Tetra Pak Magazine No.104 2015, ISSN 0346-3044

104 Tetra Pak 2015 Pak Tetra

Tetra Pak Tetra Magazine Theme: Deeper in the Pyramid

No.

Tetra Pak®, ,PROTECTS WHAT’S GOOD, Tetra Brik®, Tetra Classic®, Tetra Evero®, Tetra Fino®,Tetra Gemina® Tetra Prisma®, Tetra Recart®, Tetra Rex®, Tetra Top® and Tetra Wedge® are some of the trademarks belonging to the Tetra Pak Group. www.tetrapak.com TETRA PAK PROCESSING AND PACKAGING SYSTEMS ARE MARKETED BY, AMONG OTHERS Dear reader, Arabia Area Tetra Pak Manufacturing Ltd Indonesia PT Tetra Pak Indonesia Russia and Belarus Tetra Pak A/O With the Tetra Pak Magazine we aim to provide a relevant, Lot 88-103, Phase 3, Jcci, Warehouse City Jl. Buncit Raya Kav.100, Lantai 3 Jakarta 12510 8, Wilhelm Pieck Street, 129226, Moscow, informative and interesting read. With this in mind, we would 21413 Jeddah, Saudi Arabia Tel +62-21 7917 8000 Tel: +7 495 787 8000 Tel +966-2 635 1515 Iran Tetra Pak Iran Serbia Tetra Pak Production d.o.o. 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an importantcategory andoffer manybusiness opportunities. shelter, reliable transport andcommunications.They represent focusing onhealth,education, nutritiousfood,cleanwater, for agoodfuture forthemandtheirchildren. Thismeans and Euro 7.20perday. Theirpriorityistobuildthefoundations of consumerswithaspending powerofbetweenEuro 1.80 billion peoplefound“DeeperinthePyramid”–acategory Available andaffordable foodiscritical,notleasttothetwo mind: tomakefoodsafeandavailable,everywhere. processing, packaginganddistribution,allwithourgoalin Our solutionsincludenumerous innovationsinfood food anddrinkinourpackagesreach billionsofconsumers. Today ourequipmentisfoundacross theglobeandeveryyear continuously developedandimproved hisconcept. Europe andsuccesswasimmediate. Eversincethenwehave manner. Hisinnovation filledanimportantneedinpostwar to packageandmakemilkavailableinasafeefficient At © Tetra Pak Image Bank

a timewhenproduction and distributionwere Tetra Pakandintroduced arevolutionary way far from reliable, DrRubenRausingfounded

safe, qualitypackagedfoodandbeverages. of low-incomeconsumersaround theworldwithnutritious, ways inwhichTetra Pakishelpingcustomers meettheneeds this excitingopportunity. We alsopresent someofthemany and examinethebusinessmodelstheyare usingtoleverage offer. We highlightexamplesofcompaniesinotherindustries the opportunitiesconsumers“DeeperinPyramid” In thiseditionoftheTetra PakMagazine,welookcloselyat affordable way. available toconsumerseverywhere inasafe,efficient and packaged well,itcanbehandled,transportedandmade Our startingpointisthatwhenfoodprocessed and Note! between US$2and US$8(Euro 1.80andEuro 7.20)per person,perday. on, considersthecategory ofconsumerswithadisposable incomeof whilst theconcept Deeper inthePyramid(DiP),thatTetra Pakfocuses those peoplewithanincomeoflessthan US$2perpersonday The "bottomofthepyramid"asdescribed byC.K.Prahaladconsiders TETRA PAK Magazine 1 © Lucky Look/Alamy Since Noor Ali set up Rehmat, a tiny grocery store or‘kirana’ intheoldIndiantownSince Noor ofAhmedabad, AlisetupRehmat, atiny grocery containing Vaseline, shampoo, washing powder, cream balm,face hair dye, — just about Vicks nearly year. adecade ago, hehassoldmore branded goods every ofsachets strip after Strip the future willbe found future the ‘Deeper inthePyramid’ The growth markets of The growth everything you’d inEurope — dangle findinachemist’s aroundeverything thewindow through which he serves hiscustomers. through whichheserves hand-washing clothesinriverwater. to theconsumerandhadaformulationbettersuited washing powder, beproduced cheaplyatsmallplantsclose with itsownbasicdetergent, Wheel,whichcould,likeNirma more basicproduct atafifth oftheprice.Unilever responded Surf brandasIndia’s best-sellingdetergent byoffering amuch marketing strategyforIndia.NirmahadoustedUnilever’s 1995 forced Unilevertocompletelyrewrite itsproduction and company basedonlyafewkilometres from Ali’s shop,in As Prahalad’s paperexplains,Nirma,a start-up detergent multinationals totakeDiPconsumersseriously. this paper, it was acompanybasedinAhmedabadthatforced Pyramid’, bytheIndianeconomistC.K.Prahalad.According to ground-breaking 2002paper‘TheFortuneattheBottomof not surprising.Tetra PakhasmodelleditsDiPconceptonthe growing cities,shouldbe largely intheDiPcategoryisperhaps That thepopulationofAhmedabad,oneworld’s fastest a newmarket How anupstart competitorfoundUnilever international companies. Group hasidentifiedasthe “goldenopportunity”for Pyramid (DiP)consumercategorythattheBostonConsulting and Euro 7.20aday, puttingthemfirmlyintheDeeper A large proportion ofAli’s customers earnbetweenEuro 1.80 shampoo, are nowbuyingit,whichisincreasing our profits.” were notusingcosmeticslikeFairandLovelyfacecream, or people toafford internationalbrands,soconsumers who sachet worthonerupee,”hepointsout.“Smallpacksallow a A teenagegirlcannotbuythat,butshecandefinitely “A shampoobottlecostsatleastsixtyIndianrupees(Euro 0.85). gets onlyaslimmargin, buthe’s happywiththechange. moisturiser sellsforjusttwoIndianrupees(Euro 0.03)andAli The sumsofmoneyinvolvedare tiny. AsachetofPond’s skin

“multi-trillion dollar market”. “multi-trillion dollarmarket”. consumers. Instead,heargued theyrepresented anuntapped and stopdismissing“thedevelopingworld”aspotential encouraged businessestolearnfrom Unilever’s experience the nextfiveyears.Inhispaperpublishedin2002,Prahalad subsidiary soared, growing anaverageof25%peryearfor selling Sunsilkshampooinsachets,profits from itsIndian segment. AsUnileveradaptedotherbrands,forinstance lower incomeconsumer, itdiscovered anentirely newmarket developed newdistributionchannelstoreach Wheel’s target The aimwastofendoff a competitor. ButasUnilever a sachetworthonerupee. A teenagegirlcannotbuythat,butshecandefinitely A shampoobottlecostsatleastsixtyIndianrupees(Euro 0.85).

