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 Contents N 1 2010

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Companies learn to conserve water, and products
get “water footprint” labels. Also check out Shape’s
financial lesson on yield.

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The short history of e-commerce is filled with as
many failures as success stories. Nevertheless, our
new “corner shops” are here to stay.

$B@3<2A
16 Different papers create different impressions, so
publishers choose their paper with great care. Also
read about how China’s young parents choose
disposable diapers.

7<B3@D73E
OECD’s chief economist Jørgen Elmeskov believes
better social security in Asian countries would give
a real boost to consumption and kick-start the
global economy.

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Why add aloe vera, a cactus extract, to panty
liners? Shape sorts out the question marks.

30 "A1/7<A723
Libra goes to the sky, take a peek at Veuve Clicquot’s
new packaging and meet Ulf Larsson, the man
22 behind the strategy at SCA Forest Products.

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The lack of sanitary protection for women in some
African countries affects their level of education,
crippling their economic development.

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21 The favorable trend for SCA continued in the
fourth quarter of 2009.

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Focus on
E/B3@4==B>@7<B
/A1=;>/<73Adiligently calculate
their carbon footprints, most organi-
zations today are aware of how much
carbon dioxide they are adding to the
environment. Now the term “water
footprint” is also gaining ground.
“The water footprint is the total
amount of water consumed in devel-
oping a product or that a company,
country or individual uses,” says Lasse
Gustavsson, secretary-general of
WWF. “The concept of water footprint
has emerged as a way to better under-
stand how commerce and our con-
sumption patterns influence the water
situation in the world. For instance, to
grow cotton for a T-shirt, 4,100 liters
(1,100 gallons) of water are used.”
According to the World Bank, 1 bil-
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lion people lack access to clean water. stand their water footprint and work
Given that the world’s population is actively to reduce it,” Gustavsson says.
growing, demand for clean water is So count on the water footprint becom-
expected to increase while climate ing just as important as the carbon
change reduces the supply of clean wa- footprint in environmental work in the
ter – a desperate equation unless the not too distant future.
international community takes action.
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for Standardization’s Technical Com- >@=2C1BA
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3@3B/7:(
In the space of about 10 years, digital technology has essentially
revolutionized one of humankind’s most ancient activities – trade.
Shape guides you through the flops, success stories and future
expectations in the short but dramatic history of e-retail.
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74G=C03:=<5 to one of the world’s
more connected populations, the odds
are good that you’ve purchased vegeta-
bles, bought books, booked a trip or
ordered a new pair of shoes online.
Within the past decade, online shop-
ping has become part of people’s every-
day lives in the more prosperous parts
of the world. Soon, nearly every Inter-
net-connected South Korean, German
or American will have made a purcha-
se on the Web. Connected consumers
in Africa, the Middle East and Latin
America are also taking part, so that
today the global percentage of Internet
users who have made purchases online
is about 85 percent.
“As our lives become more fractu-
red and cluttered, it isn’t surprising that
consumers turn to the unrivaled conve-
nience of the Internet when it comes to
researching and buying products,” says
Jonathan Carson, president, internatio-
nal, of Nielsen Online, a survey com-
pany for the global digital mall.
It’s easy to forget that the option of
buying anything from 17th century
Flemish art to carrots online has a very
short history. Just 10 years ago, the
number of online shoppers was limited
and e-retail itself was an agonizing mix
of slowly loading pages, narrow assort-
ments and orders that never turned up.
B63AB=@G=4 e-retail is a short one,
beginning on a modest scale in the fi rst
half of the 1990s. After a quiet start ca-
me the visionary recklessness of the IT
bubble. Putting “www” or “e” in front
of the most commonplace product,
such as dog food, was supposed to open
the floodgates to billions in profits.
And billions were likewise invested
in companies like pets.com, kozmo.com
(which promised to deliver everything
from chewing gum to pizza to your do-
or) and boo.com (sold expensive athletic
wear online), all of which wound up as
spectacular failures.
Behind these flops was a lack of re-
spect for good old commercial know-
how about consumer behavior, volu-
mes, margins, cost control and logistical
challenges. There was also a lack of
those old-fashioned virtues of patience
and financial staying power.
“One of the statistics I saw in 1994
that encouraged me to start Amazon
was that net usage was growing 2,300
percent a year – but it was still tiny,” the
entrepreneur Jeff Bezos recalls.
“One of the biggest problems with
big companies doing clean sheet inno-
vation is that even if you see it, you have
to be a really long-term thinker, becau-
se for a long time it will be a tiny slice
of the company,” Bezos says. “The key
thing is to be willing to wait five, seven,
10 years. And most companies aren’t
willing to wait 10 years.”
It took eight years of patience before
Amazon showed a profit for the first
time in 2003, which is considered so-
mething of a milestone in the history of
e-retail. Today Amazon is the largest

