People & Packaging

packaging updates from Smurfit Kappa

no. 4 - 2009

Designing for optimal image New easy opening solution for Henkel Supporting a major brand - Toshiba

contents

People & Packaging

packaging updates from Smurt Kappa
no. 4 - 2009

Contents
Designing for optimal image New easy opening solution for Henkel Supporting a major brand - Toshiba

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Sharing in the benefits gained by international experience Designing for optimal image New easy opening solution for Henkel Packaging machine solutions to meet customers changing requirements Beyond Boxes Supporting a major brand - Toshiba Sustainable packaging for a sustainable supply chain The Mars Quality Award Global print & innovation award goes to Smurfit Kappa Our Pan European sales approach

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Sharing in the benefits gained by international experience

Welcome to this edition of People & Packaging, which comes at a time when the focus is very much on both improving the wellbeing of the global economy and improving the stability of the global climate. It is also a time when there is much discussion of the merits and responsibilities of large scale international businesses.

As the worlds leading paper-based packaging business, Smurfit Kappa Group is seeking to bring both commercial success and environmental progress from its widespread international operations. As usual, therefore, in this issue you will find specific examples of successful packaging solutions developed by working closely in partnership with customers. We never assume, just because in many markets we are clearly the biggest in our chosen field, that size in itself is a good reason for customers to buy our products and services. Instead, we proactively seek to use our local presence and our international size to our customers advantage by networking and adapting the best production methods, the best business systems and above all the best possible packaging design solutions. In this issue, for example, you will read about the thoroughness with which we have researched the subject of placing perforations in corrugated boxes - a minute detail that can impact so much on performance! Roberto Villaquiran CEO Corrugated Division It is by careful attention to all the various details involved in effective packaging development that we seek to achieve long-term successful relationships with our customers, bringing mutual growth and prosperity. I hope we shall share in such success with you in 2010.

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Designing for optimal image

Such a small matter - placing perforations in a corrugated pack might seem an insignificant subject on which to concentrate scientific development attention. Yet these little cuts can make a tremendous difference to the performance of packaging in the supply chain.

The demand for regular corrugated boxes which convert into display trays has become very strong. So Smurfit Kappa used its know-how and customized development tools to thoroughly evaluate the subject of perforations. Three aspects were identified as key 1) tacking strength. A perforated box should survive the S supply chain without collapsing. Perforations weaken a box. An increase in material properties may be required to compensate for the loss of stacking strength but this should be minimized for reasons of cost. 2) asy Opening. In the retail outlet the perforation E should be easy to find, easy to grab and easy to open by the retailers employees, so as to minimize time. A 3) ppearance. After opening, the box appearance should be as near to pristine as possible, so as to display products attractively.

1. Minimize the reduction of stacking strength

Perforating the load-bearing walls of a box will reduce its stacking strength. The key challenge, therefore, is to keep the wall as intact as possible, whilst maintaining the maximum product facing.

basic
stacking strength of a box.

advanced

Minimizing the cutting of load bearing flutes will strongly improve the

During transportation and storage boxes are subject to pressure when loaded on pallets, which are then stacked. Stresses are especially high close to the corners of boxes

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(the red zones in the picture below) and it is usually better to avoid weakening a box in these places.

Furthermore, a straight perforation line may buckle under stress (like a hinge) and open prematurely during transportation. A curved perforation line will not buckle; it will resist premature opening and will improve stacking strength.

basic

advanced

basic

advanced

Curved perforation lines do not open prematurely and improve stacking strength.

The lay-out of the perforation line is much more likely to basic advanced affect the stacking strength than the type of perforation selected. Optimizing a perforation lay-out may strongly improve the stacking strength of a box.

Avoiding the stressed zones strongly improves stacking strength.

