A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 1 2007

SHAPE BIG
CHAINS
BUILD
BRANDS

Clean sweep
BLOGS CAPTURE
CONSUMERS’
IMAGINATION

OLYMPIC GOLD FOR

CHINA IN HYGIENE 2008

STRONG SAILING BABY DIAPERS

FOR WIND POWER GO HIGH FASHION
COPPER POTS MAKE HOW TO KEEP
STRONGER TREES LOBSTER FRESH

Sky-high patent numbers * Sustainable transport with CTI * Build it out of wood
 Content Nº 1 2007

At eight o’clock in the evening

on the eighth day of the eighth
month of the year 2008, the
opening ceremony for the Beijing
Olympic Games will begin.
COVER page 6-13. 6
THE OLYMPIC GAMES ARE OF
ENORMOUS POLITICAL
IMPORTANCE TOCHINA.
EXPERTS HAVE BEEN CALLING IT CHINA’S
COMING-OUT
PARTY.
▲
04 SHAPE UP
A record number of patent applications.
Incontinence protection growing in the US. And
more news from around the world.
06 SHAPE COVER
Beijing is getting ready for the Olympic Games in
2008. Air pollution will be reduced by relocating
more than 100 factories.
14 TRENDS
Seafood and wind power are more popular than
ever before. Read the latest trends, including new
ways for finding out what consumers really want.
19 PROFILE
Andrew Cookson predicts trends in the retail food
business. According to Cookson, people are now
more willing to buy lower-quality products to

14 have enough money left over to to buy cellphones.

24 TECHNOLOGY
Trees need a well-developed root system in order
to grow well. Find out how copper can help.
26 SCA INSIDE
Tork won the Wembley contract, Libero is sellling
well and Packaging operations in North America
have been sold – all that and more news from SCA.
30 CAMERA
What does Scandinavia’s tallest wooden resident-
ial building look like? See page 30.
34 SHAPING A VIEW
19 Andrew Winston helps leading companies think
environmentally to drive growth.

30 SCA Shape An SCA Group magazine Address

SCA, Communications and Investor Relations,
Box 7827, SE-103 97 Stockholm, Sweden Telephone
+46 8 7885100, Telefax +46 8 6788130 Publisher
Bodil Eriksson Editor-in-chief Anna Selberg
Editorial management Anna Selberg, SCA and
Göran Lind, Appelberg Design Tone Knibestöl,
Appelberg Print Sörmlands Grafiska Quebecor AB,
Katrineholm Cover Frans Hällqvist
SCA Shape is published in Swedish and English. The con-
tents are printed on GraphoCote 80 g from SCA Forest
Products. Reproduction only by permission of SCA
Corporate Communications. The opinions expressed in

26 this publication are those of the authors or persons inter-

viewed and do not necessarily reflect the views of the
editors or SCA. You can subscribe to SCA Shape or read
it at www.sca.com.

[ 1 *2007 ] SHAPE SCA *3

SHAPE UP

RECORD NUMBER OF PATENT APPLICATIONS

■ The number of patent applica-
tions in the world increased 6.4
percent in 2006 to 145,300, the
most ever, according to statistics
from the World Intellectual
Property Organization. The US
still dominates, with almost
50,000 applications, a rise of
roughly 6 percent over 2005.
27 percent, propelling that
country past Britain and France to
fourth place in the world. China
had the fastest growth by far, at
57 percent, and has nearly qua-
drupled its number of patent
applications since 2002.
In terms of industries, telecom-
munications had the largest share

ILLUSTRATION: GETTY IMAGES

Rapid growth in research and of applications (10.5 percent),
innovation in East Asia led to a followed closely by pharmaceuti-
sharp increase there. Patent cals and information technology
applications in South Korea rose (10.4 percent each).

Number of patent
applications in 2006 Change over 2005
USA 49,555 6.1%
Japan 26,906 8.3%
Germany 16,929 5.8%
South Korea 5,935 26.6%
The world wants more
France 5,902 2.8%
Britain
The Netherlands
5,045
4,393
-0.8%
-2.7%
ENERGY

PHOTO: GETTY IMAGES

China 3,910 56.8%
Switzerland 3,403 3.8%
Sweden 3,123 8.7%

DESPITE THE THREAT to the climate

Shopping is fun in Asia and the local retailers
have high expectations for the future.
Boom in Asian
retail trade
■ The future of retail trade in Asia
looks highly promising. Three out of
four companies expect higher sales in
the next 12 months. A similar number
say they plan to expand or build new
stores on other sites or in other
cities, according to the real estate
services company Jones Lang
LaSalle, which interviewed retailers
in China, Singapore, Thailand,
Malaysia, Indonesia and India.
Buyers in the home furnishings and
decorating industry are among those
with the highest expectations for the
future, followed by sports stores,
department stores, jewelry stores
and grocery stores. The most opti-
mistic buyers are those in India, as a
result of strong economic growth,
greater purchasing power and
increasing tourism.
and the ongoing debate over how we
should reduce energy consumption,
world demand for energy continues to
rise, according to a report from McKin-
sey Global Institute. The report predicts
average growth of 2.2 percent over the
next 15 years, higher than during the
last 15 years. Demand is increasing even
though energy use is becoming ever
more efficient. Efficiency is rising by
1 percent a year on average.
Largely pushing the demand is
growth in developing countries and
rising private consumption there.
McKinsey believes the higher demand
can be met with more efficient energy
use. Today there are major shortcom-
ings in areas such as information in the
consumer chain and price structure,
resulting in inefficient energy consump-
tion. McKinsey thinks the potential for
further efficiencies is as great as 15 to
25 percent through to 2020.

4*SCA SHAPE [ 1 *2007 ]

 INCONTINENCE
PROTECTION GROWING
IN THE US SPAIN’S GROWTH
■ The market for urology and incontinence
devices in North America will grow by nearly 50 IS TOPS AMONG
percent over the next five years, according to a
report from the Millennium Research Group,
which conducts market analysis in the health-
BIG EU COUNTRIES
care and pharmaceutical sector. ■ Spain had the fastest economic growth among the big
Today the market is worth USD 1.8 billion, and EU countries in 2006, with a GNP that rose 3.8 percent.
by 2011 it will increase to USD 2.6 billion, A strong construction market, immigration from South
equivalent to annual growth of 7.6 percent. One America and Eastern Europe, rising tourism and more
factor behind this growth is the rapid develop- winter residents from northern Europe are among the
ment of new products, according to Millennium. reasons for the strong Spanish growth.
France had the weakest growth in the EU, with 2
percent. Topping the list among the small EU countries
were Slovakia with 7.5 percent and the Czech Republic
with 6.2 percent.
BETTER TO SHOP OFTEN
THAN FOR A LOT
People who shop weekly pay several hundred
euros more annually on food than people who
shop a little every day, Swedish research shows.
The reason for this is that people buy too many
perishable goods, like fruits and vegetables,
when they buy on a large scale, according to a
survey from Umeå University.

PHOTO: GETTY IMAGES

■ In May, SCA will launch a limited
edition in the Nordic countries of
its first designer diaper under the
name Spring Collection – a trendy
line of diapers with cute, hip design
patterns with glamour and a retro
feel that make the diaper more of a
complete undergarment.
“Children’s clothes are one of the
most enjoyable things for many
parents,” says Fredrik Krook, cat-
Spring Collection


of trendy diapers
egory marketing manager at SCA
Personal Care. “We give parents
with young children a chance to
express their interest in fashion and
design in their choice of diapers.
Our Spring Collection is a unique
edition with fun new prints on
something as everyday as diapers.”
Many people enjoy fashion, de-
sign and glamour, and they still have
this interest when they become
parents, as reflected in the large
range of accessories and clothes for
children available today. Parents
of small children change more
than 2,000 diapers in a single year.
Libero Up&Go wants to make this
everyday activity into something
fun. Spring Collection is sold at the
same price as regular Up&Go dia-
pers, and the edition is available for
a limited time of up to eight weeks.

