Brand Equity Report · 2018. 10. 10. · Consumer packaged goods company 33% Packaging material...

Sustainable Packaging: Where to now?

1 © 2012 Packaging Digest "Sustainable Packaging: Where to now?" webcast


Moderator / Speaker

Lisa Pierce Executive Editor

Packaging Digest


Sponsors

www.bwaycorp.com

www.dsm.com/

packaging

www.tricorbraun.com

www.xpedx.com/

packaging-solutions

Speakers


Gail Tavill VP, Sustainable Development ConAgra Foods President American Institute for Packaging and the Environment (AMERIPEN)

Nina Goodrich Executive Director GreenBlue Program Director Sustainable Packaging Coalition (SPC)

Lisa Pierce Executive Editor Packaging Digest

Speaker


Gail Tavill VP, Sustainable Development ConAgra Foods President American Institute for Packaging and the Environment (AMERIPEN)

The Hidden Value of Packaging

Gail Tavill

November 2012

6

American Institute for Packaging and the Environment (AMERIPEN)

North American industry and trade organization that advocates and educates on packaging policies related to the environment

Launched in 2011 by ten founding member companies

Drives for “The Power of Packaging in Balance”

7

AMERIPEN will achieve its vision by:

– Providing scientific & fact-based DATA – Taking ACTION that

–Reinforces the Value of Packaging –Increases Recovery of Packaging

– LEADING collaboration with other organizations

Why AMERIPEN Was Founded

To provide a material neutral voice representing the positive contributions of packaging

To promote improved system-wide impacts of packaging and increased recovery of packaging materials

To address challenges of the municipal waste stream and potential policies related to those challenges, such as Extended Producer Responsibility

9

AMERIPEN Members

Founding Members Recent Members

AMERIPEN Priorities - 2012-2013

Increase the recovery of packaging

Assess financial platforms for packaging end-of-life

Communicate the value of packaging

The Role of Packaging

12

CONTAINMENT: of the PRODUCT to avoid spills and

waste and to facilitate use

PROTECTION: of the PRODUCT from damage,

spoilage, tampering, theft…

COMMUNICATION: of PRODUCT

attributes; nutrition, safety,

instructions…

DISTRIBUTION: get the PRODUCT

from point A to point B

RECOVERY: of the

PACKAGE for reuse,

recycling, energy or soil

A World Without Packaging: Social Benefits

Packaging Enables:

Global distribution and e-commerce

Confidence in product safety & authenticity

Reduced damage, spoilage & waste en route to market

Protection from product contamination

Communication of key information,

Access to basic needs during disaster relief

Protection of environmental investment in products

13

Consumers would not live the way they do

Businesses would not function the way they do

Packaging Economics Defined

14

More than 750,000 people are employed in the packaging industry in the United States*

Packaging contributes at least $200 billion to the US economy, or about 2% of our GDP**

* U.S. Census Bureau

** U.S. Department of Commerce

For the first time, we know what contributions that packaging makes

to the economy – critical for influencing regulators.

Understanding Packaging’s Environmental Impacts

15

Energy used along each step of a

dairy products lifetime

INCPEN, Table for One, 2009

39.7 Million Tons

79.4 Billion

lbs.

Grocery Stores

11%

Full Service Restaurants

20%

Quick Service Restaurants

13%

Institutional 10%

Residential 44%

Industrial 2%

FOOD WASTED Annually in the US

(Municipal only)

>250 lb. pp / year

Foodservice

Plate Waste

Over Prep

Expired/Spoiled

Consumer Goods

Plate Waste

Damage

Expired/Spoiled

Obsolete

GMA/FMI/NRA Food Waste Reduction Alliance data

Food Waste Crisis

39.7 Million Tons

79.4 Billion

lbs.

Grocery Stores

11%

Full Service Restaurants

20%

Quick Service Restaurants

13%

Institutional 10%

Residential 44%

Industrial 2%

FOOD WASTED Annually in the US

(Municipal only)

>250 lb. pp / year

Foodservice

Plate Waste

Over Prep

Expired/Spoiled

Consumer Goods

Plate Waste

Damage

Expired/Spoiled

Obsolete

Packaging can be part of the solution: Product Protection - Extended Shelf Life - Portion Control

GMA/FMI/NRA Food Waste Reduction Alliance data

Food Waste Crisis

Food Waste - Some Statistics

18 1 U.S. Census Bureau

2 U.S. Department of Agriculture (USDA) and University of Arizona Garbage Project

33 – 50

percent of all food

purchased that we

waste in America2

$2600.00

Cost to a US

household if 33% is

wasted. Cost to the

US is over $300 billion

– $1,000 per person,

or $2,600 per

household.

