A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 1 2007
FOR WIND POWER
COPPER POTS MAKE
OLYMPIC GOLD FOR
CHINA IN HYGIENE 2008
GO HIGH FASHION
HOW TO KEEP
Sky-high patent numbers * Sustainable transport with CTI * Build it out of wood
Content Nº 1 2007
At eight o’clock in the evening
on the eighth day of the eighth
month of the year 2008, the
opening ceremony for the Beijing
Olympic Games will begin.
COVER page 6-13. 6
THE OLYMPIC GAMES ARE OF
IMPOR TANCE TO CHINA.
EXPERTS HAVE BEEN CALLING IT CHINA’S
04 SHAPE UP
A record number of patent applications.
Incontinence protection growing in the US. And
more news from around the world.
06 SHAPE COVER
Beijing is getting ready for the Olympic Games in
2008. Air pollution will be reduced by relocating
more than 100 factories.
Seafood and wind power are more popular than
ever before. Read the latest trends, including new
ways for finding out what consumers really want.
Andrew Cookson predicts trends in the retail food
business. According to Cookson, people are now
more willing to buy lower-quality products to
have enough money left over to to buy cellphones.
Trees need a well-developed root system in order
to grow well. Find out how copper can help.
26 SCA INSIDE
Tork won the Wembley contract, Libero is sellling
well and Packaging operations in North America
have been sold – all that and more news from SCA.
What does Scandinavia’s tallest wooden residential
building look like? See page 30.
34 SHAPING A VIEW
Andrew Winston helps leading companies think
environmentally to drive growth.
SCA Shape An SCA Group magazine Address
SCA, Communications and Investor Relations,
Box 7827, SE-103 97 Stockholm, Sweden Telephone
+46 8 7885100, Telefax +46 8 6788130 Publisher
Bodil Eriksson Editor-in-chief Anna Selberg
Editorial management Anna Selberg, SCA and
Göran Lind, Appelberg Design Tone Knibestöl,
Appelberg Print Sörmlands Grafiska Quebecor AB,
Katrineholm Cover Frans Hällqvist
SCA Shape is published in Swedish and English. The contents
are printed on GraphoCote 80 g from SCA Forest
Products. Reproduction only by permission of SCA
Corporate Communications. The opinions expressed in
this publication are those of the authors or persons interviewed
and do not necessarily reflect the views of the
editors or SCA. You can subscribe to SCA Shape or read
it at www.sca.com.
[1*2007] SHAPE SCA*3
RECORD NUMBER OF PATENT APPLICATIONS
■ The number of patent applications
in the world increased 6.4
percent in 2006 to 145,300, the
most ever, according to statistics
from the World Intellectual
Property Organization. The US
still dominates, with almost
50,000 applications, a rise of
roughly 6 percent over 2005.
Rapid growth in research and
innovation in East Asia led to a
sharp increase there. Patent
applications in South Korea rose
4*SCA SHAPE [1*2007]
27 percent, propelling that
country past Britain and France to
fourth place in the world. China
had the fastest growth by far, at
57 percent, and has nearly quadrupled
its number of patent
applications since 2002.
In terms of industries, telecommunications
had the largest share
of applications (10.5 percent),
followed closely by pharmaceuticals
and information technology
(10.4 percent each).
Number of patent
applications in 2006 Change over 2005
USA 49,555 6.1%
Japan 26,906 8.3%
Germany 16,929 5.8%
South Korea 5,935 26.6%
France 5,902 2.8%
Britain 5,045 -0.8%
The Netherlands 4,393 -2.7%
China 3,910 56.8%
Switzerland 3,403 3.8%
Sweden 3,123 8.7%
Shopping is fun in Asia and the local retailers
have high expectations for the future.
Boom in Asian
■ The future of retail trade in Asia
looks highly promising. Three out of
four companies expect higher sales in
the next 12 months. A similar number
say they plan to expand or build new
stores on other sites or in other
cities, according to the real estate
services company Jones Lang
LaSalle, which interviewed retailers
in China, Singapore, Thailand,
Malaysia, Indonesia and India.
