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CANS USED IN ‘VISIONARY’ CAMPAIGN ORG PACKAGING’S BPA-NI CANSTOCK WORLD NEWS: WORLD NEWS: ISSUE 153 JUNE 2015 CAN & AEROSOL NEWS CAN BROUGHT TO YOU BY STEEL STAMPED PERMANENT

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Page 1: CAN & AEROSOL NEWS sTeeL sTAMPeD  · PDF filesTeeL sTAMPeD PeRMANeNT . 03 orG Packaging, ... and marketing high- ... Dalda, the vegetable fat which Levers introduced

CANS USED iN ‘ViSiONARY’ CAMPAiGN

ORG PACkAGiNG’S BPA-Ni CANStOCk

World NeWs:World NeWs:

Issue 153 JUNE 2015

CAN & AEROSOL NEWSCAN

BROUGht tO YOU BY

sTeeL sTAMPeD PeRMANeNT

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CAN & AEROSOL NEWSCAN 02

A recent study updating definitions in the sustainability paradigm has seen steel and aluminium meet the criteria that enables them to be classified as ‘permanent materials’.

Steel and aluminium are generally used in a way that excludes degradation during the usage phase and recycling process, which means they can be used over and over again without losing their properties or requiring additional materials.

the study, undertaken by Swiss consultancy firm Carbotech in collaboration with the University of Applied Science Northwestern Switzerland (FNhW), looked closely at the characteristics of materials to provide a clear and simple basis for material classification, examining both the chemical and physical

processes to help define what is permanent and non-permanent.

the study defines a permanent material as one whose properties do not change during use, and through repeated recycling.

the scientific definition from the study says:

“A material is defined as permanent if its inherent properties do not change during use and through solid-liquid transformation, it can revert to its initial state. this is the case when the material consists of basic components, which are either chemical elements or robust chemical compounds, making repeated use and recycling possible without change of inherent material properties.”

the research explains the differences between materials that lose their

inherent properties when recycled (degradation) and materials that do not. those materials that keep their properties can be infinitely recycled.

the infinite recyclability brings with it significant savings in material resources.

“Aluminium and steel can be considered permanent materials as their inherent properties do not change during the use and recycling phase,” said Carbotech project leader on the study, Dr Fredy Dinkel.

“We can say that aluminium and steel in rigid packaging are true enablers of the circular economy.”

the study was undertaken in response to the one-dimensional nature of classifying materials as renewable or non-renewable. A summary of the study reads:

“this simplistic categorisation is, in our view, insufficient for the development of good practices in sustainable resource management: it fails to account for material degradation and its impact on resource management and is therefore, incomplete.”

Chairman of Metal Packaging Europe, Peter Lockley, said that the results of the study were further evidence of metal packaging’s utility.

“the permanent materials concept perfectly matches society’s vision for a circular economy,” he said.

“Stimulating the recycling of permanent materials will make our economy more sustainable and less dependent on primary metal imports.”

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Issue 153 JUNE 2015

sTeeL sTAMPeD PeRMANeNT

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orG Packaging, one of China’s fastest-growing canmakers, will unveil plans to expand the market for PeT-coated canstock at the June 2015 Cannex show in China.

As reported in The Canmaker, the push comes in response to demand for food cans that have a low environmental impact in the canmaking process and meet a growing need for BPA-Ni coatings.

ORG Packaging already has a selection of the laminated steels for use and it is expected to announce that a subsidiary company will offer laminated coatings for tinplate and aluminium.

ORG Packaging has been developing a range of polyester film-laminated steels since 2008, and by the beginning of 2014 had set up a production line with capacity to produce

50,000 tonnes a year.Since then it has supplied

a selection of the laminated steels for use on can ends made for Want Want milk products, Lu Lu soft drinks, Dulux paint cans and for drawn cans used by tomato paste packer Provence.

At Cannex, ORG subsidiary OGS is expected to announce that it will offer laminated coatings for tinplate and aluminium next year, and will be expanding the capacity of its production line at Zhe Jiang to 200,000 tonnes a year.

Film-laminated coatings have been available in Japan since the early 1990s, and were superseded by co-extrusion processes to enable thinner coatings to be applied. Since then thinner films have been produced for use on laminating systems, which explains the comeback for laminated steels.

