< PreviousIn response to the ongoing COVID-19 pandemic and in following the rec- ommendations of the Mexico Ministry of Health, PMMI, The Association for Packaging and Processing Technologies, has canceled EXPO PACK México , which was to be held June 2-5, 2020 at Expo Santa Fe México, Mexico City. “The health and safety of our exhibitors and attendees is of the utmost importance to us, and we have concluded it is the right thing to do to make this tough decision on cancelation,” says Jim Pittas, PMMI President and CEO. “PMMI remains com- pletely committed to the Latin American market and will be back in Mexico in 2021, with even more exciting education programs, networking opportunities, and a show floor filled with new materials, ma- chinery, and technology.” Show management will be reaching out to exhibitors soon with fur- ther details regarding their space payments for the show. Even though the in-person event is not taking place, all of the online components of EXPO PACK México will remain available to exhibitors and attendees, via expopackmexico.com.mx. Additional networking features to encourage attendees and exhibitors to connect virtu- ally are coming soon. Planning has begun on a series of free webinars on market trends (in Spanish), hosted in conjunction with PMMI Media Group’s Mundo PMMI magazine. The first webinar will address the impact of COVID-19 on the Latin American packaging industry. “These are difficult times for everyone, and PMMI’s role here is to offer resources that will help the industry get through this and come out thriving,” says Laura Thompson, PMMI VP, Trade Shows. “We urge everyone to take advantage of PMMI’s COVID-19 Resources page as well as take advantage of the virtual show options at expopackmexico.com.mx.” Visit the resources page at pmmi.org/coronavirus. —Sean Riley The U.S. leads the world in pet food sales, says a new study from PMMI Business Intelligence, as pet owners around the world seek fresher, healthier, and ethically produced ingredients—the same as they expect for themselves. According to the report, Trends and Drivers Impacting the Pet Food Industry, the ongoing trend to “humanize” pets can require changes in processing. It needs to be done more slowly to preserve textural integrity, at lower temperatures to preserve nutritional value, using more exotic ingredients, and with a continued shift of packaging towards pouches to prevent the deterioration of nutrients through oxidation. This change will result in an increase demand for fillers, form/fill/seal, and other pouch compatible primary packaging equipment. The pet food market is broken up into four main food groups: • Dry Food (Kibble) • Wet Food (Pâté, Minced and Shredded, Gravies and Chunks, Morsels, and Cubed) • Treats and Snacks (Biscuits, Soft Chews, Jerky, Chews, and Bones) • Nutraceuticals (Vitamins and Minerals, Dietary, Enzymes, and Probiotics) A premium category exists for each of the food groups, offering grain-free, non-GMO, Organic, and Essential Nutrients, often in flex- ible pouches to deliver freshness. Certainly, heavy-weight bulk bags and canned foods (for both dogs and cats) are still popular formats. On the nutraceutical front, there is a lot of excitement for CBD products. According to the report, CBD still has not found its way into mainstream pet food suppliers’ menu offerings due to hesitation over regulations that would penalize CPGs. A hurdle or an opportunity, depending on your perspective, is that CBD products would require dedicated production and packaging lines. Consumers are interested in CBD for pet health, particularly for relief of joint pain. The internet offers many sites featuring pet health CBD supplements. Much like the human trend to take command of our own health (and avoid expensive healthcare bills and taking pills), a prime motivation for pet owners exploring CBD is to lower vet bills and avoid pharmaceutical prescriptions as much as possible. North America is expected to hold its lock on 39% of the global pet food market through 2024. Africa, with only 5% of the current market, will see compound annual growth rate in sales of 14%, and could overtake Europe, which will only grow at 4%. COVID-19 Update: Pet food manufacturers and retailers are on the list of essential industries expected to remain at work during the crisis. A recent Packaging World survey (see page 32) revealed 62% of our readers are reporting for work at the plant or office, while 38% are working from home. Pet food producers using locally sourced ingredients may have an advantage over manufacturers who rely on ingredients from overseas, as the virus stretches supply chain integrity. This reporter’s local family vet reports a brisk