Category Archives: A&A News

McDonald’s to cut plastic packaging

McDonald’s UK is to remove single-use plastics from its salads range and plastic lids from all McFlurry ice creams, in a drive to reduce plastic packaging.

McDonald's

All main meal and side salads will be served in 100% renewable and recyclable cardboard containers instead of single-use plastic.

Changing out the existing plastic bowl, shaker salad cups and lids will result in 102 metric tons of plastic being removed annually.

McDonald's

The fast-food giant is also ditching plastic lids from all McFlurry ice creams from September which it said will reduce plastic waste by 383 metric tonnes annually.

The new salad and meal containers are made from carton board which contains 50% recycled content and 50% new, which itself comes from certified sustainable sources.

The coating on the containers, designed to keep them rigid, is also 100% renewable.

In total, the new packaging across the McFlurry and salads range will reduce plastic waste by 485 metric tonnes annually, said McDonald’s.

Beth Hart, Supply Chain Director, McDonald’s UK & Ireland said: “Removing plastic lids from the McFlurry, and introducing new cardboard packaging for salads, will save nearly 500 metric tonnes of plastic a year. It’s the latest step in our sustainability journey.

“We are committed to listening to our customers and finding solutions with our suppliers that work for them, this is the latest example of that – but by no means the end. We continue to look for solutions for our cutlery and lids, for example, but this is great progress. For us, sustainability is about more than just packaging. We have to look at the whole journey – by 2030 we’re committed to reducing greenhouse gas emissions by 36%.”

Waitrose launches home compostable ready meal packaging

Waitrose has launched what it says is the world’s first home compostable ready meal packaging as it aims to move nine million products out of black plastic.

Waitrose launches home compostable ready meal packaging

Working with Huhtamaki, the new containers, which are fibre based and similar in texture to cardboard, are now certified home compostable for the first time.

Its suppliers Huhtamaki and Saladworks produced the packaging which can be heated in the oven and microwave and is cool to touch after cooking. The fiber-based packaging is Forest Stewardship Council certified, creates a 50% saving in Co2 emissions, and can also be recycled.

The packaging innovation will initially replace many of the retailer’s Italian ready meal trays, saving 158 tonnes of black plastic.

Karen Graley, manager, packaging & reprographics, Waitrose & Partners, said: “Pioneering the first home compostable ready meal packaging that ensures customers can continue to cook their food quickly, safely, and now more sustainably, is a major breakthrough in packaging innovation. This step – combined with moving millions of ready meals out of black plastic – is a significant milestone in how we package food and eliminate hard to recycle material for good.”

The new Italian ready meal packaging will be available in Waitrose & Partners shops at the end of this month and will include Chilli Prawn Spaghetti, Broccoli Orecchiette, and Tomato and Mozzarella Pasta Bake.

The first digital post print corrugated press in Europe

Smurfit Kappa is installing the new HP PageWide C500 digital press – HP’s most technologically advanced digital press for a corrugated application.

The first digital post print corrugated press in Europe

The press will be installed in Smurfit Kappa’s Interwell plant in Austria and is designed for greater customisation and flexibility of corrugated printing, the new industrial-scale press will be the first commercial HP single pass press in Europe.

The press will be installed in April and will support Smurfit Kappa’s extensive customer base in the FMCG sector.

With a fully integrated stack-to-stack workflow, the press combines digital simplicity with off-set replaceable print quality on both coated and uncoated paper.

The technology will provide brand owners with customised packaging solutions that can drive sales across both online and traditional sales channels.

Smurfit Kappa will sue the press in conjunction with its ShelfSmart and eSmart services.

The graphic flexibility and quality of the new HP PageWide C500 Press will further enhance the company’s service to drive brand recognition and provide fit-for-purpose packaging.

Furthermore, the HP water-based inks facilitate printing on both primary and secondary food packaging without an additional barrier which can comply with even the most stringent global food safety regulations.

Smurfit Kappa rejects a bid from International Paper

Smurfit Kappa has received an unsolicited acquisition proposal from International Paper (IP), which it has rejected.Smurfit Kappa rejects a bid from International Paper

IP reportedly proposed to acquire Smurfit Kappa, and Smurfit Kappa shareholders would receive a combination of cash and a minority holding in the combined business.

Europe’s largest cardboard box maker Smurfit Kappa said the proposal “fails entirely to reflect the Group’s strong growth prospects and attractive industry outlook” – which could leave the door open to an improved offer being considered in the future.

Smurfit Kappa’s enterprise value is about €9.8bn, according to FactSet data.

The board of Smurfit Kappa said after considering the proposal it was in the best interests of the Group’s shareholders to pursue its future as an independent company.

Smurfit Kappa recently announced EBITDA for 2017 of €1.2bn and a full year ROCE of 15%.

Plcs are obliged to ensure there is not a false market in their shares. It also increases the pressure on the bidder to comply with relevant regulatory timelines. This may have contributed to SKs decision to make the approach public.

Such a deal would create a super-group paper company and would mean a review of the deal by numerous competition authorities given the scale of the transaction and the spread of the two companies’ footprints. However, it may be deemed that these are more complementary than overlapping or there may be approval conditional on a number of divestitures. The Ball-Rexam mega deal approval also stipulated certain divestitures.

