People & Packaging

Issue No. 6

Packaging updates from Smurfit Kappa

Counter top retail ready packaging

other Just an in box e wall th

Sustainable Packaging
Sustainable packaging suits Nestl

TeChNiCal exPerTiSe

i N N o v aT i o N

ProduCTS

S u S Ta i N a b i l i T y

Sustainability

Sustainability

The green face of packaging: sustainability included as standard

Packaging is taking on a new look with the introduction of a uniquely integrated supply chain. Smurfit Kappas European sites are working towards supplying certified sustainable packaging as standard, supporting international brand owners environmental positioning.
Smurfit Kappa has long been at the forefront of the packaging industrys approach to truly understanding sustainability and its corporate responsibility to its customers and the consumer. As one of the worlds leading manufacturers of paper based packaging, Smurfit Kappa has started a far-reaching programme of Chain of Custody certification of its European paper production and corrugated plants. Leading the market in this area, our aim is to deliver only certified sustainable boxes across Europe.

Closer to nature
Arla Foods, one of the worlds leading producers of natural dairy products, has chosen Smurfit Kappas sustainable packaging for its Dutch Nijkerk organisation in line with its high profile Closer to Nature multi-national sustainability programme. Smurfit Kappa is the first European packaging manufacturer to supply FSC-certified secondary packaging for Arlas dairy products. The brand strategies of international firms such as Arla can be enhanced by choosing Smurfit Kappa as a supplier. Due to investment in a Europe wide Chain of Custody, Smurfit Kappa has a cohesive commitment to sustainability and offers customer service that is in harmony with the customers own positioning.

Contents
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The green face of packaging

A transparent and audited process

Smurfit Kappa believe that Chain of Custody certification is important for its customers by offering a transparent and audited means of guaranteeing that all material used through the paper and board production process is independently certified - from the forest, the recovered paper and to the end consumer, including all successive stages of processing, transformation, manufacturing and distribution of paper based packaging. A successful programme of in-depth and highly demanding auditing and certification of all of Smurfit Kappas European virgin and recycled paper mills has already been completed, and its European corrugated plants are now in the process of certification. Plants in Belgium, Netherlands, Germany and the UK have all completed their certification and the remaining plants will be complete towards the end of 2012.

Swimmingly good packaging

Highland Farms has chosen Smurfit Kappa UK as its sole supplier of packaging for its unique approach to sustainability and the environment. Highland Farms is an award-winning producer of high quality smoked salmon, which promotes itself as a responsible processor - sourcing its fish exclusively from sustainable farms. Using packaging featuring Smurfit Kappas FSC certification on all of its secondary packaging means that Highland Farms can further assure its customers of the provenance of its products.

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Sustainable packaging suits Nestl

Chain of Custody certification illustrates how international brand strategies can be enhanced by supplier cooperation

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Awards

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Packaging that adds value

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Focus on pharmaceuticals

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Pan-European hygiene standards

Our aim is to deliver only certified sustainable boxes across Europe

Chain of Custody is far more to Smurfit Kappa than just being able to apply logos to products from the Forestry Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC). Smurfit Kappa deliver a credible guarantee to its customers and supports them in front of consumers. This is because, wherever Smurfit Kappa packaging is purchased within Europe it will only use materials originating from wellmanaged forests, controlled sources, reclaimed materials, or a mixture of these.

David Gudden, Key Account Manager for Smurfit Kappa TWINCORR in the Netherlands comments; Arla Foods commitment to sustainability is driving its consumer relationships, creating a strong and long-lasting environmental image that is key to consumer confidence in its products. We are proud to be able to support Arla and enhance their reputation by being its first FSC certified European, corrugated packaging supplier.

For Highland Farms biggest customers, sustainability is a key part of the relationship and covers all aspects of Aquaculture processing and packaging

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Performance packaging

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Investments

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Focus on heavy duty products 02

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European approach

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Sustainability

Awards

Sustainable packaging suits Nestl to a SPECIAL. T

Smurfit Kappa Swisswell, in coordination with the Smurfit Kappa Development Centre, came up with a highly sustainable end-toend packaging concept for the launch of a tea capsule system called SPECIAL.T by Nestl. Based on the principle that the main corrugated item is used twice - for two different journeys - Smurfit Kappa and Nestl reduced the packaging used by 40%.
The new premium tea brand called SPECIAL.T by Nestl is based on a capsule system and a dedicated machine, intended to do the same for the tea market as Nespresso has done for coffee. Simply place a capsule in the machine, press the button and the tea machine automatically selects the right water temperature and infusion time for the perfect cup of tea.

