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Edition 03/06<br />

sig.biz/combibloc<br />

Brands<br />

Long live diversity<br />

Markets<br />

Germany


Editorial<br />

Dear Readers,<br />

Imagine that from one day to the<br />

next, all brands disappeared worldwide.<br />

What should one buy? Which make to<br />

trust? How to take decisions? In other<br />

words: only brands allow products to stand<br />

out among the mass of others on offer and<br />

differentiate them unmistakably. Brands are<br />

the outright key to market success. Any<br />

company that recognises this fact will not<br />

be willing to jeopardise this invaluable asset:<br />

the association of its products with a promise<br />

on which the consumer relies. One<br />

aspect is ultimately essential for the future<br />

and success of any brand: consumer confidence.<br />

Read more about the subject in our<br />

title story.<br />

In this issue, our section on markets is<br />

focused on two interesting countries. On<br />

the one hand, the emphasis is on the rapid<br />

economic upswing of Kazakhstan which,<br />

increasingly, is developing into a commercial<br />

hub and marketplace between West and<br />

East, between Europe and Asia. On the<br />

other, we examine the extremely dynamic<br />

situation on the German market and the<br />

perspectives for <strong>SIG</strong> <strong>Combibloc</strong>.<br />

Last but not least, our environment<br />

section includes a report on the Children’s<br />

Conference in Malaysia, organised by<br />

the UNEP, United Nations Environment<br />

Programme, and the active participation of<br />

<strong>SIG</strong> in that event.<br />

If you prefer to click rather than read,<br />

I can strongly recommend a visit to our online<br />

magazine. At www.sig.biz/combibloc<br />

Imprint<br />

sig.biz/combibloc, winter 2006 Published by <strong>SIG</strong> <strong>Combibloc</strong> International AG, Laufengasse 18, 8212 Neuhausen am Rheinfall, Switzerland Editors Dr Bettina Horenburg,<br />

Martina Loewe, Attakrit Singhaseni, Heike Thevis, Wojciech Wroczynski, Darja Safronova, Luciana Galvão, María José Madroñal, Dr Isabella Classen, RTS Rieger Team<br />

Concept and design RTS Rieger Team Werbeagentur GmbH, Düsseldorf Pictures <strong>SIG</strong> <strong>Combibloc</strong>, RTS Rieger Team, Masterfile, Getty Images, Jupiter Images, Zefa Lithography<br />

Weß + Lüer GmbH, Willich Printed by Meier Print Schaffhausen, Feuerthalen Contact Phone: +41 (0)52 674 7716, Fax: +41 (0)52 674 6556, E-mail: bettina horenburg@sig.biz<br />

Internet www.sigcombibloc.com sig.biz/combibloc is published in German, <strong>English</strong>, Spanish, French, Italian, Portuguese, Polish, Russian and Chinese. All rights reserved. Articles<br />

indicated as being contributed by other writers do not necessarily reflect the views of the publisher. No part of this publication may be reproduced or electronically distributed<br />

without the prior permission of the editorial team.<br />

sig.biz/combibloc 03/ 06<br />

you will not only find all the articles<br />

contained in our customer publication, but<br />

also a wealth of other relevant data and<br />

information.<br />

Enjoy your personal issue of sig.biz/combibloc.<br />

Sincerely yours,<br />

Rolf-Dieter Rademacher<br />

CEO


Contents Seite<br />

Editorial & imprint 2<br />

News<br />

Première for combifitMidi in Spain 4<br />

Spanish milk producer Leche Celta presents an innovative new package<br />

for its product “Celta Energía y Crecimiento” (energy and growth).<br />

For modern nomads 5<br />

The company Hanmi Whole Soymilk Co. Ltd. has launched a new soup concept<br />

on the South Korean market – conveniently packaged in combiblocMini.<br />

Title<br />

The power of brands 6<br />

Why trust is the most valuable asset and promises have to be kept.<br />

Profile<br />

Centenary of the dairy in Łowicz 14<br />

Interview with Chairman Jan Da˛ browski about the history of<br />

the dairy and its future perspectives.<br />

Facts & Trends<br />

Babies thrive on quality 18<br />

The carton has become internationally established as a convincing<br />

packaging system for the sensitive segment of ready-to-consume baby foods.<br />

Cultures<br />

Flavours of Thailand 22<br />

Cooking with combibloc: two recipes from Thailand’s rich culinary tradition.<br />

Markets<br />

Boom in Eurasia 24<br />

Dynamic development in Kazakhstan and <strong>SIG</strong> <strong>Combibloc</strong>’s activities in the market.<br />

A market in transition 28<br />

Full of new challenges: the German market is moving.<br />

What is happening at <strong>SIG</strong> <strong>Combibloc</strong>?<br />

Environment<br />

<strong>SIG</strong> supports UNEP International Children’s Conference 32<br />

Financially and practically, <strong>SIG</strong> Group sponsors a conference in Malaysia<br />

organised by the United Nations Environment Programme.<br />

Articles marked with these pictograms also have the following features in the online magazine:<br />

Contents 2/3<br />

Texts Links<br />

Images Audio files Videos<br />

sig.biz/combibloc 03/ 06


News Section/Rubrik<br />

Première for combifitMidi<br />

in Spain<br />

In October 2006, Spanish milk producer Leche Celta presented the new package for its product<br />

“Celta Energía y Crecimiento” (energy and growth): combifitMidi<br />

Producers of dairy products are also<br />

constantly seeking ways and means to differentiate<br />

their merchandise from that of the<br />

competition. For this reason, <strong>SIG</strong> <strong>Combibloc</strong><br />

conducted a market survey to compare<br />

diverse new formats for the 1-litre volume<br />

against existing ones. One of the most important<br />

results revealed that housewives<br />

perceive combifitMidi as a modern and innovative<br />

packaging form that is outstandingly<br />

suitable for premium dairy products.<br />

New design and décor<br />

As recently as 2005, the Spanish dairy<br />

products producer, Leche Celta, announced<br />

its interest in this format, and now – barely<br />

one year later – the filling line is already<br />

installed and operational. The benefits of the<br />

sig.biz/combibloc 03/ 06<br />

Unique in Spain: Celta Energía y Crecimiento.<br />

A milk grade specifically for children, packaged<br />

in combifitMidi (1,000 ml).<br />

new format – modern, innovative design concept,<br />

ease and convenience of handling –<br />

immediately appealed to the Spanish enterprise.<br />

The closure solution combiTwist was<br />

also extremely well received. In October, the<br />

customer relaunched its product “Celta Energía<br />

y Crecimiento” (energy and growth) in<br />

combifitMidi fitted with the practical screw cap.<br />

Hitherto, this special grade milk for children<br />

has been marketed in combiblocSlimline.<br />

For healthy growth<br />

Celta Energía y Crecimiento is a milk<br />

grade that is enriched with calcium and<br />

twelve vitamins; it is highly suitable for<br />

growing children and juveniles. Milk plays<br />

a decisive role in this phase of physical<br />

and mental development. It is an ideal<br />

complement in achieving a balanced and<br />

varied diet.<br />

In order to support the market launch<br />

of this product, two appropriate special<br />

supplements were produced for selected<br />

specialist magazines. In the foreseeable future,<br />

Leche Celta intends to roll out a new<br />

premium UHT milk product on the Spanish<br />

market packaged in combifitMidi.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/news