Magnus Alkmar Ahmedabad TETRA PAK Magazine

3 © Lucky Look/Alamy and LatinAmerica.It’s stillearlydays.” will evolveoutofIndia.TheyalsoAfrica looking atit,”argues Dutta.“Ithink newbusinessmodels “The marketisstillevolving.More and more companiesare 638,000 villagesdirectly. distribution networkonlyreached about afifth ofIndia’s market. Unilever, he pointsout,admittedin2012thatits stores likeAli’s, buttheyare stillfarfrom saturatingthe stores ofIndonesiaandthe favelasofBrazilaswellkirana reaching DiPconsumerswith theirwares soldinthewarung such asUnileverandColgate-Palmolivehavehadsuccess consultancy Third Eyesight,consumer goodscompanies According toDevangshuDutta,headofIndianretail will…forge forwards economically.” income countries,theemerging incomecountries,they taxonomy oftheworld,”hesaid.“Theselowerormiddle has changed,andit'soverdue toupgradethatmindsetand World”, Roslingassertedduringatalkin2010.“Theworld “enormous gap”between“theWest” and“theDeveloping advocates asimilarshiftinperspective.There isnolongeran The Swedishprofessor andstatisticianHansRosling The worldhascanged 4 TETRA PAK Magazine debit, credit orATM card. phone payments.Manyoftheseconsumerswillneverowna to leapdirectly from usingcashto‘mobilewallets’and growing uparound mobilephones,stimulatingDiPconsumers This couldleadtoanewfinancialservicesinfrastructure in thehandsofhundreds of millionsofnewconsumers. selling forjustEuro 26,which couldpotentiallyputtheInternet 2015, Microsoft unveiledtheNokia 215,asmartphone of DiPconsumerswhohaveaccesstotheInternet.Inearly The biggestshiftsincePrahalad'sstudyin2002isthenumber T competitors. in 2013,whilebeingimitatedbyalmostallofVodafone’s subsidiary, andthenrolled outtoIndiain2011,andEgypt was launchedinKenya2007byVodafone’s Safaricom money transferserviceusingmobilephones.The for DiPconsumersisM-Pesa,abranchlessbankingand From Africa,themostfamousexampleofaservicetailored aking DiPbeyodsoapashampoosacets business? business? why isthissegmentofsuchinterest tothefuture of Boston ConsultingGroup. Giventhatthisisthecase, by theendofdecade,according toresearch by as DiPisprojected toshrink from 33%in2015to28% The proportion oftheworld’s populationclassified As DiPhrinks,temiddleclassgrows where DiPmarketsare generatingexcitement. Mobile recharging servicesisabusinesssector tomorrow’s middleclass. today are gainingaheadstartandwinningtheloyaltyof that are findingwaysto reach consumersonlimitedincomes that iscommonintheUnitedStates andEurope. Companies able toafford goodsin thelarger, more convenientpackaging sachets from hisshopwindoweveryyear. Hiscustomerswillbe he ishangingfewerratherthanmore stripsofbranded At somepointinthenot-too-distantfuture, NoorAliwillfind as a20to25yearrelationship.” up withthatcustomer,” explainsDutta.“Peopleare seeingit you canhookcustomerstoyourbrandearlyon,rise “It’s animportantmarketbecauseincomes are risingand,if their incomesincrease. businesses becomebetterequippedtosupplythemas supporting themwhiletheyare inthislowerincomegroup, The answerissimple.Byconnectingwithconsumersand

The geography of DiP consumers

The economies in countries like Brazil, India, China and Indonesia are expanding. As incomes rise, poverty is falling. Between 2000 and 2010, the number of people living in extreme poverty around the world was cut in half; five years ahead of the goal set by the United Nations. As a result, access to health and education is improving and purchasing power is growing, putting consumer goods in reach, for the first time, of millions of low-income households.

130 million people in Russia and Eastern Europe 93 million people in Latin America 249 million people in Sub-Saharan Africa TETRA PAK Magazine 7

Where are the world’s DiP consumers For the dairy industry, Indonesia, Brazil, Pakistan and Kenya to be found? rank alongside India and China as the most attractive The vast majority of DiP consumers are in Asia, with about markets. Together they represent about 76% of DiP half living in India and China alone. As many as 535 million consumption of liquid dairy products. Mexico, Russia, people live on between Euro 1.80 and Euro 7.20 a day in Thailand, the Philippines and Egypt are also significant China, 460 million people in India, and 150 million in other markets according to World Bank. Asian countries.

Population size is not the whole story Although many Africans also remain trapped at the bottom The number of inhabitants in a country is not necessarily of the pyramid, Sub-Saharan Africa is the next biggest DiP an indicator of the sales potential. Note the differences, market, with some 249 million consumers. There are another for example, among the dairy consumption figures in DiP 130 million in Russia and Eastern Europe, and 93 million in markets. China has the largest population of any country, Latin America. and DiP consumers represent approximately 35% of the total (estimated as 1.36 billion 2015). In spite of their numbers, Chinese consumers only drink around 33 litres of milk per capita per year. Indians, by contrast, consume almost 80 litres per capita per year. So, despite its somewhat smaller population of about 1.25 billion, in terms of total volume India is a significantly larger market, consuming more than 535 million people double the volume of milk consumed in China. in China

460 million people in India

150 million people in other Asian countries

"The vast majority of DiP consumers are in Asia, and live on between €1.80 and €7.20 a day" consumers are alsorural,according to theWorld Bank. poor road connections.Aboutathird ofChina’s low-income Some 70%ofIndia’s populationlivesinvillages,manywith The mixofurbanandruralconsumers alsomakesadifference. Reaching DPcosumers–ruralorurba n? brands, eveniftheyhavenotbeenabletoafford them. minority, sotheywillhavelongbeenexposedtoglobal those earninglessthanEuro 1.80adayare partofapoorer counterparts inRussiaorLatinAmerica.Inthelattertwo, have hadfarlessexposure tointernationalbrandsthantheir at thebottomofpyramid,DiPconsumersare likelyto In IndiaandAfrica,where themajorityofpopulationare population isricherorpoorer thanthe country'saverage. Another majordifference stemsfrom whethertheDiP Exposure toglobalbrands 8

© Lucky Look/Alamy © Lucky Look/Alamy TETRA PAK Magazine easy. of acitywhere yourbusinessisalready wellestablished iscomparatively Extending distributionchannelsandservicesintothelow-incomedistricts divided between countriesremains uncertain, however. people intothemiddle-income section.Howthiswillbe 52% in2011to66%by2020,bringing anextra1,5billion on adailyincomeaboveEuro 7.20isexpectedtorisefrom markets isgrowth expectations.Theworld'spopulation living The mostsignificantdeterminantoftheattractiveness DiP Growth expectations areparamount established iscomparativelyeasy. income districtsofacitywhere yourbusinessisalready well Extending distributionchannelsandservicesintothelow- established inthesemarketsare onlynowstartingtosolve. represents alogisticalchallengewhichevencompanieslong living incities,respectively. Sellingtoruralcustomers on theotherhand,are largely urbanwith85,82and74% The low-incomepopulationsinBrazil,MexicoandIndonesia, © Lucky Look/Alamy 1.3 %. sluggish 2.5%in2013,andRussia atanevenmore downbeat According totheWorld Bank, Brazilgrew atacomparatively up until2017.Elsewhere, however, thepicture islessrosy. with itseconomysettoexpandbetween6and7%everyyear in 2013.Kenyaparticularisprojected toenjoyfastgrowth, Sub-Saharan Africaisalsogrowing fast,withGDPup4.7% China intheperiod. economic growth, overtakingeventhe7.3%reported by months of2014,thecountrypostedanimpressive 7.5%in the world’s fastestgrowing majoreconomy. Inthelastthree 1990s. Now, IndiaiscompetingwithChinaforthetitleof the 1950srightupuntileconomicliberalisationof In India,percapitaincomegrowth averaged just1.3%from Workers headhomeafteradayofworkinginteafieldsKericho,Kenya.

companies gathersmomentum. increasingly important,astheraceamongmultinational the challengestheyface.Finding newwaysofoperatingis world’s DiP consumersare todayare already wellaware of Businesses thatpaycloseattentiontowhoandwhere the New thinkigforewcosumers © Lucky Look/Alamy fastest growing major growing fastest economy." China for the title of the world’s titleofthe China for the "Now, Indiaiscompeting with TETRA PAK Magazine 9

Low income consumers are taking 39% of the global market in liquid dairy consumption.

Who are the world’s DiP consumers?

The world’s 1,5 billion ‘Low income consumers’, classed by the World Bank as those earning between Euro 2.60 and Euro 7.35 per capita a day, represent nearly one third of the entire global market, spending a total of Euro 2,6 trillion every year.