[ 1 *2007 ] SHAPE SCA *5

SHAPE COVER

CHINA GOES FOR THE

GOLD IN HYGIENE
Public health and hygiene campaigns are playing a central role in the
run-up to the 2008 Beijing Olympic Games.
BY JAN HÖKERBERG

6*SCA SHAPE [ 1 *2007 ]


PHOTO: SCANPIX
EIGHT IS A LUCKY NUMBER in China, symbolizing pros-
perity and development. So at the eighth evening hour of the
eighth day of the eighth month of the year 2008, the opening
ceremony for the Beijing Olympic Games will begin, spreading
the motto “One World, One Dream” to the world. It will be
only the third time the Olympic Summer Games have been
held outside the western hemisphere, after Tokyo in 1964 and
Seoul in 1988.
Time will tell how lucky China has been to host such a huge
event. Some USD40 billion will be spent on these 29th Summer
Olympics. Will it bring more wealth to the world’s most popu-
lous nation? Will it improve living conditions for Beijing resi-
dents? Will it lead to fewer traffic jams and better air quality?
There are numerous projects that the local organizing
committee has initiated in its preparations for the games: in-
frastructure projects such as subway-line extensions and new
highways; construction and renovation of 37 venues in and
outside Beijing; refurbishing tens of thousands of buildings;
clearing slums; creating parks; organizing essential security
issues, and so on.
So far, the organizers seem to have done a great job, at least
according to Jacques Rogge, president of the International
Olympic Committee. At an inspection tour in October 2006,
he noted that the venues for the 2008 Beijing Olympic Games
were “the best I have ever seen.”
Rogge visited the National Stadium, a new modernist ven-
ue woven in concrete and steel to resemble a bird’s nest, and
the National Aquatics Center, a giant “water cube” of blue
bubbles. He said the venues are beautiful and he was deeply
impressed.
He is also known to be very happy with the progress of
the work on the venues, since Beijing has been way ahead of
schedule with its preparations, in sharp contrast to the 2004
Athens Games and other recent Olympics.
Construction of venues has been moving at such a rapid
pace that in 2005 the International Olympic Committee even
ordered Beijing to slow down to avoid high maintenance costs.
THE OLYMPIC GAMES ARE of enormous political impor-
tance to China. Experts have been calling it China’s “coming-
out party.” The games are designed to show off the country’s
economic achievements and demonstrate its growing pride
and confidence. China sees the Olympics as an opportunity to
strengthen its ties with the West, and to show the international
community that the country has the ability to hold such events.
“It is a huge challenge for Beijing. Big improvements have to
be made at the airport and with the city traffic. However, when
China decides to do something they normally make it happen,”
says HungChee Loh, president of SCA Packaging Asia. Loh,
who is Singaporean, should know since he has lived and worked
in China for the last 15 years.
Beijing has labeled the 2008 Games the “Green Olympics.”
To live up to that slogan, authorities have spent much time and
money to plan for cleaner air, to maintain good hygiene to prevent
epidemic outbreaks and change the way people behave in public.
Beijing’s well-known problems with air pollution could
be an embarrassment for the hosts, and could also affect the
▲
results of the athletes. It is therefore the ambition to bring
Beijing’s air pollution into line with global standards.
The city has relocated, or plans to relocate, more than 100 che-
mical, steel and pharmaceutical factories outside the city and will
replace 300,000 taxis and buses with less-polluting vehicles. It is
also trying to replace coal furnaces with natural-gas ones.
Part of the ambition to fi nish all construction well before
the Olympics is not only to show the world that China can keep
deadlines, but also to ensure a healthy environment for the
games, giving dust from the building projects a chance to settle.
[[21**2006
2007 ] SHAPE SCA *7
 SHAPE COVER

The Olympic Games are

of enormous political im-
portance to China. Experts
have been calling it China’s
coming-out party.
image” and “Spit happens” have already been published in
Western media. Chinese authorities defi nitely do not want
this type of information about the country to be spread during
the games.
Millions of brochures have been sent out to persuade the Bei-
jing citizenry that spitting is unhygienic. Paper sanitary bags
are being distributed on trains and buses for people to spit into,
PHOTO: GETTY IMAGES

and anyone found spitting on the sidewalk will have to either

37 new venues are built in Beijing before the Olympics 2008. Above,
the National Stadium resembling a bird’s nest, and the National
Aquatics Center, called a “water cube.”
clean up the mess or pay a fine of 50 yuan (USD6.50).
When the games end on August 24, 2008, we will know how
lucky China has been. The world will be watching closely – not
only admiring all the expected medalists from China, along
with the spectacular ceremonies and venues, but also whether
China has managed to live up to its “green” intentions.
Meanwhile, welcome to the party! ▲

Beijing is also making preparations to tackle possible public DOUBLE-DIGIT GROWTH

health incidents during the games, particularly in regard to epi-
demic outbreaks. China’s economy grew by 10.7 percent in 2006, its fastest
“Public health safety is a crucial precondition and guarantee growth rate since 1995. China is moving closer to over-
of a successful international sports event such as the Olympics,” taking Germany as the world’s third-largest economy.
SOURCE: NATIONAL BUREAU OF STATISTICS
says Wang Yu, director of the Chinese Center for Disease Con- 12
trol and Prevention (CDC), recently told Xinhua news agency.
China has established a nationwide electronic network for 10.7
reporting epidemics, operated by more than 200,000 staff 10.0 10.1 9.9
from the CDC. 9
9.1
8.8
The organizing committee of the games has already select- 8.0
8.3
7.8
ed the farms that will provide food for athletes, officials and
7.1
visitors. Strict tests will be carried out to ensure the highest- 6
quality food available.
Public health and hygiene campaigns are also being intro-
duced in the run-up to the Olympics. In 2006, Chinese author-
ities launched a campaign to change the way people behave, 3
introducing an informal code of conduct for citizens.
Every visitor to the Middle Kingdom knows that public
spitting is a serious problem, together with a patent disregard
0
for the etiquette of waiting in line.
Articles with punchy headlines such as “China’s spitting

8*SCA SHAPE [ 1 *2007 ]

 SEVEN OLYMPIC CITIES
Most of the events during the
Olympic Games will take place in
Beijing. Six other cities will also be
hosts during the games: Hong Kong
(equestrian), Qingdao (sailing),
Shanghai, Shenyang, Tianjin and
Qinhuangdao (all football).

ELEVEN NEW VENUES

Eleven completely new venues will
PHOTO: SCANPIX

be built for the Olympic Games.

After the games, some of them will
be used as facilities for future s
ports events, while others will be
sold to investors.
★ Beijing National Stadium
(athletics, football)
★ Beijing National Aquatics Center
(swimming, diving, water polo)
★ National Indoor Stadium
CHINESE EAT OUT
(gymnastics, handball) Better standards of living have boosted the numbers
★ Beijing Shooting Range Hall of people who dine out regularly, gradually making
(shooting)
this activity a trendy habit in China’s big cities.
★ Wukesong Indoor Stadium
(basketball)
★ Laoshan Velodrome (cycling)
WHEN A NETIZEN recently posted a there are frequently no seats available at
★ Shunyi Olympic Rowing-Canoeing message on his residential quarter’s BBS dinner time. That’s really crazy.”
Park (rowing, canoe/kayak)
(Bulletin Board System) asking for a dis- Yet such a phenomenon is not rare. It
★ China Agricultural University count card from a certain restaurant in is not uncommon to see diners queuing at
Gymnasium (wrestling)
Shanghai, he soon received several replies. the doors of a restaurant for a free table.
★ Peking University Gymnasium
(table tennis)
“Almost all the replies said that the With improvements in people’s living
▲

★ Beijing Science and Technology
University Gymnasium (judo,
taekwondo)
★ Beijing University of Technology
Gymnasium (badminton and
gymnastics)
restaurant does not issue discount
cards because it never worries about
business,” said Eric Xiao, a 33-year-old
clerk. “I often log on to the BBS to take
a look at the diverse information there,”
Eric says. “The restaurant mentioned is
near my current home and is so hot that
standards, local residents are spending
more on dining, and the catering indus-
try is becoming an important engine of
total consumption growth, which has
been recording annual double-digit
growth rates for several years.
Food consumption in restaurants and