Buyers in the home furnishings and
decorating industry are among those
with the highest expectations for the
future, followed by sports stores,
department stores, jewelry stores
and grocery stores. The most optimistic
buyers are those in India, as a
result of strong economic growth,
greater purchasing power and
The world wants more
DESPITE THE THREAT to the climate
and the ongoing debate over how we
should reduce energy consumption,
world demand for energy continues to
rise, according to a report from McKinsey
Global Institute. The report predicts
average growth of 2.2 percent over the
next 15 years, higher than during the
last 15 years. Demand is increasing even
though energy use is becoming ever
more effi cient. Effi ciency is rising by
1 percent a year on average.
Largely pushing the demand is
growth in developing countries and
rising private consumption there.
McKinsey believes the higher demand
can be met with more effi cient energy
use. Today there are major shortcomings
in areas such as information in the
consumer chain and price structure,
resulting in ineffi cient energy consumption.
McKinsey thinks the potential for
further effi ciencies is as great as 15 to
25 percent through to 2020.
PHOTO: GETTY IMAGES ILLUSTRATION: GETTY IMAGES
IN THE US
■ The market for urology and incontinence
devices in North America will grow by nearly 50
percent over the next fi ve years, according to a
report from the Millennium Research Group,
which conducts market analysis in the healthcare
and pharmaceutical sector.
Today the market is worth USD 1.8 billion, and
by 2011 it will increase to USD 2.6 billion,
equivalent to annual growth of 7.6 percent. One
factor behind this growth is the rapid development
of new products, according to Millennium.
BETTER TO SHOP OFTEN
THAN FOR A LOT
People who shop weekly pay several hundred
euros more annually on food than people who
shop a little every day, Swedish research shows.
The reason for this is that people buy too many
perishable goods, like fruits and vegetables,
when they buy on a large scale, according to a
survey from Umeå University.
■ In May, SCA will launch a limited
edition in the Nordic countries of
its fi rst designer diaper under the
name Spring Collection – a trendy
line of diapers with cute, hip design
patterns with glamour and a retro
feel that make the diaper more of a
“Children’s clothes are one of the
most enjoyable things for many
parents,” says Fredrik Krook, cat-
IS TOPS AMONG
BIG EU COUNTRIES
■ Spain had the fastest economic growth among the big
EU countries in 2006, with a GNP that rose 3.8 percent.
A strong construction market, immigration from South
America and Eastern Europe, rising tourism and more
winter residents from northern Europe are among the
reasons for the strong Spanish growth.
France had the weakest growth in the EU, with 2
percent. Topping the list among the small EU countries
were Slovakia with 7.5 percent and the Czech Republic
with 6.2 percent.
of trendy diapers
egory marketing manager at SCA
Personal Care. “We give parents
with young children a chance to
express their interest in fashion and
design in their choice of diapers.
Our Spring Collection is a unique
edition with fun new prints on
something as everyday as diapers.”
Many people enjoy fashion, design
and glamour, and they still have
this interest when they become
parents, as refl ected in the large
range of accessories and clothes for
children available today. Parents
of small children change more
than 2,000 diapers in a single year.
Libero Up&Go wants to make this
everyday activity into something
fun. Spring Collection is sold at the
same price as regular Up&Go diapers,
and the edition is available for
a limited time of up to eight weeks.
[1*2007] SHAPE SCA*5
PHOTO: GETTY IMAGES
CHINA GOES FOR THE
GOLD IN HYGIENE
Public health and hygiene campaigns are playing a central role in the
run-up to the 2008 Beijing Olympic Games.
BY JAN HÖKERBERG
6*SCA SHAPE [1*2007]
EIGHT IS A LUCKY NUMBER in China, symbolizing prosperity
and development. So at the eighth evening hour of the
eighth day of the eighth month of the year 2008, the opening
ceremony for the Beijing Olympic Games will begin, spreading
the motto “One World, One Dream” to the world. It will be
only the third time the Olympic Summer Games have been
held outside the western hemisphere, after Tokyo in 1964 and
Seoul in 1988.
Time will tell how lucky China has been to host such a huge
event. Some USD40 billion will be spent on these 29th Summer
Olympics. Will it bring more wealth to the world’s most populous
nation? Will it improve living conditions for Beijing residents?
Will it lead to fewer traffi c jams and better air quality?