In the food and beverage sector, low income consumers business potential in untapped markets’, by the Boston represent the single biggest segment of the market, worth Consulting Group, they already have a surprisingly large Euro 1,13 billion in 2010. If you narrow that down to dairy combined discretionary income. alone their share is bigger still, taking a full 39% of the global market in liquid dairy consumption. Tetra Pak refers to this While food and drink remain the biggest expense for DiP category of consumers as 'Deeper in the Pyramid', and consumers, they spend 28% of their income on “other defines it as people with between Euro 1.80 and Euro 7.20 necessities”, such as housing, health, education, fuel, to spend daily. transport and medicines, and have 32% remaining for non-essentials such as consumer goods, communications Whichever definition you use, the message is clear. Companies and entertainment. need to find ways to tailor their products to these consumers. Those who succeed will not only open up a lucrative new market segment, they will also be helping hundreds of millions of people live better lives.

What are they buying? 28% As DiP consumers’ disposable income grows and more companies target them specifically, they will only grow in importance. According to ‘The Next Billions: Unleashing monotoomono / Shutterstock.com 12 TETRA PAK Magazine more calcium. distributors asshefeelsitispurer and contains prefers tobuyrawmilkfrom localvendorsand bulk andusedfordrinkingcooking.Rosa Nicaraguan stores) almostdaily. Milkisboughtin Buys householdfoodfrom Pulperias (traditional Shopping habits children andpreparing familymeals. General householdchores includingmindinggrand- Occupation Lives withherfourchildren andeightgrandchildren. Family situation Kenya Nicaragua Name: Florence Age:35 Name: RosaAge:65 Based onourresearch around theworld,Tetra Pakhasdeveloped some typical DiP personas – in an effort to give these two billion some typicalDiPpersonas–inaneffort togivethesetwobillion consumers anidentityandhelpusunderstandtheirreality: nice clothingandmake-up. able toafford personalitems suchasamobilephone, to behealthyandeducated.She wouldalsoliketobe children getthefoodtheyneed)andforherchildren give uponeoftheirownmeals inorder toensure her put foodonthetable(currently theadultsoccasionally To grow herbusinessinorder toafford therent and Aspirations She alsolikestobrowse inthelocalmall. vegetables atthemarket,localstores andkiosks. Florence commonlyshopsforfish,meatand Shopping habits Omena fishtrader. Occupation Lives withhersisterandtwochildren. Separated. Family situation strength deteriorates. help withhouseworkasshegetsolderandher dreams cometrue.Rosaalso hopestogetmore healthy, educated adultsandhelpmaketheir To watchhergrandchildren grow into strong, Aspirations TETRA PAK Magazine 13

Egypt Nicaragua Name: Elham Age: 20 Family situation Lives in a 60 m2 apartment with her husband, who is a government employee, and their two children.

Occupation Nursery teacher.

Shopping habits Elham shops at the grocery shop and local mini market that she has been dealing with for years. She cooks vegetables, pasta or rice and salads every day and chicken or other meat once or twice a week.

Aspirations Her priority is her two children, their health, well- being and education. She is pushing her husband, Shawky, to find a higher-paying job in the private sector or an afternoon shift to raise the family’s standard of living.

India

Name: Naduni Age: 30 Family situation Married with one child.

Occupation Teacher. Studying for an MA.

Shopping habits Naduni visits the local supermarket and Kirana a few times a week to buy household items such as food and granulated coffee.

Aspirations Naduni is career driven and feels working is an important way for women to gain knowledge. She wants the best for her child and is encouraging her to learn English so that she can one day forge a career for herself as a white-collar worker. 14 TETRA PAK Magazine

Check list!

The nature of DiP consumers varies between countries and regions in ways which are significant for companies trying to reach them. In fact, one of the biggest mistakes global companies can make is to assume that the same strategies will work everywhere. Here are a few pointers:

Challenge

1. Cash flow

Distinguishing needs 2. and wants

Scattered sales 3. and distribution

4. Unreliable suppliers

Underdeveloped 5. business ecosystems

6. Social benefit © Tetra Pak Image Bank © Tetra TETRA PAK Magazine 15

Don’t Do

Assume regular spending patterns. DiP consumers Sell low cost products in small quantities, typically live in uncertainty, have little capital and are minimise high up-front payments and focus paid sporadically. on affordable quality.

Rely on costly marketing. An example: Procter & Focus on real needs. Mobile phone financial Gamble’s PUR water purification system didn’t sell services such as M-Pesa transfers money at conventionally, now it’s a social enterprise. 33% of the cost of traditional companies.

Build a dedicated market channel. Team up with Think two billion consumers are easy to reach. partners for market reach such as Hindustan DiP consumers are often rural and remote so contact Unilever's Shakti project. (Hindustan Unilever is is difficult. the Indian subsidiary of Unilever PLC).

Take quality for granted. Access to high-quality inputs, Engage, train and partner with suppliers, training and credit is tricky for small DiP suppliers. like Schneider Electric’s BipBop programme.

Engage and enable your suppliers. Try Assume getting what you need — information, repairs using IT and mobile apps to develop the or maintenance — is easy. business ecosystem like Esoko.

Demonstrate that commercial returns Rush! Building trust among DiP consumers takes time. enhance community development for all. Studio Ola Lager Long before themodernfoodindustry, milkwascarriedingoatskinandwinepreseved inclaypots. 16 what’s good. people around theworldhistorically, andstilltoday, protect cuisines. Here welookatsomeofthetraditionalwaysin which exciting flavours,addingnewdimensionsto theworld’s of The questtopreserve foodhasalsoledtothediscovery TETRA PAK Magazine prevent spoilage, to ofscarcity, get through periods orto facilitate isthousandsofyears transport, old. Although this specific technique is a relatively modern invention, the idea of preserving food Although thisspecific techniqueto isa invention,relatively the ideaofpreserving modern The Institute ofFood Technologists innovation food as‘thegreatest ofthetwentieth century’. Tetra Pak pioneered by ofaseptic thedevelopment inthe1960s.Itwas packaging described The quest to preserve The quest to preserve food anddrink

© Lucky Look/Alamy Japanese dried fishandrice. rays todryslices ofmeat,theChinesedried eggs andthe thrive. NorthAmericanIndians, forexample,usedthesun’s inhibits thegrowth ofmicroorganisms thatneedwaterto since prehistoric times.Byevaporatingmoisture, dehydration Dehydration isoneoftheoldest preservation methods,used The powerofthsun © Tetra Pak Image Bank Western world through traderoutes. Indianpickles,called and theOrient, afterwhichtheywere introduced tothe Salt-pickled foodsare believedtohaveoriginatedinIndia as impartingadeliciouslysavoury tang. from growing, ensuring thatitisfree ofcontaminantsaswell Increasing thesalinityoforganic matterprevents pathogens Salting foodswasanotherpopularpreservation method. The salt oftheearth the portabilityofthishighlynutritioussubstance. and dryingmilkliquidsinthesuntoextendshelflife credited withdevelopingamethodofboiling,skimming, carried dehydratedmilkontheirjourneys.TheMongolsare milk tothemasses,GenghisKhanandhisinvadinghordes Long before themodern food industrybrought powdered Tetra Pakpioneered thedevelopmentofasepticpackagingin1960s.

the winter, andpicklingtheminasaltsolution wastheanswer. find awaytomakecabbage, mushrooms andcucumbers last - orsolenie(solistheRussianword forsalt).Peasantshadto growing seasonandharshwinters,bred apassionforpickling Russia’s proximity toAsia,coupledwitharelatively short after beingpickled. in fact,somefoods,suchasplums,were onlyconsumed pickled everything-vegetables,meat,fruit,andnuts petals, jackfruit,lotusstem,andpurpleyam.TheChinese can alsobemadefrom exotic ingredients suchasrose achaar, are commonlymadefrom mangoandlime,but

