AUGUST 2016MARKET INSIGHTS

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PACKAGING

CREATIVE Coffees

TASTEMAKERSLeading European plastics manufacturer Greiner Packaging has entered the booming coffee-capsule category, seeking to elevate both product taste and sustainability standards versus what is available today. The company’s plastic coffee capsules are manufactured using multibarrier technology (MBT)—polypropylene plastic with a barrier layer of ethylene vinyl alcohol (EVOH)—which creates a higher oxygen barrier inside the capsule. By enabling better protection of the coffee from external factors, Greiner’s capsules deliver a longer shelf life and improved aroma protection. The company’s meticulous production process also boosts category standards for sustainability. A fully automated camera system oversees the entire touchless production and filling processes, while the use of computer tomography for quality control ensures that each capsule is manufactured and filled to precise measurements. Any rejected capsules are ground up and fed back into production, thereby reducing waste.2

ON-THE-GO CUP OF JOE

FORTO, a two-ounce organic-coffee energy shot with twice the caffeine of two regular cups of coffee, needed to convey its innovative product proposition in an intuitive, appealing way to the brand’s target consumer. Choosing to replicate the familiar, premium look and feel of the to-go cups found at coffee shops, FORTO collaborated with Berlin Packaging to create a miniature version of the coffeehouse experience. The package was designed with a “coffee-cup-lid-style snap-on closure” to help associate the product with coffee while differentiating it from other energy drinks. A bold, brown color palette on the shrink sleeve and closure helps further the coffee connection. FORTO’s special injection-molded polypropylene resin package is able to handle 190-degree temperatures with durability and integrity, with a conduction-sealed lid that utilizes a custom foil-based liner. The end result? A compact, highly portable, spill-proof package that is perfect for on-the-go sipping.3

Today’s coffee drinkers want more out of their coffee. The National Coffee

Association’s latest Drinking Trends report shows a marked increase in

consumption of gourmet/specialty coffees over the past eight years: from

13 percent to 36 percent for people aged 18–24, and from 19 percent to 41

percent for those aged 25–39.1 Capturing a share of that growing market

means that companies need to think outside the box when it comes to giving

consumers a high-quality, memorable product experience.

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SUPPLY CHAIN

CRAFTING Efficiency

AUTOMATED EFFICIENCYMassachusetts-based Jack’s Abby Brewing Company, an award-winning brewery specializing in lagers, has been replacing its manual operations with automated packaging equipment to keep up with increased demand. The company’s newly installed can line has quadrupled the cartoning speeds for 12-pack cans. Jack’s Abby also upgraded their filling and seaming processes with

equipment from CFT Group, which has a rated speed of 160 cans per minute. By integrating two machines from a single manufacturer, the company reduces the time needed to transfer cans from the filling to the seaming process. The increased efficiency in transfer time reduces exposure to oxygen and produces a higher-quality end product.5

UPGRADING TO AIRColorado’s Oskar Blues recently enlisted the help of BW Container Systems to help cut the company’s water usage at its three breweries. The resulting upgrade to its can-rinsing equipment is projected to save Oskar Blues more than five gallons of water per minute, a potential savings of $20,000 annually. BW Container Systems converted the existing water-based rinsers to ionized air, replacing the water components with ionized-air rinser components and a self-contained blower assembly. In addition to saving money on water, the company is seeing a reduction in overall wastewater fees, along with a reduction in dissolved oxygen levels transferred to its beer. The potential payback period for the upgraded equipment is approximately two years according to its projected savings, with an added benefit of longer equipment life (due to slower corrosion rates) because water has been removed from the process.6

The popularity of craft beers is undeniable; however, lower production volumes

mean that costs must be more tightly controlled to maximize profits while

maintaining authentic crafted appeal. At the 2016 Craft Brewer’s Convention,

one executive noted, “In most industries, getting to scale and developing and

innovating and then selling—that is the goal. But craft is different.” In fact, 61

percent of consumers who choose craft beers say that the smaller size and

independent ownership of a beer company influences their buying decision.4

That said, small companies are now finding ways to leverage automation and

innovation to better compete against their mass-produced counterparts.

