12 INDUSTRY NEWS
Retailers benefit from corrugated investments
The corrugated sector is rising to the challenges from an evolving retail sector, says the CPI U
K Corrugated packaging companies have invested almost £500million
in new technology and plant over the last two years, in part to provide retailers and brand owners with effective on-pack communications to entice customers. The Confederation of Paper Industries (CPI) says significant capital outlay in state-of-the- art digital printing equipment is enabling the corrugated industry to offer innovative solutions for display packaging and personalisation, which can provide a critical edge in the fiercely competitive retail environment. At the recent industry summit
organised by The European Federation of Corrugated Board Manufacturers (FEFCO), speakers from the food and retail sectors, which included Nestlé’s European Procurement Manager Alison Coudene and Tesco’s Packaging Manager Paul Earnshaw, echoed the importance of corrugated partners working with them to understand their future needs in an evolving retail world. The £6.5 billion UK corrugated industry is also embracing new trends such as customisation that bring an extra marketing dimension to packaging – print- on-demand is offering retailers and brand owners cost-effective, personalised promotional campaigns to boost sales. Eye-catching, innovative shelf-
November/December 2014
Pulp Paper & Logistics
ready packaging (SRP) is already being developed that not only enhances visibility on shelf, but provides in-store logistics benefits too. A collaboration between two corrugated companies resulted in new-style SRP as part of a successful rebranding exercise by Taylors of Harrogate for its lifestyle range of coffees. Matt Hunt, packaging buyer
at Taylors, says that because each variant of corrugated SRP carries two or three additional colours for the text and graphics, the product’s easily identifiable outer packaging is having a direct benefit by making them easier to identify and handle back of store, long before it comes under consumer scrutiny. Another corrugated technology
beneficiary is brewer MillerCoors, which has a novel pack design made from corrugated board incorporating a water resistant
inner lining. This enables a cardboard take-home pack for bottled beers to become an attractive coolbox when the consumer adds ice or water. Corrugated innovation is not
just confined to transit and display packaging for goods. Other inventive uses of this flexible and recyclable material include an affordable virtual reality headset made solely of cardboard and created by Google, a cathedral built of corrugated in Christchurch, New Zealand, refoldable furniture and eco- cradles for sleeping babies. It is this inherent versatility
that is enhancing corrugated’s popularity among shoppers, as a recent YouGov poll* commissioned by CPI showed that 57 per cent of consumers preferred their grocery and food packaging in paper-based material.
CPI’s Director of Packaging
Affairs, Andy Barnetson, believes that corrugated is helping bring exciting and diverse products to market in a variety of ways that will help maintain its position as the number one packaging material. He commented: “UK corrugated
packaging companies need to keep pace with a challenging retail landscape and are investing significantly in equipment to meet demand for innovation. Whether in transit, back of store or on-shelf, the versatility of corrugated is helping brand owners’ goods stand out and enticing customers to buy their products.” • Poll carried out by YouGov on 28-29 May 2014. Total sample size of the on-line survey was 2,289 adults. The figures have been weighted and are representative of all GB adults (aged 18+).
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