4@=;4/7:32D7A7=<B=2757B/:

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e-retailer in the world. A handful of
survivors from the dot-com slaughter,
first lauded and then derided, have had
their sweet revenge. They have essen-
tially rewritten the everyday life for at
least 800 million connected consumers:
shoppers who take for granted having
access to a global bazaar for everything
from antiques to designer vibrators,
open 24/7 and with the opportunity to
compare prices in stores from Green-
land to Australia.
It’s a revolution that has created a lot
of winners but also losers. The biggest
winners are consumers themselves.
A major reason is that the range of
goods and information available has
expanded enormously. That has in-
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creased people’s choices and put pres-
sure on prices.
0CBB67A23D3:=>;3<Bhas also
radically shifted the balance of power
between consumers and sellers. Today,
if customer service doesn’t listen to
them, dissatisfied customers have an
audience of millions to turn to.
“Recommendations from fellow con-
sumers, whether they are people they
know or fellow online shoppers, play an
enormous role in the decision-making
process,” says Carson of Nielsen Online.
And that is something that has made
the big online retailers aware of their
customer service practices.
Online electronic retailers beat their
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bricks-and-mortar colleagues by a wide
margin in consumer satisfaction, the
American magazine Consumer Re-
ports noted after investigating 90,000
purchases of consumer electronics at the
end of last year.
Amazon was among consumers’ ab-
solute favorites, in part because of its
generous return policy and customer re-
lations. The website’s system for custo-
mer reviews and electronically genera-
ted recommendations – “customers who
bought this book also bought . . . ” – is a
feature the retail giant pioneered which
created numerous imitators.
Together with eBay and alibaba.
com, a Chinese company that links up
foreign companies with Chinese cont-
ractors, Amazon is a star of the e-retail
fi rmament.
0CBB631=;>/<73Athat have pro-
bably made the most money from this
trend are the smart big players in tradi-
tional retail, who have now found new
channels and business models.
The list of the world’s biggest online
retailers today is dominated by traditio-
nal giants, like America’s Staples and
Sears and Britain’s Tesco.
As the Internet is increasingly inte-
grated into all facets of modern life, the
boundaries are also being erased bet-
ween out-and-out e-retailers and tradi-
tional giants with an Internet presence.
For a number of big retailers and
brands, the Web has opened up new, di-
rect channels to customers.
The American computer maker Dell
has offline roots in the 1980s. But it
only became a success story when the
company’s founder and CEO, Michael
Dell, saw the potential of letting custo-
mers customize their own products.
Apple, too, has the mix of creative
design, innovative products and a smart
Internet strategy in its recipe for success.
Some models and accessories can only
be purchased online.
Perhaps most importantly, the com-
pany behind the iPhone and iPod has be-
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come one of the heavyweights in digital
music with sales of downloadable music
via its iTunes Store.
Others have agonized more, like the
world’s largest furniture retailer, the
Swedish conglomerate Ikea.
Ikea continues that strategy today by
07553AB3B@/23@A7<B63CA
limiting its product range online.
But at the same time, the company’s 1=;>/<G BC@<=D3@
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ambitious website has become ever mo-
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re important for marketing and custo-
mer contacts. For many years now, AB/>:3A7<1 %%

The company’s ability to create
added value by carefully plotting the
customers’ course through its stores has
put a damper on the enthusiasm for vir-
tual shopping.
Pre-Internet, Ikea opted for the
customers have been able to plan their
kitchens in detail online using Ikea’s
Kitchen Planner.
In other industries, the Internet has
meant huge savings and significantly
higher profits. One example is the banks
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costs to provide the same service at the
bank.
But there are also losers.
These include established travel agen-
1]\ac[S`a cies, bookstores and music store chains.
In the 1990s, the music chain Tower
O\RW\[O\g Records, with its gigantic stores, was a
threat to the music industry given its do-
QOaSaO`bWaba minant position. In 2006, the company
filed for bankruptcy.
VOdSPSS\ Indeed, CDs and books were among
blow since music is also among the items
that can be downloaded as pirated copies
or, to a growing extent, from legal websi-
tes like Spotify, Pandora and iTunes.
Yet while music store chains and re-
cording companies have endured tough
times, consumers and in many cases ar-
tists have been winners.
It is estimated that, as a whole, the
music industry today has more sales
than ever before. Paradoxically, digital

eW\\S`a]TbVS the products that were early online

bestsellers.
SQ][[S`QS That’s something that has hit large
book and music store chains in particular.
The music industry has suffered a double
technology has increased interest in and
revenues from live concerts like the ones
back in the analog days.
So while developments in e-retail over
the past 10 years have meant both new

