Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 Economic Outlook: The good, the bad and the ugly
Andrea Boltho, Emeritus Fellow, Magdalen College, University of Oxford, UK 09:30 – 09:55 The world’s economic outlook at present is, inevitably, clouded. Trump’s economic policies are, as yet, unknown. Should he stick to some of the pronouncements he made during the electoral campaign (huge tax cuts for richer households, imposition of tariffs on China and Mexico, drastic reductions in the immigrant population, etc.), he may well risk a trade war abroad and, possibly, even a recession at home. Should he behave more presidentially (and also accept that Congress may veto some of his more extreme policies), then the US economy may not be unduly affected by the change in the White House. Indeed, it could even benefit from corporate tax cuts and a large programme of infrastructure investment. Further uncertainties relate to the unravelling of the Brexit process and, more generally, to the rise of populism in Europe. Elections will be held this year in the Netherlands, France, Germany and, possibly, Italy. Successes for populist politicians such as Marine Le Pen, Geert Wilders or Beppe Grillo seem unlikely at present, but then the same was said about Brexit and Trump. Forecasts for the world economy are at present clearly surrounded by an unprecedented amount of uncertainty. Hopefully, by the time of the Conference, some, at least, of these uncertainties will have been lifted.
The circular economy and hygiene products: how it’s all connected Kersti Strandqvist, Senior VP Sustainability, SCA, Sweden 09:55 – 10:20 Today’s linear “take, make, dispose” economic model relies on large quantities of cheap, easily accessible materials and energy, and is a model that is reaching its physical limits. Dame Ellen MacArthur of the Ellen MacArthur Foundation has outlined the concept of the Circular economy as the attractive and viable alternative to the linear economy. A circular economy is a continuous positive development cycle that preserves and enhances natural capital, optimizes resource yields, and minimizes system risks by managing finite stocks and renewable flows. How is the model of a circular economy relevant for a Hygiene business model? With a life cycle perspective, it soon becomes obvious that Tissue and Personal Care products makers meet both opportunities and challenges. Renewable raw material is clearly on the pro side, whereas the pulp, paper and tissue making processes will meet challenges and needs innovative re-thinking. Customer and consumer waste has to be addressed both by policy makers and the manufacturers. Unconventional partnerships will open up for finding new solutions and will inspire new business models. The Circular society is here to stay; this is a business opportunity that will require creativity, innovative thinking and new partnerships and business models.
Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 Managing for sustainable growth: as a company, and as an industry Luigi Lazzareschi, CEO, Sofidel Group, Italy 10:20 – 10:45 At a time of scarcity of natural resources and an ever-increasing attention paid to environmental and social impacts, Sofidel believes that businesses have the responsibility of playing a vital role not only in terms of production and distribution of goods and services, but also in guaranteeing long-term social and environmental advantages for stakeholders at all stages of the value chain. In this light, Sofidel places strategic importance on sustainability for growth and development and through this commitment aims at increasing its competiveness in the mid-to long-term and contributing to an improvement in the quality of life of all its employees, the communities in which it works and the world at large. Well aware of the fact that, if we want to build a positive future, it’s time for governments, businesses and civil society to join forces for a multilateral, efficient and brave action. Each of us, in our different fields and depending on our different roles, must take on new and broader responsibilities.
Accelerating globalisation in the tissue business via new players and growing intercontinental trade flows Esko Uutela, Principal-Tissue, RISI, Germany 10:45 – 11:10 The global tissue business has shown its growing dynamics in the past few years. The industry reaches new peaks year after year with an average annual growth rate of 3.5% per year. This very positive development has been noted by many investors, who are not coming only from the tissue or hygienic product manufacture, but also from other branches in the pulp and paper business, as well as totally new players having interest to diversify and enter the tissue sector. Tissue belongs to the least capital intensive segments in the pulp and paper industry, which has facilitated also smaller companies to consider investments in tissue. The new dynamics of the tissue business has changed global competitive environment very drastically in the recent years. Not only new suppliers from different continents have emerged, but also untraditional trade flows have developed. Today, China is the largest tissue exporter globally, after earlier dominance by Italy. New investments continue, driven by both existing and new players, some of which have grown very quickly with aggressive expansion plans by companies with solid financial background. Indonesia and Turkey also belong to the largest tissue exporters today, which was not the case still 10 years ago. New investments continue, driven by both existing and new players, some of which have grown very quickly with aggressive expansion plans by companies with solid financial resources behind. The competitive environment is tough and the industry structures are changing quickly so that we cannot claim dynamics is missing from the global tissue business today! But some new risk factors have recently emerged, such as the Brexit: what could it mean for the European tissue business and some exporters, such as Turkey? And the second risk is what will happen to free tissue trading with increasing protectionism and possible penalty duties by new administrations, that of Trump in particular? Will tissue exports to the USA be drastically cut and what could this mean? These are some additional topics discussed in this presentation.
Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 Global Tissue Markets in 2017 and beyond: realities, challenges and opportunities in the increasingly-complex demand side of the marketplace Svetlana Uduslivaia, Head of Industry Research, Euromonitor International, USA 13:15 – 13:40 Tissue products in the developed markets continue to face a number of challenges, from saturation and slow population growth that affect retail sales to structural changes that impact the away-from-home channels. At the same time, the emerging and developing regions offer a significant potential for further expansion. With estimated unmet global tissue potential at well over 15 million tonnes in retail alone, the global marketplace offers a solid platform for the future industry growth. However, in the increasingly complex and diverse world of consumer and away-from-home tissue marketplace, the realities, challenges and opportunities for growth vary from market to market and require careful assessment on regional and country level to ensure product development, marketing and distribution strategies adequately reflect the needs and preferences of the changing at-home consumer and away-from-home user. • This Euromonitor presentation will reveal the key global tissue trends and the fastest growing tissue markets, including the expected performance through 2021. The presentation will discuss key demand drivers that shape current and expected performance. • The presentation will contrast markets in Western Europe and Eastern Europe, with analysis of demand drivers as well as category and product trends across retail and institutional channels • The presentation will take a look at China – currently the world largest tissue market, assessing risks and opportunities for the future industry growth in the country • Last but not least, the presentation will review trends in private label. PL continues to play a significant role in the developed markets, and the presentation will contrast the state of private label in North America and Western Europe. Additionally, comments will be made concerning the recent trend of private label gaining traction in some of the key developing tissue markets, such as Russia and Brazil.
Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 The Retailer’s Power: a major buyer’s view on market developments Patrick Boateng, Senior Buyer for Tissue Paper Products, Major Supermarket, USA 13:40 – 14:05 The retail environment is going through a period of rapid change. The landscape has become more incredibly competitive than ever, as there is no single formula to serve the specific needs of every customer. This presentation will focus on how retailers are navigating the changing landscape and engaging the customer through actions such as: • Using size and capacity to influence actions in other channels to create value for the customer. • Strengthening digital capabilities to increase efficiency and convenience. • Improving transparency of supply chain. This speech will look at how these changing landscapes, and the actions mentioned above, are impacting the tissue paper products category.
Finished Product Trends: multi-solutions for multi-shoppers
Fernanda Accorsi, Trade Marketing and Retail Expert, FA RETAIL – Content & Solution, Spain 14:05 – 14:30 Multi-channel strategies are crucial because the shopper is multi-tasking, they purchase online and offline at the same time, using other shopper’s previous references and experiences. Being loyal to a brand does not negate the shopper´s desire of trying another brand, or the possibility of combining different options. The reality is that a variety of products and brands can be complementary to each other to achieve 100% of the target satisfaction. The level of customization is more accurate than ever, and each company has opportunities in the market. Every culture, channel, retail chain, and even every single store requires a very specific and customized portfolio. We will discuss the best practices and solutions for brands to identify and manage their roles in the segment.
Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 User preferences and scientific studies results converge: paper towels are a much better choice than hand dryers Roberto Berardi, Chairman, European Tissue Symposium, Belgium 15:00 – 15:25
Studies were done in the past about declared Users preference for hand drying systems. But which preference are Consumers demonstrating through their actual behaviour? An observational study on over 4.000 users run at ISSA Interclean in May 2016 shows that most Users prefer Paper Towels, if they are given the choice. Structured scheme of the studies supported by ETS during the last 9 years: hands washing and drying hygiene doesn’t just consider the removal of microbes from the hands, but also the avoidance of contamination of the washroom surfaces and the air. The latest University of Westminster study covers in particular the risk of long lasting aerosolization of viruses when Jet Air Dryers are used. What useful information can Tissue Companies find in the recently created European Tissue Symposium Website?
Softness: the holy grail of tissue products and why it can help you Wes McConnell, CEO, Frameworxs Analytics, USA 15:25 – 15:50
Conference Abstracts
SENIOR MANAGEMENT SYMPOSIUM - 10 APRIL 2017 Parent Roll Traders: creating value in the tissue supply chain Scott Griffin, Director Tissue Sales, Central National Gottesman, USA 15:50 – 16:15 In the major tissue markets traders have long played a role in connecting suppliers and converters. However, from an industry perspective the trade is a relatively opaque one. There is very little publicly available data on pricing, grades, sales destinations and the like. What exact role have traders played in order to add value and survive in a dynamic tissue market? How is the role of traders changing as new entrants and new products come into the marketplace? In addition to covering these topics, this presentation will attempt to: • Provide an overview of the parent tissue roll trading business by major geographic region including Asia, Europe and North America. • And also discuss the various areas of value-added services that traders provide including Financial, Credit, Logistics, Technical and traditional Sales and Marketing. • Strategies that manufacturers use to optimize the value of their parent roll business. • Present examples in the day-to-day trade that help the audience better understand the complexity and role of the trader. • Review current trends impacting the market and how demands on the parent roll trader are changing.
Pulp: 70% of your tissue costs, but what’s happening in the pulp market? Pierre Bach, Research Manager, Hawkins Wright, UK 16:15 – 16:40 Growth in global paper and board markets may look anaemic but there remains many positive trends in emerging markets and in both tissue and packaging grades. Positive dynamics in the tissue sector continue to fuel investments in market pulp supply and increase demand for virgin fibre. In the first part of his presentation, Pierre will summarize key developments in global paper and board markets, with a particular focus on the tissue sector. He will then present the outlook for market pulp, focusing on the main drivers underpinning demand and supply growth in the next five year-period. In conclusion, Pierre will discuss future tissue furnish trends, demonstrating how the sector will continue to play vital role for market pulp demand growth, and vice-versa.