business with existing customers, as well as many new families acquiring their first pets. Forced to stay at home, families see a perfect opportunity for training and bonding with a new pet during the crisis, providing some of the much-needed joy that pets can bring. —Jim Chrzan EXPO PACK México Canceled Amid COVID-19 Concerns Pet Food Market Shows Solid Growth through 2025 8 PW MAY2020 NEWS News_0520.indd 8News_0520.indd 84/17/20 11:05 AM4/17/20 11:05 AMDecoType Compact Digital decoration technology for primary packaging Digital direct print provides you with completely new opportunities for impactful package decoration. Unlike conventional labels, direct print allows you to systematically apply reliefs and structures to create striking combinations of optics and feel. With this all-around solution, you start by simply pressing a button, select the artwork you want, print on demand, and presto—your “wow” effect is ready. n Ideal for medium and small batch sizes n For up to 5,000 glass or PET container per hour n Low migration ink sets n Print up to 10 bottles at a time n Blocked system includes pre- and post-treatment n CMYK + W standard ink offering n Perfect for late stage package variation Brook Hollo Krones, Inc. 414-207-1551 brook.hollo@kronesusa.com News_0520.indd 9News_0520.indd 94/17/20 11:06 AM4/17/20 11:06 AM 10 PW MAY2020 NEWS Meal kits have gained a lot of popu- larity in recent years, with several e- commerce brands now increasing their presence offline as well—essentially ending meal kits’ subscription-only ser- vice. Consumer analytics firm Piplsay conducted a nationwide study of 31,635 Americans to find out how the meal kit phenomenon has grown in the U.S., if at all. It turns out the numbers don’t bear out the buzz, and until recently, it ap- peared meal kit popularity had peaked. However, forced social distancing may rekindle Americans’ early fascination with the phenomenon. Among its find- ings from before the pandemic crisis, Piplsay found that just 35% of Ameri- cans have tried a meal kit in the past year, with 11% of those trying them just once. Eighteen percent of those who have tried meal kits in the last year have subscribed to a delivery service. Of the 65% of Americans who have not tried them, 29% said they believe meal kits are too expensive, 23% said they are not interested, and 13% said they’ve never heard of meal kits. Among those who have tried them, 32% bought the meal kits on- line, 28% bought them in-store,18% subscribed to a meal kit service, 14% bought them online and in-store, and 8% bought a restaurant meal kit. The survey also showed that approximately 65% of respondents have cancelled their subscriptions over the last year. Why? Forty-seven percent said they were too expensive, and 17% said they got bored with it. When asked if they would be interested in sign- ing up for a meal kit subscription service in the coming year, 50% said “no,” 27% said “yes,” and 23% answered “not sure.” But as stay-home orders rolled out in response to COVID-19, publications such as USA Today reported big bumps in meal kit subscriptions. A separate study conducted by Alix Partners LLC, one dealing more generally with online gro- cery shopping instead of meal kits in par- ticular, found that 56% of young people (ages 18-34), 43% of middle-aged people (ages 35-54), and even 25% of ages 55 and older have increased online grocery shopping since the pandemic. It’s uncer- tain if these more recent factors will con- stitute a permanent turnaround of trends unearthed in the earlier study. Among other key Piplsay findings: • 50% of millennials have tried meal kit in the past one year as com- pared to 41% of Gen Z • 47% of millennials and 38% of Gen Z cancelled their meal kit sub- scription as they found it expensive • 23% of women will not go for a meal kit subscription because of its high cost as compared to 16% of men • Men prefer Amazon meal kits the most, while women prefer Hello Fresh delivery services • Hello Fresh is the most popular meal kit delivery service with most Americans (23%) —Anne Marie Mohan In February of this year, Dallas-based Abbott Label added the Domino N610i digital UV inkjet press to their label printing arsenal, expanding their capabilities and taking their business to the next level. Selling only for resale, the family-run trade-only label manufacturing company has no direct sales force. But it does have four strategically located manufacturing facilities in Texas, Georgia, California, and Illinois. The Dallas headquarters facility is where the new Domino N610i was installed, where it joined an HP Indigo digital press. “Our customers are normally suppliers of packaging, so labels are just a segment of what they