[ 1 *2007 ] SHAPE SCA *9

SHAPE COVER

eateries in Shanghai is reportedly three taurants. Of course, I also write down

times that of anywhere else in the coun-
try. In November 2006, the turnover
of the city’s catering industry reached
RMB408 million (USD52 million), a
rise of 28 percent compared with the
same period the previous year.
Nowadays, many people, especially
the young, are logging onto www.dian-
ping.com, a platform where gourmands
can exchange dining experiences. The
Web site also collects information about
the hottest restaurants in town.
“The Web site is really convenient. I
log on every day and update my page,”
says Lin Yuanyuan, a 26-year-old wom-
an who eats out more than three times
a week.
“Every day, I stay on the site for one
or two hours looking at other people’s
recommendations or criticisms of res-
my own dining experiences, something
that has become a hobby.”
LIN RECALLS THAT her dining-out
habit started in 2005 when she met her
boyfriend. “Now we eat out almost eve-
ry Friday and Saturday, and I also collect
information about different restaurants
from magazines and TV,” she says.
When the catering industry sees swift
development, diners also have the op-
portunity to try different styles of food.
Lin is fond of Japanese and Cantonese
food, and she also favors spicy regional
cuisines such as Sichuan and Hunan, as
well as the local Shanghai food.
According to Lin, her monthly expen-
diture on dining with her friends is about
RMB1,500 (USD193), which is about
one-third of her income. RITA YAO People in Shanghai love to eat out.

AND
S?
THE GUARDIANS
q
H
AN
CLE
q OF HYGIENE
China’s tissue market is the second biggest in the world,
and the growth rates are astonishing compared to
Western markets, around 10 percent.

s
®

CA’s successful Away-From- tional competitors here with a significant

Home (AFH) tissue brand,
Tork, is now being launched
in China. “Tork is a global
brand and is strong on all continents
except for Asia,” says Tibor Kovacs,
sales and marketing director AFH at
SCA Hygiene Asia in Shanghai. “A bro-
ad global leading position for Tork can-
not be achieved if China is missing.”
With the rapid development of China’s
PHOTO: GAO ERQIANG
market share. We compete with local
companies and they use different dispen-
sing systems, paper qualities, sizes and
ways of folding, and so on,” Kovacs says.
A BIG CHALLENGE IS also to change
people’s hygienic habits, to make them
understand that hand hygiene is more
important than they think.
“With a small investment in a quality

economy, people have got more dispo-
sable income and travel much more.
This creates a vast demand for hygienic
solutions in, for example, restaurants
and hotels.
Tibor Kovacs, SCA Hygiene Asia in
Shanghai.
“So far, there are no other interna-
hand-hygiene system, employers can
prevent diseases from spreading among
the staff and guests. This awareness is
lower in China than, for example, in Eu-
rope. We see ourselves as the guardians
of hygiene,” Kovacs says.

10*SCA SHAPE [ 1 *2007 ]

 SCA Hygiene Asia is in the process of
identifying which distributors to work
with, which is a key success factor, ac-
cording to Kovacs: “We have a good un-
derstanding of the market, but it is our
partners who know the local culture
and mentality.”
As a start, SCA is establishing inven-
PHOTO: GETTY IMAGES
tory and distribution facilities for sales
in the Chinese market, commencing
with the expansive Shanghai region.
THE PRODUCT RANGE includes toi-
let tissue, hand-wipe products, tissue
napkins, wipers for cleaning in offices
and industrial premises, and liquid so-
aps – all integrated into Tork’s hygienic
dispensing systems.
SCA is getting off to a flying start as a
result of China’s focus on improved hy-
giene as part of preparations in the ser-
vice sector ahead of the 2008 Summer
Olympics in Beijing and the 2010 World
Expo in Shanghai. ▲

PHOTO: SCANPIX

Among the five Olympic symbols are the four most popular animals in China: the fish, the panda,
the antelope and the swallow. The fifth symbol is the Olympic fire.

CHINA GOES GLOBAL TV manufacturer by volume. This was

followed by TCL’s acquisition of the
mobile phone business of Alcatel, also a
In 2020, 50 of the world’s 500 largest companies
French company.
will be Chinese, if the government gets what it wants Both Lenovo and TCL were domes-
– and it normally does. tic market leaders when they made their
international acquisitions. Home appli-
ance manufacturer Haier, on the other
ONLY SOME 25 YEARS AGO, 11 local denly became the world’s third-largest PC hand, also a market leader in China, has
computer scientists in Beijing had a vi- manufacturer, after Dell and Hewlett- made its global journey so far mainly
sion of bringing technology to the mas- Packard, and a true global brand. Lenovo’s through organic growth.
ses. They founded a computing company brand will further strengthen during the In 1984, the Haier Group arose from
called Legend and started out working 2008 Beijing Olympic Games, where Le- the ruins of a run-down state-owned
from a one-story bungalow in the capi- novo is an official top sponsor. factory in Qingdao on China’s east
▲

tal. Today, their dream has come true,
probably to a greater extent than they
ever dreamed.
When the company, now known as
Lenovo, acquired IBM’s struggling perso-
nal computer division in 2005, a business
that was three times Lenovo’s size, it sud-
In 2004, TCL Corporation, a Chi-
nese manufacturer of television sets,
mobile phones and other electronic
products, acquired the TV business
of France’s Thomson, which included
the RCA brand name. The deal turned
TCL overnight into the world’s largest
coast. At that time, it produced just one
model of refrigerator. Today, Haier is
producing 96 different model categories
that are sold in more than 100 countries
around the world.
The company has 50,000 employees
worldwide and a global turnover of more

[ 1 *2007 ] SHAPE SCA *11

SHAPE COVER
than USD13 billion. Haier is also an of-
ficial sponsor of the Olympics in Beijing.
Telecommunications giant Huawei
has also expanded abroad through or-
ganic growth, having won strategically
important contracts from established
operators such as Vodafone and BT.
MEANWHILE, CHINA’S automotive
industry is on its way to conquering the
world. Shanghai Automotive Industry
Corporation (SAIC), which has joint
ventures with Volkswagen and General
Motors, has set a goal to be among the
six largest automakers in 2020. SAIC
recently launched its first car brand,
called the Roewe 750, built on a design
it bought from Rover when the British-
based manufacturer went bankrupt
in 2005.
There are similarities between China
today and the Japan of the 1970s and
The Chinese Roewe
will conquer the
world with a Rovers
bankrupt design.
12*SCA SHAPE [ 1 *2007 ]
South Korea of the late 1980s. But
while it took Japan’s and South Korea’s
exporting companies 15 to 30 years
to become established players on the
world market, the pace of globalization
is allowing China to expand beyond its
borders at a historically unprecedented
rate. This is also why many Chinese
companies see the acquisition of foreign
“slumbering” brands as their primary
means to grow internationally.
CHINESE COMPANIES have the full
support of the government in this stra-
tegy to conquer the world with their
own brands. According to government
plans, 10 percent of the companies on
the Fortune Global 500 list will be
Chinese by 2020. In order to achieve
that goal, the government has developed
a “go global” initiative, setting aside
USD15 billion for the acquisition of
leading companies and brands overseas.
This ambition has been welcomed
by local business leaders, who fear that
relying solely on the dominance of the
domestic market may prove too fragile a
base for their companies’ futures.
Even if Chinese companies work
fast and are goal-oriented and eager
to learn, there could be many obsta-
cles on the road to becoming global
brands. For example, they lack expe-
rience when it comes to thinking in
terms of strategy, branding and mar-
keting.
Still, China’s global “wannabes” are
in a better position than Japan’s and
South Korea’s companies were when
PHOTO: GAO ERQIANG
they entered the export markets, mostly
because these countries had not opened
up and welcomed foreign investments
in their own countries on the scale that
China has done. ▲
 The president of
SCA Packaging Asia Hung-
Chee Loh predicts fast
growth in 2007.
We want to be HUGE CHALLENGE FOR SCA PACKAGING
regarded as a ■ With 14 factories in China and
6 in Southeast Asia, SCA Packaging
one-stop shop Asia is one of the most fastest-gro-
wing units in the whole SCA Group.
It employs some 4,800 people, and
where our last year’s turnover was close to
USD200 million.
customers can “This year we have set a target of
growing at least 30 percent,” says
get any type of HungChee Loh, president of SCA
Packaging Asia.
packaging they Loh has a huge challenge ahead
of him: “The company’s objective is
want. to multiply the turnover in 2010. We
will aim to grow both organically and
through acquisitions.”
PHOTO: SCANPIX
SCA’s packaging business in Asia
started in 1999 when SCA bought
a minority of the shares of Central
Package Group. SCA has gradually in-
creased its ownership, and since 2006
it owns 100 percent of the company.
The growth of SCA Packaging Asia’s
business has been built on this base.
For example, SCA has built a comple-
tely new factory in Suzhou, where five
former entities have been brought
together onto one site. SCA is also ex-
panding its current factory in Nanjing.
An Asia design center is also in the
process of being set up in Shanghai,
next to the headquarters in Minhang.
The center will be used to support
internal and external customers, with
the aim of creating innovative designs
for clients.
“We want to be regarded as a one-
stop shop where our customers can
get any type of packaging they want,
corrugated, protective or other types,”
Loh says. “None of our competitors can
offer all that under one roof now.”
[ 1 *2007 ] SHAPE SCA *13
TREND


