PepsiCo aims for 50% rPET by 2030

PepsiCo has announced its goal to achieve 50% recycled plastic (rPET) by 2030 across the European Union.

PepsiCo aims for 50% rPET by 2030

The soft drinks firm has an interim target of 45% by 2025.  Through this target, the company will more than triple the amount of recycled plastic it uses, equating to over 50,000 tonnes of rPET.

The announcement comes in support of the European Commission’s voluntary recycled plastics pledging campaign to ensure that by 2025, ten million tonnes of recycled plastics are used to make new products in the EU market.  PepsiCo’s goal covers all countries expected to be members of the EU in 2025, and all the company’s beverage brands in PET (the primary plastic used in its bottles) including Pepsi, Pepsi MAX, 7Up, Tropicana and Naked.  The goal will apply across PepsiCo’s Beverage operations, including company-owned and franchise.

Today’s announcement builds on PepsiCo’s broader, global Performance with Purpose vision, which includes a goal to design 100% of its packaging to be recyclable, compostable or biodegradable and to reduce its packaging’s carbon impact by 2025.  The company estimates that currently, 90% of its beverage packaging worldwide is fully recyclable.

PepsiCo is already a significant user of food-grade recycled plastic (rPET) in the EU, using approximately 13% rPET in its EU beverage operations in 2017.

Silviu Popovici, president, PepsiCo Europe Sub-Saharan Africa commented:  “At PepsiCo, we take our responsibility to protect the environment seriously and are steadfast in our commitment to finding sustainable ways to create our products.  We have been on a mission in the European Union to advance a culture that encourages and supports recovery and recycling of packaging.  Today, I am very happy to announce that we will now go much further in the use of recycled plastics in our packaging, as we work to meet and exceed this new target in the years ahead.

“Developing an effective, long-term approach to sustainable packaging requires a multifaceted effort, and PepsiCo is committed to collaborating with the many stakeholders involved to ensure it succeeds in developing a Circular Economy for plastics into the future.  With serious under-capacity in the supply of affordable recycled plastics suitable for food packaging, we call on public and private stakeholders in the recycling system, including the European Commission, to join us and make the needed investments to expand recycling capacity.  Provided the right progress is made in increasing packaging recovery rates, and improving reprocessing technology, we will look to go even further than our current commitment.”

The company also works with multiple stakeholders to support packaging sustainability, including being a member of the New Plastics Economy, a three-year initiative led by the Ellen MacArthur Foundation to build momentum towards a plastics system that works.

A critical part of increasing the availability of recycled plastics, suitable for re-use in packaging, is ensuring that bottles are placed in the recycling system, rather than littering the environment.  In addition to participating in Extended Producer Responsibility (EPR) schemes across the EU, PepsiCo is partnering on programmes to increase recovery and recycling rates.  These include initiatives to promote and educate consumers on recycling, including on-pack labelling campaigns, such as “jede Dose zaehlt”/ Every Can Counts in Austria and “Vous triez, nous recyclons”, a consumer campaign in France, promoting the importance of sorting waste to ensure recyclability of plastic bottles.

France to tax non recycled plastic packaging

France is planning to introduce a penalty system in 2019 that would increase the cost of consumer goods with packaging made of non-recycled plastic.

France to tax non recycled plastic packaging

 

It’s part of a pledge to use only recycled plastic throughout the country by 2025, according to an environment ministry official.

Brune Poirson, secretary of state for ecological transition, said it was one of several measures planned in the lead up to the 2025 target, including a deposit-refund scheme for plastic bottles.  There are also plans to cut taxes for recycling operations.

“Declaring war on plastic is not enough. We need to transform the French economy,” she told the Journal du Dimanche newspaper.

Under the new plan, products with recycled plastic packaging could cost up to 10% less, while those containing non-recycled plastic up to 10% more, Poirson said.

Which is not possible to recycle?

Plastic Packaging Challenge for Industry

The British Plastics Federation has outlined an ambitious plan to make 100% of plastic packaging reused, recycled or recovered.

Plastic Packaging Challenge for Industry

Its intention forms part of a document – Plastics: A Vision for a Circular Economy – which sets out proposals to drive innovation in the sector.