Unilever supplier award sustainability winner

Smurfit Kappa has had its approach to sustainability recognised by Unilever through their Partner to Win supplier awards 2010.
Smurfit Kappa won the Winning through Sustainability category. This recognises suppliers who have helped Unilever to create competitive supply chains delivering tangible benefits to Unilevers brands, consumers or customers. It rewards those who are making positive contributions to the environment, to social or economic development. Unilever commented: Smurfit Kappas end to end approach to sustainable paper packaging has made them the leader in the field. They look at the whole process from raw material sourcing through to the recyclability of the consumer pack, as well as assisting Unilever in the development of our Paper and Board policy. One example of Smurfit Kappas focus on sustainable packaging is the newly developed Shopper Pack developed for Unilevers Household cleaning category in Europe. The packaging looks more appealing on shelf and has enabled Unilever to remove around 140 tons of coated polyester teartape, greatly improving its recyclability. And all of that at lower cost to the consumer.

40% reduction in packaging

The tea capsules, made of recycled aluminium, are filled with the premium tea blend on a high-speed production line at Nestls production plant in Orbe, Switzerland. The line fills one tea blend at a time, and 16 boxes, each containing 10 capsules, are automatically packed into a corrugated wrap which is sent to the distribution centre. At the distribution centre, the corrugated wrap containing one blend is unpacked and the 10-capsule boxes placed into a pick & pack system. When a customer places an order for a selection of tea blends, the original corrugated wrap is re-packed with the customers order and used for the onward journey to the customers home. At the beginning of the project it had been assumed that two corrugated packs would be needed, one for each step of the journey. However, by designing an end to end concept that allowed one pack to be re-used in most cases, Smurfit Kappa and Nestl reduced the packaging consumption by 40%. This has delivered significant environmental and cost benefits.

A sustainable and innovative machine pack

In the SPECIAL.T by Nestl Welcome Pack, the customer receives his tea machine together with a selection of tea blends, a filter that purifies the water to insert into the machine and 2 sets of a cup and a saucer. Therefore the welcome pack has to provide high security and protection, but also remain easy to open. To fulfil these requirements Smurfit Kappa Swisswell developed a totally new concept for the shipping box. The box does not use any plastic reinforcement, another environmental benefit, and once closed with a newly developed safe lock flap, cannot be opened without visible damage. This provides reassurance to the customer that the pack has not been opened already. The customer opens the Welcome Pack using an innovative perforation, which separates the cover from the bottom allowing the machine to be easily taken out of the box. Jean-Pascal Templier, European Procurement Category Manager for Nestl comments Smurfit Kappa demonstrated the ability to provide a range of innovative solutions. Working together with our R&D centre from Orbe, Smurfit Kappa developed the best solution for us, implementing for the first time an end to end concept that uses 40% less packaging. This is a success story that we want to replicate in other business areas.

Sustainable Development Report 2010 released

WC design wins packaging award

Smurfit Kappa Sweden has won an IF Packaging Award for a stylish, ergonomic and environmentallysmart packaging solution for the humble WC. Judges awarded the Smurfit Kappa design the top spot in the Sales Packaging category for the latest bathroom range from Villeroy & Boch Gustavsberg. The high-quality printing effectively highlights the companys clean design Nautic series. The packaging also minimises environmental impact with a weight reduction of 86%, is easier to carry and, after installation, there are only two types of material for recycling.

