theirDwi offset printing poduction in 2009 Aneka Jaya Kemasindo started in with 5 colors Heidelbeg CDin –2009 their offset printing poduction though they 5have started supplying in with colors Heidelbeg CD – the though customer since 2005 by they have started supplying subcontracted to others. only by the customer since This2005 possible as the customer trust PT Dwionly subcontracted to others. This Aneka Jaya Kemasindo quality possible as the customer trust PT Dwi control.

FoldingKemasindo Carton facility AnekaThis Jaya quality was control. buit in 7700 sqm land Tangerang, This Folding inCarton facility

- Perseverance - Faith - Maintaining Customer Confidence

was buit in 7700 sqm land in Tangerang,

Acquisition 2011Acquisition they took over PT Super Kemas Pratama With

IPO Mr IPO Andreas need an assurance for the the company Mr continuity Andreas of need an assurance

for for thethenext generation.

He continuity of the company believe one of the way is by going for the next generation.

He public.

Asone once a way company believe of the is by going become a public company the public.

As once a company company will have to be the become a public company managed by professional which will manage the company will have to be company as well possible. which will manage the managed byasprofessional company as well as possible.

THE NEXT Packaging in Indonesia is still premature compare to THE NEXT Japan, Europe even compare to Thailand. In

their2011 mangement, PT PTSuper PratamaWith Packaging in Indonesia is still premature compare to they took over Super Kemas Kemas Pratama Indonesia goodscompare still has perception that In managed to double their turnover within a year.

In Japan,consumers Europe even to Thailand. their mangement, PT Super Kemas Pratama packaging just to protect the product therefore thethat 2013managed PT Super Kemas Pratama mergedwithin with PT Dwi In Indonesia consumers goods still has perception to double their turnover a year. quality is just average not eyecathing enough.

Most Aneka Jaya Kemasindo housing a 23.000 packaging just to protect the product therefore the 2013 PT Super Kemasand Pratama merged withsqm PT Dwi of the timeisthe goods just consider theMost landAneka as PT Dwi Aneka Jaya Kemasindo Plant 3. quality just consumers average not eyecathing enough.

Jaya Kemasindo and housing a 23.000 sqm costof and cost only, the time the consumers goods just consider the land as PT Dwi Aneka Jaya Kemasindo Plant 3. cost and cost only,

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corrugated site, they equipped with New Taiwan Corrugated Machine 2.2 m with max.speed:250 m/min, 5 Flexo Printer, 2 Auto Diecut, 2 Folder Gluer In addition PT Dwi Aneka Jaya Kemasindo also has their own DESIGN & PREPRESS. Therefore the new venture would be to provide a packaging for the consumers products (Retail Ready).

They will approach the retailer to provide their new mass products as well as they will educate the consumers the important of the hyginee packaging. This new approach will bring new dimension to the consumer packaging in Indonesia. Just like when the truck driver change from buying drink of ice tea in the plastic become in the plastic cup. More hyginne and easy to deliver, to carry, to store.

The Woman Behind In the success of a man, always has a woman to smoothen his path. Make him comfortable at home, freedom to do what he has to do.

But now is the moment that consumers goods start to realize to use packaging as a tools for promoting the product in the package. Ofcourse with the increase of the function, the quality of the image – the machineries as well has to be more sophiscated, therefore PT Dwi Aneka Jaya Kemasindo has make their preparation by having the very very huge factories that can accomodate 11 Offset Printing, 12 Automatic Diecut Machine and Hot Foil Stamping, Spot and Free UV Machine, 11 Folder Gluer, Cutting Machine, Laminating (Gloss and Matte). On the

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Mr Andreas and his soulmate had known each other since they were in the childhood in his hometown, Singkawang. When he was in the University, he heard that his soulmate also move to the same city.

He immediately made his move to find her and 6 years later they were officially tied together and bless with ... children. He told me that his wife trust him totally and never slow him down.

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

i nf o : t osi j kt@cb n. ne t tosijkt@cbn.net 59

Thinking

inside

the box

Innovative corrugated solution helps a global beer brand owner to invite the locals to chill out and party. “Development on this new format is part of our on going innovation process and the initial response has been very positive,” enthuses Miller Brands director of customer marketing Sam Rhodes. stores ‘something tonight’, often Miller Brands is the UK and Ireland subsidiary stores to to buy buy ‘something for for tonight’, often Miller Brands is the UK and Ireland subsidiary of of consuming their purchase within 4 hours of buying SABMiller, one of the world’s largest brewers whose SABMiller, one of the world’s largest brewers whose consuming their purchase within 4 hours of buying it. Retailers this and advantage portfolio includes different brands it. Retailers cancan tap tap into into this and taketake advantage of of portfolio includes overover 200 200 different beerbeer brands the increased exposure Miller Genuine Draft will brewed in over 75 countries.

Originally established brewed in over 75 countries. Originally established the increased exposure Miller Genuine Draft will see see months ensuring MGD in South Africa years the group produces overover the the nextnext months by by ensuring theirtheir MGD in South Africa 118 118 years ago,ago, the group produces offering is kept chilled, and by stocking up over 21 bn litres of large per annum, and last year over 21 bn litres of large per annum, and last year offering is kept chilled, and by stocking up on on boosted its overall turnover by around smaller packs.” boosted its overall turnover by around 7.5%7.5% to to smaller packs.” make it the world’s number 2 brewery in terms of make it the world’s number 2 brewery in terms of sales. sales.

