PACKAGING WITH

A Food Manufacturers Guide to the Reality and Consumer Perceptions of Sustainability, and Real World VFFS Primary Packaging Execution with Paper.

ROVEMA White Paper PACKAGING WITH PAPER

Ed Marsh Founder/Principal Consilium Global Business Advisors

Ed Marsh attended his first PackExpo International in 1992 and has been active in the packaging industry since. He has held a variety of sales, marketing, and management roles in the industry across machinery, consumables and contract packaging services sectors. His background includes experience across sales channels, from manu- facturer, through direct and indirect channel. In addition to managing the US opera- tions of a small German machine builder, he also founded and ran a packaging machine distribution and support business in India.

Today Ed is a strategy and growth consultant for middle-market industrial manufacturers. His clients include packaging and processing machinery manufacturers, including several US subsidiaries of German manufacturers. He helps clients anticipate market opportunities, and reach new customers globally through digital channels.

Ed is a graduate of Johns Hopkins University and a former US Army Infantry Officer. He lives near Boston, MA.

ROVEMA White Paper 2 PASSION FOR PACKAGING PACKAGING WITH PAPER

Introduction

Sustainability, plastic packaging, and initiatives are complex topics characterized by nuanced facts and strongly held beliefs.

Consumer sentiment, in contrast, is simple and straightforward. There’s growing disdain for plastic packaging.

Plastic provides a number of important characteristics as a packaging material. These include volume reduction, food safety and freshness, production efficiency, aesthetics and convenience features.

But consumers increasingly struggle with the contradiction of purchasing healthier, simpler, unadulterated or organic food in a package that’s associated with disonant themes.

Manufacturers and brands need to understand the reality of recycling programs and material options, and they need to simul- taneously position themselves to quickly respond to growing calls for paper packaging which is perceived as more sustainable and better aligned with healthier food.

ROVEMA can support manufacturers to efficiently adapt existing VFFS primary packaging equipment to run paper in place of plastic.

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Index

Introduction 03

100 % recycling or 0 % waste? 05

Sustainability 06 Paper versus Plastic 07 Packaging in the focus of public attention 08 Consumer expectations ever more demanding – packaging criticism taken seriously 09 Inadequate infrastructure 10 Immature technology 10

Recycling, Composting, and More 11 Key terms include 11 ● Recycling 11 ● Composting 11 ● Biodegradable 11 Packaging with paper – appeal and challenges 12

Adapting Vertical Baggers to Run Paper 13 Good to know 13 ● Output 13 ● Paper supply 14 ● Film handling and sealing 14 ● ROVEMA compared to other solutions 14 Implications to recyclability and perception 14

Conclusion 15

Glossary of Terms ● Lci (Life cycle inventory) ● Lca (Life cycle assessment) ● PLA (Poly lactic acid) ● FSC (Forest stewardship council) ● PEFC (Programme for the Endorsement of Forest Certification) ● Renewable packaging (designed to be environmentally friendly, recoverable) ● Bio based (material made from substances derived from living, or once living, organisms) ● Biodegredation – ability to break down safely and relatively quickly by biological means into the raw materials ● Composting – to decay into nutrient rich, natural material utilizing micro-organisms, humidity and temperature – home versus industrial – different standards ● Comparing biodegredation and composting – first is naturally occuring, 2nd is human driven ● Recycling – not 1:1 exchange, but process of converting waste into new materials – ISO standards – codes

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100 % recycling or 0 % waste?

Plastic packaging is the focus of concentrated worldwide efforts at reduction. Governmental regu- latory efforts include a proposed 22 % tax on plastic packaging for food and beverages with less than 30 % recycled content in the UK, and Germany’s “Packaging Act” which stipulates an increase in plastic packaging recycling from 36 to 63 % between 2019 – 2022.

Mass retailers have started initiatives like Aldi’s plan to ensure that all of its private packaging is recyclable or compostable by 2022 Lidl‘s sustainability program and Walmart’s to reduce waste to zero. Sensing retailer inertia, brands including Mondelez, P&G and Nestlé have announced public commitments to ensuring that all packaging is 100 % recyclable by 2025.