offer,” says President John Abbott. “With that in mind, we prioritize service at the top of our require- ments, because that is what our customers need. Our entire model is based on getting information and products to our customer base faster and more smoothly than our competition.” The firm has had an HP Indigo WS6600 in production since 2014. “But we wanted to jump into inkjet because we believe it better serves the markets we sell into,” says Abbott. “We are presented with many consecutive bar code opportunities. In some instances we are unable to capture those with the HP. Our costing models with the Domino have led us to believe we can be extremely competitive on consecutive bar code work. We will be going after numbering jobs and high-color long runs without needing plates. Since we’ve been selling into the digital market for some time we have a good deal of work we can immediately transfer to the Domino, maintain current pricing, and achieve a higher margin. With our distributor network, we feel we can load the Domino up with work in a short period of time, giving us a quick ROI.” —Pat Reynolds Can Social Distancing Buoy Slowing Meal Kit Adoption? New Digital Press for Abbott Label News_0520.indd 10News_0520.indd 104/17/20 11:06 AM4/17/20 11:06 AM11 beumer.com SOME THINK THAT LOAD SAFETY REQUIRES LOTS OF PLASTIC FILM. WE THINK DIFFERENT. interpack 2020 Visit us at beumer.com/interpack BEUMER stretch hood A_ConsumerGoods_1_PackagingWorld_117_475x282_575+MHvirtuell_EN.indd 109.04.20 08:30 Retail-Ready Packaging Stats The global demand for retail-ready packaging (RRP) exceeded 32 million tons in 2018, growing an average of 4% annually since 2014, with the market worth an estimated $57.46 billion in 2018. RRP consumption is expected to increase on average by 5.4% annually from 2019 to 2024, reaching a total of nearly 44 million tons, valued at $77 billion at constant 2018 prices. That’s according to a recent report from Smithers, The Future of Retail-Ready Packaging to 2024, which indicates that the global demand for RRP is 10 million tons. Demand for RRP is coming from emerging and transitional economies, with Asia-Pacific accounting for 4.9 million tons—nearly half the total global demand. Western markets, which are relatively mature, will show below-average growth through 2024, with North America at a 3.5% CAGR. The report notes that the use of RRP in the fresh produce, dairy, and bakery markets accounted for more than half the total volume consumed in 2018. These three sectors are ex- pected to retain their dominant market share over the medium term. Overall, there is expected to be a slight shift in market share in favor of non-food items through 2024. Innovation is at the forefront of development in the RRP industry, with many end-use sectors enjoying the benefits of new designs in RRP. Frozen foods and household care products will show the highest growth among the various end-use sectors for RRP, at a CAGR of 8.1% and 6.9%, respectively. The lowest growth lies in pet food (2.51%) and canned food (2.58%). Die-cut containers accounted for 55% of the volume demand for RRP in 2018 with plastic making up nearly a quarter of the total. By 2024, these two formats will maintain their relative positions, but the major shift will be from shrink-wrapped trays to modified cases, with a 2% market share changing places between these two formats. —Anne Marie Mohan Trolli candy uses the Delkor Cabrio Case® News_0520.indd 11News_0520.indd 114/17/20 11:07 AM4/17/20 11:07 AMCall 1-877-236-0266 or see videos of our machines in action and more at universal1.com • World’s best tabletop labeling system • Rounds from .5 - 6”diameters • Label up to 8,000 products per day • Same day shipping Yo u c a n’t b e a l l th i n g s to a l l p e o p l e. tt h at’s w h YY w e’r e a l l th i n g s l a b e l i n g. 12 PW MAY2020 NEWS LG Electronics Taps Customizable Kit for Unboxing, Brand Experience Higher-end brands across many different markets are seek- ing to transform the unboxing of their products into an expe- rience that makes the recipient feel special and understood. That kind of experience was exactly what LG Electronics aimed to create with its special loyalty kit for the sophisti- cated consumers who purchase the super-premium LG SIG- NATURE , which includes home appliances and OLED TVs. “LG SIGNATURE caters to the most discerning consumers with unique products delivering a state-of-the-art living ex- perience that feels pure, sophisticated, and luxurious,” says John I. Taylor, senior vice president at LG Electronics USA, which sells the global LG SIGNATURE brand in the U.S. “For these special customers, the LG SIGNATURE experience ex- tends to their loyalty