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MARKETING

GOING FOR GOLD: Winning Over Millennials

SECOND-SCREEN VIEWINGThe statistics for potential Millennial viewership facing NBC are not promising: prime-time television viewing for people aged 18–34 has declined by 24 percent since the 2012 Summer Games in London. Conversely, growth of the top three social media platforms has exploded since 2012: Snapchat’s user base is up 1,900 percent, to approximately 2 million monthly users; Facebook is up 65 percent, to 1.65 billion monthly users; and Twitter is up 86 percent, to 310 million monthly users. In addition, the growth of “second-screen” behavior (providing live access

to participate and/or interact with behind-the-scenes video, commentary, and highlights) has helped attract Millennial viewers who increasingly follow current events using their smartphone apps and websites.

SNAPCHATNBC recently completed an unprecedented deal with Snapchat to share rights to the 2016 Summer Games, providing Snapchat access to videos of select competitions without paying any up-front rights fees. The distribution deal is the first of its kind for NBC, with both parties splitting ad revenue for the shared content. Snapchat claims that 60 percent of 13- to 34-year-olds with smartphones in the United States use its chatting and video-sharing

Will all eyes be on Rio de Janeiro this month? Quite possibly. The August debut

of the 2016 Summer Olympic Games in Rio will present a unique worldwide

engagement opportunity for advertisers. In a bid to reverse declining viewership

among the Millennial demographic, Olympic sponsors and media alike have

recognized that personalized mobile-enabled engagement strategies are critical.

Direct experiences, social media presence, and other online interactions will

also be crucial to campaign success.7 NBC—the American broadcast television

network with exclusive rights to cover Olympic competition—recently made

several groundbreaking deals with social platforms, with top sponsors devising

new mobile strategies to drive more direct viewer engagement.

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MARKETING

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app, making the app an attractive recruitment vehicle for NBC to reach the coveted Millennial audience. Accessible only to US Snapchat users, Olympics-related content and logos will live in two places within the social app: Live Story videos (e.g., compilations of shots taken by athletes and fans to provide a more intimate

experience) and promoted highlights in Snapchat’s Discover feature. Parent

company NBCUniversal stated that negotiations for similar

deals with Facebook and Twitter are in progress, with the broad social-distribution strategy reflecting the TV network’s goal of ensuring that people younger than 35 tune in to or stream the Games.8

BUZZFEEDNBC is also partnering with

social news and entertainment platform BuzzFeed to produce

special features that will appear on Facebook, Twitter, Snapchat, Instagram, and other social apps in an attempt to attract younger viewers and (hopefully) convert them into long-term fans of the Games. Twelve BuzzFeed Motion Pictures producers will be flown to Rio de Janeiro and granted the same behind-the-scenes access as NBC staff. Although BuzzFeed has already been creating Olympics-related content, NBC plans to develop platform-specific content that is unique to BuzzFeed and told in its distinctive style. Ideas on the table include quirky behind-the-scenes material, such as Brazilian supermodel Alessandra Ambrosio teaching athletes how to speak Portuguese and a Class of 2016 yearbook of the Olympians.9

VISAFinancial giant Visa kicked off its global Olympic marketing campaign during the final game of the National Basketball Association (NBA) championship

with a change in tone and personality. Previously focused on corporate branding with relatively sedate messaging, the new commercials have a more playful, youthful tone that features sponsored athletes using the Visa chip card, including a funny take on how athletes might swim, bike, or run their way to the Games in Rio and how the card helps them get there. The company’s goal? To create a more personal, relatable connection for younger consumers with the Visa card. Visa is sponsoring 46 athletes, up from 37 in the last Winter Games, and has created 17 different versions of the commercials to ensure mass appeal and global relevance.10