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2. Make a perforation easy to open

Shop employees are used to opening regular slotted containers. If a different opening system is not intuitive to handle, they may open the shelf ready pack in the wrong way. The perforation, therefore, should be very easy to find. olour differences between the removable and C the remaining parts of the pack should be used whenever possible. ictograms explaining opening systems are usually P better than text. They should be placed on the part that is to be removed. he perforation may be printed for emphasis on the T part that is to be removed. hop employees should be easily able to achieve a grip S in order to open the box quickly. The hand hole should be large and visible and whenever possible should not be blocked by the content of the box. The perforation should open in the correct way. To guide the tearing process a weak point should be created by means of a cut. To avoid tearing at other places, a large radius is required.

3. Optimize the box appearance after opening

Perforations may contribute something of a negative image when they are wrongly designed and lead to unsightly tearing of the corrugated board.

Bad appearance caused by tearing in the wrong direction.

This can be improved by ensuring that a perforation tears only where it should:

basic

advanced

Use fluent lines or cuts to guide the tear in the correct direction.

Use fluent perforation lines, avoid sharp angles.

Strengthen here (increase radius)

se cuts to guide the tear around a corner or to U another side panel. This will considerably improve appearance whilst hardly affecting the stacking strength of the box. n thick board grades, V-shaped crease lines in the I panel may facilitate tearing in the correct direction and improve appearance, whilst hardly affecting stacking strength.

Weaken here (cut or wedge)

Use a cut to create a starting point for tearing.

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Strengthen here (increase radius)

Weaken here (cut or wedge)

Use cuts to guide the tear from one panel to another.

The type of perforation has a considerable effect on appearance. It is advisable to use perforations with small gaps between the cuts, such as the unique Smurfit Kappa Sharkline perforation.

Customised to meet a customers particular needs

The above general details on the subject of perforations are used as basic guidelines by all Smurfit Kappa corrugated packaging designers. Of course it is then a matter of taking fully into account the requirements for specific products in their supply chains. Based on a customers preferences and Smurfit Kappas know-how, a technical solution will be developed that really works - such as the solution for Henkel in Germany where all the know-how was successfully implemented.

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New easy opening solution for Henkel

Henkel and Smurfit Kappa recently worked together to introduce an ingenious change which offers tremendous benefits.
The packaging in question, for Persil liquid products, was previously a straightforward regular corrugated box, which converted to a display tray by means of traditional perforations. The pack therefore had all the advantages of a regular box, including cost-effective production routes for the manufacture of the box; high speed filling; and strong protection for products during the distribution process - plus the ability to convert into a display tray. The only problem was that changing the box into a display tray was not so very easy. A great deal of manual strength was required to pull through the straightline perforations and disfigurement of the pack was also frequently an unwelcome result, detracting from the appeal of the brand.

Less opening force required

Smurfit Kappa tackled this problem by concentrating on the pattern followed by the perforations. The solution proved to be the adoption of a Sharkline curved pattern for the perforations. This requires much less manual force to open the box and convert it into a display tray. Unsightly damage is virtually eliminated.

Opening force required - comparison

150 Straightline Sharkline 100 Force [N] 50 0 0

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40

50

60

70

Displacement [mm]

Sharkline is a novel combination of perforation slit types and perforation lines which minimizes reduction of box strength and provides a neater opening edge. Sharkline is currently the subject of patent applications.

Sharkline curved is significantly easier to open than conventional straightline perforations, as proven by laboratory and practical testing.

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Improved performance
Changing to Sharkline has provided Henkel with significant performance benefits at the retail outlet in terms of improved efficiency and consumer appeal. The integrity of the brand is thereby enhanced by this most effective change. From a practical viewpoint, easier opening is achieved without any reduction in box strength performance during distribution and there is therefore no need for considerable changes in board specification of the box.

Local cooperation leading to international application

The change to the Sharkline easy opening solution was the result of close cooperation between Henkel and Smurfit Kappa people in Germany, where the solution was first adopted. Since then it has been taken to several Henkel operations and supplied by different Smurfit Kappa sites.

Henkel
Henkel has been committed to making peoples lives easier, better and more beautiful for more than 130 years. A Fortune Global 500 and Germanys most admired company according to a recent Fortune survey, Henkel offers strong brands and technologies in three areas of competence: Home Care, Personal Care and Adhesive Technologies. Each day, more than 52,000 employees in 125 countries are dedicated to fulfilling Henkels claim A Brand like a Friend. In fiscal 2008, Henkel generated sales of 14,131 million euros and adjusted operating profit of 1,460 million euros.