Best ever results in EFIA awards

We are proud to announce the release of our Sustainable Development Report 2010. In this report Smurfit Kappa introduces a number of important long term sustainable commitments on indicators such as CO2, water and Chain of Custody. This report, according to Global Reporting Initiative (GRI) standards, is at level A+, which indicates the highest level of transparency in reporting. The report is available for download at www.smurfitkappa.com Smurfit Kappa Chelmsford in the UK scooped six awards at the prestigious EFIA, European Flexographic Industry Association Awards this year. With three gold and three highly commended awards this reaffirms their position as innovation leaders in the European print market for 2011. The Gold Awards were in the Post Print Coated Process category, the Post Print Coated Line-Screen category and the Uncoated LineScreen category for Post Print.

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Innovation

Innovation

Countertop RRP: small is beautiful

A stunning new display from Smurfit Kappa Mantova, Italy, is taking the cosmetics sector by storm.
Designed for use on a counter where space is at a premium, the high quality unit carries branding and graphics, printed on the inside of the transit pack that opens out to create a high-fashion display unit. It is designed to be easy to open and it creates a large branded display area from a small compact unit, with attention grabbing wings conveying the brand message. The brief called for a stylish display, with the efficient use of materials that was easy and fast to open. The result is Italian design at its very best.

Packaging that adds value

As brands fight for shelf presence, marketers are relying more heavily on packaging as part of their marketing mix, to differentiate their products from competitors.

Secondary packaging, which is known as Retail Ready Packaging or RRP, plays an important role by creating impact at the point of purchase. A good retail ready pack can offer a wide range of benefits to marketers, but what makes a successful RRP and how can you be sure yours is working as well as it should? Smurfit Kappa is a leading innovator in RRP, and has developed a range of methodologies to analyse and understand what makes it work. Arco Berkenbosch, VP Research & Development, Smurfit Kappa Corrugated Division explains, The shelf can be a very lonely place for a brand, when a fixture is half shopped and the primary packaging is underperforming, why should a consumer notice your product over the competition? The answer is simple, they will not, unless you do something innovative to change the situation, thats what good packaging does. There are many things RRP can do to breathe life back into primary products. Firstly, working with our customers, we consider what the key features are of the primary product. This analysis includes the size of the product and does it create a facing itself? That is, does it have sufficient surface area to carry the brand flag and to convey the brand personality? It is important to consider also how physically stable the product is and whether it requires support from other packs to minimise slumping when the fixture is half shopped.

Unique knowledge of European markets and retailers

We always remind customers not to forget the inside of the pack, it is an easy trap to fall into, thinking that only the exterior of the RRP will attract the consumer. Simply using a white or light coloured inner liner draws the consumers eye into the fixture when it is half shopped or at the back of the shelf and printing a brand message or call to action may also be effective. If the primary product is small or unusually shaped and cannot successfully carry effective branding the design of the RRP becomes critical to your campaign. Smurfit Kappas designers also consider how functionally efficient your RRP will be, how easy it is to open and prepare for shelf, and ensure it will protect the product in the supply chain.

Selling straight from the box

Smurfit Kappa Herzberger, Germany, has introduced an innovative hybrid RRP solution named Atlas Plus that combines a solid board liner with a corrugated outer. Ideally suited for a wide range of foodstuffs, it offers the best of both worlds combining high quality graphics and premium finishes with the light weight and flexibility of corrugated. We can also supply the machinery to erect the Atlas Plus packaging providing a totally integrated solution.

Atlas Plus

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Market Insight

Market Insight

Approach to market sectors

Knowing what our customers want and the demands of their sectors is integral to the success of Smurfit Kappa a success we can pass on to you.

As Europes leader in corrugated packaging we have a proven record of identifying key opportunity areas for our customers and using innovative packaging solutions to provide the results our customers need. Our approach is to make our size and geographical reach matter. We combine the sector-specific expertise of staff from across the company in a large and easily accessible knowledge pool. One such example is the use of our online design database InnoBook, where Smurfit Kappa designers across the globe share information and design expertise. This saves our customers both time and money by providing easily accessible and extensive design resources, which can be tailored precisely to their product and markets.