There are numerous projects that the local organizing
committee has initiated in its preparations for the games: in-
frastructure projects such as subway-line extensions and new
highways; construction and renovation of 37 venues in and
outside Beijing; refurbishing tens of thousands of buildings;
clearing slums; creating parks; organizing essential security
issues, and so on.
So far, the organizers seem to have done a great job, at least
according to Jacques Rogge, president of the International
Olympic Committee. At an inspection tour in October 2006,
he noted that the venues for the 2008 Beijing Olympic Games
were “the best I have ever seen.”
Rogge visited the National Stadium, a new modernist venue
woven in concrete and steel to resemble a bird’s nest, and
the National Aquatics Center, a giant “water cube” of blue
bubbles. He said the venues are beautiful and he was deeply
He is also known to be very happy with the progress of
the work on the venues, since Beijing has been way ahead of
schedule with its preparations, in sharp contrast to the 2004
Athens Games and other recent Olympics.
Construction of venues has been moving at such a rapid
pace that in 2005 the International Olympic Committee even
ordered Beijing to slow down to avoid high maintenance costs.
THE OLYMPIC GAMES ARE of enormous political importance
to China. Experts have been calling it China’s “comingout
party.” The games are designed to show off the country’s
economic achievements and demonstrate its growing pride
and confi dence. China sees the Olympics as an opportunity to
strengthen its ties with the West, and to show the international
community that the country has the ability to hold such events.
“It is a huge challenge for Beijing. Big improvements have to
be made at the airport and with the city traffi c. However, when
China decides to do something they normally make it happen,”
says HungChee Loh, president of SCA Packaging Asia. Loh,
who is Singaporean, should know since he has lived and worked
in China for the last 15 years.
Beijing has labeled the 2008 Games the “Green Olympics.”
To live up to that slogan, authorities have spent much time and
money to plan for cleaner air, to maintain good hygiene to prevent
epidemic outbreaks and change the way people behave in public.
Beijing’s well-known problems with air pollution could
be an embarrassment for the hosts, and could also affect the
results of the athletes. It is therefore the ambition to bring
Beijing’s air pollution into line with global standards.
The city has relocated, or plans to relocate, more than 100 chemical,
steel and pharmaceutical factories outside the city and will
replace 300,000 taxis and buses with less-polluting vehicles. It is
also trying to replace coal furnaces with natural-gas ones.
Part of the ambition to fi nish all construction well before
the Olympics is not only to show the world that China can keep
deadlines, but also to ensure a healthy environment for the
games, giving dust from the building projects a chance to settle.
[2*2006] [1*2007] SHAPE SCA*7
PHOTO: GETTY IMAGES
37 new venues are built in Beijing before the Olympics 2008. Above,
the National Stadium resembling a bird’s nest, and the National
Aquatics Center, called a “water cube.”
Beijing is also making preparations to tackle possible public
health incidents during the games, particularly in regard to epidemic
“Public health safety is a crucial precondition and guar antee
of a successful international sports event such as the Olympics,”
says Wang Yu, director of the Chinese Center for Disease Control
and Prevention (CDC), recently told Xinhua news agency.
China has established a nationwide electronic network for
reporting epidemics, operated by more than 200,000 staff
from the CDC.
The organizing committee of the games has already selected
the farms that will provide food for athletes, offi cials and
visitors. Strict tests will be carried out to ensure the highestquality
Public health and hygiene campaigns are also being introduced
in the run-up to the Olympics. In 2006, Chinese authorities
launched a campaign to change the way people behave,
introducing an informal code of conduct for citizens.
Every visitor to the Middle Kingdom knows that public
spitting is a serious problem, together with a patent disregard
for the etiquette of waiting in line.
Articles with punchy headlines such as “China’s spitting
8*SCA SHAPE [1*2007]
The Olympic Games are
of enormous political importance
to China. Experts
have been calling it China’s
image” and “Spit happens” have already been published in
Western media. Chinese authorities defi nitely do not want
this type of information about the country to be spread during
Millions of brochures have been sent out to persuade the Beijing
citizenry that spitting is unhygienic. Paper sanitary bags
are being distributed on trains and buses for people to spit into,
and anyone found spitting on the sidewalk will have to either
clean up the mess or pay a fi ne of 50 yuan (USD6.50).
