Packaging and Post–Consumption

PACKAGING AND POST-CONSUMPTION

G4-DMA

Purpose

Kryzpo production line, chilean market leaders in stackable potato chips.

Kryzpo production line, chilean market leaders in stackable potato chips.

 

To offer a portfolio of products that are more sustainable throughout their life cycle by including the principles of eco–design and extended responsibility in packaging.

Strategy and Progress 2015

Strategy Progress 2015
Have packaging and packing eco–design processes established in operations. ico_f_verde

The use of the DTV (Design to Value) and SCAMPER (Substitute, Combine, Adapt, Modify/Magnify, Purpose, Eliminate, Reverse/Rearrange) methodologies applied to packaging and post–consumption strategies was strengthened, obtaining savings of 277 tons.

Monitor on a regular basis the behavior of packaging consumption indicators. ico_f_verdeOscuro

The method to measure the Grupo Nutresa consumption indicator for packaging material per ton produced, including all categories of packaging, was reviewed and consolidated.

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From 2010 to 2015, a 8.8% reduction was achieved.

Use more sustainable materials in packagings and packing. ico_f_verdeA

The consumption of more environmentally friendly materials, such as waste pulp from sugarcane to produce folding material, was increased by 75 tons.

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32% of the total weight of all the corrugated material has Forest Stewardship Council (FSC) certification, ensuring that the products originate in sustainably managed forests and a 38% of recycled material.

Design and strengthen post–industrial and post–consumption management programs for packaging material aimed at closing its life cycle. ico_f_amarillo

Actions aimed at reducing and using post–industrial packaging and packing material were maintained, bringing the use to 7,728 tons of this material.

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Tests were carried out to extend the life cycle of the packaging and packing materials in their post–consumption stage and tests were conducted on the use of packaging material in furniture and office equipment, among others.

Risks and Opportunities

Proper management of packaging for a mass–consumption company that produces processed fo is a matter of great interest, given the volume of materials that are discarded once its products have been consumed in the market and that contribute to a deterioration of natural capital.

Changes in consumer preferences that seek products whose life cycle represents a lower impact on the environment – added to the highly competitive environment where Grupo Nutresa operates – can lead competitors to develop lower–impact packaging that adds reputational value and that differentiates their brands. This may, in turn, lead to losses of the market share or restrictions to access markets with more conscious consumers, and lead the Organization to a detriment of its financial capital.

Similarly, in the strategic region where Grupo Nutresa operates, regulations have emerged around the extended responsibility of producers for packaging materials. This means that, eventually, recovery quotas will be required on post–consumption packaging material, which leads to having systems to collect packages, reverse logistics and the recycling thereof.

However, around the issue of packaging, opportunities have arisen for the Company, thanks to eco–design strategies that it has implemented and that generate decreased consumption of packagings by reducing their calibre, measured in the cuts and efficiency in industrial processes. This results in an improved environmental performance of its products, while capturing savings through the reduction of costs.

Future perspective

Nucita dosage and packaging, production plant Nutresa Mexico.

Nucita dosage and packaging, production plant Nutresa Mexico.

 

One of the principal challenges that Grupo Nutresa faces is the paradoxical situation of working permanently to reduce the consumption of packaging materials while responding to changing consumer needs that increasingly demand products packaged in smaller portions or more complex packaging.

Also, having the priority of ensuring the quality and safety of its products, Grupo Nutresa faces a low availability of packaging solutions that offer the characteristics of less environmental impact and – at the same time – protect its products with the standards required and at competitive costs. This means that, in terms of cost or technical characteristics, there is a low feasibility of replacing the packages with low biodegradability or recyclability for others with a better environmental performance.

The challenge facing the Company is to continue advancing in implementing its Sustainable Packaging Policy, while maintaining compliance of its goal by 2020 to reduce consumption of packaging material per ton produced by 12%. Also, a challenge in coming years is to strengthen the eco–design systems, reduce consumption of packaging, as well as the general implementation of the Sustainable Packaging Policy in its operations located outside of Colombia.

GOAL BY 2020:
A 12% REDUCTION OF PACKAGING MATERIAL PRODUCED PER TON

Although in the structural development of packaging, Grupo Nutresa has always included eco–design criteria and achieved significant reductions in tons of packaging material consumed, client and consumer demands to have better displays, more segmented products and longer useful life have led to difficulties in advancing toward compliance of this indicator.

