Enhancing Export competitiveness through effecient Packaging

1. Enhancing Export competitiveness through effecient Packaging Presented by Mrs Lémia THABET GENERAL DIRECTOR Tunisian Packaging Technical Centre, PACKTEC Arab Quality and Food Safety Conference Lebanon, June 15-16, 2006

2. PACKTEC I- The underlying forces that influence export packaging II- Tunisian experience in the Packaging field

3. PACKTEC “ The essential role of packaging is to achieve the delivery of a product from its production stage to its final destination in a manner which safeguards it and helps maintain its original quality” No interaction between the product and the materials used

4. PACKTEC The vital role of Packaging is ensuring export competitiveness sustainability Because : • The exporter doesn’t sell the product to the consumer • The packaging have to do it for him

5. PACKTEC But today, Packaging is facing new challenges • High performance with minimum cost • Combining environmental protection and economic growth • The effect to increase sales of name brands will be the biggest driver of packaging innovation

6. PACKTEC Some of the underlying forces that influence export packaging Design & Marketing Quality and Safety Traceability and labeling Distribution Environment Research & Development

7. PACKTEC Design & Marketing Next to the product , Packaging is the only last chance to impress the final consumer and motivate him for a repeat purchase

8. PACKTEC Design & Marketing 1/ Packaging is the last interface to consumers and can drive purchase decisions. 2/ Design packaging has become part of companies overall strategic process. 3/ Packaging innovation can happen at many different levels in the organisation.

9. PACKTEC Design & Marketing • Packaging Innovation is : • Translating consumer insight into packaging design. • Creating new delivery : design, color, material, shape, size.. • Creating new conception or use habits • Adapting to life style or create new ones • Meeting consumer needs in non-traditional ways • Delivering the product differently.

10. PACKTEC Design & Marketing CONSUMERS want … Small serving sizes, Packages that are easy to open ….and easy to re-close Real value-added features Packages that appeal to the hand and the eye

11. PACKTEC Design & Marketing RETAILERS want … • Better on-shelf communication • Respect of the negotiated shelf facing • Packaging source reduction & good product visibility • Improved availability – less out of stock

12. PACKTEC Design & Marketing Packaging Innovation can integrate different levels 5. Size and space for approach and use 1. Flexibility and safety in use 2. Simple and intuitive use 6. Easy to understand 7. Easy to open and easy to take out the contents 3. Perceptible information 4. Low physical efforts 8. Easy to hold

13. PACKTEC Trends driving Packaging Development Quality and Safety Successful and sustainable access to International market implies complying with the International regulations (FDA, EU, BgVV…)

14. PACKTEC Quality and Safety Significant development of the International Legislation In the last few years, drastic development of the Legislation concerning food and packaging : • Food: • General hygiene practices, • HACCP (Hazard Analysis Critical Control Point), • Requirements on traceability and labeling, • Food packaging materials: • Traceability, • Migration limits and food contact, • Packaging, from transportation to retail packaging: • Environmental requirements • Product safety: • Code of good practice, • Withdrawal from the market where dangerousness

15. PACKTEC Quality and Safety Materials and articles, which are not yet in contact with food when placed on the market, shall be accompanied by : • The words “For food contact”, or • A specific indication as to their use, such as coffee, machine, wine bottle, soup spoon • The UE fork and glass symbol

16. PACKTEC Quality and Safety Toxicity / Packaging : Concept of functional barrier Interactions between foodstuffs and their packaging materials are of the following types : 1) Migration or transfer of constituents of the package into foodstaff 2) Permeation of gases, water, vapor and volatile organic compounds through the package and into or out of the food staff 3) Transfer of constituents of the food into the packaging material.

17. PACKTEC Quality and Safety Potential sources of risk The health of the consumer can thus be threatened in four ways : • Food deterioration due to interaction with the package • Food is contaminated by micro-organisms and degrades due to ingress of foreign matter, whether solid, liquid or gaseous through the package. • Food deterioration because of insufficient protection from gas and water vapour, temperature changes or physical stresses. • Deterioration of a foodstuff from within due to enzymatic / metabolic action in the food itself.