Innovative Packaging Innovative Packaging A combination of product quality targeted Keeping large chilled is something A combination of product quality andand targeted Keeping the the large chilled is something thatthat marketing has enabled Miller Brands to out-perform consumers are now more than able to marketing has enabled Miller Brands to out-perform consumers are now more than able to do do for for its competitors by increasing sales against the themselves thanks to an innovative corrugated its competitors by increasing sales against the themselves thanks to an innovative corrugated backdrop of an often challenging European packaging solution developed for Miller Brands backdrop of an often challenging European packaging solution developed for Miller Brands by by market beer of consumption-valued at around €21 UK based CRP Print & Packaging. market beer of consumption-valued at around €21 UK based CRP Print & Packaging. bn/yr in the large accounting bn/yr in the UK, UK, withwith large accounting for for an an estimated 71.5% of all retail sales, and a market “Cooler incorporates a specially estimated 71.5% of all retail sales, and a market The The “Cooler Box”Box” incorporates a specially within which regional preferences can be a developed water-resistant inner lining designed within which regional preferences can be a developed water-resistant inner lining designed to to significant driver. enable the take home pack to act as alternative significant driver. enable the take home pack to act as alternative to to the ice-bucket is claimed to abe a unique the ice-bucket andand thatthat is claimed to be unique “This is particularly true of Scotland, where the feature in the category.

Once the lid has been “This is particularly true of Scotland, where the feature in the category. Once the lid has been brewery’s Miller Genuine Draft (MGD) premium opened, an integral webbing system enables brewery’s Miller Genuine Draft (MGD) premium opened, an integral webbing system enables the the large recently secured category’s number of the pack to splay so that icewater or water large has has recently secured the the category’s number sidessides of the pack to splay out out so that ice or two slot throughout the off-trade; a status it hopes can be added by the consumer.

The ‘Cooler two slot throughout the off-trade; a status it hopes can be added by the consumer. The ‘Cooler Box’Box’ to improve upon via extensive an extensive TV and printed be used equally as effectively for both inside to improve upon via an TV and printed cancan be used equally as effectively for both inside media campaign aimed directly at the country’s and outdoor parties and events, and is reported media campaign aimed directly at the country’s and outdoor parties and events, and is reported to to growing home market under theme : have remained 100% fully-functional for periods growing taketake home market under the the theme : have remained 100% fully-functional for periods of of “Tonight it”s Miller Time”, says director of customer time in excess of a during pre-launch trials.

“Tonight it”s Miller Time”, says director of customer time in excess of a during pre-launch trials. marketing Rhodes. marketing SamSam Rhodes.

Whilst by means no means corrugated Whilst this this is byis no the the first first corrugated box box “Consumers are increasingly visiting convenience designed and manufactured to withstand water “Consumers are increasingly visiting convenience designed and manufactured to withstand water let let

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alone ice-Smurfit Kappa produced a moisture-resistant pack for Bacardi’s rum-based Breezer alcopop last year, for example- the significant point of different making this a unique concept is the use of a fine E flute interior lining; half the thickness of the heavier B flute customarily used for a standard size beer case made to contain a full complement 275 ml x 18 glass bottles.

Requiring a more robust specification than a standard structure, 175 gsm white-lined Kraft fibre (WLK) was used for the outer line. This provided not only additional strength and water-resistance whilst eliminating any risk of paper slitting that might otherwise have occured in a format incorporating such a high proportion of creases, but also the optimum surface conditions for such a high quality decorative finish printed in 4 colour offset + aqueous varnish.

Market Impact In addition to demonstrating the scope for originality of which corrugated is clearly capable, the ‘Cooler Box’ reflects a number of marketing positives helpful towards enabling the drinks industry projecting a more sustainable image.

The choice of material itself ticks all of the pro-environmental boxes; doubly so in continuing to work for the consumer and supplier a like by eliminating the need for additional packaging preand post-sale. It also avoids the disadvantages inherent to most other multi-functional formats at end of life by requiring no pre-recylcing treatment or separation.

“By further enhancing Miller Genuine Draft’s hallmark clarity and crisp freshness the new pack format also enlivens the home consumption experience”, notes Sam Rhodes. “Development on this new format is part of our on going innovation process and the initial response has been very positive, with over 60% of the first production run sold through during the first ten days.

brand both in-store and at home and looks certain to drive the category forward.

“It’s also a classic example of how the substrate’s scope for flexibility –and the design and production expertise to harness it-makes it the natural packaging medium through which to explore opportunities which have not previously been considered and which might otherwise never have been attempted.”

Designed very much as a global pack, there is every possibility of the ‘Cooler Box’ being rolled out across other geographical markets subject to an ongoing positive consumer response within the UK. Information

Cooler Box • Development of the ‘Cooler Box’ concept commenced in mid-2012.

• Availability of the pack was initially limited to just 60 Asda outlets in Scotland and N. Ireland.

• To facilitate the splaying effect once the pack has been opened an integral web webbing (also made of corrugated board) was specially developed to be compressed into the case to ensure that nothing detracted from the overall appearance.

• First brewed in the US in1986, Miller Genuine Draft uses a proprietary unique ceramic cold filtering technology to remove impurities and to accentuate freshness.

• Miller Brands grew its large sales by 4% in volume to year-end 31 March 2013 despite an industry –wide decline in overall beer sales throughout the UK of 5.1 % during the same periode.

“The pack carries 18 bottles and is designed to perform as a cooler box, which when opened can hold ice to chill the beer, facilitating sharing occasions. The cost of the pack is reflective of the dual purpose technology, and and the initial trial has shown that consumers are willing to pay a premium for this superior and enhanced drinking experience.”