17 © Shutterstock in sheepskinbags turnedintoatart,creamy solid: millennium BC.Goatherders discovered thatmilktransported The accidentaldiscoveryofyoghurt datesbacktothethird person’s overall diet,dependingontheirculture. foods andbeveragescanmakeupasmuchof40%a soy sauce,tempeh(ornatto),ketchup,andmiso.Fermented way, includingyoghurt,cheese,chocolate,bread, coffee, Some oftheworld’s mostpopularfoodsare created this vegetables andfruit. used toprolong thelifespanofmeat,dairy, grains,legumes, conditions -originatedintheNeolithicage,andcanbe in whichfoodisallowedto“gobad”undercontrolled one ofthemostcounterintuitive.Fermentation-aprocess One ofthemostversatilemethodspreserving foodisalso Curdled, spoiled,andsoured conditions. controlled food isallowed to “go bad”under inwhich —aprocess Fermentation during thelongwinters. Kimchi wascrucialinenablingKoreans toconsumeenoughvegetables 18 TETRA PAK Magazine

BC. Kimchiwas crucialinenablingKoreans toconsume vegetable whoseinventionmay datebackasfar1,000 kimchi, thecrunchy, spicy, pungentfermented-and-pickled And nolistoffermentedfoods wouldbecompletewithout described as“Brazil’s answertoFrench fries.” many favouritedishes,includingadeep-friedversionthatis whole villagetogether. Today, farinhastillformsthebasisof in atime-consuming,multi-stepprocess thatbrought the had tobesoaked,ground, pressed, andtoastedbyhand flour withamellow, nuttyflavourcalledfarinha.Theharvest transform itfrom abitterandpoisonousroot intoaversatile In Brazil,indigenousgroupsto fermentedtheyucaorcassava Turkish word meaningcurdled orcoagulated. process. Theword “yoghurt”actuallyderivesfrom anancient the bacteriainanimalskinsetoff the fermentation TETRA PAK Magazine 19

The aseptic technology makes a huge difference to the everyday lives of low-income consumers.

Approximately two-thirds of Tetra Pak® packages sold worldwide are aseptic.

enough vegetables during the long winters, but today, even effectively during a natural disaster such as an earthquake, with fresh vegetables available year-round, kimchi remains a flood, or draught — with no refrigeration required. hugely popular food. It’s estimated that Koreans continue to eat 18 kg of this spicy-sour condiment per person per year, The aseptic approach is as good for the planet as it is for choosing from more than 180 different varieties available. consumers, since it reduces food waste and eliminates the energy required to control temperatures during Aseptic technology takes food a step further transportation and storage. These cost and environmental By creating an aseptic environment where harmful bacteria efficiencies help producers reduce their carbon footprint are eliminated, Tetra Pak has created a processing and while becoming increasingly competitive. packaging standard that keeps food fresh, tasty, appealing and nutritious for up to a year without the need for Today, approximately two-thirds of Tetra Pak packages sold preservatives or refrigeration. worldwide are aseptic, and the demand is set to grow as new consumers acquire the means to purchase packaged goods This technology already makes a huge difference to the for the first time. everyday lives of consumers, regardless of their income, who might not otherwise have access to milk or other dairy products. It also helps organisations deliver food cost- Scoreit AB/Fredrik Collijn manufacturers venturingintoDiP territory. income consumers.Theyprovide ausefulchecklistforfoodandbeverage been definedasthekeysuccessfactorsin reaching andappealingtolow The 3A’s —shortforavailability,affordability andattractiveness—have the industrialisedworld? people whohavesomuchlesspurchasing powerthantheircounterpartsin What shouldyouthinkaboutwhendevelopingproducts tomeettheneedsof success f Wha t arethkey actors? TETRA PAK Magazine 21

Availability First, obvious as it may sound, the product must be easily available to the DiP consumer. Achieving this means setting up functioning distribution logistics, getting government permits and licenses, and offering practical merchandising solutions to retailers.

Affordability Second, the product must be priced within the consumers’ ability to buy it. And consumers — especially parents buying food for their children — must experience superior value for money. It’s got to be within range and worth it.

Attractiveness Third, the product must be attractive. This is not just about visual appearance. It’s also about offering nutritious contents, quality, convenience and aspirational value — in an environmentally and socially responsible manner. Quite simply, does it motivate a purchase? 22 TETRA PAK Magazine

Farmers receive SMS messages to co-ordinate crop spraying.

Sustainability, and the importance of a whole ecosystem approach

Engaging Deeper in the Pyramid involves more than just reducing cost or focusing on ‘frugal innovation’. Products and services need to be not just available, affordable and attractive, but also sustainable and relevant to local cultural and economic contexts.

To work, all the parts of the puzzle must come together, Some examples of ventures that successfully address the creating a whole ecosystem approach. Commercial activity issues are: that benefits the entire value chain helps grow a sustainable business where everyone plays a part. And with strong, deep IT: supporting the farming ecosystem roots, economic success throughout the economic cycle is Mobile phones are fast becoming essential tools for more likely. entrepreneurs emerging from poverty. Esoko is an IT pioneer, providing a mobile platform in eleven African countries. Esoko apps provide local weather information, giving farmers a better chance to plant and harvest their crops at optimum times and therefore increasing their value. The apps also offer intelligence on the latest crop prices — a great support tool TETRA PAK Magazine 23

Patrimonio Hoy, a subsidiary of Mexican cement manufacturer Cemex, sells home improvement packages.

Project Shakti is a rural village distribution initiative.

for farmers negotiating good prices at market. Bobo-Dioulas- Unilever plans to increase the number of Shakti entrepreneurs so in western Burkina Faso is in the heart of the mango-grow- recruited, and trained globally from 45,000 in 2010 to 75,000 ing region. Here, Esoko technology was used to help prevent by end of 2015. insects from attacking crops. SMS messages were sent to farmers in the area to co-ordinate the spraying of ripening Patrimonio Hoy: Tailored, low-risk solutions mangoes. By working together through mobile technology, You might expect DiP customers to seek low-cost above all farmers were able to cut crop losses by 3,000 metric tonnes else, but the experience of successful businesses working and increase the length of the growing season. Deeper in the Pyramid shows that smart, low-risk solutions trump rock-bottom prices. Patrimonio Hoy, a subsidiary of

Shakti: solving the distribution challenge Mexican cement manufacturer Cemex, sells home improvement in India packages. Customers are willing to pay a 26% premium over Starting with 17 women in one Indian State, project Shakti the cost of building materials for complementary services. is a rural village distribution initiative. The project expands This ‘membership fee’ protects them from price rises, includes the sales reach of Hindustan Unilever while creating architectural advice, flexible delivery to avoid theft of building livelihood opportunities for underprivileged rural women. materials and manageable weekly payments. It’s working: Today, over 65,000 Shakti entrepreneurs, or ‘Ammas’, earn in the Net Promoter Score Patrimonio Hoy uses to track around 1,000 Indian rupees (Euro 13) per month, distributing customer satisfaction, the company scored a remarkable in over 165,000 villages to some four million rural households. 90% average in 2011. repayment rate—higherthanthe96%averageforaUS bank. contract andfocusedonthemost needy, boastsa98% loan owned byitsborrowers withloansmadeontrustratherthan 6,74 millionborrowers, 97%ofwhowere women.Thebank, made 7,38millionloanswithoutcollateral,helpingover Founded in1983Bangladesh,2013GrameenBank than alostcause,asmanyhadassumed. the unbankedare anexcellentbusinessprospect rather conventional lendingstrategyonitsheadbyproving that and mostfamousexampleofamicrocredit lender, turned have oftenbeendenied.GrameenBank,thepioneering inclusion, butit’s aservicethatpeopleonverylowincomes Access tocredit isanimportant catalystforeconomic Grameen Bak:Cotract-free microcredit 24