eat lobster
...and live longer
Seafood consumption is on the rise worldwide follow-
ing new trends in healthy eating. As supplies grow
scarce in the Mediterranean, lobster shipments from
Scandinavia to southern Europe reach new heights.
HAVSKRÄFTA, jomfruhummer, Dub-
lin Bay prawn, Kaiserhummer, scampi,
Nephrops norvegicus – the Norway lob-
ster is known by many names and en-
joyed by fans of gourmet cooking
around the world.
Each year, Læsø Fiskeindustri on the
island of Læsø between Denmark and
Sweden ships 1,500 metric tons of Nor-
way lobster to Italy from Denmark, and
an additional 1,000 metric tons from its
Peterhead unit in northeastern Scotland.
The Italians have a long tradition
of eating the tail of Norway lobster,
called scampi, which is caught locally
along the coast of Italy. The local sup-
ply, however, is far from sufficient to
meet demand, which is good news to
the fi shing industries around Kattegat
between Denmark and Sweden. The
Norway lobster thrives in the waters
around Læsø, characterized by a great
variation of ocean depths and geologi-
cal structures with stone reefs, chalk
pillars and coral reefs.
Managing Director Søren Larsen at
Læsø Fiskeindustri says there are other
reasons why Italy is such a big market
for a type of food that is seen as a luxury
14*SCA SHAPE [ 1 *2007 ]
item in more northern latitudes.
“Their meals usually consist of up to
five different dishes. After having con-
sumed antipasti, salad and pasta, Ital-
ians don’t require very big portions of
the main course of fish or meat, which
makes a serving of two or three grilled
scampi quite sufficient.”
COMPETITION FROM low-cost coun-
tries in Asia and Latin America is in-
creasing, but Larsen says the Norway
lobster caught in Scandinavian waters is
generally perceived as superior in taste,
since it matures more slowly in the cold
waters of the North Atlantic.
Another threat to the Scandinavian
industry, Larsen says, comes from
tightened EU regulations aimed at pro-
tecting local cod populations, which
have an adverse effect on Norway lob-
ster fi shing since they only allow ves-
sels to work for limited periods of time
in certain sections of the Atlantic. But
the future still looks bright for the local
fi shing industry.
“We can certainly sell everything we
catch,” Larsen says.
JONAS REHNBERG
SEAFOOD FOR
THE HEART
■ A recent study from Gothen-
burg University in Sweden pre-
dicts that demand for seafood will
grow substantially over the next
decades, and the International
Food Policy Research Institute
(IFPRI) estimated in 2003 that
the global appetite for fish had
more than doubled in 30 years.
“This enormous growth signals
changes in who is consuming fish
and where,” the IFPRI said. “Rapid
population growth in the develop-
ing world, along with increases
in the average amount of fish
consumed per person in those
countries, led to soaring increases
in global fish consumption.”
In the developed countries,
demand for fish is growing for a
variety of reasons, such as the
popularity of Thai and other exotic
cuisines and the fact that it is per-
ceived as part of a healthy lifestyle.
Seafood contains fatty acids like
omega-3, which have a positive ef-
fect on the level of so-called good
cholesterol. The US Food and Drug
Administration has said consump-
tion of omega-3 reduces the risk
of coronary heart disease, while
the American Heart Association
recommends that “healthy people
should eat omega-3 fatty acids
from fish to protect their hearts.”
In the end, most people prob-
ably like seafood simply because
it tastes good and adds class to
PHOTO: ISTOCKPHOTO
any meal.The Swedish Fish Whole-
salers’ Association confirms that
consumer demand for filleted
fish and shellfish is rising faster
than for seafood in general.
PACKAGING HELPS
PRESERVE QUALITY
■ Temperature-controlled goods
like fresh and frozen food place
tough requirements on the kind of
packaging used. It has to be water-
proof and able to maintain the right
temperature. SCA Packaging pro-
duces packaging that is tailor-made
for the transportation and preser-
vation of perishable goods. Solid
board and polyethylene are ideal
materials for wet and cold environ-
ments and are well suited for con-
taining greasy products. The boxes
are made from three to five layers
of different kinds of paper, fitted
together with water-resistant glue.
In the special packaging solu-
tion developed by SCA Packing
for Læsø Fiskeindustri, the freshly
caught lobster is submerged in a
box that is half filled with water
before being frozen. This technique
creates a glazing that protects the
product from being dehydrated
and preserves the quality bet-
ter than alternative solutions.
The lobsters are then shipped
via truck to Italy and other mar-
kets, where they are sold to
restaurants and wholesalers.
The North Atlantic shrimp
industry is another big outlet
for SCA Packaging. A single
vessel may use up to 800,000
units of packaging every year.

AN INSIDER’S GUIDE
TO NORWAY LOBSTER
Søren Larsen, managing director of
Læsø Fiskeindustri in Denmark, enjoys
his Norway lobster in one of the follo-
wing three ways:
★ Cut a ridge along the back, add garlic
butter and bake it in the oven.
★ Boil it.
★ Don’t boil it but eat it fresh,
with salt, pepper and a bit of
lemon juice and olive oil.

[ 1 *2007 ] SHAPE SCA *15

 TREND

Climate issues, the lack of power

production and the role played by the EU
are some of the reasons for increased
interest in wind power in Europe.

IN 2006, WIND POWER capacity in
the EU increased by 7,588 megawatts,
worth around EUR 9 billion, according
to the European Wind Energy Author-
ity, or EWEA. This was 23 percent more
than was added in 2005, and cumulative
capacity increased by 19 percent.
European wind energy is now expe-
riencing a “second wave,” according to
EWEA CEO Christian Kjaer. Wind en-
ergy in the EU has increased sixfold in
just four years.
“The importance given to climate is-
sues, the lack of power production and
the role played by the EU are some of the
reasons for the greatly increased inter-
est in wind power in Europe,” says Mat-
thias Rapp, head of the Swedish wind
power association VIP.
PHOTO: GETTY IMAGES
GREAT WINDS
FOR EUROPEAN
WIND POWER
In 2006, the EU’s wind power capacity rose
by 19 percent. Still, wind accounts for just over
3 percent of total power output.
However, fossil fuels – oil, natural gas
and coal – still account for 80 percent of
the EU’s power consumption. Although
wind power is responsible for most of the
renewable energy currently produced in
the EU, it represents just over 3 percent of
total power production. The goal of the EU
Commission is for wind power to produce
20 percent of the EU’s energy by 2020.
EU countries differ greatly in their use
of wind power. Leading the field, Den-
mark has the largest output of wind pow-
er per capita in the world. About one-fifth
of its electricity comes from wind.
Germany has also made great prog-
ress. Last year it installed a total of 2,233
megawatts of wind power, 23 percent
more than was added in 2005. Germa-
ny now accounts for more than 20,000
a fixed price for electricity produced dur-
ing the first 15 years. But there have been
other strong reasons to introduce renew-
able energy sources in these countries.
Coal-based power stations are the alter-
native, and the price of electricity is high.
In Spain, the next largest market in
the EU, 1,587 megawatts were installed
last year. Major increases in wind power
have also been seen in France and Portu-
gal in recent years.
In a country like Sweden, often well
advanced when it comes to using new
technologies, wind power is still a mar-
ginal source. Total capacity at the end
of 2006 was 572 megawatts, a quarter
of the capacity installed in Germany
during 2006 alone. Wind power pro-
vides just 0.7 percent of the total power

