The magazine for professional developers of consumer packaged goods
Updated on 21/04/2004
Home
Subscribe
Media pack (pdf)
Terms & conditions
Privacy statement
Contact us
Copyright © Gateway Publishing Ltd 2002-2005. All rights reserved.
STOP PRESS

Square juice bottle is cool

Graham Packaging’s new 64-oz (1.9l) rectangular PET hot-fill bottle for Old Orchard juices is winning plaudits along the supply chain, the company claims.

The shape allows producers to pack up to 100 extra bottles to a 40-by-48-inch pallet; consumers find it easy to handle, and it saves about 25% space on retail shelves.

Graham Packaging produced the first rectangular PET heat-set bottle in 1998 and then the first rectangular bottle with a grip in the fall of 2002, using a customer’s design. Since then, interest in the rectangular shape has been growing, and Graham Packaging is now providing its own new designs.

Toshi Kojitani, director of Graham Packaging’s PET product line, the rectangular bottle offers a 25% gain in “cube efficiency,” over its round cousin, or an average of 20% space savings on a retailer’s shelf.

Old Orchard is one of the fastest-growing branded juice lines in the US. It offers 100% fruit juices and blended juices, with 21 frozen concentrate flavours and 22 bottled flavours.

HEADLINE NEWS 21 April 2004

Deming pioneer sets up innovation office
Green tea gives hard disks longer life
Food to go goes home
Europe is RFID-ready
French boffins beat government ban
Competition trumps education

BRIEFLY

Australia’s Proteome Systems and SGE International have joined up to develop a range of liquid chromatographic kits specifically for proteomics applications and configured to interface easily with the electrospray source of mass spectrometers. These kits will enable researchers to gain new insights into the role of proteins in disease and to speed the discovery of new diagnostic and drug targets.

A European Commission expert group has published 25 recommendations on the ethical, legal and social implications of genetic testing. The recommendations include a call for screening for rare diseases, as well as a regulatory framework outlining when such tests should be carried out, and for what purpose the results should be used. The recommendations are the basis for a conference, to be held on 6 and 7 May in Brussels. For further information on the event and the recommendations, please click here.

The coordinators of the EU-funded project QualityLowInputFood have published three calls for proposals. They cover information on the effect of dairy management practice, development of nutrient budget-based precision farming system and software for vegetable crops, and environmental and sustainability audits. Only institutions in the enlarged EU are eligible; for details click here.

The British Institute of Food Research (IFR) is organising a conference on the identification and exploitation of knowledge relevant to food processing waste. The event runs in Norwich, UK from 25 to 28 April. For details click here.

Innovation

Deming pioneer sets up innovation office

Showa Denko (SDK), a specialist chemicals firm that pioneered total quality management in Japan and won the first Deming Prize for quality management in 1951, has established an innovation office to coordinate and encourage innovations at the firm’s various factories.

In addition to improving production processes, SDK began total productive maintenance (TPM) activities at its Oita Petrochemical Complex in September 1997. Since then, the company has also cut equipment failures/accidents, customer complaints, and costs. Total cost savings to date are worth around 25 billion yen (193 million euros), the firm says.

The firm’s new three-year Sprout Project will seek innovations in marketing and supply chain management as well as production to cut all kinds of losses and to share best practices across the group. SDK hopes this will save an extra 20 billion yen (154m euros). 

Green tea gives hard disks longer life

A new biodegradable machining compound made partly from green tea is three to four times more effective than toxic counterparts.

The new compound is used for polishing the read-write heads of computer disk drives. The fluids are critical because imperfections in read-write heads must be less than 10 angstroms high; larger defects can cause the head to crash into the disk, causing data loss.

In addition, the fluid's possible biocompatibility and high affinity for ceramics and metals may lead to applications in wastewater treatment, where the compound could remove heavy metal contaminants from water, and medicine, where the compound may have advantages for delivering certain cancer treatments.

NPD

Food to go goes home

On-the-go food is more about convenience than portability says new research from US-based InsightExpress. Nearly three in four customers say they eat "on-the-run meals" in the home.

An on-line survey of 500 grocery-shopping Americans showed that nine out of 10 buy portable convenience foods and eat them with nearly every meal. Lunch is most popular with 55% eat to-go products as part of their mid-day meal, followed by breakfast (40%), mid-afternoon snack (38%) and dinner (37%). Portable meals are eaten at home (72%), in the car (44%), at the office (39%), at a recreational activity (17%) and at school (14%).

