Packaging Blog: Packaging Industry News

Agent Cool Blue not so cool as 4 million bottles get recalled

2007-04-12T14:21:00.000-04:00

Because of contamination by microorganisms. all lots of Glacier Mint and Bubble Blast flavors of Listerine Agent Cool Blue plaque-detecting rinse sold or distributed since the product's launch last year are being recalled effecting some 4 million bottles of product.

Fortunately this product recall does not affect any other Listerine products and it is likely that the alcohol contained in conventional Listerine products may have thwarted these contaminates.

Despite the use of preservatives in Agent Cool Blue, McNeil-PPC Inc said product testing showed contamination by microorganisms but added that the risk of illness after consuming the product is low, except for any individuals with weakened or suppressed immune systems. So far there has not been any report of consumer health problems.

If you have any of the products, return the product for a full refund. For further information check out the Agent Cool Blue web site or call (888) 222-0249.

Reduced packaging helps the National Parks

2007-02-17T17:22:00.001-05:00

Sometimes small changes in consumer behavior can make huge changes to the environment. The revolution in digital photography has made a huge change in packaging.

I just read a fascinating observation on how outdoor digital photography in National Parks has actually reduced how much litter from empty film canisters and photographic film packaging is actually creating cleaner environments in our recreational areas.

The real question now is what your company is doing to reduce the environmental impact of excessive packaging or what creative innovations that you are using in your packaging strategy so that your products and company has less of a negative impact on the environment, improved customer perception of your company and products, and maybe even some more money on your bottom line.

Tell us what you have done and maybe your story will appear here or in our other syndicated media outlets.

Send your environmental success stories to: whatwearedoing at packagingblog.com.

Plastic and glass packaging definitions

2006-11-22T13:12:00.001-05:00

Experienced and rookie packaging professionals will enjoy the plastic and glass definitions page and compatibility information I found while surfing packaging sites today.

Since plastic bottles and glass bottles are used in packaging of all types it helps to have this information at your fingertips.

Don’t know what Types I, Type II, and Type III glass containers can be used for? Go to the bottle definition page.

AptarGroup Acquires Packaging Manufacturer MBF

2005-10-09T17:34:00.001-04:00

One of the leading US Packaging manufacturers AptarGroup Inc has acquired a French packaging components maker MBF Development for about $43 million cash.

As part of the deal, AptarGroup whose 2004 sales topped $1.3 billion will assume $10 million in debt to buy out MBF Development whose yearly earnings are around $52 million.

AptarGroup, with 2004 sales of about $1.3 billion, supplies dispensing products such as finger tip sprayer pumps, dispensing pumps, treatment pumps, fragrance pumps, and foaming dispensers servicing the personal care, cosmetic, fragrance, food and pharmaceutical markets.

Oxygen Scavenging PET Bottles and Jars

2005-10-07T14:58:00.002-04:00

With advent of an improved oxygen-scavenging barrier that is undergoing testing right now, PET will now be able to take and even larger sector of ridged packaging from bottles and jars.

PET is by far one of the fastest growing segments of the beverage bottling industry, but has also made huge inroads in the cosmetic and personal care and food industry. Much of its rapid acceptable into the market is due to the fact that PET bottles and jars are not only shatterproof and recyclable now (see PET recycling increases for 2004 on Packaging Blog), they are as cosmetically appealing as glass - without the weight.

One of the key negative attributes of PET Bottles and other PET packaging containers is that fact that PET does a poor job in keeping oxygen from permeating the container and reacting with whatever is inside. Oxygen reacting with the fill of a container can affect the flavor of foods and drinks, the color and fragrance of a fill and it can dramatically affect the shelf life of some products as well.

Constar International has worked hard to beat this problem and is now on its third solution DiamondClear which when blended with monolayer PET, binds oxygen and stops the negative effects of oxygen on the fill.

The 2 prior methods Constar International had to correct this problem had their own issues: Oxbar is a multi-layer oxygen scavenger but required beverage makers to invest in multilayer injection equipment, and MonOxbar, which is a monolayer barrier material which cost less than Oxbar but was not accepted well due to the pearlescence and haze, which dramatically reduced its attraction on the shelf.

Expect to see far more products packed in PE packaging such as teas, sauces, creams and more due to this exceptional new advance in PET plastics.