18. PACKTEC Quality and Safety Packaging & HACCP - The EU legislative environment is evolving very fast. Following Directive 93/43/EEC related to the hygiene of foodstuffs and food law, packaging is concerned by two types of regulation : (1) materials and (2) articles in contact with foodstuffs. - More and more processors are asking for third party certification of the Good Manufacturing Practices related to the physical and bacterial dangers, usually called good hygiene practice according to several standards (ISO 22000, BRC/IoP....) - Concerns packaging manufacture and use as well the filling and close part particularly

19. PACKTEC Traceability and labeling Global Context Traceability : what does it mean for the producer ? • Follow products through warehouse & distribution • Consumer confidence • Reliable traceability systems in place (ability to recall in a timely manner) Compliance with Regulations - EU Food law Regulation 2002/178 EC (article 18) - EU Regulation for Food Contact Materials 2004/1935 EC (article 17)

20. PACKTEC Traceability and labeling Definition Traceability : The ability to trace and follow a material or article through all stages of manufacture, processing and distribution; “The traceability of materials and articles intended to come into contact with food should be ensured at all stages in order to facilitate control, the recall of defective products, consumer information and the attribution of responsibility”. “Business operators should at least be able to identify the businesses from which, and to which, the materials and articles are supplied”. Regulation 2004/1935/EC

21. PACKTEC Traceability and labeling Summary on Traceability Traceability The origin of food and ingredients must be fully documented at all stages (from production to distribution). All operators to keep records from whom products have been received and to whom they have been supplied :”one step back – one step forward approach” Import Foodstuffs entering the EU from third countries have to be traceable. Importer must be able to specify from whom the product was exported in the third country. Prior to any export, these foodstuffs have to adhere the EU rules of the General Food Law.

22. PACKTEC Traceability and labeling Summary on Traceability Information to be kept Mandatory - Name, address of supplier, nature of products - Name, address of customer, nature of products - Date of transaction / delivery Optional but highly recommended - Volume or quality - Batch number - Supplementary product detail, e.g. variety of produce Impact of traceability regulation on packaging The quick withdrawal of product in case of contaminated packaging.

23. PACKTEC Traceability and labeling Traceability Coding is necessary - To keep track of your products - To be in compliance with legal regulations • Printed Bar Code System • Widespread adoption and acceptance • Strong economic benefit to supply chain • Very accurate read • Requires line of sight for scanning • Label space issues • Limited encoding capacity • No read/write capability

24. PACKTEC Traceability and labeling Traceability RFID Promises: • Greater availability of products • Better management of costs and prices • Increased product safety • Enhanced product security • Better shopping experiences. Recent Developments: • New flexible RFID controller • Bendable to Radius of 10mm • Target thickness 0.1mm (currently 0.8mm) • Passive controller – Draws power from the reading scanner

25. PACKTEC Traceability and labeling Labeling One of the main dedicated function of packaging is the presentation of all relevant information to the consumer and the end user, through the use of appropriate marking, coding or labeling. Information provided on printed texts or labels in the language of the relevant country, symbols, or internationally recognized coding. • For the most part the purpose is to provide information about the product and its suitable treatment. Relevant areas to cover include • identification, storage, shelf time, handling, directions for use, and so on.

26. PACKTEC Distribution Packaging is a key element in the storage, transport, and distribution cycle of products

27. Agriculture Processing Waste treatment Packaging Waste Transport Consumtion Distribution PACKTEC Distribution Cycle related to STORAGE, TRANSPORT and DISTRIBUTION of Products

28. PACKTEC Distribution SOMETIMES IN MANUFACTURING ONLY THE ENVIRONMENT IN WHICH PRODUCTS ARE GOING TO BE IS CONSIDERED ...this environment is gentle when compared to the STORAGE, TRANSPORT and DISTRIBUTION ENVIRONMENT NOT CORRECT !!!

29. PACKTEC Distribution GENERALLY... PACKAGING IMPROVEMENT DECREASES DAMAGE However... there is an OPTIMUM BALANCE packaging costs <<<->>> damage losses To find the minimum system cost, the total distribution cost, including packaging cost and damage cost, must be established.

30. PACKTEC Distribution TOTAL PACKAGING COST= MATERIAL COST + DAMAGE SUFFERED BY PRODUCT

31. PACKTEC Distribution as a summary... MAIN STEPS TO TAKE INTO ACCOUNT WHEN DESIGNING A PACKAGING SYSTEM FOR PRODUCTS : • Product/ system evaluation • Distribution Environment analysis • Legislation & standards (related to product and package) • Structural design of packaging system • Testing/ retesting (if needed) of prototypes.

