Trying to keep ahead of the game

12 January 2009



Tetra Pak strives to retain its position in the aseptic packaging sector


Even though Tetra Pak is the market leader in the aseptic packaging sector, it cannot afford to be complacent. There’s always room for competition; trends and markets never stand still and the environmental lobby is having an increasing impact. As readers of Packaging Today may be aware, the company has recently announced a €15mn (£11.6mn) investment at its research and development, test and assembly plant in Modena, Italy, underpinning its commitment to innovation. Packaging Today caught up with Michael Grosse, Tetra Pak, to find out more on the current challenges and potential opportunities.

Packaging Today: What are the main factors driving development in the aseptic drinks carton sector?

Michael Grosse: When we pioneered the development of aseptic technology in the 1950s and 60s, consumer convenience and cost-effectiveness, together with hygiene and food safety, drove innovation. Innovation today is still driven by these key demands, and expectations across the value chain have been rapidly growing. In today’s increasingly global market-place, industry consolidation, increasingly fierce competition on the retail shelf and rising raw material prices means our innovation is more focused on being cost-effective than ever before. We apply our approach around functionality, quality, food safety, environment and total cost right across the value chain.

Packaging Today: Tetra Pak remains the world's largest aseptic drinks carton manufacturer. Is the company experiencing competition from China and other economies?

Michael Grosse: Competition is a natural aspect of business life, and we welcome this as it strengthens our performance and drive towards continuous improvements in everything we do. We provide one-stop-shop processing and packaging solutions, which are becoming increasingly automated and integrated. Our customers receive support in more than 150 countries.

Packaging Today: China is currently Tetra Pak's largest customer. How long has this been the case and why do you think this has happened?

Michael Grosse: Tetra Pak has had a presence in China since the 1970s, and in recent years this has become our top market, producing more than 23bn packs per year and contributing to almost 20 per cent of worldwide deliveries. There are several reasons for the success of our Chinese market; one is that our founder Ruben Rausing had visions of providing milk beyond Sweden’s borders; the second is our long-term approach to business development, where we work closely with local partners and communities. We have invested more than €250mn (£208.6mn) in China, most recently spending €60mn (£50mn) on a packaging materials manufacturing plant in Hohhot. As Chinese diets change, there is an increasing consumer base. Furthermore, the growth in household incomes will result in further growth.

Packaging Today: How are environmental factors shaping Tetra Pak's design and materials selection?

Michael Grosse: Our founder once said: "a package should save more than it costs". This philosophy has become an integral part of our business, embedded in every aspect of our product life-cycle. That necessitates increasing the percentage of renewable materials in our packaging resources, which currently stands at around 75 per cent; sourcing raw materials from well-managed, sustainable forests; and promoting consumer recycling. It also means finding ways to reduce waste, decrease energy consumption and reduce the carbon impact of our products and operations.

Packaging Today: What trends do you regard as shaping the future of aseptic carton design during the next 5–10 years?

Michael Grosse: Customers are constantly looking for ways to reduce their overall operating costs by improving equipment performance, resulting in less downtime, lower maintenance costs, greater operator efficiency, higher speeds and increased flexibility to change from one packaging format to another. For many customers, operational costs represent 5–15 per cent of their total system costs—so even a 1–2 per cent reduction can impact the bottom line.

From a consumer perspective, demands are increasing and households are changing. In addition to the trend for healthy eating and well-being, people are becoming more mobile and consequently require solutions around on-the-go packaging. According to recent research from Roper Reports Worldwide, 30 per cent of consumers purchase a drink, pastry, sandwich or ice cream ‘to go’ at least once a week. That includes both developed and developing markets. To meet this growing market, packages need to be smaller, easy to carry, easy to drink and pour from and resealable.

They also need to be environmentally-friendly. According to a recent Roper study commissioned by Tetra Pak and conducted amongst consumers in 25 developed and developing countries, the environment is one of the top five concerns amongst consumers worldwide. Carton packaging, primarily made from renewable resources, is perceived as being more environmentally-friendly than other packaging forms, according to the Roper study.

Michael Grosse is Executive Vice-President of Development and Engineering at Tetra Pak


Michael Grosse Tetra Pak claims that the A3/CompactFlex iLine can produce 9000 portion packages per hour, realising 19 package variants. A compact line Tetra Pak has just announced the global availability of Gemina Aseptic. According to the company, this is the world's first roll-fed gable-top shaped package, suitable for packaging both juice and milk-based products. An interesting shape of carton

A compact line A compact line
Michael Grosse Michael Grosse
An interesting shape of carton An interesting shape of carton


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