PET recycling increases for 2004

2005-10-05T18:21:00.001-04:00

The recycling rate for polyethylene terephthalate (PET) plastic used in packaging for rigid containers such as bottles and jars has increased to 1.003 billion pounds in 2004.

According to 2004 PET Recycling Rate Study published by National Association for PET Container Resources (NAPCOR) 21.6% of post-consumer PET containers were recycled which is the highest percentage since 2001.

I find it reassuring that finally Pet recycling seems to have taken off and it has occurred just in time too since the supply of PET container such as bottles and jars has also set a record of 4.637 billion pounds. Obviously, there is still a long way to go with recycling PET containers, but I find this news very encouraging. The recycling rate is also helped by fact that Recycled PET (RPET) has stable prices that now effectively can compete with virgin PET. Thanks to enforcement of Rigid Plastics Packaging Container Law in California which requires a minimum of 25% post-consumer recycled content in rigid plastic packaging for nonfood products, RPET bottles and jars have tripled.

While it is encouraging that post consumer recycling of PET packaging is increasing, there are still companies that use PET packaging that are dumping PET bottles and PET jars when they become excess or surplus rather than selling or brokering their surplus packaging with a company that specializes in liquidating surplus packaging such as Closeout Packaging.

It is amazing that some companies will let obsolete surplus packaging deteriorate in their warehouse and use up valuable real estate rather then turning their surplus packaging into cash. When was the last time you went through your warehouse to see what surplus packaging to could sell and turn stagnant inventory into working capital all while saving the environment?

Caps and closures use in packaging predicted to rise

2005-10-03T13:08:00.001-04:00

According to world renowned research group Freedonia, accelerating economic growth, increased demand from China and packaging such as gabletop and aseptic drink cartons and plastic pouches no adding closures, an average growth rate of 4.8 percent by 2009 is expected for closures and caps in packaging.

Even though the price of raw materials has caused a spike in the pries of plastic packaging components, since they are few or no alternatives to caps and closures used in packaging, their sales are not expected to suffer but actually thrive.

the Increase in cost for the raw materials used in caps and closures have no only increased the short supply of raw materials due to a double wallop of hurricanes to the Gulf region this year, a huge increase in demand by China driven by dispensing caps and closures, child resistant safety caps, and overcaps are putting a squeeze on supply and driving material costs up.

We have all seen a dramatic decline in the use of metal caps for packaging and this void in the market has been predominantly filled by plastic caps and closures.

In a bold move, the makers of Dannon yogurt Dannone, now saves 3.6 million pounds of plastic each year by eliminating the plastic overcaps formally used on their 6 oz yogurt package. While this tactic worked form Dannon, most companies don't have the luxury of being able to remove excess packaging in order to increase packaging savings.

Avon and Estee Lauder both lower 2005 expectations

2005-09-28T09:32:00.001-04:00

The HBA Expo floor was abuzz that both Avon and Estee Lauder have reduced their earnings expectations for financial year citing the continued rise in oil price that is hitting manufacturing costs, as well as other factors.

Avon announced that and unexpected shortfall in all of its four sales regions will be effecting its original projection by as much as 16%. Avon is still expecting revenue increases though in spike of the current situation.

On the other hand, Estee Lauder expects an approximately 1% hit due to currency translation negatively impacting sales and a 10% hit to their bottom line caused by factors such as expenses relating to closures and over-stocking.

Cosmetic and personal care manufactures all expressed concern yesterday because of economic uncertainty and the fact that raw material costs especially in packaging, and transportation are expected to skyrocket.

Distributors of packaging complained that increases on inbound freight on packaging such as glass bottles have been affected by as much 25% this year, which does not even factor in the latest fuel increases.

Manufacturers of packaging and packaging distributors have no choice but to pass these increases on to their customer, which has everyone up in arms. Since packaging accounts for about 10% of most products cost, this is going to effect bottom lines if even the most profitable companies.

The announcements are early signs that cosmetics manufacturers are in for a rough storm, as economic conditions continue to look doubtful.

Both the Packaging and Industrial Films Association (PIFA) and Flexible Packaging Association (FPA) warned its customers of significant price increases.

On a brighter note, two suppliers of printed labels I interviewed both claim that the do not expect any price increases that they will have to pass onto their customers and that they are both doing so well they are willing to absorb the increases of their raw material costs.