Philip Law, director general of the BPF, said: “Our ambition is to agree upon industry-standard traffic light systems and best practice design tools that can be used by manufacturers to advise brands and retailers on the recyclability and sustainability of their products.

“As an industry, we will also continue to invest in innovation so that we can realise our vision to see 100% of plastic packaging reused, recycled or recovered.”

The BPF said that it wants all plastic packaging and single-use items re-used, recycled and/or recovered by 2030. Some leading brands and retailers have already committed to using only reusable, recyclable or compostable packaging by 2025, and the BPF is a signatory to WRAP’s UK Plastics Pact.

It added that it is consulting with members, brands and retailers and has already proposed extending and revising the current Packaging Recovery Note (PRN) system. The BPF said that the current PRN system should be extended to include plastic items that are not packaging products but are products used in conjunction with food and drink consumed on-the-go, such as cutlery or straws.

The first digital post print corrugated press in Europe

Smurfit Kappa is installing the new HP PageWide C500 digital press – HP’s most technologically advanced digital press for a corrugated application.

The first digital post print corrugated press in Europe

The press will be installed in Smurfit Kappa’s Interwell plant in Austria and is designed for greater customisation and flexibility of corrugated printing, the new industrial-scale press will be the first commercial HP single pass press in Europe.

The press will be installed in April and will support Smurfit Kappa’s extensive customer base in the FMCG sector.

With a fully integrated stack-to-stack workflow, the press combines digital simplicity with off-set replaceable print quality on both coated and uncoated paper.

The technology will provide brand owners with customised packaging solutions that can drive sales across both online and traditional sales channels.

Smurfit Kappa will sue the press in conjunction with its ShelfSmart and eSmart services.

The graphic flexibility and quality of the new HP PageWide C500 Press will further enhance the company’s service to drive brand recognition and provide fit-for-purpose packaging.

Furthermore, the HP water-based inks facilitate printing on both primary and secondary food packaging without an additional barrier which can comply with even the most stringent global food safety regulations.

Smurfit Kappa rejects a bid from International Paper

Smurfit Kappa has received an unsolicited acquisition proposal from International Paper (IP), which it has rejected.Smurfit Kappa rejects a bid from International Paper

IP reportedly proposed to acquire Smurfit Kappa, and Smurfit Kappa shareholders would receive a combination of cash and a minority holding in the combined business.

Europe’s largest cardboard box maker Smurfit Kappa said the proposal “fails entirely to reflect the Group’s strong growth prospects and attractive industry outlook” – which could leave the door open to an improved offer being considered in the future.

Smurfit Kappa’s enterprise value is about €9.8bn, according to FactSet data.

The board of Smurfit Kappa said after considering the proposal it was in the best interests of the Group’s shareholders to pursue its future as an independent company.

Smurfit Kappa recently announced EBITDA for 2017 of €1.2bn and a full year ROCE of 15%.

Plcs are obliged to ensure there is not a false market in their shares. It also increases the pressure on the bidder to comply with relevant regulatory timelines. This may have contributed to SKs decision to make the approach public.

Such a deal would create a super-group paper company and would mean a review of the deal by numerous competition authorities given the scale of the transaction and the spread of the two companies’ footprints. However, it may be deemed that these are more complementary than overlapping or there may be approval conditional on a number of divestitures. The Ball-Rexam mega deal approval also stipulated certain divestitures.

Liam O’Mahony, chairman of Smurfit Kappa said: “The Board of Smurfit Kappa has unanimously rejected this unsolicited and highly opportunistic Proposal.

“The Board believes that it is in the best interests of all stakeholders for the Group to pursue its future as an independent company, headquartered in Ireland, operating as the European and Pan-American leader in paper-based packaging. We strongly advise shareholders to take no action.”

International Paper did not comment.

Nicholas Mockett, head of packaging M&A at Moorgate Capital, said: “It is a strong rebuttal of the approach which may ensure IP walks away at this stage. A plc has a duty to shareholders to give due consideration to a legitimate approach. If IP increased its offer Smurfit Kappa would therefore reassess. The approach is not surprising given Smurfit Kappa’s strong position in Europe and Latin America and IPs strengths in North America. IP has recently increased its core focus, with the recent Graphic Packaging transaction.”