Bottling it all up

20 February 2013



As economic activity continues to limp along the bottom of the charts, if more products are
being packed into more glass containers, then surely things must be going OK? Statistics
and industry opinions can point to varying conclusions, as David Longfield discovers


Spanning several sectors as it does - cosmetics, beverages of all kinds, preserved foods, pharma - and providing presentational options at all qualities from luxury goods down to entry level, glass packaging could in itself be seen as something of a barometer for the health of the wider consumer goods economy.

In a précis of its report Global Glass Packaging Market 2013-2023 published in December 2012, business intelligence provider Visiongain asserts that: "Over the next 10 years the landscape of the packaging industry will change and glass will take a step back as plastics move forward, and this will be most keenly seen within the beverage industry".

However, the research company also predicts, based on its in-depth research and consultations within the industry, that: "Glass will solidify its image as being a luxury item and any product wishing to portray an image of sophistication and value will choose
glass above all others."

So, a mix of good news and bad, then? In this instance "taking a step back" means rather that the forecast growth for plastics packaging is expected to be higher than that for glass.

"Our research indicates that the glass packaging sector will grow by 6% CAGR from 2013-2023, and the plastics packaging sector by more than 7.5% CAGR from 2013-2023," points out Visiongain commercial director Sara Peerun. In value terms, this means the
market will grow from US$36.8 billion in 2013 to €64.5 billion in 2023.

Relatively speaking therefore, glass is "losing ground" to plastics packaging. "In terms of the overall packaging sector, glass will command a smaller market share in 2023 than it currently does," says Peerun.

It's a fair conclusion, based on the numbers, if perhaps presenting a rather downbeat slant on the figures in respect of glass packaging, but Peerun says Visiongain stands by its conclusions.

Positive aspects
Alternatively, though, it could be said that in times of continued economic difficulty, it's great news for the industry as a whole to see predictions for two of the major packaging sectors to achieve such solid single-digit growth over the coming decade.

Peerun does temper the forecast 6% value growth figure somewhat, by bringing inflation into the equation: "If you assume a historical average of 3% inflation, that actually means a real terms growth of around 3% per year".

Speaking for the industry at FEVE, the European Container Glass Federation, operations manager Michael Delle Selve agrees that the Visiongain position could be viewed as "unnecessarily negative", and at the same time he emphasises the added value benefits of glass.

"Rather than concluding plastics will overtake glass," Delle Selve says, "the report refers to a number of opportunities for the glass packaging industry to grow. Among others it refers to legislative bans and limits on materials like plastics." Russia is such an example, he says, where legislation is "attempting to ban PET as a packaging material for beer.

"As an industry we are convinced that glass packaging will remain the reference on the market," Delle Selve continues, "mainly because it can guarantee the service of a luxury packaging, but not necessarily at a luxury price."

On the contrary, he stresses: "Depending on the product, glass remains very competitive when you think of the added value it brings to products and guarantees in terms of health and safety, taste preservation, and environment friendliness. These factors are and will become more and more important in the future for consumers."

Consumer zeitgeist
Visiongain's report summary argues that the 6% forecast growth rate is a reflection of the sector's status as a globally mature market, and while certain subsectors are posting higher growth rates: "These subsectors do not affect the overall momentum of the market as a whole".

However, Rebecca Cocking, head of container affairs at British Glass, counters that glass presents a range of advantages. "Looking at wider markets, some brands even include glass as a selling feature," she says. "For example, in the latest smartphone and technology products - clearly demonstrating its high-end status in the consumer zeitgeist."

Cocking lists other features of glass that may, in the forecast period of 2013-2023, act to help move more brand-owners back to glass, away from the alternatives: stable pricing; reduction of food waste - an issue of growing global significance that hit the international headlines in January this year; 100% recyclability with no loss of purity; and the enhancement of brand image. And
Cocking also highlights the "significant results" achieved up to now in the lightweighting of glass packaging, with "newer, lighter and smarter bottles continuously being developed".

Lynn Sidebottom, sales & marketing director at UK-based manufacturer Beatson Clark, says that while plastics packaging alternatives have been on the increase over the last decade: "There are certain aspects that it simply cannot compete on, such as the environmental and health benefits, and unless some serious advancements in technology are made over the next 10 years, plastics will still have limitations in moving ahead of glass in certain sectors."

In the wine and beer sectors, for example, Sidebottom says: "Glass still remains the packaging of choice, due to its premium quality feel and sophisticated image, as well as the fact that things really do taste better in glass."

Beatson Clark has, Sidebottom adds, found that glass remains a strong choice for customers in its more premium, niche markets, and sees "no evidence of this changing in the near future". Indeed the company reports seeing some products "moving back into glass from plastics".

United in thought
Further backing for this mindset comes from Austria's Stölzle Glass Group, heavily involved in production of glass containers for the prestige beauty and spirits markets through Stölzle
Flaconnage.

"In 2012, the Stölzle Glass Group saw strong growth in all strategic business areas," says CEO Johannes Schick.

"While the mass market end of the beverage industry may increase its use of plastics containers, the prestige spirit end will continue looking to glass to confirm its luxury image," he says. "For the perfumery and personal care market,
there is no substitute for glass."