HBA Packaging show jitters…

2005-09-27T09:04:00.001-04:00

It is that time of the year again when the best packaging, cosmetic and personal care show -the HBA Expo in New York City begins.

This show looks like another groundbreaker from what I saw yesterday while walking the floor after an interview yesterday.

Since I have exhibited or visited all but one show since the HBA Expo started, I guess I can be considered and expert on this show.

New booths and an ever-expanding Asian supplier section are the first things that struck me when walking the trade show floor. Plenty of new packaging and new raw materials I saw in the cases and in displays is what is drawing me back today for the grand opening of the premier packaging show.

Anyone who recognizes me and asks for a a free dinner tonight, gets one. I will be the person in the suit with shoes on and a briefcase. See if you can find me!

Traditional Packaging still preferred by consumers.

2005-09-26T21:58:00.001-04:00

According to a report by the Can Manufacturers Institute (CMI) in conjunction with PACK EXPO, Americans continue to favor traditional packaging, including metal cans, instead of pouches and newer packaging in their food and beverage Purchases.

This report was based upon telephone interviews of 1,000 respondents who considered metal cans to be the safest of all containers. The study also revealed that busy consumers want future packaging to be simple, easy to use and convenient. This further reinforces the fact that all of the recent innovations in metal packaging and not only overwhelmingly applauded by consumers, it shows that the metal can remains one of the most economical, environmentally friendly and safest packaging format.

88% of the survey respondents favored traditional packaging such as metal cans, plastic and glass bottles and jars over pouches and paperboard packaging. There is also a perception by consumers that metal packaging is best at keeping nutrients without preservatives.

90% of survey respondents cited food safety and tampering as major concerns as that the metal can was the most tamper evident packaging followed by glass containers, plastic containers, paperboard packaging and the pouches used in packaging.

Robert Budway, CMI president proudly announced that "This packaging trends report captures a moment in time," and that "The metal-packaging industry is in the midst of a dynamic change with breakthrough innovations easy-to-use containers with twist-tops, resealable metal lids, pull-tab lids and peelable opening systems representing an exciting new chapter in the venerable food can's 200-year life." He went on to say "Increasingly convenient packaging methods and rising recycling rates highlight the new focus of the metal-can industry: improving the ease of consumers' lives and protecting the environment around them."

Cans have been on of the most successfully recycled component of packaging for many years now and my own experience has shown me that people who are not normally "recyclers" more of then that not at least recycle cans so it was not surprising to me that 86% of the packaging survey respondents listed metal cans as recyclable over paperboard and pouches.

I had the pleasure of spending hours discussing packaging and the evolution of packaging with two extremely well known packaging industry distribution insiders and our combined experience in the packaging field exceeded 50 years.

In both interviews the topic of cycles of evolutions in rigid packaging was disused at length. Metal cans for aerosol came up in one interview, and metal packaging for food and beverage played an important role in the second interview. Both insiders perspective clearly showed that while individual metal packaging components have changed - especially an aerosol packaging, metal packaging is still an integral part of their business and they expect that metal will continue to be so based upon their customers demand for traditional packaging.

Plastic resin prices poised to soar…again.

2005-09-25T17:34:00.001-04:00

Plastic resins prices have already surged almost 40% since June and with even the limited damage caused by Rita. Prices will surge again.

Going to the gas station has become increasing painful for everyone the past few months and we all knew that this is not the last place our wallets and pocketbooks were going to be affected by the ever increasing cost for oil and natural gas.

Soaring natural gas prices are not only going to be dramatically increasing the cost to heat homes this winter, they are pushing up the costs of chemicals and resins that will increase across the board packaging costs.

Natural gas is going to increase resin prices for packaging because not only it is and integral raw material in plastic resin but it is a fuel source to run the plastic resin manufacturing facilities.

Not only is styrene, glycols and other raw materials in tight supply because of 2 hurricane-related production shutdowns and transportation issues, fuel surcharges for trucking materials to their destinations have doubled creating business-threatening cost changes. Manufactures in the plastic molding industry will have no choice but to pass these increases costs to their customers, which will ultimately hit consumers hard.

If this is not bad enough, the law of supply and demand will also dictate higher prices for plastic resin in packaging as according to the U.S. Census Bureau figures, the U.S. trade deficit in plastics products grew to an astounding $1.47 billion in 2003 from a mere $526 million in 2002. Resin shortages may even become an even bigger concern than higher prices.

