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Beverage barrier PET
 

Beverage barrier PET

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Review of barrier PET Technologies for beverages

Review of barrier PET Technologies for beverages

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    Beverage barrier PET Beverage barrier PET Presentation Transcript

    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai“Strategic Review of Barrier PET :a Multiple Beverage Perspective”Mr. Jean F. SCHRURSDirectorCape DecisionChanging Markets – Future Trends
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai6. Conclusions :BusinessDevelopmentOpportunities5. Benefits and ThreatsOf Barrier PET2. Markets and Consumers :- Current/Future Demand- by Beverage Type1. Beverages :- Risks- Quality Requirements4. Brand Owner’sView3. Barrier PET :- Applications- Technologies- 3 Key QuestionsIntroductionp 1
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, MumbaiCategory Still Water SparklingBeveragesJuice/Nectar Milk BeerI. Product Degradation Risk Levels (off-flavor, color change, vitamin loss, product/taste integrity)O2 ingress Low Low High High HighUV light Low Low High High HighCO2 loss - High - - Highmicrobiological spoilage low-medium Low High High MediumII. Quality Requirements(Possible) Barrier - CO2 - O2- UV light- micro- O2- UV light- micro- O2- UV light- micro- CO2Process Requirements - ambient- aseptic or- ultra-clean- ambient - aseptic- hot-filling- pasteurization- aseptic- hot-filling-pasteurization- flashpasteurization +ambient filling- containerpasteurizationConsumption Requirements - thermo-mechanical stability- product quality (visual, taste, odor, claims, freshness)- package quality (opening, convenience, date code, appearance)1. Beverages : Risks and Quality RequirementsSummary of Product Degradation Risks and Requirementsp 2
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai2. Markets and Consumers : WaterMarket - Size 183 Bio L (F 2007)- Growth +9% (00/05 CAGR)Trends* - Quantities QualityStill to 1 L +15% Natural -3%Still over 10 L +9% Processed +4%Still 1.1 / 2 L +8%Still 2,1 / 10 L +7%Sparkling +2% (* : CAGR 00/05)- EnvironmentGeography - US, China, Indonesia, Brazil, India represent- 16% of 05/10 incremental volume (33 Bio L)Drivers - Value : increase purchasing weight and multi-packs- Convenience : bottles as dispensers- Differentiation : packaging innovation (embossing, shapes)Packaging - PET safety, lightweight, convenient2005 Water per Capita - Top 109911612312313113413514517122050 100 150 200 2502006 Water Packaging Mix1612810 25 50 75 100OthersOtherPlasticGlassPETp 3
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai2. Markets and Consumers : Sparkling BeveragesMarket - Size : 195 Bio L- Growth : +1,3%Trends - Growing needs states :- health and wellness- increased functionality- Premiumization- Unique, single-serve packaging- Hybrid distribution- MicromarketingDrivers - Development of pack sizes- Widespread of 50 cl PET adoption- Various novelty packs on special occasions- Resealability essential for ‘on the go’ generation- Colored bottles give impulsePackaging - 50cl has been the key driver of PET growth- Taking share from 33 cl cans- Emergence of new metal packaging (bottle cans)Sparkling Beverage per Capita - Top 1050 100 150 200 250Sparkling Beverages Packaging Mix111122560 25 50 75OthersGlassCansPETp 4
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, MumbaiMarket - Size : 140 Bio L – 270 Bio packs (80% milk) (2006)- Growth : +3.1% (02 - 06), +3.6% (2006 – 2010)Trends - Long life milk : +5%- Long life yoghurt drinks/flavored milk : +10%- Affluence : milk sold loose replaced by portion packaged productsGeography - 02-06 : +11% in SE Asia/India/Chinaslight decline in NAmerica/Europe- 06-10 : same growth expectedDrivers - Health and wellness- Environmental and recycling- Costs- System flexibilityPackaging - HDPE - 6.8 Bio units, 0.16 Mio tons (2006)- more for pasteurized, UHT, sterilized- less for long life products- Carton - 1.7 Mio tons board- perceived environmental benefit <> 20% PE and 5% Alu foil- Pouches/PE- 1 Mio tons PE + other material foil- competitive equipment/packaging costs > rapid growth ?- PET - little impact despite consumer advantagesFluid Milk Per Capita - SelectedCountries33365981371690 50 100 150 200ChinaArgentinaPoland2006 Liquid Dairy Packaging Mix0 25 50 75 100CartonsHDPE BottlesPouchesGlassBottlesPET BottlesOther Mio PacksMio Litres2. Markets and Consumers : Milkp 5
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai2006 Juice Packaging Mix0 20 40 60 80CansOtherPlasticsHDPEPETGlassCartonsNAEurope2. Markets and Consumers : Juices - NectarsMarket - Size : 40 Bio L- Growth : +9%Trends - Slight shift towards chilled / short life products in W EU- Ambient/long life remains strong- Tailored products for specific health needs- Orange juice outsells other juices by three- Conversion from glass to plasticGeography - Incremental growth from rapidly developing countries (EE, ME, AS)- US : 35% global market-share but declining - 2/3 juice in PET- EU : second largest regional marketvolumes similar to North America6/10 highest country per capsDrivers - Differentiating innovation tactics in new flavors and packaging formats- Consumer targeted marketing for new occasions and locations- Conveniencesingle serve multi-packs (lunchboxes)Packaging - Cardboard : most popular technology (> 50%), especially in EU- PET : juice : CAGR +8% (18% in 06)nectar : CAGR +18% (21% in 06)in NA, ambient juices shifting from glass to PET- Glass : short life and chilled juicesJuice Per Capita - Selected Countries0102029400 10 20 30 40IndiaPortugalLettlandSpainGermanyp 6
