AptarGroup Acquires Packaging Manufacturer MBF

One of the leading US Packaging manufacturers AptarGroup Inc has acquired a French packaging components maker MBF Development for about $43 million cash.

As part of the deal, AptarGroup whose 2004 sales topped $1.3 billion will assume $10 million in debt to buy out MBF Development whose yearly earnings are around $52 million.

AptarGroup, with 2004 sales of about $1.3 billion, supplies dispensing products such as finger tip sprayer pumps, dispensing pumps, treatment pumps, fragrance pumps, and foaming dispensers servicing the personal care, cosmetic, fragrance, food and pharmaceutical markets.

Oxygen Scavenging PET Bottles and Jars

With advent of an improved oxygen-scavenging barrier that is undergoing testing right now, PET will now be able to take and even larger sector of ridged packaging from bottles and jars.

PET is by far one of the fastest growing segments of the beverage bottling industry, but has also made huge inroads in the cosmetic and personal care and food industry. Much of its rapid acceptable into the market is due to the fact that PET bottles and jars are not only shatterproof and recyclable now (see PET recycling increases for 2004 on Packaging Blog), they are as cosmetically appealing as glass - without the weight.

One of the key negative attributes of PET Bottles and other PET packaging containers is that fact that PET does a poor job in keeping oxygen from permeating the container and reacting with whatever is inside. Oxygen reacting with the fill of a container can affect the flavor of foods and drinks, the color and fragrance of a fill and it can dramatically affect the shelf life of some products as well.

Constar International has worked hard to beat this problem and is now on its third solution DiamondClear which when blended with monolayer PET, binds oxygen and stops the negative effects of oxygen on the fill.

The 2 prior methods Constar International had to correct this problem had their own issues: Oxbar is a multi-layer oxygen scavenger but required beverage makers to invest in multilayer injection equipment, and MonOxbar, which is a monolayer barrier material which cost less than Oxbar but was not accepted well due to the pearlescence and haze, which dramatically reduced its attraction on the shelf.

Expect to see far more products packed in PE packaging such as teas, sauces, creams and more due to this exceptional new advance in PET plastics.

PET recycling increases for 2004

The recycling rate for polyethylene terephthalate (PET) plastic used in packaging for rigid containers such as bottles and jars has increased to 1.003 billion pounds in 2004.

According to 2004 PET Recycling Rate Study published by National Association for PET Container Resources (NAPCOR) 21.6% of post-consumer PET containers were recycled which is the highest percentage since 2001.

I find it reassuring that finally Pet recycling seems to have taken off and it has occurred just in time too since the supply of PET container such as bottles and jars has also set a record of 4.637 billion pounds. Obviously, there is still a long way to go with recycling PET containers, but I find this news very encouraging. The recycling rate is also helped by fact that Recycled PET (RPET) has stable prices that now effectively can compete with virgin PET. Thanks to enforcement of Rigid Plastics Packaging Container Law in California which requires a minimum of 25% post-consumer recycled content in rigid plastic packaging for nonfood products, RPET bottles and jars have tripled.

While it is encouraging that post consumer recycling of PET packaging is increasing, there are still companies that use PET packaging that are dumping PET bottles and PET jars when they become excess or surplus rather than selling or brokering their surplus packaging with a company that specializes in liquidating surplus packaging such as Closeout Packaging.

It is amazing that some companies will let obsolete surplus packaging deteriorate in their warehouse and use up valuable real estate rather then turning their surplus packaging into cash. When was the last time you went through your warehouse to see what surplus packaging to could sell and turn stagnant inventory into working capital all while saving the environment?

Caps and closures use in packaging predicted to rise

According to world renowned research group Freedonia, accelerating economic growth, increased demand from China and packaging such as gabletop and aseptic drink cartons and plastic pouches no adding closures, an average growth rate of 4.8 percent by 2009 is expected for closures and caps in packaging.

Even though the price of raw materials has caused a spike in the pries of plastic packaging components, since they are few or no alternatives to caps and closures used in packaging, their sales are not expected to suffer but actually thrive.

the Increase in cost for the raw materials used in caps and closures have no only increased the short supply of raw materials due to a double wallop of hurricanes to the Gulf region this year, a huge increase in demand by China driven by dispensing caps and closures, child resistant safety caps, and overcaps are putting a squeeze on supply and driving material costs up.

We have all seen a dramatic decline in the use of metal caps for packaging and this void in the market has been predominantly filled by plastic caps and closures.

In a bold move, the makers of Dannon yogurt Dannone, now saves 3.6 million pounds of plastic each year by eliminating the plastic overcaps formally used on their 6 oz yogurt package. While this tactic worked form Dannon, most companies don't have the luxury of being able to remove excess packaging in order to increase packaging savings.