When the games end on August 24, 2008, we will know how
lucky China has been. The world will be watching closely – not
only admiring all the expected medalists from China, along
with the spectacular ceremonies and venues, but also whether
China has managed to live up to its “green” intentions.
Meanwhile, welcome to the party! ▲
China’s economy grew by 10.7 percent in 2006, its fastest
growth rate since 1995. China is moving closer to overtaking
Germany as the world’s third-largest economy.
SOURCE: NATIONAL BUREAU OF STATISTICS
ELEVEN NEW VENUES
Eleven completely new venues will
be built for the Olympic Games.
After the games, some of them will
be used as facilities for future s
ports events, while others will be
sold to investors.
★ Beijing National Stadium
★ Beijing National Aquatics Center
(swimming, diving, water polo)
★ National Indoor Stadium
★ Beijing Shooting Range Hall
★ Wukesong Indoor Stadium
★ Laoshan Velodrome (cycling)
★ Shunyi Olympic Rowing-Canoeing
Park (rowing, canoe/kayak)
★ China Agricultural University
★ Peking University Gymnasium
★ Beijing Science and Technology
University Gymnasium (judo,
★ Beijing University of Technology
Gymnasium (badminton and
SEVEN OLYMPIC CITIES
Most of the events during the
Olympic Games will take place in
Beijing. Six other cities will also be
hosts during the games: Hong Kong
(equestrian), Qingdao (sailing),
Shanghai, Shen yang, Tianjin and
Qinhuangdao (all football).
CHINESE EAT OUT
Better standards of living have boosted the numbers
of people who dine out regularly, gradually making
this activity a trendy habit in China’s big cities.
WHEN A NETIZEN recently posted a
message on his residential quarter’s BBS
(Bulletin Board System) asking for a discount
card from a certain restaurant in
Shanghai, he soon received several replies.
“Almost all the replies said that the
restaurant does not issue discount
cards because it never worries about
business,” said Eric Xiao, a 33-year-old
clerk. “I often log on to the BBS to take
a look at the diverse information there,”
Eric says. “The restaurant mentioned is
near my current home and is so hot that
there are frequently no seats available at
dinner time. That’s really crazy.”
Yet such a phenomenon is not rare. It
is not uncommon to see diners queuing at
the doors of a restaurant for a free table.
With improvements in people’s living
standards, local residents are spending
more on dining, and the catering industry
is becoming an important engine of
total consumption growth, which has
been recording annual double-digit
growth rates for several years.
Food consumption in restaurants and
[1*2007] SHAPE SCA*9
eateries in Shanghai is reportedly three
times that of anywhere else in the country.
In November 2006, the turnover
of the city’s catering industry reached
RMB408 million (USD52 million), a
rise of 28 percent compared with the
same period the previous year.
Nowadays, many people, especially
the young, are logging onto www.dianping.com,
a platform where gourmands
can exchange dining experiences. The
Web site also collects information about
the hottest restaurants in town.
“The Web site is really convenient. I
log on every day and update my page,”
says Lin Yuanyuan, a 26-year-old woman
who eats out more than three times
“Every day, I stay on the site for one
or two hours looking at other people’s
recommendations or criticisms of res-
PHOTO: GAO ERQIANG
10*SCA SHAPE [1*2007]
Tibor Kovacs, SCA Hygiene Asia in
taurants. Of course, I also write down
my own dining experiences, something
that has become a hobby.”
LIN RECALLS THAT her dining-out
habit started in 2005 when she met her
boyfriend. “Now we eat out almost every
Friday and Saturday, and I also collect
information about different restaurants
from magazines and TV,” she says.
When the catering industry sees swift
development, diners also have the oppor
tunity to try different styles of food.
Lin is fond of Japanese and Cantonese
food, and she also favors spicy regional
cuisines such as Sichuan and Hunan, as
well as the local Shanghai food.
According to Lin, her monthly expenditure
on dining with her friends is about
RMB1,500 (USD193), which is about
one-third of her income. RITA YAO
China’s tissue market is the second biggest in the world,
and the growth rates are astonishing compared to
Western markets, around 10 percent.
CA’s successful Away-From-
Home (AFH) tissue brand,
Tork, is now being launched
in China. “Tork is a global
brand and is strong on all continents
except for Asia,” says Tibor Kovacs,
sales and marketing director AFH at
SCA Hygiene Asia in Shanghai. “A broad
global leading position for Tork cannot
be achieved if China is missing.”