Scientific developments are also im-
portant. Technology is continually
improving, making wind power more
efficient. Wind now produces 10 times
more power than a decade ago.
megawatts of the EU’s total capacity of
48,000 megawatts. Common to both
Denmark and Germany are their excel-
lent financial support systems, which in
Germany guarantee wind power owners
consumed in Sweden.
“In Sweden, wind power is still at an
embryonic stage compared with other
countries in Europe,” Rapp says.
MALIN HALLARE

16*SCA SHAPE [ 1 *2007 ]

▲
SCA INVESTS IN WIND POWER
■ Over the next five years, VindIn
AB, a subsidiary to BasEl that was
formed by several high-volume
users in Sweden, will expand its
wind power output by 1 terawatt
hour, equivalent to Sweden’s
current wind power production.
By investing in several dif-
ferent projects, the owners of
the companies that make up
BasEl and address the inter-
ests of these companies, want
Long live
to increase the availability of
THE CONSUMERS
Households everywhere are breaking new ground.
New technologies, changes in gender patterns, other
social changes — these are issues creating new
challenges for marketers and product developers.
How are they going to understand today’s consumer?
WE NEED A MORE finely tuned ap-
proach to build up our knowledge about
consumers – in short, more quality and
less quantity, says Lena Danielsson,
managing director at the Swedish of-
fice of the international market research
agency Synovate.
“Today, qualitative research is the
only way to really understand consum-
ers,” she says.
New research methods that have
gained ground in recent years include
such things as home visits and accom-
panied shopping, or actually being with
the customer while purchases are made.
One obvious advantage of these eth-
nographic methods is that they reveal
unconscious habits that are not other-
wise discernible, such as when studying
target groups.
In recent years, modern technology
has opened up a host of new avenues. The
Internet has made it possible to organize
online focus groups. This means you
can reach people spread over large geo-
electrical power in Sweden. This
will create a better balance be-
tween supply and demand, and
thereby reduce power costs.
“Considering that the own-
ers themselves use 32 terawatt
hours per year, 1 terawatt hour
is not very much, but it is still
a valuable contribution,” says
Björn Lyngfelt, communication
manager at SCA Forest Products.
“This is an opportunity for us to
do more than just talk politics.”
graphical areas to discuss topics among
themselves, similar to a chat line.
“But they won’t replace traditional
focus groups, as they won’t give you in-
depth information,” Danielsson says.
Online focus groups are already on
their way out, she says, and are being
replaced by blog-like forums where con-
sumers can take part in discussions on
given topics.
“Here you can actually dialog with
the customers, and this is very impor-
tant,” she says.
Another method, now available
thanks to easily accessible technology,
is to give customers digital movie cam-
eras and ask them to document their
daily lives and habits.
“It’s a valuable method because it
gives them an opportunity for reflection
and afterthought,” Danielsson says.
These new methods have not been
developed just because it has been tech-
nically possible. The most important un-
derlying factors have been changes in con-
At present, VindIn is investigat-
ing about 10 different locations
for future wind turbine parks.
“We have received a very
positive response, and as this
is the first initiative within the
BasEl venture to produce our own
power, it has made us feel like real
pioneers,” says Anders Lyberg,
managing director at VindIn.
VindIn, formed in 2006, is
owned by AGA, Boliden, SCA
and Stora Enso, among others.
sumer patterns, especially the increased
choice and availability of products.
“It’s more difficult to reach custom-
ers today, not least because there are so
few product advantages to draw their
attention to,” Danielsson says. “Most
products on the market are very much
the same. Instead, it’s a question of dif-
ferentiation on an emotional level.”
THORD ERIKSSON
NEW METHODS
■ SCA Tissue Europe has recently
adopted new research methods to
create a better understanding of
consumers. Web-based blog forums
(see article) focus on simple issues
such as: What are your views on toilet
paper? Any problems?
“We can carry out a very detailed
survey with say, over 200 participants,
for a fraction of the cost of a focus
group with only eight participants,”
says Lesley Cordial, brand develop-
ment director SCA Consumer Tissue
Europe. The Internet also offers the
possibility of anonymity, openness and
discretion, which makes it easier to
discuss delicate subjects.
However, the new approach that the
product developers have been most
pleased with recently has been the
ethnographic surveys of households.
“They have told us that no other
method has prompted so many new
product ideas,” says Wolfgang Lenzen,
marketing research manager, SCA
Consumer Tissue Europe.
A new ethnographic survey planned
for this year will focus on personal
hygiene. It will be carried out in three
or four countries, with around 20
participants from each.
[ 1 *2007 ] SHAPE SCA *17
 Our employees may take a
rather squarish view of life
Admittedly, we think a lot of boxing things. Since we
offer four different material types and competences
that cover the entire packaging process, there is
enough to think of.
Things must hang together all the way through the
supply chain, easy procurement, practicable use in pro-
duction, stacking capability and durability in logistics.
SCA PACKAGING DENMARK consists of 7 business areas with
20 units and 1,400 competent employees in Denmark. We are
a member of Svenska Cellulosa Aktiebolaget, which employs
With SCA Packaging you will get a partner for the
entire packaging process. We offer solutions within:
• Strength/logistics optimisation
• Knowledge of packaging systems
• Packaging optimisation
• Supply chain know-how
• Competent consultancy More than a box ...
50,000 people at more than 300 production units in Europe, Asia
and America. SCA’s mission is to provide essential products that
improve the quality of everyday life.
Read more at
www.scapackaging.dk