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opportunities and creative destruction,
they have also helped to preserve tradi-
tional operations and structures.
The Internet is hardly a threat to the
local supermarket or the corner produce
stand. On the other hand, the talented
violin maker, the producer of handcraf-
ted ecological cheese in Tuscany and the
Swedish jewelry designer have the opp-
ortunity to reach hundreds of millions
of potential customers online.
As a result, the modern world could
become a little more old-fashioned by
creating millions of small-scale opera-
tions that are now corner stores in the
global village.
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µE36/D3E30A6=>A up and following the trends on Internet. While 3F/;>:3A=4

running and are planning to open an-
other 10 this year,” says Lennart Hjält,
the Internet today accounts for only
a few percentage points of total sales,
E30AB=@3A(
e-Business Director for Hygiene pro- it serves an important function as an eeebS\ORW`SQbQ]cY
ducts at SCA. information and marketing channel eeebS\OYOc^^O¿
eeebS\OPcbWYYS\RY
With its TENA brand of inconti- for customers who shop in traditional
eeebS\O[OZZQ]Y`
nence products, SCA has been active in ways. One of SCA’s most recent web
eeebS\Ob`U]dW\OaW
e-retail for several years. shops is for the baby diaper brand Tre-
eeeb`SOac`SaQ]\hB`SOac`Sa
“The Internet is in many ways an asures in New Zeeland. eSPaV]^
ideal channel for sales “The web shop is an
and informa- interface and generates
tion about a indirect sales via other
product, and channels like telephone the turn of the millennium. Today its
many custo- and mail order sales,” annual Internet sales are about 60 mil-
mers appreciate Hjält says. lion euros and include markets in Eu-
the discretion SCA has been ma- rope, USA, Korea and Japan.
the Internet gi- king use of the Inter- “We started early using Internet and
ves them,” Hjält net since the begin- are well positioned to join the develop-
says. ning – its B2B trade ment in an area that has very strong
SCA is closely started even before growth,” Hjält says.

 A1/A6/>3I   K
 TM

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Our new design ensures easy and intuitive maintenance,
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B@3<2
Say it with
>/>3@
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B3FBACA/<</:7<25@3<7::CAB@/B7=<;/8/;=2p<
B63;/5/H7<3A stacked on the cof-
fee table show this year’s trends in
fashion and interior design attractive-
ly wrapped in covers made of thick,
glossy paper. The TV guide is crin-
kled and crumpled, signaling “you
can throw me in the recycling bin in a
week – nothing to be saved.” There’s
also a newsletter here from a develop-
ment aid organization whose message
is “Your help is needed.” That’s where
the latest trend is most visible – com-
municating an environmental attitude
by publishing magazines on paper
seen as environmentally friendly.
“The trend is especially clear among
E6/B¸A;=AB charity and volunteer organizations,”
says Matthew Jolly, production direc-
7;>=@B/<B7AB6/B tor at John Brown Media in London,
which creates newsletters, brochures
B63>/>3@7A and catalogs for a large number of com-
13@B74732/<2 panies and organizations both in Brit-
ain and beyond.
1=;3A4@=;/@3 The choice of paper has become
<3E/0:3A=C@13 part of the message. It’s not just fac-
"A1/A6/>3I   K
tors like price or image reproduction
that determine what paper a publica-
tion will be printed on.
“A paper that’s more matte is seen by
many people as more environmentally
friendly for the simple reason that they
think paper with a rougher appearance
should quite simply be rougher ,” Jolly
says. “They think this even though pa-
per made from pulp of recycled paper is
not automatically more environmental-
ly friendly, and often it’s more expensive
than paper made from fresh fibers.”
<=<3B63:3AAB63trend seems
to be spreading to the more commer-
cial market. The British TV chef Jamie
Oliver’s Jamie Magazine, which is pub-
lished by John Brown Media, is typical
of the trend. Printed on a white rustic
paper that gives the magazine an al-
most coarse-grained look, the publica-
tion stands out among other food mag-
azines selling food fashions and recipes
with more traditional glossy covers.
7BE/AAC>>=A32
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B@3<2
“What’s most important is that the
paper is certified and comes from a re-
newable source,” Jolly says.
More and more companies are re-
quiring that the paper used is eco-
labeled, regardless of whether it is for
annual reports, brochures or maga-
zines. FSC-certified paper is one ex-
ample of this. A stamp from the Forest
Stewardship Council (FSC) is a guaran-
tee of environmentally friendly, social-
ly beneficially and economically viable
use of the world’s forest resources.
E3¸D3A33<environmental trends
before. Back in the first half of the
1990s, it was all about unbleached.
“It was supposed to be gray, prefera-
bly, so that it really looked like it was
environmentally friendly,” says Char-
lotta Folkelind, a paper consultant
at the European wholesaler Map in
Gothenburg, Sweden. “There was also
a legitimate discussion back then about
chlorine bleach. We don’t have that
problem today. There’s also different
knowledge now about how white can
be just as good for the environment.”
This time, she thinks environmental
thinking is here to stay, and the eco-
label requirement will become increas-
ingly important in the choice of paper.
The demand for better-quality paper
made from recycled paper varies:
$A1/A6/>3I   K
“In Sweden and Norway, we have so
much raw material that we don’t have
to use recycled fibre for publications for
the sake of the forest,” Folkelind says.
“The trend comes from Britain and
France, where they don’t have as much
forestland, and people are continually
developing new technology to improve
recycled paper.”
Jolly confirms that this is the case
in Britain. “But even here, a lot of re-
cycled paper is made from a mixture
of new and old fibers to get the glossy
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finish that is still best suited to most
publications,” he says. “Moreover,
fibers can only be recycled five or six
times, so if everyone just used recy-
cled paper, that paper would soon run
out.”
So in the future as well, glossy covers
will still be enticing us to read. Mat-
thew Jolly has a hard time imagining
Aston Martin presenting its new cata-
log of luxury sports cars in anything
other than glossy packaging, which sig-
nals the good things in life.
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27A>=A/0:327/>3@A
Cloth diapers have been
widely used in China
for ages, but members of
the younger generation
today prefer disposable
diapers for their babies.
B3FB(8/<6r93@03@5>6=B=(7AB=19