With the rapid development of China’s
economy, people have got more disposable
income and travel much more.
This creates a vast demand for hygienic
solutions in, for example, restaurants
“So far, there are no other interna-
People in Shanghai love to eat out.
competitors here with a signifi cant
market share. We compete with local
companies and they use different dispensing
systems, paper qualities, sizes and
ways of folding, and so on,” Kovacs says.
A BIG CHALLENGE IS also to change
people’s hygienic habits, to make them
understand that hand hygiene is more
important than they think.
“With a small investment in a quality
hand-hygiene system, employers can
prevent diseases from spreading among
the staff and guests. This awareness is
lower in China than, for example, in Europe.
We see ourselves as the guardians
of hygiene,” Kovacs says.
PHOTO: GETTY IMAGES
SCA Hygiene Asia is in the process of
identifying which distributors to work
with, which is a key success factor, according
to Kovacs: “We have a good understanding
of the market, but it is our
partners who know the local culture
As a start, SCA is establishing inven-
tory and distribution facilities for sales
in the Chinese market, commencing
with the expansive Shanghai region.
THE PRODUCT RANGE includes toilet
tissue, hand-wipe products, tissue
napkins, wipers for cleaning in offi ces
and industrial premises, and liquid so-
Among the fi ve Olympic symbols are the four most popular animals in China: the fi sh, the panda,
the antelope and the swallow. The fi fth symbol is the Olympic fi re.
CHINA GOES GLOBAL
In 2020, 50 of the world’s 500 largest companies
will be Chinese, if the government gets what it wants
– and it normally does.
ONLY SOME 25 YEARS AGO, 11 local
computer scientists in Beijing had a vision
of bringing technology to the masses.
They founded a computing company
called Legend and started out working
from a one-story bungalow in the capital.
Today, their dream has come true,
probably to a greater extent than they
When the company, now known as
Lenovo, acquired IBM’s struggling personal
computer division in 2005, a business
that was three times Lenovo’s size, it sud-
denly became the world’s third-largest PC
man ufacturer, after Dell and Hewlett-
Packard, and a true global brand. Lenovo’s
brand will further strengthen during the
2008 Beijing Olympic Games, where Lenovo
is an offi cial top sponsor.
In 2004, TCL Corporation, a Chinese
manufacturer of television sets,
mobile phones and other electronic
products, acquired the TV business
of France’s Thomson, which included
the RCA brand name. The deal turned
TCL overnight into the world’s largest
aps – all integrated into Tork’s hygienic
SCA is getting off to a fl ying start as a
result of China’s focus on improved hygiene
as part of preparations in the service
sector ahead of the 2008 Summer
Olympics in Beijing and the 2010 World
Expo in Shanghai. ▲
TV manufacturer by volume. This was
followed by TCL’s acquisition of the
mobile phone business of Alcatel, also a
Both Lenovo and TCL were domestic
market leaders when they made their
international acquisitions. Home appliance
manufacturer Haier, on the other
hand, also a market leader in China, has
made its global journey so far mainly
through organic growth.
In 1984, the Haier Group arose from
the ruins of a run-down state-owned
factory in Qingdao on China’s east
coast. At that time, it produced just one
model of refrigerator. Today, Haier is
produc ing 96 different model categories
that are sold in more than 100 countries
around the world.
The company has 50,000 employees
worldwide and a global turnover of more
[1*2007] SHAPE SCA*11
than USD13 billion. Haier is also an offi
cial sponsor of the Olympics in Beijing.
Telecommunications giant Huawei
has also expanded abroad through organic
growth, having won strategically
important contracts from established
operators such as Vodafone and BT.
MEANWHILE, CHINA’S automotive
industry is on its way to conquering the
world. Shanghai Automotive Industry
Corporation (SAIC), which has joint
ventures with Volkswagen and General
Motors, has set a goal to be among the
six largest automakers in 2020. SAIC
recently launched its fi rst car brand,
called the Roewe 750, built on a design
it bought from Rover when the Britishbased
manufacturer went bankrupt
There are similarities between China
today and the Japan of the 1970s and
The Chinese Roewe
will conquer the
world with a Rovers
12*SCA SHAPE [1*2007]
South Korea of the late 1980s. But
while it took Japan’s and South Korea’s
exporting companies 15 to 30 years
to become established players on the
world market, the pace of globalization
is allowing China to expand beyond its
borders at a historically unprecedented
rate. This is also why many Chinese
companies see the acquisition of foreign
“slumbering” brands as their primary
means to grow internationally.
