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shape

A mAgAzine from sca on trends, mArkets And business nº 2 2009

colombia loves its


local shops
voices from the
shAreholder meeting
Blood and urine
Why different liquids require
different protection
three analysts talk

hurrayeveryday
for the
sca's strategy
smAll pAckAges
A green choice

Design guru
at home with four families

meet thomAs mAyerhoffer

thumbs up for sCa's report ★ green jobs with forest handling


Contents Nº 2 2009

Leonie and Robert live


with their three children in an
attractive old apartment
in Bonn. If they could make a
wish, they would like

6
their own Mary Poppins.

we do a spontaneous bop
in the kitchen to
old funk, that’s how

we spice
things up.
04 Shape up
16 Did you know that bacteria love the kitchen sink
and that sustainable forestry can generate 10 mil-
lion ”green jobs”? Read the Shape up pages.

06 Shape cover
Whether you live in Shanghai, Moscow, Pittsburgh
or Bonn – life is mostly about the everyday. Shape
talks to four ordinary families in different parts of
the world about their daily lives.

16 trend
Small packages are often better for the environ-
ment since they mean less wasted food.

20 profile
When designing high-tech products, Thomas
20 Meyerhoffer has earned his reputation by breaking
the norms. Now his tissue dispenser for SCA has
been recognized with several prestigeous awards.

23 technology
Why are there different products for incontinence
and sanitary protection? Shape untangles the dif-
ferences between blood and urine.

26 Sca inSide
Three analysts comment on the SCA strategy and
the future. Read also how SCA forests will end up
in Swedish households when the company seals a

30
deal with Ikea.

30 outlook
In Colombia, everyday life circles around local
shops called las tiendas. To get a piece of this att-
ractive market, SCA looks for a local partner.

34 economy
First quarter results were lower than for the same
23 period last year but still better than analysts had
forecast.

SCA Shape is a magazine from SCA, primarily geared toward share­ Publisher Bodil Eriksson Managing editor Anna Selberg
holders and analysts, but also for journalists, opinion leaders and oth­ Editorial Anna Selberg, SCA, and Göran Lind, Anna Gullers,
ers interested in SCA’s business and development. Shape is published Appelberg Design Tone Knibestöl, Appelberg
four times per year. The next issue is due in September 2009. Printer Sörmlands Grafiska AB, Katrineholm
Address SCA, Corporate Communications, Box 7827, 103 97 Cover photo ISTOCKPHOTO
Stockholm Telephone +46 8 788 5100 Fax +46 8 678 8130
SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only by
permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily
reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

[ 2 *2009] Shape SCA *3


shape up

E, weakened paper
Ea rs’ TIm
Oy n consumption 2008
In TW OrE Tha
m Overall paper consumption in Europe decreased by
more than 2 percent during 2008, when compared to
2007, according to preliminary statistics from the
European confederation of paper indutry, CEPI.
d
C O vErE Within the EU, industrial production and retail sales
lb E .
I WIl d grass hE
began declining in the first and second quarters of
g ha n 2008 and industrial and consumer confidence contin-
han sa mT
Of s ITh TrEE lans frO T In
ued to suffer throughout last year.
W sP En Paper and board production in Europe decreased
ITIOU gOvErnmEE-yEar

bacteria
b by 100 million tonnes, which represents a fall in the re-
a m l r IOn
lOCa InEsE ThPrOTECT
gion of around 4 percent over 2007. This is a reflection
h l of the weakening of the global econ-
ThE C nmEnTa lan. omy which caused down-time and
EnvI
r O O P
n
aCTI sOUrCE: Er.sE
closures in most parts of the in-
ET dustry over 2008 and partic-
nyh
n sCh ularly during the fi-
bra
nal months of
the year,
the CEPI
reports.

photo :IStoCkphoto
Sinks are hot spots for

Bacteria love sinks. Almost half of all American kitchen sinks


– 46 percent – harbor high levels of bacteria. The kitchen sink has
more germs than either the bathroom sink or the refrigerator door Fewer business
handle, according to a study from the Hygiene Council that was transactions in 2008
sponsored by Lysol. The bacteria found included E. coli, which can
The value of business transactions in the for-
cause urinary tract infections, pneumonia and diarrhea. estry, paper and packaging sector fell a full 23
It’s easy to forget to clean and disinfect the sink after washing percent to 21.3 billion dollars in 2008 compared
fruits and vegetables that might contain illness-causing bacteria, a to 2007. This was revealed in a new report from
precaution that can avoid cross-contamination of kitchen surfaces. PricewaterhouseCoopers, which also predicts that
The same study found that nearly 90 percent of kitchen cloths continued uncertainty in the financial markets, the
and sponges examined globally had high levels of disease-causing economic downturn and lower global demand will
result in a record-low level of transactions (merg-
bacteria. Even cloths and sponges that appeared to be clean or new ers and acquisitions) in 2009.
failed the test. Four-fifths of salmonella cases are acquired at home The largest deal last year was International Pa-
through cross-contamination, not in restaurants. per’s purchase of Weyerhaeuser’s packaging and
recycling production for 6 billion dollars.

TOTal valUE Of TransaCTIOns


WIThIn PaPEr- and PaCkagIng

2003 11,4
2004 18,5
2005 21,0
photo: IStoCkphoto

2006 25,7
2007 27,6
2008 21,3

0 6 12 18 24 30 Billion dollar

4*SCA shape [ 2 *2009]


Around 37,000 EU hospital
patients die each year from health-
care-acquired infections. up to
30 percent of these infections are
considered to be preventable

photo: AlexAnDer pIhl


by intensive hygiene and
control programs.
SourCe: europeAn CleAnIng JournAl; fIgureS from the europeAn Centre
for DISeASe preventIon AnD Control

SuStAinAblE
forESt mAnAgEmEnt
giving grEEn jobS
Investments in sustainable In several countries, includ-
forest management can mean ing the US and South Korea,
10 million new “green” jobs. investments in the forestry sec-
That’s the view of the UN’s tor are already included in their
Food and Agriculture Organi- economic stimulus packages.
zation (FAO). Planting and restoring forests
The world’s trees and forests are an important part of India’s
are important for absorbing rural job guarantee program.
carbon dioxide, and invest- More planted forests and
ments in sustainable forest better forest management
management are key to the task would also curb extensive de-
of mitigating climate change. forestation, which is a problem
“Investments in sustainable in many parts of the world.
forest management could be a That would reduce carbon
way to create millions of green dioxide emissions and poten-
jobs and as a result both reduce tially have a greater positive
poverty and improve the envi- impact on climate change than
photo: IStoCkphoto

ronment,” says Jan Heino, as- any initiative proposed or con-


sistant general-director of the sidered so far by world leaders,
FAO’s Forestry Department. the FAO says.

[ 2 *2009] SHAPE SCA *5


SHAPE covEr

mEdiAn HouSEHold incomE PEr montH:


RMB 2333 (about US$ 342)
AvErAgE numbEr of cHildrEn: 1.6
lifE ExPEctAncy: 73 years
AvErAgE AgE At wHicH cHildrEn StoP uSing
diAPErS: 2-3 years (many use “open crotch pants)
wHo tAkES cArE of tHE cHildrEn: parents &
grandparents
rEStAurAnt viSitS/PErSon/montH: 6 visit/
week (downtown residents)
HAvE A dAily nEwSPAPEr: 7% (but a newspaper
can circulate around many people)
ProPortion of PAPEr rEcyclEd: About 35%
cHinA (2006), increasing
AvErAgE kilogrAmS of toilEt PAPEr uSEd

Long live
PEr PErSon/yEAr: 1.6 kilogram
moSt common cAr brAnd: Volkswagen Jetta
Yue, Lin and Yue look forward to the HAvE comPutErS At HomE: 10-15%
weekends when they go together to one of
Shanghai’s parks to play and relax.
clEAn At lEASt two timES A wEEk: 64%
bEliEvE conSidErAtion for tHE EnvironmEnt
iS imPortAnt/ExtrEmEly imPortAnt: 56%

EvErydAy lifE!
HouSEHold incomE PEr montH: $5,863
AvErAgE numbEr of cHildrEn: 2.1
lifE ExPEctAncy: 77 years
AvErAgE AgE At wHicH cHildrEn StoP
uSing diAPErS: 3 –4 years
wHo tAkES cArE of tHE cHildrEn: 52%
by parents or other family members, 38%
day care facility
rEStAurAnt viSitS/PErSon/montH:
0.9 visits
HAvE A dAily nEwSPAPEr: 41%
ProPortion of PAPEr rEcyclEd: 55%
moSt common cAr brAnd: Ford uSA
HAvE comPutErS At HomE: 75%
clEAn At lEASt two timES A wEEk:
46%
bEliEvE conSidErAtion for tHE En- The Smails in Pittsburgh, US, let the concerns about
vironmEnt iS imPortAnt/ExtrEmEly climate change and consumption reflect in their
lifestyle.
imPortAnt: 37%

6*SCA SHAPE [ 2 *2009]


MEdiAn HouSEHold incoME PEr MontH:
15 280 rubel/month (about US$ 472)
AvErAgE nuMbEr of cHildrEn: 1.41
lifE ExPEctAncy: 67.5
AvErAgE AgE At wHicH cHildrEn StoP
uSing diAPErS: 1.5-3.5 years
wHo tAkES cArE of tHE cHildrEn: 95%
mothers
rEStAurAnt viSitS/PErSon/MontH: 52%
of Russians go to the restaurant once a month
or less
HAvE A dAily nEwSPAPEr: 18%
AvErAgE kilogrAMS of toilEt PAPEr
ruSSiA uSEd PEr PErSon/yEAr: 1.7kg
MoSt coMMon cAr brAnd: Russian VAZ
(LADA brand)
HAvE coMPutErS At HoME: 11%
The Perovas in Moscow spend their savings on clEAn At lEASt two tiMES A wEEk: 45%
holidays abroad. bEliEvE conSidErAtion for tHE En-
vironMEnt iS iMPortAnt/ExtrEMEly
iMPortAnt: 17%

I dag besväras var tionde person av inkontinens.


