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Sustainability and Packaging
Reckitt Benckiser is a global consumer goods company that produces health, hygiene, and home products. The presentation discusses sustainability in packaging and identifies key factors to consider. It emphasizes the importance of aligning sustainability goals with customer wants, maximizing sustainable materials, and communicating sustainability efforts to motivate recycling. Case studies on Vanish powder packaging compare options like rigid tubs to flexible pouches based on factors such as materials used, recycling rates, production efficiency, transport, and more.
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Sustainability and Packaging
- 1. Sustainability & Packaging2013 Delivering innovation for the home and hygiene sector Arno Melchior, Reckitt Benckiser (Brands) Ltd Bangkok, 23rd May 2013
- 2. RECOGNISING SUSTAINABILITY ASA KEY DRIVER TO PACKAGING SUCCESS • 1823 – Benckiser started in Germany manufacturing ammonium chloride • 1840 – Reckitt’s started in England producing starch • A truly Sustainable company
- 3. 16/05/2013 16:50 4 • AConsumer Goods Global Leader In Health, Hygiene And Home (CEO is Rakesh Kapoor) − UK listed. Top 25 of FTSE 100, market cap C £25bn − 2012 net revenue of £9.567bn − Over 20 million consumer units sold a day, 7.3 billion a year • Our 19 Powerbrands are Global No 1 or 2 in all of our fast-growing categories − Represent ~70% of RB net revenue − Driven by innovations - on average, 30% of our net revenue is products developed in last 3 years • A Track Record Of Outperformance Delivering Outstanding Returns For Investors: − Since 2000 net revenues have trebled and the market cap has increased by 5 times − 13 years high quality, above the market growth • A Global Business made up of Multinational Teams − Operations in 60+ countries, sales in nearly 200 countries − 49 manufacturing facilities world-wide, C 38,000 employees Who is ReckittBenckiser ???
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- 5. RECOGNISING SUSTAINABILITY ASA KEY DRIVER TO PACKAGING SUCCESS > Identifying the real meaning of sustainability in packaging > Aligning your sustainability vision with your customers to deliver the packaging they want > Maximizing the use of sustainable materials and minimizing waste to reduce costs > Strategically selecting the right time and approach to bring your new eco-packaging to the market > Motivating customers to recycle and communicating your green message
- 6. Identifying the realmeaning of sustainability in packaging • We are on a good way if we follow WalMart’s Scorecard in order to become more sustainable −Materials with less GHG emissions −Choose the right material types −Choose a packaging supplier from the region −Improve the product/package ratio −Improve the cube utilization −Use or increase the use of recycled material −Use materials which are indeed recycled
- 7. Identifying the realmeaning of sustainability in packaging • What does RB do? −Materials with less GHG emissions => CO2 emmissions −Choose the right material types −Choose a packaging supplier from the region −Improve the product/package ratio −Improve the cube utilization −Use or increase the use of recycled material −Use materials which are indeed recycled
- 9. 1. Green HouseGas Emissions from Package Production • You need to take different product/package ratios into consideration. Don’t compare weight based alone!
- 10. Weight comparison of500ml liquid food containers PET = 25.2g + 3.2g PP / Alu = 18.6g / Glass = 340.3g + 2.2g Steel
- 11. 1. Green HouseGas Emissions from Package Production • Never compare materials based on their specific weight alone! • Always do comparisons based on the weight per container for a certain product and a certain volume! Calculation based on recycled aluminium
- 12. 3. Average distanceto transport material3. Average distance to transport material • Look for more local suppliers (“across the road”) to achieve a good score? • ISSUE: the scorecard takes only distance to transport packaging into consideration. It doesn’t matter were the finished product comes from.
- 13. 4. Product toPackage Ratio4. Product to Package Ratio • Offering more flexible packaging: 32g 13g Blocking factor cost : Automatic Lines not able to fill as quickly- quite often no real cost. Recyclability is worse than bottles (multi-layers & low weight)
- 14. 4. Product toPackage Ratio4. Product to Package Ratio • Offering more concentrated products: Austria 1000ml 36 doses 40g bottle Spain 2500ml 36 doses 85g bottle Blocking factors • Need to be followed by all competitors to avoid confusion on shelf •Consumers very likely continue to dose the same – and thus end up rejecting the product due to higher price per use • Dead fish/ dead trees and/or irritation symbols applies to some concentrates
- 15. 5. Cube Utilization5.Cube Utilization
- 16. 5. Cube Utilization5.Cube Utilization • Also in this respect the aluminium can is better than a glass bottle
- 17. 5. Cube Utilization5.Cube Utilization • Typical cube utilization rates of bottles vary between less than 40% and up to 80%
- 18. 6. Recycled content6.Recycled content • Increase of recycled content depends on availability of Post- consumer recycled material utilization • But it also depends on the product you fill in • Food is a different story than Household cleaners • Household cleaners are prone to Environmental Stress Cracking and PCR lowers the ESC resistance. So the use of PCR has to be monitored very closely
- 19. 7. Recovery7. Recovery •Use materials which are REALLY recycled in the Countries were you sell your product!