$1 Trillion

Amount of food &

beverages that

Americans purchase

per year1

Food Waste - Some Statistics

19 1 U.S. Census Bureau

2 U.S. Department of Agriculture (USDA) and University of Arizona Garbage Project

33 – 50

percent of all food

purchased that we

waste in America2

$2600.00

Cost to a US

household if 33% is

wasted. Cost to the

US is over $300 billion

– $1,000 per person,

or $2,600 per

household.

$1 Trillion

Amount of food &

beverages that

Americans purchase

per year1


Packaging Can Reduce Waste & GHG Impacts

20

If just 5% of the edible food that is wasted in the US were recovered, that quantity would feed 4 million

people every day1

Almost all wasted food ends up rotting in landfills, accounting for nearly 25% of US methane

emissions2

1 Estimating and Addressing America’s Food Losses, Economic Research Service, USDA

2 EPA.

Packaging Can Reduce Waste & GHG Impacts

21

If just 5% of the edible food that is wasted in the US were recovered, that quantity would feed 4 million

people every day1

Almost all wasted food ends up rotting in landfills, accounting for nearly 25% of US methane

emissions2

1 Estimating and Addressing America’s Food Losses, Economic Research Service, USDA

2 EPA.


Value of Packaging

Reinforce the intrinsic value of packaging to key

decision makers and policy influencers.

Packaging as part of the solution.

Thank You

For more information, please go to

www.ameripen.org

23

Speaker


Nina Goodrich Executive Director

GreenBlue Program Director

Sustainable Packaging

Coalition (SPC)

The Sustainable Packaging Coalition is…

An industry working group dedicated to creating a robust environmental vision

for packaging …

consisting of over 200 member companies, educational institutions, and government agencies involved with the

packaging supply chain.

Applying life-cycle thinking through DESIGN

to make packaging more sustainable

SPC How2Recycle Label

The Sustainability Journey

Process

Product

Where do we go from here?

Sustainable Packaging is a conduit to product sustainability and a vehicle for creating awareness

Linking Packaging Sustainability Strategies to Corporate sustainability strategies

Leveraging Packaging to enhance sustainability thinking

Nina GoodrichGreenBlue Executive Director and SPC Program Director GreenBlue600 East Water Street, Suite C, Charlottesville, VA 22902Tel: 434.817.1424 x336 www.greenblue.org

http://greenblue.cmail5.com/t/r-l-kuhtihl-jrlyituhlk-t/



Speaker



39

Food Safety

Training

© 2012 Packaging Digest Sustainable Packaging Study

2012 Packaging Digest

Sustainable Packaging Study

40

Food Safety

Training


“Bottom line, people will often

show more loyalty (repeat

purchase) to

products/companies

exhibiting responsible

practices in packaging.”

41

Food Safety

Training

Primary Activity of Company

Consumer packaged goods company

33%

Packaging material manufacturer 16%

Packaging services 16%

Packaging converter 11%

Retailer 10%

Packaging Machinery Manufacturer

7%

Transport/Logistics 6%

Industrial Manufacturing/B2B 4%

Other 1%

None/Not involved in packaging 9%

Type of Industry Involved In

Food 42%

Personal Care/Cosmetics 31%

Household products 28%

Beverage 24%

Pharmaceutical/OTC 22%

Medical Devices/Supplies 24%

Electronics 14%

Large Retail 12%

Media 6%

Transport/Logistics 10%

Other 14%


42

Food Safety

Training

Type of Company

Privately Owned 54%

Corporation 46%

Number of Employees

Under 20 17%

20 to 99 14%

100 to 249 10%

250 to 499 7%

500 to 999 7%

1,000 or more 45%

Company Headquarters

United States 81%

Other North America 4%

South America 1%

Europe 10%

Asia 3%

Other 1%


43

Food Safety

Training


• Online survey

• Summer 2012

• E-mail invitation to a

random sample of readers

• 39 questions

679 qualified returns

44

Food Safety

Training


• Attitudes

• Costs

• Champions

• Recycling

• Globalization

45

Importance of Sustainability when Making Decisions About Packaging

Impact of Sustainability on Packaging Decisions

• Sustainability continues to play an increasingly important role in packaging decisions. Only 6% of respondents

indicate sustainability is not a factor in packaging decisions.

Very Important 25%

Moderately Important

35%

Sometimes a factor 34%

Not an important factor

6% Total Important*

• 2012 = 94% • 2011 = 92% • 2010 = 91%

* Very, Moderately or Sometimes Important


46

Sustainability Is Still Relevant as a Differentiator in Packaging

Relevance of Sustainability as a Differentiator in Packaging

• A strong majority of respondents (84%) indicate sustainability is still relevant as a differentiator in packaging.