Regardless of where in the world we live, we all have one thing in common: everyday life. For human
Och i takt med att allt fler människor lever längre kommer
beings, just dealing with the day-to-day is where the action is. So in a nod to the importance of our
antalet öka. Det finns flera effektiva behandlingar
not-so-ordinary daily lives, Shape met with four families to see how they deal with the commonplace:
Who picks up the kids? How is the garbage handled? Where do they shop for food? And how do they
och hjälpmedel – men trots det är det fortfarande
add spice to their lives? Maybe with a spontaneous dance in the kitchen…
många som inte söker hjälp.
MEdiAn HouSEHold incoME/MontH: ap-
prox. 2,916 euro (about US$ 3,966)
AvErAgE nuMbEr of cHildrEn: 1.37
lifE ExPEctAncy: 77.5
AvErAgE AgE At wHicH cHildrEn StoP
uSing diAPErS: 3 years
wHo tAkES cArE of tHE cHildrEn: mostly
the mothers
rEStAurAnt viSitS/PErSon/yEAr: Not
regularly/from time to time
HAvE A dAily nEwSPAPEr: 61%
ProPortion of PAPEr rEcyclEd: 44%
AvErAgE kilogrAMS of toilEt PAPEr uSEd gErMAny
PEr PErSon/yEAr: 10 kg
MoSt coMMon MAkE of cAr: Volkswagen
HAvE coMPutErS At HoME: 2/3 of population
clEAn At lEASt two tiMES A wEEk: 36% The Hellemanns in Bonn, don’t have much
spare time, but know how to spice up an ordi-
bEliEvE conSidErAtion for tHE Environ-
nary Tuesday night.
MEnt iS iMPortAnt/ExtrEMEly iMPortAnt:
35%

[ 2 *2009] SHAPE SCA *7


germany

shape cover

The Hellemanns
Health, and a little
bit of sustainability
text: michael lawton PHoto: thomas müller

i t’s cake baking time in the


roomy old kitchen in the
stylish old apartment of the
Hellemann family in Bonn,
Germany. Greta, 5, is cutting up ap-
ples; Lotta, 3, is plastering the sides of
a baking tin with lots of butter; and
Fanny, 1, is sitting on the big kitchen
ing everything else needed for apple
cake. But today is a bit special: Rob-
ert, 42, has a rare day off, so he’s home
for a change. He’s carefully blowing
eggs out of their shells, so that the
shells can be used for the kindergar-
ten’s Easter celebrations.
“I usually leave home at 7 and don’t
much of the housework or the cooking,”
Robert says.
Leonie adds, “But we have a rule that
whoever cooks doesn’t clean up the
kitchen, so Robert does that.”
“We’re typically German in that
way,” he says. “The man is responsible
for the trash and the cellar.” “And we
table. Their mother Leonie, 37, is do- get back until 6:30 or 9:30, so I don’t see produce a lot of rubbish,” Leonie says.

8*SCA shape [ 2 *2009]


“We drown in packaging.” That’s be- children’s label (“Goldspatz by Mizipa-
cause they buy so much through online prika” – “Golden Sparrow by Pussy-Pep-
(“almost everything except groceries per”) that she started with a friend.
– I would feel amputated without my “The advantage of that is that you can
wireless LAN,” Leonie says) and also talk while knitting,” says Robert.
because they go supermarket shopping Otherwise they don’t have much
once a week. spare time. They watch very little tel-
“When I was younger I would sit evision, just the news or an occasional
around on a Saturday morning and read
the paper, then go out to the market and
documentary. Leonie describes her lei-
sure activities as “cooking, eating, read- We’re not typical
buy things at leisure,” Leonie says. “But
now that I have three children, I go to an
ing and doing as little as possible.” They
get a newspaper at the weekend and a
Germans, neither
organic supermarket and get everything
at once.”
weekly news magazine. in our jobs nor our
“I often do the shopping on a Satur-
day evening,” Robert says.
The heLLemanns see themselves
as a bit like the LOHAS demographic
lifestyle.
“Unless I’ve already done it on Friday (Lifestyles of Health and Sustainabil-
morning, when I’m being a good house- ity), but “more on the health than the
wife,” Leonie adds quickly. sustainability,” Robert says. Leonie
does yoga and they eat well, but they
Leonie cooks her meaLs from leave the computer turned on and they
scratch – you won’t find ready-made don’t like the light given off by energy-
dishes in her kitchen. There’s meat only saving bulbs.
about twice a month, fish more often, but “We’re not typical Germans, neither
mostly it’s a rather Mediterranean diet in our jobs nor our lifestyle,” Leonie
based on vegetables. says. “Perhaps we’re typical of a certain
“Tomatoes, zucchini, pasta and risotto kind of German family, with university
are staples throughout the year,” Leonie degrees and two careers, living in a styl-
says. “But because we buy organic, the ish old building.”
rest tends to be regional and seasonal.”
THE HEllEmAnnS
The children eat what the adults eat, PArEnTS: Leonie, 37; Robert, 42
although she’s finding that since the CHildrEn: Greta, 5; Lotta, 3;
older two go to kindergarten they are Fanny, 1
getting fussier. “So sometimes we have livE: In an apartment in a grand
spinach with fish fingers or some other old townhouse in Bonn, Germany.
typical children’s food,” she says. Work: Robert is a cardiologist,
Cooking is obviously important in the Leonie is an advertising copywriter.
Hellemann household, and the children HoW do you SPiCE uP your
EvErdAy lifE?
are well trained. “Greta has cooked on
her own for all of us,” Leonie says. “She - With a spontaneous bop in the
kitchen to old funk (the children
made salad and scrambled eggs, and she
look a bit puzzled, but they join in)
was very proud.”
WHAT Would fACiliTATE your
Both parents are busy people. Rob- EvErydAy lifE THE moST?
ert works long days as a cardiologist in
- Mary Poppins – um, no, a kitchen
private practice. While Leonie is in her roll from which you could tear off a
sixth year of maternity leave from her job sheet with one hand - either that or
as an advertising copywriter, the family eight extra hours a week, which you
and the household are still a full-time oc- could add to any day you needed
cupation. But she recently started knit- them.
ting clothes and soft toys for a luxury

[ 2 *2009] SHAPE SCA *9


china

shape cover

Yue, Lin and Yue where they plan to live for the next
several years.

Recycling with
Many affluent urban Chinese fami-
lies employ an ayi, or domestic helper,
to look after their child (because of Chi-

garbage collectors
na’s family policy, most couples have
only one child), cook their meals and
clean the house. But Yue and Lin han-
dle the domestic chores themselves.
text: jan hökerberg PHoto: gao erqiang “My wife cooks on the weekdays and
I normally cook at the weekends,” Yue
says. “She also does most of the shop-
Yue Jiahao spends his days driving the have a 9-year old son, Ziyan, who at- ping, but occasionally I also do that.”
streets of Shanghai as a chauffeur for a tends third grade in primary school. When Lin buys meat she usually
Japanese company. Lin, who works as a secretary in the city, goes to the supermarket. “But for veg-
“I’ve been driving cars for a living for a takes Ziyan to school in the mornings etables and fruits I definitely prefer the
long time, so I’ve seen a lot of changes in and picks him up in the afternoons. traditional markets, since they have
the city,” he says. For one thing, there are a Like many other urban middle-class more fresh items,” she says.
lot more cars on the road. In 1999 Shang- Chinese, the couple have bought their Yue and Lin are not fond of ready-
hai had only some 20,000 private cars. own apartment, in a central location made food and prefer to cook their
By 2007 that number had grown to more near the busy Huaihai Road. own meals from scratch.
than half a million. “We decided to get some extra in-
Living standards of both urban and come by renting it out since there is big The Chinese goveRnmenT pro-
rural households in China continue to demand in Shanghai for rentals, es- motes recycling, but the country so far
rise, but there is still a big disparity be- pecially from expatriates working for lacks a sophisticated system for col-
tween the cities and the countryside. foreign companies,” Yue says. They lecting household garbage.
Yue is married to Lin Xiuyu and they moved into a less expensive rented flat “We try to separate glass, plastic
bottles and cardboard from the other
garbage, and then our son sells them to
different garbage collectors,” Yue says.
The Yue family members are happy
with their lives, and they all look for-
ward to weekends when both parents
are off work.
“I drive the family to one of Shang-
hai’s parks where we can relax and have
fun together,” Yue says.

