Consumer interest in healthy living and alternative lifestyles fuel the demand for new categories of beverages such as plant based drinks. Negative perceptions of sugar content in juices and nectars drives the shift to plain and flavoured water. Other strong trends include cultural adaptations, such as halal and kosher, in new growth markets, and the development of value-added and differentiated products, such as premium ice creams and yogurts.
We are addressing consumer needs in fast-growing categories in our existing business, such as organic, high-protein and lactose-free products. We also support our customers with initiatives to develop new categories, product formulations and packaging communication, while assessing the manufacturing requirements for packaging materials that comply with religious and environmental directives.
Growing concerns about plastic waste have led to legislation on several single-use plastic products, which directly impacts our packaging business and creates new challenges. Our history of progress in sustainability continued in 2018, as we made commitments to further fight plastic waste. This means tripling our investments over the next three years to produce more sustainable products, like paper straws, non-detachable caps and other new packaging materials that offer more environmentally-friendly alternatives for our customers.
e-commerce is rapidly capturing market share in the food and beverage retail industry and reaching a critical level, with 10 per cent of all food expected to be sold online by 2021. This shift to online retailing is transforming food distribution and posing a tremendous operational and commercial challenge to the value chain that encompasses retailers, brand owners and packaging companies.
Tetra Pak supports retailers and brand owners by adapting to the online retail shift and developing new and tailored solutions that this channel requires. We also seek advantages in building commercial frameworks with leading e-commerce players and exploring growth opportunities beyond our existing business.
Nowadays, consumers are embracing the concepts of re-using, repairing, recycling therefore fueling daily discussions about the value packaging should create.
Sidel is applying the principles of circular economy in packaging design by joining forces with industry partners active in the PET value chain. PET is strong, unbreakable, light, transparent and safe, offering virtually endless design opportunities. Above all, it is 100 per cent recyclable. And the environmental advantages are obvious – a lightweight material, PET allows for significantly lower transport costs and reduced fuel emissions.
The healthy living trend has accelerated the growth of water, juices, nectars, soft drinks, isotonics and tea´s as well as liquid dairy products. Consumers are looking for products sourced from natural ingredients – such as preservative-free beverages with a low sugar content and drinks with extra nutrition. This trend drives innovation in coconut water, infused teas, plant-based drinks, flavoured and functional waters, premium juices, as well as milk-based products fortified with vitamins, proteins, probiotics or fruit. Sidel is responding to this tendency by offering solutions that keep flexibility and sustainability at the core.
Dairy farmers in many countries face difficulties in recruiting the right staff to their farms, therefore farm automation is generally on the rise because of the labour shortages in the industry. The work-efficiency benefits of automatic milking systems are obvious when compared with traditional methods.
DeLaval has addressed these challenges by launching several innovative new products that enable a fundamental change in milking. The new DeLaval VMS™ V300 is a significantly upgraded milking system that is more efficient than its predecessor and easier to work with and manage. The work-efficiency advantages increase further when combined with the new DeLaval Evanza™ milking cluster. The Clover™ cartridge improves milking performance and the liners last twice as long as conventional liners, with service time that is three times faster. Cartridge exchange is effortless and doesn’t require specialist skills.
Geo-political uncertainties, trade disputes, currency movements and local milk shortages have led to continued volatility in milk and feed prices. These factors are important drivers of farm profitability. Trade disputes between the US and China and the recent drought in Europe have clearly affected milk and feed prices worldwide, putting pressure on farmers’ margins. One of our guiding principles is helping farmers do more with less in order to create sustainable businesses. Systems, products and services that improve efficiency, cut costs and enable better decision-making play an important role in counteracting the effects of global uncertainties.