ORG says that it applies 15–20 micron films to tin-free steel in a range of specifications for three-piece and drawn cans and ends. the PEt films are applied in a patented heat-treatment system without adhesives, offering further savings. OGS calls its product FMt, with its tFS gauges ranging from 0.14–0.35mm and widths from 700–1030mm. it is available in transparent, white and gold finishes.

OGS was originally called Shanghai New Materials Co, and was created as a wholly-owned subsidiary of ORG with the objective of exploring a low-carbon model and researching its use in metal packaging. its focus is on cutting emissions, improving product safety, and offering convenience with new innovations.

Since 2008 Shanghai New Materials Co has been

researching film-laminated materials under the brand name FMt – from the R&D stage to product manufacture – with a view to offering high-quality packaging that gives something back to the community. Pilot production of the laminated steels started in 2012.

in February 2014 the company was rebranded as OGS – its name stands for ORG, Green, Safe – when it formally started producing and marketing high-temperature laminated steels commercially in China and thailand.

Subsidiaries of Japan’s toyo Seikan produce

the largest amount of polyester-coated steel and aluminium coil, and in Europe both tata and Arcelor have capacity to make the steels for niche sectors such as aerosols.

For food and beverage cans, the arguments for using polyester coatings are that in the canmaking plants ovens for curing both solvent and water-based coatings are not needed, and some consumables are removed – reducing both costs and environmental impact. Source: The Canmaker

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Issue 153 JUNE 2015CAN & AEROSOL NEWS

CAN

ORG PAckAGING’s BPA-NI cANsTOck

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AeROPLANe fOOD TINs POPuLAR fOR Re-use

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At a time when most food packaging is cheap and disposable, budget Indian airline IndiGo has designed tins for people to take home and use again, reports the Times of India.

“People use the tins for keeping coins, pens, staples, scissors, clips, pins, bangles, earrings, pendants, eatables,

plant pot, nails, etc,” said an indiGo spokesperson. “Some of our customers have used our cashew tins as a travel jewel box.”

indiGo is not the only brand that has realised that reusable tins are a neat way to involve customers beyond the actual use of the product. the cult of strong-flavoured Altoids Mints, for example, is

boosted by websites listing different ways to reuse the rectangular tins (including first aid kit, mini flashlight or pinhole camera).

Reusing tins fits into a number of current trends such as environmental consciousness, retro design appeal, self-reliance and the hipster passion for handicrafts.

Underlying these trends, and the reason why they resonate, are the memories many have of tins being hoarded and reused.

We might store provisions today in rows of identical PEt containers, but we remember kitchens lined with tins of different shapes and sizes, which actually made it easier to remember

which items were in what. tin cans were rarely discarded after their original contents were used, but were washed and kept for multiple uses.

Gary S Cross and Robert N Procter’s book Packaged Pleasures, a study of how technology changed marketing and consumption, explains how around 1810

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British inventor Peter Durand started packaging meat for the Royal Navy in metal boxes. “Named after traditional cane ‘canisters’, Durand’s iron cans were covered in a thin coat of tin to prevent rusting – hence the name ‘tin can’.”

tin cans became mass market when the industrial revolution made biscuits one of the first industrially produced food products. Biscuits were durable and could be made on a large scale by bakeries equipped with new machines.

the food’s fragility was a problem but this was solved by packing them in large boxes made of the tinplate being rolled out by new factories, and dispatching them through new, smooth-running transport systems.

Air-tight, water-proof

and insect-proof, these tins had obvious storage benefits in tropical climates. A less obvious benefit was found in large joint families where privacy was hard to come by – tins, rather than transparent bottles, were ideal for secreting personal possessions away from the curious or covetous eyes of other family members.

Another use was cooking.tin cans were soon such

a valuable commodity in india that in 1903 the Times of India noted a dispute between bulk importers of kerosene and those who imported it in cans. “Oil imported in cans, it has long been complained, has enjoyed an unintended advantage over the commodity imported in bulk, in as much a specific duty has been levied on the

oil alone, no account being taken of the value of the tin cans.” Second-hand cans sold for a not inconsiderable sum.

