Mission paper bottle: BillerudKorsnäs and ALPLA unite in pioneering project
04 Apr 2019 --- Paper packaging specialist BillerudKorsnäs and plastic packaging innovator ALPLA have partnered on a groundbreaking project to develop a fully biobased and recyclable paper bottle. The joint venture will be formed through the acquisition of Danish paper bottle company ecoXpac, subject to customary regulatory approvals, after which BillerudKorsnäs and ALPLA will own equal parts in the company. The companies inform PackagingInsights that they aim to launch a first generation paper bottle on the market in 2020.
The main technical challenges in creating a technology and production capacity to produce paper bottles that are 100 percent bio-based and 100 percent recyclable, according to Gittan Schiöld, Venture Manager for BillerudKorsnäs, is the availability and development of bio-based and/or biodegradable barriers and the application method.
“In addition, production scale-up of a new technology is dependent on process efficiency and continuity. To reach fast process cycle times is a challenge that will need continuous focus and constant problem-solving. By recruiting the right talent and combining the expertise within BillerudKorsnäs and ALPLA, we aim to overcome these main challenges,” Schiöld explains.
“Natural” packaging growth
Christoph Hoffmann, Director Strategy, Sustainability & Circular Economy for ALPLA, tells PackagingInsights that the “huge demand” for new, sustainable packaging around the globe makes investment in the venture well worthwhile.
The joint venture aims to produce a commercialized paper bottle by 2020.Likewise, Schiöld identifies the paper bottle as “part of the solution to the end goal” of the EU to phase out plastic from packaging. As part of this strategy, the European Parliament recently approved bans on the 10 most polluting single-use plastic items.
Innova Market Insights identified “Nature’s Appeal” as its third-biggest packaging trend for 2019. The market analyst cited anti-plastic sentiment and the rising demand for designed-in recyclability as fuel for the resurgence in paper and paperboard packaging.
At the same time, paper is not only by nature renewable, recyclable and compostable but can also add value via its “natural” appearance in an increasingly eco-conscious society. A recent Sonoco study found that consumers are more likely to buy organic, premium brands if the packaging is “natural-looking.”
The road to 2020
Schiöld goes on to explain that the paper bottle is currently in a prototype and test phase and that the joint venture will work strategically towards “significant levels” of scale production.
“We are working with totally new technology and materials that need to be scalable. We cannot develop everything at once, and we need to learn along the way so the first generations of bottles will have separable and recyclable barrier,” Schiöld says.
“The joint venture will focus on scaling production of paper bottles to significant levels,” adds Hoffmann. “It is too early to communicate an exact timeline, but the aim is to launch a first generation bottle on the market in 2020 and continue growth while onboarding more and more customers.”
“Until the final goal can be scaled to significant volumes, an intermediate step with separable barriers will be introduced in order to learn together with partners and customers,” Hoffmann explains.
Driving the vision home
A minority post in the venture will be held by the founder family, ecoXpac. BillerudKorsnäs is currently the majority owner and has been a shareholder in the company since 2015. It has been a driving force in the ongoing development of a paper bottle, which was started by ecoXpac in 2010 and with Carlsberg Group since 2015. In late 2016, Carlsberg Group revealed a first physical prototype of a paper bottle, the Green Fiber Bottle, and the first generation of paper bottles has since then been in a testing phase.
ALPLA and BillerudKorsnäs intend to leverage the venture by combining their resources, competencies and strengths to support scaling ecoXpac in the commercialization of a fully biobased and recyclable paper bottle.
The availability and development of bio-based and/or biodegradable barriers and the application method are the biggest technical challenges the joint venture is working to overcome.
“With BillerudKorsnäs, we have found an ambitious partner creating a new packaging market segment that offers a complementary consumer experience to our current rigid packaging solutions,” comments Günther Lehner, CEO of ALPLA. “ALPLA is sharing the passion for technical challenges and innovation and I want to emphasize the long-term vision of the joint venture to introduce fully biobased paper bottles. ALPLA is contributing capital as well as technical know-how to the joint venture to accelerate the development and market introduction of the paper bottle.”
"I believe that with our shared and honest ambition to break new ground, ALPLA and BillerudKorsnäs now make an important commitment to contribute to a more sustainable future,” adds Petra Einarsson, CEO and President BillerudKorsnäs. “The question is not ‘if’ but rather ‘how soon’ this joint venture will introduce a fully biobased and recyclable paper bottle to the market. When we do, it will enable a significant shift in consumer behavior globally.”
“EcoXpac was founded with a strong vision for the future. Today we are privileged to have the best players in their fields sharing our vision. It makes me proud of what we have achieved so far. The vision has never felt closer to reality than today,” concludes Martin Grosen Petersen, CEO of ecoXpac.
The formation of the joint venture is subject to customary regulatory approvals such as merger control clearances. It is expected that the transaction is completed in Q3 2019.
By Joshua Poole