The development of the new concept has been welcomed by the corrugated industry’s UK trade body the Confederation of Paper Industries (CPI), whose director of public affairs Andrew Barnetson commented, “This is a refreshingly new application in every sense of the word, which demonstrates the high level of innovation and functionality that corrugated can offer. The extension of a corrugated box into a chill cabinet demonstrates a breadth of vision that genuinely differentiates the

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Sino Corrugated South 2014 Success

SinoCorrugated South and SinoFoldingCarton 2014 held last April at the Guangdong Modern International Exhibition Center (GMIEC) in Houjie, Dongguan. This year visitiors reached 29,114 and over 600 well-known equipment suppliers participated, all registering high rates of satisfaction.

Many of the international and local suppliers debuted new products onsite, while a number of new trade and partnership agreements were forged during the show.

The leading corrugated packaging manufacturing The leading corrugated packaging manufacturing industry event in Asia-Pacific, this years combined industry event in Asia-Pacific, this years combined show brought a large number of well-known show brought a large number of well-known suppliers. These included BHS, EMBA, Fosber, suppliers. These included BHS, EMBA, Fosber, Mosca, Sun Automation, Marquipward United, E&L Mosca, Sun Automation, Marquipward United, E&L ，Albany, Maxcess, Tiruña S.L., Voith, Rodicut, ，Albany, Maxcess, Tiruña S.L., Voith, Rodicut, Valco, Hhs, Nordson, Esko, Mühlen Sohn, Nippon Valco, Hhs, Nordson, Esko, Mühlen Sohn, Nippon Tokken, Friese, Cue, Siemens, Ming Wei, Hsieh Hsu, Tokken, Friese, Cue, Siemens, Ming Wei, Hsieh Hsu, K&H, Yueli, Maxdura, Qingdao Justu, Qingdao K&H, Yueli, Maxdura, Qingdao Justu, Qingdao Kaituo, Zhaoqing Xijiang, Qingdao Meiguang, Kaituo, Zhaoqing Xijiang, Qingdao Meiguang, Shanghai Jinchang, Zhuzhou Sinovan, Shanghai Jinchang, Zhuzhou Sinovan, Keshenglong, Giant, Ekofa, Eterna, Nantai, Yutian Keshenglong, Giant, Ekofa, Eterna, Nantai, Yutian Chengyuan, Yoco Shanghai, Weifang Xinchuan, Chengyuan, Yoco Shanghai, Weifang Xinchuan, Jinya Machinery, Tangsheng Machinery, Jinya Machinery, Tangsheng Machinery, Dongguan Tianjin, Dongguan Qixing, Qingdao Dongguan Tianjin, Dongguan Qixing, Qingdao Hengteli, Yuanluh Machinery, Wujin Haili, Infotech Hengteli, Yuanluh Machinery, Wujin Haili, Infotech Consultant, Siksoft, Shenzhen Chenlong, Yongjin Consultant, Siksoft, Shenzhen Chenlong, Yongjin

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Computer, Qingdao Bangde, Auclean, Oake, Sky Computer, Qingdao Bangde, Auclean, Oake, Sky Dragon and Shenzhen Yilong.

Dragon and Shenzhen Yilong.

Many companies chose to debut their new Many companies chose to debut their new products to the Asia-Pacific market. Guangzhou products to the Asia-Pacific market. Guangzhou Giant Packaging Machinery, for example, Giant Packaging Machinery, for example, unveiled the automated carton gluing and unveiled the automated carton gluing and binding machine from its binding machine from its printing-slotting-gluing-binding production line: Lee printing-slotting-gluing-binding production line: Lee Sang Duk. Wenzhou Zhengrun Machinery debuted Sang Duk. Wenzhou Zhengrun Machinery debuted their painstakingly developed RB420 automated their painstakingly developed RB420 automated box converting machine. Shanghai Eterna box converting machine. Shanghai Eterna Machinery Manufacturing introduced its Brausse Machinery Manufacturing introduced its Brausse automated box gluer TA1100-C6 (II). The intelligent automated box gluer TA1100-C6 (II). The intelligent automated corrugated board production control automated corrugated board production control system displayed by Erhardt + Leimer GmbH system displayed by Erhardt + Leimer GmbH (Germany) also wowed visitors.

(Germany) also wowed visitors.

The team of Indonesian Corrugated Cardboard Industries Association, International Corrugated Case The team of Indonesian Corrugated Cardboard Industries Association, International Corrugated Case Association take a picture in front of the exhibitor hall. They combine the visit to the exhibition with a Association take a picture in front of the exhibitor hall. They combine the visit to the exhibition with a sightseeing to the beautiful Yangtze river. Therefore some of the members also bring their family along to sightseeing to the beautiful Yangtze river. Therefore some of the members also bring their family along to see the beautiful china sights see the beautiful china sights

Over 100 Industry Associations Represented Onsite

During this event the exhibitor also co-sponsor the ACCA (Asia Corrugated Case Association 2nd During this event the exhibitor also co-sponsor the ACCA (Asia Corrugated Case Association 2nd Management Committee Meeting in Regal Palace Hotel, Dongguan, CHINA. The participant of the Management Committee Meeting in Regal Palace Hotel, Dongguan, CHINA. The participant of the general meeting above. general meeting above.

The Exhibitor also arrange the Indian community meeting. See below pictures for some of the participants The Exhibitor also arrange the Indian community meeting. See below pictures for some of the participants during the event. during the event.

