challenges for the packaging industry
TRANSCRIPT
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MEGA TRENDS
Challenges for the
packaging Industry
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Mega Trends
• The changing consumer
• The changing retail environment
• The digital world
• Concerns on food safety
• Market polarisation
• Sustainability
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Nestlé at a glance
CHF 83.6 billion in sales in 2011
328,000 employees
461 factories
10,000 brands
1 billion Nestlé products sold every day
A product for every moment of every day, from morning to night and from birth to old age
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The Changing consumer…….
60 Million Population
47+ Half Adults
10 Million Disabled
8.5 Million Arthritis
9 Million Hearing loss
2 Million Visual Loss
11 Million Children
14 Million Grandparents
1 in 10 Left Handed
8% Men
0.4% Women Colour Blind
3.4 Million Asthma
1.5 Million Diabetes
50 : 50 Gender
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Age band
Even today, half the UK
adult population are aged
47 or over.
Cambridge University (UK)
Inclusive Inclusive
Population Change
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Put yourself into the shoes of the shopper/consumer
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CO
NC
ENTR
ATI
ON
To
p 5
Ret
aile
rs S
ha
re o
f G
roce
ry S
ale
s
Exploration Concentration Penetration Maturity
Value of Top5 in EUR Billion
USA, 307.0
Germany, 113.5
France, 138.3
UK, 122.1
Italy, 40.8
Spain, 44.8
Mexico, 28.3
China, 19.1
Japan, 79.5 Brazil, 21.9
0%
20%
40%
60%
80%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Data sources: MVI research
High and increasing Trade Concentration
3
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Alternative business models
Control over total value chain & direct consumer contact
Direct consumers contact (category shop, shop in shop)
Dolce Gusto
Nespresso
Brand channel exclusivity
13
Controlled delivery chain (street vending, home delivery)
Purina Channel
New channels
Fully integrated value chain
Dis-tribution model
…
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MAISON CAILLER / 2012 (Switzerland, and global roll out) MAISON CAILLER®, the prestigious inventor of milk chocolate in Switzerland, offers the most intimate exploration of chocolate for the perfect gift or your own personal treat. Branding, Product and packaging design have been developed internally.
Maison Cailler
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BabyNes – Advanced Nutrition System (Switzerland)
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NUTRITION INFORMATION
LOGO / BRANDING
INGREDIENT LIST
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Scanning QR and barcodes
• Code takes you to website or application
• Technology very strong in Japan, and is expanding to many other markets
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Augmented reality
Chocapic France Launch
The very first augmented reality consumer good product launched on the
Market !
Nestlé cereal boxes has an “integrated 3D animation” function that encourages consumers to log onto brand
websites
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Internet connections
www.chocapic.com website : Total Visits
Pac
ks o
n s
he
lf
X 15 average connections We decided to focus the buzz campaign on one
of the two brands (CHOCAPIC) to compare the buzz effect on visits and sales.
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Choose a product Start the app Film the barcode Be located Get sorting advices
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Choose a product Start the app & be located
Like or Suggest Film the barcode Tell more by adding video, picture or text.
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Concerns about Food safety
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A complex supply chain
Resin Manufacturer
Converter
Food Packer
Trade
Consumer Pigment
Manufacturer
Printing Ink Manufacturer
Upstream
Downstream
Adhesive Manufacturer
It is in the interest of all partners of the packaging value chain to have a full knowledge of the
products they sell, including the raw materials they purchase.
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Ann. 2 Vade-Mecum for Vendors
Ann. 1 CoC Template
Ann. 2 CoC Example
Ann. 3 Confidentiality
Must be shared with suppliers
List of substances
Abstract Guidance Note on
Packaging Inks
Overview on packaging safety and compliance
GI-80.008
Nestlé Standards
on Materials in Contact with Food
GI-80.103-1
Certificate of Compliance
GI-80.104
Monitoring/ Surveillance
GI-80.100-1
The Packaging Safety Process
GI-80.105-2
Packaging Supplier Audit
GI-80.002-1
Specifications
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Polarisation of the market
Premiumization
PPP
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Polarisation of the market
PPP
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Polarisation of the market
Premiumisation
Mainstream
Emerging
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30
>30,000
22,000-30,000
14,000-22,000
3,000-14,000
< 3,000
Emerging Consumers
30
Increase in people who can afford to buy Nestlé products regularly
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• Meet nutritional needs in developing countries - low price - high nutritional value - smaller, more affordable, pack sizes
• Different business model, different types of advertising, micro distributors
Products for emerging markets – Popularly Positioned Products
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Cost Challenge
Hurdles: - Down size = More packaging / kg
- Product requires same protection.
- Added fortifications might require better protection.
PM over-cost
> 20%
Equivalent price /kg
PPP PPP
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Polarisation of the market
Premiumization
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Premium and luxury products
• More than just products – the complete experience
• Nestlé Nespresso
• Premium chocolate: Centre of Chocolate Excellence
• Luxury ice creams
• Pet foods
• Waters
Premiumization
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1. Eco Design based on Life Cycle Assessment
2. Promote recycling & recovery & use of
recycled materials 3. Materials from sustainably managed
renewable resources 4. Lightweighting
Sustainability by Design
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Holistic approach to reducing environmental impact
Recovery
Disposal DOWNSTREAM IMPACT
UPSTREAM IMPACT
Raw material
production Processing Filling
Distribution
Packaging Use
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Eco Design
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Packaging lightweighting Eco-Shape® bottle Nestlé Waters
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Purina Project Density : Reduction of 144’000 pallets
640 Tonnes less packaging material
• product development
• packaging development
• logistics
• marketing & communication.
Excellent feedback from consumers & press -
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Contains over 92% renewable materials: PLA & paper
Certified Sustainable Forestry Initiative (SFI) paper.
Soy based printing inks.
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