Overcoming food safety challenges

AS MORE AND MORE companies partake of the food and beverage market in Asia Pacific, how do they maintain their competitiveness?  In recent years, we have been seeing US and European brands enter this profitable market through joint ventures, partnerships and distribution networks. In this report, we reached out to leading suppliers and manufacturers in the packaging and processing industries, to know what 2014 was like for them and what they expect for the year ahead.  

In China, Videojet director of Marketing, Rocky Zhou has observed the market for over a decade, having been exposed to working with international companies in sales and marketing. Through his experience with product labels, he says he has witnessed China’s transformation from a manufacturing hub to an innovation hub.

“In 2014, the Asia Pacific region has been one of the fastest growing markets due to the continued rapid expansion of Chinese and Indian label demand, Mr Zhou says. “In recent years, we have observed a shift away from glue-applied paper labels, meaning that in 2014 we saw an increased interest in our marking solutions. According to the consultancy firm MarketsandMarkets, the Asia-Pacific region is also driving global growth in food packaging technology, due largely to the rising popularity of convenience foods and branded products. This can be attributed to the expanding middle class with enhanced purchasing power, a more active lifestyle and purchasing habits, thus driving the increase of consumer packaged goods and the need to label them,” he said.  

Rocky Zhou, director of Marketing, Videojet

“In a highly competitive and time-demanding era, manufacturers, brand-owners and retailers now, more than ever, need to guarantee the traceability and authenticity of their products. Not only do companies need to continually produce new products to meet consumer demand but protect brand identity. As a world-leader in our field, it is through our high quality coding and marking solutions, that enable us to ensure that manufacturers comply with regulations, remain transparent and enhance competitiveness,” Mr Zhou says.

Traceability, authenticity and brand protection are words that echo through the industry. This year saw food safety issues impacting the restaurant and fast-food industry. Cognex Inc, a specialist in vision systems and barcode readers, also jumps at the opportunity to communicate the importance of installing vision systems in every packaging facility. 

“This year has been an interesting one, with the food industry coming under greater scrutiny by the authorities in many countries,” says Didier Lacroix, senior vice president for International Sales & Services, Cognex. “The uncovering of food scandals in China and Taiwan for example, has provoked the ire of the public – fuelling demands for better governance and safer food products. 

Didier Lacroix, senior VP for International Sales & Services, Cognex

“The use of illegal pesticides in farming and harmful additives for food processing, has put a dent in consumer confidence in China. According to a report by Al Jazeera, police have charged over 10,000 people in recent years for selling toxic food. At the same time, tougher laws are being put in place. These developments are important not only for the country, but also the overseas markets that import its food products,” Mr Lacroix says. 

“In the light of these problems, Cognex plays an important role in safeguarding food supply chains with our DataMan ID reader technology. Our readers facilitate the deployment of barcodes and 2-D codes, so that manufacturers can reliably track-and-trace their products anywhere in the distribution channels. At the same time, raw materials can also be traced back to the supplier, in the event that tainted product is discovered,” he explains.  “Our competitive edge lies in our ability to meet the customised needs of our clients. We recognise that no two manufacturing environments are exactly alike. So instead of merely selling products, we provide solutions that fulfil the exact requirements of each production line.” 

Mr Lacroix explains that codes are subject to quality degradation as they are exposed to the harsh conditions of manufacturing and packaging processes. Hence, the ability of readers and scanners to read them is compromised.  “Our solutions therefore, are built on cutting-edge technologies that can reliably read even the most challenging codes. Similarly, our In-Sight vision systems ensure dependable quality control to weed out errors on even fast-moving production lines. In-Sight cameras are capable of inspecting bottles, jars, tins and other containers for packaging integrity and correct labelling.” 

Strong packaging sector

In food and beverage packaging, Asia continues to be a bright spot for Crown Asia Pacific Holdings Ltd. “Emerging markets in Asia and around the world are still a draw for many businesses, and it is the same for Crown, particularly as we continue to see growing demand and increasing consumer preference in those regions for beverages packaged in aluminum cans,” says company president, Jozef Salaerts.  “The market as a whole has been competitive in 2014 and, moving forward, companies who maintain an edge will likely be those who find ways to reduce costs within the supply chain without compromising on quality. At the same time, the market will continue to welcome and favour companies who can introduce new innovations for brands to differentiate themselves and further engage consumers in an increasingly crowded field. 

Jozef Salaerts, president, Crown Asia Pacific Holdings Ltd

“Asia will continue to be an important region for Crown, and our growth plans as a company will align directly with those of our customers’ to ensure we have the capacity when and where they need it. In the future, we will continue to observe market trends and partner with our customers to introduce and/or develop new solutions as the market dictates. At the same time, as Asian markets continue to develop, we will leverage our global capabilities to introduce and apply new and innovative technologies from other markets into the region when the opportunities arise.”