CHINESE COMPANIES have the full
support of the government in this strategy
to conquer the world with their
own brands. According to government
plans, 10 percent of the companies on
the Fortune Global 500 list will be
Chinese by 2020. In order to achieve
that goal, the government has developed
a “go global” initiative, setting aside
USD15 billion for the acquisition of
leading companies and brands overseas.
This ambition has been wel comed
by local business leaders, who fear that
relying solely on the dominance of the
domestic market may prove too fragile a
base for their companies’ futures.
Even if Chinese companies work
fast and are goal-oriented and eager
to learn, there could be many obstacles
on the road to becoming global
brands. For example, they lack experience
when it comes to thinking in
terms of strategy, branding and marketing.
Still, China’s global “wannabes” are
in a better position than Japan’s and
South Korea’s companies were when
they entered the export markets, mostly
because these countries had not opened
up and welcomed foreign investments
in their own countries on the scale that
China has done. ▲
PHOTO: GAO ERQIANG
We want to be
regarded as a
cus tomers can
get any type of
The president of
SCA Pack aging Asia Hung-
Chee Loh predicts fast
growth in 2007.
HUGE CHALLENGE FOR SCA PACKAGING
■ With 14 factories in China and
6 in Southeast Asia, SCA Packaging
Asia is one of the most fastest-growing
units in the whole SCA Group.
It employs some 4,800 people, and
last year’s turnover was close to
“This year we have set a target of
growing at least 30 percent,” says
HungChee Loh, president of SCA
Loh has a huge challenge ahead
of him: “The company’s objective is
to multiply the turnover in 2010. We
will aim to grow both organically and
SCA’s packaging business in Asia
started in 1999 when SCA bought
a minority of the shares of Central
Package Group. SCA has gradually increased
its ownership, and since 2006
it owns 100 percent of the company.
The growth of SCA Packaging Asia’s
business has been built on this base.
For example, SCA has built a completely
new factory in Suzhou, where fi ve
former entities have been brought
together onto one site. SCA is also expanding
its current factory in Nanjing.
An Asia design center is also in the
process of being set up in Shanghai,
next to the headquarters in Minhang.
The center will be used to support
internal and external customers, with
the aim of creating innovative designs
“We want to be regarded as a onestop
shop where our customers can
get any type of packaging they want,
corrugated, protective or other types,”
Loh says. “None of our competitors can
offer all that under one roof now.”
[1*2007] SHAPE SCA*13
...and live longer
Seafood consumption is on the rise worldwide following
new trends in healthy eating. As supplies grow
scarce in the Mediterranean, lobster shipments from
Scandinavia to southern Europe reach new heights.
HAVSKRÄFTA, jomfruhummer, Dublin
Bay prawn, Kaiserhummer, scampi,
Nephrops norvegicus – the Norway lobster
is known by many names and enjoyed
by fans of gourmet cooking
around the world.
Each year, Læsø Fiskeindustri on the
island of Læsø between Denmark and
Sweden ships 1,500 metric tons of Norway
lobster to Italy from Denmark, and
an additional 1,000 metric tons from its
Peterhead unit in northeastern Scotland.
The Italians have a long tradition
of eating the tail of Norway lobster,
called scampi, which is caught locally
along the coast of Italy. The local supply,
however, is far from suffi cient to
meet demand, which is good news to
the fi shing industries around Kattegat
between Denmark and Sweden. The
Norway lobster thrives in the waters
around Læsø, characterized by a great
variation of ocean depths and geological
structures with stone reefs, chalk
pillars and coral reefs.
Managing Director Søren Larsen at
Læsø Fiskeindustri says there are other
reasons why Italy is such a big market
for a type of food that is seen as a luxury
14*SCA SHAPE [1*2007]
item in more northern latitudes.
