tetra recart 21st century alternative to the can - Tetra Pak

TETRA RECART 

21 ST CENTURY 

ALTERNATIVE TO THE 

CAN

Tetra Pak 

Who are we?

Global Company 

Present in more than 170 countries across 5 continents 

157 billion packs sold in 2010 

9,048 filling machines in operation in 2010 

42 packaging material plants 

11 R&D units 

Net Sales: 10.4 billion Euros 

21,672 employees

“Protect What’s Good - That’s our promise, 

which goes beyond our commitment to develop products that make 

food safer with minimum impact on the environment. It translates our 

passion for customer success, our passion for product quality & 

innovation, and our passion for doing what’s good and helping protect 

the environment for future generations”.

Innovation 

Innovation is not what you think: 

It’s actually how you deliver new 

solutions to current consumers demand 

Breakthrough Technology 

OUR PASSION FOR PRODUCT PROTECTION 

AND INNOVATION

What is Tetra Recart

The 21st Century Alternative for Canned Food 

Food Carton Retorting

Our Portfolio Today 

TPR1 Line 

24 000 pph 

200ml (7oz), 

340ml (11.5), 

390ml (13.5), 

500ml (17.5) 

TPR2 Line 

6 000 pph

Tetra Pak R1 

Accelerate your business into the future 

TPR1 

TRC 340 Midi 

TRC 390 Midi 

TRC 500 Midi 

• 9000 - 24 000 pph 

• Low operating costs 

• Size change over time 8 hours 

• Flexible filler configuration 

• Easy to operate 

• Automatic carton loader 

Package Heat treatment 

Static retort 


Pasteurization 

Pasteurization 

Static retort Pasteurization

Tetra Pak R2 

The compact, flexible, lower investment solution 

TPR2 

TRC 200 Mini 

• 6 000 pph 

• Lower initial investment cost 

• Size change over time 30 min* 

• Easy to operate 

TRC 340 Midi 

TRC 390 Midi 

TRC 500 Midi 

Package Heat treatment 

*Within same bottom format 




Static retort

Source: Tetra Pak 

Global Brands in Tetra Recart 

National and Retail Brands across multiple categories 

33 retail brands 

66 brands

Protenergy Natural Foods 

Kerry Foods 

Pacific Foods 

Herdez-Del Fuerte (x2) 

Watt’s 

Coniexpress 

Camil 

Brasfrigo (x2) 

Installed Base – 26 lines 

5 additional lines in 2010 

Bonduelle 

Carbonell 

Horticoalba 

Jealsa 

Columbus (x2) 

Conserve Italia 

A Russo (x2) 

Copador 

Boschi 

Doggy (x2) 