Yes

84%

No

16%

Reasons Sustainability is Differentiator:

• Consumers/customers demand/feel it is important (34%)

• Social responsibility/right thing to do (26%)

• Conserves natural resources/ preserves the earth (16%)

• Enhances brand reputation/image (15%)

• Required to stay competitive (13%)

• Consumers/Customers more knowledgeable about sustainability (9%)

• Pricing differences (5%)

• Marketing of the “green movement” (3%)

Reasons Sustainability is Not A Differentiator:

• Price driven (35%)

• Too many false claims/ empty buzz word (17%)

• Other factors more important such as quality/protection (15%)

• Lack of understanding/awareness (12%)

• lack of demand/priority (12%)

• Everyone does it/like a commodity (5%)

• Sustainability trend peaked (3%)

• Lack of good recovery systems (3%)

47

Food Safety

Training


“Given a choice between otherwise

equal competitors, consumers and

customers will choose the

sustainable packaging user —

if they know which one it is.”

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

48%

63%

65%

65%

71%

78%

80%

93%

27%

23%

16%

23%

21%

18%

16%

5%

25%

15%

19%

13%

8%

4%

4%

2%

Agree Neutral Disagree

48

Level of Agreement with Statements Regarding Sustainability

Being more efficient and saving costs is an important part of any sustainability effort.

Failure to improve sustainability practices is a risk to a company’s brand and reputation.

Sustainability efforts are difficult to advance during an economic downturn.

Packaging sustainability is a primary business goal for my company.

Too many companies make false or unproven “green” claims on their packaging.

Mean

4.51

4.06

4.15

3.90

3.69

3.62

3.62

3.34

The industry needs simpler tools to guide decisions on sustainability issues.

Lack of recovery of materials is a barrier to improved packaging sustainability in the U.S.

Varying regulations at local, state and federal levels inhibit improvements in sustainability.


49

Use Life-Cycle Analysis to Influence Package Design and Engineering

Life-Cycle Analysis

•Close to 40% of companies use life-cycle analysis in making decisions on package design and engineering. This is

similar to 2010. Close to a quarter of respondents (22%) indicate they have low or no confidence in the data sources

used for life-cycle analysis. Large companies are more likely to use life-cycle analysis than small companies.

Yes 39%

No 43%

Don’t Know 18%

Level of Confidence in the Accuracy of Data Sources

Used for Life-Cycle Analysis

High/Moderate Confidence (net)

44%

High confidence 6%

Moderate confidence 38%

Low confidence 19%

No confidence 3%

Don’t know 34%

Use Life-Cycle Analysis

By Size

Less than 100 employees 32%

100 to 1,000 employees 35%

Over 1,000 employees 46%


50

Business Factors that Will Have the Greatest Impact on Strategic Direction of Company Over Next 5 Years

Factors that will Influence Future Business Strategy

• Sustainability continues to be a top factor that influences business strategy in the packaging industry, but cost

concerns hold the top two slots.

0%

10%

20%

30%

40%

50%

Managing costs

Pricing pressures

Consumer reqmnt

Sustain- ability

Opera- tional efficiency

Gaining market share

New tech- nology*

Regu- latory

reqmnt

Finding new

markets

Compet- ition

Material availa- ility & pricing

Global- ization

Corp- orate image

Energy efficiency

Energy avail-

ability & pricing

Investor pressure

35%

28% 26%

24% 22% 22% 22%

21% 19% 19% 19%

15%

5% 5% 3%

1%

2011 Ranking 1 2 5 4 3 6 11 9 7 10 8 12 14 13 15 16

Overall, SUSTAINABILITY ranked 4th for the past 4 years

(2009-2012)


Less Than 100 Employees

• Managing cost 30%

• Pricing pressures 26%

• Regulatory req. 25%

• Consumer/Market requirements 24%

• Material availability and pricing 24%

• New technologies 24%

• SUSTAINABILITY 23%

• Finding new markets 23%

• Operational efficiency 19%

• Competition 18%

100-999 Employees

• Managing costs 35%





• Finding new markets 23%

• Gaining market share 21%

• Competition 19%

• Material availability and pricing 19%

1,000 Employees or More

• Managing costs 38%



• Gaining market share 26%


• New technologies 23%


• Regulatory requirements 20%

• Competition 20%

• Globalization 18%

51

Business Factors that Will Have the Greatest Impact on Strategic Direction of Company Over Next 5 Years

By Size of Company


52

Biggest Challenges to Making Current Packaging Process More Sustainable

• As in 2010 and 2011, respondents report raw material cost is the biggest challenge to making the packaging

process more sustainable.