The Yue familY


husband: Yue Jiahao, 53,
chauffeur.
Wife: Lin Xiuyu, 39, secretary.
son: Yue Ziyan, 9.
live: in Shanghai’s
Luwan District.
WhaT Would improve or
faciliTaTe our everYdaY life:
Nothing in particular.
small joYs in life: Weekends in
the park with the family.

10*SCA shape [ 2 *2009]


neu

www.tempo-toilettenpapier.de

Jetzt gibt es Tempo auch


als Toilettenpapier.
Advertisement for the brand Tempo says that it is available as toilet paper at last.
usa

shape cover

The Smails
Health crisis
changed lifestyle
w hen Howard Smail
was diagnosed with
an inner ear problem
that affected his bal-
ance, he could no longer work or drive.
As with many families, the health crisis
forced the Smails of Pittsburgh to make
dramatic changes in their lifestyle.
text: geof becker PHoto: gene j puskar
Even as Howard, 66, his wife Connie,
49, and their 13-year-old son Matt ad-
justed to Howard’s disability, they saw
the changes in a broader context, a re-
sponse to concerns about climate change
and consumption and a welcome return
to more traditional values.
“My parents grew up in the Depres-
sion, and my mom reused everything,”
says Connie, a communications and
media consultant. “It’s not that she was
cheap – she’d just say ‘waste not, want
not.’ I’m finding myself doing the same
thing now.”

Her family HaS become champion


recyclers. Instead of throwing away plas-
tic food storage bags, Connie washes and
reuses them. Rather than buying wicker
baskets for shelves, she decorated card-
board boxes in old gift-wrapping paper.
“Our son gets so much paper from
school announcements, I now rip up all
that paper into little sheets and use them
for shopping and reminder lists. I’ll nev-
er buy paper again, and there’s a lot less
paper in my garbage,” Connie says.

PittSburgH , a city of about 300,000,


makes recycling easy. Residents mix
glass, metals and plastics together in one
blue plastic bag and recycle most paper
in another, including advertising slicks
and old phone books. They place the
bags at the curb for twice-monthly pick-
up. Residents can also use containers if
they wish. The Smails don’t compost,
but Pittsburgh offers free classes for resi-
dents who want to get started.
Howard’s disability presents chal-

12*SCA shape [ 2 *2009]


My parents grew up
in the Depression, and
my mom reused
everything. It’s not
that she was cheap THE SmAilS
– she’d just say ‘waste mom: Connie Smail, 49, communi-

not, want not. cations/media consultant


DAD: Howard Smail, 66, retired
CHilD: Matt, 13, student
lenges for an active family, especially and the nation to reduce unnecessary livE: Live in Pittsburgh, home
with a 13-year-old who plays soccer, consumption. to about 300,000 people in the
basketball and volleyball, but friends Yet the Subaru-driving mom still southwestern part of Pennsylvania
and family help out, picking up Matt af- sees things that bemuse her. in the US Midwest.
ter practice several days a week. At the “I was watching this guy in a gas- How Do you SPiCE uP your
same time, Howard helps at home with guzzling SUV the other day, and he EvEry DAy lifE?
chores and cooking. In fact, preparing had this huge box of doughnuts on When we spent more for recreation
food has become a family focus. the dashboard and I’m in my little car and leisure, our definition of ”spic-
ing things up” involved dinners,
Meals start with carefully planned drinking a cup of tea I brought from
movies, and sports activities - play-
shopping. Connie stops at several stores, home. And I thought, ‘I’m really liv- ing golf, bowling, for example, or
several times a week, guided by coupons ing a different life from him.’” going to professional games
and specials, and making substitutions Now, we’ve come to enjoy family
for cost and diet. Howard is diabetic nights at home where we make it an
and she watches fat intake. They cook ”event” to all sit in the same room
(we never used to) and watch the
together Sunday nights, preparing meals same funny movie or TV show. We
for the entire week. treat it like going out to the movies,
“We’re always trying out new things, where we popcorn, and have special
but you have to make tradeoffs with the treats. We laugh lots and laugh hard.
economy being so tight. Do I use tomato Also, because we’re more often at
paste or tomato sauce? One may be more home and in each other’s company,
situational humor comes into play.
cost-effective because it has more spices. These moments are hard to describe
It’s like planning a project at work. I go and are only funny to us. But we’ve
to several stores to be economical, but I really come to relish these moments
also plan each trip so I don’t throw away that truly spice up our lives!
money on gasoline.” wHAT woulD fACiliTATE your
EvEry DAy lifE THE moST?
The SmailS have cut back on vacations Two things would make our every
while increasing at-home activities like day life easier: if Howard’s medi-
their meals, as well as reading, walks and cal problem would improve so that
he could regain his driving and his
backyard basketball. Matt plays video
ability to work. These two factors
games. For entertainment and news they would greatly reduce Connie’s
watch TV, surf the Web and read the local stress, by freeing her up from all
newspapers. Connie believes her family’s the driving and errands that are es-
decision to live smarter and more simply sential to maintain family life.
reflects broader trends in her community

[ 2 *2009] SHAPE SCA *13


russia

shape cover

try to eat dinner together every night.”


In Russia there is no recycling system
for either paper or glass. Nor is tap wa-
ter considered safe to drink, so the fam-
ily buys five-liter containers of water.
When asked about what environmental
considerations affect their purchases,
they mention the importance of buy-
ing healthy products. “I try to buy fruits
and vegetables that come from Russia,
things without toxins,” Jelena says.

The family is not very interested in


the news. “We never watch TV,” Petr
says. “Even though we have two TV
sets, we actually have no antenna. And I
don’t like printed newspapers. Subscrib-
ing to newspapers by mail isn’t popular

The Didenko-Perova family


in Russia, and for logistical reasons it’s
not possible for me to buy newspapers.
They’re usually sold in subway stations,

“We put our money


and I drive to work. At my job I read a few
news websites online.”
They spend most of their free time at

into foreign travel”


home, but they like to be outdoors. Petr
snowboards and Jelena does fire dancing.
On their vacations they travel abroad,
three or four times a year if possible.

w
text: DaviD isaksson PHoto: alexey myakishev
“Moscow is pretty horrible in the sum-
mer because it’s so warm,” says Jelena.
“We travel a lot more than Russians do
hen Jelena Perova a week from home and a babysitter comes in general. And we speak English – that’s
welcomes us, her hus-hus to help take care of the boy. Petr works for not very common in Russia.”
band Petr and their Microsoft and travels a lot in his job.
two-year-old son Ale-Ale Jelena offers us tea and cookies in the
down
ksandr are still playing in the yard down- kitchenan explains that she’s in charge the DiDenko-
stairs. The Didenko-Perova family live of buying food for the family and clean- perova family
on the seventh floor in a newly renovated ing the house, she says. “It’s not that father: Petr Didenko,
three-room apartment in south Moscow. we’re trying to maintain traditional gen- computer expert, 32
There’s a huge flat-screen display in the der roles, but because I’m home, it’s eas- mother: Jelena Perova,
living room, and the bookshelves hold ier for me to be in charge of the house,” psychologist, 26
DVDs as well as books in both English she says. Looking to Petr she adds, “If I chilD: Aleksandr Perov, 2
and Russian. went to work every day you would prob- live: In a two-room apartment in
“I originally come from a town that’s ably do more, wouldn’t you”? south Moscow, Russia
20 minutes from here by car”, says Je- small joys in life: “We like to
lena. “Well, nowadays, it’s 40 minutes She ShoPS for food about twice a take walks and go to the movies. We
away because traffic has gotten worse”. week at a large grocery store. “Some- also like staying at home and watch-
The fact that it now takes twice as long times I go to one of the local stores and ing a movie together.”
to get to Jelena’s hometown says some- buy something little. Every now and What WoulD make everyDay
thing about the enormous development then I go to the market. But I would life easier: “We’re really happy
with our lives. It wouldn’t make life
that has taken place in Russia, and espe- rather shop as little as possible.” easier, but if we could wish for any-
cially Moscow, in the last few years. She almost never buys processed thing, it would be for better air and
Jelena is a psychologist. She stays home food. “No, I would rather cook myself, less traffic in Moscow.”
with Aleksandr, but she works three days even if it’s usually something simple. We

14*SCA shape [ 2 *2009]


White
has never been so

SCA Containerboard has devoted significant time and resources to successfully


addressing the technical challenges of white top liner production. New manufacturing
technologies, sophisticated monitoring and long experience combine to maintain
high quality. The result is products demonstrating high perfomance, superb runability
and excellent printing results. The world-class surface smoothness and cleaner sheets
of SCA Presentation Liners are the key to packaging with attractive brightness
and brilliant colours.