Underlying these programs is a variety of converging consumer expectations for healthier lifestyles, greener business and reduced environmental impact. Premium priced organic food packed in plastic, which is emotionally associated with the Great Pacific Garbage Patch, creates dissonance for consumers.

The resulting conversations touch on broad sustainability and safety, frequently conflated terms in- cluding recyclable and compostable, and themes including plastic and paper packaging.

Caught at the turbulent intersection of these trends are manufacturers. Acutely aware of obligations for food safety, expectations of shelf-life and convenience, and financial reality, food manufacturers need information and solutions.

This guide is intended to provide a framework for understanding the push for paper packaging, and actionable steps to respond.

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Sustainability

The inertia toward increased recyclable ● Shipping cube – certain package configura- content and decreased plastic packaging tions require less space in ships, trucks and is driven by broader sustainability objec- trains but may require certain material tives. A huge topic which deserves its own characteristics to realize these economies exploration, the quest for sustainability and the sustainability benefits. underlies many of the considerations which weigh on . High-level ● Efficiency of packaging machinery – the factors include: floorspace, electricity and compressed air requirements of machinery all contribute to ● Holistic packaging concepts – beneficial the overall reduction or increase in demand changes in primary package materials may of resources to complete the package. require offsetting changes in secondary and tertiary packaging in order to prevent ● Damaged and spoiled goods – the least damage and ensure safety. It’s important considered aspect of sustainability is the to consider the overall impact. impact of waste product. The energy and resources used to create it originally, and ● Packaging material energy and process the volume of waste of the damaged (lifecycle) considerations – what are the product itself, can easily and significantly energy, water and material inputs required exceed the small incremental benefits to create virgin materials (paper, plastic, realized through a minor packaging change etc.); to process them for recycling; to that inadvertently allows the damage to create fresh material with recycled content; occur. to dispose of them (commercial compos- ting, incineration, etc.)

● Volume of packaging material required – food safety and shelf-life considerations require certain package/performance attributes which may require substantially thicker (more volume) structures of some materials (e.g. paper versus plastic) which yield greater volumes of waste in aggregate.

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Sustainability

Paper versus Plastics

The reality is that plastic packaging actually Some of its comparative lifecycle advantages excels in most of these areas. It contributes to versus paper include its contribution to in- structures which require less volume for safe creased incinerator effectiveness in burning and effective transport, increased safety and paper and other waste, and its effectiveness longer shelf-life. Plastic packaging is generally at protecting food. (Some estimates place less resource intensive to create than paper, plastic’s role inreducing spoiled food waste and it increases efficiency in the packaging as high as 33 %.) process. Of course there are other estimates which draw a very different conclusion.

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Sustainability

Packaging in the focus of public attention

Increased awareness of plastic waste has led to the worldwide focus on plastic straws actually more vigorous efforts to curb the indiscriminate originated with a casually sourced elementary accumulation of plastic packaging trash. While school science paper), manufacturers must re- the scientific reality may differ (e.g. 90 % of the spond to the reality of customer perception plastic waste in oceans is carried to sea by just and it’s rippling effects on retailer and brand 10 rivers – eight in Asia and two in Africa – and response.

Pollution potential of the oceans by plastic waste

5 % 95 % 2 % 98 % 51 % 49 %

Asia 42.2 Mio. t North America Europe 16.7 Mio. t 15.2 Mio. t

North Pacific North Atlantic

Africa 6.9 Mio. t

South Australia America 1.2 Mio. t 9.1 Mio. t South Atlantic South Pacific Indian Ocean

13 % 87 % 69 % 31 % 2 % 98 %

plastic waste disposed plastic waste Garbage Patches via disposed improperly (floating plastic waste)

source: Federal Ministry of Education and Research (BMBF) data soruce: figures from 2010 Jambeck Research Group, University of Georgia

That means food manufacturers face the Brands are increasingly concerned about the urgent challenge of reducing plastic, increas- potential publicity and damage that can result ing paper and increasing recyclability, while from images of their branded plastic packaging simultaneously mitigating the negative im- in the waste stream featured in discussions of pacts on manufacturing efficiency, logistics sustainability and waste. and product safety and quality.