Reed Exhibitions China Carton Industry Training Week made a big comeback in 2014, based on a program Reed Exhibitions China Carton Industry Training Week made a big comeback in 2014, based on a program of diverse, value-laden supplementary activities that focused on hot topics and industry trends. The of diverse, value-laden supplementary activities that focused on hot topics and industry trends. The activities included the Summit on the Transformation of the Packaging Industry and Innovations and activities included the Summit on the Transformation of the Packaging Industry and Innovations and Development of Paper Packaging Technologies; the China Packaging and Printing Alliance Annual Summit Development of Paper Packaging Technologies; the China Packaging and Printing Alliance Annual Summit 2014; the Paper Honeycomb Industry Development Summit; the China Flexographic Development Summit; 2014; the Paper Honeycomb Industry Development Summit; the China Flexographic Development Summit; the Reed-Yuanhe Public Lecture; the Green and Creative Packaging Designs Summit and new product the Reed-Yuanhe Public Lecture; the Green and Creative Packaging Designs Summit and new product debuts that attracted thousands. debuts that attracted thousands.

SinoCorrugated 2015 will be held at the Shanghai New International Expo Center in April 2015. The exhibition SinoCorrugated 2015 will be held at the Shanghai New International Expo Center in April 2015. The exhibition area will expand to 67,000 sqm. An expected 32,000 visitors will attend the show for which, already, 80% of area will expand to 67,000 sqm. An expected 32,000 visitors will attend the show for which, already, 80% of exhibition space has been sold. The SinoCorrugated 2015 will maintain its leading position in the industry and exhibition space has been sold. The SinoCorrugated 2015 will maintain its leading position in the industry and continue to attract high levels of international participation. See you next April at SinoCorrugated 2015—the continue to attract high levels of international participation. See you next April at SinoCorrugated 2015—the world’s leading exhibition for corrugated packaging manufacturing! world’s leading exhibition for corrugated packaging manufacturing!

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ACCA’s 2nd Management Committee Meeting

9 th Apr i l 2 0 1 4

Re ga l Palace H ot el, Don g g ua n, C HIN A ACCA President, Mr Simon Lo (HKCPMA), as Chairman of this ACCA’s 2nd extended a warm welcome to all participants present. He expressed his appreciation to Reed Exhibitions for hosting the meeting and organising the four days of ACCA activities which included a golf tournament and a factory visit.

Country/Association Representatives Update

of Their Local Corrugated Activities Chinese Taipei Corrugated Case Trend & Innovation Chinese Taipei Corrugated Case Trend & Innovation GDP in 2014 estimated to growth 2.82%.

1. Green packaging in 2014 estimated growth 2.82%.

1. GreenRenewable packaging TotalGDP production of the tocorrugated industy in -Recyclable Sustainable -Recyclable Renewable Sustainable Total 2.1 production of Total the demand corrugated industy in 2. Clean Indonesia million tons, for recovery Energy Production 2. Clean Energy Production Indonesia 2.1 3,846.000 million tons, Total demand for recovery - Recycle paper in 2014 (E) tons.

Reuse Reduce Reuse Reduce paper in 2014 (E) 3,846.000 tons.

3. Light- Recycle weighting 3. Light weighting 4. Personalized corrugated Personalized =>4.Value added corrugated Be found Be available Be attractive => Value added Be found Be available Be attractive

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Hong Kong Hong Kong GDP growth in 2014 estimated 3 - 4% GDP growth 2014 estimated 3 - 4% market : Challenges in theincorrugated packaging Challenges in the corrugated packaging Labour costincrease (over 19%), paper market price : Labourwhile costincrease 19%), paper increase, exhcnage (over rate unstable and theprice increase, exhcnage ratewell unstable and the export market while continue to be softs (in Feburary export to be softs (in Feburary dro to 1140,market 94 USD continue hundred million fromwell 2071,32 USD dro toMillion 1140, in 94January) USD hundred million from 2071,32 USD Hundred Hundred Million in January)

Paper price report focus on White top liner, Pulp top price report White top liner, Pulp top liner,Paper Recycled liner focus and on Corrugating medium liner, Recycled liner and Corrugating medium (USD/ton) (USD/ton) •WHITE TOP LINER USD 665 •WHITE TOP LINER •RECYCLED LINER USD USD 550 665 •RECYCLED LINER •CORRUGATING MEDIUM USD USD 425 550 •CORRUGATING MEDIUM 425 •OCC price (USD/ton) USD USD 225-230 •OCC price (USD/ton) USD 225-230 The trend of large international player coming to TheCorrugated trend of large international player coming Indian market is likely to continue in the to market is likely toCorporation continue in the nextIndian few Corrugated years. As MeadWestvaco next fewand years.

As MeadWestvaco Corporation (NYSE: MWV) International paper are already in (NYSE: MWV) and International paper are already in India.

India.

New product and service product andasservice FruitsNew & Vegetables well as display boxes are in Fruits & Vegetables as well as display boxes are in demand. demand.

The opportunities The opportunities • Focus on domestic market • Focus domestic (half of 1,4on billion still livemarket in rural areas) (half ofbox 1,4 billion live in rural areas) • Traditional plants,still especially Traditional box plants, especially old• style management become obsolute style obsolute • The old need for management new products become and design • The need for new products and design o Product design to lower raw materials o Product design to lower raw materials and production costs production costs o Newand Printing technologies Newlabour Printing technologies • Shiftofrom intensive to automation Shift from labour intensive to automation to • increase productiity to increase productiity Paper price Paper price India India Indian Corrugating Industry is growing at around 6% Indianaligning Corrugating at overall around 6% annually with Industry the GDPis growing growth of annually aligning with the GDP growth overall Indonesia economy.

Total demand of corrugated case inofyour economy.

Totalordemand of corrugated case in your Indonesia country (Ton/year Sq m./year).

Approx. 40 Lakhs or Sq 40 Lakhs tonscountry per year(Ton/year Labour cost Rs.m./year).

6000/- perApprox. ton which is Total production of the corrugated industy in tons USD per year Labour Total 3.3 production corrugated industy approx.

