Issue 63 15 July 2009

Seeking AuStrAliAn- mAde privAte lAbel

impreSS ComeS to thAilAnd

TrendwaTch world news

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chInese canneX an eYe-oPenera focus on low-cost can making took centre stage at cannex asia Pacific – the world canmaking congress – which was held in china for the first time. Impress has a formal alliance with orG, one of the largest chinese can makers, another important reason to attend.

A team from Impress Australasia attended Cannex Asia Pacific from 8-10 June at the China Import & Export Fair Pazhou Complex in Guangzhou, China. General Manager Technical and R&D, Andrew Buchan, said Impress maximised its exposure at Cannex by taking one person from each plant in Australia and New Zealand.

“Our team comprised a whole range of different employees – not necessarily plant managers – from across the business,” he said.

Opening ceremony at Cannex Asia Pacific in Guangzhou, China.

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“The show was a real eye-opener to the sheer immensity of China – just the enormity of the place and the number of people was incredible, especially if you hadn’t traveled there before.

“There were well-known suppliers from Europe and the US, and one well-known Australian supplier. We were also exposed to the huge range of Chinese equipment and can suppliers,” Mr Buchan said.

Supplier Canman exhibited a new induction/curing system, a very compact unit, much smaller than existing systems and which uses less energy.

New Soudronic welders made in Switzerland and assembled in China were also on display.

Mr Buchan said it was interesting to see the huge range of standards relating to cans and ends being manufactured in China.

The Impress stand at the show, staffed by employees from the new office in Hong Kong, allowed Impress to showcase its product range to the Asian can market.

“There was lots of interest in our product, especially in some products not yet available in China, such as our Easy Peel closures and the drawn food cans,” Mr Buchan said.

Two Chinese companies were also offering waste gas incinerators – just a couple of examples of the growing focus on sustainable-practice, environmentally friendly technologies on show.

Soudronic, for example, demonstrated its high-speed welder which runs up to 1000 cans per minute with body plate of 0.15mm and down as far as 0.10mm.

A number of quality measurement suppliers also exhibited at the show, each offering fully automated versions of their equipment operating across a range of parameters.

Hinterkopf made an impressive presentation detailing its new monobloc aerosol necking machine, a new entrant in the necking machine market, while its opposition Mall & Herlan showed their impressive can decorator.

Cannex was first held in Thailand in 1994 and has since toured the world. Next year it will be held in Las Vegas, USA.

TrendwaTchseekInG ausTralIan-made PrIvaTe labelWith the growth of private label product ranges fuelled by the economic downturn, local manufacturers are working harder than ever to differentiate their brands, to innovate and to highlight their products are Australian-made.

Australian Made, Australian Grown CEO Ian Harrison said Australian consumers are very concerned about the economy and they are realising that buying Australian-made means they are supporting local jobs, and the overall economy.

“Consumers have become wary of cheap, low-quality products made with poor guarantees and in environments that may not be safe.

“Buying Australian products or produce gives consumers a certain level of confidence in what they are purchasing, as well as long-term value for money,” Mr Harrison said.

According to the Euromonitor canned and preserved food country sector briefing

for June 2009, private label has grown and increased its foothold in canned and preserved food.

This is due to private labels faring well in preserved fish and seafood, canned tomatoes, canned and preserved fruit and other canned and preserved food, with value shares of 19 per cent, 27 per cent, 19 per cent and 26 per respectively.

Moreover, as private labelers emulate new products from premium brands consumers will purchase private labels for their low price and improving quality.

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Impress has strengthened its brand identity.The new logo features the Impress blue and green with bolder letters and an enlarged symbol so it is more of a focal point. The symbol is integrated into the letters so they become one unit and the blue and green colours are reversed in the symbol to make it read better as one word.

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However, according to Euromonitor, as retailers take greater control private labels might not be able to charge such low prices.

2009 heralded the rise of the house brand with only nine per cent of consumers not buying house brands and 41 per cent buying more than they did 12 months ago. This was revealed in this year’s Eye on Australia report, released in May 2009 by the ad agency Grey.

According to Simon Rich, Grey’s Director of Planning, “House brands have really cemented their popularity in the last year and in many cases their quality matches their competitors. They tend to be economically priced which works well in the current environment.”