Pan-European hygiene standards suit PepsiCo

Eighteen of Smurfit Kappas European corrugated plants have achieved the highest certification of their hygiene standards to enable the supply of food-contact packaging in accordance with global giant, PepsiCos exacting standards.
The five-year programme of certification, at all eighteen of the plants, involved stringent testing and internal auditing of Smurfit Kappas procedures to British Retail Consortium (BRC)/Institute Of Packaging (IOP) standard. At fifteen of those plants, practical processes were also audited to the American Institute of Bakers (AIB) GMP certification for Good Manufacturing Practice. The BRC Global Standards are composed of four industryleading Technical Standards that specify requirements to be met by Smurfit Kappa to enable the production, packaging, storage and distribution of safe food and consumer products. The Standards are recognised worldwide and are specified by growing numbers of retailers and branded manufacturers in the EU, North America and further afield. Certification to a Global Standard, reassures PepsiCo of the capability and competence of Smurfit Kappa, and reduces the need for PepsiCo to carry out their own audits. Scoring well on the AIB GMP Inspection confirms that Smurfit Kappa is committed to doing all it can to provide clean, safe products. Compliance for both certifications is continuously monitored and any failings can result in certification being withdrawn. Robin Greenwood, PepsiCos Packaging Vendor Assurance Manager says; When consumers open a pack, their expectations are very high and we must ensure we do everything possible to meet them. Smurfit Kappa plays a major role in helping us to deliver this by implementing the PepsiCo quality and food safety standards in every plant, every single day.

Focus on pharmaceuticals
We supply packaging to 80% of Europes top pharmaceutical companies, providing us with a unique overview of this market sector.
As part of our commitment to this sector, Smurfit Kappa holds high-level focus groups with Smurfit Kappa delegates hand-picked, for their knowledge of the pharmaceuticals industry, in order to discuss and truly appreciate the main issues impacting the industry today. At the most recent focus group 32 Smurfit Kappa delegates from 18 countries and across various disciplines met at the European Development Centre in Hoogeveen, the Netherlands. Here they discussed key issues, including the patent cliff, the threat of generic drugs, and the everincreasing risk of counterfeiting. Many big-selling drugs are set to go off-patent between 2011 and 2013, and with ongoing competition from generic drug manufacturers, Smurfit Kappa understands the importance of working with manufacturers to provide a strong presence for their brand. Similarly, counterfeiting is an increasingly worrying issue in the pharmaceuticals industry. The infiltration of counterfeit drugs onto the market can have a significant impact on sales of the genuine article, but of course, ultimately counterfeiting can affect peoples lives. With the general public often unable to distinguish between real and fake products, this can unfortunately cause longterm damage to manufacturers valuable brands. Combining our in-depth research and knowledge of the pharmaceutical industry with our expertise and InnoTools such as InnoBook, Smurfit Kappa can make a real difference.

Through this heightened understanding, we can devise ways in which to support our customers, whether its helping them overcome threats or seizing opportunities

Ian Naylor, Smurfit Kappa European Account Manager, comments;

Good Manufacturing Practice is very important to everyone at Smurfit Kappa. We operate a wide ranging Pan-European education programme for our personnel designed to identify root causes, not just symptoms to ensure that we comply with EU regulation, and most importantly that we exceed our customers high expectations.

In the next edition of People and Packaging, we will be focusing on the key issues affecting the dairy sector

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Technical Expertise

Technical Expertise

Paper to Box developments

In line with global sustainability developments at Smurfit Kappa, Paper to Box has been updated to include new parameters to reflect CO2 footprint as criteria for performance. As well as providing sustainability, the Paper to Box programme provides complete assurance that we will use the optimal board composition for your package. It does this by physical modelling and utilising an extensive and regularly updated board performance benchmark module of all materials available, comparing performance against all relevant parameters.

T-Flute - changing the DNA of packaging

Smurfit Kappa UK has launched a new microflute board using an innovative, patented manufacturing process. An alternative to carton board it is one of the slimmest microflute boards produced by Smurfit Kappa. T-Flute delivers a super light weighting opportunity using FSC certified, 100% recyclable material. Uniquely, this new board allows designers to incorporate curves into their packaging and can combine the regular geometry of a standard pack with the curves of a tube in a single pack with a litho-quality print finish.

Performance packaging
Performance packaging is a phrase that many people use, but few have an in depth understanding of. As an integrated producer, controlling all stages of the packaging production process, from fibre production to the finished pack on the shelf, Smurfit Kappa are the originators of the science behind performance packaging.

