PACK & PERFORM

Hartmann Newsletter 1/2019

Think You don’t need to be an egghead to think News outside the .

Concerned consumers say no to packaging How are food producers and retailers responding to the global outcry against plastic islands? Page 2

This issue

Studies reveal Iceland UK to go Loué celebrates consumer plastic-free by turning 60 with preferences 2023 a contest GfK studies of consumers in Major UK food retail chain climbs Unique drive French egg Europe and the US reveal advantages consumer ratings with pledge to ban producer’s 60th anniversary of saying no to plastic in the egg plastic packaging. Page 6 promotion – and help sell more category. Page 5 . Page 7

Hartmann | Think News | 1/2019 Thoughts from the editor

Ute Scamperle European Customer Marketing Manager

Plastic islands and how consumers, not us, are driving a ‘domino effect’

In this issue of Think News we ask what we can do as egg producers, retailers and consumers to reduce the terrible environmental effects of plastic waste. In particular, we tell the story of how Iceland in the UK became one of the Wave goodbye first retailers to reduce single-use plastic packaging, propelling them to the top of the consumer-rating charts. to single-use And we show you the ‘domino effect’ as retailers around the world make their own moves away from plastic. plastic packaging

We also look at findings from consumer How we get to eat our So that is how we get to eat our own studies in Europe and the United States own plastic trash plastic trash along with toxins such as which suggest switching from plastic to Plastic is great for protecting food phthalates and bisphenol A. These can moulded fibre can bring opportunities during transport and for keeping it damage hormone production and for business growth in the egg category. fresh. But most plastic is only meant even cause cancer. to be used once then thrown away. Finally, we look at how two European In 2018 alone, that added up to 144 Consumers are driving change egg producers used advanced labelling million tonnes of plastic trash. Most of It’s a perfect, if vicious, circle. And features to help them raise their appeal, it is buried in landfills. But 8 million consumers are pointing the finger drive brand awareness and increase sales. tonnes flows into the world’s oceans at retailers for wrapping food in where it’s eaten by marine life – from ­single-use plastic packaging. The EU tiny animal plankton to gigantic whales. Commission and UN both responded Contact Ute Scamperle The problem is, a large proportion of with campaigns in May 2018 aimed at Phone: +49 (0) 6196 932 121 the fish we catch have been affected raising awareness. And in the wake of Mobile: +49 (0) 170 921 78 02 by plastic. recent EU legislation calling for bans on [email protected] plastic and single-use packaging, hartmann-packaging.com

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food producers and retailers the world over have been forced to respond. Consumers are driving the move away from plastic, and forcing retailers all over the world to come You could call it a ‘domino effect’. up with ways of reducing their plastic consumption – and pollution. Some of the initiatives below are already running. Others are still under development. See which ones you think make the most sense.

Suddenly, there is an urgent demand for an alternative to plastic to protect No to single-use plastic Yes to design for our food and keep it fresh. But for No to plastic trays Yes to multi-use egg producers and retailers, there is No to plastic Yes to moulded fibre bowls a readily available alternative. It’s No to plastic carrier bags Yes to multi-use mesh bags biodegradable. Recyclable. Made from NoNO to cling film YesYES to laser labelling renewable sources. And it’s been tried and tested over the last 100 years or How hard is it to recycle plastic? more. We are talking, of course, about Currently, only 9% of the world’s plastic is moulded fibre egg boxes. recycled. This is because:

1. Recycling plastic is extremely difficult. Just one PVC in a batch of 10,000 If you want more inspiration, watch PET will ruin a melt. Sorting all the our film ‘Think Ahead’ at different types of plastic is hard. So the chances of that one bottle ruining a melt hartmann-packaging.com are high.

2. Recycling plastic is costly. The end result will always be a low-grade plastic Enough reading with limited application – and even less already. Go watch commercial value. the film!

The domino effect

The UK: Tesco, Germany & the France: the The US: Dunking South America: Asia: Taiwan will Sainsbury’s and Netherlands: Aldi, government has Donuts will be free Chile has become ban all single-use Asda are among Edeka, Rewe and banned single-use of cups the first country plastic by 2030, and 42 supermarkets Ekoplaza, are plastic bags in by 2020. Kroger in South America India has pledged to make plastic cutting single-use super­markets supermarkets will to ban single-use to do the same by packaging reusable, plastic packaging. altogether. phase out plastic plastic bags. 2022. recyclable or bags by 2025. compostable by 2025.

Hartmann | Think News | 1/2019 3 Europe vs North America: Two views of sustainable egg packaging Moulded fibre has been a sustainable technology for more than 100 years. And today, in the light of the very public discussion on reducing single-use plastic packaging, moulded fibre is more relevant than ever. That’s why our own people and those we work with share a vision for a more sustain- able approach to packaging, an appreciation of consumer demand for an environmentally friendly alternative to plastic and an understanding of the business opportunities this can bring throughout the supply chain.