And this was just before the real revolution in tin cans took place. Cross and Procter explain that cans were soldered shut by hand, a time-consuming process, until the development of the sanitary can. “Perfected in 1905, the sanitary can eliminated most soldering by use of double seams assuring an airtight seal. the process was a marvel of industrial engineering, albeit virtually ignored by historians of technology.” Canning could now be done faster and was safer, greatly extending its potential.

the company that really capitalised on this in india

was Lever Brothers. Dalda, the vegetable fat which Levers introduced in 1937, was a controversial product both criticised by adherents of pure ghee and adulterated by imitators. to emphasise its purity all ads for Dalda prominently

featured the line “Sold Only in Sealed tins” and depicted images of the tin with its palm tree design. As Dalda became a success in the market it was accompanied by multiple uses being found for its empty tins.Source: indiatimes.com

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synlait and New Hope are pursuing an online direct-to-Chinese consumer strategy for their NZ-made infant formula product Akarola, as reported by Keith Woodford writing for interest.co.nz

the Akarola project joint venture between China’s New hope agri-food conglomerate (75 per cent) and Synlait (25 per cent) has set out to market New Zealand-made infant formula direct to consumers online through JD.com.

the strategy is based on cutting out the multiple layers of middle men and pricing the product at just a fraction of what Chinese consumers are used to paying. however, the strategy will only work if

Chinese consumers can be convinced that low price does not mean low quality.

the Akarola project has the potential to transform the Chinese infant formula market.

New hope and Synlait are a powerful combination. New hope knows what it is doing and has the marketing budget to get the message across – but that doesn’t mean there will be no hiccups along the way.

there have been some problems with supply, but the online comments at JD.com are generally favourable (apart from one parent grumbling that they could not find the spoon buried in the powder).

in New Zealand it is

hard to understand the importance that Chinese mums and dads put on infant formula. in China, having a baby is a huge investment decision as well as an emotional one. Accordingly, deciding on the brand of infant formula is right up there alongside buying a house and buying a car in

terms of the personal research that Chinese parents undertake.

While Chinese parents may feel they are being ripped off when they pay three and four times the international price for formula, they still want to know that the formula they buy is up to genuine international standards.

Recently there was a remarkable development in the Akarola story reported within the Chinese dairy industry saying Wal Mart China, which has more than 400 stores across China’s cities, is now going to sell Akarola in-store at the same low cheap online price of 99 RMB per 900g can.

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NeW ZeALAND AT fORefRONT Of chINA INfANT fORMuLA DIsTRIBuTION chANGes

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how can this be? Wal Mart has said that it will buy the product in bulk once it is cleared through customs and then distribute the product itself to its stores. in much of the world such an approach would be totally unremarkable, but this is unusual for China.

it would seem that Wal Mart is happy to take

exceptionally slim margins on Akarola. it may even be a ‘loss leader’. the real aim is not to make a big profit but to attract customers into the Wal Mart stores.

By some estimates, Wal Mart has about an eight per cent market share of Chinese supermarket trade, but in recent years it has been struggling.

this is part of its strategy to get back on track.

So already we are seeing the transformational effect of the New hope and Synlait strategy with two reactions. First it was Yashili saying it would match New hope and Synlait with a low-priced product online, and now we are seeing the first reaction from the supermarket channel. the ball is rolling.

this raises the question as to how big this might all be for Synlait?

My bet is that it will look closely at increasing its canning facilities. this is despite the present canning facility still being in its first year of operation. in the overall product mix, and with

the current canning facility at full capacity, somewhere around 75 per cent of the Synlait product would still be going out in bulk form: either as wet-blended base powder for infant formula (in itself very much a value-add product) or as simple whole milk powder.

in regard to Synlait, it is worth noting that it started as a private company of New Zealand investors.

Synlait’s share register shows that currently the major shareholder is Bright Dairy from China at 39.1 per cent. then comes FrieslandCampina from holland at 9.99 per cent held through FNZ Custodians. then comes Matsui from Japan at 8.4 per cent.

A further misunderstanding is that Synlait produces the milk itself. it used to own some farms, but in 2010 they were split into a separate company now called Purata, with minimal overlapping shareholding.