GENERAL ELECTRICTo create content of interest to the general public that also highlights General Electric’s (GE) contributions to the Olympic Games, the company dubbed June 13–17, 2016, as “Drone Week.” During Drone Week, the company captured behind-the-scenes images of the Olympic Games preparation, as well as aerial footage of the Itaipu Dam, which GE will be using to provide hydroelectric power to the Games. Drone video footage was also taken of the Brazilian Canoe Federation, a team which partnered with GE to place sensors in their boats to collect data for use in modifying their athletes’ training regimens. To engage as broad an audience as possible, GE used Facebook Live and YouTube to share the unique video content.11

SUSTAINABILITY

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EDIBLE CUTLERYIndia-based startup Bakeys Foods is broadening its plant-based line of spoons. Dubbed Edible Cutlery, the original spoon

(a rice-, wheat-, and sorghum-based product) is completely safe to eat, but also fully biodegradable if people choose not to eat it. Organic, vegan, and kosher, the spoons do not have any added chemicals or preservatives and enjoy a shelf life of approximately two years, yet only take a few days to degrade naturally. Broad success of the appealing “green” spoons inspired the company to continue innovating; Bakeys now has prototypes of forks, chopsticks, dessert spoons, and soup spoons. The company also has plans to create taster spoons, coffee stirrers, and toothpicks. As more consumers adopt the innovative product, Bakeys hopes the use of Edible Cutlery will contribute to helping the global water crisis, environmental sustainability, and climate change issues.13

BIOBOTTLEIceland Academy of the Arts design student Ari Jónsson recently created a red algae bottle capable of fully decomposing after use. He states that he was inspired to invent the bottle after learning that 50 percent of plastic is discarded after just one use. Jónsson experimented with multiple materials to compare and contrast strengths and weaknesses, ultimately choosing powdered agar (which is made from algae). The bottle is created by heating a proportioned agar-water composition, pouring it into a bottle-shaped mold, and then submerging the bottle in ice-cold water and rotating it until the liquid inside forms the shape of a bottle. The agar bottle is then refrigerated for several minutes until it can be removed from the mold. As long as the bottle remains filled with water, it is capable of holding its shape; however, once empty, it begins to decompose.14

The United Nations Environmental Program estimates that 110 million tons

of plastic are used annually worldwide, with much of it ending up in landfills,

where it can take up to 1,000 years to decompose. In general, relatively little

plastic is recycled due to the risk of contaminating a recycling stream as a

result of differing chemical compositions in various plastics. As concerns over

the health of our global environment increase, researchers are developing and

expanding on creative alternatives to traditional plastics.12

BREAKING DOWN Plastic Alternatives

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SOLVING FOR Oil Spills

BACKGROUNDAn innovative solution under development by the National University of Singapore’s (NUS) engineering faculty could present a significant breakthrough in the cleanup of oil spills. The idea? Recycling wastepaper into ultralight aerogels with the potential to absorb oil. Current oil-absorption solutions are considered relatively ineffective because they are polypropylene based and nonbiodegradable and have low and slow oil-absorption capabilities.

According to NUS, the conversion process is the first of its kind, one that “successfully converts paper waste into green, nontoxic, ultralight, flexible, extremely strong, and water-repellent cellulose aerogels.” Other noted benefits include its cost-effectiveness, its speed (the entire process takes three days), and its simplicity. Coated with Trimethoxy(methyl)silane (MTMS), unique features of the aerogel include its water repellency and high oil-

absorption capacity (up to 90 times its dry weight), making it four times more effective than any currently available commercial products. An additional benefit includes the aerogel’s ability to recover more than 99 percent of crude oil absorbed simply by squeezing it out.16

ECO-FRIENDLY ALTERNATIVENUS claims its process of converting wastepaper into aerogels is also more eco-friendly, using 70 percent less energy and fewer dioxins in the chlorine bleaching process, and emitting fewer pollutants into water and air.17 The emerging technology could also help address paper-related waste, expected to reach 500 million tons by 2020, by recycling it into practical second-life use. With a projected potential market size of $143.5 billion USD, NUS has filed for a patent in the United States, India, China, and Southeast Asia. Bronxculture Pte, Ltd is the first licensee granted use of the product for commercial application.18

Although the number of oil spills over the past three and a half decades has

steadily decreased, there are still an average of 1.8 large oil spills annually,

according to the International Tanker Owners Pollution Federation Limited

(ITOPF).15 With oil spills posing a significant threat to marine ecosystems,

finding effective, eco-friendly solutions has been an important but

challenging problem to solve.