“However, there are opportunities for traditional brands. Classic brands should take advantage of their heritage and see

this as the time to re-connect consumers with an old favourite.”

As retailers expand the offerings and marketing of their own brands, cereal giant Kellogg’s has contended that the threat of private labels can be quelled by continued product innovation and renewed focus on value.

According to just-food Kellogg’s UK Marketing Director said, “companies that continue to invest in the recession will be the successful ones. Private labelling has been very much driven by retailer visibility rather than consumers swaying to it,” he said at a briefing in London.

Similarly in Australia local manufacturers continue to work hard to differentiate their products and reinforce quality and value for money.

InnovaTIonwd-40 Is TrIGGer haPPYWD-40 is now available in a Non-Aerosol can.

WD-40® Trigger Pro was created especially for industrial users in a non-aerosol-based format.

The new product has two settings – spray or stream and should see less mess compared to other non-aeorsols on the market. The off position on the nozzle also means no accidental spraying in the truck, tool box or storage cabinet.

Another feature is the recyclable steel packaging, made by Impress.

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envIronmenTsusTaInable PackaGInG Trend GaThers PaceA new report from independent market analyst Datamonitor identifies sustainable packaging as a growing consumer issue, revealing that although sustainable packaging is not yet a primary motivator of purchases, it is becoming a consumer expectation.

Sustainable packaging is one of a growing number of issues driven by ethics, economics and environmentalism. Economic imperatives, as well as possible greater regulation, mean that more brands need to consider adapting their present approach to accommodate sustainable packaging, said Matthew Adams, consumer analyst at Datamonitor and author of the report.

Although it is universally recognised that the global economic recession is having a negative impact on countries and individuals, it may result in some consumers changing their lifestyles for the better. While recession means that consumers often have to act in a more self-serving manner, for instance buying fewer groceries, many of the recession-inspired consumer behaviours could be said to be beneficial for the environment.

Recession makes everyone act more efficiently and, as fewer purchases are made, there is potentially less waste. Rising fuel costs have also made numerous consumer packaged goods companies question their current practices and seek

cost savings by reducing packaging in order to cut the amount of weight that is transported from factory, to shop, to end consumer. However, producers must continue to protect products throughout their lifecycle, while making credible adjustments to packaging that benefit all.

The results of Datamonitor’s consumer survey in the second half of 2008 show that, in the UK, 39 per cent of consumers feel that packaging design has a medium or high level of influence over their choice of food and drink products. However, of this proportion, only nine per cent felt that it exerted a high level of influence on their purchases.

Few consumers will admit to the influence that packaging has on their decision- making process, as it is often taken for granted. However, increasing consumer concern about ecological matters means that packaging is an issue that is rising to prominence.Source: www.datamonitor.com July 2009

world newsImPress comes To ThaIlandImpress Group B.V. and Royal Can Industries Co. Ltd. have announced they have reached a definitive agreement to create a joint venture to sell and manufacture aluminium food and seafood cans in Thailand.

The new company will be called ‘Royal Impress’ and will be headquartered in Royal Can’s existing premises in the Bangkok area.

Royal Can is one of Thailand’s leading can makers, with a complete range of steel and aluminium cans produced on highly efficient modern equipment.

Impress currently exports aluminum cans from its European factories into Thailand. Many of them are filled in Thailand to be re-exported to the world’s main consuming markets in Japan, North America, and Europe.

“The new company will have a winning combination of market knowledge, technical skills and research and development resources”, says Thavee Thanawatcharangkoor, Managing Director of Royal Can. “The association with Impress will enable us to bring the highest level of technical assistance to our customers to support their export activities, and to introduce the latest innovations and developments in aluminium seafood cans.”

“With this venture in Thailand, our recent acquisition of Megasa in Spain, our new factory in Morocco, and our joint venture

with Inesa in Peru, Impress is now present in seafood cans on five continents and in each of the major seafood processing countries in the world,” says Francis Labbé, Chief Executive Officer of Impress Group. “Thailand is the world’s largest exporter of canned tuna, and Thai seafood products are on the shelves everywhere in the world. As global leader of this growing market, Impress had to be physically present in Thailand. We are proud to be associated in this venture with Royal Can, Thailand’s leading independent can maker.”

nesTle InvesTs In asIaSpeaking at a media conference at the end of his tour of South East Asia – which took him to Thailand, Vietnam, Malaysia, Indonesia and Singapore – Nestlé CEO Paul Bulcke said that the company will continue to invest in the region and expand its business and manufacturing facilities there.