SCA White Top Kraftliner - SCA White Top Testliner


s c a c o n t a in e r bo a r d.co m
trend

Small packagesmean
less wasted food
Wrapping and packaging have long been viewed as environmental bad guys,
or at best necessary evils. But there’s a growing realization that the right kind
of packaging can help reduce a product’s impact on the environment and
increase food availability in poorer countries.
TexT: Sven lindell phoTo: getty imAgeS

e
very day, food worth The value of wasted food in the EU is designed for an era when the norm for a
millions of dollars is about EUR 10 billion (USD 13 billion) household was four people. But house-
thrown away, most of a year. “With packaging that’s properly holds today consist of fewer people than
it unnecessarily. In in- dimensioned, this waste can be signifi- before. Single-person and two-person
dustrialized countries, cantly reduced,” says Ole Jørgen Hans- households have increased considerably
up to half of all food sen, director of the Norwegian research in recent years.
produced is thrown away because of im- institute Östfoldforskning. “So food waste can be reduced by
proper handling or because the “sell-by” One cause of waste may be that pro- adjusting the size of the packaging to
date has expired, regardless of whether ducers use packaging that’s too big. modern households,” Hanssen says.
the food is bad or not. Of all the fruit and Consumers don’t manage to eat up the “Then there’s a greater chance that
vegetables transported in the EU, almost contents before the food goes bad. Part- the food will be eaten up by the best-
10 percent go to waste. ly it’s a case of package sizes that were before date.”

16*SCA SHAPe [ 2 *2009]


“It’s also a question of developing
more efficient packaging that keeps
food longer and allows the food to hold
up better in transit,” Hanssen says.
In some poorer countries, up to half of
all food is destroyed because of problems
with logistics and packaging systems.

TODAy ThE PACkAgINg industry


understands that it can contribute to a
more sustainable society by developing
products and services that solve many
of the problems of wasted food.
Norway and Sweden are at the cut-
ting edge of this development, Hanssen
observes. “Now it’s a matter of passing
Food waste can be
on this understanding,” he says.
That’s because the man in the street
reduced by adjusting the
as well as politicians still have the idea
that packaging is an environmental
size of the packaging to
threat, rather than a tool for reducing
waste and achieving a more sustain-
modern households. Then
able society. Surveys also show that there’s a greater chance that
people generally believe that small
packages are worse for the environ- the food will be eaten up by
ment and that packaging itself is the
biggest problem. the best-before date.
“But the fact is that packaging rep- Ole Jørgen HAnSSen, vd ÖStfOldfOrSkning
resents only one-tenth of the impact
on the environment if you consider the
product and the packaging as a whole,” AdjuStmEnt A bEnEfit
Hanssen says. A much bigger threat
stems from actual food production, SCA Packaging is developing and velop more efficient packaging. Its
manufacturing specially designed Innovation Center in Brussels is con-
which generates vastly greater CO2
packaging, made mainly of cor- tinually developing the next genera-
emissions than packaging. rugated board. Its customers are tion of packaging and applications.
producers in almost every indus- Also within other business ar-
hANSSEN IS lEADINg a project that try, from domestic appliances to eas there’s a continous search for
will show how optimal packaging so- vegetables. SCA Packaging employs smart and efficiant packaging.
lutions can help reduce emissions that some 23,000 people in more than One recent example is SCA’s
300 locations in about 30 countries. brand for incontinence protection,
affect the climate. “Good documenta-
“Our success is based in large part TENA, which recently introduced
tion is also needed in order to change on our always being ready to adjust more efficient packaging for
people’s views on this,” he says. production to what the market several of its products. The new
Among other things, the project has requires and what customers need,” packaging holds more protection
studied the effects of giving a product says Magnus Renman, head of R&D than previously, and less material
new packaging, in terms of material and Innovation at SCA Packaging. is used in producing the carton.
Packaging entails complex pro- Among the other benefits, less
and design as well as size. duction operations, with thousands shipping is needed, thus reduc-
As an example, Hanssen cites a of unique tools, each adapted to ing emissions from airplanes
producer that changed the packaging the individual customer’s specific and trucks. The new packaging
for its cheese, cutting the number of product. “We can develop new tools also means that inventories will
pallets needed for shipping by two- very quickly if a customer wants require less space and there will
thirds. “Basically, it’s often a ques- a new shape or look,” he says. be less garbage. Overall, the
SCA Packaging is also making impact on the climate will be
tion of simply economizing, adjusting great progress in its research to de- reduced with every product.
packaging to prevailing conditions in
society,” he says.

[ 2 *2009] SHAPE SCA *17


trend

FrAntic
building
in egyPt
In Egypt, a baby is born every 20 seconds. The country’s 85
million inhabitants are crying for new housing, and foreign SwediSH wood
investment is growing rapidly. “Egypt is the economic engine in tHe deSert
of the entire region,” says Cherif Sayed at the Swedish
in 2009, SCa Timber plans to sell
Trade Council’s office in Cairo. 72,000 cubic meters of solid wood
text: mAtS wigArdt PHoto: iStock ocH mAtS wigArdt products to egypt. The construc-
tion boom has made the country
an important market for Swedish
wood products.
The road from Cairo Cairo to Al- region. The number of inhabitants is es- many new residences are being
exandria is lined with gigantic billboards timated at 85 million or more in an area built, and the demand for timber
for doors and windows is high. in
advertising new housing complexes. only slightly more than twice the size of
a short period, imports of Swedish
Heavy trucks rumble past in a steady Sweden. The people are young – one- timber have risen several times to
stream. Along one side of the road is third of them are under age 15, and 43 800,000 cubic meters a year, and
the fertile green of the Nile Valley, on percent are between 15 and 39. they are forecast to reach a million
the other the edge of the desert. Egypt’s “Egypt is flourishing,” Sayed says. cubic meters soon.
economy is on the rise. A number of “When there is growing turbulence else- The sales organization Uni4 mar-
keting aB, jointly owned by SCa,
factors are contributing to the growth where in the Middle East, money is in-
has been an established player
– greater political stability, lower taxes, vested in Egypt.” in the timber products market in
simplified customs regulations, trade The building sector may be flourish- North africa and the middle east
agreements with the EU and a well-edu- ing the most. Poor people are getting new for many years.
cated, English-speaking labor force. housing, the young and well-educated The basic idea is to sell large
The global financial crisis has not are receiving housing subsidies, and the volumes of lower-grade wood
products in countries where
affected Egypt the same way as other country’s well-to-do middle class is mov-
producers don’t have their own
countries. “Obviously, there are signs of ing out of downtown Cairo to three en- representatives.
the crisis, and the stock market is fall- tirely new neighborhoods. Jöran ekberg at Uni4 sees egypt
ing,” says Cherif Sayed, the head of the New hotels and restaurants are be- as an important market where
Swedish Trade Council’s office in Cairo. ing developed. Egypt aims to double the Swedish sawmills have an outlet for
“But the banking structure looks differ- number of tourists in the country, and fo- bulk goods and Vi grade timber.
“But egyptian buyers demand
ent in Egypt. People here don’t borrow reign investment is rising rapidly. “Egypt
good products of all types,” Jör-
for consumption to the same extent as has become a beachhead for trade with gen ekberg stresses.
in the West.” North Africa and the Middle East as well
Egypt has the largest population in the as southern Europe,” Sayed says.

18*SCA SHAPe [ 2 *2009]


SHAREHOldERS’
mEEting witH
ExHibit On
SUStAinAbility
almosT 400 SCA shareholders attend-
ed SCA’s annual general meeting, which
was held April 2 in a warm and sunny
Stockholm. While waiting for the meet-
ing to begin, those in attendance could
expand their knowledge by viewing an
exhibit on SCA’s sustainability goals and
its work with ecological landscape plans
for good forest management and the
protection of nature. In his speech, Jan
Johansson, president and CEO, summed
up SCA’s operations in 2008 and empha-
sized the Group's focus in the short and
medium term: strengthening cash flow
and capital efficiency as well as increasing
the rate of innovation.

FOUR qUEStiOnS tO anders källman, FrIda Hall, 26, lidingö,


73, nynäshamn. with her daughter moa strömgren,
FivE SHAREHOldERS 1. Because I wanted to 9 months.
1. Why did you come to the annual meet Jan Johansson. 1. Because I’ve never been to a share-
General meeting? 2. I bought them holders’ meeting before and because
2. When did you buy your shares? through an investors’ my dad wanted to see us.
3. are you worried about the financial club in 1969 and be- 2. It was rather recently, but we’ve had
crisis and how sCa will manage? cause I worked in the sCa shares in our family for a long time.
4. What’s your view of sCa? forest industry. 3. no, it’s stable because sCa makes
3. not really – sCa will no doubt man- products that everyone always needs.
Åke Janson, 74, age. But it’s important to manage the 4. It’s a good company that makes
Falkenberg. forests well. essential products that people can
1. Because my wife 4.I think sCa is a decent company. always use.
and I own shares in a
number of companies
that have their share- olle söderquIsT, marIanne
holders’ meetings now, 80, Hedemora. nordsTrand 60,
apart from sCa, like 1. I’m interested in sCa sundbyberg.
electrolux and Investor, and because and also have a daugh- 1. I’m interested in
our daughter, who lives here in stock- ter in sollentuna that what is said here and
holm, can babysit our little puppy my wife and I can visit try to go every year.
while we attend the meetings. at the same time. 2. It was sometime in
2. Ten or 15 years ago. 2. I bought them the 1980s.
3. no. around 10 years ago because I’ve 3. Yes. When I hear that things will get
4. I’ve had the pleasure of visiting the owned forests myself and have an worse and worse, I get worried. after
diaper factory in Falkenberg and I’ve interest in forest companies. all, the world affects sCa as well.
rarely, if ever, met so many positive 3. not about sCa, but more generally, 4. It’s a good company.
people, from the factory floor to the of course I’m worried. sCa has certain
top management. I was also really disadvantages given that all its forest
impressed by their perfect safety holdings are way up north and require
procedures, which is something that’s long transportation routes.
attracted a lot of attention in sweden 4. I know sCa as a company that’s
these days, you know, given the scan- close to forests, which is good. I’m
dal with the glass found in the chicken. pretty unfamiliar with the rest.