“Their meals usually consist of up to
fi ve different dishes. After having consumed
antipasti, salad and pasta, Italians
don’t require very big portions of
the main course of fi sh or meat, which
makes a serving of two or three grilled
scampi quite suffi cient.”
COMPETITION FROM low-cost countries
in Asia and Latin America is increasing,
but Larsen says the Norway
lobster caught in Scandinavian waters is
generally perceived as superior in taste,
since it matures more slowly in the cold
waters of the North Atlantic.
Another threat to the Scandinavian
industry, Larsen says, comes from
tightened EU regulations aimed at protecting
local cod populations, which
have an adverse effect on Norway lobster
fi shing since they only allow vessels
to work for limited periods of time
in certain sections of the Atlantic. But
the future still looks bright for the local
fi shing industry.
“We can certainly sell everything we
catch,” Larsen says.
■ A recent study from Gothenburg
University in Sweden predicts
that demand for seafood will
grow substantially over the next
decades, and the International
Food Policy Research Institute
(IFPRI) estimated in 2003 that
the global appetite for fi sh had
more than doubled in 30 years.
“This enormous growth signals
changes in who is consuming fi sh
and where,” the IFPRI said. “Rapid
population growth in the developing
world, along with increases
in the average amount of fi sh
consumed per person in those
countries, led to soaring increases
in global fi sh consumption.”
In the developed countries,
demand for fi sh is growing for a
variety of reasons, such as the
popularity of Thai and other exotic
cuisines and the fact that it is perceived
as part of a healthy lifestyle.
Seafood contains fatty acids like
omega-3, which have a positive effect
on the level of so-called good
cholesterol. The US Food and Drug
Administration has said consumption
of omega-3 reduces the risk
of coronary heart disease, while
the American Heart Association
recommends that “healthy people
should eat omega-3 fatty acids
from fi sh to protect their hearts.”
In the end, most people probably
like seafood simply because
it tastes good and adds class to
any meal.The Swedish Fish Wholesalers’
Association confi rms that
consumer demand for fi lleted
fi sh and shellfi sh is rising faster
than for seafood in general.
■ Temperature-controlled goods
like fresh and frozen food place
tough requirements on the kind of
packaging used. It has to be waterproof
and able to maintain the right
temperature. SCA Packaging produces
packaging that is tailor-made
for the transportation and preservation
of perishable goods. Solid
board and polyethylene are ideal
materials for wet and cold environments
and are well suited for containing
greasy products. The boxes
are made from three to fi ve layers
of different kinds of paper, fi tted
together with water-resistant glue.
In the special packaging solution
developed by SCA Packing
for Læsø Fiskeindustri, the freshly
caught lobster is submerged in a
box that is half fi lled with water
before being frozen. This technique
creates a glazing that protects the
product from being dehydrated
and preserves the quality better
than alternative solutions.
The lobsters are then shipped
via truck to Italy and other markets,
where they are sold to
restaurants and wholesalers.
The North Atlantic shrimp
industry is another big outlet
for SCA Packaging. A single
vessel may use up to 800,000
units of packaging every year.
AN INSIDER’S GUIDE
TO NORWAY LOBSTER
Søren Larsen, managing director of
Læsø Fiskeindustri in Denmark, enjoys
his Norway lobster in one of the following
★ Cut a ridge along the back, add garlic
butter and bake it in the oven.
★ Boil it.
★ Don’t boil it but eat it fresh,
with salt, pepper and a bit of
lemon juice and olive oil.
[1*2007] SHAPE SCA*15
PHOTO: GETTY IMAGES
IN 2006, WIND POWER capacity in
the EU increased by 7,588 megawatts,
worth around EUR 9 billion, according
to the European Wind Energy Authority,
or EWEA. This was 23 percent more
than was added in 2005, and cumulative
capacity increased by 19 percent.
European wind energy is now experiencing
a “second wave,” according to
EWEA CEO Christian Kjaer. Wind energy
in the EU has increased sixfold in
just four years.
“The importance given to climate issues,
the lack of power production and
the role played by the EU are some of the
reasons for the greatly increased interest
in wind power in Europe,” says Matthias
Rapp, head of the Swedish wind
power association VIP.
Scientifi c developments are also important.
Technology is continually
improving, making wind power more
effi cient. Wind now produces 10 times
more power than a decade ago.