Over the last three years, Nestlé has spent over $650 million in capital investments in its ASEAN operations. In 2008, Nestlé’s business in the region experienced 15 per cent

organic growth, with sales of around $5.9 billion. In 2009, Nestlé’s investments in the region will amount to $310 million.

In Thailand Nestlé is investing in two significant manufacturing projects, the construction of a new Nestlé Purina pet food factory located in the Amata City Industrial Estate, and the expansion of the existing Navanakorn facility, where Nestlé (Thai) Ltd produces milk and coffee products. The pet food plant, which will create 135 new jobs, will be one of the most advanced factories of its kind in the world, thanks to its state-of-the-art processing technologies.

In Vietnam Paul Bulcke opened the new Maggi production plant at the Nestlé factory in the Dong Nai province, where Nestlé will create over 800 jobs by 2010. The plant will meet the growing consumer demand for Maggi products in Vietnam, Cambodia and the Philippines.

In Malaysia, Nestlé has committed a capital investment of $101 million for 2009 to meet the increasing demand for halal products of which Nestlé Malaysia is the Centre of Excellence for the Nestlé Group. The investment supports the set-up of new regional plants for Nescafé and non-dairy creamer as well as the expansion of its Maggi facilities following the stronger export demands for its products in the region, the Middle East and Europe.

In the Philippines, Nestlé’s investments in 2009 will amount to $86 million. An additional expression of Nestlé’s commitment to the region was the establishment of a Nestlé shared service centre for financial and employee services in the Philippines in 2008, which helps to maximise Nestlé’s operational efficiency throughout the ASEAN region and Oceania.

In Indonesia, Nestlé will invest a further $34.5 million in 2009, after a major investment of $155 million in the last two years, supporting the expansion of the Kejayan milk factory in East Java in order to meet the increasing demand. After the completion of the project, the Kejayan factory will be one of the ten biggest Nestlé milk processing plants in the world.

In addition to investments in its production facilities, Nestlé has globally invested around $2.3 billion in research and development last year. One of the research projects in the ASEAN region is the partnership between Nestlé’s R&D centre in Tours, France,and the Indonesian Coffee and Cocoa Research Institute (ICCRI) on the large-scale propagation of coffee and cocoa trees. So far over a million high-yield, disease-resistant cocoa plantlets have already been distributed through local partners, a figure which, according to the Indonesian Ministry of Agriculture, should reach $70 million by 2011.

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uPcomInG evenTs

5 decemberFTaa hot Topics workshophemisphere conference centre, melbourne

E: fta@ftavic.com.au

F: +61 3 5971 5817

24 aPrIl 2008International steel Packaging congress (at Interpack)

düsseldorf, Germany

Visit www.apealcongress.org

2007/0822–23 novemberFood regulations and labelling standards conference radisson Plaza, sydney

P: +61 2 9080 4300

E: registration@informa.com.au

Visit www.informa.com.au/foodregulations

28–30 novemberlabelexpo asia 2007shanghai, china

For more information, please contact

FoodNews marketing department at

www.labelexpo-asia.com

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5-7 ocToberPackexpo International

las vegas nv us

Visit www.packexpo.com

28-29 ocToberThe canmaker summit

dubai

Visit www.spgevents.com

8 JanuarY 2010deadline for entries to the

Paris aerosol awards

Visit www.aerosol-forum.com

9-10 march 2010aerosol Forum

Paris, France

Visit www.aerosol-forum.com

2009-1017 JulYdeadline for entry into

The cans of the Year awards 2009

Visit www.spgevents.com

25-26 auGusTaustralian Packaging summit 09

Grand hyatt, melbourne

Visit www.acevents.com.au/packaging2009

28-30 sePTemberProPak IndiaPragati maidan

new delhi, India

Visit www.allworldexhibitions.com.propak

2 ocToberPackaging council of australia

Packaging awards Presentation dinner

Visit www.pca.org.au for more information