Reckitt Benckiser

ECOEMBES JORNADA TÉCNICA DISEÑA PARA RECICLAR Lightweight primary packaging materials

Arno Melchior (Packaging Global R&B)

Jordi Jové (Packaging R&B España)

Barcelona, 15th November 2011

ECOEMBES JORNADA TÉCNICA DISEÑA PARA RECICLAR

The journey to Sustainability

• 1823 – Benckiser started in Germany manufacturing ammonium chloride

• 1840 – Reckitt’s started in England producing starch

• A truly Sustainable company

Reckitt Benckiser

• World leader in household cleaning, health and personal care

>75% of net revenues from No. 1 or No. 2 brands

• Global reach

Operations in c. 60 countries, sales in c. 180 countries

c. 45 manufacturing facilities in 30 countries; 23,000 employees

Recent acquisitions

2006, Boots Healthcare International (e.g. Neurofen & Strepsils) c. £1.9bn

2008, Adams Respiratory Therapeutics Inc. (Mucinex) c. £1.1bn

2010, SSL (Durex, Scholl) c. £0.8bn

• Household

− Fabric Care: Fabric Treatment (Vanish), Water Softeners (Calgon), Garment Care (Woolite)

− Surface Care: Multipurpose Cleaners (Lysol, Dettol & Bang), Lavatory Care (Harpic, Lysol)

− Dishwashing: Automatic Dishwashing (Finish)

− Homecare: Air Care (Airwick), Pest Control (Mortein)

• Health and Personal Care

− Personal Care: Antiseptics (Dettol), Depilatories (Veet), Acne Treatment (Clearasil)

− Health Care: Sore Throat (Strepsils), Cough (Mucinex), Analgesics (Nurofen),

Gastro Intestinal (Gaviscon)

• Pharmaceuticals, Suboxone and Subutex

• Food Mustard, worldwide No. 1 – French’s

Workplace • Conducting business in a responsible and ethical manner

• Managing our products whole Marketplace value chain - from ‘cradle to grave’ - in an increasingly sustainable way

Community Sustainability has 3 legs:

− Social and ethical

− Environmental Environment − Financial

Marketplace

Operating today with as little adverse impact on the environment as practical Working to continually reduce our net environmental impact Environment

Greenhouse Gas Emissions / Energy Use

• 30% reduction per consumer unit in CO2e from manufacturing energy use, 2000 - 07 Energy Use • 21% absolute emissions reduction, 2000 - 07

Hazardous Waste Waste Water • 48% reduction in hazardous waste per consumer unit, 2000 - 07 • 21% absolute reduction, 2000 - 07

Water Use • 12% reduction in water use per consumer unit, 2000 - 07 • absolute water use returned to 2000 levels in 2007, against market demand for liquids

• Concerned about environmental issues – 44% of consumers becoming more concerned about impact of household products on the environment compared to a year ago Source : Nunwood Market Research, 2007

• Say they have 3 Big Problems re. climate change – Feel that individually their actions won’t make a difference – Lack practical information on what to do – Environmentally better products are believed to cost more or not work as well Source: Ipsos MORI All UK adults April 2007; retailer / consumer interviews

• Expect business to help them tackle these problems – They believe producers / manufacturers can make the biggest impact on change along with Governments and much more than individuals, NGOs or retailers Source: circa. 47 countries; AC Nielsen / University of Oxford, 2007

A measure of the IMPACT that a person / organisation / product has on the environment in terms of CO2-equivalent greenhouse gases (GHG) emissions, which cause climate change

Raw materials RB Factories Logistics Retailers: Shopping Product & and Centres journeys Packaging components - Logistics Disposal / Centres Recycling 3rd-party Factories Product - Distribution Product use: Packaging Distribution materials - Stores e.g. RB Offices & - ADW R&D Centres - Laundry

- Air Care Business Travel - Surface Care - Hand washing

Raw & Product Product Retail Consumers Product & Packaging Manufacturing Distribution Operations Packaging Materials Disposal / Recycling

• ca. 20 million tonnes of CO2-equivalents / year (2007) = emissions from 3.6 million average UK households / year

= emissions from 5.7 million UK medium sized family cars / year

• a 20% reduction (c. 4m tonnes CO2e) equates to: = emissions from > 0.7 million average UK households / year

WHERE is the Total Carbon Footprint ? (2007 Data)

(2010 Data)

HOW will we do it ?!

• REPLACE ingredients, processes, packaging and energy sources - to continually move towards lower carbon alternatives

• BUT carbon offsetting will NOT be counted towards the Carbon 20 target. RB’s own carbon offsetting programme is planting over 4 million trees in more than 25 square kilometres of deforested land in Canada, offsetting emissions to be a carbon neutral manufacturer.

• In 2010, we sold >240 million bottles of liquid cleaner with a spray trigger a year

• Spray triggers allow consumers to apply products directly to the area that requires 28.5 % cleaning, optimising product use to the task required Guala Group’s TS3 Energy Spray Cleaner Reduction / • Working with Guala Group, who design Trigger Efficiency and manufacture our spray triggers, we

Optimised have developed a full plastic trigger and Materials we will have in 2010:

− removed >670,000 kg of metal / year Recycled Packaging − reduced >90,000 kg plastic / year Lower carbon Benefit materials & = 1,226 tonnes CO2e avoided, p.a. Packaging = 220 households / 252 cars, p.a.