raditionally, the dis-

B
posable diaper has not
been part of the cultural
norm in China. Babies
wore cloth diapers or, in
many cases, no diaper at
all. Potty training often begins as early
as six or eight months. Many toddlers,
especially boys, have worn what is
called kaidangku, colorful open-crotch
pants that let them squat and relieve
themselves in open areas.
However, with a rapidly growing
economy and improving living stan-
dards among China’s huge 1.3 bil-
lion population, trends have changed
swiftly. Today modern stores like
hypermarkets or supermarkets,
especially in the cities, offer shelf
after shelf fi lled with disposable
baby diapers, both domestic
and international brands.

031/CA3=4167</¸Aone-
child-policy, parents tend to spend a
substantial part of their income on the
only child. Figures from the National
Bureau of Statistics show that outlays on
an infant or child in urban areas make
up over 30 percent the total spending of

I   KA6/>3A1/ %
 a family, which could include two par-
ents and four grandparents.
Elina Li Lihua, who lives and
works in Shanghai, is the mother of
26-month-old Joanne Yang. She ex-
plains that the use of diapers divides
older and younger parents.
“Many older people prefer cloth
The use of diapers in China is differ-
ent than in Europe. In general, Chinese
mothers check the diaper more often
and tend to change it immediately after
a pee. Consequently, absorption plays
a smaller role when evaluating diapers,
while skin-friendliness and comfort for
the baby are very important. While dia-

A][SbW[Sa since they say it is more comfortable

for the baby,” Elina says. “But young
per use in winter is high – up to 10 pieces
a day – it drops off in the summer, when
people defi nitely prefer diapers since diapers are often only used during the
RWO^S`a they are so much more convenient. night and when going out.
Sometimes this causes fights between
QOcaSa¿UVba the generations.”

PSbeSS\bVS 4=@63@47@ABG3/@, Elina’s

daughter wore disposable diapers
US\S`ObW]\a both day and night. After a year she
started with potty training, and today
Joanne can express herself when she
needs to use the potty, so diapers are
only used at night.
“Back home, in Shaanxi province, they
mainly use domestic brands because they
are cheaper,” Elina says. “But in Shang-
hai, most people I know can afford to buy
international brands, which normally of-
fer better quality and fewer rashes.”