Smurfit Kappa believes that understanding the customers business chain and how packaging fits into that chain are the core requirements of producing the correct technical specification of packaging. Our aim is to reduce the amount of non-functional raw material to create packaging that is strong, protective and neither too light nor too heavy, producing the optimum performance packaging. Two programmes that have been developed over ten years by Smurfit Kappa, are central to this understanding, Pack Expert and Paper to Box. Pack Expert is used to calculate the stresses and loads that your packaging will experience in the supply chain and calculates the optimum strength of the board required. Paper to Box is then employed to select the most suitable grades, mixes of paper and flute combinations necessary to create the correct corrugated board. The resulting specification guarantees a cost effective pack that is fit-for-purpose. The optimal board design, considering the merits of effective material consumption, high or low flute and the resulting performance per Euro invested. The best liner combination to reduce the outward failure of load-bearing walls. The optimal flute paper and flute height to maintain the bending resistance. The choice of liner type: specifying recycled fibres as standard, or virgin fibres for severe conditions such as where moisture is present or for long-term loading. Like many aspects of design, there is no single best solution; performance packaging depends on local conditions and understanding the customers needs. Smurfit Kappa has over ten years experience of applying performance packaging, more than any other manufacturer.

Over ten years experience of applying performance packaging

Corrugated board has been around for nearly 140 years but is comparable with many of todays high-tech materials used in the aerospace, automotive and construction industries. Like them, it is a high performance, lightweight material that has exceptional strength, belying the lightweight, flexible component it is made from. The key to designing performance packaging is four-fold:

Benchmarking over fifteen billion packages each year

This suite of programmes is based on an in depth and scientific knowledge of how packaging behaves physically in the supply chain and is calibrated using a benchmark of over fifteen billion packages each

Benchmarking over 15 billion packages each year

year across all market segments. Among other things, they take into account environmental conditions, personnel skills in the supply chain, the sustainability benefits of virgin or recycled fibres, and what effect liner combinations and flute designs may have on the packaging.

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Investment

Investment

High-tech mill investments

Production has restarted at Smurfit Kappas mill in Hoya, Germany, of light weight high quality paper made from recycled fibre, concluding a 45 million plant investment.

With a production capacity of 420,000 tonnes envisaged by

Smurfit Kappa invests in quality and efficiency ... worldwide

When it comes to investment, Smurfit Kappa, Europes leader in corrugated packaging, provides state-of-the-art solutions.
CEO Corrugated Division Roberto Villaquiran is excited by the prospect of their latest programme. Our 2011 investment package of 50 million further enhances our facilities in Austria, Germany, Ireland, Italy, Poland, Sweden, UK and in Mexico. Not only are we increasing our print capability having commissioned the first seven colour offline printer at Schneverdingen, Germany - but we are investing in technology to deliver colour matching and management across Europe. Smurfit Kappas latest investment programme is impressive, boasting nine of the very latest Flexo Folder Gluers ranging four to six colours according to the market needs. Walter De Smedt, VP Technical & Operational Excellence comments The programme is well underway having already installed a BGM 1225, six colour in Delitsch, Germany, a five colour Martin 924 in Asti, Italy and a four colour Martin 618 in Northampton, UK. The machines are all well equipped with the latest technology, providing superior die cut registration, together with detection systems that not only signal defects but track and remove non-conforming products. Smurfit Kappa has also extended its offering in Poland, with the recent unveiling of the Pruszkow plant in the presence of key customers. A significant milestone in Smurfit Kappas Poland offering, the plant is the first in the country to be both BRC (British Retail Consortium) and AIB (American Institute of Bakers) certified for food safety. Specialising in FMCG businesses, the plant has an annual capacity of 100 million square metres of corrugated packaging and has been developed to service the biggest and most demanding customers in the region. Roberto Villaquiran adds We have to push the boundaries as part of our culture to drive for continuous improvement. Its not just about remaining competitive, but also about adding value for our customers. As well as increasing efficiency, our investment is geared towards achieving outstanding print and consistent colour. We understand the importance of colour to brand identity for our customers, the retailers and the consumer - its the first thing we recognise when we go shopping.