[ 2 *2009] SHAPE SCA *19


ProfilE

Breaking
Swedish-born designer Thomas Meyerhoffer made his name by challenging
convention in the high-tech world. Now he’s bringing his unique vision to
everything from surfboards to paper dispensers.
text: AlEtA WAtSon photo: WWW.mEyErHoffEr.com

From his studio high above the the Art Center College of Design in evolution.”
California coast on a sunny spring Pasadena, California. Unlike most Straight out of college, the de-
day, Thomas Meyerhoffer gazes out industrial designers, he never want- signer worked at Porsche in Germany
over a wide expanse of Pacific Ocean, ed to specialize. Since graduating in then moved on to work for IDEO, a
the luminous blue stretching unbro- 1991, he has made his name creating San Francisco design firm, before
ken to the horizon. an impressive range of new products joining Apple in 1994. That’s where
The view is stunning, but the small for iconic brands such as Apple, Nike he hit the big time as the designer of
home office is hardly what one would and Sony Ericsson. the colorful, translucent eMate, a
expect of a high-powered designer “I don’t see myself as many other groundbreaking portable computer
with a roster of big-name clients and designers do,” Meyerhoffer says. “All intended for the school market. It be-
a string of honors, including most re- they do is talk about design and go to came a forerunner of the iMac.
cently a 2009 International Forum design conferences and look at design
Design (iF) award for a line of tissue magazines and so forth. I never look the hallmarks of a typical Mey-
dispensers he created for SCA. There at design in magazines. I find inspira- erhoffer design were all there in the
are no stylish suites filled with expen- tion elsewhere.” eMate – an organic sculptural shape,
sive furniture here, no larger-than- He’s more interested in how people attractive yet functional details and
life photos of past projects lining the use and experience the objects he cre- an appeal to the user’s emotions. Its
walls, no swarm of hip associates at ates than whether the products mesh unusual clamshell housing and bright
Meyerhoffer’s beck and call. with any academic theory. “I’m not color made the computer feel more
Then again, the Stockholm native subscribing to any style of design,” he like a toy than a business tool. Still,
is no ordinary designer. He broke the says. “I don’t belong to a school at all. there was serious attention to issues
mold long ago when he studied both On the contrary, I think the things such as the way the integrated handle
transportation and product design at most inspiring to me are nature and fit into a child’s hand.

20*SCA SHAPE [ 2 *2009]


the mold
“It really was the computer that
broke out of the beige boxes,” the de-
signer says. “It was the first organic,
soft-shaped, translucent computer.”
In 1998, with the Apple triumph
and a collection of important design
awards on his resume, Meyerhoffer
launched his own firm in Montara,
a quiet little beach town 25 minutes
south of San Francisco. “I wanted to
design more things than just comput-
ers,” he says. “Obviously I respect
Apple design – by far they’re the best
out there. But I thought life was more
than that.”
Since then he has designed eve-
rything from computers and cell
phones to snowboard bindings and
surfboards. He divides his projects
between large international firms
and small Silicon Valley startups.
“I like to work with technology
startups because obviously most of
these companies are open to doing
something different,” he says. That
freedom to try new things led him to
design the first cell phone with a piv-
oting top for Danger and a soft rub-
ber Wi-Fi computer for Chumby.

[ 2 *2009] SHAPE SCA *21


ProfilE

I still appreciate the approach of


Silicon Valley. There are very few
rules of what you should wear, how
you should behave.
Meyerhoffer travels all over the world Upstairs is the studio overlooking the
for his projects, but he feels an affinity sea. Downstairs are offices for the three
for Northern California. “I still appre- associates who work at the house.
ciate the approach of Silicon Valley of Although the house reflects a Scandi-
innovation, of creativity, of individuals navian sensibility, Meyerhoffer says he
– that there are very few rules of what doesn’t really miss living in his native
you should wear, how you should be- Sweden, although he visits frequently.
have,” he says. “I love that you can go
down the street and you don’t really at the same time, Meyerhoffer
know where people belong. The guy in says he was honored to design the new
jeans and flip-flops could be a billionaire range of Tork dispensers for Sweden’s
company founder. That doesn’t matter. SCA. He spent two years developing the Elevation – the paper dispenser that has
What matters is that people are trying 17 paper dispensers destined for public already won prestigous awards.

to create things which they’re interested restrooms all over the world. “I think
in, their passion.” it’s amazing in working with them that
Montara is ideal as far as the designer they’ve taken so much care to create this
is concerned. It’s near enough to Silicon well-designed product and to support
Valley and an international airport for that and invest in it,” he says. “They are
him to get to client meetings readily. Yet aware that this is the only connection
it’s close to nature and the big waves he they have with the user.”
loves to surf. In March 2009 the dispensers’ elegant
shapes and precise functionality earned
CompaCt and lean, with a shaved them an iF award at Europe’s biggest
head and piercing blue eyes, the 44-year- industrial design competition in Hanno- Chubby and soft – even though
it’s a computer.
old Meyerhoffer spends much of his ver, Germany. The Elevation dispenser
free time riding waves up and down the also received a Red Dot product design
Northern California coast. His most re- award in Essen, Germany, in April.
cent project, a revolutionary hourglass- Despite the strong dispenser design it
shaped surfboard, grew out of his pas- is unobtrusive and timeless. “You don’t
sion for the sport. It may be his most want the product to stand out,” he
personal design. says. “You want to do what you
His search for a ride combining re- need to do in a restroom, and of
sponsiveness, speed and glide led to the course you look for the paper. And
colorful experimental surfboards dis- when you look for the paper, you in-
played at the Cooper-Hewitt National tuitively have a nice experience.”
Design Museum’s Triennial in 2006. “It was interesting to connect back
From them emerged a range of commer- to Scandinavia and bring these quali-
cial models, dubbed the Modern Meyer- ties – the longevity of the form, the
hoffer, scheduled for introduction in the strength in the form and the simplicity
US in May 2009. of the form – into the product of a Scan-
The designer lives, works and raises dinavian company,” he says. “But it was
his 8-year-old son Dylan in the most brought in in a way that it works all over
modern home in Montara, all sharp the world, and it’s a universal language Emate – as appetizing as a toy.
angles, bare wood, concrete and glass. and a universal product.”

22*SCA SHAPE [ 2 *2009]


TECHNOLOGY

BOdY fLuidS
pose a challenge
TO ENGiNEErS
Different body fluids require different absorption
materials. Blood contains blood cells and proteins, while
urine holds various salts, which explains why sanitary
protection and incontinence products are so different.
text: HENrik EmiLSON illuStrAtion: LEif ÅBjörNSSON

i f all body fluids consisted sim-


ply of water, life would be easy for
manufacturers of diapers, sanitary
pantyliners and incontinence pro-
tection pads. A single gram of superab-
sorbent polymer can easily take in up
to a kilo (one quart) of pure water. But
to work quickly.” He contrasts this flow
with menstrual blood, where it is com-
mon to have 50 ml of fluid for an entire
period of five days.
“It gives a little perspective, from per-
second to per-period,” he says. “There’s
a major difference in speed and a major
fluids like blood and urine contain many difference in requirements.”
other substances. This puts demands on Along with absorption capacity,
manufacturers because the same absorb- other criteria such as spreading quali-
ent material cannot be used effectively ties must also be considered. As much of
for different kinds of body fluids. the product as possible should be used
Eje Österdahl, a scientist at SCA Hy- so that no single area is soaked through.
giene Products in Gothenburg, Sweden, Retention qualities are also assessed, as
knows where and how superabsorbent it is important for the liquid to remain
polymer works best. When an absorp- in the material even if it is subjected to
tion product is developed, certain re- pressure, such as when a person wearing
quirements must be met to deliver on the product sits down.
consumer need.
“The speed at which the material ab- In the old days – before 1986 –
sorbs liquid is important, especially for fiber-based fluff pulp was used for both
urine products and especially for light blood and urine. But 1986 saw the ar-
incontinence,” Österdahl says. “Those rival of superabsorbent polymer, which
products must take in a lot of liquid very allowed a liquid to bind chemically with
quickly. When an incontinent women small plastic granules of polyacrylate.
loses control of her bladder, there may The technology is based on osmosis,
be up to 50 ml of urine a second in the a process in which differences in salt
worst-case scenario, so the material has concentration work to even themselves

[ 2 *2009] SHAPE SCA *23


TECHNOLOGY

Tough demands on protections

One second!
Urine
During the ‘70s fiber-
With urine leakage, based fluff pulp was
50 ml a big amount of fluid used in the urinal
can be released in a protections (as well as
second... for menstruation).
The protection Superabsorbents arrive
easily leaked. on the scene, and fluid
is enclosed in plastic
granules...

...while the same


amount menstrual
1970s
flow is divided over 1980s
50 ml several days.