RECYCLING

Source: ITOPF Database, 2013

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www.havigs.com

Credits1The National Coffee Association. (2015). NCA National Coffee Drinking Trends 2016, The National Coffee Association. Retrieved from http://www.ncausa.org 2Greiner Packaging. (2016, January 27). Greiner Packaging Forges Ahead in the Coffee Capsule Market (Press Release), Greiner Production. Retrieved from http://www.packagingeurope.com3PackagingStrategies.com (2016, April 18). Coffee Package Mimics a To-Go Cup, Packaging Strategies. Retrieved from http://www.packagingstrategies.com 4Nurin, T. (2016, May 31). Defining Craft: How One Word Is Dividing the Beer World into ‘Us’ versus ‘Them,’ Forbes. Retrieved from http://www.forbes.com 5Rice, J. (2016, May 14). Craft Brewer Quadruples 12-Pack Cartoning Speeds, Packaging World. Retrieved from http://www.packworld.com6Reynolds, P. (2016, May 24). Craft Brewing—Quick Hits, Packaging World. Retrieved from http://www.packworld.com7Wiesman, T. (2016, June 6). Olympic Sponsorship: Is It Worth It?, Analytic Partners. Retrieved from http://www.analyticspartners.com8Dave, P. and S. Battaglio. (2016, April 29). Snapchat to Feature 2016 Olympics Highlights, Los Angeles Times. Retrieved from http://www.latimes.com9Garcia, A. (2016, May 10). NBC Teams with BuzzFeed to Win Over Younger Olympic Viewers, CNN, Retrieved from http://money.cnn.com 10Baker, L. (2016, June 20). Visa Launches Olympics Campaign Undeterred by Woes in Brazil, AOL. Retrieved from http://www.aol.com11Atkins, J. (2016, June 28). General Electric Highlights Rio Olympic Preparations with ‘Drone Week,’ IT Business CA, Retrieved from http://www.itbusiness.ca

12Garfield, L. (2016, April 1). These Real-Life Willy Wonka Spoons Are Completely Edible, Tech Insider. Retrieved from http://www.techinsider.io 13Olewitz, C. (2016, March 29). To Reduce Plastic Waste, This Indian Startup Thinks We Should Start Using Edible Spoons, Digital Trends. Retrieved from http://www.digitaltrends.com 14Dezeen.com. (2016, March 20). Ari Jónsson Uses Algae to Create Biodegradable Water Bottles, Dezeen Magazine. Retrieved from http://www.dezeen.com 15ITOPF.com. (n.d.) Oil Tanker Spill Statistics 2015, International Tanker Owners Pollution Federation Limited. Retrieved from http://www.itopf.com16Messenger, B. (2016, February 9). Researchers at Singapore University Recycle Paper into Ultralite Aerogels, Waste Management World. Retrieved from https://waste-management-world.com17Messenger, B. (2016, February 9). Researchers at Singapore University Recycle Paper into Ultralite Aerogels, Waste Management World. Retrieved from https://waste-management-world.com 18National University of Singapore. (2016, February 3). Researchers Turn Paper Waste into Ultralight Super Material That Improves Oil Spill Cleaning, Heat Insulation (press release), Science Daily. Retrieved from https://www.sciencedaily.com

Mohawk Everyday Digital uncoated items are manufactured with windpower by offsetting emissions from purchased electricity with Renewable Energy Certificates (RECs) from Green-e certified windpower projects.

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