According to Chuck Hamley, president of Advanced Extrusions Inc "So far we are not having trouble getting material. But it is my No. 1 concern".

Packaging Manufacturer Saint-Gobain Calmar Acquires Italian Pump Company

2005-09-25T10:22:00.000-04:00

Saint-Gobain Calmar a packaging manufacturer who specializes in pumps, dispensers and sprayers has just acquired Microspray Delta an Italian manufacturer of pumps for the fragrance and cosmetics industries.

Calmar is one of the leading manufacturers of pumps sold in the US and abroad is going after the small but competitive European market for cosmetic pumps. The other current leaders of this niche market are the leader Rexam and the Aptar group. This move by Saint-Gobain Calmar will thrust them into the number 2 position.

Calmar is best know her in the US for their dispensing packaging such as fingertip sprayer pumps, trigger sprayers pumps, dispensing pumps, cosmetic treatment pumps, and airless dispensing systems. In 1998, Calmar became part of the Saint-Gobain Group's Packaging Sector. While Calmar has now sold fragrance pumps for years in the US, their sales pale in comparison to the dominate leaders in the US fragrance pumps market: Emsar (a division of Aptar) and Rexam.

Microspray Delta who employs 70 people and whose revenues reached over €16 million, was established in 1948 an for the last 18 years specialized in producing pumps which has allowed the Milan based company to sustain growth as a result for increasing demand for pumps.

Microspray Delta currently manufacturers including screw, snap-on and crimper pumps, along with a variety of actuators, caps and other accessories. Their pumps have always been received well by packaging buyers and consumers alike due to functionality and consistent quality.

Good Job Alcan!

2005-09-08T20:18:00.001-04:00

Alcan Inc. announced today that it is donating 500,000 to the American Red Cross to assist in relief efforts following the devastation caused to the U.S. Gulf coast by hurricane Katrina last week even though Alcan does not currently have any facilities in the affected region.

"On behalf of Alcan, our deepest sympathies and prayers go out to the families and friends of the victims, in particular those who are part of our family. At present, many Alcan retirees and at least one employee were directly impacted by the hurricane," said Travis Engen, President and Chief Executive Officer of Alcan Inc. "Tens of thousands of people have lost everything: family, friends, homes, jobs. It is reassuring to see the global community unite and collectively assist the survivors to rebuild their lives," he added.

Ironically, Alcan operated a cable plant until 2003 in Bay St. Louis, Mississippi, which is a town that was virtually flattened by Katrina. This facility is one of the few buildings to have not been completely destroyed by Katrina and is being used in the relief effort. Alcan has also stated that they are monitoring developments in the region and continuing to assess additional means of providing assistance.

Alcan, not only a leader in packaging, a company setting a good example!

Injection molder for Packaging bought by Rexam

2005-09-06T13:04:00.000-04:00

The Rexam global packaging group has acquired US-based Delta Plastics who employs over 350 people for $154m.

Delta Plastics designs and manufactures jars and closures primarily for the personal care and food packaging sectors. They also have a technology center, which designs, develops and manufactures Delta Plastics own molds and automation equipment.

Delta Plastics 2004 sales reached $50m and it had net operating assets of $49m was previously owned by private equity fund Stonebridge Partners, which took control in June 2003.

Rexam chief executive Lars Emilson said: "Delta Plastics is a well run operation that has posted impressive growth rates in recent years.

"The acquisition is perfectly in line with our strategy to grow our Plastic Packaging business and enhance our current product offering. It will increase our presence in the important US market and we foresee a number of synergies in areas such as raw materials purchasing, technology access and additional sales."

Alcan and United Steelworkers move forward

2005-09-04T09:03:00.001-04:00

850 unionized employees represented by United Steelworkers (USW) Local 5668 at the Ravenswood, West Virginia, aluminum rolling mill, have ratified a new five-year agreement effective as of June 1, 2005 with Pechiney Rolled Products, LLC., a wholly-owned subsidiary of Alcan Inc.

"I am very pleased with the outcome of the ratification vote. It is a
clear demonstration that all parties concerned are determined to work together to build a bright future for Ravenswood," Michel Jacques, President and Chief Executive Officer, Alcan Engineered Products. "Building on the progress achieved in the last two years, we are now in a position to undertake new initiatives to improve the long-term viability of the plant. Soon to be re-named Alcan Rolled Products-Ravenswood, the facility is a key asset of the Engineered Products Business Group, helping to serve better a wide range of customers especially in aerospace," he added.