100 per ton cost Rs. 6000/- per ton which is Indonesia million tonsofor the 6.6 billion sqm. Last year in approx. USD 100 per ton Indonesia 3.3 million tons or 6.6 billion sqm. Last year

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growth is 12%. Trend of the corrugated the same all - MIT helps to promote Food Industry (ready meal) for growth is 12%. Trend of the corrugated the same all - MIT helps to promote Food Industry (ready meal) for over the world less weight, less energy, demand on export. over the world less weight, less energy, demand on export. automated machines to increase quality and less - The 2 IR continue to boost good demand in F& B automated machines to increase quality and less - The 2 IR continue to boost good demand in F& B man power. industry. man power. industry.

The paper price tends to increase since the Negative Key Driver The paper price tends to increase since the Negative Key Driver beginning of 2014 and current market prices for test - Government tightens the foreign worker supply beginning of 2014 and current market prices for test - Government tightens the foreign worker supply liner between US$ 490 – US$ 517 per ton, while further with more increase in foreign worker levy and liner between US$ 490 – US$ 517 per ton, while further with more increase in foreign worker levy and medium about US$ 450 per ton. Business dropped reduce the number. These will have impact to local medium about US$ 450 per ton. Business dropped reduce the number. These will have impact to local 15-20% in Quarter 1 2014 but expected to moving up SME. 15-20% in Quarter 1 2014 but expected to moving up SME. in Q2, - European financial austerity measures will suppress in Q2, - European financial austerity measures will suppress demand. demand.

- Continuing Inflationary pressure will cause cost to - Continuing Inflationary pressure will cause cost to Malaysia drive up.

Malaysia drive up.

GDP growth forecaase 4,8% Total Demand 2014 113.100 tons down from 113.300 GDP growth forecaase 4,8% Total Demand 2014 113.100 tons down from 113.300 Capcity in 2014 1,210.000 tons while demand only tons in 2013.

Capcity in 2014 1,210.000 tons while demand only tons in 2013.

1.030.000 tons Paper Price Trend increase 1.030.000 tons Paper Price Trend increase Labour cost increase from US$ 150 to US$ 280 which Labour cost increase from US$ 150 to US$ 280 which fully imposed in 2014. fully imposed in 2014.

Many SME convertors invest their facilities with 3 or 4 Many SME convertors invest their facilities with 3 or 4 colors Flexo printers. Some convertors upgrade with colors Flexo printers. Some convertors upgrade with Corrugators Existing Corrugator expand their Corrugators Existing Corrugator expand their capacity by building new plants and upgrade their capacity by building new plants and upgrade their converting machineries as well. converting machineries as well.

Thailand Thailand Trend and Innovations Trend and Innovations Many MNC customers going for Regional Tender or The ongoing political unrest could delay forming of Many MNC customers going for Regional Tender or The ongoing political unrest could delay forming of Bidding for cost comparison and demanding for the new government and will consequently hit the Bidding for cost comparison and demanding for the new government and will consequently hit the Sustainability, CO2 footprint, HACCP or food safety, economy in 3 ways : Sustainability, CO2 footprint, HACCP or food safety, economy in 3 ways : Human Right and Environment care, besides ROHS Human Right and Environment care, besides ROHS and ISO certifications.

1) Delayed public investment and ISO certifications.

1) Delayed public investment 2) Derailed business and consumer sentiment 2) Derailed business and consumer sentiment This exercise has bring some cost pressure to local 3) Declined foreign confidence This exercise has bring some cost pressure to local 3) Declined foreign confidence box manufacturers who need to compete globally (investment & tourism) box manufacturers who need to compete globally (investment & tourism) in pricing especially high running SKUs, quality and in pricing especially high running SKUs, quality and technical support, despite the constraint in Logistic Exports will be the main driver of Thailand’s GDP technical support, despite the constraint in Logistic Exports will be the main driver of Thailand’s GDP only growth in 2014 (Export to grow 6%) only growth in 2014 (Export to grow 6%) Market situation Market situation • Food related : Overall demand is stable, Demand • Food related : Overall demand is stable, Demand growth for milk and strong frozen chicken export growth for milk and strong frozen chicken export • Electrical appliances Export growth especially • Electrical appliances Export growth especially export to Japan, Demand increase in summer and export to Japan, Demand increase in summer and sport events will help stimulate sales sport events will help stimulate sales • Consumer Products Growing export demand, • Consumer Products Growing export demand, domestic affected by politic & economy domestic affected by politic & economy Paper Price Paper Price White Top Liner 900-970 USD/ton, White Top Liner 900-970 USD/ton, Pulp Top Liner 675-725 USD/ton Pulp Top Liner 675-725 USD/ton Recycled Liner 600-640 USD/ton, Recycled Liner 600-640 USD/ton, Corrugating Medium 480-510 USD/ton Corrugating Medium 480-510 USD/ton Singapore Singapore

Green Trend & New Products Green Trend & New Products • Light weight trend (Paper) • Light weight trend (Paper) For 2014, GDP Singapore projected growth of 2-4% Double wall to single wall (Board) For 2014, GDP Singapore projected growth of 2-4% Double wall to single wall (Board) • RSC ---- Wrap around / Die cut • RSC ---- Wrap around / Die cut Positive Key Driver • Automation Positive Key Driver • Automation - Singapore excellent infrastructure will continue to • Shelf ready packaging (SRP) for export - Singapore excellent infrastructure will continue to • Shelf ready packaging (SRP) for export attract/retain high value manufacturing to ride on attract/retain high value manufacturing to ride on recovery in USA economy. recovery in USA economy.