Pamapol 

Al Rabie 

Del Monte

Market performance 2010 

Solid performance in all categories introduced across Europe 

Vegetables 

4% 

Mexico 

Salsas 

3% 

YTD Nov YTD Nov 

Brazil 

Vegetables 

8% 

YTD Sep 

UK 

Tomatoes 

4 % 

YTD Dec 

17 % 

Italy 

20% 

Beans Vegetables Sauces 

Sweden 

Beans Tomatoes Pet Food 

10% 3% 

YTD Nov YTD Nov YTD Oct 

23% 

5% 

Sauces 

18% 

YTD Sep YTD Sep YTD Sep YTD Sep 

Sources: Brazil Nielsen Homescan Q3 2010 kTonnes 

Mexico Nielsen Nov 2010 kTonnes 

Sweden, petfood, Nielsen w36 2010 kTonnes 

Sweden tomatoes, Nielsen w36 2010 & Euromonitor 2010 kTonnes 

Sweden, beans, Niielsen w36 2010 kTonnes 

UK TP sales & Euromonitor w52 2010 kTonnes 

Italy vegetables, IRI Nov 2010 kTonnes 

Italy sauces, IRI Oct 2010 kTonnes

Step change in customer market performance, and share 

of TRC system within customer portfolio 

Italy- Veg 

Italy- Beans 

46 

44 

42 

40 

38 

36 

46 

41 

36 

43.4% 

45.5% 

2009 2010 

45.8% 

49.1% 

2009 2010 

GoGreen 

15 

10 

8 

6 

4 

2 

0 

Doggy 

5 

0 

0.0% 

2006 2010 

3.7% 

13.0% 

7.0% 

2009 2010 

Source: YTD retail sales, kTonnes, IRI and Nielsen 2010

The GoGreen Case in Sweden 

Sustained growth through innovation 

Young , modern brand 

since 2004 

simplicity 

Strong brand equity 

Perceived as the leader in 

‘Good For You’ Products – 

Non Dairy, Dry Beans … 

Launch 2006 

Brings Innovation to the 

category 

Category innovation 

Bean Salsas – add value 

12.90 SEK 

3 SKU’s @12.90 SEK 

Standard range 

Build volume 

12 SKU’s @10.90 SEK 

Extensively Marketed 

through all channels 

0% 

0% 

Established brand 

Nov 2006 

Source: Nielsen, MS beans category, 

total Sweden by tonnage 

Result 

2010 

Innovation: 

Drives Trial, creates loyalty 

Gogreen’s product mix (value): 

57% 

43% 

13% 

Standard 

range 

SALSA 

3 SKUs 

Organic 

Motivating 

Continuous 

Innovation 

Sauces 

Marinated

Numerous consumer studies find recurring 

themes 

Tetra Recart supports innovation in foods category 

25 countries 

10 different 

markets 

>90 consumer 

studies 

>50 concepts

Strong consumer preference towards 

carton 

Reasons for preference in select countries 

USA UK Sweden 

•Fresh 

•Easy to handle 

Tomato 

68%* 

•Easy to store 

•No tin taste 


59%* 

Brazil Spain 

•Easy to open 

Vegeta 

bles 

86%* 



Source: Gfk Quantitative research, 2007 

Tuna 

77%* 


•Environment 



•Hygienic 

Reasons for carton preference – Top 3 

spontaneous mentions 

Beans 

89%* 

Saudi 

Arabia 

Beans 

93%* 

*% who prefer Tetra Recart (compared to the can) of those 

who have bought it at least once 



•Easy waste 

separation/recycling 

•Health image 

•Easy to open 

•Easy to store

Tetra Recart Consumer Perception 

A Global Summary 

Fresh 

Hygienic 

Freshness – no metallic 

taste 

Natural 

Association to healthy 

food 

Environmentally 

sound 

Environment image 

Recyclable 

Safe 

Preserves well 

No sharp edges 

Source: >80 consumer research studies 

Convenient 

Easy to open 

Efficient to store/stack 

Can store residual 

product in the package 

Modern & 

Innovative 

Modern 

Innovative

US Soup Aisle 

Landscape

Category has struggled to grow 

Despite supporting trends in Wealth & Wellness and In- 

Home Cooking innovation could not be sustained 

Stagnant 

Category 

• 5.3% sales growth 

from 2007-2009 driven 

by RTS broth, 

condensed wet soup, & 

dry soup (yakisoba) 

• Yakisoba (dry soup) 

and Private Label (all 

sub-segments) drove 

this growth 

Source: Mintel 2010 

Innovation 

• Health & Wellness 

(Select Harvest +335%; 

V8 +248% 2008-2009) 

• Product launches 

leveraging restaurant 

or celeb. Chef quality 

equity 

• Packaging trends 

support eco-friendly 

and portability 

lifestyle(weekday 

lunch is most popular 

eating occasion) 

Recession 

Impact 

• Increase in in-home 

cooking and usage of 

soup as an ingredient 

• Consumers seeking 

most value at lowest 

price causing them to 

“trade down” to 

Retail Brands (PL RTS 

+18.8%; PL Condsd 

+10.6% 2008-2009) 

• Increase in destination 

shopping at Mass 

Merchants

Carton broth has been the most significant 

contributor to retailer profitability, up by 86% 

RTS Canned Soup has seen a decline during the same period 

Per Store Weekly Adjusted Gross Profit By Soup Segment 

$800 

$700 

$600 

$500 

$400 

$300 

$200 

$100 

$- 

2007 

2009/2010 

Boullion Carton 

Broth 

Canned 

Broth 

Condsd 

Soup 

Ramen 

Noodles 

RTS 

Soup 

Carton 

RTS Dry 

Soup Mixes or 

Canned Bases 

Adjusted Gross Profit= Gross Profit plus all trade and term dollars 

2007 SuperStudy retailers: Jewel-Osco, Ralph’s, and Giant Carlisle 

2009/2010 SuperStudy retailers: Jewel-Osco, Safeway, Kroger, Stop and Shop, and Roche Bros. 