Cookson believes there
are basic trends that
apply across Europe.
THE CHANGING
FACE OF FOOD
European food retailers will put
bigger effort in building their own
brands. That’s according to
ANDREW COOKSON, director
of the consultancy company
Gira, a world leader in
examining market trends in
the food retail industry.
BY ANNA MCQUEEN PHOTO ALASTAIR MILLER
PROFILE
ollowing trends around Europe makes
f
for a busy life, so there was no better
place for a rendezvous with Andrew
Cookson, director of the Geneva-
based Gira consultancy, than in Paris
at the sumptuous Belle Époque restau-
rant Le Train Bleu in the Gare de Ly-
on. Gira has been examining market
▲
trends in the food retail industry for
more than 35 years, and it was one of the first Eu-
ropean companies to use modern market research
techniques.
“We operate Europe-wide for all food and
worldwide for dairy, meat and fish, looking at
everything from sausages in Moscow to marga-
rine in Spain,” Cookson says.
[ 1 *2007 ] SHAPE SCA *19
PROFILE
Cookson believes there are basic trends that
apply across Europe, despite the different cul-
tures.
“People say that countries are so different
that it is impossible to generalize, but I think
that’s nonsense,” he says. “What’s more, peo-
ple say the very few products that are general-
ized are McDonald’s, Mars Bars and instant
Nescafé, and other than that, everything’s dif-
ferent. This may be so, but the basic trends are
still the same. Consumers everywhere in devel-
oped countries – those who eat as much as they
want of whatever they want – are looking for
convenience and a clear offer. They don’t want
to waste time looking for, negotiating and buy-
ing food that is boring and basic, and they want
all their food to be convenient.”
MANUFACTURERS LIKE Nestlé and Dan-
one are clearly moving toward increasing their
profits by expanding their markets and increas-
ing their market share, Cookson says. But one
of the biggest current shifts in the retail food
sector is with retailers themselves. “They in-
creasingly want to differentiate themselves
from their competitors by building brands with
their store name,” he explains.
In the US, store names already exist as clear-
ly defi ned brands, like Wal-Mart and Costco,
but in continental Europe, with a few excep-
tions, this is not yet the case. “We are moving
into a period of creation and defi nition where
store names are beginning to mean something
to consumers,” Cookson says. “We are now
on the verge of retailers creating a real image
around their store brand’s name and logo, but
this hasn’t really happened so far other than in
the UK, Switzerland and Belgium. Retailers
have started demanding products from their
suppliers that strengthen the image they wish
to project.
“Over the next 10 to 20 years, retailers will
increasingly be looking for products that dif-
ferentiate them from the competition as well as
for basic products that consumers have to fi nd
in their stores at the highest quality for the best
price,” Cookson says. “It’s already been done
by Leclerc in France, Lidl and Aldi in Germa-
20*SCA SHAPE [ 1 *2007 ]
ny and Tesco and M&S in the UK,” he adds.
Cookson believes this will have a big impact on
food suppliers and the whole question of how
food is put into the store. “Retailers now have
to have a story to tell, and it’s no longer just one
“We are mov- of price,” he says.
ing into a Retailers are also now exporting their
savoir-faire. The German hard discount mod-
period of cre- el, the French hypermarket model and the UK
ation and defi- added-value supermarket model are fighting
nition where for space in countries where previously there
store names was no such model, such as central Europe,
the Far East and South America. “But because
are begin- of the saturation in their home markets and in
ning to mean addition to geographical expansion, they are
something to also trying to better exploit their existing cli-
ent base by selling new products,” Cookson
consumers. says. For example, German hard discounters,
We are now who traditionally stocked limited product
on the verge lines, are now selling fresh meat. “And our re-
of retailers search is showing that by 2015, 35 percent of
all fresh meat sold in Germany will be sold by
creating a real hard discounters,” he says.
image around But, Cookson says, eating habits in Europe
their store are undergoing significant change because of
brands’ name price. People are now more willing to know-
ingly buy lower-quality products to have
and logo. enough money left over to pay for telephones
and sneakers for their kids. “We are heading to-
ward consuming lower-quality food with more
carbohydrates and sugars, and this is a factor
in the increasing levels of obesity we are seeing
today,” he says. “This is a fundamental society
problem.”
REDUCING ECOLOGICAL COSTS and pro-
moting sustainability is also becoming a real is-
sue for retailers, who are increasingly obliged
to behave in an environmentally responsible
manner. “With such wide product ranges,
Europeans are sustainability is tough to apply to a retailer,
knowingly buying
lower-quality products
but this is just the beginning,” Cookson says.
to have enough money “We’re going to see increasing pressure on re-
left to buy telephones tailers to change and this will put up the cost
and sneakers for their
kids, Cookson says.
of food, which will eventually be absorbed by
consumers.”
Cookson believes the key area to watch right
now is the development of biofuels and their
▲

EUROPEAN BRAND

FOTO: GETTY IMAGES

CATEGORIES
■ SCA is Europe’s biggest supplier of tissue
paper for household brands, with strong
positions in the largest European markets.
SCA invests more resources than ever on
product development that aims to
strengthen SCA’s own brands and improve
profitability.
Within personal hygiene products the
retailers’ own brands represent a small
portion of the total sales. In many markets,
SCA increasingly complements its own
brands by manufacturing products for
retail brands.

The division of the European market

between producers’ brands and retailers’
own brands looks like this:

TISSUE PAPER
FOR CONSUMERS
56% 44%
RETAILERS’ PRODUCERS’
BRANDS BRANDS

More products will

be sold under retai-
lers’ own brands in
the future.

100

Retailers now
FEMININE HYGIENE

80
INCONTINENCE

have to have
PRODUCTS
PRODUCTS

60
▲
DIAPERS

40
a story to tell,
75% 85% 98% and it’s no longer just
20

25% one of price.

15% 2%
0
PRODUCERS’ BRANDS
RETAILERS’ BRANDS

[ 1 *2007 ] SHAPE SCA *21

PROFILE
impact on the food industry. Tens of thousands
of people took to the streets of Mexico City in
January to protest the price of tortillas, which
has doubled in some parts of the country in the
past year. Many believe the price rise is due to the
increasing use of corn for biofuels production.
“LARGE QUANTITIES OF GRAINS and oil-
seeds are now being burned rather than eaten,”
Cookson says. “This means not just fewer food
products all the way through to the meat and
dairy chains, but serious price increases for all
basic staple foods, which is seriously bad news
for poor people, Third World countries and even
European and US consumers. The consequences
could be earth-shattering. Biofuels production is
being driven by a race for subsidies and a need
for political correctness, and nobody is looking
at the effects it will have on the food chain. This
is happening right now, and nobody knows what
the impact will be.” ▲
22*SCA SHAPE [ 1 *2007 ]
FOOD TRENDS
ACCORDING TO
ANDREW COOKSON:
★ Consumers want food to be
convenient.
★ Retailers want their logo on
products to strengthen their
image.
★ Fresh meat is moving in at hard
discounters.
★ Consumer choices are tending
toward lower-quality food, while
sustainability is increasingly
important for retailers.
NAME: Andrew Cookson
LIVES: Just outside Paris with his
wife and two children.
CAREER: “I’ve lived in France for
30 years now. I did a language
degree at Oxford and then spent a
year abroad in Eastern Europe. I did
my articles and worked as a
chartered accountant for a year
before I went to the INSEAD
business school near Paris. I
subsequently held various financial
jobs before I started working with
Gira in 1990.”
HOW HE DEFINES HIMSELF AS
A CONSUMER: “The advantage
of being a Brit living abroad for
so long is that you have no real
culinary traditions of your own, so
you can judge everyone’s eating
habits objectively, however strange
they may appear at first sight.”
 FOCUS On:
IMAGE
SAVINGS
HYGIENE
INNOVATION
PRODUCTIVITY
PROFITS
PERFORMANCE
SERVICE
PARTNERSHIPS
ENVIRONMENT

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Xpressnap® napkin dispensing system in new fun and vibrant colors.

The Xpressnap napkin dispensing system not only looks good in any casual dining environment, it also
substantially reduces napkin consumption. How? It dispenses one napkin at a time. So now patrons take one
napkin—instead of grabbing a handful. In fact, recent research suggests you may reduce napkin usage by as
much as 50%. At SCA, we guarantee that Xpressnap will reduce your napkin consumption by at least 25%!
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TECHNOLOGY

gets to the root

The most brilliant solutions are often the simplest.
Like using copper paint to direct roots and get
forests to grow faster and straighter.