For modern nomads<br />

Just right for today’s fast-moving world, Hanmi Whole Soymilk Co. Ltd has launched a<br />

new soup concept in combiblocMini on the South Korean market. A time-saving and<br />

yet healthy substitute meal for busy working people, the concept is perfectly attuned to<br />

the taste buds of Asian consumers.<br />

Rich in valuable fibre, KongGukMul<br />

brand soy soup is served hot with noodles for<br />

breakfast. This innovative concept in ready<br />

meals appeals particularly to the burgeoning<br />

health-conscious consumer sector – a group<br />

that is constantly growing. In Asia, sales of<br />

soy products increased by 27 per cent in 2005.<br />

Thus, Hanmi’s soy soup has all the potential<br />

for becoming a true bestseller.<br />

Soup to go<br />

The Asian palate is accustomed to the<br />

‘beany’ taste of soy beans and appreciates<br />

the distinctive flavour. Unlike in other parts<br />

of the world, no additives are needed to disguise<br />

the natural flavour of the soup. Hanmi’s<br />

soup is manufactured to a new recipe, giving<br />

it the consistency of a light broth. Packaged<br />

in the slim combiblocMini carton, the product<br />

can be transported easily and securely.<br />

Particularly hungry consumers, or anyone<br />

in a hurry, can drink the soup snack directly<br />

from the carton using a straw. It is ideal as<br />

a time-saving meal replacement and as a<br />

supplement for a balanced, nutritious diet.<br />

Consequently, Hanmi soy soup is the<br />

perfect alternative for modern nomads –<br />

working people who do not want to squander<br />

their limited time with cooking complicated<br />

meals.<br />

Proven recipe for success<br />

Traditional stone-ground soybean soup<br />

has been served successfully for generations.<br />

Now, by blending tradition with technology,<br />

Hanmi has created the spirit of the times for<br />

sig.biz/combibloc News 4/5 5/5<br />

A fully-fledged meal for anyone on the go: soybean<br />

soup from Hanmi Whole Soymilk Co. Ltd.,<br />

conveniently packaged in combiblocMini.<br />

the modern consumer: a time-honoured<br />

recipe combined with cutting-edge packaging<br />

technology.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/news<br />

sig.biz/combibloc 03/ 06


Title<br />

sig.biz/combibloc 03/ 06


The power of brands<br />

Just imagine if all brands disappeared overnight. What to buy? Which make to trust?<br />

How to take decisions? Brands are an integral part of our everyday life; they are ubiquitous.<br />

Whether products or services are involved, we depend on brands and trust them. Why exactly?<br />

Title 6/7<br />

sig.biz/combibloc 03/ 06


Title<br />

Brands make life easier and provide a<br />

better overview. Brands save time because<br />

they are information vehicles and relieve<br />

the consumer of having to check, question<br />

and classify everything. Brands reduce the<br />

risk of poor purchase decisions because<br />

branded products promise consistently high<br />

quality. Brands also have perceived benefits<br />

because they highlight the individuality<br />

of the consumer. They support the selfportrayal<br />

of individuals and demonstrate<br />

their affiliation with a specific social group.<br />

Any woman will confirm that a handbag<br />

from Louis Vuitton is simply something<br />

more than just a handbag.<br />

From the heart<br />

In branding, the emotional element is<br />

everything. When the differences between<br />

attributes of two competing products are<br />

marginal, then it is the consumer’s emotions<br />

that forces the decision: which brand promises<br />

what I am seeking? Appeal or prestige,<br />

individuality or adventure, quality or price<br />

advantage? Decisions in favour of a brand<br />

are decisions of the heart, because any well-<br />

sig.biz/combibloc 03/ 06<br />

managed brand is a being with a heart of its<br />

own. The analogy between human beings<br />

and brands is not new. In the 1930s already,<br />

Hans Domizlaff, the doyen of marketers,<br />

claimed that a brand has a human face.<br />

At eye level<br />

In this context, marketing has less and<br />

less to do with selling. Marketing means<br />

appealing to customers at the most sophisticated<br />

level. Successful brands no longer<br />

simply stand for a product. They reflect a<br />

lifestyle, illustrate the consumer’s world, convey<br />

values, embody emotions and desires,<br />

suggest authenticity and trust. When this<br />

balancing act is achieved, customers remain<br />

loyal to that brand.<br />

Through brands, consumers automatically<br />

associate the message with being plausible<br />

and authentic. This is a process that may<br />

take years to establish successfully, because<br />

consumers must be able to relate to all statements<br />

made about the brand. To sustain this<br />

perception, brands must constantly adapt to<br />

any changes in the market: a tightrope act<br />

between dynamics and identity.<br />

Image is nothing? Not quite. Brands have<br />

perceived benefits because they highlight the<br />

individuality of the consumer.