Although consumer packaging prefer- ences look very different in Europe and Canada, two people who joined single-use plastic, the next follows in kind. North America, there are huge oppor- Hartmann management in 2018, to Moulded fibre is, at present, the only tunities for growth in both markets. share their views of egg packaging in realistic alternative to plastic – if you the respective markets they serve. want to improve your environmental So, we asked Morten Skovgaard Frank profile and win the approval of in Denmark and Karl Broderick in Morten’s view of egg consumers. Study after study has packaging in Europe shown that recycling plastic is difficult, Europe’s egg packaging business is costly and ineffective. Recycling diverse. First, there are the different moulded fibre on the other hand is a styles of husbandry – , barn, very well-established, stable process. free range and organic. Then there are market trends for animal welfare It’s a good time to be in egg packaging. and GMO-free products which vary And I feel privileged to be part of from region to region. And our a company that can make a positive approach to packaging has to – and difference, not just for our customers, does – accommodate this diversity. but also for consumers in the wider world. One trend common to all of Europe Morten Skovgaard Frank right now, however, is the consumer- Karl’s view of egg packaging Born and raised in Denmark, Morten joined driven shift from plastic to moulded Hartmann in September 2018, taking the in North America position previously held by current CEO fibre. Egg producers, marketers and Over 50% of egg packaging in North Torben Rosenkrantz-Theil. As the Senior Vice President he is responsible for Hartmann’s retailers are responding. As one America is still Styrofoam/polystyrene production, sales and marketing across Europe. retailer promotes their plans to reduce foam and PET. This is the legacy from

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a time when there was much less focus on the environment. Now, however, consumers have learned about plastic GfK study reveals business islands in the oceans and how they are contaminating our food sources. It opportunity in moving away appears that it’s their buying habits which are forcing the market to change. from plastic

There are no downsides to switching from plastic to moulded fibre­packaging. Findings from GfK* studies into consumer packaging preferences No compromises either. Moulded fibre reveal big differences between Europe and the US. But in both egg are stronger and more markets, there are clear business opportunities for egg producers, durable than plastic ones, so you get marketers and retailers. fewer breakages along the supply chain. We are innovating all the time. Take our The GfK study in Europe Hybrid , for example. Its base is 13,000 people across 13 countries US: Moulded fibre/cardboard vs. Styrofoam/polystyrene/PET 80% fibre, and its top , which took part. prefer moulded fibre %

gives you great machine performance, to plastic packaging. 100

durability and some quality space for 75 your messaging without the need for 50 Opportunities in Europe 53 56 50 a . So it has the best chance of On average, 80% of consumers prefer 25 making an impact in the store. 0 moulded fibre to plastic egg packaging. Total New York Texas This huge number suggests retailers North America is vast. My aim is to have carte blanche to go ahead and make sure we provide our customers eliminate plastic egg cartons from their Opportunities in the US with the highest level of quality and inventory. The same goes for egg Historically, the egg packaging market service across every square mile. I’m producers and marketers who can has been dominated by polystyrene proud to play my role in making this now use the latest consumer prefer- foam and PET. But now, more than happen, because, when you look at ences to optimise their product ranges. 50% of consumers prefer moulded performance, price, marketability and fibre, with the rest split between the sustainability, fibre is a clear winner. The GfK study in the US three forms of plastic. The more con- 56% of the 1,000 respondents in sumers know about plastic pollution, New York prefer moulded fibre / the greater their preference for cardboard to plastic packaging. 50% moulded fibre. So, egg producers and of the 1,000 respondents in Texas marketers have an opportunity to take prefer moulded fibre / cardboard to a fresh look at their product ranges and plastic packaging. meet changing consumer demand.

* Gesellschaft fuer Konsumforschung

Europe: Moulded fibre/cardboard vs. plastic %

100 94 92 90 75 86 88 80 83 78 79 80 77 Karl Broderick 76 74 50 Canadian Karl Broderick joined Hartmann in 51 May 2018 and now works out of the Hartmann 25 plant in Brantford, Ontario. As the President of 0 Hartmann North America he is responsible for Total Austria Belgium Croatia Denmark Finland France Germany Italy Norway Poland Sweden Switzerland UK all sales, operations and production facilities across the US and Canada.

Hartmann | Think News | 1/2019 5 Iceland UK takes decisive action against plastic

Managing Director Richard Walker is clear about Iceland’s mission to reduce plastic: “As leading contributors to plastic packaging pollution and waste, the onus is on retailers to take a stand and deliver meaningful change.” But when Iceland announced their intention to remove plastic from all own label packaging by 2023, even he wasn’t prepared for the impact. Iceland’s own label cage eggs now in moulded fibre egg boxes from Hartmann.