t
TEXT GÖRAN LIND ILLUSTRATION LEIF ÅBJÖRNSSON

rees need a well-developed
root system in order to grow
fast and straight. Deformed
root systems are a problem
that affects forest owners the world over.
One reason over the last few decades has
been root circling in forest plants that are
grown in pots.
“When the roots reach the sides of a
smooth pot, they bend and follow along
the side of the pot, then start to circle and
intertwine. This produces unstable trees
with poorly developed roots that cannot
absorb nutrients as efficiently as trees
with a well-developed root system can,”
says Leif Gulin, a biologist at SCAs plant
producer NorrPlant. With nurseries in
Bogrundet and Wifstamon outside
Sundsvall, Sweden, NorrPlant is the lar-
gest supplier of forest plants in Europe.
Poor root systems result in forests
with lower quality, which means signifi-
cant economic consequences for forest
owners.
“We’ve been working on this problem
for a long time and have developed pots
with root-training ridges and air slits that
guide the roots in the right direction,”
Gulin says. “In the early 1990s we took
the final step toward producing plants
with as good a root system as trees grown
from seed in trays. That’s when we began
to look at a method using copper paint
that was described by Canadian re-
searchers as early as the 1970s.”
THE METHOD INVOLVES coating
the inside of pots with a paint containing
copper, in amounts that are carefully ad-
justed for the plant that is to be grown.
“Copper is poisonous in concentra-
tions that are too high and stops root
growth at the edge of the pots,” Gulin
says. “Copper prevents the outermost
cells from dividing and this keeps the
root from growing.” He adds that the
same thing can be seen on copper roofs,
where no vegetation grows.
When the seedling is planted out in its
prepared site in the forest, the concen-
tration of copper is reduced at the root
end and the root begins to grow in the
forestland. As a result, the tree gets a
well-formed, symmetrical root system.
“We see some improvement in
growth,” Gulin says. “The quality also
improves because the trees grow straigh-
ter, but mainly trees become more
stable.”
Spruce is the dominant species. Last
year, it accounted for more than half of
all plants from NorrPlant. Pine account-
ed for 37 percent and contorta pine 8 per-
cent. So far, NorrPlant has produced
more than 300 million plants with cop-
per-painted pots. Starting this year, no
plant trays are being sold with unpainted
pots. The concept has also been sold to
Södra, a cooperative of private forest
owners in southern Sweden.
The plant trays are recyclable and are
used for many years. After planting they
are returned to NorrPlant, cleaned of
dirt and paint and then repainted. The
amount of copper that seeps into the
ground as a result of planting is very lim-
ited, considerably less than the natural
content in the ground. ▲

24*SCA SHAPE [ 1 *2007 ]

▲
SCA INSIDE

3 AWARDS
Three winners.
Display-product Kit-
Kat Sakura (right)

TO SCA
protective packaging
Hyflux Dragonfly
(middle) and Purina

IN SINGAPORE
Beggin Strip (left).

■ SCA Packaging Asia won three awards at Singa-

pore Packaging Star Awards 2006. The winning
products were Kit-Kat Sakura and Purina Beggin
Strip in the Sales and Product Display categories. The
third award came for the Hyflux Dragonfly three-in-
one protective packaging solution in the Transport
and Protection product category.
“Winning these awards clearly differentiates SCA
Packaging as a strong player and leading packaging
solutions provider throughout Asia, helping to boost
customers’ confidence in our product design
capabilities, and in turn our ability to deliver innova-
tive, high-quality packaging solutions,” says
HungChee Loh, president of SCA Packaging Asia.
The Kit-Kat Sakura also won a prize at the Asia Star
Awards 2006, out of more than 100 competing
entries submitted from 14 countries throughout Asia.
The Asia Star Awards are organized annually by the
Asian Packaging Federation. The Singapore Packag-
ing Star Awards event has been hosted by the
Packaging Council of Singapore since 1998.

NEW DEVELOPMENTS IN TORK ONLINE

NOVEMBER SAW the launch of
Tork Online 2.0. This is the first step
in a series of releases that will make
the Tork Online web site more
accessible and attractive no matter
whether the customer is new or well
acquainted with SCA and Tork.
The updated version of Tork
Online includes a section called Ex-
perience Tork and describes three
of the keywords the Tork brand
represents – hygiene, absorbency
and softness. The section will be
expanded with more areas in the
next release. Another new develop-
ment is the My Product List section,
which gives customers and distribu-
tors the chance to create their own
product list and download related
product information including pic-
tures and CAD fi les (3-D drawings
for architects).
“The fact that our online project is
right for our customers is confirmed
every month by our statistics for
visitors,” says Ulrica Westheim, head
of new media at SCA Tissue Europe.
“Since it started two years ago, the
number of hits has increased more
than 500 percent.” new products. There are 25
Release 2.1 will appear in 2007, versions of Tork Online in 22 coun-
and expectations are already high. tries, all built on the same platform.
The main target group for Tork Tork is SCA’s brand in AFH (Away
Online is distributors who need From Home) products and is found
clear production information in Europe, North America and Asia.
quickly and want to learn about www.sca-tork.com

26*SCA SHAPE [ 1 *2007 ]

 Truck driver Carl-Erik Lodin
is happy with the new technique.
The only visible parts of CTI-
technique are the tubes on the
outside of the wheel.

Today there are four

Eco-friendly transportation with CTI
SCA IS CUTTING costs
and looking after the
environment by increas-
ing the number of trucks
equipped with CTI
technology in its forests.
The decision was made
following a successful
test project, for which the
Swedish Road Admin-
istration has now given
approval and provided in-
structions. CTI stands for
“central tire inflation” and
involves the adjustment
of air pressure in tires. It
makes the weight of the
vehicle spread evenly and
allows vehicles to carry
heavier loads than nor-
mally permitted on certain
roads and during critical
periods, such as when the
ground is thawing or when
trucks operating in SCA’s
forests with CTI technol-
ogy, and the goal is to
increase the number of
vehicles to 20 as quickly
there has been continu- as possible.
ous rainfall. This, in turn, The test, started three
means lower transporta- years ago, was carried out
tion costs for SCA and together with the Swed-
lower emissions. ish Road Administration,
“We’ve experienced very truck operators, vehicle
positive results from the manufacturers and other
test project, and reliability forest companies. Overall,
has exceeded my expec- the forestry industry in
tations,” says Ingemar Sweden sees opportunities
Ljunggren, head of trans- to reduce its costs by SEK
portation at SCA Skog. 100 million annually.

TORK WINS THE WEMBLEY

STADIUM CONTRACT
■ SCA’s strong environmental policies clinched the deal
with Britain’s new Wembley Stadium. The stadium’s
2,618 restrooms, estimated to number more than in any
other building in the world, will all feature Tork products.
“SCA had the products we wanted, but key to our
decision was how the company’s environmental respon-
sibility is reflected in its policies,” says John Andersen,
Wembley Stadium’s cleaning services manager. “We
were impressed by the fact that SCA puts money back
into reforestation and avoids using chlorine bleach in its
products while also trying to minimize energy consump-
tion. These factors scored very highly with us, and there-
FOTO: NEIL PROCTOR

fore we were keen to sign up SCA Tissue Europe ahead

of any other tissue suppliers.”
The stadium, which will open this year, will have
90,000 seats and will accommodate more than 1.5 mil-
lion sports and music fans each year.
Tork manufacturer SCA Tissue Europe is the European Tom Dudfield, SCA , John Andersen, Wembley Stadium and
market leader in tissue. Rob Broadbent, SCA.

[ 1 *2007 ] SHAPE SCA *27

 Packaging operations
in North America sold
SCA HAS SOLD its North
Nana Plus+ is SCA’s American packaging opera-
new multipurpose
tions to Metalmark Capital
feminine hygiene
product. for USD 400 million. The
North American opera-
tions have annual sales of
about USD 430 million.
The transaction is expected
NEW PRODUCT IN FRANCE to be completed during the
fi rst quarter of 2007 and
■ France is the first country to launch a new the purchase price will be
multipurpose feminine hygiene product called
Nana Plus+. With this new product, SCA Per-
paid in cash.
sonal Care will reach a market in France that “Our ambition is to
has not yet been actively targeted. The target concentrate SCA’s pack-
group is women between 35 and 60 years who aging operations in the
use feminine products rather than purpose- European market, where
made incontinence products to address their Eastern Europe and Russia
incontinence condition. Nana Plus+ is posi-
tioned as premium product, which is indicated
are the fastest-growing
by its look and price. The next market in line regions,” says Jan Åström,
to launch the product is Italy, where it is called SCA’s president and CEO.
Nuvenia Plus+. “Along with that, we want
to continue our growth in
China, where trends are
favorable. The sale of our
WWW.SCA.COM
HAS A NEW LOOK
■ SCA’s external Web site
has a new look and feel as of
January this year. The main
changes are the layout, a sim-
plified and more user-friendly
structure, more frequent
news updates and the fact
that the whole site can now
also be viewed in Swedish.
“SCA’s Web site receives
around 200,000 visitors a
28*SCA SHAPE [ 1 *2007 ]
North American packag-
ing operations allows us to
speed up our pace in these
regions.”
The operations account
for about 10 percent of
SCA’s total sales within its
business area Packaging.
Annual earnings per share
will be reduced in the short
term by SEK 0.2, while
net debt will be reduced by
about SEK 2.8 billion.
The sale is in line with
the strategy SCA presented
at Capital Market Day last
September. SCA sees good
opportunities for growth
and improved earnings
within its four business
areas. Selective divest-
ments and acquisitions
will contribute to this
development.
month and is one of our most
important communication
channels,” says Anna Selberg,
vice president corporate
communications in Stock-
holm. “Our focus during the
coming year will be to further
develop the content and
structure to even better com-
municate the whole business
of SCA.”