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Sustainability

Consumer expectations ever more demanding – packaging criticism taken seriously

Reducing plastic and increasing recyclability are From the consumer perspective, recloseability/ animating concerns for consumers. Some resealability is a hugely popular package fea- novelty packaging solutions (like wrapping in ture. Different solutions range from zippers and banana leaves) generate some buzz and velcro to , metal clips, and wafer interest, but many consumers and professionals seals. Pouches with re- reduce pack- rightly appreciate and value some of the aging volume and increase the convenience of package attributes which were made possible pack-ages for on-the-go consumption. And by plastic. shelf-life expectations increase even as foods are made with fewer and more natural additives Manufacturers rely on the superior and preservatives (like the “Clean Label” trend printability of plastic films to create in baked goods). Carefully engineered barrier aesthetically appealing packages that properties lead consumers to expect freshness grab consumer attention during the critical even in high oil and fat content items prone to moments on the shelf. And they often use rancidity. All three, however, impact package transparent areas to let the product be recyclability. seen and sell itself through the package. At the same time, the recycling infrastructure is coming under scrutiny.

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Sustainability

Inadequate infrastructure

Many American cities and towns embraced New initiatives like Loop hope to reduce recycling programs with good intentions and the need for recycling by introducing reusable financial motivations. For years they were able . They’ve received extensive media to offset the cost of trash collection and disposal coverage and buy-in from multi-national brands, by contracting to have recyclables collected but sustainable waste management practices separately by disposal companies who priced remain complicated and underdeveloped. the removal based on the seemingly insatiable Chinese demand for recyclable waste. Yet even in Europe where circular recycling pro- grams are more advanced, the infrastructure to As that demand was been abruptly curtailed, it support public aspirations isn‘t yet well enough created “an (recycling) earthquake” according developed. In the US it’s an even more distant to the director general of Brussels-based indus- reality. try group The Bureau of International Recycling. Communities have learned that much of the recycling was simply removal subsidized by waste purchases.

Immature technology

The 2025 goal of 100 % of packaging made While we can’t foresee how the with recyclable material is unrealistic today – at goals will be achieved, food manufacturers least assuming one means monomaterials can take proactive steps today to address which can be reasonably collected and market expectations in the meantime and recycled. Technology will have to move quickly, to position their companies as proactive. and it’s reasonable to expect advances in materials, circular systems for collection and Adding the capability for paper packaging reuse, and recycling technology itself. And it’s in the primary packaging area is a concrete important to note that plastic is often recyclable and immediately feasible step. – so while certain stakeholders may hear the pledges made by Mondelez and other major brands to mean plastic free, that’s not the commitment that’s being made. Indeed it would likely be impossible.

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Recycling, Composting, and More

Everyone can empathize with the aspiration Cotton rages 1 – 5 months of zero waste packaging. The execution is devilishly complicated, though, from techni- Paper 2 – 5 months cal, logistics and financial perspectives. Rope 3 – 14 months Orange peels 6 months On the one hand, all material will break-down Wool socks 1 – 5 years over a long enough period of time. The biggest concern about plastic is that the length of time Cigarette butts 1 – 12 years required may be thousands of years. Plastic milk 5 years Leather shoes 25 – 40 years On the other hand, the realities and limitations Nylon fabric 30 – 40 years of different programs are sometimes confused with imprecise use of terminology. Plastic 6-pack holder Rings 450 years 1 million years Plastic bottles Forever

A biodegradable product has the ability to break down, safely and relatively quickly, by biological means, into the raw materials of nature and disappear into environment. Key terms include

Recycling Governed by ISO standards (including 15270:2008 Biodegradable Symbols for plastic and 14001:2015 for environmental management of a recycling practice) it is the pro- cess of converting waste material into new mate- rial. It is often less resource intensive than creating virgin material, but typically only replaces part of the total with converted waste. Typically about ⅔ of paper can be recovered. There are also practical limits (i.e. often paper fibers are too short for reuse after 5 or 6 recycling cycles).

