Weekly Roundup: Tesco debuts recyclable potato packaging, Mondi, Bericap and Smurfit Kappa make acquisitions

04 Jun 2021 --- In packaging news this week, Tesco unveiled fully recyclable packaging for potatoes in Ireland. Mondi secured Olmuksan from International Paper in Turkey, Bericap acquired German aluminum closures supplier Mala, and Smurfit Kappa snapped up Cartones del Pacifico, a leading paper-based packaging company in Peru. Meanwhile, SABIC supplied certified renewable polypropylene resins for Delica coffee capsules.

In brief: Circular solutions
Tesco became the first retailer in Ireland to make its packaging for 1 kg new season potatoes fully recyclable while also reducing the amount of paper used in its 2.5 kg potato packaging. This step-change on packaging will commence on a 12-week trial basis in 100 stores, with plans to roll out the changes to more products if successful. The new paper bags will carry the green “widely recycled” logo and can be recycled at home using the kerbside collection infrastructure.

SABIC announced Delica will be introducing a new range of more environmentally sustainable coffee capsules based on SABIC’s certified renewable polymers for use in its proprietary Delizio capsule machines. Delica will be using certified renewable polypropylene resins in the coffee capsules. The bio-feedstock-based “second generation” materials are part of SABIC’s Trucircle portfolio of circular products and services. The new capsules were introduced in the market in April 2021 and replace fossil-based virgin polypropylene.WeighPack’s Swifty Bagger Side Load automatic bagging machine.

Britvic-owned Irish water brand Ballygowan Mineral Water announced it is moving to 100 percent recycled plastic bottles after the company invested €2 million (US$2.4 million) in operations at Ballygowan’s Newcastle West source in Limerick. The move is a significant part of Britvic’s Healthier People, Healthier Planet sustainability strategy, which will see all GB-made bottles, including Robinsons, Fruit Shoot and Tango also switch to 100 percent recycled PET by the end of 2022.

In brief: Acquisitions and investments
Mondi acquired 90.38 percent of the outstanding shares in Olmuksan International Paper Ambalaj Sanayi ve Ticaret from International Paper for a total consideration of €66 million (US$80 million). Olmuksan is a leading corrugated packaging player in Turkey, listed on the Istanbul stock exchange.

Mondi also signed a new €750 million (US$908 million) 5-year revolving multi-currency credit facility agreement (RCF) to refinance the existing €750 million facility due to mature in July 2022. The deal includes an option to extend the RCF by one or two years with each bank’s approval. The RCF incorporates key environmental sustainability targets linked to MAP2030, classifying the facility as a “Sustainability Linked Loan.”Volpak’s flagship “SC+” machine for preformed pouches.

Bericap acquired Mala Verschluss-Systeme in Germany, extending its product portfolio to include aluminum closures. Mala is a family-owned company based in Bad Liebenstein, Thuringia. In 2020, it generated annual revenue of approximately €40 million (US$48 million) from the sale of aluminum screw cap closures for spirits, wine, non-alcoholic beverages and edible oil.

Smurfit Kappa acquired Cartones del Pacifico, a leading paper-based packaging company in Peru. The acquisition represents an important milestone for the company as it expands its footprint in the Americas from 12 to 13 countries and builds on its leadership position as the largest pan-regional supplier in Latin America. Emusa Group has acquired Smurfit Kappa’s flexible packaging business in El Salvador as part of the transaction.

Smurfit Kappa also announced an investment of €11.5 million (US$13.9 million) in its Zülpich paper mill in Germany, which will fund a fuel conversion project aimed at significantly reducing the plant’s CO2 emissions. The plant currently produces approximately 500,000 tons of paper annually. The investment will allow a major redesign of the plant’s multi-fuel boiler, providing a more sustainable fuel source for steam and electricity generation at the mill. An integrated steam re-use system, which optimizes energy usage, will replace coal as an energy source, and coal will be phased out. The redesigned boiler is expected to be operational by mid-2022.WaWaah Water packaged in SIG’s combifitPremium carton pack.

In brief: Packaging machinery
WeighPack unveiled its new Swifty Bagger Side Load automatic bagging machine, offering new features for customers requiring product orientation within a pre-made pouch. This compact machine can load pillow and gusseted bags ranging from 150-350 mm in length and 120-260 mm in width, either with zippers or without. Additional options are available to provide a nitrogen gas flush for customers looking to increase product shelf life and a labeling configuration to print expiration dates on the bag.

Volpak, a Coesia company specializing in manufacturing HFFS machines for consumer goods, continued the evolution of its flagship “SC+,” a continuous movement machine with “superior performance.” The latest version of the machine has been designed for preformed pouches and features a high level of automation for high-quality packaging. The machine is designed mainly for the Asian market across different industries, from home to personal care to food, both for solid and liquid products.

In brief: Carton packed water
Belgian start-up The Happy Healthy Kids Company launched a healthy water drink under its WaWaah Water brand packaged in SIG’s combifitPremium 1,000 ml carton pack with Signature Full Barrier packaging material, where the polymers are linked to renewable, forest-based raw materials. The small amount of polymers used are 100 percent linked to tall oil, a residue extracted from wood in the paper-making industry, as a forest-based feedstock.

By Joshua Poole