- 20. 7. Recovery7. Recovery •Levels of recycling are very different:
- 21. Aligning your sustainabilityvision with your customers to deliver the packaging they want
- 22. Vanish PowderVanish Powder Howto reduce packaging consumption?How to reduce packaging consumption? • We asked our customers and they told us they want less packaging! • So we first looked at the dosing scoop • Result: saving well above 100 tons PP/year OLD: Injection moulded = 7.0g NEW: Thermoformed = 3.6g
- 23. Maximising the useof sustainable materials and minimising waste to reduce costs
- 24. Vanish PowderVanish Powder Howto reduce packaging consumption?How to reduce packaging consumption? • But they wanted more! • So we decided to offer a ECO variant of our Vanish fabric treatment powder − Ecological: improved package/product ratio => much less packaging weight per 100g of powder − Economical: cheaper per 100g than the product in the tub • During and especially after the project we had to answer many questions were the solution was neither black nor white
- 25. Score 0:0 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Packaging weight 78g • Packaging weight 18g a1
- 26. Slide 29 a1 1kgtub = 78g 1.1kg Doypack is 18g = 77%reduction If 1kg tub is upscaled to 1.1kg theoretical +10% weight increase = 85g/18g = 74.5% reduction amelchio, 16/04/2009
- 27. Score 0:1 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Packaging weight 78g • Packaging weight 18g a2
- 28. Slide 30 a2 1kgtub = 78g 1.1kg Doypack is 18g = 77%reduction If 1kg tub is upscaled to 1.1kg theoretical +10% weight increase = 85g/18g = 74.5% reduction amelchio, 16/04/2009
- 29. Score 0:1 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Packaging weight 78g • Packaging weight 18g (not recycled) • But the container is recyclable and the SUP is not! Score 1:1
- 30. Score 1:1 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Packaging weight: − Container 52g (partly recycled) − Lid 22g (not recycled- in the UK) − Label 4g (not recycled – in the UK) − Already a total of 26g which is not recycled at all • Packaging weight 18g (not recycled) • But the container is recyclable and the SUP is not! Score 1:2
- 31. • Packaging weight: −Container 52g − Typical recycling rate for plastic bottles in the UK ~ 48.5% (Recoup 2012) − This means: 25g of this tub are recycled and 27g are not recycled Score 1:2 Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Packaging weight 18g (not recycled) • But the container is recyclable and the SUP is not?
- 32. Score 1:2 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Recycling: • 53g which are not recycled • 25g which are recycled • Recycling: • 18g which are not recycled • But the container is recyclable and the SUP is not?
- 33. Score 1:2 • Whatabout carbon emissions? • Nearly 4x higher for tub Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container − Container 52g HDPE ~ 165g − Lid 22g PP ~ 73g − Label 4g Paper ~ 7g − TOTAL ~ 244g CO2e − SUP 18g Laminate − TOTAL ~ 63g CO2e Score 1:3
- 34. Score 1:3 • Linespeed per minute if 1kg of (dusty) powder is filled: • For one tub line we would need FIVE flex-pack lines!!! Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Theoretically 120/min • Practically ~80/min • Theoretically 35/min • Practically ~16/min Score 2:3
- 35. • Delivery ofempty packaging material: • Transport volume for empty tubs is 65x the one of doypacks Score 2:3 Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • 4800 tubs each 11.2 x 11.2 x 14.5cm = 8.7m3 plus 1.9m3 for lids + labels • Total = 10.6m3 • 4800 packs on a reel 50x50x65cm = 0.1625m3 Score 2:4
- 36. Score 2:4 • Deliveryof empty packaging material: • However as the reels with the SUPs are very heavy you reach the weight limit of a lorry before you reach the volume limit (but you will never put that many reels on one lorry) Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • 4800 tubs/lids & labels= 10.6m3 • 4800 doypacks = 0.1625m3 Score 3:4
- 37. Score 4:5 • Deliveryof empty packaging material: • We have our container production in house. So transport of empty containers is no issue. • But we still need 1.9m3 for lids + labels Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • 4800 tubs/lids & labels= IHP • 4800 SUPs = 0.1625m3
- 38. Score 4:5 • Whatabout transport packaging? Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • Tub can take top load • Outercase weight ~230g • SUP can’t take top load • Outercase weight ~520g Score 5:5
- 39. Score 5:5 • Whatabout finished goods transport (palletisation)? • Transport efficiency of tub +39% Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container • 10 cases/layer • 10 layers • TOTAL: 100 cases/pallet • 12 cases/layer • 6 layers • TOTAL: 72 cases/pallet Actual size comparison tub vs SUP Score 6:5
- 40. Score 5:5 • Hencecube utilisation is much better for the tub than for the SUP Vanish PowderVanish Powder Offer a SUP along the rigid containerOffer a SUP along the rigid container Actual size comparison tub vs doypack Score 7:5
- 41. Score 7:5 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • This comparison could go on and on…..
- 42. Score 7:5 Vanish PowderVanishPowder Offer a SUP along the rigid containerOffer a SUP along the rigid container • ….but
- 44. Motivating customers torecycle and communicating your green message
- 45. Motivating customers torecycle and communicating your green message
- 46. Motivating customers torecycle and communicating your green message
- 47. Motivating customers torecycle and communicating your green message
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