About nine per cent of Synlait’s milk now comes from Purata, which is controlled by Chinese company Shanghai Pengxin. the rest of Synlait’s milk comes from about 160 kiwi-owned farms.

Keith Woodford is Honorary Professor of Agri-Food Systems at Lincoln University, writes a regular column for interest.co.nz and his archived writings are available at http://keithwoodford.wordpress.com.

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NeW ZeALAND AT fORefRONT Of chINA INfANT fORMuLA DIsTRIBuTION chANGes

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CoNT.

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cANs useD IN ‘VIsIONARY’ cAMPAIGNWorld NeWs

Beverage giant Coca-Cola has created two new international campaigns bringing the ‘share a Coke’ concept to the blind and visually impaired.

the successful ‘Share a Coke’ campaign, where

people’s names are written on the side of Coca-Cola products, has rolled out to over 80 countries since its inception in 2011.

in Mexico and Argentina Coca-Cola has now added names in a new

language on the side of their cans – braille.

Advertising agencies Anonimo in Mexico and Geometry Global in Argentina each went about the campaign separately, but with the same goal.

Anonimo set out to bring the campaign to the visually impaired through Fundacion ProCiegos, a non-profit group that trains and prepares blind and visually impaired adults to enter the workforce.

the concept was unveiled at Comite internacional Prociegos i.A.P in Mexico City, where a vending machine dispensed personalised cans to 100 students able to read braille. the campaign was then brought to movie theatres, with stations set up to create personalised braille cans.

the Argentine campaign printed braille cans for

members of blind soccer team Los Murcielagos (the Bats).

“to wrap up the campaign, we surprised our consumers with an only-Coke-can-do activation: the first personalised Coca-Cola bottles with braille labels,” said Stephan Czypionka, Coca Cola marketing director Argentina, Uruguay & Paraguay.

“Stemming from the classic Argentine insight

that Cokes are shared after playing a soccer game, we leveraged our partnership with the Argentina Soccer Association to create a unique experience with the Murcielagos, our national soccer team for the blind, so they too could share a Coke among their team.”

A video that captured the moment has garnered over 1.5 million views on Youtube.

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chINese If MARkeT uPDATeINcReAseD fORMuLA ReGuLATIONTighter regulation of imported infant formula in the Chinese domestic market is expected following the third reading of a draft revision to the National People’s Congress (NPC).

the regulations will require infant formula manufacturers to register their product

with China’s food and drug regulatory agency.

the draft revision of the Food Safety Law was submitted to the NCP Standing Committee prior to a legislative session.

the intention of the new regulations is to bolster the confidence of Chinese customers in the country’s domestic dairy industry.

A reported by China Daily, the Food and Drug

Administration said there are over 1,900 varieties of infant formula available in China, with each manufacturer offering up to 20 varieties each, as opposed to other countries where firms are producing and selling only two or three varieties.

“Some producers [are creating] new formulas purely for the sake of marketing,” the lawmakers said.

“this review of infant formula legislation aims to ensure infant food safety.”

the first Food Safety Law was enacted in 2009 following the 2008 Chinese milk scandal, where formula produced by leading Chinese dairy firm Sanlu was found to contain melamine.

the adulterated dairy product caused the death of six infants and thousands of related illnesses.

Resulting consumer doubts regarding domestic product has created significant demand for infant formula imported from Europe, New Zealand and Australia.

fORMuLA cLAIMs cuTChina’s legislature has passed an amendment to advertising law to prevent advertisers from claiming that their infant formula products can fully or partially replace breastfeeding.

the move is part of a government initiative to increase the proportion of babies that are breast-fed during their first six months to 50 per cent by 2020.

the draft reads: “Dairy products, drinks and other food advertisements that claim to partly or completely substitute mother’s milk shall be banned from mass media or public venues.”

those found to be party to any breach of the ruling could be liable to fines of up to one million Yuan (A$209,676).

the legislature went so far as to discuss banning advertising for infant formula altogether, but instead opted to limit the claims manufacturers and marketers can make.

the International Business Times reports that shunning breastfeeding is a by-product of China’s rapid economic growth, with young mothers increasingly relying on grandparents to care for infants and the emergence of a middle class that sees breastfeeding as boorish and uncivilised.

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