Innovia Films, with representative offices in Singapore, Malaysia, the Philippines, Pakistan and Indonesia, is seeing steady growth for the region’s packaging market.  According to marketing manager, Packaging & Sustainability, Andy Sweetman, there will be a growing trend towards more sustainable packaging formats.  “This will involve the combination of different types of biopolymers to achieve the required barrier performance for the goods that are being packed.  Bio laminates utilising complimentary biopolymers such as cellulose, starch, PLA’s and even co-polyesters.  Innovia Films has been working with Sappi and BASF to produce structures for the coffee industry.  This form of partnership will, we believe grow over the next year, with all companies working together to develop structures that can offer sustainability using flexible materials.”

Mr Sweetman adds that in Europe, the industry is talking about mineral oil barrier for dried food products, with some countries considering legislation. “Scientific research has shown mineral oil to be an issue,” he says.  “Innovia Films is able to offer NatureFlex which provides up to five years barrier to mineral oils or a special Polypropylene film that provides up to 18 months barrier. Changing legislation in Europe regarding label materials has also meant that flexible films used for labels also needs to be food contact approved.”

Challenges in the industry

“One of the biggest challenges facing manufacturers is complying with more stringent regulation. These regulations can require a number of different solutions from more content in the code to advanced track and trace solutions. Companies may have to upgrade their current solution to meet the new regulations, or invest in new equipment,” says Mr Zhou. “Operators are also managing more complexity. There are more products to manage, more packaging types and substrates, and more codes to manage. Companies require solutions that allow them to changeover lines quickly including making code changes. Additionally, more code changes can lead to more coding errors.”

The company offers the new LPA system applies labels directly onto the outer case, shrink wrap and bundle packaging without the need for an applicator. “The print and apply labeler incorporates our Intelligent Motion™ technology which electronically controls the entire system. All the design elements of the machine are automatically controlled with precision, allowing us to simply take out the wear parts that make most other labeling machines fail and remove any need for manual adjustments to maximize uptime.”

According to Mr Zhou, the Videojet 9550 LPA is the only solution to print and directly apply onto secondary packages with speeds up to 150 packs per minute, enabling manufacturers to print effectively at high throughput. 

Packaging has to help the product stand out, of course.  “Generally speaking, in any developing market, one challenge that brands face is how to distinguish their products in the increasingly busy retail environment and ultimately build consumer loyalty and grow sales,” says Mr Salaerts of Crown. “With consumers often focusing on what’s new and original, brands increasingly have to work harder to maintain the recognition of their products. Consumers tend to gravitate towards what is unique and cutting-edge, and brands in turn are looking to enhance their packaging accordingly.” 

For Cognex, educating consumers on technologies is a must. “We understand it is sometimes rather difficult for a potential client to select the right vendor from a number of different ones. Helping the market understand that not all technologies and vendors are equal, is therefore a challenge for us. One way of overcoming this is through education,” says Mr Lacroix. “Our workshops and webinars are catered for this purpose and play an important role in demonstrating the strength of our solutions.”

Moving with the changing market

“As manufacturers grow in size and output, many of their QC (especially human-eye driven ones) processes can no longer keep up with production line speeds,” explains Mr Lacroix. “This poses a risk to their hard-earned reputations as substandard products can easily slip through inspections and may become a health hazard to consumers. A simple mistake like incorrect ingredient labelling could spell trouble if an individual develops an allergic reaction from using the product. As contract manufacturers expand, they are likely to produce items for different brands. A mix-up in labels or caps/lids during product changeover, could also result in a loss of reputation and repeat business.”

At Videojet says Mr Zhou, “the most important focus is for us to help companies integrate printing solutions for compliance with legislation requirements. This is to enable their traceability efforts and to combat counterfeit in industries such as pharmaceutical, medical, cosmetics and tobacco.  For example, from 13 December 2014, manufacturers across the globe producing food items for sale in the European Union (EU) will be required to adhere to the EU 1169/2011 directive and clearly highlight certain information within ingredients lists.  The directive’s aim is to improve transparency and traceability on the origin of unprocessed meat and provide greater clarity on nutritional value and allergens to consumers. The directive doesn’t stipulate any specific method of emphasizing this information however the preferred options include bold, underline or italic print. To enable manufacturers to comply with this legislation, we have prepared our DataFlex® suite of Thermal Transfer Overprinter (TTO) solutions for inline printing to allow manufacturers to easily modify the printing of nutritional information, with zero production downtime.

“For Crown, consumer product companies are increasingly seeking ways to differentiate their products on store shelves, whether through innovative designs or unique features of the packaging itself,” explains Salaerts. Against that background, Crown works with customers to help them understand the advantages that the beverage can affords them in this respect. Not only do beverage cans offer a large printable surface area which allows for a variety of decorating option, but Crown is able to tailor every element of a can – from its shape, to the texture, to its functionality – in order to create packaging that stands out in the consumer’s eyes.”

Mr Salaerts adds, “Expanding our own product line also reflects Crown’s commitment to helping customers stay in tune with changing consumer preferences and demands. New can sizes and formats, for example, are opportunities for beverage and brewing brands to engage consumers in new ways and grow market share. That is why, in 2013, we introduced several new aluminum beverage can sizes for the Chinese market, including 185ml, 300ml, 330ml sleek and 500ml cans. These sizes are ideal for those beverage brands that are increasingly seeking alternatives to traditional 330ml packaging, trying to hit a different retail price point or aiming to differentiate portion-controlled and wellness drinks, including energy beverages.