Title: Liquid Packaging: Exceeding Expectations
1Liquid Packaging Exceeding Expectations
- Pasi Piiparinen, VP Liquid Packaging Boards
- Anders Harbäck, VP Business Unit Tetra Pak Boards
- 2 November 2004
2Lets Talk About Money!
3How Does a Packaging Solution Makeits Way to a
National Banknote?
- In developing countries, over 30 of all food is
wasted due to bad packaging, lack of packaging
and logistics-related reasons -
- (Issued by the
Central Bank of Kenya) - Packaging can play a vital role in reducing food
waste!
4Our Objective
- We are and will continue to be the worlds
leading producer of Liquid Packaging Boards for
all fresh and aseptic liquid food systems
5In 2002, the Total Beverage Market was 5 000
Billion Litres of which only 14, or 700 Billion
Litres were Packed Enormous Future Potential
for Cartons!
Packed beverage market 2002 Total market size
700bn
- Total beverage market will continue to grow and a
larger share will be packed in the future - Glass will continue to lose its market share
- The global share of carton packages will decrease
although the absolute tonnage will grow - Plastic bottles and pouches will continue to grow
Plastic Pouch 18
Carton 11
Bulk 4
Plastic Btls 28
Metal Btls 13
Glass 26
6Total LPB Market in 2003 was 3 Million Tonnes
Stora Enso is the Leading Producer, with a 33
Market Share
LPB Suppliers
- Stora Enso (33)
- North American producers (34)
- Others (33)
Others
Stora Enso
North American producers
7The Liquid Packaging Market is divided into
Fresh and Aseptic Segments
- The leading converter in the aseptic liquid food
business is Tetra Pak, followed by SIG Combibloc
and Elopak - In the fresh liquid food business the leading
converters are Tetra Pak and Elopak, followed by
vertically integrated International Paper and
Blue Ridge
8Customer Focus
- We want to be our customers best supplier
- Exceed their expectations when it comes to
service and quality - Be innovative in product development
- Have adequate production and extrusion capacities
available - Support their growth globally
9What Makes Liquid Packaging Boards Unique?
- Beverage cartons must
- be able to hold liquids up to 1 year
- keep the food content clean and safe
- run well in converting and filling machinery
- support the brand image (printability)
- not break if dropped
- be as light as possible
- be suitable for heavy transportation
- be highly recyclable
-
10Sustainable Beverage Cartons
- High barrier technology
- Source reduction lighter packages
- Food safety aspects
- Easy to collect and recycle in existing recycling
schemes - High quality primary fibres benefit the recycled
products -
11Ecogas Recycling Process
- The ECOGAS process
- woodfibre recycled into coreboard
- aluminium recovered for use by metal industry
- plastic converted into gas for energy
- Enough energy to heat a town of 40 000 people
throughout the winter
12Growth
- Liquid Packaging Boards form a 3 million tonnes
sector in the global 360 million tonnes paper and
board industry - Demand for Liquid Packaging Boards is expected to
grow by 3 per annum (approx 100 000 tonnes per
annum over the next 10 years, with the biggest
growth areas being Asian countries - Newcomers face high barriers to entry
13We Support our Customers Growth Globally
- 1. By investing in existing machines
- 2. New machines in emerging markets
- 3. New business innovations
14Investing in Existing Machines
- The Liquid Packaging Market has a healthy annual
growth - Our strategy is to support our key customers
global growth - We can keep our ? market share by utilising our
existing capacity systematically, investing in
the asset quality of board machines and extrusion
lines
15New Machines in Emerging Markets
- The fastest growth rate is in the emerging
markets, particularly China - Aseptic liquid foods are growing, especially in
Asia but also in Eastern Europe and South
America - Technology know-how
- Veracel pulp
- Own plantations in China
- CTMP from Finland
16New Business Innovations
- New forms, shapes and designs
- Active functional packages
- Security functions embedded
- Tailor-made barrier packages
- Smart packages
- New packaging business models
- Packages enhancing logistics
17Our Strengths
- Close relationships with key customers, built
over 45 years - Captive fibre supply with efficient world-scale
pulp mills - High market shares in key customer groups
- Widest product range including special barriers
- Leader in polymer coating in Europe own patented
product family - Strong RD network
18Pasi Piiparinen Anders HarbäckQuestions
Discussion