Remarkable achievements

Employees in production line, Compañia de Galletas Pozuelo.

Employees in production line, Compañia de Galletas Pozuelo.

Logo Dow Jones Sustainability IndicesGrupo Nutresa obtained the highest rating in the results of the 2015 Dow Jones Sustainability World Index (DJSI) in the chapter on Packaging.

It is highlighted as a success story, the eco–design applied in the corrugated material in a Biscuit Business reference was significant, thinking about the responsible use of resources and decreasing its consumption. This project allowed that reference to move from a 12–unit corrugated material to one for 24 units. To implement this change, it was necessary to make adjustments in the distribution center and test the acceptancy of the mentioned change among some customers. With this redesign of the corrugated material, it is estimated that there is a 67 ton/year reduction in packaging material consumption.

icono estrella calidadAs another success stories, it is highlighted the project to redesign the packaging of a Coffee Business product using a lighter weight container than the previous one. This simplified the development of a tray that substituted the corrugated box to package this type of products, decreasing the consumption of corrugated cardboard. Also, the internal scoop was eliminated, as this did not generate value to the segment to which the new product was focused. In the redesigning, the plastic screw caps were seized, thus avoiding the development of a mold for this new product. Packaging material consumption decreased by 28% per sales unit; the estimated savings were approximately 146.7 tons.

Progress 2015

Grupo Nutresa’s commitment to sustainable development in relation to the use of packaging materials and its environmental performance is reflected in its Sustainable Packaging Policy.

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SUSTAINABLE PACKAGING POLICY

This policy defines corporate guidelines regarding the use of sustainable packaging materials for finished products in all Grupo Nutresa companies and considers three relevant aspects:

  • Promote the use of biodegradable, recyclable packaging materials as part of a sustainable sourcing strategy that prefers materials manufactured from fibers from certified forests, recycled and recyclable materials.
  • Include eco–design criteria throughout the process to develop new products and redesign existing products, favoring those with less environmental impact, while respecting the financial capital.
  • Work with suppliers throughout the supply chain to promote best environmental practices and support strategies to close the materials cycle.

 

For more information, go to: http://www.gruponutresa.com/sites/default/files/politica_de_empaques_sostenibles_16-04-2015.pdf

REDUCING THE USEA OF PACKAGING

Grupo Nutresa’s goal in reducing consumption of packaging material per ton produced is 12% from 2010 to 2020. Achieving it implies great challenges, given customer and consumer trends of purchasing products packed in smaller portions, which increases the use of packaging per ton.

Since 2013, a systematic process was incorporated into the supply–chain strategy to identify opportunities through the Design to Value (DTV) methodology, which tries to find and conserve what consumers value, and seek alternatives around what is not valued. This methodology contributes to reducing the packaging required and replaces materials and components with those that are more environmentally friendly, reducing the Organization’s impact on natural capital. For the same purpose, we are working with SCAMPER (Substitute, Combine, Adapt, Modify/Magnify, Purpose, Eliminate, Reverse/Rearrange). Thanks to this methodology, in 2015 consumption of packages was reduced by 277 tons, generating significant savings and creating financial capital.

These methodologies have managed to permeate product development from their stages of conception and design. Such is the case of the Jet Squares product, from the Chocolate Business in Colombia, in which packaging material was developed with a reduced thickness than that normally used (going from 38 to 30 microns). This reduction achieved a 21% decrease in the consumption of packaging material and a reduction of 7 kg per ton produced.

Initiatives to reduce packaging material generated a decrease of 8.8% in the consumption of packaging material per ton produced at the end of 2015 compared to 2010.

Quality control of Viena sausage packaging, Meat Business.

Quality control of Viena sausage packaging, Meat Business.

Consumption of Packaging Material G4-EN1 SDG 8 SDG 12

 

Production operator, hamburger line, Meat Business Plant. Bogotá, Colombia.

Production operator, hamburger line, Meat Business Plant. Bogotá, Colombia.

Seeking to enhance the results of the DTV methodology, Grupo Nutresa is working collaboratively with its principal strategic partners in both categories of direct and indirect materials, in order to jointly identify opportunities to optimize the use of resources. Some 50 initiatives have been identified that contributed to the environmental dimension.