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Packing machine solutions to meet customers changing requirements

Throughout Europe and Latin America Smurfit Kappa Group plays a leading role in the development of end of line packing solutions for both corrugated and solid board packaging. Often these are ultra high speed lines but even when more modest outputs are required, the emphasis is still on maximum efficiency and minimum disruption.

In different markets Smurfit Kappa involves itself in packing mechanization in various ways - by managing complete turnkey operations, by supplying individual machines, by working closely with other machine suppliers or by adapting existing packing lines - whatever approach is best suited to particular circumstances. In the UK, for example, Smurfit Kappa operates its own machine systems business at Yate, near Bristol. This business, like the other Smurfit Kappa packing machine centres, is part of the extensive network of develop ent expertise available to every m Smurfit Kappa operation. Here we tell one particular success story where a suitable packing line solution has been developed

to meet the retail pressure to switch to RRP (Retail Ready Packaging) solutions.

Smurfit Kappa provides complete RRP solution for Dairy Crest

Dairy Crest tasked Smurfit Kappa to provide the ideal RRP solution for their range of spreads in order to satisfy their customers changing requirements. Working closely with Dairy Crests own senior management and technical experts, Smurfit Kappa rose to the challenge by designing an innovative two piece tray and lid solution. With both corrugated and machine systems expertise Smurfit Kappa were ideally placed to develop this new retail ready pack. The two piece solution satisfies retailers demand for ease of replenishment, without

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losing the visual impact of the primary products, whilst meeting all of the supply chain requirements.

This was all achieved with minimum disruption to production and an increased efficiency of the packing lines. Matt Weeks, General Manager Smurfit Kappa Machine System commented: We were awarded the contract by successfully demonstrating to Daily Crest that we were the only group that can offer a combined packaging and machinery solution.

A solution for existing as well as new packing lines

An essential part of the brief was that Smurfit Kappa had to incorporate the new packing equipment within the existing, as well as new, production lines. This involved designing a lid applicator - the LA1000. Its modular design made this an ideal solution, as it could be easily positioned within an existing line. In addition to the supply of this equipment for every production line, there was also investment in new tray packers to increase output, conveyor systems and robotic palletisers, all supplied at guaranteed efficiencies and project managed by Smurfit Kappa Machine Systems. In providing the complete solution Smurfit Kappas projects team, which included both packaging and machine specialists, utilised the most up-to date technology enabling them to streamline the control philosophy of the complete system.

Retail Ready Packaging

In the UK, as elsewhere, Smurfit Kappa has reinforced its position as one of the most innovative packaging companies through its development of RRP packaging. The range includes a number of unique designs that can: Easily be opened by the shelf stacker Improve on-shelf visibility and brand communication Provide exceptional print quality Look good full or partially empty Work across the retail distribution network And also - Run effectively on packing/ filling lines.

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Beyond Boxes
Smurfit Kappa is well known in the world of packaging as by far the biggest European supplier of corrugated packaging, producing 5.4 million tonnes each year in operations located in 22 European countries (9 in Latin America). Less well known is the fact that Smurfit Kappa is also the preferred European supplier in several specialist areas.

An appetizing choice of direct food contact packaging

The Food Industry, both fresh and processed food, represents the largest segment of Smurfit Kappa Groups international business, for both corrugated and solid board packaging. Whatever the circumstances, hygiene and safety are of paramount importance. When it comes to direct food contact, then the requirement is for highly specialized packaging which meets the strictest requirements. Smurfit Kappa Siemco are leading experts in the area of direct food contact packaging. In general, the Siemco product range concentrates on lightweight, fine flute, small dimensioned packaging with Offset, Pre-print and Flexo printing for industries requiring the highest quality, cleanliness, finesse and creative packaging. For direct food contact packaging, the control of paper specifications and manufacturing processes needs to be precise and consistent. For more than 3 years, Siemco has been accredited to ISO 22000.