kit.” To make sure the packaging and unboxing experience matched the sophisticated brand persona, LG turned to R.R. Donnelley & Sons Co. (RRD), a global provider of multichannel solutions for marketing and business communications—specifically RRD’s new brand experience kits. Designed for maximum impact, RRD’s kits enable brand managers and marketers to build a unique and memorable presentation around a prod- uct, service, or relationship, the company says. Examples include wel- come, loyalty, and promotional kits, as well as subscription services for consumers, employees, and more. News_0520.indd 12News_0520.indd 124/17/20 11:08 AM4/17/20 11:08 AM13 “We partnered with RRD on an end-to-end solution that aligns with this luxury brand–from producing the premium packaging, to develop- ing and printing the personalized internal components, to assembling and fulfilling the kits for each individual recipient,” Taylor says. Working hand-in-hand with brand owners, RRD crafts each kit from the ground up from design concepting, material and substrate explora- tion, to sourcing special accoutrements. The kits can combine personal- ized print with pre-printed components into a wide range of configura- tions. The company already packages 30 million kits made up of more than 200 million different components each year. Packaging options include high-end and custom-shaped rigid boxes, corrugated as well as folding cartons. “The average person is bombarded with product promotions every day,” says Brad Ross, President, RRD Packaging Solutions. “To remain competitive, it is more important than ever for companies to create meaningful points of interaction between their brand and consumers— or even employees.” RRD says it simplifies the supply chain and overall process by serv- ing as a single point of project execution. In addition to designing and producing the packaging, the company will source all secondary com- ponents and gift merchandise for inclusion in the kits, and provide kit- ting and fulfillment services. To ensure cost efficiency, RRD manages all aspects of design, materials, production, and distribution, using a global production, distribution, and supplier network. Additionally, RRD’s packaging capabilities in the U.S., China, Mexico, and Europe deepen resources and enhance flexibility for meeting special needs or tight turnarounds. —Matt Reynolds www.BELL-MARK.com 973-882-0202 IP67 Rated, Hygienically Designed Control Box and Printer Remote SupportRemote Support HYGIENIC SAFETY WEIGHING AND METAL DETECTION The perfect combination of a checkweigher and metal detector in an innovative, hygienic wash down-design. This model meets all statutory requirements including protection rating IP69K. / Visit us at PACK EXPO International, Booth S-1753. HYGIENIC SAFETY WEIGHING AND METAL DETECTION The perfect combination of a checkweigher and metal detector in an innovative, hygienic wash down-design. This model meets all statutory requirements including protection rating IP69K. / Visit us at PACK EXPO International, Booth S-1753. Checkweigher HC-M-WD-MDi wipotec-ocs.com Call 1-877-236-0266 or see videos of our machines in action and more at universal1.com • World’s best tabletop labeling system • Rounds from .5 - 6”diameters • Label up to 8,000 products per day • Same day shipping Yo u c a n’t b e a l l th i n g s to a l l p e o p l e. tt h at’s w h YY w e’r e a l l th i n g s l a b e l i n g. News_0520.indd 13News_0520.indd 134/17/20 11:14 AM4/17/20 11:14 AM 14 PW MAY2020 QUOTABLES BY THE NUMBERS 15% to 30% The predicted increase in U.S. packaged food companies’ retail sales from March to May 2020—in particular, sales for Campbell Soup, Conagra Brands, and J.M. Smucker— according to a report from Credit Suisse 40 million The number of U.S. households that used online grocery services like home delivery and pickup in March 2020, which is more than double the amount of monthly users since August 2019, according to Brick Meets Click 200% to 300% The increase in sales of Bolthouse Farms C-Boost and Green Goddess beverages with immune-boosting properties with the onset of the COVID-19 crisis 45,000 L The amount of hand sanitizer Procter & Gamble will be producing per week once the new lines it has installed at five of its plants are fully operational “Some people are going to embrace this [online grocery shopping], and others are going to use it opportunistically for a temporary time period, and then some may be converted and say, ‘I didn’t think I was going to shop that way forever, but now that I did it, it’s so easy.’ And by the time they get to the second or third order, now they have past purchases [saved], and searches and lists already made.” –David Bishop, co-founder and Partner at Brick Meets Click, in an article from Grocery Dive, “Nearly one third of U.S. households shopped for groceries online in the past month, report says” “This is not only the right thing to do for their communities, but it also allows some of these craft distilleries to keep their stills going, maintain their employees and stay afloat during this crisis. Further, we are coordinating closely with the federal COVID-19 task force as part of the nation’s collective efforts to fight COVID-19.” –Chris Swonger, President and CEO of the Distilled Spirits Council of the U.S (DSCUS), quoted in an article from BeverageDaily.com, “US distillers work together to supply hand sanitizer on mass: ‘We are in this together’” “Getting policymakers to understand food and agriculture’s role as part of the nation’s critical infrastructure was last week’s big issue. This week’s issue has been getting inputs to those plants. It’s not just about food and ag. It’s that aluminum can that is essential for a lot of different companies. It’s the label manufacturers being closed. They are critical to this industry, because labels go on almost every product produced. We are helping policymakers understand the totality of the entire value chain. Let’s acknowledge that this is the biggest shift of an industry’s supply chain any of us has ever experienced. This is Thanksgiving demand over multiple weeks. The supply chain was not prepared and had never previously had to execute against such demand.” –Geoff Freeman, President and CEO of the Consumer Brands Association (CBA), in a March 26 article from Food Business News, “Consumer Brands Association seeking supply chain consistency” “Packaging companies should take this opportunity [COVID-19] to invest more in packaging research, design, innovation, and production practices adapted to e-commerce to optimize its assets for opportunities in growth segments within packaging industry.” –Arvind Kaila, Practice Head of Consumer Beverages at GlobalData, in a release from the company, “APAC packaging industry set to ride on e-commerce wave, says GlobalData” Quotables_BTN_0520.indd 14Quotables_BTN_0520.indd 144/17/20 10:36 AM4/17/20 10:36 AMLABEL it with EASE PERFORMANCE, PACKAGED 5051 N. Sylvania Ave. Suite 408, Fort Worth, TX 76137 PHONE (817) 624-6805 TOLL FREE (888) 438-3242 EMAIL IDT@ProMachBuilt.com WEB IDTehcnology.com Labelers that are versatile, durable and designed for ease of set up and operation. Quick adjustments for optimum performance and easy to trouble shoot. M2 LABEL APPLICATOR Quotables_BTN_0520.indd 15Quotables_BTN_0520.indd 154/17/20 10:39 AM4/17/20 10:39 AMEnhanced Platform for Difficult Applications Eriez’ Xtreme® Metal Detector with “Enhanced Platform” uses advanced technology to detect metals in the most challenging applications. Xtreme EP has shown significantly improved sensitivities in a range of dairy, cheese, meat and even rubber products. Eriez.com/Xtreme | 814.835.6000 Metal Detectors • Vibratory Feeders • Magnetic Separators 16 PW MAY2020 FIRST PERSON Packaging World: What progress have you seen with Loop since it launched last year in New York and in Paris? Tom Szaky: As you know, in May [2019], we launched in Paris with Carrefour and in the Northeast region of the U.S. with Kroger and Walgreens (see pwgo.to/5406). Those tests have gone incredibly well. The punchline is that all the retailers we’re working with are now working on going in-store. Carrefour will be the first retailer to put Loop in-store, which means really the retailer sells it [products in reusable packaging] in their physical stores, and there will be collection bins for the packaging at the store. Carrefour is going into stores starting in July, then 10 more stores in September, and then a much larger number at the end of the year. Kroger will be going in all Portland stores around September/ October, and then more stores will follow. Walgreens too is making plans to go in-store in the Northeast. That has been a huge thing. Brands have been joining consistently and continue to join aggressively. We’re seeing really good rates of brands joining—on average, a brand every two days. We are also on track to be launching in Canada with Loblaw, in the U.K. with Tesco, with AEON in Japan, and with Woolworths in Australia, all in the next 12 months. I’d say it’s just off to the races, and we’re thrilled so far. It’s continuing, and it’s accelerating, even within the context of COVID. Actually, March will be the best-performing month to date so far. I’m surprised to hear you say that March will be your biggest month so far, given that companies like Starbucks are banning reusable cups and some retail stores are banning reusable bags because