Menstrual Despite superabsorbents,


flow menstrual protection
still leaks. Albumin
The fiber-based fluff proteins form a dense
pulp was used in the layer on the surface.
The spreading qua- menstrual protection
lity is important. As (as well as for urinal
much of the product protection) during the
as possible should ‘70s . The protection
be used so that no leaked.
single area is soaked
through.

out. Liquid flows into the particles to higher the concentration, the more the together and formed a dense membrane
even out the concentration difference superabsorbent is affected,” he says. that meant no more liquid could pass
between the inside and outside, and the “If someone drank three beers, his/her through to the granules in the lower lay-
particles swell up. It’s the same thing urine would be watered down and eas- ers. By adding more cross-linking agent
that happens when you salt a slice of raw ier to take care of than if she/he hadn’t to the molecules, the capacity of the su-
eggplant – the liquid from the vegetable drunk so much liquid.” perabsorbent was reduced. Each granule
is forced out because it tries to even out absorbed less liquid, but the granules
the difference in salt content. Salts in the urine affect the ab- underneath were not blocked.
“In 1986 everyone thought superab- sorption capacity of the superabsorb- “We basically sacrificed capacity to
sorbents were a great invention, but it ent, which in principle can be reduced gain better function,” Österdahl says.
was soon apparent that they didn’t work by half. Because salt content varies from “The technology was then further re-
as well on urine as they did on pure wa- person to person and from day to day, fined by having loose cross-linking in
ter,” Osterdahl says. The reason for this it was a question of finding a balance in the nucleus of the granules but tighter
is that urine contains much more than the product that worked for everyone all cross-linking on the surface. Then the
just water – including many ions like Na+, the time. When superabsorbents were nucleus could expand well without the
K+, NH 4+, Ca2+, Mg2+, Cl-, PO43-, first introduced, a problem known as gel granules sticking to one another.”
SO42- depending somewhat on the in- blocking developed. The molecules were As a result of research and advances,
dividuals and what they’ve consumed. loosely cross-linked then, and as a result superabsorbents work well for urine.
Then there is less difference between in- they could swell up further. Certainly, But what about menstrual blood? In
side and outside the superabsorbent, so this was effective and good, but the gran- the beginning, Österdahl and his col-
the driving force will be weaker. “The ules swelled up so much that they stuck leagues thought the problem with su-

24*SCA SHAPE [ 2 *2009]


Gel blocking

Many buy
sanitary napkins
for other
...but the granules swell so much
that they stick together and More agents known as cross-linkers were reasons besides
menstruation.
the liquid cannot reach the gran- added. Each granule absorbs less fluid but
ules underneath. Protection doesn’t block the granules underneath.
still leaked. The protection stays dry.

mAny nicknAmES...
1990s 2000s
along with diapers, sca pro-
duces menstrual protection and
At the end of the ’90s a new Now a new solution consisting incontinence protection in many
fluff pulp structure – Efficapt of cellulose fiber with a small countries.
– with good absorption is quantity of superabsorbents,
introduced. which lock in moisture and menstrual protection
prevent odor. LibResse
(northern and eastern europe)
sanitary napkins and pantyliners
in every market. tampons in selec-
ted markets.
bodyfoRm
(Great britain)
Abumin
sanitary napkins and pantyliners.
protein
Efficapt nana
(france)
sanitary napkins and pantyliners.
nuvenia
perabsorbents absorbing blood was another solution has been developed that (italy)
due to blood platelets and blood cells. is based on cellulose fibers but includes a sanitary napkins and pantyliners.
These simply did not want to penetrate small quantity of superabsorbent. Even nosotRas
the material. Because of the fine pores though superabsorbent polymer does (Latin america)
of the superabsorbent material, func- not work as well with menstrual blood, sanitary napkins, tampons and
tion deteriorated even further. Today it still serves a function. “Even if we rec- pantyliners.
they know that the problem is due to ommend the right product for the right saba
the protein albumin, which coats the thing, many buy sanitary napkins for (mexico and central america)
sanitary napkins and pantyliners.
surface with a tight layer so that not other reasons besides menstruation, such
LibRa
even water can penetrate. “That’s why as light incontinence,” Österdahl says.
(australasia)
superabsorbents aren’t very good at ab- “So there’s a reason for having superab- market leader in menstrual protec-
sorbing menstrual flow,” he says. “Ob- sorbents in the material. A superabsorb- tion in australasia. Libra is sold
viously, there’s not just blood in the ent also helps keep odor down, because as sanitary napkins, tampons and
menstrual flow – there are other body the liquid that enters a superabsorbent pantyliners.
fluids as well – but it’s these proteins becomes locked in and is not as readily incontinence protection
above all that make it difficult for us.” available for the process that produces tena
odor. The superabsorbent also absorbs available in more than 90 coun-
tries. incontinence protection for
Recent yeaRs have seen the use of moisture from the air and makes the
men and women. the product
a special fluff pulp that is very good at product less sweaty to wear.” range also includes skincare prod-
absorbing blood. The material, called But how much easier it would have been ucts and washing liquids.
Efficapt, was introduced in 1997. Now if all body fluids were pure water.

[ 2 *2009] SHAPE SCA *25


sca inside

The analysts:
focus on casH flow
Is SCA investing enough in its hygiene operations? How serious are the problems in
Packaging? Shape has brought together analysts Andreas Lundberg (Handelsbanken),
Celine Pannuti (JP Morgan) and Mikael Jåfs (Cheuvreux) to discuss SCA’s strategy
and long-term growth opportunities.
text: göran lind, Petra lodén

How well has SCA handled the ad- also fallen significantly – like with because it’s in the banks’ hands. But
justment to weaker demand? everyone else in the industry. the trick is to determine when to shift
Andreas Lundberg: The company gears, when to invest in growth.
has admittedly done a bit but I think Is it the right tactic to focus on im-
that, like almost everyone else, proving cash flow and being more SCA’s aim is to increase its share of
they’ve misjudged the severity of the careful with investments, even in hygiene operations. Is this change-
fall. Because demand has dropped new markets? over going quickly enough?
so quickly, it’s been really difficult to AL:Given how weak cash flow has AL:Well, you always hope for more,
make adjustments in time. been for a while and what the finan- given how wonderfully those opera-
Celine Pannuti: SCA has been adjust- cial situation looks like, measures tions are doing, but we think things
ing to the down turn in demand for a are needed to increase cash flow. But are going along at a pretty good pace.
long time by cutting capacity - espe- there should still be some investment, CP: The company’s evolution to be
cially within packaging, but also forest so the question is to not make cuts more focused on hygiene could go
products, which is good. The severity too quickly. faster.This could be achieved either
we now see in the economy makes it CP: Focusing on cash flow and cash organically or through M&A. Dis-
very difficult for SCA to have an im- management is definitely the right posing of non-core businesses could
pact on its own, as the whole industry thing to do – right now even more also help.
needs to cut and adjust to the situation. than ever. Investments in new mar- MJ: The investment in expanded
Mikael Jåfs:SCA’s structure, with kets, especially in developing coun- hygiene operations is right. Of
its large share of consumer prod- tries, where hygiene products have a course, many investors want SCA
ucts, has meant the company has potential, should however continue. to only invest in its hygiene opera-
weathered the financial downturn These are less cyclical categories and tions, but the reason the company
relatively well and hasn’t been af- it seems wiser to cut in other markets has survived the economic fluctua-
fected as much as other companies. or other divisions. tions so well is precisely this mix of
But 30 percent of sales come from MJ:In the current market situation, different operations, those sensitive
packaging, and things have gone SCA has no other choice than to focus to changes in the economy and those
just as badly there as they have for on improving cash flow. The question that are less so. However, the con-
others. In pulp, solid wood products of financing is difficult right now, so glomerate structure of the company
and publication papers, demand has investments will probably be put off is not very popular with investors

26*SCA sHaPe [ 2 *2009]