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lift world
d
consumption on
7<B3@D73E
74>@7D/B31=<AC;>B7=<in the
fi rst decade of this millennium was
largely about an American housing
boom fi nanced mainly with bor-
rowed money, this fi nancial crisis has
transformed conditions for compa-
nies focused on consumer goods.
The next decade will probably be
the most convulsive in half a cen-
tury. Economic and fi nancial condi-
tions have not just changed radi-
cally, but there has also been rapid
growth in new markets, greater
environmental awareness and a new
political climate.
In an interview with Shape, the
OECD’s chief economist, Jørgen
Elmeskov, suggests several explana-
tions for the reversal in consumption
in the US and the West over the last
few years.
“Households have lower assets
because housing prices are fall-
ing and the stock market has been
weak,” he says. “Households con-
cider themselves less rich and have
increased their savings. At the same
time banks have put the brakes on
new loans and the extension of old
credit lines. And then consumption
has, as it were, been normalized
now that many people are jobless
and incomes are down.”
A1/A6/>3I   K
Savings were exceptionally low for
many years, but the OECD estimates
in its latest forecast that a lot of the
adjustment in savings has already
been made and that consumption in
the OECD countries can slowly pick
up speed this year. But Elmeskov ac-
knowledges that this forecast, too, is
uncertain.
“That depends to a large extent on
whether people feel comfortable re-
building their fi nances and that there
won’t be any setback,” he says. “For
instance, we had counted on a larger
fall in housing prices, so the question
is whether the rise or stabilization
of prices in the housing market that
has occurred in important markets
like the US and Britain is sustainable.
Furthermore, households nowadays
are really price-sensitive, especially
on major purchases, which is some-
thing companies have to be aware
of.”
Additional reasons for caution are
continued high unemployment, weak
income growth and the fact that po-
litical-economic stimulus measures
that have sustained consumption in
recent years will disappear. A more
likely scenario is that economic pol-
icy will be constricted when interest
rates are raised and governments are the importance of these countries as
forced to start saving to reduce their engines of consumption will grow at
budget deficits. a rapid pace, but he advises caution
Housing construction will not when calculating the effect on the
reach the levels of the 2000s for de- global economy as a whole.
cades because there is still an over- “The old industrial countries are
supply of relatively cheap housing still the largest by far in terms of the
in many important markets. On the impact of private consumption on
other hand, car sales in the West to- world growth,” he says. “In these
day are now low relative to the long- new fast-growing, high-population
term trend, so there is hope of a re- countries, consumption is a signifi-
turn to more normal conditions over cantly smaller portion of GDP than
the next few years. in the OECD bloc, so it’s far too early
to count on them lifting the global
B6=A31=<B@70CB7<5 most to economy all by themselves.”
the rise in consumption are the rap- Over the slightly longer term, how-
idly growing economies mainly in ever, he is more hopeful.
Asia. Elmeskov believes this trend “Perhaps the most important mea-
will continue, and be magnified, in sures that can be implemented are to
the years to come. He also thinks begin expanding the social security

