Latest Headlines

Go green to live, CPG companies told

December 11, 2008
/ Print / Reprints /
/ Text Size+

Pressure is increasing on consumer goods packagers to adopt green  strategies, even while the value of recycled packaging is plummeting.

A new report from consulting firm A.T. Kearney warns that consumer goods companies should be adopting sustainable strategies as a matter of long-term survival. The report, titled “Rattling Supply Chains: The Effect of Environmental Trends on Input Costs to the Fast Moving Consumer Goods Industry,” predicts that companies in certain consumer goods sectors, including food and beverages, could face a potential reduction of 13% to 31% in earnings by 2013 and 19% to 47% in 2018.

The report describes the concept of “ecoflation,” meaning a long-term price rise caused by environmental factors, in commodities used in food and packaging. These factors include climate change regulations, enhanced forest policies, growing water scarcity and new biofuel policies. The commodities include oil, natural gas, electricity, cereals and grains, soy, sugar, palm oil, and timber.

The recommendations boil down to companies paying more attention to the long-term environmental consequences of their purchasing decisions and other strategies. Practices that should be evaluated include product redesign, backwards supply chain integration, local versus global sourcing, and an upgrade of sustainability standards for the supply base.

Recycling, one of the most popular and highly visible “green” strategies available to consumer goods companies today, is taking a turn for the worse. According to The New York Times, mixed paper is selling on the West Coast for $25 a ton, down from $105 in October; tin is down to $5 from $327. The Columbus (Ohio) Dispatch reports that a ton of cardboard that fetched $105 a few months ago now brings only $22.50, while newspaper has dropped from $95 a ton in September to $5 last week.

The economy is the culprit, especially as it reduces demand in China, the biggest market for American recycled materials. Some municipalities now have to pay to have recycled trash hauled rather than getting paid for it.

On the bright side, even in such cases, it’s still cheaper to recycle the trash rather than pay to have it landfilled, meaning that recycling programs are likely to endure. And glass, which does not depend on the Chinese market as much as other materials, is seeing steadier prices. The Glass Packaging Institute recently affirmed a goal of having all glass containers made with 50% or more recycled material by the year 2013.

Did you enjoy this article? Click here to subscribe to Food and Beverage Packaging

You must login or register in order to post a comment.



Image Galleries

2014 Beverage Breakthroughs of the Year

Beverage packaging innovations huff, puff and blow traditional packaging down.
9/30/14 2:00 am EDT

Achieving High Speeds and Maximizing Productivity on Your Packaging Line

Increase efficiency and reduce costs by deploying high speed robotic picking on your line today.  BPA Delta style robots coupled with Cognex Vision Systems provide the fastest platform for pick and place applications.  BPA Delta Style robots are faster and reduce more human touch points than other available methods.  By utilizing a Cognex Vision System you increase quality and efficiency while reducing mechanical fixturing and labor hour costs.  BPA Delta Style Robots with Cognex Vision Systems quickly, accurately and efficiently load random oriented product into containers, wrappers or hffs machines all “on the fly” without stopping or indexing production, this leads to higher Overall Equipment Effectiveness (OEE)

Food and Beverage Packaging

FBP September 2014 cover

2014 September

Check out the September 2014 issue of Food & Beverage Packaging, with features on flexible packaging, robots in packaging, and much more!

Table Of Contents Subscribe

Dairy Packaging

What dairy foods packaging trends do you see being the most popular in coming years?
View Results Poll Archive

The Food and Beverage Packaging Store

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\FBP\modified-atmosphere.gif
Modified Atmosphere and Active Packaging Technologies

Many factors are relevant in making the proper choice of food packaging material, including those related to shelf life and biodegradability.

More Products

FBP Buyer's Guide

2013 FBP Buyers Guide



Food and Beverage Packaging's Buyer's Guide provides a list of suppliers of food and beverage packaging solutions. 

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


 Facebook iconTwitter iconYoutube icon LinkedIn icong+icon