because it generally means less of to fluctuations in the economy have markets. SCA has a good presence in
an ability to keep up with the stock the most to gain from a rebound. Eastern Europe but the company has to
market when it takes off. CP: The markets are expecting that improve its exposure to Asia.
second half of 2009 we will see a MJ:The growth of the middle class in a
How serious is the situation in recovery on a very depressed base. I number of developing countries means
packaging operations? Is SCA do- think there will be a weak recovery growth potential for SCA’s hygiene
ing enough to reduce capacity? and lots of ups and downs for some operations. Especially in markets where
AL:Sure, some cuts have been made time and a weak demand in 2010. SCA is able to operate well, where there
as part of their share, but obviously If demand goes up the most cyclical isn’t too much corruption.
it’s tough when there’s such a sharp divisions will benefit first, packaging,
drop in demand. But we think there paper and forest too. Greatest challenge in the long term?
are still things the company can do in MJ:Most analysts and that includes AL:At the end of the day the most
terms of its own costs. me have no idea when demand will important one is to get the return
CP: The situation for packaging is very rebound. Maybe the second half of on capital to a more decent level, ie
serious; it has been serious for two 2009. We’re keeping our eyes open substantially higher than the cost of
to three years. Increasing costs and for signs of change, like in pulp prices capital. There are several roads to go
overcapacity has held back returns and or other industry indicators. So far but in the long run it’s probably best
now demand is under pressure as well. nothing’s been seen. to sell some of the underperforming
The industry is under intense pres- business areas. It’s not easy selling
sure to adjust the capacity but yet the SCA’s long-term growth potential parts of packaging at the moment but
question is what will be the shape of is mainly in its hygiene operations, we think it’s positive that the company
growth when demand will return? through the development of a mid- see to the costs within this segment.
MJ: The situation for packaging op- dle class in the emerging econo- CP: The conglomerate structure
erations is pretty serious. I wouldn’t mies. What’s your view on this? doesn’t make sense to me and is hinder-
be surprised if they generate a big loss AL:There’s still a lot to be done in a ing long term prospects. I think there
in 2009. There’s overcapacity in the number of today’s emerging markets, is a lot of value creation potential
industry and SCA can’t do much right like China, India, Russia, Mexico should SCA focus its investments and
now. They’re stuck, and it’s not the and a few others. Brazil is also an resources in developing countries and
time to sell right now. interesting market for the future, par- in the categories of tissue and personal
ticularly in hygiene products. care. When good times come back they
When could there be a turn upward CP: SCAs competitors such as should take the opportunity to re-shape
in demand, and which parts of SCA Procter & Gamble and Kimberly- their portfolio and look at divesting
can benefit first? Clark have been in the emerging packaging and newspaper.
AL:We think there will be a slight markets for a long time, SCA was a MJ: The greatest challenge for SCA
improvement at the end of 2009, and bit late to the game in that respect. is in getting rid of its conglomerate
obviously those parts that are sensitive SCA has to continue to invest in these rebate.

ClEArEr rEPorting witH gri


For the first time, SCA has compiled PricewaterhouseCoopers. a number of new
its sustainability report using GRI, “Sustainability sometimes comes core indicators
the Global Reporting Initiative, the across as a little fuzzy, and GRI is a for social perfor-
most frequently used standard for tool to make reporting more relia- mance, among
sustainability reporting in the world. ble, consistent and comparable,” says other things.”
GRI has developed global guidelines Marita Sander, project manager for SCA’s website
for how companies should report SCA’s sustainability report. “Greater www.sca.com
on everything that falls under the transparency is in line with our sustai- has a GRI index
concept of sustainable development. nability policy.” showing the
SCA’s sustainability report for 2008 Adjusting to the new requirements different indi-
was prepared using GRI’s A+ Level of was relatively easy. “We had most of cators in more
reporting, which has been verified by the data available, but we compiled detail.

[ 2 *2009] SHAPE SCA *27


ScA on tHE
EtHicAl liSt – AgAin!
For the second year in a row, SCA
has been named one of the world’s
100 most ethical companies. The
Ethisphere Institute in New York
has ranked the companies that are
the best in their industry, out of
10,000 companies examined. The
Ethisphere Institute works with is-
sues related to corporate gover-
nance, business ethics, corporate
social responsibility, anti-corrup-
tion and sustainability.

Disco chocolate
wins design contest
The innovative chocolate package Natacha Lesty, a French student at
Disco Choco took home the gold the École Internationale de Design,
medal when SCA held its first packa- won first prize. Along with the
ging design contest, called Design prize of 3,000 euros, she was also
Challenge. The aim was to develop invited to do an internship at SCA
a packaging concept for chocolates Packaging’s Innovation Center in ProtEction
sold in stores. The packaging was Brussels. for All PAntiES

environment
to be innovative but also had to take Miriam Liébana Yeste won the Libresse Hipster was recently
into account trends, industrial res- consumer-oriented prize with packa- launched in the European mar-
trictions and environmental aspects. ging that doubles as a note pad. ket. It’s a super-thin pantylin-
er shaped to fit hipster or box-
er panties.
“Different types of under-
ScA moving into wear require different types of
pantyliners, so we’ve developed
Libresse Hipster,” says Stefan
Eggermont, trade marketing di-
friEndly building rector retail, SCA Personal Care
Europe.
SCA is moving its headquarters next April to the new Waterfront Building The consum-
in downtown Stockholm. Waterfront, which will be completed in 2010, is be- ers who test-
ing built with the latest environmental technology. ed the new
“Waterfront meets a number of requirements for the environmentally pantyliner have
friendly workplace of the future, which together with cost considerations been positive;
has been important in our decision,” says Gordana Landén, SCA’s senior vice 96 percent
president of human resources. thought there
The building is expected to be twice as energy-efficient as the EU’s Green was a great
Building Standard. Smart solutions move energy between the different ar- need for the
eas of the building. Among other features, heat in the glass facades will be product and
converted into warm water that is distributed to cooler parts of the building. 80 percent
Cooling will be produced using water from Lake Klara, the canal that runs said they liked
through central Stockholm. Inside the building, a reservoir of 250 tons of it.
water freezes at night and is then used to cool the premises during the day.

28*SCA SHAPE [ 2 *2009]


sca inside

a tiger by tHe tail


Classical Japanese tattoos featuring
the tiger as a common motif provide the
inspiration for SCA’sthe new Libero spring
collection diapers. Five patterns will adorn
millions of diapered bottoms this spring.
Illustrator Yuko Shimizu, creator of the
“Tiger Collection,” says the biggest chal-
lenge in designing diapers was breaking
away from traditional diaper patterns to
create something new.
Shimizu grew up in Japan and has lived
and worked as an illustrator in New York
since 1999.
Today she works for New York Times,
Time and Rolling Stone magazine and has
produced illustrations for MTV.

New box
sca timber
becomes iKea
sHelves
Preserves birdlife
SCA’s forests become timber
for IKEA’s Gorm shelving units
when the furniture retailer or-
SCA Packaging in Hungary has time, ornithologists meet to mark ders a million of its solid-wood
developed the Hirundo box, a new the birds in order to study their lives. standbys each year.
solution to protect birdlife. At the Marking has to be done at night be- Roughly 45,000 cubic me-
end of the summer, swallows – in- cause the birds hunt in the daytime. ters of pine timber will be
cluding the barn swallow Hirundo But the birds cannot be released needed each year for produc-
rustica, which gave its name to the before dawn because they can then tion. The bulk of this comes
box – gather in flocks before their fall victim to night predators. So the from the Bollsta sawmill in
long journey to Africa. At the same swallows have to stay overnight in Sweden. TräTeam, SCA’s part-
the ring-marking station. ner in Kramfors, Sweden, is in-
Up to 40 swallows can be housed vesting some USD 4 million in
in a Hirundo box during the night. production equipment, and
The box has a number of features 10 employees will work in two
like holes for perching sticks, prac- shifts to keep the shelf produc-
tical locks and a large removable tion operations running.
roof with a hatch cover that allows The shelves will be sold in
the birds to be released quickly. The the Nordic region, Germa-
Hirundo box has been used by many ny and the Benelux countries,
organizations, including BirdLife with deliveries beginning in
Hungary, the Pilis Nature Conserva- less than a year.
tion Organization in Hungary and
the Budapest Zoo.

[ 2 *2009] sHaPe SCA *29


outlook

The good
neighbor
In Colombia, the center of community
life and commerce is the network of
some 450,000 small family-owned
retail shops. Hundreds of thousands of
people make their living from these
neighborhood institutions.
TexT: JuAn CAmilo mAldonAdo tovAr
And WilliAm CAigEr–SmitH
PHoTo: diAnA SánCHEz

The magic formula is to have a


30*SCA SHAPE [ 2 *2009]
Nora works from Monday
to Sunday, and she is the soul of
her neighborhood.

every time someone walks into Nora Garce’s According to Colombia’s National Merchants
tienda in Bogotá, a little bell rings at the top of Federation, known as Fenalco, the country has
the door. Another customer has come to see their some 450,000 family-owned stores, known as
neighbor, or vecina, who runs the shop. tiendas. Each shop on average supports a family
“Vecina, do you have a quarter of cheese?” of four to five people.
“Vecina, can I have a single cigarette? Fenalco estimates there are around 22 types of
“Vecina, how much does it cost to make a mo- tiendas, ranging from small bakeries to diverse mini
bile phone call?” markets. They provide neighbors with “the basic
Nora, whose small family-owned store is sit- goods of the consumer basket,” says Lino Franco,
uated in the Colombian capital’s La Soledad coordinator of the small stores division at Fenalco.
neighborhood, is the ultimate vecina. Everyone Franco has spent the past eight years working
knows her name. They rely on her if they sud- with these small entrepreneurs, doing research
denly need to buy on credit, and she’s always and helping them become more professional.
there, from 7 am to 10 pm, seven days a week, That’s how he has come to discover that, for in-
to offer everything from a nail to a single dia- stance, four-fifths of all dairy products and three-
per. “That’s the magic formula,” Nora says as quarters of the beer are sold through tiendas.
she attends to the stream of customers who keep “Nowadays, with the crisis looming, their im-
the bell ringing. “You’ve got to have a variety of portance has increased,” Franco says. “Consum-
products in very small sizes.” ers have returned to the tiendas.”
In a small garage in a two-story house in a poor
neighborhood in southern Bogotá, Don Hern-
ando, in his 50s, keeps a varied inventory from
fruits and vegetables to snacks, medicines and ba-
sic goods.