Reasons for buying prepared foods include reduced preparation time (70%), individual packaging (34%), and taste (28%). Nearly 3 out of 4 (72%) shoppers say that portable foods replace meals or foods they used to eat.

Nutritional value is important to three out of five fast food shoppers, and 59% say they are more likely to buy convenience food if they are more nutritional.

Supply chain

Europe is RFID-ready

Radio frequency identification (RFID) is high on the agendas of European retailers, food manufacturers and logistic service providers, according to an international study undertaken by UK-based IT consultancy LogicaCMG.

RFID is the new barcoding. RFID makes it possible to identify and track objects, such as supermarket goods, without time delays or the need for human intervention. As a result, supply chain logistics are more streamlined and efficient and this ultimately leads to lower costs and higher revenues.

But worldwide, consumer activists have raised concerns that tracking might invade consumers’ privacy. Retailers already make millions selling point of sale data to manufacturers. But until store cards came in, these data were not attributable to individuals. RFID tags mean that manufacturers might be able to track products into the home.

The study shows that half of the 50 companies interviewed in Europe are planning to deploy RFID pilot projects this year, and most plan to go live within the next three years. These will use Returnable Transport Items (RTIs), such as crates and pallets. Companies will not begin to tag consumer products until 2008 when prices of tags will have dropped.

Research

French boffins beat government ban

The French government last week rescinded its axing of 550 research jobs. The move broke a strike by government scientists and clears the way for renewed talks between the government and the scientific community over the future of research in France, reports The Scientist.

Science minister François Fillon, reinstated 550 permanent posts in public research institutes and also kept he temporary posts thatwere to replace them. In addition, he said 1000 new posts are to be created in universities for professors who are also involved in research.

Development

Competition trumps education

Poor countries should put their consumers first. This means competition is more important than education for developing countries, says William Lewis, author of The Power of Productivity: Wealth, Poverty, and the Threat to Global Stability.  

Billions spent on infrastructure, technology, capital markets, education, and health care in the post-war, post-colonial period have left developing countries mostly worse off, he points out.

Free competition and access to markets does more to raise standards of living for consumers than almost anything else, he argues.

Lewis’s conclusions are based on studies at the McKinsey Global Institute (MGI). Since 1990, MGI has studied g the dynamics and evolution of six to 13 industries in Australia, Brazil, France, Germany, India, Japan, the Netherlands, Poland, Russia, South Korea, Sweden, the UK, and US. They looked firms from state-of-the-art auto plants to black-market street vendors.

“Economic progress depends on increasing productivity, which depends on undistorted competition. When government policies limit competition, even unintentionally, more efficient companies can’t replace less efficient ones. Economic growth slows and nations remain poor,” he says.

To understand what makes countries rich or poor, you must understand what drives productivity. Like Michael Porter, writing in the New Wealth of Nations, Lewis found that microeconomic factors are as or more important than macroeconomic factors.

Studies of Brazil, India, and Russia show that companies concentrate on making money by exploiting the instability rather than by raising their productivity.

Secondly, the income level of a country is determined, above all, by the productivity of its largest industries. High productivity in the unglamorous "old-economy" sectors—retailing, wholesaling, construction—is most important, since more people work in them. High-tech enclaves and financial markets are less influential.

Over and over again, MGI found industries in which more productive innovators were excluded and less productive companies favoured. This meant lower productivity. The main obstacles to economic growth in poor countries are the many policies that distort competition. Instead of attempting to achieve social objectives by limiting competition, countries should allow fair competition and thereby generate more national income, which can then be redistributed through taxes and government subsidies for the desperately poor.

Even more important, countries have bad policies because they benefit certain people. In rich countries, special interests generally aren’t allowed to have their way so much that they can significantly undermine the common good. Most poor countries lack these limits. But to have healthy economies, countries must allow unsuccessful owners and managers to fail so that more productive ones can take their place. In that healthier economy, workers will find a better job market.

The answer lies in focusing on consumers, not producers. A consumption mind-set requires some notion of individual rights, including the right to buy what you want from anybody who wishes to sell it to you. Consumers want to patronize companies that offer better products and services or lower prices. Those are the companies that survive if competition is equal.

 
Tuesday, 01 February 2005
Events
FishWrap
NumbersGames
PaperChase
Library
Links