© Grameen Bank and Mohammed Yunus TETRA PAK Magazine conservative localstotryanew product orservice. to opinionleadersalsoproved goodwaystopersuade Seeking endorsementfrom villagechiefsandoffering free trials information source in our target consumers’ purchase decision.” we understoodthatword-of-mouth wasamore important marketing campaignsonTVandradiowithonlyaverageresults, the distributionofover1,8millionstoves,explains:“Afterthree Improved CookStoveprogramme inCambodia,whichoversaw for theEnvironment, RenewableEnergy andSolidarity(GERES) the DiPsegment.IwanBaskoro, Technical ManagerofGroup demonstrations isamarketingmustforreaching consumersin into sales.Instead,abelow-the-linefocuslikevillage-level awareness, butinthePyramid they’re unlikelytotranslate Billboards, radioandTVads mayraiseproduct andservice GERES Powerfulbelow-the-line marketig The bank, ownedThe bank, by itsborrowers with loansmadeontrust. with

© Lucky Look/Alamy value. They therefore setouttosimplifyproducts anddelivermore over-engineered technologycanbeintimidatingformany. emerging marketconsumerneedsbroadly, todiscoverthat Similarly, Dutchelectronics firmPhilipsapplieditsfocuson saw annualsalesrisefrom 23,000to430,000carsin2013. Dacia Loganataround Euro 6,000in2004.Itsglobalsuccess Renault-Nissan launcheditslow-cost,multi-award winning that ‘frugalengineering’canexceedconsumerexpectations, sometimes beappliedinmature markets too.Convinced economies, itisinteresting tonote thatthelessonscan While newbusinessideasare transforming emerging Learnig fromeachoter Village-level demonstrationsisamarketingmustforreachingVillage-level DiPcustomers. "We word-of-mouth that understood was a more important information information important was amore source in our target consumers’ consumers’ inourtarget source purchase decision" purchase TETRA PAK Magazine

In the food and beverage industry, we are exploring innovative business models, and forming alliances with public and private organisations to meet DiP consumer needs.

Food for Development Tetra Pak’s Food for Development Office (FfDO) conducts we worked in public-private partnership with the Ecuadorian a range of activities designed to serve DiP customers and Government to develop an innovative, nutritious drink - milk consumers, enabling further penetration into the emerging with the popular local cereal quinoa. The drink is distributed markets. For example, as part of our School Milk Programme to schoolchildren, making milk a regular part of their diet.

Milk with quinoa Combining milk and quinoa (a high-protein, grain like seed) might not sound like an obvious recipe for success, but in Ecuador, where it is distributed daily to schoolchildren, it’s a hit. What’s more, this innovative, nutritious drink makes milk a regular part of the children’s diet. Tetra Pak collaborated with the Government to develop this new milk with quinoa product. The initiative was part of our School Milk Programme. 28 TETRA PAK Magazine

Fortified UHT yoghurt

in Ecuador Tetra Pak’s Food for Development Office and the Global Alliance of Improved Nutrition (GAIN) partnership addresses infant malnutrition with a nutritious, low-cost product.

Tetra Pak’s Food for Development Office and GAIN evaluated the possibility of utilising Tetra Pak® aseptic Our cooperation has led to positive results for local packages to help address the high rates of malnutrition in consumers: Ecuador. ✔ Thanks to financial support from GAIN and the At the same time, Tetra Pak’s customer Reybanpac, International Finance Corporation (IFC), it was part of the Favorita Group, was looking for a nutritious possible to bring the new product to low- product to help reduce malnutrition among low-income income consumers in an affordable package. families and especially infants aged from 6 to 24 months. ✔ Even DiP consumers can afford Lenutrit, which has a target price of around Euro 0.17. Research conducted into the target market showed that 80% of mothers gave their children yoghurt as a ✔ Lenutrit comes in vanilla, strawberry and complement to breast milk. They spent an average of peach flavours. So, besides having a clear Euro 2.20 per child each week on yoghurt, and over half nutritional value, it is also very appealing to (52%) preferred single serving packages. consumers. ✔ It is readily available through a huge network In December 2013, Reybanpac launched a product called of local corner shops and drug stores. Lenutrit. This low-sugar UHT yoghurt is made with milk and whey, and fortified with vitamins and minerals. It is packed in Tetra Classic® Aseptic 110 ml packages, a safe affordable carton package that matches the product and the target group’s needs.

White cheese in Egypt Revitalisation of a traditional product category in DiP markets

Traditionally, white cheese has been sold loose, with no guarantee of hygiene. Now, as volumes grow, loose cheese is increasingly being converted into packaged products.

With 45 Tetra Pak® filling machines running at 11 different White cheese is not a new product. Indeed, varieties customer sites, Egypt is currently leading the trend in of white cheese are a traditional component of many packaging white cheese in aseptic cartons. The product is a regional diets in Southern Europe, North Africa and the staple in Egyptian households, where 49% of the population Middle East. are classified as DiP consumers (around 40 million people). TETRA PAK Magazine 29

Fortified UHT yoghurt Dairy Hubs in Bangladesh Driving the change from farming for survival in Ecuador to commercial milk production in Bangladesh. Tetra Pak’s Food for Development Office and the Global Alliance of Improved Nutrition (GAIN) partnership addresses infant malnutrition with a nutritious, low-cost product. Our Dairy Hubs around the world help boost milk production and stimulate efficiency and knowledge exchange throughout the value chain. With the creation of the Chatmohar Dairy Hub in Bangladesh, daily milk production per cow rose from 4.5 litres to over 10 litres and income more than doubled from October 2010 to December 2013, generating a better milk supply and more business for our customers.

✔ Tetra Pak's Food for Development Office has developed the Dairy Hub concept to help customers in emerging markets access more and better locally produced milk. Together with PRAN ✔ The average daily milk yield per cow has risen Dairy Ltd in Bangladesh a first Dairy Hub project from 4.5 litres to more than 10 litres over the last was established in Pabna in 2010, and another four years. in Natore in 2011. Besides collecting and testing the milk, these hubs also provide training and run ✔ There has been a five-fold increase in the number a demonstration farm that supports PRAN’s own of farmers moving from producing milk for family Dairy Academy, sharing knowledge and best consumption to commercial milk production as a practices. Both hubs are now yielding positive source of income, thus securing a steady supply results throughout the value chain. of quality milk. ✔ The average income for small holder farmers ✔ Low-income consumers have access to affordable, has increased by 137% over the last four years. nutritious, locally produced milk.