10% increase in carton broth skus 

drove 62% increase in per store 

weekly sales over the past 3 years 

2007 2009 / 2010 

% of Aseptic SKUs in Broth 60.3% 70.1% 

Average Broth Sales $631 $1,024

Carton Stimulates Broth Category 

While unit share has grown to 35% 

dollar share of aseptic carton has surpassed 50% 

1.2 

1.0 

0.8 

0.6 

0.4 

0.2 

0.0 

Share of Units Sold – Broth Category 

90.6% 86.9% 83.2% 78.0% 72.0% 67.0% 65.0% 

9.4% 13.1% 16.7% 21.9% 28.0% 33.0% 35.0% 

Aseptic Can

Aseptic carton has consistently 

brought new users to the category 

14 

18 

26 

Broth household penetration 

28 

41 

42 

40 

Aseptic HH Pen Can HH Pen 

38 

52 wks ending Dec 06 




Source: Nielsen Homescan

A Summary | Key success drivers in broth 

Early Entry By 

Brand Leader 

Format supported new usage 

occasion & communication 

1 

4 

Size Differentiation 

(32oz carton vs 14.5 oz can) 

Mainstream 

32 ounces 14.5 ounces 

Aisle Penetration with 

multiple brands 

Natural/Organic 

Chefs 

2 

3

US Soup Market Activity 

100+ skus during 2010 Soup season

Successful natural / organic branded 

launches

Strong Repsonse from Retailers 

Building the ”New Category” Range

US Consumers Recognize 

Tetra Recart Value Proposition 

Fresh, Natural, Convenient 

1. 

► People buy premium soup for a 

superior product 

► Soup in Tetra Recart is perceived to 

deliver a fresher, more natural 

tasting product than can be 

delivered in a can 

► Convenience is the second 

advantage of Tetra Recart over the 

can: 

– Easier to open, to pour and to 

reclose 

– Easier to dispose of and “greener” 

Each segment in both channels recognizes and 

responds to Tetra Recart’s value proposition for soup 

Natural Channel 

Carton Users 

Traditional Store 

Carton Users 

Natural Channel 

Can Users 

Traditional Store 

Can Users 

Prefer Tetra Recart No Preference Prefer Can 

54% 

51% 

60% 

58% 

0% 20% 40% 60% 80% 100% 

Q: Which of these two brands do you prefer? 

7% 

12% 

8% 

12% 

39% 

32% 

37% 

30%

MULTI PACK 

► Over half of soup consumers say they 

Stock up on soup. 58% do so regardless 

of sale activity. 

HEALTH AND WELLNESS 

► When purchasing consumers state that 

promotion/sale and the product’s 

health/wellness benefits are top reasons 

to purchase. 

BPA FREE 

Innovation Driven by Consumer 

Purchase Patterns 

► Among total consumers, roughly 40% are 

aware of BPA, and half of those BPAaware 

consumers are concerned about it. 

25% 

21% 

Only purchase when on 

sale 

Purchase When Needed or Stock Up 

58% 

58% 

50% 

58% 

25% 

22% 

Stock up on soup Purchase it when I need 

it 

Stocking Up Behavior 

43% 

42% 

I alw ays stock up w hen I shop 

for category 

I only stock up if there is a sale 

Ready to eat Condensed

Innovation Driven By Consumption Patterns 

Upsize on Top Skus 

Chicken 

Noodle 

Vegetable 

Beef with 

Vegetables 

Chicken with 

Rice 

Chicken 

Vegetable 

Flavors Typically Eat 

Ready to Eat Condensed 

37% 

37% 

84% 

45% 

48% 

57% 

49% 

By itself as a meal 

for myself 

Cream of 

Mushroom 


Cream of 

Chicken 

Chicken 

Noodle 

Cream of 

Celery 

29% 

By itself as a meal 

f or my f amily 

35% 

43% 

52% 

58% 

26% 

21% 23% 

62% 

Typical Product Use 

11% 

Consumers 

typically eat the 

entire can when 

using. 