The Ravenswood plant is one of the largest aluminum rolling mills in the world and produces high quality aluminum plate, coil and sheet products for the packaging, aerospace, aeronautical and transportation industries.

Alcan is a multinational, market-driven company and a global leader in aluminum and packaging which employs almost 70,000 people and has operating facilities in 55 countries and regions. With operations in primary aluminum, fabricated aluminum as well as flexible and specialty packaging, aerospace applications, bauxite mining and alumina processing.

Aluminum Can Companies Donate Cans

2005-09-03T11:15:00.000-04:00

Millions of Cans of Water for Victims of Hurricane Katrina will be possible because of the generous donations by Aluminum Association member companies Alcoa, ARCO Aluminum, and Novelis whom are sending truckloads of canned water to the victims of Hurricane Katrina.

250,000 cans were shipped yesterday from The Aluminum Association's Cans for Habitat for Humanity recycling program, with the packaging donated by Crown Cork and Seal.

The companies are arranging production for about 5 million more cans for the ongoing relief effort. Packaging companies Ball Corporation, Crown, and Rexam are producing the new canned water supplies. Even beverage and can maker Anheuser-Busch Companies announced Friday its plans to donate 2.5 million cans per week.

"This is a major natural disaster with untold death and human suffering," said Aluminum Association Steve Larkin. "Our thoughts and prayers are with the people of New Orleans and the Gulf Coast."

The Aluminum Association, based in Washington, DC, represents U.S. and foreign-based primary producers of aluminum, aluminum recyclers and producers of fabricated products, as well as suppliers to the industry. Member companies operate almost 200 plants in the United States and many conduct business worldwide contributed $1,000 to the American Red Cross for the relief effort.

I am glad to see when there are so many on need, that members of the packaging industry are pulling together to make a difference. Thanks for making for making a difference.

Packaging company Rexam to build new plant

2005-09-02T09:47:00.000-04:00

Rexam global consumer packaging group has announced that it is to build a new beverage can making plant in Brazil, to meet increased demand.

Rexam's Chief Executive Lars Emilson, announced "The project is a continuation of Rexam's strategy to increase our presence in this important market and will reinforce our competitive advantage in the region. It is an important step forward in an exciting market and it will strengthen our capability to serve our beverage can customers in South America."

The packaging manufacturer Rexam is and the world's number 1 beverage can manufacturer and the cans slated for product in the new plant are regarded as the optimal packaging solution for beverage distribution.

The beverage can manufacturing plant will be in Cuiab, in the state of Mato Grosso, in the centre-west of the country which is the region with the fastest growing GDP levels in Brazil.

Is my prescription for maggots and leeches ready?

2005-08-31T10:15:00.001-04:00

Even though maggots and leeches have been used for hundreds of years for medical purposes, the Food and Drug Administration finally classified them as biotherapy medical devices which would require a prescription.

Doctors now have FDA approval to use maggots which are the larvae of green blow flies, to trim dead flesh with more precision than scalpels. Disinfected maggots which are white as snow and wiggling are applied to wounds as a last resort in some cases. Apparently there is little or no discomfort while the maggots eat decayed flesh and a treatment normally takes from 1 to 2 days.

Since the maggots only eat decayed flesh and do not touch the live tissue, to cure rate is high with relatively no pain, no need to go to operating room, and no bleeding, typically.

In addition to ulcers, maggots have been used to treat to skin ulcers, bedsores and to aid burn victims. Some of the burn victims from the Sept. 11 attack on the Pentagon benefited from this biotherapy.

According to Gilbert Waldbauer, a professor emeritus of entomology at the University of Illinois at Urbana-Champaign, prior to the FDA endorsement of disinfected maggots as medical devices, doctors would get their maggots from local insect specialists for their supplies.

Dr. Ron Sherman's maggot therapy laboratory at the University of California Irvine, ships maggots grown under sterile conditions to US and Canadian doctors and he sent enough medical-grade maggots for about 2,000 treatments.

Leeches which are usually imported from France have been used by doctors for centuries to control bleeding especially after reattachments of severed fingers and toes.

A panel suggested that the FDA needs to include instructions on how to humanely kill leeches before disposal because medicinal leeches become engorged with potentially tainted human blood, they must be disposed of as biohazardous waste.