Don HernanDo’s sales have been down in


recent months. He stays afloat, however, because
his neighbors need him. As with many other small
stores, Don Hernando sells his products in tiny
amounts, to suit the tight financial capacity of his
customers. If they can’t afford a liter of oil, they
can buy half a liter or even a smaller bottle. “Con-
sumers can sometimes bring their own contain-
ers and buy as much oil as they can afford without
having to pay for the bottle,” Franco says.

variety of products in very small sizes.


This system, known in Colombia as menudeo,

[ 2*2009] SHAPE SCA *31


outlook

is one reason small tiendas can survive shoulder


to shoulder with giant supermarkets. Don Her-
nando sells small amounts of butter, enough to
make one dinner, for a couple of cents. He will
open a chocolate bar and sell it by the piece, since
people can’t afford or don’t want all of it.
Every shop owner understands the magic of
menudeo. “People go to the supermarket and
buy all their goods every other week,” Nora says.
“But if they run out of something, there’s always
the tienda to get them out of trouble.”
Another significant difference between large
supermarkets and small shops, especially in the
current economic climate, is the owner’s ability
to sell to their neighbors on credit, called fiar in
Spanish. Nora laughingly calls it the “book of
forgetfulness.”
“The success of these shops is based on the
fact that there is a close personal relationship be-
tween the owner and the client,” says César Fer-
rari, a microeconomics professor at the Javeri-
ana University in Bogotá. “This relationship Agustina Buitrago works in La Candelaria. For decades she has
owned a small tienda.
allows the owner to offer ways of financing their
customers in a way that does not exist in big
stores. This is even attractive for the owner, who
reduces the amount of cash that he has on a cer-
tain day, increasing his security.”

Crisis or not, one fact remains: the tienda is


a functional center of neighborhood life. Nora re-
ceives dozens of house keys from around the block,
which she keeps until someone else comes to pick
them up. Owners typically help their customers by
passing on messages and receiving mail.
Franco once met an owner who spoke five lan-
guages and helped his customers with linguis-
tic matters, from college homework to work
projects. Fenalco says 8 percent of shop owners
have university degrees.
Don Hernando recognizes the role that his
store plays on his block. “People here bring their
keys, their stories, their problems,” he says. “We
have become an emotional advising center.”
“I love the business,” Nora says. “I love having
contact with people.” While she says this, neigh-
bor after neighbor walks in for a small packet of Don Hernando competes with 40 other small tiendas in his neighborhood.
deodorant, an aspirin tablet or a free dose of lo-
cal gossip. “Economically we don’t have much,”

Economically we
she says. “But we have a quiet life.”

32*SCA SHAPE [ 2 *2009]


Local focus
key to Latin
America
Small “mom and pop” shops are the
heart of the Latin American retail mar-
ket, doing more business than big su-
permarkets. For SCA, the region’s dis-
tribution system is challenging.
In a market vastly different from
those where it started, SCA has built
up a solid and ethical business pres-
ence in Latin America with the help
of joint venture partners such as Co-
lombia’s Familia. Using a strategy that
reaches out to traditional marketing
practices, SCA and its partners man-
age a complicated distribution system
that focuses on the family-run tien-
das, or “mom and pop” shops spread
across the continent, a vital compo-
nent of the Latin American economy.
The tiendas are part of the fabric of SCA in Latin America
South American life. Found in neigh-
borhoods of small towns and large cit- Did you know that…
ies, they are often modest one-room SCA has been working in
shops that serve the daily needs of Latin America since 1980 when
people living close by. Most custom- it launched the SABA brand
ers shop from day to day, often buying through a joint venture company
one or two diapers or a single roll of in Mexico.
bath tissue – just enough to get them SCA operates in Mexico, Central
through until tomorrow. This particu- Gilberto and Gloria Montaña America, the Dominican Republic,
lar element of the Latin American mar- are tienda owners in the Puerto Rico, Colombia, Venezuela,
traditional neighborhood of Ecuador, Peru, Bolivia and Chile,
ket is at once a challenge and an op-
La Candelaria in Bogotá. and also exports into Argentina,
portunity for SCA.
“Altogether these small shops rep- Brazil, Paraguay, Cuba and a
resent a larger portion of the mar- number of Caribbean islands.
ket than the large supermarkets, so The usefulness of this cultural knowl- SCA employs about 5,500
it is a big business opportunity,” says edge goes further. “It’s very important people in Latin America.
Jan Schiavone, president of SCA that we understand the consumers and SCA has 13 plants in Latin
South America. “But to succeed here then bring the right type of products to America.
you have to invest in the distribution, the market,” Schiavone says. Building SCA distributes to all major
which is obviously more challenging.” trusted and recognized brands is vital in Latin American retailers and
For a company with a European Latin America, especially among poor- more than 2 million small shops.
base, it is difficult to know the nuanc- er people who tend to choose their lo- The main products that SCA
es of a new market. “That’s where the cal tienda over a supermarket. “These distributes in Latin America are
joint venture company comes in,” Sch- people have very limited resourc- personal care products(baby
iavone says. “The joint venture part- es. They can’t risk trying cheaper, less diapers, feminine hygiene, in-
ner brings the knowledge about local well-known products, so they stick with continence care and wet wipes)
politics, financial systems and distri- the high-quality, consistent brands. and tissue products (toilet and
bution that we marry to SCA’s exper- They can’t take a chance on something kitchen rolls, napkins, hankies,
tise in manufacturing, marketing and they’re not sure about, because they wipes and facial tissues).

don’t have much. But we have a quiet life.


technology.” can’t afford to make mistakes.”

[ 2 *2009] SHAPE SCA *33


EcONOMy

Market gives thumbs up


The stock market gave SCA good grades when it presented its first-quarter
report on April 27. Net profit for the period, SEK 1,119 million, was lower
than a year earlier but better than analysts had forecast.
Despite a bleak economy, SCA’s re- year ago. However, a large part of the in- major problems, however. Profitability
port for the first quarter contained good crease was due to a weaker exchange rate has fallen even further as a result of lower
news on a number of fronts. Tissue op- for the Swedish krona. Operating profit volumes and price pressure, and operat-
erations, which account for 36 percent fell 6 percent to SEK 704 million, partly ing profit fell 87 percent to SEK 81 mil-
of SCA’s sales, posted a 58 percent rise because of higher raw material costs. lion. Testliner prices, for instance, have
in operating profit to SEK 864 million. Forest Products did better than the dropped by more than 35 percent from
Higher prices, lower raw material costs market had expected, despite a sharply a year ago. In response, SCA is carrying
and a better product mix were behind deteriorating economy and higher costs out an extensive savings program.
the increase. Another contributing factor for raw materials and energy. Price in- “Eleven corrugated board plants will
was the positive impact of earnings from creases in publication papers limited the be closed, and several others will be
Procter & Gamble’s European tissue op- decline in operating profit to 11 percent, streamlined,” Johansson said. “This
erations, which were acquired in 2007. at SEK 583 million. means a reduction of about 2,200 in the
Personal Care operations also pro- number of employees.”
vided a lot to be happy about. Sales in “We believe that our hygiene oper- The program is expected to provide
SCA’s emerging markets, particularly ations have prospects for favorable con- SEK 1,070 million of savings, with full
Latin America and Southeast Asia, rose tinued growth and that Forest Products effect starting from the second quarter
22 percent, and price increases were im- will have stable development,” President of 2010. This year, however, will see
plemented in a number of markets. In and CEO Jan Johansson said in connec- a charge to income of SEK 1,7oo million
all, Personal Care reported sales of SEK tion with the report. for the measures in the Packaging divi-
6,476 million, a rise of 16 percent from a The cyclical Packaging operations face sion.

NEt SAlES iNcrEASEd OPErAtiNg PrOfit iMPrOvEd PrOfit cOM-


by 3 PErcENt dOwN 14 PErcENt PArEd tO lASt quArtEr
Share of sales, Q1. Share of operating profit, Q1. Profit before tax, MSEK.
2,500
2,342

Forest 2,000
2,019
2,013

Products
1,946

Forest
15%
Products
1,703

Personal Care
26% 1,500
23% Personal Care
1,438
1,438

32%
1,150

Packaging 1,000
26% Packaging
4%
Tissue 500
36% Tissue
38%
0
8
07

8
3/ 8
07
3/ 7

9
2/ 8

0
0

0
0
0

0
0

0
20
20

20
20
20

20
/2

/2
2/

1/

1/
4

4
Q

Q
Q

Q
Q

34*SCA SHAPE [ 2 *2009]


SC A Products AB For sman & B odenfor s

www.libero.se
TIGER COLLECTION 2009
Hjälper
Kan man hitta
besparingar förpackningen
utan at t göra till att
avkall marknadsföra
på kvalitén? produkten?

Är det möjligt att


d e t att
minska lagret Går l a in-
n k
av förpackningar före ingen?
n
utan att betala mer? pack

Breda krav ger bättre


Är den enkel förpackningsekonomi
att öppna,
packa upp Förpackningen är en del av din produkt.
Alltså måste du bredda kraven på din för-
och göra sig packningsleverantör. På SCA Packaging är
av med? vi mogna för nya frågor. Välkommen att
ställa oss mot väggen.

Ad in Swedish, encouraging customers to increase


www.scapackaging.se their requirements on their packaging supplier.

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