Consequently, the secret of marketing<br />

lies in authenticity. No matter what “adaptations”<br />

are involved, there must always be a<br />

bridge to the effective image. How is this<br />

done? How does one go about building a<br />

brand nowadays?<br />

Breaking the mould<br />

A brand is a name, concept, message,<br />

symbol, shape, or any combination of those<br />

elements, that make products or services<br />

stand out. It differentiates them from the<br />

competition. As a first step, a brand communicates<br />

the origin of the product, because<br />

only the brand owner has the right to market<br />

a product under that specific name. The goal<br />

of brand building is to create consumer preference<br />

for a product that is competing against<br />

similar – and hence, interchangeable – ones<br />

such as chocolate, petrol, detergents or paper<br />

tissues. Providers of branded articles aim at<br />

generating brand consciousness among consumers,<br />

thereby establishing brand loyalty.<br />

Such products emerge from the grey mass<br />

and assume an identity of their own. Brand<br />

loyalty is reflected in greater price tolerance<br />

on the part of consumers. As a rule, they are<br />

more willing to pay a certain premium for<br />

the benefits provided by the brand. Consequently,<br />

branded products are less vulnerable<br />

to attack from competitors.<br />

Brand recognition<br />

Launching a brand is not simply a question<br />

of designing a logo. Converting a product<br />

into a brand first requires brand recognition:<br />

there must be consumer awareness. Existing<br />

consumer perception thresholds may have to<br />

Title 8/9<br />

be overcome. Moreover, communication must<br />

aim at generating brand likeability. Only<br />

when these first two steps have been attained<br />

can the third and critical phase be achieved:<br />

use of the brand by consumers – and hence,<br />

the generation of sales and profits for the<br />

manufacturer.<br />

Brand awareness is not easy to create<br />

because the recall capacity of any individual<br />

is limited. This is all the more applicable considering<br />

that the volume of printed information<br />

doubles every four or five years, when<br />

ever more people have Internet access to<br />

information worldwide and consumers are<br />

confronted with a growing flood of advertising<br />

and product data. Nowadays, consumers<br />

only absorb those messages they perceive as<br />

important. Consequently, even if they are<br />

noticed initially, very few messages achieve<br />

sig.biz/combibloc 03/ 06


Title<br />

the transition leap from the consumers’<br />

short-term memory into their long-term one.<br />

Precisely which messages actually enter a<br />

consumer’s long-term memory is dependent<br />

on a number of individual factors. These<br />

include the consumer’s level of interest,<br />

earlier experiences and emotions at the time<br />

of receiving the message. Hence, brands may<br />

be considered as abbreviations in the longterm<br />

memory. Once they have succeeded<br />

in overcoming the perception threshold,<br />

the consumer links numerous associations<br />

with the brand that, ideally, lead to brand<br />

likeability and brand usage.<br />

Name of the game<br />

Brand building is invariably a long-term<br />

affair and comprises a diversity of measures<br />

and initiatives. A brand policy provides a<br />

bundle of instruments with which to convert<br />

a product into a brand. A key role is played<br />

by the brand name: the verbally conveyed<br />

element in a brand-building exercise. Given<br />

its significance, selecting the right name is<br />

vitally important. The name must be unmistakable,<br />

easy to recognise and pronounce,<br />

and to memorise. Ideally, a brand name will<br />

sig.biz/combibloc 03/ 06<br />

trigger positive product and experience associations<br />

among consumers and suggest<br />

product benefits to them. With globalisation,<br />

it is becoming increasingly difficult to fulfil<br />

those requirements. Obviously, the name<br />

must sound right and trigger positive associations<br />

in many languages and not just one.<br />

Moreover, the name must be suitable for dissemination<br />

via the Internet and not already<br />

be occupied.<br />

Making its mark<br />

The logo is an important element of the<br />

brand-building process. However, whereas<br />

it can be perceived, it cannot be communicated<br />

verbally. It possesses brand-typical<br />

visual attributes for rapid perception and<br />

recognition. A logo should be as unmistakable<br />

and as easy to recognise as the brand<br />

name itself. It should also generate positive<br />

and product or application-typical associations.<br />

As a branding element, shape can relate<br />

to the design of both the product and the<br />

packaging. Moreover, specific details of a<br />

product can exhibit characteristic shapes (e.g.<br />

the radiator grilles of certain automobile


Brands no longer simply stand for a product.<br />

They reflect a lifestyle, convey values and<br />

imply confidence.<br />

marques). When creating shapes, in addition<br />

to consumer perception and recognition,<br />

aesthetic aspects as well as economic and<br />

technological factors have to be taken into<br />

account. With products coming into direct<br />

and frequent physical contact with the<br />

consumer, ergonomic qualities can be of<br />

significance.<br />

Sharper profile<br />

In addition to the optimal exploitation<br />

of the available instruments, a successful<br />

branding policy also depends on the strength<br />

of the market presentation, i.e. establishing<br />

a clear and unmistakable brand profile. Equally<br />

important is consistency in communicating<br />

Title 10/11<br />

the brand. The branding concept must be<br />

seamless and sustained in its implementation.<br />

Only when this interaction functions smoothly<br />

can a lasting brand be built successfully.<br />

Well worth the effort<br />

In the marketplace, successful brands<br />

represent substantial assets that are reflected<br />

in brand awareness, brand penetration,<br />

brand image and ultimately corporate image.<br />

Producers can build on this capital and its<br />

related quality associations to expand a<br />

product range more rapidly and successfully<br />

than unknown providers. Many companies<br />

tend to assume that, unlike more<br />

anonymous items, branded products are not<br />

sig.biz/combibloc 03/ 06


Title<br />

sig.biz/combibloc 03/ 06


The objective of brand building is to generate<br />

consumer preference for a specific product<br />

that exists among many similar and essentially<br />

interchangeable ones.<br />

subject to life-cycle trends or, at least, enjoy<br />

a longer life cycle. America’s Interbrand<br />

Group has developed a system that allows<br />

them to assess the value of a given brand.<br />

In this system, the economic income of the<br />

overall market, the expected market share<br />

of the branded product and the risk profile<br />

of the budgeted revenue from that product<br />

are considered.<br />

All brand, or what?<br />

There is hardly a business venture where<br />

branding is not practised. Nowadays, the technique<br />

is no longer applied to single products<br />

or product families, but more often than not<br />

for the corporate branding of entire groups.<br />

Furthermore, branded articles are not only<br />

restricted to consumer goods, but are found<br />

in virtually every known market sector.<br />

Branding is even applied in areas that are<br />

outside the classic provision of services such<br />

as electricity or water supplies, for example,<br />

sports clubs like Manchester United or sports<br />

events such as Formula 1 racing. In the meantime,<br />

even people are being marketed as<br />

brands, just think of Michael “Air” Jordan or<br />

Claudia Schiffer. Even Germany’s former<br />

Chancellor Gerhard Schröder claimed in his<br />

1998 election campaign, “I am a brand!”. Tiny<br />

computer chips (“Intel inside”), institutions<br />

like the Nasdaq or some famous <strong>English</strong><br />

universities, certain stocks, “social economy”<br />

as an organisational principle, popular tourist<br />

locations such as St Moritz, or even entire<br />

nations, are promoted as brands.<br />

Esperanto of the global economy<br />

Evidently, the concept of branding is so<br />

attractive and adaptable that practically no<br />

aspect of everyday life is considered unworthy<br />

of being classified as suitable for<br />

building up into a brand. This is readily confirmed<br />

by the steadily growing number of<br />

global brands, i.e. those branded products<br />

that enjoy worldwide acceptance. In some<br />

cases, brand names are so widespread and so<br />

well received that one is tempted to classify<br />

them as a global language that, although<br />

largely symbolic, is readily understood everywhere.<br />

Can you imagine anyone who is not<br />

able to associate the cursive white script on<br />

a red background, the yellow domed “M” or<br />

the cowboy taking a break for a smoke with<br />

their respective brands? Exactly!<br />

Title 12/13<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/title<br />

sig.biz/combibloc 03/ 06


Profile<br />

sig.biz/combibloc 03/ 06


Centenary of the dairy in Łowicz<br />

The District Cooperative Dairy in Łowicz is one of the leading milk processors in the<br />

Polish market. On the occasion of its centenary, we spoke to the Chairman of the dairy,<br />

Jan Da˛ browski, about the how the enterprise was founded and has developed.<br />

sig.biz/combibloc: Round birthdays are<br />

always a good opportunity to reflect on what<br />

has been achieved to date. Can you tell us<br />

about the early beginnings of the Łowicz<br />

Dairy?<br />

Jan Da˛ browski: The establishment and<br />

development of the District Cooperative<br />

Dairy in Łowicz is closely tied to the history<br />

of the entire region. The Łowicz region itself<br />

can look back on a long tradition of highly<br />

diverse cooperatives. At the beginning of the<br />

twentieth century already, farmers began<br />

to organise themselves, thereby laying the<br />

foundations for the cooperatives. In the years<br />

1918–39, Łowicki Powiat included 246 villages,<br />

12 estates, 5 settlements and 2 cities<br />

Being interviewed: Jan Da˛ browski,<br />

Chairman of the District Cooperative Dairy<br />

in Łowicz (Poland).<br />

Glowno and Łowicz. At that time there were<br />

19,000 farms with an average of 46 cattle<br />

per 100 hectares. Wladyslaw Grabski, Prime<br />

Minister of Poland and initiator of a currency<br />

reform, was one of the pioneers of the<br />

cooperative movement in the Łowicki region.<br />

Also among the founders of the dairy cooperatives<br />

were former students of the Blich<br />

Agricultural College. From 1890 onwards,<br />

and particularly after 1918, when Poland became<br />

independent, the number of small dairy<br />

cooperatives grew steadily. 1930 saw the establishment<br />

of the Dampf Dairy Cooperative,<br />

domiciled in Blich, Łowicz. In 1935, the dairy<br />

was transformed into the District Cooperative<br />

Dairy Promien (the ray) with Antoni Bolimowski<br />

as its General Manager.<br />

Profile 14/15<br />

sig.biz/combibloc: Please tell us about<br />

the post-war developments of the Łowicz<br />

Dairy, up to the present day.<br />

Jan Da˛ browski: In 1951, the government<br />

took control of the Łowicz Dairy which,<br />

like all other Polish dairies, operated on the<br />

basis of the prescribed milk quotas that the<br />

farmers were required to deliver. Subsequently,<br />

the company lost money as the milk<br />

was sometimes sold at lower prices than it<br />

had been purchased from the farmers.<br />

Some years later, in 1957, the cooperative<br />

was re-established and received a new<br />

charter. In 1971, a brand-new and modern<br />

production facility, located on Przemyslova<br />

Street, came on stream. Then, in 1981, the<br />

sig.biz/combibloc 03/ 06


Profile<br />

Milk products from the dairy in Łowicz filled in<br />

cartons from <strong>SIG</strong> <strong>Combibloc</strong>.<br />

dairy began operating under the name of<br />

Okregowa Spoldzielnia Mleczarska w Łowiczu<br />

(District Cooperative Dairy in Łowicz), the<br />

style that is still used today. Since 1980, the<br />

dairy has sold around 106 million litres of<br />

milk of which 60% were category-A quality.<br />

sig.biz/combibloc: How is District Cooperative<br />

Dairy in Łowicz coming to terms<br />

with the free market economy?<br />

Jan Da˛ browski: After 1990, the dairy<br />

saw itself confronted with a new challenge<br />

and had to generate an effective strategy with<br />

which to compete in a free market environment.<br />

At the beginning of the 1990s, revenues<br />

from milk production fell sharply and<br />

this led to a drop in milk production. At the<br />

same time, the Polish market was flooded<br />

with low-quality imported dairy products.<br />

The dairy had to expand its portfolio with<br />

sig.biz/combibloc 03/ 06<br />

new and attractive products in order to regain<br />

a competitive edge. The acquisition of equipment<br />

to fill UHT milk in aseptic cartons was<br />

one of the most significant and, indeed, one<br />

of the best decisions in that respect. We chose<br />

filling machines from <strong>SIG</strong> <strong>Combibloc</strong>. Thanks<br />