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3 of this area occupay 70% of total production in 3 of this area occupay 70% of total production in china with advance machineries. North part of china with advance machineries. North part of china also get improved in packaging industry. This china also get improved in packaging industry. This region will become the new higlight of the region will become the new higlight of the packaging industry development. Certainly we packaging industry development. Certainly we understand there is still a margin between china and understand there is still a margin between china and develop countries. Therefore china packaigng develop countries. Therefore china packaigng federation will develop centre for : federation will develop centre for : • Green development • Green development • Innovation development • Innovation development • Harnmony development • Harnmony development In focus on technical innovation and accelaration In focus on technical innovation and accelaration as well as push forward the development. as well as push forward the development.

China need the world and the world also need china China need the world and the world also need china ACCA Work Plan for Years 2014/2015 ACCA Work Plan for Years 2014/2015 Tentatively fixed the next ACCA AGM on 18th Tentatively fixed the next ACCA AGM on 18th September 2014 to be held in Ho Chi Ming City, September 2014 to be held in Ho Chi Ming City, Vietnam.

Vietnam.

China China China's Packaging Industry is booming and the China's Packaging Industry is booming and the commodities economy has developed rapidly since commodities economy has developed rapidly since the country began its period of reform and opening the country began its period of reform and opening up. Last year, the industry’s total GDP exceeded RMB up. Last year, the industry’s total GDP exceeded RMB 1.3 billion - proof that it is undergoing a historical 1.3 billion - proof that it is undergoing a historical transformation. Today, China has over 30,000 paper transformation. Today, China has over 30,000 paper packaging enterprises and more than 4,500 packaging enterprises and more than 4,500 corrugated paper production lines. corrugated paper production lines.

The development of paper packaging accounted The development of paper packaging accounted for 36% of packaging production in 2013. The same for 36% of packaging production in 2013. The same year, total production of corrugated board was over year, total production of corrugated board was over 61 billion square meters, making China the leading 61 billion square meters, making China the leading country in corrugated board production. Chinese country in corrugated board production. Chinese paper packaging central in Jangzhu delta, paper packaging central in Jangzhu delta,

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During the meetin Mr. Frank as the Presideng of ACCA kindly invite all the members to attend the next WCO – ICCA meeting in Taiwan + Shanghai next April 015 (the the article of WCO ICCA 2015). Afterfnish the meeting all the attendants taking photos together.

The Gala dinner and Gift Exchange took plate at the The Golden Hall Chinese Restaurant, Regal Palace Hotel. All the countries member exchange gift each others. This event is good for exhange not just the gift but also the time to exchange information each other about the corrugated industry.

The participants also have a great time by having dinner and singing together, too.

The next day we visit the Sinocorrugated Dongguan which located just across our hotel the Regal Palace. The exhibition was a great success (read the Sino Corugated 2014 Success).

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Global Summit ICCA/WCO

The 2015 ICCA/WCO Global Summit will be held April 13 - 17, 2015 at the Grand Hyatt Taipei, Taiwan and the Mandarin Oriental Shanghai, China.

Amazing Topics • • •

The Global Economy Innovative Technology and Packaging Enduser on Expectation for Corrugated

TAIPEI

• •

Global Containerboard Outlook Printing Technology Advanced

Attractive Schedule 13th April Mon. Afternoon Evening

Taipei ICCA Board Meeting Board Dinner

14th April Tue. Mornin Lunch Afternoon Evening

Taipei Session 1

15th April Wed. Mornin Lunch Afternoon Evening

Session 2 (continue) Wellcome Dinner Taipei Session 2 Session 2 (continue) Gala Dinner

SHANGHAI 16th April Thu. Mornin Evening 17th April Fri. Morning Afternoon Evening

Shanghai Leave for Shanghai Shanghai Citi Tour Dinner Reception Shanghai Corr. Factory & Paper Mill Tour VIP tour of Sino Corr. 2015 Exhibition Huangpu River Dinner Cruise 69

OPPORTUNITIES IN THE CORRUGATED INDUSTRY Retailer Market In Erurope Private label is growing as it is 25 to 30% cheaper than national brands. For the last three years, private labels have experienced double-digit growth. Growing of retail is slow and more on out of town (15.4%) than in town centre (6.5%). Online sales growing slow now reach 4% (£10.9bn). In German Retail control by the big 5 (66.9% market share) and the consumer wants quality, but price is even more important - he rather prefers to spend less money on food and allocate more money to luxury goods and other purchases. Price sensitive market especially in the food sector. While in French Retail Trends Discount stores will continue to gain market share (+ 9.3 % between 2007 and 2012). Private labels will continue to strengthen at the expense of established brands (H1 sales for brands - 4.1% vs. +3.3% for private labels.

By the more and more control of the main player in the retail market, it is more easier for us the player in the corrugated industry to take the opportunity to be ggressively introduce the benefit of Retailers using our products. For example in New Zealand there are 7000 overs growers, therefore usually we sell the boxes to the re-seller stockist) not to the grower directlywhile in Australia Visyboard is very strong in the fruit boxes as they also buying fruit form grower, pack it and sell to the retailers.

Europe realize the opportunity for expanding the market to retailer, therefore FEFCO arrange cooperation with TESCO for cooperation between Retailer and FEFCO members. The event (workshop) arrange regularly since last year.

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In Asia we should also start to promote the benefit of corrugated to the retailer by actively arrange workshop, seminar with retailers and consumer goods to give them a real calculations the benefit of using corrugated as their logistic as well as display.

Corrugated box below has efficiency of 91 – 98% of utilization compare to Plastic only 66 to 81.5%.

