PACK & PERFORM Hartmann Newsletter 1/2019 Think You don’t need to be an egghead to think News outside the box. Concerned consumers say no to plastic 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 egg consumers in Major UK food retail chain climbs Unique labels 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 eggs. 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 bags and single-use packaging, hartmann-packaging.com Hartmann | Think News | 1/2019 2 PACK & PERFORM 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 recycling our food and keep it fresh. But for No to plastic trays Yes to multi-use boxes egg producers and retailers, there is No to plastic containers 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 bottle in a batch of 10,000 If you want more inspiration, watch PET bottles 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 polystyrene 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 super markets 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 – cage, 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 Hartmann | Think News | 1/2019 4 PACK & PERFORM 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 fibre packaging. 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 cartons 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 carton, for example. Its base is 13,000 people across 13 countries US: Moulded fibre/cardboard vs. Styrofoam/polystyrene/PET 80% fibre, and its top paperboard, 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 label. 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.