2012/2013 the state-of-the-art facility is part of Smurfit Kappas ongoing development of sustainability driven improvements to deliver packaging innovations for its customers. VP, Research & Development, Arco Berkenbosch comments: This latest investment provides a significant increase in capacity for the Group allowing us to create new solutions for our customers, through more efficient manufacturing processes, delivering fit-for-purpose, performance packaging.

New high strength, high performance fluting

Smurfit Kappa Paper Division has launched a new portfolio of high performance fluting papers that are designed for increased strength, using recycled papers. The new products generate additional potential for creating the optimal board construction. The products reinforce our sustainability positioning through lower carbon footprints and the use of certified, recycled fibres. The high performance fluting portfolio will give Smurfit Kappa the base for future optimised corrugated board, designed for tomorrows generation of sustainable packaging solutions.

As the market leader, it is essential that we continue to invest in driving efficiency and quality. This requires on-going commitment to investment based on a key focus, our customers and their markets

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Products

Products

Focus on heavy duty products

All packaging is required to protect the product it contains, but some products need more protection than others.
Heavy duty packs are designed for situations when extremes of protection are required. From fragile, valuable products to weighty, bulky or simply large goods, heavy duty packaging will withstand the demands of the supply chain, no matter what the distance. Heavy duty packaging guarantees durability and is supplied in a wide range of hard-wearing boards, including double and triple wall.

Designed to your exact performance requirements

Smurfit Kappa manufactures a wide variety of heavy duty products ranging from Octabins, pallet packs, palletainers and composite material packs. Each is designed to precise size and performance requirements ensuring the solution is cost effective, easy to assemble, functional and sufficiently strong during transit and storage.

The sustainable alternative to timber

With ISPM-15 (International Standards for Phytosanitary Measures) restricting the use of timber in international trade, heavy duty corrugated board offers a unique timber replacement solution. Compared with timber and plywood packaging, heavy duty corrugated solutions are considerably lighter, reducing shipping costs and carbon emissions. Manufactured from 100% recyclable material, heavy duty corrugated packs are designed to be easily recycled in the regular corrugated waste recovery system.

Eliminate product damage

For fragile and vulnerable items, heavy duty packaging is the ideal solution to ensure your product arrives at its destination in pristine condition. All Smurfit Kappa solutions are designed to perform throughout the supply chain to minimise, or even eliminate, any product damage and the associated financial losses.

Just another box in the wall

Its not often that a business best known for being a market-leader in corrugated packaging takes the centre stage at a rock concert, but Smurfit Kappa has specially designed giant corrugated bricks to create one of the most iconic set pieces in music history. Roger Waters, of Pink Floyd fame is touring throughout Europe and the USA with The Wall tour featuring a 73m wide wall made up of 400 fireproof, reusable and recyclable corrugated cartons, or bricks.

Neil Lupin/Getty Images Entertainment/Getty Images

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European Approach

Seamless production transfer across Europe

Following a move of Hewlett Packards (HP) computer server build division from Scotland to the Czech Republic, Smurfit Kappa has ensured continuity of supply for this major client by seamlessly transferring its packaging production to the Czech Republic.
The transition from Smurfit Kappa in Renfrew, Scotland to the new site in Kolin, Czech Republic is due to conclude in August 2011 and displays Smurfit Kappa geographical reach and flexibility across Europe. The fulfillment model developed by Smurfit Kappa Packaging Solutions in Renfrew over the years had become an integral part of HPs production process so it was vital that all processes and specifications remained the same. One of Smurfit Kappas unique selling points is the ability to keep print and colours uniform across the whole of Europe. The process wouldnt have been possible without the dedication of the people involved and the strong collaboration between Smurfit Kappa and HP.
Kolin, Czech Republic Renfrew, Scotland

Contact Us
Smurfit Kappa Europe Pan-European Sales, Rue Goethe 2, Paris, France Tel.: +33 1 49 52 32 00 Email: PanEuropeanSales@smurfitkappa.com People and Packaging is published twice a year Editorial Team: Nienke Odekerken, Mike Drummond and Julie Robinson Managing Editor: Siegfried Jacobi For more information on our products and services please visit www.smurfitkappa.com

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