to that decision, the District Cooperative<br />

Dairy in Łowicz is one of the few dairies in<br />

Poland that can offer UHT milk in cartons.<br />

Growing demand for this milk grade led to a<br />

further expansion of our production facilities.<br />

The first UHT line already amortised itself<br />

within two years, which is why the cooperative<br />

decided to purchase additional production<br />

equipment. By 2005, the Łowicz Dairy<br />

was operating no less than seven machines<br />

from <strong>SIG</strong> <strong>Combibloc</strong>, all filling UHT milk<br />

products in various formats. The dynamic<br />

development of the dairy is best reflected in<br />

the most recent investments: in the year<br />

2000, the company decided to build a large-<br />

scale warehouse for the storage of finished<br />

UHT products. A fully automatic rotary pasteurisation<br />

installation started operation here<br />

in 2002. We have installed a second, autonomous<br />

technical equipment flushing system<br />

as well as a computer-controlled fermentation<br />

room where we make products such as<br />

creams, kefir, puddings and iced coffee. In<br />

2003, we added a new cheese-making shop<br />

and a cheese-packing department. If we are<br />

talking about the development of the District<br />

Cooperative Dairy in Łowicz, we should not<br />

omit to mention the other dairies that<br />

we have taken over: 2005 we acquired the<br />

District Cooperative Dairy in Torún; 2006<br />

we expanded further by buying the District<br />

Cooperative Dairy in Lublin.<br />

sig.biz/combibloc: What effect has Poland’s<br />

membership in the European Union<br />

had on your dairy?


Jan Da˛ browski: The superior quality of<br />

our products has always been a priority, even<br />

though this meant higher costs. We fulfil<br />

all the sourcing and processing standards<br />

imposed on EU suppliers. This is evidenced<br />

by the various certifications that we have<br />

obtained: HACCP, IFS, BRC and ISO 9001.<br />

Poland’s membership in the EU does not<br />

have to be associated solely with added costs<br />

and higher milk-buying prices, but also with<br />

access to EU funding and markets.<br />

sig.biz/combibloc: How important are<br />

export markets for the District Cooperative<br />

Dairy in Łowicz?<br />

Jan Da˛ browski: In 2005, exports represented<br />

some 23% of our total turnover<br />

volume, and they continue to rise steadily.<br />

Nearly all the products we export are sold<br />

on the EU markets. The primary hurdles to<br />

The dairy in Łowicz is one of the most dynamic<br />

and modern-equipped producers in Poland.<br />

exporting our products to the East are the<br />

high export tariffs and the extremely long<br />

refund times. Of course, we also have the<br />

GOST certificate for exports to the East.<br />

sig.biz/combibloc: Which of your products<br />

are most important for the District Cooperative<br />

Dairy in Łowicz?<br />

Jan Da˛ browski: The product range offered<br />

by the District Cooperative Dairy in<br />

Łowicz includes some 100 items that can<br />

be split into three main categories: UHT<br />

products, mature cheeses and other dairy<br />

products. The UHT products are our flagship.<br />

Both the Łowickie brand, under which we<br />

sell our milk and cream, and the Łowiczanka<br />

logo – a woman in the typical traditional<br />

costume of the Łowicz region – are known<br />

throughout Poland. Our share of the Polish<br />

market for UHT cream is 35%, while we hold<br />

Profile 16/17<br />

around 12% of the UHT milk segment. If<br />

we add the volume of milk that we produce<br />

for own brands, then our share would easily<br />

reach 20%. We rank third among the nation’s<br />

producers of dairy products.<br />

sig.biz/combibloc: What hopes do you<br />

have for the future of the dairy?<br />

Jan Da˛ browski: A stable agricultural and<br />

cooperative policy with suitable regulations<br />

within Poland that will allow our dairy to<br />

continue flourishing in the long term.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/profile<br />

sig.biz/combibloc 03/ 06


Facts & Trends<br />

sig.biz/combibloc 03/ 06<br />

Junior has arrived and the proud parents now have to think<br />

about the most suitable baby food for their offspring.


Babies thrive on quality<br />

When it comes to nourishment for their offspring, parents quite rightly set high standards.<br />

High-quality food products contribute significantly to the healthy development of babies<br />

and small children. Whether milk, mash, purées, tea, soups, water or juices – the choice of<br />

nourishment is an important issue and sometimes even an emotional one.<br />

There is no single definition of the<br />

“correct” form of nutrition. Whether a child<br />

should be breastfed during its first months,<br />

drink ready-to-consume formulas or special<br />

hypoallergenic food products is an individual<br />

choice and depends essentially on what<br />

is most suitable for the infant involved.<br />

Optimally nourished with breast milk<br />

When a mother is able and willing to<br />

breastfeed, her mother’s milk naturally<br />

provides the infant with important nutrients<br />

that it needs for its healthy development.<br />

Breast milk contains easily digested protein,<br />

fats, carbohydrates and all other vital vitamins<br />

and minerals. In a natural process, the<br />

mother’s milk adapts its composition to meet<br />

the changing needs of the child. Increasingly,<br />

for example, it contains antibodies that protect<br />

the infant against allergies.<br />

Mother’s milk also encourages growth<br />

of the bifidus flora. This is made up of healthy<br />

intestinal bacteria, which regulate digestion<br />

and protect against germs and infections.<br />

Nurturing at the breast also helps the baby’s<br />

jaw development which, in turn, is beneficial<br />

to the positioning of the infant’s teeth.<br />

The balanced alternative<br />

Not all mothers, however, are able or<br />

willing to breastfeed. The alternative in such<br />

cases are baby foods, which are industrially<br />

formulated to provide optimal nutrition.<br />

It is vital that the products are matched to<br />

the requirements of the child during each<br />

development phase, i.e. that it receives the<br />

Facts & Trends 18/19<br />

right amount of nutrients. Another key factor<br />

in selecting baby foods is whether the<br />

infant is sensitive to allergies. According to<br />

studies, the consumption of so-called hypoallergenic<br />

products reduces the susceptibility<br />

of infants to allergies by as much as 50%.<br />

In hypoallergenic milk, for example, the<br />

protein of cow’s milk is hydrolysed, i.e. it<br />

is reduced into minute fractions that are<br />

not recognised as foreign matter by the<br />

child’s body. Consequently, no antibodies<br />

are produced.<br />

Convenient and wholesome<br />

Because of changing family lifestyle<br />

patterns in regions such as Eastern Europe,<br />

Africa, China, the Middle and Far East, the<br />

importance of fully enriched, industrially<br />

sig.biz/combibloc 03/ 06


Facts & Trends<br />

Pasteur Milk Co. Ltd. of South Korea<br />

offers soy milk for babies and infants<br />

in combiblocCompact (180 ml).<br />

produced baby foods with extended shelf life<br />

is growing. For example, working mothers<br />

who wish to return to their job after the<br />

infant-care phase, appreciate the convenience<br />

and time-saving aspects of ready-to-consume<br />

baby foods. Another aspect is that the number<br />

of children susceptible to allergies is increasing<br />

on a worldwide scale. Special food products<br />

for children that are permanently monitored<br />

for quality and formulation consistency provide<br />

parents with the assurance that their<br />

offspring are receiving the right anti-allergens.<br />

Industrially manufactured baby foods are subject<br />

to extremely strict legal regulations.<br />

Numerous benefits<br />

In the sector of ready-to-consume baby<br />

foods, products in glass containers play<br />

an important role. The content is visible to<br />

sig.biz/combibloc 03/ 06<br />

the buyer and can be assessed for its “vis-<br />

ual appeal”. Appetising, natural colours and<br />

fresh taste are also the typical characteristics<br />

of products packaged in aseptic cartons. In<br />

the packaging mix of recent years, the carton<br />

has developed into another convincing<br />

packaging system for use in the sensitive<br />

segment of ready-to-consume baby foods.<br />

Says Guillaume Confais, Head of Market<br />

Segment Management at <strong>SIG</strong> <strong>Combibloc</strong>,<br />

“For product innovations, market leaders in<br />

the baby food sector are relying to an increasing<br />

degree on aseptic cartons. Not only<br />

do they ensure superb product quality, but<br />

their design potential is tremendous. Moreover,<br />

they are safe and easy to handle. The<br />

environmental friendliness of the carton,<br />

which can be readily recycled, is also playing<br />

its part.”<br />

Safely aseptic<br />

“In the case of food products, protecting<br />

the content, while maintaining its natural<br />

flavours, pigments, nutrients and vitamins,<br />

is always important. With baby foods, these<br />

aspects – particularly the emotional ones –<br />

really weigh. In this respect, the aseptic<br />

process is an optimal solution”, explains Mr<br />

Confais. In <strong>SIG</strong> <strong>Combibloc</strong> filling machines,<br />