Bake In Tray
Through expertise in the use of specific coated papers (silicon, greaseproof, PE and PET coating) Smurfit Kappa Siemco has become a reference partner for the food industry to develop new products. These moulds, mostly made from mini micro flute (1mm), are suitable for the traditional oven at 230 during 20 minutes.

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Susceptor System
The Susceptor System is made of a complex paper (Aluminium + PET) and allows reheating of food in the microwave for a final result similar to oven cooking. This technical paper allows better microwave cooking for products such as pizzas, hot dogs, paninis, hamburgers.

Clamshells
Siemco is one of the major players on the European market with a daily production of 1 million clamshells in a large field of applications: fruit and vegetables, take away food in restaurants, snacking products sold in supermarkets Mostly made from nano flute (0,8mm), the clamshells can be printed in up to 6 colours to be the most aesthetic for the final customer. Siemco currently supplies customers in France, Spain, Switzerland, Germany, UK, and Benelux and intends to continue its development on the European market. Often the Siemco direct food contact packaging is supplied together with the appropriate outer transit packaging, thus taking care of a customers total packaging requirements. For further information ask your local Smurfit Kappa operation or make direct contact with: info.siemco@smurfitkappa.fr

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Supporting a major brand - Toshiba

Smurfit Kappa Baden Packaging, Germany, is now an extensive supplier of folding carton primary packs to Toshiba plants in Germany. Many of the packs have windows and all have eye-catching graphics. It is a first class example of achieving What you see is what you get - which is such an effective merchandising method at retail points of sale for top quality brands. Behind the obvious presentation advantages of the packaging lies a story of close cooperation between Toshiba and Smurfit Kappa.

Relocation from China to Europe

In 2008, the EMEA (Europe/ Middle East/ Africa) PC Options, Peripherals & Services Division, Computer Systems Group of Toshiba Europe decided upon the relocation to Europe of certain development, manufacturing, assembly and packing operations for products supplied to the whole EMEA region. In making these changes, Toshiba was equally motivated by commercial and by environmental aims. For example, a considerable contribution would be made to Toshibas global green policy by bulk shipment of goods to Germany, thereby requiring fewer shipments for the same amount of product.

Despite the need to effect these changes very fast, Toshiba decided not only to switch from China to a European supplier but at the same time to ensure that the best possible packaging solutions could be developed, with regard to all considerations - protection of product, marketing effectiveness and environmental performance.

Teamwork for brand success

Several Smurfit Kappa companies supply Toshiba in Europe. For this project Smurfit Kappa Baden Packaging was selected by Toshiba as their supplier, to support a relaunch of several products. The working team for Smurfit Kappa included representatives not only

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from Smurfit Kappa Baden Packaging but also from Smurfit Kappa Plattling and Smurfit Kappa Zedek. Final decisions were made by the senior Toshiba management including Marco Perino, General Manager, and Nick Harlander, Industrial Designer. A key feature of the new packaging is its compactness - taking away excess bulk from the previously used packaging and thereby achieving both cost savings and environmental improvements throughout the distribution system. Toshiba Europe are particularly pleased with the introduction of windows. They believe that new

buying incentives for their brand have been achieved by the consistency of pack design. Clearer pack structures and customer-friendly product descriptions by the use b of sym ols are significant improvements. The high quality material selected (Smurfit Kappa Hoya TwinCoat) and the refining effect achieved with UV-varnish all support the quality statement associated with the brand name Toshiba.

The packaging was the winner of the Smurfit Kappa Specialties Division Innovation Award.

Nick Harlander, Toshiba (left) and Max Welter, Smurfit Kappa Baden Packaging (right).

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Sustainable packaging for a sustainable supply chain

Smurfit Kappa has always been at the forefront of sustainable packaging - it has been core of our business for years. Our broad aspiration is to produce packaging in a way which is judged as sustainable. Also, by working closely with all stakeholders, but most especially with our customers, our aim is to improve the sustainability of the supply chain where our packaging is used.
Most of the packaging produced by Smurfit Kappa may be described as secondary packaging. The direct impact of secondary packaging on the environmental footprint is estimated to be only 4% for a typical packaged food product.
40%

Secondary packaging is nevertheless high on the agenda today because it is visibly a key component when it comes to recycling, because overpacking is a major concern and because it is relatively easy for packaging specifiers to control.