It will be interested to see the response from PETA.

Contaminated Pepsi

2005-08-25T09:31:00.001-04:00

Pepsi Cola is in serious trouble now that testing in nearly a half a dozen bottling and packaging plants revealed alarming results of excessive E-Coli bacteria that is in health threatening levels.

The Rajasthan government announced the bad news for Pepsi in a statement by state Medical and Health Minister Digamber Singh who stated that stern action would be taken against bottling plants who failed the government testing for the presence of E-Coli bacteria.

According to the minister, 2004 Standards dictate that an E-Coli count should not exceed 50 per parts per million (ppm) but a number of the Pepsi plants plants were violating these norms with counts as high as 110 ppm according to the minister.

Now that Pepsi has joined Coca Cola in being on the bad side of the Indian government one has to wonder how much this is going to effect soft drink sales in India.

The companies on whose products the tests were conducted are: Varun Beverages Ltd and Sahil bottling Company, Alwar; Ronak Soft Drinks, Chittorgarh; Balaji Bottling, Kota; Ambika Bottling Plant, Abu Road and Balaji Bottling, Ajmer.

Coca Cola in India ordered to shut down its bottling plant

2005-08-20T16:05:00.000-04:00

Coca Cola was ordered by the pollution control authority of the south Indian state of Kerala to shut down its bottling plant in Plachimada of Palakkad District.

According to the Kerala Pollution Control Board Chairman G Rajmohan that waste from Plachimada Coca Cola's plant is contaminating the drinking water of the adjacent villages, and that the Coke bottling plant’s waste treatment system is inadequate.

G Rajmohan explained that the Pollution Control Board found cadmium content in the sludge generated by the Coke bottling plant was above permissible limits.

Spokesperson from Coca Cola said that the company is evaluating the steps to be taken in the future, including judicial measures.

Packaging unchanged for Mars and Snickers

2005-08-19T15:54:00.000-04:00

Even though more than 3 million bars were recalled and destroyed in New South Wales afterMasterfoods received a series of threatening letters seven weeks ago, the candy bars return to the shelves today in the original packaging.

There was considerable speculation by packaging insiders (see packaging blog article Packaging rethink for Mars and Snickers) that Masterfoods who lost at least $10 million in the cost of recalling potentially tampered with chocolate bars would change their packaging to a more tamper proof package, but according to the president of Masterfoods, Andy Weston-Webb "We've looked at tamper-proofing packaging and if we could we'd consider it, But there really is no tamper-proof packaging that is available in the marketplace. We'll always look at opportunities to improve the security of packaging."

Masterfoods says for confidentiality reasons it cannot say whether the cost of a recall of the bars will be covered by insurance.

Rigid packaging prices expected to climb

2005-08-17T16:51:00.000-04:00

According to the S&P depending on their contracts, processors can expect the higher raw material costs for ridged packaging to be to be passed on soon.

Those companies using rigid plastic containers, metal and glass for their products will the ones most affected by this increase in packaging prices. It is predicted that cosmetics and toiletry producers can expect the higher costs to be passed on sooner than other industries.

According to a Standard & Poor's report released this week, a significant number of manufacturers have responded to recent price hikes by managing their packaging inventories more efficiently and by shopping for their packaging more earnestly and purchasing lower priced packaging.

According to Liley Mehta a credit analyst for Standard & Poor's stated that ongoing raw-material price pressures, mainly due to significant hikes for plastic resin, and limited year-over-year volume growth are the key issues facing the packaging industry.

She went on to say "End customers are also managing their inventory balances in anticipation of raw-material price movements, and smaller order patterns have affected volume growth for plastic packaging suppliers".

Because of increased oil and natural gas prices and efforts by the petrochemical companies to push through further hikes are going to offset the slight decrease in prices we have seen the past few months in some plastic resins such as polypropylene and polyethylene. Now it appears that resin prices will increase for the remainder of the year adding further pressure to flexible plastic packaging companies.

Since most companies that produce ridged packaging generally have contractual agreements allowing for price adjustments due to raw material increases, they will be able to pass down their increased costs to their customers.

Also hit by increased raw material cost is the glass packaging sector in the US due to higher natural gas prices and increased soda ash prices, though most glass packaging producers are expected to gradually recoup higher energy costs through the price adjustment allowances within their contacts with their customers.