>S`VO^abVS[]ab
W[^]`bO\b[SOac`SabVObQO\
PSW[^ZS[S\bSRO`Sb]PSUW\
Sf^O\RW\UbVSa]QWOZaSQc`Wbg
agabS[aZWYSVSOZbVQO`S probably affect consumption pat-
systems, like health care and pen-
sions, in these countries,” he says.
“People today are forced to maintain
a very high level of savings. With bet-
ter social security systems, consump-
tion would get a big boost. The trend
is in that direction, although it’s hap-
pening in small, careful steps.”
Currently, these emerging econo-
mies are too small and too export-ori-
ented to completely offset the decline
in the West. Still, in the longer term, it
is undoubtedly there that we will see
the greatest growth in consumption.
BE==B63@4/1B=@Athat are
expected to influence private con-
sumption are energy and environ-
mental issues. Even though the Co-
penhagen climate conference was
considered by most analysts to be a
failure, the demands for lower emis-
sions continue – meaning that in the
long run, energy consumption must
be reduced. People’s environmental
awareness is also growing, and the
cold winter in Europe this year has
served as a new reminder that cheap
8¤`US\3Z[SaY]d
energy nowadays is just a memory.
“Higher energy prices and de-
mands for lower emissions will defi-
nitely affect consumption in the near
term,” Elmeskov says. “But that will
terns to a greater extent than the level
of consumption. Demand for energy-
efficient products will continue to
grow as prices for energy-intensive
products continue to rise. We’re al-
ready seeing that today.”
What companies do not do on a
voluntary basis will gradually be
forced on them by politicians. How-
ever, the OECD’s chief economist is
more uncertain about the effect of
growing environmental awareness on
consumption.
“It’s really hard to see what ef-
fects environmental thinking has
had on total consumption,” he says.
“We still can’t see any new pattern,
for instance, in the form of locally
produced goods or completely new
groups of products.”
I   KA6/>3A1/  
B316<=:=5G
The sap of the cactus Aloe vera is known for its
skin-healing properties. But what good can aloe
vera really do in a personal hygiene product?
B3FB(63<@793;7:A=<7::CAB@/B7=<(:374n08r@<AA=<
B631/1BCA
B6/B1=;4=@BA
a loe vera is found in all kinds
of products – skin lotions,
lip balms, juices, tooth-
paste, shots drunk to settle
an upset stomach – so why wouldn’t it
also be found in a sanitary napkin, pan-
ty liner or light incontinence product?
“Aloe vera is common in skin lo-
tions because of its skin-healing
properties,” says Annika Hermenius,
technical product manager at SCA
in Gothenburg, Sweden. “It’s known
for being used on burns, among other
things, given that it’s incredibly effec-
tive. For us, it’s natural to use aloe ve-
ra because our products fit right next
to the skin.”
B6363/:7<534431BA of Aloe vera
are of almost mythical proportions, as
the English names “burn plant,” “first
aid plant,” “medicine plant” and “mira-
cle plant” attest. The long, spiky blue-
green leaves are highly sought after for
the sap they contain. When the leaves
are cut, the sap can run out or be pressed
out, and it is ready for use immediately.
The gel contains more than 150 differ-
ent active ingredients, such as vitamins,
minerals, amino acids, enzymes, mono-
and polysaccharides and sterols as well
A1/A6/>3I   K
as anthraquinones like lignin, sapon-
ins and salicylic acid. Hermenius and
European Assortment Manager Nils
Ostlin say the purpose of aloe vera in
personal care products is to create bet-
ter comfort in wearing the product.
“The point is to reduce the effect
that a sanitary pad has on the body,”
Ostlin says. “It’s a sensitive part of the
body that’s subject to systematic abra-
sion, which we want to avoid to the
greatest extent possible.”
Aloe vera in a sanitary pad is not ab-
sorbed by the body, he says. It doesn’t
replace an ointment or similar prod-
uct but instead helps make the usage
experience better. Comfort and fit are
all important when it comes to devel-
oping a sanitary pad. Pads come in dif-
ferent sizes, are either form-fitting or
not, have wings or not – all so that the
individual users will fi nd the kind that
fits them best.
“That’s the biggest challenge, be-
cause every woman is unique,” Her-
menius says. “Fit is also linked to what
clothes you’re wearing and to different
situations. It has to work just as well
at a meeting as when you’re working
out.”
Aloe vera is so popular as an ingre-
dient that there are home parties, like
Tupperware parties, where products
containing aloe vera are sold, Hermen-
ius says. Its use is subject to cultural
differences, she says, adding that Rus-
sians are big fans of aloe vera.
“People who choose products with
Aloe vera, like lotions and juices, often
choose other products that also contain
Aloe vera,” she says.
/A/<7B/@G>/21=<A7ABA of a
shell material made of a polyethylene
film and a surface layer with a cloth-
like plastic material made of thin fibers.
Between these are different kinds of ab-
sorbent materials – SCA uses cellulose-
based fluff pulp and superabsorbents.
Aloe vera is added to the outer material
in what is called a wet agent, which is
sprayed on after the fibers are spun. The
method of including an additive in the
manufacturing process is simple – the
greatest challenge is product safety.
“That means that the material we
release on the market must under no
condition create irritation, allergies or
problems for consumers,” Hermenius
says. “Just because it’s a natural sub-
stance doesn’t mean you can apply it any
old way to a product.”
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"A1/A6/>3I   K
 3C:4:/@AA=<
questions to
7<B63233> recession of 2009,
SCA Forest Products managed to
achieve a strong result and even stron-
ger cash flow. Ulf Larsson, president
of SCA Forest Products, talks about
expectations, challenges and strategies
for the coming year and beyond.
EVObeWZZbVSgSO` Z]]YZWYS-
The prospects for 2010 look reason-
ably healthy for pulp and solid wood
products, as suppliers have managed
to reduce output in balance with the
drop in demand. Publication paper
has considerable overcapacity, and
the direction of long-term trends is
uncertain after the significant drops
due to the recession. Growth is stron-
gest in Asia and South America, while
production capacity is located in Eu-
rope and North America.
EVObO`SbVSPWUUSabQVOZZS\USa
A1/4]`SabWaRSOZW\UeWbV-
Publication paper is the real challenge.
>6=B=(7AB=19>6=B=
C:4:/@AA=<
/53("&
:7D3A(Ac\RadOZZ
We have been successful in developing AeSRS\
sought-after products even in a weak 4/;7:8(EWTSO\RbV`SS
QVWZR`S\OUSa &
market, and this work will continue. O\R"
We will also continue the shift toward 9/@@7m@>nA1/(
more value-added products. &³>`SaWRS\bA1/
4]`Sab>`]RcQbaAeSRS\
EVObO`SbVSTcbc`Sab`ObSUWSa- ! &³>`SaWRS\b
In short term we will continue to work A1/BW[PS`AeSRS\
  ³>`SaWRS\b
with costs, productivity and cash
AQO\W\USBW[PS`AeSRS\
flow in all business units. Energy ''& ³AOe[WZZ
is a field where we will increase [O\OUS`;c\Yac\RA1/
strategic focus. The demand BW[PS`AeSRS\
for renewable energy is likely '' ''&³DO`W]caT]`
to increase, and incentives for a Sabac^S`dWa]`^]aWbW]\a
ObA1/AY]U>WbSyO\R
shift to renewable energy are ex-
A]ZZSTbSy
pected to remain in place or AeSRS\
expand further. We will
continue to develop the
management of SCA’s
forests in order to
increase the produc-
tion of biomass while
maintaining wood
production and bio-
diversity.
A1/Ob
bVSPWUUSab
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#
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b]PW]TcSZ
A1/E7::7<D3AB SEK 500 million in a new lime
^S`QS\b`SQgQZOPZS
kiln at the Östrand pulp mill in Timrå, Sweden. The in-
O\Rb`O\a^]`bSRÀOb`S
ÀSQbW\UDScdS1ZWQ_c]b¸a vestment will increase pulp production at the Östrand
Q][[Wb[S\bb]eO`RabVS plant by 10,000 tonnes a year and reduce its fossil-based
S\dW`]\[S\b CO2 emissions by 80 percent.
Ab{^VO\S0S`\SZOaO The new lime kiln, expected to be put into opera-
DScdS1ZWQ_c]b>]\aO`RW\ tion by the end of 2011, will use fuel pellets from
S\UW\SS`aOWRbVS^OQY
SCA’s BioNorr plant in Härnösand and will replace
OUW\UWaRSaWU\SRb]µW\
Q`SOaSDScdS1ZWQ_c]b¸a two existing oil-fi red lime kilns. The Östrand mill’s
^S`QS^bW]\OaOZcfc`g existing lime kilns consume about 17,000 cubic me-
^`]RcQbO\R`SW\T]`QSWba ters of oil a year. Replacing the oil with biofuel will
^]aWbW]\OaO\W\\]dObWdS lead to significant savings as well as lower chemical
QVO[^OU\SV]caS¶ and maintenance costs.