The following are the DTV strategies implemented in 2015:

  • Downgauge and packaging size reduction in cardboard for folding materials.
  • Downgauge and packaging size reduction in flexible packaging materials.
  • Reduced codes on cardboard boxes.
  • Downgauge in Thermoforming.
  • Size reduction in labels and promotional stickers.
  • Replacement of film with labels for printed film.
  • Replacement of corrugated boxes for cardboard trays.
  • Elimination of over packagings.

As a result of implementing these initiatives, a reduction of 277 tons of packaging material was achieved, distributed in different categories G4-EN27 SDG 6 SDG 8 SDG 12 SDG 13 SDG 14 SDG 15 as shown in the following graph:

Category / Total kg
146,700
106,670
10,179
6,655
6,529
276,733
Category
Total kg
Containers
146,700
Corrugated Boxes
106,670
Others
10,179
Flexible
6,655
Bifold
6,529
TOTAL
276,733
Business / Total kg
146,700
105,000
8,924
8,743
6,938
427
276,733
Business
Total kg
Coffee
146,700
Biscuit
105,000
Cold Cuts
8,924
Chocolate
8,743
Pasta
6,938
Ice Cream
427
TOTAL
276,733

Saving of packaging material by category

  • Containers 53.0%
  • Corrugated boxes 38.5%
  • Others 3.7%
  • Flexible 2.4%
  • Bifold 2.4%

USING MORE ENVIRONMENTALLY FRIENDLY PACKAGING

Of the total material purchased, cardboard amounted to 55% in weight and achieved a total of 21,121 tons. Given its relevance, Grupo Nutresa works with suppliers of this material so that – through the seal of the Forest Stewardship Council (FSC) – the origin of their raw materials from planted forests is certified. Of the corrugated cardboard used 38% is made with recycled material. G4-EN2 SDG 8 SDG 12

Regarding flexible materials, the Research and Development Areas of the businesses conduct permanent research aimed at using materials with greater recyclability or biodegradability, as long as they meet the technical criteria for preserving the integrity and quality of the products.

These investigations are reflected in different developments, such as the case of replacing packaging materials in three Chocolate Business brands in Colombia, going from bilaminated structures to a mono–layer resin that helps recyclability.

 

Design Workshop in the foldable category of Tresmontes Lucchetti to identify optimization and innovation opportunities within the portfolio.

Design Workshop in the foldable category of Tresmontes Lucchetti to identify optimization and innovation opportunities within the portfolio.

MANAGEMENT OF POST-INDUSTRY AND POST-CONSUMPTION PACKAGING G4-EN28 SDG 8 SDG 12

Comercial Nutresa team at point of sale.

Comercial Nutresa team at point of sale.

 

Aware of the extended responsibility regarding its products, Grupo Nutresa works continuously on the proper management of the final disposal of the post–industrial waste generated, including packaging material.

At production plants, there are programs for the integral management of waste that ensure separation at the source, classification and final disposal of the packaging materials generated in the packaging and packing operations. There is a large group of promoters in the country who use these materials to manufacture plastic hoses, pallets, stakes, furniture and plastic wooden utensils.

In 2015, packaging operations in the plants generated an average of 24.8 tons per month of post–industrial, multi–layer plastic packaging material, which was used by different suppliers. This allowed extending the life cycle of the product and reducing the deterioration of natural capital generated for the production of raw materials that are contained in these packages.

One initiative that demonstrates the implementation of post–industrial material management programs is that of the Cold Cut Business in Colombia which, during 2015, earmarked 1,559 tons of recyclable material – through an ally – for its reincorporation into production processes at Grupo Nutresa´s leading suppliers of cardboard and glass, as well as four tons for its reincorporation in glass melting plants. Similarly, in the Biscuit Business 1,295 tons of different materials were recovered – through a waste–promoter ally – for their reincorporation in the paper and plastic production processes of corrugated material and glass suppliers. Meanwhile, in the Chocolate Business, 100 tons were delivered to partners for packaging recycling and its reincorporation in developing plastic wood and recycling processes.

Additionally, in the Cold Cut Business and in La Recetta, the use of returnable plastic crates, which meet the safety and quality characteristics to pack finished products, continued. This contributed to the fact that 95% of the Cold Cut Business clients use returnable crates, which are made from 100% recycled material.

Likewise, collaborative exploration tests were begun with ProPlanet, a partner, in the search for more alternative uses of the plastic waste to ensure the closure of the flexible packaging cycle and positively impact its disposal in the market.