Small savings can make a big impact In Europe we have changed the dosing scoop for Vanish powder from an injection 28.5 % moulded scoop to a thermoformed scoop. This Energy change in manufacturing Reduction / technology has reduced the Efficiency weight by nearly 50% resulting in 153 tons of PP Optimised resin saved. As the Materials thermoforming process requires much less energy Recycled than injection moulding this Packaging project also saved around 638 metric tons of CO2. Lower carbon materials & Packaging Injection moulded scoop Thermoformed scoop

Vanish Powder Offer a flexible pack along the rigid container

• We decided to offer a ECO variant of our Vanish fabric treatment powder

− Ecological: improved package/product ratio => much less packaging weight per 100g of powder

− Economical: cheaper per 100g than the product in the tub

• During and especially after the project we had to answer many questions were the solution was neither black nor white Score 0:1 Vanish Powder Offer a flexible pack along the rigid container

• Packaging weight 78g • Packaging weight 18g Score 0:11:1 Vanish Powder Offer a flexible pack along the rigid container

• But the container is recyclable and the flexible-pack is not!

• Packaging weight 78g • Packaging weight 18g (not recycled)

Score 1:11:2 Vanish Powder Offer a flexible pack along the rigid container

• But the container is recyclable and the doy-pack is not!

• Packaging weight: • Packaging weight 18g (not recycled) − Container 52g (partly recycled)

− Lid 22g (not recycled- in the UK)

− Label 4g (not recycled – in the UK) − Already a total of 26g which is not recycled at all

Score 1:2 Vanish Powder Offer a flexible pack along the rigid container

• But the container is recyclable and the doy-pack is not?

• Packaging weight: • Packaging weight 18g (not recycled) − Container 52g − Typical recycling rate for plastic bottles in the UK ~ 40% (2009) − This means: 21g of this tub are recycled and 31g are not recycled Score 1:2 Vanish Powder Offer a flexible pack along the rigid container

• But the container is recyclable and the doy-pack is not?

• Recycling: • Recycling: • 57g which are not recycled • 18g which are not recycled • 21g which are recycled

Score 1:31:2 Vanish Powder Offer a flexible pack along the rigid container

• What about carbon emissions?

− Container 52g HDPE ~ 165g − Flexible Pack 18g Laminate =

− Lid 22g PP ~ 73g − TOTAL ~ 63g CO2e

− Label 4g Paper ~ 7g

− TOTAL ~ 244g CO2e

• Nearly 4x higher for tub

Score 2:31:3 Vanish Powder Offer a flexible pack along the rigid container

• Line speed per minute if 1kg of (dusty) powder is filled:

• Theoretically 120/min • Theoretically 35/min

• Practically ~80/min • Practically ~16/min

• For one tub line we would need FIVE flex-pack lines!!! Score 2:42:3 Vanish Powder Offer a flexible pack along the rigid container

• Delivery of empty packaging material:

• 4800 tubs each 11.2 x 11.2 x • 4800 packs on a reel 14.5cm = 8.7m3 plus 1.9m3 50x50x65cm = 0.1625m3 for lids + labels

• Total = 10.6m3

• Transport volume for empty tubs is 65x the one of doypacks Score 3:42:4 Vanish Powder Offer a flexible pack along the rigid container

• Delivery of empty packaging material:

• 4800 tubs/lids & labels= 10.6m3 • 4800 doypacks = 0.1625m3

• However as the reels with the doypacks are very heavy theoretically you reach the weight limit of a lorry before you reach the volume limit. Besides that reels are always stacked only one layer. So anyhow you will have plenty of space on the lorry. Score 4:4 Vanish Powder Offer a flexible pack along the rigid container

• Delivery of empty packaging material:

• 4800 tubs/lids & labels= IHP • 4800 doypacks = 0.1625m3

• We have our container production in house. So transport of empty containers is no issue. Score 4:5 Vanish Powder Offer a flexible pack along the rigid container

• Delivery of empty packaging material:

• 4800 tubs/lids & labels= IHP • 4800 doypacks = 0.1625m3

• We have our container production in house. So transport of empty containers is no issue.

• But we still need 1.9m3 for lids + labels

Score 5:54:5 Vanish Powder Offer a flexible pack along the rigid container

• What about transport packaging?

• Tub can take top load • Doypack can’t take top load

• Outercase weight ~230g • Outercase weight ~520g Score 6:55:5 Vanish Powder Offer a flexible pack along the rigid container

• What about finished goods transport (palletisation)? • 10 cases/layer • 12 cases/layer

• 10 layers • 6 layers

• TOTAL: 100 cases/pallet • TOTAL: 72 cases/pallet • Transport efficiency of tub +39% Score 6:5 Vanish Powder Offer a flexible pack along the rigid container

• This comparison could go on and on…..

Mastering cost reduction techniques to improve profit margins

• Sustainability and cost reduction go very often hand in hand!

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