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Corporate
Knights
The Canadia n Magazin

…e for Respons ible

corpora teknigh
Business

ts .ca

IS THIS THE G
REENEST
O LY M P I C S E V
ER?
4 th annual Sustain
able Cities Rankin
g
8 th annual Responsible
Investing Guide
Yann Martel &
Ed Burtynsky
the art of sustain on
ability

volume . .

you might be missing
of every  issues  out
of corporate
knights. check
page  to fix this.

CK_cover_8.3_02.indd
1

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taboo
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4=@;/<G57@:Aand women in
Africa, buying feminine care products
is too expensive. A package of pads
can cost more than a day’s wages for
a family, and for a family with several
daughters the cost is generally pro-
hibitive. The taboo and fear of talk-
ing about menstruation also mean that
many girls don’t dare ask their parents
for help.
“Instead, they use rags, newspa-
pers and other materials they can get
hold of,” says Lena Ekroth, who works
with sexual and reproductive health
and rights at the Swedish development
agency Sida. “There are many stories of
girls who use old sackcloth, where the
blood dries, chafes them in their genital
area and can produce open sores. Infec-
tions in these areas due to poor hygiene
in connection with menstruation are a
major problem.”
Infections caused by poor hygiene
can also produce strong body odors
that are embarrassing for girls and can
cause them to be ostracized. Sometimes
the infections are misdiagnosed as sex-
ually transmitted diseases, leading to
discrimination against the girls.
Many girls stay home from school on
the days they have their period, because
of a lack of feminine care products or
an absence of toilets. Even if there are
!A1/A6/>3I   K
toilets, they often have no door or are
shared by boys and girls.
“That means that girls may not be
able to change their sanitary product
during the day and maintain hygiene,”
Ekroth says.
On average, a large percentage of
girls stay home from school four days a
month simply because of menstruation.
The girls fall behind in their education,
and many drop out before they have
even finished elementary school
According to Irmin Durand, com-
munications officer for the pan-African
A=CB63@<AC2/<
:SaabVO\^S`QS\b]TOZZUW`ZaQ][^ZSbSR
SZS[S\bO`gaQV]]ZW\ $
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A package of pads
can cost more
than a day’s wages
for a family.
organization FAWE, Forum for Afri-
can Women Educationalists, the main
reasons why girls stop going to school
too early are the absence of feminine
care products, the lack of toilets and
clean water and sexual harassment
from other students, teachers and
school staff.
“These factors vary by country,
within a country and by region and so-
cioeconomic conditions,” says Durand.