30%

9% 4% 4% 3% Retailing 2%

9%

Source: Incpen, Industry Council for Packaging & Environment.

Consumer Cooking

Food Supply

Primary Packaging

Secondary Packaging

Transport to Retail

Transport to Consumer Consumer Cooling/ Freezing

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The most sustainable packaging, as defined by ECR Europe, is that which minimizes a companys total impact per unit of product delivered to the consumer. Smurfit Kappa has found that key issues for sustainable secondary packaging are to reduce overpacking, reduce CO2 emissions, reduce water and energy consumption, protection of natural resources such as forests and water, reduce waste going to landfill, to increase recycling and to improve the supply chain.

1. Sustainable sourcing of raw materials

Smurfit Kappa ensures the raw material for corrugated packaging is sourced in a controlled and sustainable way. ll Smurfit Kappa virgin paper mills are FSC or A PEFC certified, providing a credible guarantee that materials are originating from well managed forests. hen it comes to recycled paper - utilising fibres W produced from the used packaging recovered from the closed loop between retailers and industrial users of corrugated packaging - Smurfit Kappa reflects the European recycling rate of over 75%, the highest rate of all types of packaging materials. Fibres are re-used 7 to 8 times.

Four areas of concentration

Based on these key issues, there are 4 areas of major acti ity for Smurfit Kappa, as shown in the diagram below v
Sustainable Package Design Sustainable Supply Chain

Sustainable Sourcing of Raw Materials

Sustainable Production

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2. Sustainable production
Smurfit Kappa produces over 5 million tonnes of paper each year. As well as fibres, energy and water are also needed to produce paper: nergy - paper production is energy intensive but E not carbon intensive. 40% of the total energy consumption of Smurfit Kappa now comes from green energy (biomass fuel). ater - more than 90% of water used by Smurfit W Kappa is cleaned and re-used many times on-site. Besides paper, many valuable by-products are utilised for other applications, leading to an amount of waste going to landfill of less than 1%.

Corrugated packaging, when it is designed with the sustainability of the supply chain in mind, contributes to the reduction of the environmental impact related to such areas as the distribution chain, retailing, collection of post-used packaging, recovery & recycling and product disposal.

3. Sustainable packaging design

With over 400 design professionals Smurfit Kappa could be well described as a design company. All designers have a unique set of tools, helping them to generate and optimize sustainable packaging solutions. ,
Source: Packaging in the Sustainability Agenda, ECR and Europen.

The way forward

Smurfit Kappa is already working very closely with many customers to understand the supply chain of particular products in order to develop sustainable packaging that minimizes total impact per unit of product delivered to the consumer. Lets work together for a better sustainable solution. For more information: www.smurfitkappa.com

4. Sustainable supply chain

The most vital function of secondary packaging is to protect products. Without appropriate corrugated packaging, a huge proportion of products would never reach the consumer - wastage would be enormous, with corresponding negative impact on sustainability.

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The Mars Quality Award

Smurfit Kappa MNL De Zeeuw Eerbeek receives the Mars Quality Award. Consistent high quality is the prime requirement expected from packaging suppliers in the 21st century and many major companies are aware of the importance of providing recognition for excellent performance by suppliers. Sometimes this might include a small incentive as an expression of thanks. For several years, for example, Mars Chocolate Europe has rewarded good supplier performance with generous gifts of chocolate.
Mars has gone a big step further by distributing cash awards for the benefit of the employees of the very best performing suppliers. The Mars Quality Awards recognize both product and service quality performance and the award made in 2009 for the best single supplying site in 2008 was given to Smurfit Kappa MNL De Zeeuw in the Netherlands. After discussion with employees, the cash award was used by the plant manager Joost van Noorden to refurbish the canteen and to install a central radio system in the factory.