Food Packaging Labels are critical to sales

2005-08-16T16:42:00.000-04:00

According to a new study by ACNielsen a packages label is a crucial factor in a consumer decision to purchase a product.

The Online Consumer Opinion Survey which was conducted by ACNielsen who asked 21,100 consumers from North America, Central and South America, Asia, Europe and South Africa about tier level of understanding food package labeling, when they would even check the labels on food packaging and what they actually were checking as they were shopping.

The president of ACNielsen Asia Pacific Bienvenido C. Niles Jr commented "For manufacturers of packaged goods, the product's nutritional proposition - whether it appeals to the specific selection criteria of the consumer - and the clarity of the information on the nutrition panel are critical at the point of product trial," and went on to say "Whether the product 'contents' meet the consumers' selection criteria, and how easily the label is understood, can determine whether or not the consumer proceeds to purchase the product, or return it to the shelf."

What I found interesting about this study on packaging labels and how they affect a consumers purchasing response is how local customs and culture have such a strong influence as to whether a consumer will or will not check the labels of food packages as well as how versed they are with what is contained on the packaging labels.

A glaring example of how local customs and habits can influence a consumers interaction with labels on food packaging is that In Japan, for example, consumers place such a high level of trust in well-known manufacturers, and given the strict legal restrictions in Japan which causes consumers to believe that the only products being sold are of the highest quality thus 24 percent of consumers in Japan never even check food labels. Compare this to Thailand where 41 percent and India where 32 percent of consumers claim to always check labels on food packaging.

The study found that North Americans had the best understanding of food labels and nutritional information and awareness of food related health issues such as the consumption of trans fats, but surprisingly still had a significant percentage of consumers who did not check what they eat.

According to Alice Fawver, senior vice president, retail measurement services, ACNielsen US Marketing "Food labels represent an important opportunity for consumer packaged goods manufacturers to differentiate their products and build consumer trust, but the opportunities are lost if labels aren't being read," and that "It is critical for manufacturers to make their labeling as relevant and clear to their consumers as they can, given consumers are making purchase choices based on the information on the packaging. If they can't understand the label, they may not risk the purchase."

Organic Packaging under review again

2005-08-15T15:41:00.000-04:00

The US federal government is now writing new regulations concerning organic food packaging labeling as a result of legal challenges by an organic blueberry farmer from Maine.

Obviously the new rules are detrimental to consumers as products must be 95 percent organic in order to be qualify for the US Department of Agriculture's organic seal for packaging, but presently products with 70 percent organic ingredients are allowed to advertise on their packaging and elsewhere that they have been "made with organic ingredients".

It seems quite obvious that organic manufacturers said they might switch to the "made with" organic ingredients label that could result in less organic ingredients used which does not help the consumer by keeping healthier products in the food stream or encourage organic and more environmental sound farming methods.

In my humble opinion in order to be labeled as organic, food should be 100% organic. If I order a slice of toast, I want 100% toast, not 95% toast and 5% shoe leather. I would also refuse to eat toast that is made from 70% bread and 30% non bread ingredients.

Even though Arthur Harvey's 2002 suit with the alleged that the organic food regulations were far more lax than the original legislation intended failed, Harvey won several points on appeal including limiting the use of non-organic agricultural products in food tabled "organic." (see packaging blog article:Organic Seal results in USDA Law Suit).

Now the National Organic Standards Board, which advises the US Agriculture Department, will be meeting to discuss the ramifications of Harveys' lawsuit.

AUSPAK:Packaging Trade Show

2005-08-10T16:44:00.000-04:00

The AUSPAK is Australia's only trade show that is an international exhibition of packaging and processing machinery, materials and associated technology which has been steadily increasing ion popularity with packaging professionals from around the world.

AUSPAK 2005 will be held in Sydney from October 11 th to the 14 th at Sydney Showground, Sydney Olympic Park. This even is only held once every 2 years and is alternated between Sidney and Melbourne Australia. Expect to see the latest packaging machinery, packaging products, and technology with more than 900 brands on display from over 200 exhibitors. Catagory of buyers attending this packaging show include food, beverages, chemicals, household products, confectionary, printing, packaging, pharmaceuticals & cosmetics and plastics.

The last AUSPAK show saw a 19.5% increase in attendance when compared to the previous AUSPAK show and if they keep it up this will become a world class packaging show.