0%

10%

20%

30%

40%

50%

60%

Raw material

cost

Lack of alterna-

tives

Producing compar-

able quality

Compat- ability

w/packaging

process

Lack of standards/

reporting/ metrics

Lack of recovery

infrastructure

Corporate support/

Buy-in

Regulatory compliance

Creating share- holder value

Training Compet- ition

Finding qualified

staff

48%

35%

26%

30%

25% 22%

19% 16% 15%

11% 13%

4%

Same Top 4 challenges for past 3 years


53

Food Safety

Training


“People are aware and offended by wasteful

packaging. There is an assumed connection

[between] costs and excess packaging.”

“Consumers generally like to feel they

are

contributing to environmental

stewardship,

as long as there is no significant cost

premium.”

54

• In 2012, individual champions emerged as a stronger role player than in 2011. C-level participation dropped

significantly this past year, from 32% in 2011 to 25% in 2012.

0% 10% 20% 30% 40% 50% 60% 70%

Not Sure

None

Company-wide

Inter-departmental task force

C-level initiatives

By Department

Individual champions

1%

2%

2%

19%

25%

32%

42% 31%

Level Within Company Driving Participation in Sustainability


26%

32%

15%

1%

2%

2%

% 2011

55

Importance of Significantly Improving Recycling and Recovery of Packaging in the Next Five Years

Improving Recycling and Recovery of Packaging

•Respondents universally agree (96%) that it is important to significantly improve packaging recycling and recovery

over the next five years. More than 60% consider it a very important issue.

Very Important 63%

Somewhat Important

33%

Not Important

3%

Don’t know 1%


56

Criteria Company Uses to Evaluate Sustainable Packaging

•Recycled content and energy consumption are the most frequently used criteria to evaluate sustainable packaging.

0%

10%

20%

30%

40%

50%

60%

Recycled content

Energy consump-

tion

Toxic or harmful

chemicals

Life-cycle analysis

Carbon footprints

Material resource

consumption/

reduction

Recycled based on current

recycling rates

Design for recycling

or compost -ing

Water consump-

tion

Non- recyclable materials content

Social implica-

tions

Green- house gas emissions

49%

41%

34% 32% 31% 30% 29% 29%

24% 22%

20%

16%


0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

16%

16%

21%

23%

25%

40%

26%

30%

37%

37%

40%

36%

31%

32%

29%

26%

25%

19%

27%

22%

13%

14%

10%

5%

High priority Moderate priority Slight priority Not a priority

95%

57

Working to develop collection and recovery infrastructure

Reducing the amount of packaging or the materials required.

Using recycled material in packaging.

Social accountability

Sourcing of renewable materials in your packaging

Company’s Priority Level for Sustainability Practices

•Close to 60% of respondents indicate reducing their company’s dependence on fossil fuels is a low or non-existent

priority. But reducing packaging and using recycled content continue to be high priorities.

Using renewable energy to reduce dependence on fossil fuels


95%

90%

86%

87%

78%

73%

Priority*

58

Food Safety

Training


“We have to ensure our products meet

European standards, even though they are sold

in the U.S. We believe future U.S. regulations will

be based on European standards.”

59

Several Countries Outside the U.S. Have Established Tighter Regulations and More Specific Definitions for Sustainability.

Effect on Position in Global Markets.

Affect of Tighter Standards

•Respondents are somewhat evenly split on the effect of tighter regulations by countries outside the U.S. on their

company’s position in the global marketplace. (47% no impact, 41% impact)

Yes, positive 21%

Yes, negative 20%

No impact 47%

Don’t know 12%

Positive: • Increased company’s competitiveness • Creates brand leadership abroad • Company conforms to stricter requirements – broader reach •Synchronized practices for all areas of globe more efficient/saves money • Increases company’s knowledge

Negative: • Costs more • Requires more investment • Increases prices – less competitive on price • Complicates trade compliance • Difficult to obtain materials/develop processes • Difficult to obtain information on individual markets • Avoid certain markets


60

Food Safety

Training


“Cost is high and we can’t compete against

product made by companies that are under no

regulation to such responsibilities. We are

simply priced out. Only way is to move our

production into those countries to compete

globally.”

61

Food Safety

Training


“In terms of regulations, costs and sourcing

methods, packaging competitors need to

consider sustainability as an imperative/priority

in a global harmonization environment.”

62

Food Safety

Training


Full study results available for $149 www.packagingdigest.com/

2012SusPack$urvey

Submit topics / questions for next year’s survey to [email protected]

Questions?


Nina Goodrich Executive Director

GreenBlue Program Director

Sustainable Packaging

Coalition (SPC)



Sponsors

www.bwaycorp.com

www.dsm.com

www.tricorbraun.com

www.xpedx.com

Thank you!


Brand Equity Report · 2018. 10. 10. · Consumer packaged goods company 33% Packaging material...

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Transcript of Brand Equity Report · 2018. 10. 10. · Consumer packaged goods company 33% Packaging material...