The magazine for professional developers of consumer packaged goods
Updated on 29/05/2003
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WELCOME    HEADLINE NEWS 29 May 2003
Research shows that  90 percent of new products launched in  supermarkets do not survive more than two years. The cost of failure runs into billions.

We believe we can show you some ways to improve your success rate, so subscribe now. It's free for 12 issues.

Anyone who develops new products for a living must be aware of a multitude of influences. Acknowledging this, we cover

scientific discoveries

consumer trends

product design and formulation

engineering technology

process engineering

manufacturing

filling and packaging

logistics and distribution

retail merchandising

end of life disposal

Then there are the legal and regulatory issues, such as safety and labelling, as well as intellectual property rights, brand management, competition and international trade that we have to take into account.

But it all means nothing without the creativity and insights of men and women who can put things together in new ways to create new products that improve our lives.

We celebrate those people.

Ian Grant

Publisher

SIG wins prize for PET
Item code bodies agree electronic standards
Network prescribed for pharmacists
BASF, Phytodyne seek new soy traits
Give yourselves a pat on the back
US consumers reject antibiotic-raised meat

Science

SIG wins prize for PET

German packaging company SIG Corpoplast has won the prestigious science prize from the Reinhold Hagen foundation, Bonn, for Plasmax, the novel PET barrier technology it developed with Schott HiCotec. The endowed prize is worth 10,000 euros.

The Plasmax technology improves the barrier properties of PET bottles. The barrier layer protects any sensitive drink from diffusion of oxygen into the bottle and carbon dioxide losses are considerably reduced. The first machine series is designed for a throughput of 10,000 bottles per hour. A prototype coating machine is going into full industrial scale trials at a customer in Switzerland. The market release is planned for the end of 2003.

e-Networks

Item code bodies agree electronic standards

EAN International and the Uniform Code Council (UCC) are to oversee development of the Electronic Product Code (EPC) Network. The EPC Network unifies item identification numbering, radio frequency (RFID) tags and networked product information into a powerful system for managing supply chains.

UK supply chain standards trade body e.centre welcomed the news.

The new set up is a result of an agreement between the Massachusetts Institute of Technology (MIT), which has largely developed RFID technology, and standards bodies EAN International and the Uniform Code Council.

e.centre director of policy and research Andrew Osborne said “Broadly, EPC technology will provide greater visibility of items in the supply chain. Having more detailed and accurate information about products will improve inventory management and replenishment practices, resulting in a reduction of lost sales due to out-of-stocks. Identification and tracking of individual items will also reduce theft and counterfeiting.

"EPC will bring a new world in which all products are individually identified with radio frequency tags and information about these products is available instantly from the Internet. Companies operating in global markets can rest assured that there will continue to be a single reliable standard for identifying and tracking products moving in trade.”

EAN International and UCC will set up AutoID Inc, a not-for-profit organisation to oversee the commercialisation and technical standards required to bring EPC to market.

Network prescribed for pharmacists

US retail pharmacists now have access to an online marketing tool, Pharmacist e-Link. The Internet portal is a venture between the National Community Pharmacists Association (NCPA) and Strategic Domain, which designed, built, and is helping to market the site. See www.pharmacistelink.com.

Prescription retail pharmacy from independents, chain, supermarket, and mass merchandiser pharmacies, is worth nearly $150 billion/y. Independent drug stores account for $60 billion.

The portal offers daily pharmacy and industry news updates, product news and highlights, disease-specific information, patient education materials, business calculators, pricing tools, and more.

Sponsors can post information to the website, and also e-mail pharmacists. Tracking capabilities and other technologies will enable all sponsors to monitor pharmacist usage and awareness. At launch, 11 drug makers and suppliers had signed up as charter sponsors. These were Eli Lilly, Ortho-McNeil, Janssen Pharmaceutica, Purdue Pharma, Johnson & Johnson, Roche, Mallinckrodt, ScriptPro, McNeil, Wyeth, and Mylan.

Joint ventures

BASF, Phytodyne seek new soy traits

Private Iowa biotech company Phytodyne has teamed up with Germany’s BASF Plant Science to develop a new transformation system for soybeans. Financial terms were not disclosed.

BASF Plant Science will support R&D on RetroGene, a novel plant transformation system discovered and developed by Phytodyne. RetroGene will be effective in whole plants and will not require costly tissue culture and regeneration of plants from cells. “Phytodyne’s system will provide a more cost-effective means of plant transformation that could be used on a wide range of crops,” Phytodyne president Jon Leafstedt said.

“BASF Plant Science has a strong research program to develop valuable soybean traits, and Phytodyne has the technology to put those traits into soybean plants more effectively than traditional transformation methods.”

Selling

Give yourselves a pat on the back

The 15th Harris Poll shows US customers giving top marks to supermarkets and packaged food companies for service.

The annual poll ranks 15 industries on how well they serve consumers. Supermarkets and food companies are new entries. Fully 85% believe supermarkets do a good job of serving their consumers, and 75% feel this way about the packaged food companies. Next come hospitals (73%), banks (72%), computer hardware (71%), and software (70%) companies.

Only 30% think tobacco companies and managed care companies do a good job, and only 40% think health insurance companies do so. Oil companies (42%) are marginally better.

Drug companies saw a 10-point slide in their score from 59% to 49%. The focus on drug prices, and the attendant bad publicity  dropped their positive rating from 79% in 1997, to 73% in 1998, 66% in 1999, and 59% in 2000. “Last year we thought this slide might have bottomed out (as) it had not changed significantly for two years, but now the downward trend has continued with another sharp fall to only 49%,” said the Harris researchers. Drug firms companies ranked fourth in 1977; this year they rank 11th.

Nutrition

US consumers reject antibiotic-raised meat

Three of four of all Americans worry about antibiotics in their meat, but most of them don’t know that this is what they buy in most supermarkets.

According to a new study, their concern about antibiotics ranks behind price, flavour and food safety. But only 48% are aware that most beef and poultry bought from American supermarkets are raised on feed that contains antibiotics.

Only 27% of those surveyed know of the scientific debate on the overuse of antibiotics in animals raised for food. Once they learn of the reports that show the effect on humans of the overuse of antibiotics in animal feed, 59% had a high desire to avoid these products and want meat and poultry raised without such antibiotics.

The survey of 1,000 Americans was conducted by Synovate in spring 2003, and was commissioned by Whole Foods Market, the nation's largest natural and organic foods supermarket. The survey is representative of the general United States adult population and has a margin of error of 3.1%.

People build up resistance to the antibiotics contained in beef and chicken meat. This makes similar drugs less effective when doctors prescribe them to treat patients.

The Union of Concerned Scientists estimates that 70% of all antibiotics in the US are now fed to animals raised for human consumption to speed up the animals' growth or prevent illness amid crowded, unsanitary conditions on factory farms.

Only one percent of the total US beef and poultry sales comes from animals raised without antibiotics throughout their lifecycle, said David Smith, vice president of marketing, Whole Foods Market. "The major concern about antibiotic usage and the low awareness of its prevalence in meat production indicates a significant demand for antibiotic-free, natural meat once consumers become educated about the issue."

Politicians such as Ted Kennedy and Sherrod Brown plan to introduce bills soon to phase out the routine use of medically important antibiotics in poultry and livestock. Over 170 groups, including the American Medical Association, endorsed similar legislation introduced in the last Congress.

 
Tuesday, 01 February 2005
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