Schick adds that markets led by strong brands are performing "slightly better" than the average: "More time, energy and money are invested by them for products that are innovative and different".

And as with many other mature markets - a good comparison being those for distilled spirits - it looks as if emerging markets will be the source of the greatest growth opportunities for glass packaging, with Visiongain itself pointing out that: "The developed economies which were hit hardest by the recession have reached a plateau in their demand."

Either way, the glass packaging industry itself seems to be of one mind as to the direction in which it is going - whatever the numbers may say.

Luxury achievements for Stölzle

Stölzle Flacconage gained recognition at the WorldStar Awards at the end of 2012 for a decanter produced for Diageo's super-premium Johnnie Walker XR 21 Year Old whisky. A Johnnie Walker Blue Label decanter, for which Stölzle developed an exclusive glass colour and made use of complex moulding and five pass decoration, also won a coveted 2012 German Retail Packaging Award.

Stölzle has also produced the glass containers for a new haute couture perfume range, the first to be launched by US fashion designer Reem Acra. Designed by Doug Lloyd, a sleek rectangular glass flaçon in heavy flint is fire polished to a fine finish. For decoration, a vacuum process achieves a metallised finish, which is then digitally laser-cut away to leave a golden frame round a floral and dove pattern on the front.

A matching clear window is cut from the back, allowing the fragrance's colour to complement the decoration. Finally, the bottle is oversprayed with a clear lacquer. In the UK, Reem Acra Eau de Parfum is available in 30ml and 60ml sizes from Harrod's.

Signposting tradition and quality

O-I was involved in two launches in the drinks sector towards the end of 2012, which serve as good illustration of the differing roles glass can fulfil. The company teamed up with creative agency Pearlfisher to produce the bottle - at O-I's plant in Alloa, Scotland - for the launch of Edrington's new Cutty Sark Storm whisky.

Superseding Cutty Sark's Black and Blended Malt lines, which were packaged in a standard clear glass bottle, Storm is a new
blend featuring a higher proportion of single malt whiskies. To create a new 'brand personality' and shelf stand-out, a proprietary shape was developed and realised in green glass, embossed with a heritage statement, 'Since 1923 Our actions
define who we are'.

O-I marketing manager NW Europe Paul McLavin says: "Edrington wanted to make a statement of intent about the development of the Cutty Sark brand. They have found it in glass. No other material can bear the level of brand identity and embody the premium cues better than glass."

O-I also worked with Global Brands for the relaunch of its adult RTD drinks brand Hooper's - a range of three artisanal alcoholic beverages made with natural flavours and no artificial colours: Cloudy Lemonade, Dandelion & Burdock and Ginger Brew.

The products are said to meet the "current trend for nostalgia brands", and as such glass was seen as the obvious choice for the packaging, using 500ml amber glass bottles inspired by the hoops of a traditional barrel.

"Glass is the ultimate retro-styled pack, but it remains modern and relevant because of its purity, natural composition and the fact that it does not affect the taste of products," says McLavin. "All these facts aid brand owners' appeal to authenticity."

Ardagh the source for the sauce
In a shift away from Heinz's move to plastics containers for its eponymous ketchup brand in recent years, Ardagh Group says that its
development of a range of new jars for the iconic sauce was: "One of the most pleasing at Ardagh during 2012."

Targeting an adult audience with new products enhanced with either balsamic vinegar, basil and oregano, or roasted garlic, thyme and honey, the aim of the new jars is to increase potential usage at a wider range of mealtimes.

Ardagh's product design and technical teams have also been working with Beck's beer to reduce the weight of its 275ml Beck's and Beck's Blue bottles by 20g - or nearly 11%. When completed, the changes will bring savings of 2,642 tonnes of glass in 2013, the company says - equivalent to more than 200 modern double-decker buses.

Allied explores niche spirits sector
UK-based Allied Glass Containers has manufactured a super-premium style bottle for the launch by International Beverage in the US of a top-end brand of rum made in Thailand - Phraya. With a heavy base, broad shoulders and a tall elegant neck, the opulently gilded container - created in Allied's modern product development facility in Leeds using advanced design and production techniques -emphasises the luxury credentials of the Phraya rum brand.

Allied sales and marketing director Philip Morris says: "This is a very exciting piece of packaging which was achieved by combining individuality with advanced technical expertise".

In November 2012, Allied Glass announced it had achieved one of its main objectives for the year - accreditation to the health and
safety management standard BS OHSAS 18001, following a week-long audit by the British Standards Institution.

Verallia goes big on rosé wines
November last year saw the launch by France-based Verallia, the packaging arm of the Saint-Gobain group, of a range of large wine bottles under the umbrella 'Irresistible'. The new range, consisting of eight magnums (1.5 litre) and two jeroboams (3 litre),complements that of the Rosés Irrésistibles wine range, launched at the end of 2011 and available in nine 75cl models.

The inspiration for the Irresistible Large Bottles was the continuing consumption boom of rosé wines in France. With a large selection of rosé wines available in French retail outlets, the larger size bottles will be a "great differentiation tool", according to the company.

The production process that is used for the Seduction Bling magnum in the Irresistible range allows for an eye-catching decorative effect, covering the bottle in graphic bubbles.



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