As a fast growing product category, white cheese provides interesting business opportunities White cheese in Egypt for other DiP markets: Revitalisation of a traditional product category in DiP markets ✔ Packaged in Tetra Pak® cartons, white cheese is ✔ Consumption increases indicate excellent business an affordable and safe source of protein for DiP potential, not only in Egypt but also the Maghreb, consumers. Turkey and other countries. ✔ The products have a long shelf life and can be stored easily without refrigeration. ✔ Producers can formulate their recipes to reduce costs by e.g. using vegetable oil instead of butter fat. ✔ Offering white cheese in smaller size packages is proving a successful strategy in Egypt, and opens up the market to more consumers. 30 TETRA PAK Magazine

Innovating to reach deeper into the pyramid

Aseptic processing and packaging innovations from Tetra Pak have already benefitted billions, bringing nutritious, vitamin-rich milk and juice-based products to children and families all year-round in places without reliable refrigeration, modern logistics routes, or sanitary food-preparation facilities. negligible materialwaste,canmeetthischallenge. long cylindersofpackagingmaterialwithnofoldsand Tetra Classic and canmore likelyafford tobuy. Smallversionsofthe in quantitiesthatpeopleneedataparticularmoment, portion packages,from 65mlto 200ml,provides contents One wayistoreduce thepackage size.Deliveringsmall income counterparts.Howdowethat? in thePyramidconsumersasthoseenjoyedbytheirhigher that bringthesameproduct protection benefitsto Deeper We continuallystrivetodesignnew, more affordable packages Affordable packages foraffordableproducts than everbefore. now helpingourcustomersreach deeperintothepyramid such aspackagesize,merchandising andpricing–thatare Still, there are numerous additionalinnovations–inareas ® Aseptic,theoriginaltetrahedron cut from Another exampleisTetra Wedge Escherichia coli (E. coli), Campylobacter and Salmonella. Escherichia coli(E.coli),CampylobacterandSalmonella. with viruses,bacteriaandparasitecontaminationsuchas advantages includingareduction inthehealthrisksassociated like IndiaandBangladesh.Thischangebringsawealthof conversion ofloosemilktohygienicpackagedinmarkets Tetra FinoAseptichaslongbeencontributingtothegradual the distributionchain,atlowestpossiblecost. ensure product protection andsurviverough handlingin or pouchmadewiththelowestweightpaperboard to Tetra Brik volumes andmaterialsbyreplacing theflattopof A third exampleistheTetra Fino and on-packpromotions. surface, whichmakesagreat billboard forinnovative graphics has theadditionaladvantageofabroad consumer-facing ® Aseptic with a wedge-shaped top. This package Asepticwithawedge-shapedtop.Thispackage ® ® Aseptic package – a pillow Asepticpackage–apillow Aseptic, which reduces Aseptic,whichreduces TETRA PAK Magazine

© Tetra Pak/Felix Oppenheim keeping them safe from dust, insects and other pests. keeping themsafefrom dust,insectsandotherpests. jars –makesitpossibletotransport anddisplayproducts while Another typeofsecondarypackaging –large translucent plastic kiosks, overcoming thelackofshelfspace. stands makeitpossibletodisplayproducts intinystallsand These andshelf-replacing dispenserboxes,trays,racks,and Tetra FinoAsepticpackagescanbedistributed inchains. to DiPmarkets.Forexample,Tetra ClassicAsepticand configurations thatmanyconsumerbrandshaveadapted attractive, functionalandspace-savingmerchandising Another area ofinnovationinvolvesthegrowing varietyof Distribution addisplay to Iran,Egypt,Morocco andPakistan. Over thelast15years,programme hasbeenexpanded nutrition and,atthesametime,increases milkconsumption. contaminated. Ithelpsraiseawareness aboutfoodhygieneand instead ofre-used bottlesorplastic bags,whichare often in 2000,promotes theconsumption ofmilkinsafepackages Our LooseMilkConversionInitiative,whichbeganinTurkey Loose MilkConversio

© Tetra Pak/Felix Oppenheim truck, bicycle, motorbike, tuk-tuk or boat. truck, bicycle,motorbike,tuk-tukorboat. conditions, andlongtransportstretches onanopenbacked also havetoholdupwellwhensubjectedhot,humidstorage As eye-catchingandcleverastheseconfigurationsmaybe,they Tetra Fino® Aseptic packages can be distributed inchains. can bedistributed Tetra Classic®Aseptic and TETRA PAK Magazine 33

Scoreit AB/Fredrik Collijn 34 TETRA PAK Magazine Modifying, or tweaking the recipe can can recipe Modifying, ortweaking the involve replacing a more expensive involve expensive amore replacing ingredient with a cheaper one. acheaper with ingredient Optisizing successfully. IndonesianandIndian customers haveallused Vietnamese, Aseptic from 100mldownto70ml,orfrom 250mlto220ml. This methodhasbeenusedin graduallycyclingTetra Fino kits from Tetra Pakthatactuallyreduce thesizeofpackages. Optisizing refers toinexpensive,relatively simplemachine and reducing customersystemcosts. of triedandtestedtechniques:Optisizing,recipe-tweaking The questionis,howcanitbedone?Tetra Pakoffers arange too expensiveorunprofitable. price point,thebrandcan’t compete.Itwilleitherbecome along withanecessaryproduct margin, exceedthisone-coin many brands.Ifthecostofpackagepluscontent, snack. Stayingattheone-coinpricepointisessentialfor The averagepersoncanjustifyspendingitonadrinkor practically everybodycarriesintheirpockets.It’s ready cash. In almosteverycountry, there isasmallcoinornotethat The magicalone-coipricepoit ®

developed retail sector. power, alackofelectricityand refrigeration, oranunder- markets byaddressing thechallengesoflowerpurchasing Chain Servicestohelpfigure outnewwaysofservingtheDiP We inviteourcustomerstotakeadvantageofValue position tohelpproduct brandsdeveloptherightstrategies. ourgrowing knowledgeinthisfield, With Tetra Pakisina value chainalongtheruggedpathwaysintoDiPmarkets. the longvieware allneededwhensustainingaproduct’s Flexibility, agility, knowledgeaboutspecificmarkets,and V production speed. that, forexample,reduce electricityconsumptionorincrease Reducing systemcostsusuallyentailsengineeringefforts replacing amore expensiveingredient withacheaperone. system costs.Modifying,ortweakingtherecipe caninvolve Two othertechniquesare modifyingtherecipe and reducing alue ChainServices TETRA PAK Magazine 35

© Tetra Pak © Lucky Look/Alamy 36 People on low incomes will, in time, migrate towards a more middle-class lifestyle People towards onlow incomeswill,intime,migrate middle-class amore TETRA PAK Magazine There are strong incentives and beverage todayfood for manufacturers to tailor products for Co-innovation speedsup the very specific needs of lower income consumer groups. specific needsoflower incomeconsumer the very time to market term opportunity, asitisabout addressing near-term need. lower incomegroups todayisasmuchabout securinglong- steering preference. For manufacturers, therefore, focusingon grow andestablishedbrandloyaltieswillplayastrong role in towards amore middle-class lifestyle,whenconsumptionwill many ofthosecurrently onlowincomeswill,intime,migrate food forthissectorofsocietyisstillinshortsupply. Andthird, First, there are manysuchgroups! Second,safe,high-quality People on low incomes will, in time, migrate towards a more middle-class lifestyle People towards onlow incomeswill,intime,migrate middle-class amore sizes, are a relatively swiftmeanstoachieving thatgoal. of product insideapackage,oroffering smallerpackage achieve thisindifferent ways.Forsome,reducing thequantity they are bothwillingandabletopay. Different companies that meetstheconsumer’s valueexpectationsforanamount A keyconsiderationispricepoint — deliveringaproduct Focus onlow-price, hig-value ingrediets from countrytoandregion toregion! of thisspecificsegmentsociety, whichvaryconsiderably be basedonthecultures, lifestyles,conditionsandaspirations Deeper inthePyramid(DiP).Products forDiPconsumersmust new consumercategory, noweuphemisticallyreferred toas Different approaches are needed,therefore, toaddress this infrastructure toresource availabilityandlevelsofincome. markets. There are manyreasons forthis,from climatesand the developedworldandpastethemontolowerincome existing products, packaging, anddistributionmethodsfrom Experience hasshownthatfoodmarketerscannotsimplycopy No roomforcopy/paste