Composting Governed by ASTM standards (ASTM D6400 for “Compostable Products” and ASTM D6868 for “Specification for used on Paper and other Compostable Sub- strates) composting refers to the process by which solid materials decay due to micro- organisms, humidity and temperature. Home composting which is familiar to many of us is Biodegradable vastly different than industrial composting which In contrast to the human-driven process must be carefully managed and which is the of composting, is the naturally basis for many assertions of compostability. occurring breakdown of materials by biological activity. Absent clear and uniform definitions, Many natural items in the waste stream (i.e. meat this term is often used in misleading descrip- and PLA or Polylactic Acid starch-based plastics) tions. Everything is eventually – but it could take will only decay under carefully created industrial millennia! composting conditions of heat (100 – 150 ℉ / 37.8 – 65.6 °C), humidity and airflow. Both forms of composting are human initiated and managed.

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Recycling, Composting, and More

Packaging with paper – appeal and challenges

From a consumer perspective, paper to be equipped with a sealing medium. This seems to be a nearly perfect “sustainable” medium can be applied either as laminate or packaging material. In most forms it is partial to fulfill legal requirements. easily recycled and is both reasonably industrial compostable and legitimately Paper is satisfactorily suited for vertical bagging biodegradable. It’s often perceived by of dry products including noodles, rice, shortcut consumers as more sustainable than plastic. pasta, flour, beans, and cereals and grains. With hermetic seals and barrier layers, it can also Under the German VerpackG (Verpackungs- provide oxygen and water vapor protection, and gesetz 2019) paper will still be considered a high-fat products (like nuts and coffee) can be monomaterial (with paper’s sustainability profile) packaged when an oil barrier is used. as long as the entire structure contains less than 5 % volume (by weight) of other materials. While high-quality graphics, comparable to what This means that inks, sealants, barriers, many have come to expect from printed films, windows and other embellishments can be ad- are possible, they often require very high-quality ded to the paper during converting and pack- paper grades. Further, paper generally offers re- aging but it can still retain its recyclable status duced puncture resistance properties compared as long as they’re cumulatively less than 5 % of to films, and potentially sharp products (i.e. the weight to process paper on a VFFS, it needs broken shortcut pasta) may require thicker paper to avoid tears which would result in damaged packages, and full product volume entering the waste stream.

Most importantly though for manufac- turers eager to satisfy rapidly shifting consumer expectations without full-scale reinvestment in their vertical bagging infra- structure, in many cases ROVEMA can modify existing equipment to run paper – and even to run both paper AND plastic.

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ROVEMA paper brick pack

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Adapting Vertical Baggers to Run Paper

Three guiding philosophies influence ROVEMA is helping companies to adapt ROVEMA’s approach to paper packaging. existing, film only, vertical baggers to be able to run paper while still retaining the ability to run First is a commitment to support equipment for plastic. its entire life. For this adaption, ROVEMA typically analysizes Second is the firm commitment to support the follwing areas of the machine: companies’ efforts to improve sustainability in their packaging operations ● Film transport

Third is our belief that our manufacturing cus- ● forming tomers are best suited with flexible solutions that holistically consider the product, package, and the ● Sealing machine.

Our approach to paper packaging addresses all three of these.

Good to know

We believe that an adaptation to paper motion lines than on intermittent motion ma- packaging should have the smallest pos- chines. Paper can be run successfully on inter- sible impact on your operation. mittent motion machines, but slower and with higher quality, thicker paper to manage the So we start with several objectives – to: stresses to which it is subject.

