FNB News - "Self-heating and self-cooling solutions are interesting"

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INTERVIEW

"Self-heating and self-cooling solutions are interesting"

Monday, 23 June, 2014, 08 : 00 AM [IST]

In an increasingly fast-moving and competitive marketplace, innovation in packaging continues to play a key role in new product development and branding in the global beverage sector. In an email interaction with Anurag More, Kishore Agarwal, owner and managing director, SDU Beverages, spoke about innovations and prevalent beverage packaging trends in India. Excerpts:

How important is packaging for beverages?
Packaging is the most important point-of-sale merchandising tool. It gives a brand personality; adds value, aesthetic qualities and serves as a point of differentiation between competing products. With beverages, as with food products, consumers accolade the convenience-oriented features, including packaging that is easy to open, pour and serve, easy to drink and easy to hold. Product freshness again ranks high, and is especially important in milk, juices, and ground coffee.

Consumers also ranked environmentally friendly packaging as fairly high in importance. Innovative packaging is a value-add that can determine product format or brand choice. Packaging is more than just an attractive pouch or can. It protects the integrity of the product, ensures safety and long shelf life, and provides information to consumers.

What are the innovations happening in terms of packaging?
In an increasingly fast moving and competitive marketplace, innovation in packaging continues to play a key role in new product development and branding in the global beverage sector. Beverage markets continue to become more competitive and sophisticated as manufacturers and marketers increasingly look to develop products to satisfy customer’s preferences.

There are lots of interesting packaging concepts already introduced in the beverage industry. The most interesting packaging solutions is for self-heating and self-cooling beverages. Although at the moment this type of packaging solution is quite expensive. Packaging innovation is required to meet various changing needs of all sections of the supply chain – from the manufacturer through to the consumer – within an increasingly demanding regulatory environment.

What are the prevalent beverage packaging trends in India?
As per studies, the most preferred pack size is the individual (small) pack which is convenient, and easy to carry and consume. These are in great demand as out-of-home consumption is on the rise. Consequently, there is a growing consumer base, and also intense competition. Some companies are also offering their products in Tetra Paks, tins and PET bottles.

Fruit juices have created a space for themselves in regular household menus, as part of a family’s breakfast, social gatherings, and evening snacks. As a result, consumers are picking up multiple family packs at one go, which is an emerging consumption trend.

What is the most commonly-used material for beverage packaging in India?
Tetra Pak - the most commonly used packaging material in India with regards to liquids. Tetra Pak packaging gives a minimum six months shelf life to the product without the need of refrigeration and the use of preservatives. It allows the product to retain more colour, texture, taste and nutrition.

Is SDU into eco-friendly (green) packaging? If yes, could you throw light on it?
We at SDU have a great concern for the conservation of environment. All the initiatives that we take have some reasoning around being eco-friendly had it been the selection of land to manufacturing process to packaging. Some of the initiatives that SDU has taken could be understood through the following:

Lowest water usage ratio achieved

maximum extent reutilisation & recycling of water by providing necessary lines in civil construction
90% recovery of RO water
No CFC (chlorofluorocarbon) usage in the plant

Low carbon emission; no fossil fuels used in the plant, used agro waste as fuel for steam generation; well designed rain water conservation; complete waste water recovery system; lowest energy cost per litre of beverage production.

What steps are being taken by you to make your beverages safe?
Safety and quality of beverage has become the USP (unique selling proposition) of our product. Abiding by stringent production norms mandated by our partners and globally accepted best practices has added to the advantage of producing the safest produce. SDU has fulfilled all HACCP (Hazard Analysis and Critical Control Points), FSSAI (Food Safety and Standards Authority of India), GMP (Good Manufacturing Practice) and GHK standards in plant design. Our products are packaged in a patented triple layered aluminium stand-up pouch design, all adding to the beverage safety. The pouches are further packed in corrugated paper packs and shrink wrapped for complete safety. These pouches which are specially designed and built with technology, can keep the beverage safer and cooler for a longer period as compared to conventional packaging materials.

How big is the packaging for beverage industry in India? At what rate is it growing?
The packaging industry in India is expected to reach Rs 82,500 crore by 2015 owing to factors such as rising consumer demand, fast growing retail sector and new technologies.

The food and beverage and pharmaceutical segments occupy the largest share in the packaging industry, accounting for 85 per cent and 10 per cent, respectively. The plastic packaging market is expanding rapidly registering a growth of 20-25 per cent per annum. The packaging industry is poised to grow rapidly led by the increasing use of innovative packaging equipment and the rising flexible packaging market.

As one of the top Indian beverage players, do you think the current packaging norms are stringent enough, or do they need amendments? Suggest how they can be made stricter.

Although FSSAI is gaining popularity with their unified approach on varied standards, there is certainly room for improvement while commensuration of the global standards especially while we are competing with multinationals. The need is to have consumer-centric approach with open disclaimers so as they are aware and empowered while they discuss issues on health, quality of product, ingredients, contraindications with products and additives. The organisations should also introspect with a commitment towards maintenance of guided standards.