Within a week of the announcement, research showed the number of Timeline people who viewed Iceland as the most environmentally friendly retailer Late 2017 December 2018 rose from 3 % to over 15 %. It looked Survey of 5,000 consumers finds that Iceland ranks number one for as though Iceland was giving consum- 80% would endorse a supermarket that plastic reduction in Greenpeace/­ ers exactly what they wanted. dropped single-use plastic packaging Environmental Investigation Agency report A year on, plastic is out and moulded January 2018 fibre is in. Iceland has chosen Har t- Iceland commits to replacing plastic January 2019 mann’s moulded fibre egg boxes as packaging on own label products Iceland switches to Hartmann part of the solution for its own label moulded fibre egg boxes as part of the eggs. And their initiative to remove July 2018 solution for own label eggs plastic from their own label products Iceland tops the UK’s customer by 2023 is very much on track. satisfaction index for supermarkets

Report ranks Iceland number one for plastic reduction

A recent report by Greenpeace In the report, 10 of the UK’s leading and the Environmental Investigation supermarket chains are ranked Agency reveals that UK super­ according to their policies on plastic. markets have more than 59 billion And Iceland comes out on top. The pieces of single-use plastic passing report goes on to state that Iceland through their stores every year “… has shown the most ambition in – a figure it calls “astonishing and committing to eliminating own- Iceland Managing Director unacceptable.” brand, single-use plastic packaging.” Richard Walker

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Unique labels help Loué celebrate turning 60

In France, the Loué brand has been synonymous with quality chicken and egg production for well over half a century. CASE So when the company turned 60 last summer, they decided to celebrate.

Between March and June 2018, every time supermarket shoppers bought a carton of Loué eggs they could win anything from an electric bicycle to a ride in a hot-air balloon. And taking part in the competition could not have been easier.

The promotion ran from March to June 2018 on Loué Red Label and Bio organic eggs. Every single carton of Loué ‘Red Label’ or ‘Bio’ eggs came with a unique code printed on the back, just above the fold “And at the same time, we gave line. When shoppers keyed the code sales a boost,” adds Sales Director into a page on Loué’s website, they ­Christophe Bériard. would automatically win €1 off their next purchase of Loué eggs. And they Even though unique labels are familiar could also see if they had won one of in many product categories, they are the bigger prizes. relatively new to the egg category. But thanks to Hartmann’s no-fuss label “For us, it was a way of celebrating our technology, consumers found it easy 60th birthday with our customers,” to take part in the competition. And Each unique promotional code was printed clearly on the back of each egg carton, just says Bruno Mousset, Managing Loué’s anniversary campaign was above the fold line. Director of Loeuf. a great success.

Anniversary competition flow

Offline Online

CODE WWW

€1 reduction

Hartmann | Think News | 1/2019 7 Hooked on pirates Think Hornbrooker uses pirates to appeal to children Ahead in Germany’s supermarkets Upcoming events

Have you noticed how some food “Ei is German for egg,” explains Lena AGRO brands have a children’s version of Goldnick, joint owner of Hornbrooker International Agroindustrial Fair their product, sporting a fun, brightly farm. “And the treasure inside the Kiev, Ukraine, 4–7 June coloured label? It’s a tried and tested ‘treasure chest’ is six free-range eggs tactic in categories such as yoghurt or fresh from the Hornbrooker family Royal Highland Show fruit juice. But no one has ever tried farm.” Edinburgh, Scotland, 20–23 June it with eggs. Until now. ZAG Ländertagung Making two separate labels has turned Baden near Vienna, Austria, 27–28 June Hornbrooker Hof have enjoyed out to be straightforward thanks to a healthy market share and a reputa- Hartmann’s mixed label technology. Space tion for quality in northern Germany Rennes, France, 10–13 September across four generations. And now they What did the pirate pay for Biofach America have decided it is time to appeal to his peg leg and hook? Baltimore, USA, 12–14 September children. To help them, they are using – An arm and a leg. ­Hartmann’s mixed label technology. IEC And cartoon pirates. The labels are applied separately to Global Leadership Conference imagic2® cartons. These are then Copenhagen, Denmark, 22–26 September Hornbrooker’s new label transforms stacked so that each palette has the Anuga the egg carton into a pirate’s treasure same number of boy and girl pirates, Cologne, Germany, 5–9 October chest. And guarding the treasure is making it extremely easy for the either a boy with a pirate’s black beard packers at the egg packing station. Olma or a girl waving a pirate flag, shouting St. Gallen, Switzerland, 10–20 October “Ei ho, Ei hoo!” So if you go shopping in northern Germany, be sure to look out for Brødrene Hartmann A/S pirate’s treasure. Ørnegårdsvej 18 2820 Gentofte, Denmark Phone: +45 45 97 00 00 Fax: +45 45 97 00 01 CASE Email: [email protected]

Find the contact information of your local/regional office at: www.hartmann-packaging.com

The label says, “Eggs arrh! Eggs aarrh! Let’s go The in-store display – a pirates’ treasure chest and get the treasure: 6 free-range eggs!” guarded by Hornbrooker’s pirates.

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