of a fear of contamination with the virus. How do you think Loop has continued to thrive? It’s a very interesting question. I’ll give you the answer in two ways, if I may. The first is that you mentioned Starbucks, and yes, Starbucks has famously stopped accepting reusable coffee cups, and I think frankly, they made absolutely the right decision. And they did that I think because of three main things that are very different in an informal reuse system where a consumer is giving a cup to a barista versus a professional reuse system. How Safe is Reusable Packaging During COVID-19? Last year, Loop launched its revolutionary shopping platform anchored by reusable packaging (see pwgo.to/5405). Here, Tom Szaky, founder and CEO of TerraCycle and the driving force behind Loop, provides an update on the platform and how it’s faring in light of COVID-19. FirstPerson_0520.indd 16FirstPerson_0520.indd 164/17/20 10:55 AM4/17/20 10:55 AM17 In the Starbucks example, there are three things that are very different. One is there’s no dwell time. I could be an infected person giving my cup to a barista, and I’m giving it to them right away. There’s not a single second of dwell time. And there are many reports that show the virus can last maybe up to three days on the surface... . The second is that the barista does not have proper health and safety support, training equipment, or anything like that. They’re just a normal person in normal clothes. And then third, they’re not even cleaning the cup at all. So there’s no cleaning, no health and safety protocol, and no dwell time. In the professional reuse system, whether that’s Loop or whether that’s a Canadian beer [bottle] or Germany with beverage [bottles], which are all examples of very big national reuse systems, all three of those things are at play. There’s strong dwell time. We typically will take about a month before the package is clean. Two, there are major health and safety protocols because that was always a big concern, and we’re really pleased that our health and safety is so strong that nothing had to be upgraded once COVID came out. We were already thinking about really important health and safety measures. So all the team members who do cleaning are in full-body personal protective equipment. And that’s been the case even before COVID. The packaging is also cleaned in a proper cleanroom versus not even being cleaned, or maybe how a bar would clean your beer cup, with just a spray of water, or even like a restaurant doing it in the back of their kitchen. There’s an actual cleanroom environment. And then the third is that it’s being cleaned at very high standards with really sophisticated chemistry and technology. There’s a huge difference within reuse of how one reuses and what systems and measures are behind the scenes. And what’s been interesting is that with COVID, it’s still not even in the top-10 questions we get on customer service in any of the Loop deployment. Where I do get a lot of questions on reuse is in fact only from the members of the media. I say this with a smile and a joke, but I totally understand why you’re asking the question. But it’s interesting that it hasn’t come from the people participating. Do you think the growth of Loop right now is due to the fact that consumers are able to get their products without having to go to a store? And, do you think trend will continue, even after COVID is resolved? I definitely think that the growth is probably in some part linked to the general growth e-comm is having right now due to COVID—for sure. I don’t want to take entire credit that it’s just the platform, and I think the macroeconomic trends and how we are consuming are absolutely playing into it. The positive tailwind and just the general shift in consumption to online is definitely supporting the deployments we have of Loop today, which are mostly online. But do note that all the deployments coming up of Loop are in-store deployments. So we’re not necessarily an online play, we just happened to start online, and I think that’s an important distinction. But yes, today we’re seeing some nice tailwind just because of the way the models are set up today. —Anne Marie Mohan Enhanced Platform for Difficult Applications Eriez’ Xtreme® Metal Detector with “Enhanced Platform” uses advanced technology to detect metals in the most challenging applications. Xtreme EP has shown significantly improved sensitivities in a range of dairy, cheese, meat and even rubber products. Eriez.com/Xtreme | 814.835.6000 Metal Detectors • Vibratory Feeders • Magnetic Separators See the full interview with Szaky at pwgo.to/5549. FirstPerson_0520.indd 17FirstPerson_0520.indd 174/17/20 10:59 AM4/17/20 10:59 AMNext >