71% 

As a side dish In a recipe or to add 

other ingredients to 

16% 

10% 

As a snack 

Ready to eat Condensed 

Consumers 

typically use an 

average of 2 

cans at a time.

2. 

Leverage Points of Differentiation 

•Fresher taste 

•Good storage 

•Light weight 

”associate it to broth” 

”less processed than cans 

and won’t have that metal 

taste” 

”the box looks smaller” 

•Familiar 

•Cheap 

•Sturdy 

•Home made 

•High quality 

•Visibility 

•For dry soups 

•Light 

”Good old cans” 

”Metal taste” 

”Lower quality 

ingredients” 

”More gourmet” 

”They are higher 

end soups” 

”Institutional 

looking” 

”Space food” 

”Army food” 

”Unappetising”

The Benefits of Being 

Perfectly Square

Supply chain cost savings 

Stem from a number of factors 

+18% 

+15% more 

packs per truck 

More Packs Per Pallet Weight efficiency Tray Design

Glass jar 

Steel Can 

Tetra Recart 

A light weight package 

PM weight for 400g packages 


18 g 

50 g 

200 g 

For every 1 million cans, 32 tons less packaging 

For every 1 million jars, 182 tons less packaging 

Conversion from steel can 

to Tetra Recart reduces 

package weight with 64%

Efficient transportation 

More filled packs per pallet and truck 

Packs per pallet 

Packs per truck 

400g can Tray: 3x4 TRC 390 Tray: 2x6 

1 560 

1250 1167 

EUR pallet EUR pallet 

+18% 

49 920 +15% 

European conditions: 40 ton truck 

1 836 

56 916

Tray design 

Efficient handling in the store 

In-store handling time* (s/tray) 

Can 400g, 3x4 low tray + 

shrink-wrap 

Tetra Recart 390ml, 

Open top tray, 2x8 

7,6 

14,4 

5,3 

3,0 

6,4 

15,9 

3,1 

-33% 

23,9 

Tray opening 

Tray shelf placement 

Waste handling 

• Easy to open tray – just rip off the front 

• No shrink-wrap that takes time to remove 

• More stable and compact tray to handle once opened 

• Made out of one material – cardboard – for more efficient waste handling 

Source: STFI Packforsk, Tray handling study 2007, Sweden 

*Note: Indicational figures only due to low base = 10 canned food replenishers from retail trade

A forward-facing package… 

Can shelf TRC shelf 

More efficient merchandising 

•No can-turning necessary 

Shelf impact 

Always facing the 

consumer 

Billboard effect 

100% printable 

package 

Easier for consumers to locate & shop

…that creates an impact 

Always facing the 

consumer 

Billboard effect 

100% printable 

package

Increase On-Shelf Inventory 

Aseptic cartons would allow retailers to stock 39 more units of 

soup in 4 feet of space than cans 

18.6 oz. RTS Canned Soup 

24 cans per facing x 9 facings per 4-foot shelf= 

216 cans per 4-foot shelf 

Willard Bishop 2010 Profitability Study 

18.3 oz. RTS Aseptic Soup 

15 facings per 4-foot shelf x 17 cartons per facing 

(11 stand-ups + 6 laydowns)= 

255 cartons per 4-foot shelf

Increase On-Shelf Variety 

Considering the higher shelves required to support the racks, 

aseptic cartons could more than double space in a 4-ft set 

18.6 oz. RTS Canned Soup 

216 cans per shelf x 4 shelves= 

864 cans per four-foot set 


18.3 oz. RTS Aseptic Soup 

255 cartons per shelf x 7 shelves= 

1,785 cartons per four-foot set

Out-of-Stock Impact: Can vs. Carton 

Weekly sales losses from out-of-stocks could be trimmed in half 

Cartons could cut lost sales from out-of-stocks by over $5 

million for retailer with 2500 stores 

Value of Aseptic Cube Efficiencies On Out-of-Stocks 

Store Out-of-Stock Average 8.0% Industry Standard O-O-S Avg 

Walk Rate 40.0% Industry Standard Walk Rate 

Approximate Lost Sales 3.2% 

Weekly RTS Sales per Store $2,467 

Estimated Weekly Lost Sales $78.96 (3.2% of RTS Sales) 

Estimated Weekly Lost Sales $39.48 (1.6% of RTS Sales) 


2009/2010 SuperStudy retailers: Jewel-Osco, Safeway, Kroger, Stop and Shop, and Roche Bros.