product and package are aseptically sterilised<br />

separately. The HTST (High Temperature/<br />

Short Time) process briefly ultra-heats the<br />

contents and then cools them down to room<br />

temperature. Parallel to HTST, the filling<br />

machine forms the carton, seals the base<br />

and sterilises its interior. In the bacteria-free<br />

aseptic zone of the filling machine, the product<br />

is then filled into the carton. The top seam<br />

of the carton sleeve is then ultrasonically


Also in France, ready-to-consume baby food<br />

in carton packages from <strong>SIG</strong> <strong>Combibloc</strong> is<br />

a convincing alternative to the fresh product.<br />

sealed above the filling level without coming<br />

into contact with the product during the entire<br />

process. As a result, the flexible packaging<br />

systems from <strong>SIG</strong> <strong>Combibloc</strong> allow food products<br />

with chunky content to be filled safely.<br />

Ready for anything<br />

<strong>SIG</strong> <strong>Combibloc</strong> has developed three different<br />

machine models designed specifically<br />

for filling food products. Those such as baby<br />

milk, baby water or liquid baby mash can be<br />

filled on standard beverage filling machines.<br />

Pasty filling goods containing small chunks<br />

or fibres such as thicker mash, soups or<br />

purées with vegetable or fruit particulate are<br />

processed in “Food Liquid” machines. Viscous<br />

products and those containing larger<br />

chunks are filled on the “Food Particulate”<br />

model. This machine features 2-phase filling<br />

Appetising, natural colours and fresh taste<br />

are characteristic for baby food products<br />

packaged in aseptic cartons.<br />

technology that allows contents with different<br />

viscosities to be filled into the same package.<br />

Both ingredients can be individually<br />

prepared beforehand in accordance with<br />

their product-specific requirements. Mixing<br />

to generate the finished product takes place<br />

within the carton itself. These are ideal conditions<br />

for packaging virtually any product<br />

in the baby food segment.<br />

Facts & Trends 20/21<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/factsandtrends<br />

sig.biz/combibloc 03/ 06


Cultures<br />

Flavours of Thailand<br />

Anyone who associates Thai cuisine with their local Chinese or Indian restaurant<br />

is definitely on the wrong culinary track. Thai cuisine is unique in South-East Asia<br />

inasmuch as there is no insistence on the “right” way to cook. On the contrary,<br />

it offers tremendous scope for creativity.<br />

Typically used in Thai cooking is a<br />

pounded mixture of salt and pepper, garlic<br />

and coriander root. Dishes are flavoured with<br />

a wide range of herbs, spices, leaves, roots<br />

and even flowers. These include lemon grass,<br />

lime leaves and every type of chilli. A key<br />

ingredient in Thai dishes is the milk and oil<br />

extracted from coconut flesh.<br />

sig.biz/combibloc 03/ 06<br />

Cooking with combibloc<br />

As an innovative packaging system for<br />

important ingredients such as coconut milk,<br />

combibloc cartons from <strong>SIG</strong> are becoming<br />

increasingly popular in Thai cuisine. Try out<br />

the following recipes and experience the<br />

unique flavours of Thailand.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/cultures


Coconut milk, here in the aseptic carton package<br />

from <strong>SIG</strong> <strong>Combibloc</strong>, is a key ingredient in<br />

Thai cuisine.<br />

Green Curry Chicken<br />

Ingredients:<br />

• 1 tbsp. vegetable oil<br />

• 2 tbsp. green curry paste (according to taste)<br />

• 1 tbsp. soft dark-brown sugar<br />

• 1–2 thick stalks lemon grass, fat ends crushed with a rolling pin<br />

(optional)<br />

• 750 g/11 /2 lb skinless, boned chicken, cut into chunks<br />

(use breast and/or leg meat)<br />

• 6–8 Kaffir lime leaves, torn into pieces<br />

(if unavailable, use grated zest of 1 lime)<br />

• 400 ml/14 fl oz coconut milk<br />

• good shake of Thai fish sauce or light soy sauce<br />

• small handful of coriander, coarsely chopped<br />

• 1 /2–1 lime, juice only<br />

Preparation:<br />

1. Heat the oil in a wok or large frying pan. Add the green<br />

curry paste with sugar and cook over a fairly high heat for<br />

about a minute, stirring in the lemon grass, if used. Reduce<br />

the heat slightly, stir in the chicken pieces and lime leaves<br />

or zest until coated in the paste. Add the coconut milk,<br />

fish sauce or soy sauce and bring to a simmer, cooking for<br />

25–30 minutes until thickened slightly. Stir in the coriander<br />

and lime juice. Taste for seasoning, adding more fish sauce<br />

or soy sauce if needed.<br />

2. The curry is now best left to settle for a few minutes, allowing<br />

the sauce to become creamier. You will also taste the<br />

true flavours of the curry paste ingredients when the dish<br />

is slightly cooler. Serve with generous helpings of fragrant<br />

Thai jasmine rice.<br />

Tom Yum Soup<br />

Ingredients:<br />

• 3 cups chicken stock<br />

• 1 stalk lemon grass, sliced thinly<br />

(tough outer leaves and bulb removed)<br />

• 3 Kaffir lime leaves<br />

(find these in the freezer section of your local Asian grocery store)<br />

• 3 cloves garlic, minced<br />

• 1–2 small green or red chillies (depending on desired spiciness),<br />

de-seeded and sliced<br />

• 1 /3 cup fresh coriander (or cilantro), coarsely chopped<br />

• 2 tbsp. fish sauce or soy sauce<br />

• a handful of fresh shiitake mushrooms, sliced thinly<br />

• 12 medium or large raw shrimps, shells removed<br />

• 1 carton of coconut milk<br />

• optional: additional Thai red chillies (left whole), plus other<br />

vegetables (such as green or red bell peppers), as desired<br />

Preparation:<br />

1. Pour stock into a deep cooking pot.<br />

2. Place lemon grass slices in a food processor until finely grated,<br />

or pound by hand with a mortar & pestle and add to the<br />

stock. Tip: the upper stem and/or lower bulb can be left<br />

whole and thrown into the pot for additional flavour.<br />

3. Add garlic, chillies (including whole chillies, if used) and lime<br />

leaves. Bring to the boil.<br />

4. Add the mushrooms and shrimps. Boil for 8–10 minutes.<br />

5. Lower the heat and add the coconut milk and fish sauce or<br />

soy sauce. Taste the soup for spice and salt, adding more<br />

chillies and fish or soy sauce (instead of salt) as desired.<br />

6. Serve in bowls with coriander sprinkled on top and quarters<br />

of fresh lime on the side.<br />

Cultures 22/23<br />

sig.biz/combibloc 03/ 06


Markets<br />

sig.biz/combibloc 03/ 06


Boom in Eurasia<br />

The economic situation of Kazakhstan has improved considerably in recent years.<br />

In future, the biggest country of Central Asia may benefit even more from its position<br />

as a commercial hub and marketplace between West and East, between Europe<br />

and the economic booms in China and Russia. Reason enough for <strong>SIG</strong> <strong>Combibloc</strong><br />

to have a local presence.<br />

The enormous growth markets of Russia,<br />

China and India are considered to be coming<br />

centres of globalisation. Kazakhstan is located<br />

at the very centre of these dynamic<br />

economies of the Eurasian supercontinent.<br />

If Russia, China and India continue on their<br />

impressive growth paths, there are many<br />

indicators that point to the most important<br />

economy of Central Asia becoming the commercial<br />

hub at the heart of these centres of<br />

gravity within a couple of decades.<br />

Eurasia’s commercial hub and marketplace<br />

The Republic of Kazakhstan lies in the<br />

transition zone between the continents of<br />

Europa and Asia. The country borders on the<br />

Caspian Sea, China, Kyrgyzstan, Turkmenistan,<br />

Uzbekistan and the Russian Federation.<br />

In recent years, the economy of Kazakhstan<br />

has grown substantially – almost ten per cent<br />

per annum over the past six years – driven<br />

by booming demand for raw materials. For<br />

this year and the next, the IWF estimates<br />

economic growth of almost nine per cent. This<br />

trend has led to growing interest by foreign<br />

investors in this Central Asian nation that is<br />

rich in natural resources. In the opinion of<br />

international financial experts, Kazakhstan’s<br />

monetary policy is one of the best managed;<br />

Kazakhstan was the first CIS member to<br />

establish a national fund to secure stable<br />

social and economic development. The government<br />

rigorously applies an open external<br />

trade policy; in terms of trading volumes, the<br />

nation’s key partners are the EU, Russia,<br />

Switzerland and China. <strong>SIG</strong> <strong>Combibloc</strong> cur-<br />

