Weekly Roundup: Amcor agrees US$394m sale of flexible packaging plants on requirement of European Commission

28 Jun 2019 --- This week in packaging, Amcor entered into a US$394 million agreement with investment firm Kohlberg & Company for the sale of three former Bemis flexible packaging plants in the UK and Ireland. The divestment was required by the European Commission at the time of approving Amcor’s acquisition of Bemis on 11 February 2019. Also, McDonald's announced that from September it will ditch plastic for its McFlurries, shaker salads and salad meals and use recyclable cartonboard instead. UK’s Glastonbury Festival revealed that it will be selling sandwiches in 100 percent compostable packaging at this year’s 5-day event.

In brief: Business news
Amcor entered into a binding agreement with investment firm Kohlberg & Company for the sale of three former Bemis plants located in the United Kingdom and Ireland for cash consideration of US$394 million. Collectively these three plants generate annual sales of approximately US$170 million from the sale of flexible packaging for certain healthcare products. This divestment was required by the European Commission at the time of approving Amcor’s acquisition of Bemis on 11 February 2019. The sale remains subject to customary approvals, including European Commission approval of Kohlberg & Company as the buyer and is expected to close in the coming weeks.

BillerudKorsnäs announced an agreement for the sale of a majority stake in Bergvik Skog Öst to the pension company AMF. BillerudKorsnäs sells 89.9 percent of Bergvik Skog Öst AB for a price corresponding to an enterprise value of SEK12.2 billion (US$1.32 billion) on a debt-free basis. Bergvik Skog Öst and BillerudKorsnäs confirmed a 15-year long agreement regarding the supply of wood, whereby BillerudKorsnäs will be the sole buyer of the wood volumes from Bergvik Skog Öst’s lands, corresponding to approximately one-tenth of BillerudKorsnäs’ total wood supply. At the end of the wood supply agreement, BillerudKorsnäs has the right to repurchase Bergvik Skog Öst unless BillerudKorsnäs is offered an extension of the wood supply agreement to the current conditions.

In brief: Sustainability action and reaction
McDonald’s announced plans to replace the single-use plastic packaging for its McFlurries, shaker salads and salad meals with recyclable cartonboard in September. It is a move that is expected to eradicate 485 tons of plastic waste annually. However, the new, lidless McFlurry packs have come in for some public criticism because the bulky, non-recyclable plastic spoon will still be used.McDonald's new recyclable cartonboard MrFlurry packs. Credit: McDonald's.

Glastonbury Festival in the UK confirmed that it will sell sandwiches packaged in 100 percent compostable packaging at this year’s 5-day event. The sandwiches will be sold at Co-op pop-up stores around the festival grounds and compost waste bins will be made available. The Co-op also said that it will sell compostable carrier bags, refillable water bottles and recyclable aluminum cans during the festival. Glastonbury Festival previously banned the sale of single-use plastic bottles.

The British Plastics Federation (BPF) responded to the BBC’s new “War on Plastic” documentary by stating that it agrees consumers need to be offered a choice of more sustainable packaging in supermarkets, but that the choice must be informed with correct information. “Food should always be packaged for a purpose and when making decisions about what packaging format is best for the environment, it involves considering more than simply the recyclability of the packaging,” the statement reads. BPF notes that consumers should also be made aware of other sustainability factors, including weight, bulk, water use, total CO2 emissions and shelf-life.Papa John's AR-enabled Spider-Man pizza box. Credit: Papa John's

Berry Global Group signed the New Plastics Economy Global Commitment to eliminate plastic pollution at its source. The New Plastics Economy Global Commitment is led by the Ellen MacArthur Foundation in collaboration with UN Environment. Berry’s involvement with the Global Commitment is complementary to its efforts with the Alliance to End Plastic Waste and furthers the Company’s commitments to its recently announced sustainability strategy, Impact 2025.

Kemira global chemicals company joined a four-year EU funded project which aims to develop 100 percent bio-based chemicals produced from renewable raw materials. In addition, the project aims to develop new means to improve production efficiency at pulp mills with higher utilization of wood biomass. The project began in May 2019 and has received €5.9 million (US$6.7 million) funding from the Bio Based Industries Joint Undertaking (BBI JU), under the EU’s Horizon 2020 research and innovation program.

In brief: Miscellaneous
Papa John’s teamed with SnapChat to launch a Spider-Man-themed augmented reality (AR) pizza box experience. Customers can scan an on-pack code through Snapchat that transforms the ordinary cardboard box into a virtual model of famous European landmarks. “This AR encounter will allow Papa John’s to elevate the pizza eating moment by giving consumers a fun, interactive and contextual experience,” Papa John’s Chief Marketing Officer Karlin Linhardt said. “We are excited to be the first pizza company to offer augmented reality through Snapcode on our boxes, giving users the experience of seeing iconic architecture like Big Ben, the Venice canals and Tower Bridge while they enjoy our pizza wherever they choose.”

Miller Lite unveiled its “Cantroller” – an aluminum 12-ounce beer can that transforms into a video game controller. The “Cantroller” can be connected via Bluetooth to most gaming consoles and PC and boasts a lithium-ion battery which lasts up to three hours. Only 200 samples of the “Cantroller” are available and fans must beat comedian Eric Andre at a special event on July 12 in Los Angeles to get their hands on one.

Miller Lite's Bluetooth-activated "Cantroller." Credit Miller LiteRPC Sæplast has introduced an upgraded version of its market-leading container and lid for the harvesting and transportation of fish stocks. The design of the Sæplast DXS335 1,000 liters PUR container has been enhanced to become a more compact and streamlined functional container which improves handling. The reusable cold chain material handling container has been specifically designed for the seafood industry and is manufactured using a 100 percent food-grade polyethylene double wall shell with a polyurethane insulation core.

Royal DSM, a global science-based company in Nutrition, Health and Sustainable Living, launched a new resin product, via the Skins family, to enable silky-feel design and packaging across a wider range of applications. The low viscosity of this resins range makes it well suited for use in flexographic printing or varnishing units. Thanks to its good chemical and abrasion resistance, Skins Silky can be used on a range of papers, cardboards, and plastics and offers effective long-term performance.

By Joshua Poole

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