A Ceres Logistics study commissioned by the Confederation of Paper Industries (CPI) and published in 2007 showed that for example standard large corrugated trays (600 x 400mm) outperform fixed height plastic trays in terms of space efficiency: utilisation of corrugated packaging is 91 to 98, in contrast to 66 to 81.5% with plastics.

Source: Study of the comperative cost of corrugated casses and reusable plastic container, 2007

Fruit & Vegetable Market Global shipping line Hamburg Süd said that Worldwide demand for high quality fruit and vegetables promises a sustained growth trend. Talk of economic recession is hardly going to play a role here.

Therefore they has invested in additional controlled atmosphere container units designed by Cargofresh to keep fruit fresh for longer in transit. The first three containers set sail from Brazil in December bound for Europe and Canada laden with papayas and mangoes. Hamburg Süd will take delivery of all the containers by the end of February. Cargofresh claims many food retailers,

ACCA World March 09, Edition

including Tesco and COOP are set to replace airfreight with sea transport, which mean saving on cost.

FEFCO encouraging the fruit industry to use corrugated by making brochures of the 7 rules of efficient packaging (which all are cover in the corrugated packaging). It has a very ‘eye cathing” image as well (image on the right)

•

Pineapple

•

Lemon

•

Avocdo

•

Papaya

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€ 470 juta American Latin, West Africa € 285 juta American Latin, South Africa € 155 juta American Latin, Africa € 50 juta American Latin, Africa, SEA

For wider exposure to the fruit market, this year FEFCO is taking part in Ftuit Logistica exbition with their 80 m2 stand. The FEFCO stand is designed to highlight the benefits of corrugated packaging and to show the efficiency solution for the packaging and distribution of fruit & vegetable products. FEFCO believes that corrugated board packaging is the perfect solution in terms of logistics, sustainability, and printability. Fruit Logistica is an opportunity to advertise these good qualities.

Lets now see the fruit market potential in our market. I will give a brief about China, Indonesia and India with the most population in our region. Asia has also become a focus for the world’s largest food retailers. Top companies such as Wall-Mart, Carrefour and Tesco have all been investing heavily in the region as demand for fresh fruit and vegetables enjoy strong growth. Local Asian chains are also expanding rapidly.

While in Australia Amcor has come with their new products for Fruit as well it patented under the name of SureFresh, Packaging for fresh products with hiimpact photo quality print to delivers high performance for the very moist conditions and extended distribution chains that are typical in exports to Asia. Beside Australia, New Zealand also mentioned that Asia is one of their most important export market. In 2007 New Zealand export more than US$ 525 million to Asia and the figure is increasing according to Mr. Andrew Fenton, the President of Horticulture New Zealand on his speech for Asiafruit Congress last year.

Asia is already home to established markets for fresh produce such as Thailand, Malaysia, Indonesia, Singapore, Hong Kong and Japan, as well as to new emerging markets such as Vietnam and Cambodia. But it is the rapid economic growth of China and India which continue to transform the region and arouse interest among suppliers from all over the world. The prospect of selling into two markets which together account for a quarter of the world’s population is hard to resist.

EU Fruit Market Consumption of fresh fruit in Eu (2005) 74.500.000 tons, which are Italy 19.3 %, Spain 12.7%, France 12%, German 8.4%, Greek 4%, UK 3.4 %, Poland 3.2 %, Portugese 2.3%, Hungary 2.2%, Austria 1.4%, Dutch 1%, Others 4.6%. The fruit in EU mainly sold thru supermarket/hypermarket (75 – 80%).

Total import of fruit in EU 23 million tons with value of € 18 billion. 8.6 million tons from development country or 35 – 40% - UNFORTUNATELLY ONLY PART OF PAPAYA FROM SE Asia.

• Bananas € 2.400 juta American Latin

INTERESTING INTERESTINGFACT: FACT:Did Didyou youknow knowininChina Chinathe thecolor colormeans means“good “goodlook”? look”?Washington Washington red reddelicious deliciousapples applesare arevery verypopuler populerChinese ChineseNew NewYear Yeargifts giftstotobring bringgood goodluck! luck!

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Asia: Imports of Fruits & Vegetables (US$ billion, deflated)

China and India are however also huge producers of fresh fruit and vegetables in their own right, and are looking to expand their own produce exports in future. China today sells some US$ 500 million worth of fresh produce on world markets, and is increasing its exports of apples, table grapes and citrus in particular.

Indonesia with production of 15 million tons of fruit and consumption per capita only 32,4 kg/ year compare to Germany 89 kg/year and Dutch 94 kg/year, France 135 kg/year.

The vast Chinese market for domestic and imported fruit is fueled by a population of 1.3 billion and a strong economy. Southern China is playing a key role, given its explosive increase in economic resources available for buying high-quality fruit. Within China’s broad range of wholesale markets, the Jiangnan Market in Guangzhou has become the main entry point and hub for virtually all fruit entering the Chinese market. It represented $2 billion in sales For many years the quality of Chinese fruit

production was inferior to foreign. But in recent years there has been a sharp increase in the operational side, post-harvest management has positioned the domestic fruit as a cheaper product that is more affordable to average consumers.

Imported fruit will remain the first purchase option for Chinese consumers because of its high quality, appearance and flavor. Also, in China fruit is often purchased as a gift. Thus, higher quality reflects directly back to the giver. There has been a steady increase in demand for imported goods. The following lists increases in the various types: • Bananas 23% • Longanberry 17% • Table grapes 14% • Citrus fruits 11% • Durian 11% • Papayas and melons 5% • Apples 5% Ranking of Countries exporting fruit to China : 1.Thailand 2.The Philippines 3.United States (43% of grape and apple, orange) 4.Vietnam 5.Chile (47% of apples and 53% of grape) 6.New Zealand An important point to consider is the trend of counterfeit packaging, logos and presentation formats from unscrupulous market players. They counterfeit what consumers are buying: a high quality, imported product. But their products are of a very different quality and condition.