Markets 24/25<br />

rently maintains business relations with two<br />

major Kazakh companies: Astana Bottlers<br />

and Gold Product.<br />

Cooperation with Astana Bottlers<br />

Founded in February 2003, Astana<br />

Bottlers has a varied product and service<br />

portfolio: production of food products, transportation,<br />

security services and construction<br />

works.<br />

In June 2003, the Executive Board decided<br />

to install a production line; at the same<br />

time approving an agreement on collaboration<br />

with <strong>SIG</strong> <strong>Combibloc</strong>. Technicians from<br />

<strong>SIG</strong> <strong>Combibloc</strong> installed the filling line and<br />

trained the company’s personnel to operate<br />

it. In May 2006, Astana Bottlers set up a plant<br />

for juice and nectar production by filling its<br />

sig.biz/combibloc 03/ 06


Markets<br />

own Cariba brand in the combifitPremium<br />

1,000 ml format. This plant has a state-<br />

of-the-art production facility that allows the<br />

most valuable attributes of the juices – natural<br />

aroma and the delicious taste of fresh<br />

fruit – to be maintained.<br />

Best brand award<br />

Currently, the plant is producing eight<br />

different juices in the 1,000 ml carton. The<br />

company is planning to expand its range<br />

by ten additional flavours, to start filling<br />

juices in the 500 ml format and to initiate<br />

the production of iced tea, all before the end<br />

of this year. In addition to superb taste, Cariba<br />

juices stand out thanks to the modern,<br />

practical design of their packages. All these<br />

attributes ensure that the company’s products<br />

sig.biz/combibloc 03/ 06<br />

remain highly popular with consumers.<br />

Cariba products are already marketed<br />

throughout all the regions of Kazakhstan.<br />

There are plans to export them in the near<br />

future to Kyrgyzstan and the Russian Federation.<br />

In July 2006, the EBRD BAS (European<br />

Bank for Reconstruction and Development<br />

Business Advisory Services) programme<br />

distinguished Astana Bottlers with its award<br />

for the creation and market roll-out of the<br />

“Best Brand”. Astana bottlers is also planning<br />

to launch UHT milk products; <strong>SIG</strong> <strong>Combibloc</strong><br />

specialists have already installed the production<br />

line.<br />

Market with considerable potential<br />

Another vivid example of successful<br />

business relations in Kazakhstan is the co-<br />

Juices produced by Kazakhstan’s Gold Product<br />

company, filled in combiblocPremium (1,000 ml).<br />

operation between the large local enterprise<br />

JSC Gold Product and <strong>SIG</strong> <strong>Combibloc</strong>. In the<br />

face of rapid economic growth in Kazakhstan,<br />

increases in per capita income and rising consumption,<br />

particularly in the beverages sector,<br />

Gold Product decided in 2004 to build a<br />

production facility for filling fresh juices,<br />

nectars and other drinks in carton packages.<br />

According to experts, the Kazakh market<br />

2006 for beverages packaged in cartons<br />

will grow by 12% over the previous year’s<br />

figures, i.e. bringing the total to around<br />

160 million litres. Compared to 2003, this<br />

increase is equivalent to 30 million litres.<br />

Market surveys indicate that growth potential<br />

in Kazakhstan’s market for juices is substantial.<br />

From 2004 to 2006, that annual<br />

growth reached 10% to 12% on average. In


the same period, annual growth in production<br />

volume rose by an average 16%. The<br />

reason here is the successful substitution of<br />

imported goods with domestic brands.<br />

Cooperation with JSC Gold Product<br />

Gold Product began its cooperation with<br />

<strong>SIG</strong> <strong>Combibloc</strong> in 2004 with the objective of<br />

developing and implementing innovative<br />

technologies in its own company in conjunction<br />

with <strong>SIG</strong> <strong>Combibloc</strong>. Within the<br />

construction project, Gold Product signed a<br />

contract with <strong>SIG</strong> <strong>Combibloc</strong>, including the<br />

purchase of packaging equipment and a<br />

filling line for the facility.<br />

On 1 January 2006, the first production<br />

line for filling juices in combibloc cartons<br />

came on stream. The Gold Product range<br />

currently includes seven flavours that are<br />

marketed under the Goldy brand. In this year<br />

already, the development programme approved<br />

by Gold Product foresees expanding<br />

its product range under the existing brand<br />

name and the production of nectars under a<br />

new brand launch.<br />

In 2007 JSC Gold Product plans to purchase<br />

a filling facility from <strong>SIG</strong> <strong>Combibloc</strong><br />

for the production of beverages in small<br />

200 ml cartons and larger 1,500 ml cartons.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/markets<br />

Markets 26/27<br />

The juice and nectar brand Kariba from Astana<br />

Bottlers is marketed in combiblocPremium<br />

(1,000 ml).<br />

sig.biz/combibloc 03/ 06


Markets<br />

A market in transition<br />

The German market is one full of new challenges. Only a few years ago, it seemed as though<br />

the market shares in the segments of non-carbonated soft drinks (NCSD), liquid dairy<br />

and food had been largely defined and the packaging mix allocated. In recent times, however,<br />

the market has proved volatile.<br />

sig.biz/combibloc 03/ 06<br />

On the one hand, there is a new competition<br />

scenario arising from the growth of<br />

PET. While on the other hand, the ongoing<br />

discussions on the issue of the mandatory<br />

deposit have heightened awareness in the<br />

food products sector and uncertainty among<br />

consumers.<br />

New challenges<br />

This changing scenario is readily discernible<br />

from a look at supermarket shelves:<br />

consumers are no longer focusing on the<br />

product alone; their purchase decisions are<br />

increasingly influenced by the packaging sys-<br />

tem. Not only product quality with the appeal<br />

and conspicuousness of the carton, but also<br />

price, ecological benefits and disposal regulations<br />

for the empty container are decisive<br />

factors in choosing a product. In this new<br />

market constellation, it is the suppliers of<br />

systems for filling products into carton<br />

packages who are more keenly challenged<br />

by new competitors than hitherto. At the<br />

same time, there is a greater need to clearly<br />

emphasise the key benefits of convenience,<br />

quality and price. Here, the sales, marketing,<br />

service and product development departments<br />

are equally challenged.