7<AC2/<57@:Aaresometimes
excluded from school when they have
their period since they are considered
unclean. Or take Zimbabwe. Just a few
years ago, the country was relatively
well off, and most women could af-
ford to buy feminine care products. But
troubles in recent years have resulted in
dire economic conditions in the country,
with up to 90 percent unemployment
and widespread poverty. When the sup-
port organization ACTSA, Action for
Southern Africa, asked women in Zim-
babwe what their greatest problem was,
their response was the lack of feminine
care products.
“This was a topic that no one had
talked about before,” says Tony Dykes,
director of ACTSA.
It turned out that the problem was
about two different things. One was

I   KA6/>3A1/ !
=CB:==9
that women got infections from the
newspapers and rags they used for femi-
nine care. The other was that women
lost their dignity when it became visible
that they bled.Since 2005, ACTSA has
distributed more than 6 million packag-
es of sanitary pads to women in Zimba-
bwe through the project Dignity! Period.
The lack of proper menstrual protec-
tion may perhaps seem to be a small
problem on a continent where maternal
mortality rates are the highest in the
world and where one out of five chil-
dren dies before the age of 5 in some
countries. But if the lack of feminine
care is one reason why girls stop going
to school too early, it is also an impor-
tant factor that affects the level of edu-
cation and economic development in
their countries.
! A1/A6/>3I   K
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31=<=;G

Profit doubles in fourth quarter

Profit was 98 percent higher than in the fourth quarter of 2008 and
28 percent better than full-year 2008. SCA once again gave the market
a positive surprise when year-end results were released. B3FB(5r@/<:7<2
B634/D=@/0:3B@3<2 for SCA period in 2008. Tissue operations in President and CEO Jan Johansson is
continued in the fourth quarter of particular contributed to the gain, with “cautiously optimistic” about 2010:
2009, and earnings improved faster profit increasing 56 percent as a result “Demand for packaging is expec-
than the market expected. Analysts of higher volumes and synergy effects as ted to strengthen, and in Europe there
calculated that SCA would have pre- well as lower raw material and energy are indications of market growth of
tax earnings of 2,114 million Swe- costs. Personal Care increased earnings 2–3 percent. However, several fac-
dish kronor, excluding non-recurring by 27 percent, due mainly to higher pri- tors point to a relatively weak start to
items. The figure is actually 2,280 ces and a better product mix. 2010.
million kronor, with SCA now having Packaging, which had a difficult
exceeded expectations for several 2009, nonetheless managed to in- =<B634=@3ABproducts side, we
quarters in a row. Earnings basically crease earnings by 37 percent in the have noted a weak market with lower
doubled compared to the fourth quar- last quarter, due in part to savings prices for publication papers, but a cau-
ter of 2008, when they were 1,150 from restructuring. tious recovery in the construction sec-
million kronor. tor, where the market balance for solid-
For full-year 2009, profit before tax 7BE/A/;7F32 picture in Forest wood products has now improved.
increased to 8 billion kronor compared Products. SCA's deliveries of magazine The market outlook for SCA’s hygiene
with 6.2 billion in 2008. At the same paper were stable, while newsprint de- categories appears stable for the most
time, net sales were largely unchanged creased. Prices of solid-wood product part, with continued favorable growth
at about 110 billion kronor. rose as a result of an improved market potential.”
Operating profit in the fourth quar- balance.Overall, operating profit in Fo- In conjunction with the report, it was
ter rose to 2,568 million kronor, an rest Products rose 28 percent during the announced that the proposed dividend be
increase of 40 percent over the same fourth quarter. raised to 3.70 kronor per share (3.50).

>@=47B7<1@3/A32 & !'=4>@=47B4@=;B7AAC3

>`]¿bPST]`SbOf;A39 =^S`ObW\U^`]¿b ';A39
10,000 4,000
3,946
2,342
9,327

3,500
8,000
8,237
2 342

3,235
8,090

8,078

8,004

3,000
1,946

6,967
1,703

6,833

2,500
6,585

6,000 2,503
6,237

2,000
Forest Products

4,000
Packaging

1,500

1,000
Personal

2,000
Tissue
433

500
Care

413
0 0
01

06

08
04

05

07

09
2

3
00

0
20

20

20
20

20

20

20
20

20
20

!"A1/A6/>3I   K
 TM

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Diversity is our Nature
Up to 70 % of all buying decisions are made at the Point of Sale. That’s why we bring your products
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Display l Packaging l Service

SCA Packaging Deutschland Stiftung & Co. KG

Display | Verpackung | Service
Bellingerstraße 7-9 2 D-36043 Fulda
Telefon +49 6 61 / 88 -2 17 2 Telefax +49 6 61 / 88 -2 25
scapackaging.de