significantly to thecost. example withvitamins, toenhanceitsvalue without adding increasingly widespread approach, istofortifyproducts, for texture andqualityatalowerprice.Whilethird, and ingredients thatallowthemtodelivercomparabletaste, product’s formulation,findingalternatives tomore expensive For others,thefocusisonreducing thecostof Focusing onlower incomegroups today is as much about securing today aboutsecuring isasmuch long-term opportunity.long-term TETRA PAK Magazine 37 Denton, USA © Tetra Pak consumers. Applyinganopen, co-innovativeapproach, at bringingaffordable, nutritiouspackagedproducts toDiP around theworldare thesceneofmuchinnovationaimed Tetra Pak’s pilotplants andfooddevelopmentlaboratories Tetra P of successinthismarket;thebenefitsshouldbemadeclear. grabbing marketingcampaignsare therefore keyelements products withtheseadded.Informativeandattention- A andDare lackinginthe localdiet,sotheylookfor South-East Asia,forexample,thepublicknowsthatvitamins nutritional value,foodsafetyandotherobjectivefactors.In the world,andDiPconsumersmakechoicesbasedon extensive useofinternet-connectedsmartphonesaround Information todaytravelsquickly, especiallywiththe consumers isthatlessincomedoesnotmeanselective. One criticalconsiderationincateringfortheneedsofDiP Discernig cosumers 38 TETRA PAK Magazine • tres ak’s ProductDevelopmentCetres Campinas, Brazil • Le May, France • Aarhus,Denmark • Gorredijk, Netherlands new products fortheDiPmarkets.” we canhelpthemmoveaheadquicklyandco-create exciting willing toshare detailsaboutwhattheywant.Inthisclimate package anditscontents.Ithelpsthattoday’s customers are Centre inSingapore, “Afoodproduct consistsofboththe Says DavidCheng,ofTetra Pak’s Product Development dynamic marketspunishinflexibilityandslow responses. mind-set isthatitincreases speedtomarket;today’s packaging expertise.Akeyadvantageofthisinnovation ingredient suppliersandwith ourownprocessing and we connectourcustomersinthefoodindustrywith • Lund, Sweden • Pune,India • Singapore • Shanghai, China Singapore • Gotemba, Japan drink are soldinTetra Classic including ParleAgro Foods, Frooti mango need forlowpricepoint,severalbrands, many DiPconsumerslive.To supportthe favourable tomangogrowing andwhere Tropic ofCapricorn),where theclimateis between theTropic ofCancerandthe over thetropics, (thecountries thatlie Mango-flavoured drinksare popularall Mango drinks off asinglepackagetobuy. consumers cansimplytear and, astheyare perforated, space butstillgethighvisibility as thesechainsdon’t takeanycounter Merchandising comeseasy forcustomers the wallsofsmallstreet stands andkiosks. that canbehunginthewindowsandon 90 mlchains,astringofeightpackages

® Aseptic Aseptic

© Tetra Pak in Singapore. of Tetra Pak’s Product DevelopmentCentre aspiring globalconsumers.” SaysDavidCheng they canafford, atangible signofprogress for who couldn’t afford milkatallhaveakindof the PhilippinesandIndonesiatoo.“Now, people seven toeightyearsandisontheriseinVietnam, DiP consumersinChinaandKorea overthepast drinks. LADhasbeengrowing inpopularitywith stabilisers are thenaddedtocreate fun,refreshing a dairysource, sugarandacidulant.Flavouring These drinksare normallymadefrom amixture of drinks thatare ideallysuitedtotheDiPmarket. Lactic aciddrinks(LAD)formawholecategoryof Lactic aciddrinks TETRA PAK Magazine

© Shutterstock 39 over fourbillionfrom sometwobilliontoday. with overEuro 9perdaytospendare expectedtoswell economic pyramid.By2030,the emerging middleclasses incomes willthriveasnewconsumersriseupthesocio- that successfullymeettheneedsofthosewithgrowing aprojected populationgrowthWith of1,1billion,enterprises these areas willhavetripled. in developingregions likeAfricaandAsiainvestmentin World Bankexpects70%ofglobaleconomicgrowth tobe Emerging marketsare thenewgrowth frontier. By2030,the 40 TETRA PAK Magazine A brighter future for future A brighter four billionpeople four

markets alsocreates abrighterfuture forourindustry. of customers,retailers andconsumersintomorrow’s biggest distribution solutionsandfilledproducts. Meetingtheneeds new packagingformatsandmodularequipment,to new ventures currently transformingthesemarkets—through At Tetra Pak,we’re excitedtobepartoftheinnovative