● maintain your plastic line speed as much Second, paper is a natural thermal insulator. as possible Compared to the thermal conductive nature of most films, this requires a very different combi- ● provide flexibility for you to multi-source nation of time, temperature and pressure when the packaging material sealing, and it may, in some applications, re- quire some reduction in the per minute ● allow you to switch between plastic and (BPM) speed of the same package in plastic. paper as required going forward. There are some net output considerations as Output well. Thicker paper requires more frequent roll Speed is often the first concern of most changes than films. New machines can be built engineering and production teams, to accommodate 1M diameter rolls of paper, and packaging with paper raises several but retrofits are constrained by the way the specific concerns. machine was originally designed. Paper can be automatically spliced, and companies might First, the material must be treated more gently consider adding a splicer to reduce downtime to avoid wrinkling and tearing. Our experience is (and net output reduction) due to more frequent that retrofits are more successful on continuous roll changes.

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Adapting Vertical Baggers to Run Paper

Paper supply run very thick, stiff film) but often the angle used The technical characteristics of the paper for film (≤ 45°) will fracture or tear the paper. are important. Low CoF (coefficient of friction) inside the paper enhances machining. Different CoF characteristics will require different vacuum belts. In some cases, some prefeeding However, there is no single supplier “tie-up.” reels will be required in the film carrier section. ROVEMA is committed to technical solutions which will work with materials from any supplier, Achieving the required time/temperature/ as long as they meet the technical requirements. pressure combination may require the replace- ment of several sealing system components. This is critically important for companies with It could be as simple as the belts, and a bar, sophisticated supply chain strategies – it frees or could require changing the jaw set. your marketing, engineering and procurement teams to find the best suppliers for your It’s important to understand that these business requirements without depending on changes incorporate standard ROVEMA a single supplier. retrofits and replacement parts. They are not unique to paper packaging, and there- Film handling and sealing fore in most cases, machines can be used Adaptions typically require a new forming set to run either film or paper after the conver- to accommodate the gentler infeed angle of the sions. Often these items are neither forming shoulder that’s required for paper elaborate „one-off“engineering nor custom (≤ 27°.) Depending on the film which you run, design projects. your forming set may work (particularly if you

ROVEMA compared to other solutions

ROVEMA compared to other solutions paper, we don’t require any sort of ap- ROVEMA’s paper packaging adaptations plied on the machine. This eliminates the mess, preclude two issues which worry most manu- expense and maintenance hassles associated facturers. with temperamental glue pots and other adhesive solutions. First, our system allows you to run technically adequate paper from any supplier. Second, because we seal with a heat seal layer on the

Implications to recyclability and perception

Paper packaging run on a retrofitted ROVEMA the material to be treated as a compound VFFS will often satisfy the monomaterial require- material and therefore no longer recyclable as a ment for recyclability. In other words, the paper monomaterial. that is used, with a bit of sealant (<5 % of the weight), will be recyclable as paper. Even in this , however, the exterior of the package will be easily identified as paper and Barrier layers which may be required will not will likely eliminate consumer pushback to only increase the material cost but may cause plastic packaging.

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Conclusion

While the reality of is complex, there’s a growing and simple perception among consumers. That belief is that paper packaging is greener and more sustainable than plastic packaging.

That creates some complications for food manufacturers ranging from PoS merchandising challenges to shelf-life and freshness considerations.

The good news is that existing ROVEMA VFFS machines can generally be adapted to run paper from any supplier, and still retain the ability to run plastic as originally designed. This flexibility is achieved with standard components and doesn’t require some complex and problematic customer engineering project. Instead it quickly prepares existing equipment to run paper in response to growing demand from retailers who are responding to consumer sentiment.

While the perceived benefits of paper may prove more elusive than generally assumed, ROVEMA can help companies quickly begin to satisfy demand with common vertical styles made from paper on existing equipment.

15 PASSION FOR PACKAGING ROVEMA GmbH 35463 Fernwald Germany T +49 641 409-0 Passion for packaging [email protected] www.rovema.com

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