Normally, fruit shipments from Chile take 30-35 days to arrive in Guangzhou. This is because fruit must be transferred from Hong Kong to Guangzhou via barge, if by sea, or via land routes. Therefore, if we from Asia can supply to China our lead time would be much shorter. And Import tariffs from ASEAN countries (Thailand, Vietnam and the Philippines) and Chile have lower rates than the United States.

“A Bite of Freshness: Love Gets In Your Heart”. That’s the Chinese translation for the poster (left) and the gift box (above). What a perfect way show your love…. with beautiful Washington apples!

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The run bike DIP DAP

is a brilliant first bike for child starting from age 3

The run bike DIP DAP is made from birch plywood, its high quality materials and well designed features.

• The surface is treated with child friendly linseed oil instead of varnish.

• Lightweight but strong. Weighs only 3.9 kg.

The seat is easily and infinitely adjustable between 34-45 cm.

Seat pad made from durable fabric and is removable for washing.

• Develop child vital balance and coordination skills before riding a two wheel bike. Safe approach to teaching young children to ride.

• Develops child confidence and independence.

On a run bike children start off walking the bike forward, then transition to sitting and walking, then sitting and running, and finally gliding and picking their feet off the ground. This process can take a day or two or a few months depending on the age and readiness of the child. However, it is a FUN and EASY process and at the same time develops your child of balance and coordination skills.

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Corrugated News

Oji Holdings cleared to acquire CHH Pulp & Paper Japan’s Oji Holdings Corp has been granted antitrust approval to acquire Carter Holt Harvey’s pulp, paper and packaging businesses from billionaire Graeme Hart. The $1.04 billion deal will be one of the largest single Japanese investments in the New Zealand economy. Tokyo Stock Exchange-listed packaging giant Oji will take a 60 percent share of CHH’s PPP assets, comprising some of New Zealand’s largest industrial energy and forest products users, the Tasman and Kinleith pulp and paper mills, and a large Australasian packaging enterprise. Oji already owns the Pan Pac pulp and paper mill, near Napier CHINESE IMPORTS EXPECTED TO DECLINE Despite consistent growth of recovered paper demand for over a decade, Chinese imports dropped by about 1 million tonnes in 2013. Imports are expected to decline gradually through 2018 due to slowing economic growth, sluggish paper and board demand, new government regulations and limited supply in the exporting regions. The real Chinese paper collection rate was estimated to have reached 67 per cent in 2013, with certain regions reaching close to 90 per cent. Therefore, the domestic collection expansion will be limited and China will still continue to import a large amount of recovered paper over the next five years.

China’s Paper and Board Exports up 19.3% the First 11 Months of 2013 In the first 11 months of 2013, China witnessed increases in import and export volumes as well as the prices of paper and paperboards . According to customs statistics, from January to November 2013, China exported 5.137 million tons of paper and paperboards (not cut to shape), up 19.3% year-on-year, with a total value of US$6.16 billion, up 19.2%; of which newsprint accounted for 78,000 tons, a soar of 21.8 times; kraft paper accounted for 154,000 tons, an increase of 1.1 times; export of inorganic coated paper was 3.106 million tons, up 10.8%; export ofcorrugated paper was 48,000 tons, up 58.5%; and export of coated paper export was 3.106 million tons, an increase of 10.8%. export of coated paper export was 3.106 million tons, an increase of 10.8%. Of the total export of paper and paperboards, foreign-invested enterprises accounted for 3.595 million tons, an increase of 12.9%, of which inorganic coated paper was 2.326 million tons, up 6.7% and kraft paper was 78,000 tons, accounted for 50.9% of the kraft paper exported by China.

Thai Container installed Conprinta Pre-print CONPRINTA with over 30 years of experience in flexographic printing, machine engineering and the corrugated industry started with the installation of the latest „CONPRINTA IMD 2012“ system at Thai Containers Group, Patumthani Plant near Bangkok. Thai Containers Group Co., Ltd. is the largest corrugated containers manufacturer in Southeast Asia with 14 corrugated plant locations inside Thailand and over 5 operations throughout the region.

Corrugated Exhibition 3 – 6 September 2014 INDOPLAS, INDOPACK and INDOPRINT 2014 Jakarta International Expo, Kemayoran (Jakarta)

10 – 12 March 2015 CCE International Munich Trade Fair Centre

10 – 11 September 2014 Pulp and Paper Indonesia co located with CORRUGATED ASIA 2014 & Tissue Asia – Indonesia 2014 Jakarta International Expo, Kemayoran (Jakarta)

14 – 17 April 2015 SINOCORRUGATED 2015 Shanghai New International Expo Center, Shanghai, China

25 – 28 September 2014 INTER CORRUGATED EXPO 2014 Jakarta Convention Centre, Senayan – Indonesia

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April 13 - 17, 2015 GLOBAL SUMMIT ACCA/WCO 2015 Grand Hyatt Taipei, Taiwan and the Mandarin Oriental Shanghai

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

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Tag & Label Digital Printing Envelopes Prepress

WHAT WE DO FOR YOU Your membership generates a solid return on investment, paying for itself many times over through the benefits you receive. You’ll find unmatched resources, education, information, and networking opportunities FPA Member will get value in our offering that include : 1.

2.

3.

4.

5.

Conference, Seminar and Networking Free subscriptioin to FPA Publication Attend Seminar for free (1 x a year) Special price on all Training Course Support on expertise

just click www.firstpackagingasia.com

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www.firstpackagingasia.com

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