Innovative solutions<br />

Oliver Betzer, Head of the Germany<br />

Cluster at <strong>SIG</strong> <strong>Combibloc</strong>, remains convinced<br />

of the future of the carton package in Germany,<br />

despite the changing market situation.<br />

Because the carton is ecologically advantageous<br />

it is exempt of the mandatory deposit.<br />

Says Betzer, “That is only one of the many<br />

advantages cartons have over competing systems.<br />

They are largely made of cellulose, won<br />

from wood, which is a renewable resource.<br />

Realistically, however, in the next one to two<br />

years, we will have to concede a few percentage<br />

points in the market to PET. Consequently,<br />

we have to be well prepared. Consistently<br />

working on innovative solutions for our customers<br />

has absolutely top priority.”<br />

Juicy as they come<br />

Germany is and remains an important<br />

market for <strong>SIG</strong> <strong>Combibloc</strong>. In the juice segment,<br />

for example, beverage cartons from<br />

<strong>SIG</strong> <strong>Combibloc</strong> have been able to retain their<br />

pole position against other packaging alternatives.<br />

In the non-carbonated soft drinks<br />

sector, <strong>SIG</strong> <strong>Combibloc</strong> Germany holds a market<br />

share well in excess of 50 per cent. Summarises<br />

Betzer, “Especially in the large volume<br />

packages for NCSD, we have succeeded<br />

in maintaining our market share despite<br />

the growth of PET. The combifitMagnum,<br />

1,500 ml format, in particular, is putting on<br />

a good show in this segment and on pointof-sale<br />

shelves.”<br />

Great presentation<br />

An impressive example in this regard is<br />

the decision of Coca-Cola in February 2006<br />

to fill its successful NESTEA range in the<br />

aseptic combifitMagnum carton from <strong>SIG</strong><br />

<strong>Combibloc</strong>. In every sense of the word, the<br />

enormously popular iced tea brand, with<br />

its lemon, peach and forest-berry flavours,<br />

is putting on a great presentation in the<br />

1,500 ml package fitted with the practical<br />

combiTwist screw cap.<br />

As a result of favourable market trends,<br />

Coca-Cola decided to expand its product portfolio.<br />

In September 2006, the company<br />

launched its NESTEA “Snowy Orange” in<br />

combifitPremium, 1,000 ml – the first iced tea<br />

that consumers can also enjoy hot in the<br />

winter months. “Such a special product called<br />

for an equally distinguished package – choosing<br />

a further combifit format, i.e. a solution<br />

that is successfully established in the market,<br />

fairly suggested itself”, explains Betzer.<br />

Milk makes a difference<br />

Oliver Betzer is equally confident about<br />

<strong>SIG</strong> <strong>Combibloc</strong>’s progress in the liquid dairy<br />

segment: “Despite fierce competition, we will<br />

vigorously pursue ambitious market share<br />

objectives”. His confidence is underpinned<br />

by successful product innovations like the<br />

new combiSwift screw cap and groundbreaking<br />

customer initiatives such as the<br />

“Landliebe” brand premium UHT project,<br />

developed jointly with Campina.<br />

Convenient handling<br />

In Germany, it is combiSwift, the easily<br />

opened and closed fitment solution, that is<br />

gaining particularly strong market acceptance.<br />

Explains Oliver Betzer, “The German<br />

market is increasingly oriented towards convenience<br />

– but it must be affordable. In the<br />

sector of closure solutions, systems are in<br />

Markets 28/29<br />

Confident about the future of carton packages<br />

in Germany: Oliver Betzer, Head of the Cluster<br />

Germany at <strong>SIG</strong> <strong>Combibloc</strong>.<br />

sig.biz/combibloc 03/ 06


Markets<br />

Whether liquid food commodities, liquid<br />

dairy products or non-carbonated drinks:<br />

aseptic cartons from <strong>SIG</strong> <strong>Combibloc</strong> are proving<br />

successful in every segment of Germany’s<br />

beverages industry.<br />

sig.biz/combibloc 03/ 06<br />

demand that allow efficient production<br />

while bringing a consumer-friendly, convenient<br />

and hygienic product to market”. As a<br />

cost-effective and easy-handling screw cap,<br />

combiSwift provides all those attributes.<br />

It was Milchwerke Thüringen GmbH<br />

in Germany’s Thuringia, a subsidiary of the<br />

Humana Milchunion group of companies,<br />

and the Neuburger Milchwerke, a subsidiary<br />

of OMIRA (Oberland Milchverwertung<br />

Ravensburg GmbH), who provided the kickoff<br />

for the new closure solution. Both dairies<br />

fitted combiSwift to their products virtually<br />

simultaneously.<br />

Successful roll-out<br />

Equally promising was the concept for<br />

launching the premium “Landliebe” brand<br />

UHT milk, developed jointly with the customer<br />

Campina. Since June 2006, UHT products<br />

from Landliebe are being offered in<br />

combiblocSlimline, fitted with combiSwift.<br />

Latest figures from the marketplace indicate


that the decision to launch a UHT product<br />

with convenient handling features and an<br />

attractive package décor has resulted in a successful<br />

entry into a new product segment.<br />

Dynamic partnership<br />

Oliver Betzer rates the 27 years of<br />

dynamic collaboration with NORDMILCH<br />

particularly highly, now being continued<br />

with yet another new project. At its Zeven<br />

facility, NORDMILCH is investing in four new<br />

filling machines from <strong>SIG</strong> <strong>Combibloc</strong>. Says<br />

Martin Feldmann, Head of the Production<br />

Centre for Dairy Products, “Our stated objective<br />

is a differentiated high-quality product<br />

portfolio aimed at achieving price leadership<br />

in the market through simultaneous reduction<br />

of unit costs. Against that backdrop<br />

we also chose filling-machine systems from<br />

<strong>SIG</strong> <strong>Combibloc</strong> when deciding to expand the<br />

Zeven location.” For the future, NORDMILCH<br />

is relying exclusively on <strong>SIG</strong> <strong>Combibloc</strong> technology<br />

for filling its beverage cartons at<br />

Zeven. These new high-speed machines for<br />

the medium-size carton formats are at the<br />

heart of four new filling lines offering optimal<br />

cost-effectiveness. For the first time ever,<br />

outputs of 12,000 cartons per hour, including<br />

application of the closures, can be achieved.<br />

Says Manfred Feldmann, “This output capacity<br />

is matched by enormous flexibility, both<br />

in terms of the products themselves and<br />

volume changeovers”.<br />

In closure technology too, NORDMILCH<br />

is convinced that <strong>SIG</strong> <strong>Combibloc</strong> systems<br />

solutions are the ideal choice. For the mass<br />

production of its milk and milk-mix products,<br />

the group is relying on combiSwift. Production<br />

with the four new lines is scheduled to<br />

come on stream at the beginning of 2007.<br />

Putting meals in mouths<br />

For <strong>SIG</strong> <strong>Combibloc</strong>, changing market<br />

conditions in Germany also mean developing<br />

strategies and concrete concepts for growth<br />

segments. Says market specialist Betzer, “In<br />

this regard, our sights are clearly on the food<br />

segment. Within our portfolio, our aim is to<br />

rigorously expand the food segment, and in<br />

Germany specifically in order to create new<br />

sales potentials for the carton package. We<br />

have every chance of playing a cutting-edge<br />

role in Germany when the objective is to<br />

bring food concepts to market maturity. With<br />

our proven competence in the aseptic filling<br />

of food products and the introduction of the<br />

new combisafe autoclave system, we are far<br />

more comprehensively equipped than our<br />

competitors. Particularly in the speciality<br />

of aseptically filling products with chunky<br />

particulate, they are considerably more<br />

limited than we are.”<br />

Alternative with a future<br />

In a recently concluded cooperation<br />

agreement, the German food producer Jütro<br />

Konservenfabrik GmbH & Co. KG, a subsidiary<br />

of Hamburg’s I. Schroeder KG, is<br />

launching the very first combisafe carton<br />

from <strong>SIG</strong> <strong>Combibloc</strong> worldwide on the German<br />

market. combisafe is a volume-flexible,<br />

heat-resistant family of carton packages that<br />

allows the filling of just about any food product<br />

with chunky content, e.g. vegetables,<br />

Markets 30/31<br />

fruit, ready meals, hotpots or even wet petfoods,<br />

with subsequent sterilisation in autoclaves.<br />

Through this process, products filled<br />

in combisafe have a shelf life of up to two<br />

years without the need for refrigeration<br />

or the addition of conservation agents.<br />

Says Betzer, “Carton packages are a practical<br />

alternative to glass jars or cans – they are<br />

easier to handle and lighter. Above all, they<br />

are a welcome alternative for producers of<br />

food products who are intent on differentiating<br />

their merchandise from that of competitors.<br />

Last but not least, the carton package<br />

is one huge display surface that is ideal<br />

for product presentation. In the German food<br />

market, the carton is a packaging system<br />

with a future.”<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/markets<br />

sig.biz/combibloc 03/ 06


Environment<br />

sig.biz/combibloc 03/ 06


During the Children’s Conference on the Environment,<br />

Bettina Horenburg (Internal Communications)<br />

and Petra Gerber (Global Environment)<br />

symbolically planted a tree seedling in Malaysia<br />

on behalf of <strong>SIG</strong> and Switzerland.<br />

<strong>SIG</strong> Supports UNEP International<br />

Children’s Conference<br />

Financially and practically, the <strong>SIG</strong> Group sponsored a conference organised by the UNEP<br />