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A generous gift of chocolate was also made not only to Smurfit Kappa MNL De Zeeuw but also to Smurfit Kappa Dsseldorf/ Jlich in Germany and Smurfit Kappa Tours Sur Marne in France. Pim Wareman, Managing Director of Smurfit Kappa MNL: I cannot think of a better appreciation on behalf of the satisfied customer. It demonstrates again what a variety of options we have at our Eerbeek plant. This is an enormous incentive for us to strive after a similar appreciation with other customers.
Michel Lebouille, Local Packaging Buyer Commercial with Mars Nederland B.V. (left) handing over the Mars Award to Joost van Noorden, Plant Manager Smurfit Kappa MNL De Zeeuw.

Smurfit Kappa MNL De Zeeuw specializes in developing and printing of complicated packaging using the latest colour techniques like Advanced Print, one element of the three dimensions of the direct print programme. The Smurfit Kappa MNL Golfkarton cluster consists of Lona Loenen, De Zeeuw Eerbeek and Mercurius Soest.

Joanna Suckling, European Paper Packaging Buyer, Commercial MARS CHOCOLATE: SKG MNL have proven during 2008 that they are able to consistently deliver the highest level of packaging quality to Mars. High quality materials, both packs & raws, are a key requirement for all Mars sites in order to ensure the smooth & efficient running of our factories. It is also essential to have flexible & responsive suppliers in order to help us to meet our customers changing needs.

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Peter van der Klis, designer and Karin Keus account services (Smurfit Kappa MNL).

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Global print & innovation award goes to Smurfit Kappa

Smurfit Kappa has scooped the Supreme Award at the FlexoTech International Print & Innovations Awards 2009. Europes leading paper-based packaging manufacturer won the events top accolade for a corrugated post print premium beer box for Svyturys-Utenos alus (part of the Carlsberg Group), which also took the top prize in the Post Print Category.
Boris Maschmann, Sales & Marketing Director at Smurfit Kappa Germany said: Smurfit Kappa is a market leader in corrugated post print packaging. We are delighted to have our innovations recognised by FlexoTechs International Print & Innovations Awards. We work very closely with companies to create innovative packaging print solutions which have shelf stand-out, consumer appeal and help our customers to sell more.
From left to right: Bachtijar Gasanov (Order Planning), Thomas Beutel (Production manager), Gabriele Lewerenz (Print technology/ HQPP), all from Smurfit Kappa Delitzsch and Dudley Underwood (Printing Process Expert & Training Smurfit Kappa).

The judging process for these awards is rigorous, examining quality, innovation, functionality, production excellence and financial performance. Winning these awards underlines our expertise in this sector.

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Our Pan European sales approach

At Smurfit Kappa, our customers shape our organisation: we aim to provide you with a structure to complement yours whether you have one delivery location or one hundred.

This is achieved by a flexible, modular approach within our sales organisation. Sales teams operate at local, national/regional and also at Pan European level, enabling us to meet our customers needs and match their specific requirements. As the foremost European corrugated packaging supplier, operating across 22 countries, our Pan European Sales organisation is key in meeting the needs of those customers who operate on a similar cross Europe basis. Based in Paris, this team, comprising 20 people from 8 nationalities, can cover both commercial and technical issues. Working in close collaboration with other central functions and with their national and local colleagues, this team can coordinate the delivery of a wide range of products and services. This gives our key customers the advantage of access to the full capabilities of the Smurfit Kappa Group via a focused account team intimate with their specific needs. So whether it be sustainability, packaging innovation, cost out programmes, cross-learning, or even the next challenge we havent thought of yet this team will find a sure way to meet your objective.
Corrugated plants

Smurfit Kappa Europe Pan European Sales Rue Goethe 2 Paris, France Tel.: Fax: +33 1 49 52 32 00 +33 1 49 52 32 70

People & Packaging is published twice a year Editor: Designer: Nienke Odekerken Bovil DDB Managing Editor: Siegfried Jacobi

Email: PanEuropeanSales@smurfitkappa.com

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www.smurfitkappa.com