Liam O’Mahony, chairman of Smurfit Kappa said: “The Board of Smurfit Kappa has unanimously rejected this unsolicited and highly opportunistic Proposal.

“The Board believes that it is in the best interests of all stakeholders for the Group to pursue its future as an independent company, headquartered in Ireland, operating as the European and Pan-American leader in paper-based packaging. We strongly advise shareholders to take no action.”

International Paper did not comment.

Nicholas Mockett, head of packaging M&A at Moorgate Capital, said: “It is a strong rebuttal of the approach which may ensure IP walks away at this stage. A plc has a duty to shareholders to give due consideration to a legitimate approach. If IP increased its offer Smurfit Kappa would therefore reassess. The approach is not surprising given Smurfit Kappa’s strong position in Europe and Latin America and IPs strengths in North America. IP has recently increased its core focus, with the recent Graphic Packaging transaction.”

Unease over governments plastic packaging plan

Critics have hit back at the government’s 25-year plan with concerns over its litter strategy and a lack of praise for packaging’s role in combating food waste.

Unease over governments plastic packaging plan

Prime Minister Theresa May set out the government’s vision on the environment and wanted to end the “scourge” of plastic packaging in waterways and oceans. She outlined plans for a tax or charge on single-use packaging and urged retailers to introduce plastic-free aisles.

However, in a statement, the British Plastic Federation (BPF) said that it was “very disturbed” at the tone of the Prime Minister’s language and it did not recognise the 170,000 jobs that the plastics industry brings to the UK.

The BPF added: “To stop plastics entering the sea from the West, the plastics industry would like to see a tougher stance on littering. It is highly doubtful that simply providing alternative materials will actually reduce littering in the UK, as this is an issue of personal behavior. It should be noted that the types of products that enter the marine environment from the UK tend to be those that have been irresponsibly littered — not packaging materials for fresh produce that are typically consumed at home and then disposed of responsibly.

“Plastics should not be in the sea and it is right that the UK, alongside other developed nations, should set an example of best practice. As has been pointed out, the vast quantity of plastics in the seas arrive there from the less developed economies of Asia, which have rudimentary waste management systems. Plastics get into the seas by a number of routes and each route needs to be dealt with separately.”

Martin Kersh, executive director of the Foodservice Packaging Association, was also disappointed that the national litter strategy wasn’t mentioned. He added that food waste should form part of the government’s strategy.

“Food waste was not referred to by the Prime Minister along with the role that packaging has played in extending shelf life,” said Kersh. “Whatever we do [in regards to plastic packaging] we must not risk increasing food waste.”

He added that May’s speech did not place enough emphasis on the recycling of all materials and said that the packaging industry would “100%” provide evidence for the proposed tax on single-use plastic packaging.

“What we would like to see is PRN reform on the terms of reference,” said Kersh. “We would be disappointed if this was not the case.”

Lorax Compliance chief operating officer Michelle Carvell said that “real opportunities” had been missed to create a joined-up policy to tackle “the UK’s mounting waste crisis”.

“As it stands, the government’s plan is little more than a kneejerk reaction which works as a placeholder prior to the looming policy changes ahead in our post-Brexit landscape,” said Carvell. “It says very little and promises to deliver even less, with no legal force included in the strategy.”

Gillian Garside-Wight, packaging technology director at Sun Branding Solutions, said that a “holistic approach is required to address a very complex issue”.

She added: “In our experience when our clients have switched to more responsible packaging solutions this has required investment from product development through to supply chain alterations which may or may not be cost neutral.  The ongoing debate remains – who will pick up this cost?

“Consumers are the catalyst driving change, now along with the government pledge (not just us), this will result in big changes to consumer behavior and the retail environment.  Brands and retailers need to move faster to respond to their customers’ demands.  This is a good start, however, there’s lots of other challenges to be resolved. For example, back of store packaging that consumers never see. We must not forget the primary function of packaging is to contain, protect, preserve and promote and we must continue to ensure it does not damage the environment we live in.”

The government’s strategy was welcomed by David Palmer-Jones, chief executive of Suez Recycling and Recovery. He said that the plan “rightly places our environment at the heart of government strategy”.

He added: “Having invested heavily in new facilities to support the move away from landfill over the last decade, we are pleased that this plan recognises the important role energy recovery facilities have played in this transition and the ambition to make these facilities more efficient by identifying ways to increase the use of the heat they produce.

“Overall, the plan represents an important first step towards policies that will support the growth of our industry and enable it to play a pivotal role in the development of a more resource efficient, sustainable economy.  Systemic change is needed to tackle the complex issues facing us and ensure coordination with national infrastructure plans and the Industrial Strategy.  We urge Government to work with our industry on the detail of its new Resources and Waste Strategy to develop a world-leading approach for the UK.”

The Campaign to Protect Rural England. Samantha Harding, litter programme director said: “It’s impressive the government has chosen to respond so emphatically to the plastic plague that is already putting our countryside, cities, and oceans at risk of irreversible harm.

“The charge on plastic bags has shown that we easily adapt to financial incentives, so the prospect of further charges or taxes that could eliminate products like plastic straws and stirrers is really positive news. And promoting innovation amongst producers will be critical to ensuring we eliminate unnecessary single-use items, as well as making sure that they are taking financial responsibility for the impact these products have.”