(United Nations Environment Programme) during which 250 children from around 60 different<br />

nations presented their visions for a cleaner, more habitable environment. The commitment<br />

of the young participants to protecting and cleaning up the environment was impressive.<br />

“Tunza”: the word originates from<br />

Kiswahili, an East African language, and<br />

means “to treat with care or affection”. This<br />

was the motto chosen by UNEP for its biannual<br />

International Children’s Conference<br />

on the Environment. Located in Nairobi, the<br />

UNEP is the World Conservation Monitoring<br />

Centre of the United Nations. Together with<br />

sponsors, UNEP promotes awareness among<br />

children and young people at numerous<br />

events worldwide on how to care for<br />

the environment and what they can do to<br />

contribute to a better world today and for<br />

the future. <strong>SIG</strong> attended an International<br />

Children’s Conference for the first time and<br />

enabled 50 children from developing nations<br />

to take part at this year’s Tunza Conference.<br />

This latest event was held in Malaysia and<br />

opened by Her Royal Highness, the Queen<br />

of Malaysia at an official ceremony.<br />

Environmental projects presented by children<br />

At the end of August, around 250 children<br />

delegates from around the world,<br />

10–14 years of age, convened at Putrajaya,<br />

Malaysia’s new federal government administration<br />

centre, to participate in the “2006<br />

Environment 32/33<br />

Tunza International Children’s Conference<br />

on the Environment” (ICCE). For the 5th time,<br />

this conference enabled children to learn<br />

about the environment in plenary sessions,<br />

workshops and excursions, while expressing<br />

and discussing their own environmental<br />

issues and visions. The primary subjects were<br />

environmental protection, forest preservation,<br />

biological diversity and recycling. Young<br />

environmentalists from numerous countries<br />

presented concrete projects being undertaken<br />

by their communities and schools,<br />

with the emphasis on clean water and<br />

recycling.<br />

sig.biz/combibloc 03/ 06


Environment<br />

<strong>SIG</strong> shows the flag: company employees<br />

organised a recycling workshop in the course<br />

of the conference.<br />

Through this year’s motto of “Save a<br />

Tree, Save our Lungs” and the associated<br />

tree-planting programme, the children wanted<br />

to increase awareness of the problem of<br />

excessive timber exploitation in Malaysia’s<br />

forests. In the course of the programme, <strong>SIG</strong><br />

employees also symbolically planted a tree.<br />

The children demonstrated their dismay with<br />

a colourful theatre piece that showed many<br />

people’s growing awareness of the significance<br />

of wood as a renewable resource across<br />

the globe. In the closing session, each of the<br />

young participants committed to plant at least<br />

20 tree seedlings each year.<br />

Carton recycling is child’s play<br />

In addition to its financial engagement,<br />

<strong>SIG</strong> also showed the flag on site. Within the<br />

framework of the conference, <strong>SIG</strong> employees<br />

ran a recycling workshop. This allowed the<br />

participating children to experience how<br />

quickly and easily new paper can be won<br />

from used beverage cartons. With considerable<br />

enthusiasm the youngsters helped to<br />

separate the cellulose fibres from the composite<br />

carton materials in a tub of water,<br />

sig.biz/combibloc 03/ 06<br />

to squeeze out the moisture and to dry the<br />

handmade sheets of paper.<br />

It was clear from the subsequent workshop<br />

evaluation that the children had<br />

enjoyed themselves: “For me, this workshop<br />

was the highlight of the conference. The<br />

German instructors were the best – thank<br />

you, <strong>SIG</strong>!”, wrote Lionel Stoneley from New<br />

Zealand. “It was great fun to learn how cartons<br />

are recycled. The steps are simple and<br />

easy”, explained Anisa Yasmin from Malaysia.<br />

And Fachil Ahmad Qamur from Indonesia<br />

wrote: “This workshop was super!<br />

I learned how easy it is to recycle beverage<br />

cartons”.<br />

Unanimous response<br />

At the beginning of August, CEO Rolf-<br />

Dieter Rademacher went in front of the cameras<br />

at Switzerland’s Rhine Falls to elucidate<br />

why sustainability is an integral element of<br />

the overall <strong>SIG</strong> strategy. He explained that<br />

beverage cartons from <strong>SIG</strong> <strong>Combibloc</strong> are<br />

made up largely of a renewable substrate that<br />

is resource and transportation-efficient as<br />

well as being easy to recycle.<br />

The film team from Singapore was working<br />

on behalf of UNEP and the “ECO 4 THE<br />

WORLD” initiative. Both organisations share<br />

a common goal: to promote the Millennium<br />

Goals of the United Nations and to help<br />

ensure that the deadline, the year 2015,<br />

is met.<br />

Ever since 1972, UNEP, located in<br />

Nairobi, has been dedicated to issues relating<br />

to nature and the environment. Partnerships<br />

and collaborative efforts are key to raising<br />

people’s awareness, understanding, inspiration<br />

and motivation in caring for the environment<br />

and sustainable development. UNEP<br />

operates in conjunction with organisations,<br />

governments, civil societies and corporations.<br />

Companies in particular are encouraged<br />

to promote environmental initiatives<br />

at communal and local levels. UNEP gathers<br />

and evaluates environmental data and develops<br />

political instruments dedicated to<br />

environmental protection. UNEP promotes<br />

care of the environment and facilitates<br />

know-how and technology transfers. Above<br />

all, UNEP encourages corporations and citizens<br />

to cooperate.


Participating children thoroughly enjoying<br />

the recycling workshop where they could make<br />

paper from used beverage cartons with their<br />

own hands.<br />

Cooperation for sustainable development<br />

After becoming aware of <strong>SIG</strong> through<br />

its Internet website and information materials,<br />

UNEP has invited <strong>SIG</strong> to become a cooperation<br />

partner. As a packaging group,<br />

<strong>SIG</strong> is now involved in a series of interactive<br />

TV programmes that present environmentally<br />

friendly and sustainable projects supporting<br />

the Millennium Goals of the United<br />

Nations. <strong>SIG</strong> is particularly interested in Goal<br />

# 7: ensure environmental sustainability and<br />

reverse loss of environmental resources.<br />

Common goal<br />

Cellulose used for making cartons is won<br />

from the renewable resource, wood. It is not<br />

exhaustive depletion, but rather sustained<br />

management of this renewable resource that<br />

is the right way to maintain our ecological<br />

system. Hence, <strong>SIG</strong> insists that the wood,<br />

from which our suppliers manufacture raw<br />

paperboard, is obtained from managed forests<br />

where more trees are grown than are felled.<br />

Filming also took place at the <strong>SIG</strong> <strong>Combibloc</strong><br />

production location in Linnich where the<br />

new, state-of-the-art extrusion line was rep-<br />

resentative for resource-efficient production<br />

with reduced environmental impact and<br />

optimised transportation routes.<br />

CEO Rolf-Dieter Rademacher commented<br />

on the project with these words,<br />

“I am convinced that any company with a<br />

long-term sustainability policy will create<br />

profitability and job security for all those<br />

involved. Ensuring environmental sustainability<br />

is not only a UNEP Millennium Goal,<br />

but also a corporate objective of the <strong>SIG</strong><br />

Group. Hence, we have every reason to be<br />

happy with this cooperation initiative.”<br />

Environment 34/35<br />

CEO Rolf-Dieter Rademacher in front of<br />

the cameras explaining why sustainable<br />

environmental protection is an integral part<br />

of the overall <strong>SIG</strong> corporate strategy.<br />

Further information available in our<br />

online magazine at:<br />

www.sig.biz/combibloc/environment<br />

sig.biz/combibloc 03/ 06


www.sig.biz/combibloc<br />

<strong>SIG</strong> Holding AG<br />

Laufengasse 18<br />

8212 Neuhausen am Rheinfall<br />

Switzerland<br />

Telephone: +41 52 674 6111<br />

Fax: +41 52 674 6556<br />

info@sig.biz

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