Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

WESTROCK COMPANY

(WRK)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Plastic to Cardboard: How packaging companies can make the switch

09/21/2021 EST

Sustainability is a topic that has become of up-most importance in the packaging industry, with many companies investing research into alternative packaging materials to plastic - such as cardboard - in hopes of providing an eco-friendlier solution. However, many packaging companies are still unsure on what steps need to be taken in order to make sustainability goals a reality.

In September, food processing company Heinz was one of such companies keen on developing a more sustainable packaging alternative. The company partnered with US-based corrugated packaging company WestRock to launch an eco-friendly packaging solutionfor all of its multipack canned products in the UK.

Packaging Gateway spoke with Kraft Heinz brand manager of soup Anke Von Hanstein and WestRock business leader, EMEA & APAC Mark Shaw, to find out how Heinz switched from plastic to cardboard and how other packaging companies could do the same.

Jessica Paige: Why was a decision made to switch from plastic to cardboard packaging?

Anke Von Hanstein: At Heinz, we aim to make 100% of our packaging recyclable, reusable or compostable by 2025. This prompted us to review our use of traditional plastic shrink wrap on our canned multipacks, which are very popular with British shoppers looking for value and convenience but no longer work with our sustainability pledge.

That's why we partnered with Westrock to develop a new and more sustainable packaging solution, and the Heinz Eco-Friendly Multipack Sleeve was born. It is fully recyclable, comes from sustainably managed forests, uses no glue, and contains 50% less material than a fully enclosed wraparound box and 10% less than a traditional paperboard sleeve design.

Its roll-out will result in the removal of 550 tonnes of plastic from Britain's supermarket shelves every year.

Mark Shaw: At WestRock, we're creating a fibre-based future. Led by passionate problem-solvers applying leading science and technology, we're implementing innovative paper and packaging solutions to address our customers' greatest challenges.

As such, we are seeing a spike in interest in our sustainable paperboard solutions that are designed to replace plastic packaging. In addition to meeting internal goals they have set to improve the recyclability of their packaging, our customers are responding to concerns from consumers and retailers, and to regulation on single-use plastics that is being introduced.

JP: What are the initial steps companies who want to switch from plastic to cardboard need to take?

AVH: For us at Heinz, it was all about working with the right partner with the right skills and expertise from the outset to be able to help us meet our ambition for a new form of sustainable packaging. Our challenge was a big one: we needed to create packaging that was sustainable, of course, but that also offered the same convenience and value to our shoppers as plastic shrink wrap had previously.

The packaging needed to be robust, as multipacks contain up to six cans of Heinz food, each weighing 400g. The new Heinz Eco-Friendly Multipack Sleeve ticks all the boxes and we're very proud of our work with our partner Westrock in developing it.

MS: Replacing plastic with fibre certainly has its challenges. Designing packaging for sustainability starts with understanding both your sustainability priorities and the conditions the package will be exposed to throughout the supply chain.

The right partner can help you understand what's truly needed, then design a package that meets your sustainability goals and holds up well through the supply chain. At WestRock, we work closely with customers to understand these requirements, including testing that replicates supply chain conditions and use situations.

We are focused on improving the sustainability elements of packaging without compromising on performance.

JP: What does the process of changing materials entail?

AVH: It's about working with the right partner and it's also about investment. This innovation is part of a three-year, £25 million investment and installation at the Heinz Kitt Green factory near Wigan in the UK.

The new, specially developed machinery took Westrock around seven months to develop and a week to install at the Heinz factory, then we also had to ensure all staff were trained up to manage the new machinery.

It was a big undertaking but the new Heinz Eco-Friendly Multipack Sleeve delivers on our sustainability goals and has tested very well with retailers and shoppers, so we know it was all well worth it.

MS: Designing a more sustainable package is only half the battle. You also need to consider the implications for your manufacturing environment. For most companies, matching speeds of the current manufacturing process is critical, as is ensuring high uptime and reliability of packaging equipment, and ensuring the new equipment will fit on the plant floor.