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai2006 Beer Packaging Mix0 20 40 60 80PETCansGlass2. Markets and Consumers : BeerMarket - Size : 155 Bio l- Growth : CAGR 3%Trends - Global giants : beer market consolidating three times faster as market growth rate- Mega-mergers : InBev, SABMiller/Coors, SN/Heineken+Carlsberg ?- Top 10 share : 37% (98) > 59% (04)Geography growth rates E EU : +4.2% NAm : -0.4%APAC : +3% W EU : -0.6%SAm : +1.3% AFR : -1.0%Drivers - Penetration : volume and value- Light beers : “low carbs” for health consious drinkers- Premiumization : trade-up to premium/imported beers in developed markets- Regional : flavoured beers, beer with food, organic beer, microbreweriesPackaging - Sensitivity beer requires significant barrier material- Glass still the key material- PET : greater Europe is selling more than 93% of global beer in PET60 Mio hl per year or 4-5% of global beer market2005 Beer Per Capita812445877820 25 50 75 100AFRAPACSAME EUW EUNAp 7
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai3. Barrier PET : ApplicationsApplications per Technology (2006 Mio bottles)05001000150020002500Juice Beer Ketchup GreenTeaWater EdibleOilFab CSDMultilayer Blend Coating PEN2006 Global PET Penetration byPackage Type (Bio units)0 50 100 150 200 250 300MilkBeerSports DrinksEnergy DrinksRTD Tea/CoffeeJuice & Juice DrinksCarbonatesPackaged WaterPETOtherWorld Market Barrier PET 2006 -Standard vs Barrier PETBarrier Standardp 8
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai3. Barrier PET : 4 TechnologiesMultilayerMonolayerCoatingPENp 9
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai3. Barrier PET : 3 key QuestionsWhen ?Category SparklingBeveragesJuice/Nectar Milk BeerRisk of Degradation by - CO2 loss(<0.5L)- O2 degradation- UV penetration- micro- O2 degradation- UV penetration- micro- O2 ingress- UV penetration- micro- CO2 lossHow ?Which one ?When standard PET properties alone are not good enough for product protection :Brand Owner’s most common requirements :- transparency - compatibility with post-consumer waste stream- no shining effect - stability (no delamination)- variable cost : lightest-weight strength - production efficiency- recycling - limited capital cost- CO2 shelf life function of supply chain - O2 ingress compared to glassDecision making criteria for technology selection :- Barrier Performance : - Volume- O2 protection requirements (scavenging) - Supply Chain needs- CO2 loss prevention requirements - Recycling- Location - Impact on operational efficiencies- Cost : variable and investmentp 10
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai4. Brand OwnersObjectives : - drive profitable volume- product availability, affordability, quality- create and fulfill demandStrategy : - preference > brand equity + consumer marketing- price/value > value-based product differentiationoperational efficiency- market penetration > distribution- people : ultimate enablersScientificRegulatoryAffairsFinanceQualityAssurancePurchasingOperationsEngineeringSalesMarketingCommunicat°R&D +InnovationLogisticsConsumerCustomer/RetailerRecycling RegulationConverterBrandOwnerConsumerp 11
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai5. Benefits and ThreatsBeverage SPARKLING JUICE/NECTAR MILK BEERCOMPLEXITY + ++ ++ +++Protection against : CO2 loss O2 ingressUV penetrationO2 ingressUV penetrationO2 ingressUV penetrationCO2 lossADVANTAGE ESL for smaller sizeEXPECTEDBENEFITSSTANDARD PET best cost (no barrier)BLEND better cost, easier for convertersMULTILAYER better performance and appearanceCOATING best recyclability, best performanceANTICIPATEDTHREATSSTANDARD worst performance (no barrier)BLEND recyclability (if nylon)MULTILAYER delamination ? Higher priceCOATING Investment cost, speed, flexibility, appearance, downtime, investmentp 12
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, Mumbai6. Conclusions : Business Development OpportunitiesSources of Growth in EuropePET barrier applications 200702004006008001.0001.2001.400existing organic new000tonnesCSD bottled water other drinks juice and juice drinks beerPET Raw Material Cost0,71,01,31,6Jul05 janv-06Jul06 janv-07Jul07• In Europe, beer is the largest new source of growth for barrier PET• Cost Reductions : Barrier bottles can assist by :- light-weighting and reducing wall thickness- extending shelf life and reducing supply chain costs- accelerating glass replacement programs andsaving money in distribution- applying simpler barrier constructions• Barrier PET : a key ingredient developing new PET markets :- premium beers, soft-drinks, juices, milk and waters- promoting small sizes- adapting to wine and spirits• Potential : the barrier PET market will double if :1% of beer is converted to barrier pet (2.8 Bio bottles)1,5% of CSD is converted (3 Bio bottles)• Should be developed together with other key process developments• Environment : a critical factor to take into account for future successp 13
    • J.F.Schrurs – © Cape Decision - Drink Technology + PET India 07 – 29/30 Nov 2007, MumbaiThank you !For further questions, contact us at :John F. SchrursCape Decisionjohn@capedecision.com+32 498 53 04 58www.capedecision.comp 14