32. PACKTEC Labeling on Transport Package Distribution The packaging is providing transporters with useful information to ensure that the product is transported in a safe way. Product (name or trade mark, and origin) Packer and /or distributor (identification) Destination (name and address) Commercial specifications (references, special coding)

33. PACKTEC Distribution Labeling on Transport Package Example of pallet code SSCC encoded in a UCC/EAN-128 (Pallet)

34. PACKTEC Environment Packaging is wanted and needed ….however, waste is a major problem…..

35. PACKTEC Managing packaging waste Environment Essential Requirements Packaging shall be manufactured with minimum packaging volume and weight Designed, produced and commercialized in such a way as to permit its reuse or recovery, including recycling, and to minimize its impact on the environment. The presence of noxious and other hazardous substances and materials as constituents of the packaging material or of any of the packaging components is minimized with regard to their presence in emissions. Packaging must be recoverable in the form of material recycling, energy recovery or composting.

36. PACKTEC Eco-design Environment Example • Innovative design brings win/win for culinary product; • Glass to PET = 89% weight saving • 41% capacity increase • 15% cost decrease (material) • Improved functionality

37. PACKTEC Research & Development • Being the face of the product, packaging should be regarded as part of the total concept during the development of new products. • Brand managers are looking for packaging innovation that will help to boost sales, give more on shelf differentiation and add a twist to new product promotion.

38. PACKTEC Recent emerging trends Research & Development Development of new materials ( environmental friendly packaging) Improvement of the printing techniques and processing High barrier properties and better sealing properties for improved shelf life products Nanomaterials with high barrier properties Biodegradable materials Oxygen scavenger Active and intelligent packaging Antimicrobial films Development of RFID solutions.

39. PACKTEC Recent emerging trends Research & Development Convenient packaging Easy opening Easy handling Clear information Microwaveable materials for steam cooking The re-use of recycled material

40. PACKTEC Research & Development New Generation Materials will have an important positive effect on food product export

41. PACKTEC New Generation Materials Research & Development Intelligent packaging According to Regulation 2004/1935/EC “Intelligent food contact materials band articles” means materials and articles which monitor the condition of packaged food or the environment surrounding the food. Examples of intelligent packaging / labeling application Maximum temperature Indicators Time temperature Integrators (TTI) Radio frequency identification (RFID) Bar Codes and Beyond

42. PACKTEC New Generation Materials Research & Development Intelligent packaging A simple example of intelligent material is also a tamper evident adhesive tape or label

43. PACKTEC New Generation Materials Research & Development Active packaging • More and more functions are integrated in packages to have : • An extended shelf life combined with less loss of product quality • A better quality after filling and during the whole life cycle of the product.

44. PACKTEC Tunisian experience in the Packaging field • Tunisian Packaging companies are making huge effort to integrate new developments and to improve the quality of their products, especially within the Industrial Upgrading Programme.

45. PACKTEC PACKAGING INDUSTRY IN TUNISIA In Tunisia,about 170 firms are operating in the packaging field, most of them being of a medium and small size, and privately owned. The sector employs about 10 000 people. For year 2005 the total production reached 450 000 T. About 50% of the packaging production is dedicated to the food sector Its turnover is estimated at 650M$. About fifty companies are certified ISO 9001 – 2000 About 125 companies participate to the Industrial Upgrading Programme

46. PACKTEC THE INDUSTRIAL UPGRADING PROGRAMME The Industrial Upgrading Programme (IUP) was launched towards the end of nineteen ninety six (1996), and has two components: • Upgrading the production units so that they can improve their competitiveness in terms of cost, quality, innovation, and respect of delivery schedules, keeping up with technological developments, and meeting market requirements; • Upgrading the environment in which units operate, including the infrastructure and the legal, administrative, and financial systems. In this respect, various measures have been undertaken, such as creating industrial parks, reducing the cost and improving the quality of transport, renewing and expanding telecommunication networks, etc.

47. PACKTEC PACKAGING UPGRADING INVESTMENTS The Percentage of the Packaging sector investments accounts for 10% of the total amount of the industrial upgranding investments.

48. PACKTEC Since 1996, eight Technical Centres covering all the industrial fields were founded to assist companies in their effort to improve their competitiveness and to promote the Tunisian products to export through adapted Technical services .

49. PACKTEC The Tunisian Packaging Technical Centre PACKTEC 10 years heading for a better packaging quality

50. PACKTEC The Tunisian Packaging Technical Centre PACKTEC 10 years heading for a better packaging quality • A supporting structure for the benefit of the packaging industry, founded in 1996, under the guardianship of the Ministry of Industry, Energy and SME. • A technical partner for the improvement of packaging industry competitiveness and also for the promotion of Tunisian products in particular for export.