Working with a packaging partner that has expertise in both materials/structural design and also packaging automation will help ensure your package can be filled at scale. WestRock worked with Heinz to develop a packaging machine that would allow them to scale their solution and meet key operational requirements.

Our expertise in packaging machinery ensured the final packaging design would not only work well on the store shelf, but also on the plant floor.

JP: What advice would you give to businesses wanting to make the change?

AVH: Our advice would be:

  • Work with the right partner, who can bring their knowledge, skill and expertise
  • Be prepared to invest - changing your whole packaging format can come at a price but it's worth it, both for the planet and for shoppers
  • Don't be afraid to think big!

MS: Packaging changes impact many areas of the business from operations, to supply chain, to brand management. Bring all of the stakeholders to the table to ensure you have alignment on key objectives for the transition including your sustainability goals, the brands and SKUs that will be changing, the volume associated and the operations that will be impacted.

Also, make sure you have a partner that takes steps to understand your supply chain, thoroughly tests solutions, and iterates to optimize packaging performance and sustainability. Find a partner with expertise in materials, structural design AND automation - the interface of these three things will be critical to success.

Lastly, consider the flexibility of the packaging automation that you choose for your transition, thinking through future SKUs and packaging designs, and the ability of your equipment to accommodate those needs.

Disclaimer

WestRock Company published this content on 21 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 October 2021 20:52:02 UTC.


© Publicnow 2021
All news about WESTROCK COMPANY
11/30UBS Adjusts WestRock's Price Target to $59 From $62; Buy Rating Kept
MT
11/19WESTROCK CO MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS ..
AQ
11/18WestRock Announces Participation in Upcoming Investor Conference
BU
11/18INSIDER SELL : WestRock
MT
11/17WestRock Named to Dow Jones Sustainability Index for North America for Second Consecuti..
BU
11/15WESTROCK CO : Change in Directors or Principal Officers (form 8-K)
AQ
11/11Citigroup Adjusts Price Target on WestRock to $60 From $67, Maintains Buy Rating
MT
11/11Credit Suisse Cuts Price Target on WestRock to $70 From $73, Outperform Kept
MT
11/10Deutsche Bank Adjusts WestRock's Price Target to $52 From $56, Maintains Hold Rating
MT
11/10KeyBanc Adjusts WestRock's Price Target to $43 From $45, Keeps Underweight Rating
MT
More news
Analyst Recommendations on WESTROCK COMPANY
More recommendations
Financials (USD)
Sales 2022 20 550 M - -
Net income 2022 1 300 M - -
Net Debt 2022 6 816 M - -
P/E ratio 2022 9,07x
Yield 2022 2,30%
Capitalization 11 533 M 11 533 M -
EV / Sales 2022 0,89x
EV / Sales 2023 0,83x
Nbr of Employees 49 900
Free-Float 98,5%
Chart WESTROCK COMPANY
Duration : Period :
WestRock Company Technical Analysis Chart | WRK | US96145D1054 | MarketScreener
Technical analysis trends WESTROCK COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Last Close Price 43,52 $
Average target price 56,77 $
Spread / Average Target 30,4%
EPS Revisions
Managers and Directors
David B. Sewell President, Chief Executive Officer & Director
Alexander W. Pease Chief Financial Officer & Executive Vice President
John A. Luke Non-Executive Chairman
Amir Kazmi Chief Information Officer
Colleen F. Arnold Independent Director
Sector and Competitors
1st jan.Capi. (M$)
WESTROCK COMPANY-0.02%11 533
INTERNATIONAL PAPER COMPANY-8.45%17 477
SMURFIT KAPPA GROUP PLC20.08%13 311
PACKAGING CORPORATION OF AMERICA-5.31%12 215
MONDI PLC4.19%11 569
SIG COMBIBLOC GROUP AG21.32%9 144