Shelf Efficiency Case Study 

Walmart Supercenter – Dallas, TX 

RTS and Condensed Real Estate within Soup Aisle 

Fixture capacity = 9277 Units 

►CO2 emission from production of raw primary packaging materials over whole fixture = 3113 lbs 

►Weight of primary packaging over whole fixture = 1124 lbs 

JDH Solutions Ltd, UK Soup and Vegetable Shelf Efficiency Study, Feb 2011

Shelf Efficiency 

Convert all cans to cartons: 15% more units and 16.6 linear free released 

Fixture capacity = 10,729 Units 

►15% more capacity than original (all cans) 

►Total space released = 58 facings = 16.6 linear feet 


Shelf Efficiency 

Insert New Variety Into Released Space 

Fixture capacity = 12,116 units 

►30.5% increase in unit capacity 

►58 additional facings 

►66% reduction in CO2 emission from primary package material 

►51% reduction in weight of primary package material 


Soup Category 

Carton Vs Can HH Penetration at Retailer X 

• Soup Carton products are experiencing faster HH Penetration growth rate 

Vs Can 

• The % of HH repeating Soup Carton products purchases increased while 

Can remained relatively flat in the latest 52 Wks 

47.3 

+1.0 

48.3 

16.6 

+3.3 

19.9 

Soup - Can Soup - Carton 

% HH Buying - YA % HH Buying - TY 

+0.5 

Source: SymphonyIRI Group National Consumer Panel Data. Shopper Insights Advantage ILD: 52 weeks ending 2/20/11; 

74.5 

75 

45.0 

+5.1 

50.1 

Soup - Can Soup - Carton 

% of Buyers 2x+ Buyers - YA % of Buyers 2x+ Buyers - TY

Environmental Profile 

Tetra Recart shows positive LCA performance 

Low weight 

Transport efficient 

High proportion 

renewable material 

High proportion 

renewable energy 

Global warming potential 

(Kg CO2 per 1000 packs) 

300 

250 

200 

150 

100 

50 

0 


Tin can 

Stand up pouch 

Glass jar 

0 10 20 30 40 50 60 

Fossil resource use 

(Kg crude oil per 1000 packs) 

Source: IFEU Gmbh 2006, “LCA for Tetra Recart and competitive packs in Germany”, Peer reviewed study 

Alu can 

Energy 

demand

Tetra Recart is FSC-certified 

Carton Recycling Reaches Milestone! 

In January 2011, consumer access to carton recycling 

reaches 30% in the US 

– FSC 

Forest Stewardship Council 

certification ensures that the 

paperboard comes from wellmanaged 

and controlled sources

Household Recycling Access 

Results to Date 

30.6

Retailer 

Benefits 

Consumer Benefits 

Environment 

Benefits 

Why Tetra Recart? 

Exponential Gains Across Value Chain 

Shelf space saving 

-30-40% 

Renewability Carbon 

footprint 

Shelf impact 

Waste 

reduction 

Packs per pallet/truck 

+18% 

+15% 

Convenient Fresh/Natural Light Weight

Tetra Recart Resouces 

For More Information Contact: 

Blaine Johnson, Sr. Sales Executive 

(940) 565-8983 

Blaine.Johnson@tetrapak.com 

Patty Mathison, Sales Executive 

(940) 565-8790 

Patty.Mathison@tetrapak.com 

Mary Therese Williams, Category Manager 

Food & Wine 

(847) 955-6487 

Marytherese.Williams@tetrapak.com

tetra recart 21st century alternative to the can - Tetra Pak

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