© Tetra Pak/Felix Oppenheim TETRA PAK PROCESSING AND PACKAGING SYSTEMS ARE MARKETED BY, AMONG OTHERS Dear reader, Arabia Area Tetra Pak Manufacturing Ltd Indonesia PT Tetra Pak Indonesia Russia and Belarus Tetra Pak A/O With the Tetra Pak Magazine we aim to provide a relevant, Lot 88-103, Phase 3, Jcci, Warehouse City Jl. Buncit Raya Kav.100, Lantai 3 Jakarta 12510 8, Wilhelm Pieck Street, 129226, Moscow, informative and interesting read. With this in mind, we would 21413 Jeddah, Saudi Arabia Tel +62-21 7917 8000 Tel: +7 495 787 8000 Tel +966-2 635 1515 Iran Tetra Pak Iran Serbia Tetra Pak Production d.o.o. Beograd very much appreciate hearing your views and ask you to Argentina and Uruguay Tetra Pak SRL 1st floor, No. 2540, Vali Asr Avenue Milutina Milankovića 11b, 11070 Belgrade please complete the feedback form using the link below. Uruguay 2887, Victoria B1644HJI, Pcia de Buenos Aires 1435674173 Tehran Tel: 389 2 3170 199 Tel +54 11 4725 7600 Tel +98 21 821 390 00 South Africa Tetra Pak South Africa (Pty) Ltd Thank you in advance for sharing your suggestions with us. Australia Tetra Pak Marketing Pty Ltd Ireland Tetra Pak Ireland Ltd 100 Electron Avenues Isando, Gauteng 1600 Julie Trolley, Editor 2A Hill Road, Homebush Bay, N.S.W. 2127 5th Floor, 1 Tuansgate, Belgard Square East, Tel: +27 11 570 3000 Tel +61-2 8719 7300 Tallaght, Dublin 24 Spain Tetra Pak Ibéria Austria Tetra Pak GmbH Tel +353-1 467 8000 Latón, 8 (Poligono Finanzauto) The Tetra Pak Magazine is now available to download to your Leopold-Böhm-Straße 12, 1030 Vienna, Austria Italy Tetra Pak Italiana SpA 28500 Arganda del Rey (Madrid) tablet or smartphone. Scan the code or go to the link below Tel +43 1 897 22 00 Viale della Resistenza 56/A, 42048 Rubiera (RE) Tel +34-91 876 9500 Baltic States Tetra Pak Baltic States Tel +39-0522 263 411 Sweden and Denmark Tetra Pak Sweden AB to find the app. K. Ulmana gatve 86 f. Riga, Latvia Japan Nihon Tetra Pak K.K. Ruben Rausings gata, 221 86 Lund www.tetrapak.com/magazine Tel +371-760 2000 Iidabashi Grand Bloom, 2-10, Fujimi, Chiyoda-ku, Tel: +46 46 36 10 00 Belgium Tetra Pak Belgium NV/SA Tokyo 102-0071 Switzerland Tetra Pak Mid Europe A.Gossetlaan 28A Bus 1, 1702 Groot Bijgaarden Tel: +81 3 5211 2021 Europastrasse 30, 8152 Glattbrugg Tel +32-2467 6811 Kenya and East Africa Tetra Pak Kenya Ltd Tel +41-44 804 6600 Brazil and Paraguay Tetra Pak Ltda ICEA Lion Centre, West Wing,1st Floor, Taiwan Tetra Pak Taiwan Ltd Av.das Nações Unidas,4777– 10° andar Riverside Park, Chiromo Road, Westlands, 4, Wenming 3rd Street, Guishan District, Ed.Villa-Lobos – Alto de Pinheiros P.O Box 78340-00507 Nairobi Taoyuan City 33383 05477-000 São Paulo, SP Tel. +254 20 427 8000 Tel: +886 3 328 3111 Tel +55-11 5501 3200 Korea Tetra Pak Korea Thailand Tetra Pak (Thailand) Ltd. Canada Tetra Pak Canada Inc 7F Hyundai Ansung Tower, 217 Itaewon-ro, 689 Bhiraj Tower, 36th Floor, Sukhumvit Road (Soi 35), 777 Bay Street, Suite 2902, Toronto MGG 2C8 Yongsan-gu, Seoul 140-893 Klongton Nua, Wattana, Bangkok 10110 Tel +1 647 775 1854 Tel: +82 2 799 2302 Tel: +66 2 018 3000 Central America and Caribbean Tetra Pak S.A. Malaysia and Singapore Tetra Pak (Malaysia) Sdn Bhd Turkey Tetra Pak AS Ave. Samuel Lewis y Calle 55 Obarrio 1201 Level 12 Uptown 2, No.2 Jalan Ayazaga Atatürk Oto Sanayi Sitesi, Edificio Plaza Globus, piso 7,Panama SS21/37 Damansara Uptown, Büyükdere Cad. Nurol Plaza, No.225 A Blok K.10 Tel +507 2085800 47400 Petaling Jaya, Selangor Darul Ehsan 34398 Maslak, Istanbul Central Asia Tetra Pak Kazakhstan Ltd Tel +603 7724 7000 Tel: +90 444 68 78 22 Zenkov Street, 050010 Almaty, Kazakhstan Mexico Tetra Pak SA de CV Ukraine Tetra Pak Ukraine Tel +7 727 259 84 00 Av.Ejército Nacional 843-B, Antara Polanco, 82, Mezgyhirska Street, 04655, Kyiv Chile Tetra Pak de Chile Ltda Torre Paseo, Acceso A-Piso 2, Col.Granada, Tel: +380 44 3542424 Av. Apoquindo 5400, Piso 4, Del.Miguel Hidalgo, C.P.11520 México, D.F. United Arab Emirates Tetra Pak Gulf Las Condes 756 0910 Santiago Tel +52-55 2122 8700 Jebel Ali Free Zone, S-10107 South Zone, Dubai Tel +56 2 2940 7000 Morocco Tetra Pak Maghreb Tel +971-4 8811222 China (PR) Tetra Pak China Ltd 69 rue Othmane Ibnou Affane 3ème etage, United Kingdom Tetra Pak Ltd 29th fl, CITIC Sq, 1168 Nanjing Xi Lu, 20000 Casablanca, Morocco The Foundation Building, Herons Way, Shanghai 200041 Tel. + 212 522 488 150 Chester Business Park, Chester, CH4 9QS Content No. 104 Tel +8621-3217 4688 Netherlands Tetra Pak B.V. Tel: +44 (0)1244 688000 Colombia and Ecuador Tetra Pak Ltda Oostelijke Randweg 48 4782 PZ Moerdijk Tetra Pak Processing UK World Trade Center, Calle 100 No 8A-55, Tel +31-168 386500 Swan House, Peregrine Business Park, Torre C, Oficina 209, Bogota Tetra Pak Processing Systems BV Gomm Road, High Wycombe, HP13 7DL Tel +57-1 628 3630 Hoofdveste 18, 3992 DG Houten Tel: +44 (0)1494 886000 Croatia, Slovenia and Albania Tetra Pak d.o.o. Tel +31-305 349 999 USA Tetra Pak Inc. Buzin, Buzinski prilaz 30, 10010 Zagreb, Croatia New Zealand Tetra Pak New Zealand Ltd 3300 Airport Road Denton, Texas 76207 Tel +385 1 661 0000 Innovation Park Tetra Pak Building, Levels 1&2 Tel: +1 940 565 8800 Egypt Tetra Pak Egypt Ltd Ruakura Lane, Hamilton 3216 West Africa Tetra Pak (West Africa) Limited 2. The growth markets of the future will be found ‘Deeper in the Pyramid’ 6. The geography of DiP consumers Block 72 City Center 3rd Floor, from Tel. +64 7 8591442 2,IPM Avenue, Alausa, Ikeja, Lagos, Nigeria Teseen St. Beside Banking Center, New Cairo Norway Tetra Pak AS Tel: +234 1 4483309 10. Who are the world’s DiP consumers? 16. The quest to preserve food and drink Tel +2 02 26160180 P.O.Box 477, 1327 Lysaker Vietnam Tetra Pak Vietnam Finland Tetra Pak Oy Tel: +47-67 83 30 00 The Metropolitan, 14th floor, 235 Dong Khoi street, Meijeritie 2, 00370 Helsinki Pakistan Tetra Pak Pakistan Ltd District 1, Ho Chi Minh city 20. What are the key success factors? 22. Sustainability, and the importance of a whole ecosystem approach Tel +358-207633611 316 - Upper Mall, Lahore 54000 Tel: +84 28 3825 7100 France Tetra Pak France Tel +92 42 359 89 100 26. Working together for DiP 30. Innovating to reach deeper into the pyramid 420, rue d’Estienne d’Orves, Philippines Tetra Pak Philippines Inc 92705 Colombes Cedex 7/F Net One Center 26 St.Cnr. Third Ave 36. Co-innovation speeds up time to market 40. A brighter future for four million people Tel +33-1 56 47 5000 Crescent Park W Distr Bonifacio Global City Germany Tetra Pak Mid Europe Taguig 1634, Metro Manila Frankfurter Strasse 79-81, 65233 Hochheim Tel +632 976 3400 Tel +49-6146 590 Poland, Czech Republic, Hungary, Slovakia Tetra Tetra Pak Processing GmbH Pak Poland & Danube Senefelder - Ring 27, 21465 Reinbek Ul. Osmanska 14, 02-823 Warszawa, Poland Tel +49-40 600 910, Tel +48 22 5434 000 Greece Tetra Pak Hellas SA Portugal Tetra Pak Portugal, S.A. Sorou 8-10 & Dimitsanas, 15125, Maroussi, Athens Avenida do Forte, nº 12, 2790-073 Carnaxide Tel +30-210-6167500 Tel: + 351 214 165 600 India Tetra Pak India Pvt. Ltd. Romania Tetra Pak Romania S.R.L. Tetra Pak Magazine No.104 2015, ISSN 0346-3044. 16th Floor, Tower C, DLF building V, DLF Cyber 1A, Ion Ionescu de la Brad Str., Baneasa Airport The Tetra Pak Group’s International Company Magazine is produced in Sweden. The magazine is distributed to more than 150 countries City, Phase III, Gurgaon 122002 India Tower, 3rd floor, 013811 Bucharest, District 1 and is available in Chinese, English, German, Spanish, Swedish and selected issues in Japanese. Publisher: Christopher Huntley. Tel + 91 124 412 4600 Tel: +40 31 6206886 Editor: Julie Trolley. Writer: Joanna Le Pluart, Crystalclearjoanna.com Editorial board: Martin Sjöstrand, Carol Yang, Paul Wharton, Andrew Huestis, Rolf Viberg, Julie Trolley. Produced by: Tetra Pak International, Ruben Rausings gata, 221 86 Lund, Sweden.Tel +39 059 898361, E-mail [email protected] . Graphic design: Scoreit AB, Malmö, Sweden, www.scoreit.se. Paper Cover: Arctic paper/Amber Graphic, 240 g. Paper Body: Arctic paper/Amber Graphic, 120 g. Print: ExaktaPrinting Malmö, Sweden. ISO 14001 and FSC Certificates.

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