1. Global Food & Drink TrendsFood & Drink Innovation NetworkPackaging InnovationbyRichard Roberts, Principal ConsultantPira International20 October 2004

2. Innovation WHY INNOVATE? “The only sustainable competitive advantage comes from ‘out innovating’ the competition.” James Moore

3. Innovation • Need to understand: • Consumer perspectives • Customer perspectives • Supplier perspectives

4. 1995 Quality Cost/price Service Customer focus Investment Delivery Flexibility Technology Account Management NPD 2001 Quality Cost/price Service Innovation Partnership Supply chain Flexibility Technology Account Management NPD Innovation

5. Single serve

6. Single serve

7. Innovative shapes

8. Innovative shapes

9. Convenience - easy dispensing

10. Rumblers • Twinpots sleeved together

11. Active & Intelligent Packaging

12. Oxygen scavengers - mechanisms • Iron powder oxidation • Polymer oxidation (metal catalyst) • Ascorbic acid oxidation • Photo-activated organic compound • Enzymatic oxidation • Complexation

13. Sachets Ageless® (MGC) Freshilizer (Toppan) Labels ATCO® (EMCO) Freshmax® (Multisorb) Selected commercially available oxygen scavenging systems

14. Closure liners DarExtend™ (Darex) Pureseal™ (WR Grace) Oxycap (Standa Industrie) Selected commercially available oxygen scavenging systems

15. Films, bottles, trays, cups Shelf plus ™ O2 (Ciba S.C) Oxyguard ® (Toyo Seikan) BindOX ™ (Amcor) Amosorb® DFC (BP Amoco) OS1000/2000™ (Cryovac) OSP (Chevron Phillips) ZerO2™ (CSIRO) Oxygen scavenging plastics

16. Benefits of oxygen scavengers • Extend shelf-life • reduce distribution losses • reduce spoilage claims • Meets consumer demand for natural foods • eliminate or reduce food additives • reduce use of sugar and/or salt • maintain nutritional value • Reduce need for extremely low levels of O2 in MAP • accelerated line-speeds

17. Potassium permanganate Ethysorb™ (StayFresh Ltd) Activated carbon/Pd catalyst Sendo-mate (Mitsubishi Chemical Corp) Activated carbon/bromine-based chemical Hato-fresh (Honshu paper) Disadvantages: Toxicity/migration Non-specific Not suitable for packaging films Ethylene scavengers - mechanisms

18. Ethylene removing films • Everfresh™, Orega™, Profresh™, Peakfresh™ • PE based films containing activated clay

19. CSIRO’s ESP technology • The only ethylene scavenging technology developed for packaging films • Specific • Colour change • Transparent colourless to pink transparent • Overcomes drawbacks of ethylene scavenging sachets

20. Thermochromic Inks • Reversible and irreversible • Various temperature ranges • Limited colours • Combination with conventional ink can reveal messages

21. Reversible ink for use on milk labels

22. TTI’s • Provides irreversible evidence of a physical or physicochemical change, typically a colour or shade change • Function • Provide information on exceeding a temperature threshold or exceeding a cumulative time-temp history • To inform the supply chain and consumer that correct storage conditions have or have not been adhered to • Benefit • Provides reassurance to consumers • Real environment information rather than implied fitness (use/sell by date) • Highlights problems in supply chain • Can reduce shrinkage/wastage

23. Freshness indicators • Provides irreversible evidence of a chemical or enzymatic change, typically a colour or shade change • Function • Provide information on actual degradation spoilage of products • To inform the supply chain and consumer of product freshness • Benefit • Provides reassurance to consumers • Real product information rather than implied fitness (use/sell by date) • Highlights problems in supply chain • Can reduce shrinkage/wastage

26. Current applicationsFindus • Combined technology TTI and RF data tag • One product line monitored in Sweden from early 2003 using Bioett’s TTI • Device the size of a credit card • Cost 15 to 25 Euro Cents • Device records temperature change through supply chain which can be read by hand held scanner • Enzyme based reaction provides data and power source • Large Swedish dairy Skanemejerier are also using these devices

27. Current ApplicationsLifelines (US) • US retailer Trader Joe require suppliers to apply LifeLines TTI’s to any fresh produce supplied to the company • Monoprix the low cost French retailer uses the labels on 175 of its private label chilled products • LifeLines sold over 200 million TTI’s in 2002 and project 25% pa growth

28. Steamers • Steams food • Valve releases excess pressure

29. Self-Heating/Cooling • Tempra • both heating and chilling technologies

30. Self heating/Self cooling packaging

31. Barrier Technologies • Improvements to O2/CO2 barrier • new resins or improved PET resins • coatings • multilayers - overmoulding or co-injection • inclusion of nanocomposites

32. New Resins • Polyethylene naphthalate (PEN) • use on its own or as blend with PET • higher glass transition temperature • barrier improvements about 5x • cost increase • Polyglycolic acid (PGA) • O2 barrier 10x better than MXD6 • similar melting point to PET • FDA approval 2004?

33. Transparent barrier coating - films • SiOx or AlOx • barrier similar to metallised films

34. Transparent barrier coatings - bottles • External • no food contact issues • can be scratch resistant and friction of bottle can be improved • Internal • not easily damaged • protects drink from gases/chemicals in bottle wall • easier to incorporate PCR PET

35. External coatings • Resin coatings from PPG/SIPA, Du Pont, Dow • SiOx - plasma - Krones / Coca Cola / Leybold

36. Internal coatings • Diamond like coatings (carbon), plasma and acetylene • Nissei, Mitsubishi/Kirin, Sidel (ACTIS) • brownish colour • Silicon oxide • plasma Tetra Pak (Glaskin), SIG Schott HiCotec

37. Multilayer • Co-injection of EVOH or MXD6 • Kortec, Owens Illinois, Pechiney • Active • Oxbar - MXD6 + cobalt catalyst • SurShield (Owens Illionois) • Dar Eval - O2 scavenger in EVOH layer

38. Multilayer - active

39. Multilayer • Active • Amosorb 3000 - transparent O2 scavenging copolyester • OSP (Chevron Phillips Chemical) - oxidisable polymer resin cyclohexenyl methyl acrylate + photoinitiator and catalyst

40. Nanocomposites • Improved mechanical properties, eg strength to weight • Improved thermal stability and heat distortion temperature • Improved barrier properties • Better chemical resistance • Better transparency, appearance

41. Nanocomposites • Mitsubishi Gas Chemical Co + Nanocor • nanoclays combined with polymers • silicate clays, 100-1000 x 1nm, large surface area, high aspect ratio • nanocomposites retain flexibility, transparency of unfilled polymer • permeability greatly reduced 2-20x, filler levels 1-5% • improved barrier for film and PET bottles • first application ‘Imperm 105’ in films - still clear • second application ‘Imperm 107’ in bottles - currently hazy • potential cost reduction - fewer layers