Libero sailing along
■ Things are going well for Libero,
SCA’s diaper brand in the Nordic
countries. All of Libero’s diaper prod-
ucts have increased their market
share as competitors lose ground.
The pant diaper Libero Up&Go
had the largest increase in sales
in 2006, rising 9 percent in both
volume and sales in the Nordic
countries. Several factors account
for these favorable numbers.
“First of all, it’s the high quality
of our diapers, with their excel-
lent fit and absorbability, which
consumers appreciate and choose
over other diaper products,” says
Fredrik Krook, category market-
ing manager at SCA Personal Care.
“Our efforts to market Up&Go as
our flagship product have also
been successful.”
Another important factor is
▲
SCA INSIDE
In May, SCA will launch a
limited edition in the
Nordic countries of its first
designer diaper under the
Spring Collection.
SCA’s successful marketing cam-
paigns. These include the award-
winning commercial “Marathon.”
The film premiered in 2005 in
conjunction with the launch of the
new generation of the Up&Go dia-
per and is still being shown. Also
playing an important role is the
fact that hospitals and maternity
wards choose Libero diapers for
newborns.
[ 1 *2007 ] SHAPE SCA *29
CAMERA

BUILDING IN

WOOD TEXT PER ÖQVIST

WOODEN HOUSES ARE IN, and many

of them look like nothing that came
before. New trends, innovative architects
and pioneering technology are all behind
this inventiveness.
Major efforts have been made in recent
PHOTO: GEIR BRENDELAND

years to allow the construction of wood

frame buildings of up to four or five stories.
In the US, 90 percent of all new buildings
of this height with light frame construc-
tion are wood frame.
“A couple of years ago, the EU decided
that wooden buildings could be built up
to five stories high instead of four,” notes
Mark Isitt, editor-in-chief of the architec-
tural journal Forum AID.
In many projects more than two stories
Face Bar in Bangkok, with an interior and exterior of equal
high, wood has turned out to be cheaper to beauty, mixes traditional Thai architecture with minimalism,
build with than other framing materials. antique furniture and antique Buddha figures. The building is a
Technology also allows companies that bar, a temple, a bakery, a restaurant and a spa – an oasis where
trend-conscious pilgrims can escape the rush of Bangkok.
manufacture prefabricated houses to start
working on multi-story building projects.
Wood is also used increasingly as fac-
ing. Steel and glass are combined in a dar-
ing way with wood, which given its natural
properties withstands the impact of wind
and weather.
Wood has its own character. It ages
beautifully, and unlike any other building
material it is living.
“For decades, we’ve seen an inferno of
steel and glass,” Isitt says. “Now wood is
becoming increasingly popular among
leading architects as a reaction to dead
glass. Combining dead glass and living
wood is refreshing.” ▲

30*SCA SHAPE [ 12**2007

2006]]
 The tallest residen-
tial building made
of wood is Strand-
veien 37 in Trondheim,
Norway, by Brende-
land & Kristoffersen
Architects.
Constructing the
entire building with
prefabricated wooden
components has a
number of positive ef-
fects. Wood has been
found to bond exhaust
fumes and other pol-
lutants, which means
that wooden buildings
have a positive effect
on urban environ-
ments. Every wooden
component is also
impregnated to make
it non-flammable.
PHOTO: FACE BAR

PHOTO: GETTY IMAGES

The Church Village of Gammelstad, Luleå, in Sweden is on UNESCO’s list of World Heritage
sites. It is northern Europe’s largest and best-preserved “church village,” with 424 wooden
houses, arranged in a medieval city pattern around a magnificent stone church with a sepa-
rate bell tower. Most of the houses have two rooms.

[[21**2006
2007 ] SHAPE SCA *31
 CAMERA

PHOTO: PATRIK GUNNAR HELIN

PHOTO: FELIX NUSSBAUM MUSEUM

Santiago Calatrava is the architect behind the Turning
Torso in Malmö, Sweden. Another spectacular building,
which has won numerous awards, is his Ysios Winery in
Laguardia, Spain, built from 1998 to 2001. Two undulat-
ing cement walls, almost 200 meters long, run parallel,
26 meters apart. The southern wall is fully clad in cedar.
PHOTO: SCANPIX

32*SCA SHAPE [ 12**2007

2006]]
 Gert Wingårdh is the architect behind the
noted House of Sweden, where the Swedish
Embassy in Washington is located. All
interior floors, walls and ceiling are made
of wood. The exterior of the building,
however, plays an ingenious visual trick
on the eye. “He plays with the image that
foreigners have of how we build in the
Nordic countries,” Isitt says. “Behind glass
panels are computer-generated imitations
of wood veneer.”

The wooden churches

of Kizhi in Karelia,
Russia, were built in
the 18th century and
illustrate a visionary
architecture far ahead
of its time. UNESCO
has named Kizhi a
World Heritage site.
It lies in the northern
part of Lake Onega in
the Republic of Kare-
lia. Two magnificent
18th century churches
and an octagonal bell
tower from 1862, also
made of wood, are key
buildings in this open-

PHOTO: GETTY IMAGES

air museum for north-
ern Russian wooden
architecture.

Daniel Liebeskind
is a spectacular
architect who won the
competition to design
Freedom Tower, the
replacement for the
World Trade Center’s
Twin Towers in New
York. “He’s hard-
nosed and known for
his architecture in
metal,” says Mark Isitt.
“Using the same style
in wood, the expres-
sion is completely dif-
ferent – warm and em-
bracing.” Liebeskind
has done excellent
work in wood, such as
the Jewish Museum
in Copenhagen. With
the Felix Nussbaum
Museum in Osnabrück,
Germany, he blends
wood, steel and glass
in a spectacular way.

[[21**2006
2007 ] SHAPE SCA *33
SHAPING A VIEW

Andrew Winston
The founder of Winston Eco-Strategies, helps leading companies use
environmental thinking to drive growth. His current book, the
bestseller Green to Gold, highlights what works – and what doesn’t –
when companies go “green.”

“ONE LESSON FOR BUSINESS:

THINK ABOUT A LEADING GREEN PRODUCT
AS A GATEWAY — THE EQUIVALENT
OF A LOSS LEADER.”

FROM LOSS LEADERS

TO GREEN LEADERS
m y wife and I were lucky enough
to welcome Jacob Winston into
the world six months ago. His
birth made me think about many
things, from the circle of life to
“Wow, college will be expensive in 18 years.”
But from a green business perspective — and is there
any other? — I was thinking about the arrival of a new
consumer, one I hope to raise as a green one. And about
how successful the organic baby food market has been. I
hear from many people that baby food was their introduc-
tion to organics in general. Organic milk followed fast,
and then on to a range of other foods. Once you decide
it’s healthier for your baby, you begin to wonder why you
shouldn’t be eating organic yourself.

ONE LESSON FOR BUSINESS: Think about a leading

green product as a gateway — the equivalent of a “loss
leader.” Figure out the way into a customer’s life with a
greener option, then open them up to the idea of many oth-
ers. Organic foods have grown so fast in part because they
offer the promise of personal benefits — health and pro-
tection from pesticides in particular. They demonstrate
perfectly the point about using green as the “third button”
to push with consumers, after price and quality. But once
you’ve pushed that button, customers may be more ready
to hear the green pitch in general. ▲

34*SCA SHAPE [ 1 *2007 ]