16*SCA SHAPE [1*2007]
Climate issues, the lack of power
production and the role played by the EU
are some of the reasons for increased
interest in wind power in Europe.
In 2006, the EU’s wind power capacity rose
by 19 percent. Still, wind accounts for just over
3 percent of total power output.
However, fossil fuels – oil, natural gas
and coal – still account for 80 percent of
the EU’s power consumption. Although
wind power is responsible for most of the
renewable energy currently produced in
the EU, it represents just over 3 percent of
total power production. The goal of the EU
Commission is for wind power to produce
20 percent of the EU’s energy by 2020.
EU countries differ greatly in their use
of wind power. Leading the fi eld, Denmark
has the largest output of wind power
per capita in the world. About one-fi fth
of its electricity comes from wind.
Germany has also made great progress.
Last year it installed a total of 2,233
megawatts of wind power, 23 percent
more than was added in 2005. Germany
now accounts for more than 20,000
megawatts of the EU’s total capacity of
48,000 megawatts. Common to both
Denmark and Germany are their excellent
fi nancial support systems, which in
Germany guarantee wind power owners
a fi xed price for electricity produced during
the fi rst 15 years. But there have been
other strong reasons to introduce renewable
energy sources in these countries.
Coal-based power stations are the alternative,
and the price of electricity is high.
In Spain, the next largest market in
the EU, 1,587 megawatts were installed
last year. Major increases in wind power
have also been seen in France and Portugal
in recent years.
In a country like Sweden, often well
advanced when it comes to using new
technologies, wind power is still a marginal
source. Total capacity at the end
of 2006 was 572 megawatts, a quarter
of the capacity installed in Germany
during 2006 alone. Wind power provides
just 0.7 percent of the total power
consumed in Sweden.
“In Sweden, wind power is still at an
embryonic stage compared with other
countries in Europe,” Rapp says.
SCA INVESTS IN WIND POWER
■ Over the next fi ve years, VindIn
AB, a subsidiary to BasEl that was
formed by several high-volume
users in Sweden, will expand its
wind power output by 1 terawatt
hour, equivalent to Sweden’s
current wind power production.
By investing in several different
projects, the owners of
the companies that make up
BasEl and address the interests
of these companies, want
to increase the availability of
WE NEED A MORE finely tuned approach
to build up our knowledge about
consumers – in short, more quality and
less quantity, says Lena Danielsson,
man aging director at the Swedish offi
ce of the international market research
“Today, qualitative research is the
only way to really understand consumers,”
New research methods that have
gained ground in recent years include
such things as home visits and accompanied
shopping, or actually being with
the customer while purchases are made.
One obvious advantage of these ethnographic
methods is that they reveal
unconscious habits that are not otherwise
discernible, such as when studying
In recent years, modern technology
has opened up a host of new avenues. The
Internet has made it possible to organize
online focus groups. This means you
can reach people spread over large geo-
electrical power in Sweden. This
will create a better balance between
supply and demand, and
thereby reduce power costs.
“Considering that the owners
themselves use 32 terawatt
hours per year, 1 terawatt hour
is not very much, but it is still
a valuable contribution,” says
Björn Lyngfelt, communication
manager at SCA Forest Products.
“This is an opportunity for us to
do more than just talk politics.”
Households everywhere are breaking new ground.
New technologies, changes in gender patterns, other
social changes — these are issues creating new
challenges for marketers and product developers.
How are they going to understand today’s consumer?
graphical areas to discuss topics among
themselves, similar to a chat line.
“But they won’t replace traditional
focus groups, as they won’t give you indepth
information,” Danielsson says.
Online focus groups are already on
their way out, she says, and are being
replaced by blog-like forums where consumers
can take part in discussions on
“Here you can actually dialog with
the customers, and this is very important,”
Another method, now available
thanks to easily accessible technology,
is to give customers digital movie cameras
and ask them to document their
daily lives and habits.
“It’s a valuable method because it
gives them an opportunity for refl ection
and afterthought,” Danielsson says.
These new methods have not been
developed just because it has been technically
possible. The most important underlying
factors have been changes in con-
At present, VindIn is investigating
about 10 different locations
for future wind turbine parks.
“We have received a very
positive response, and as this
is the fi rst initiative within the
BasEl venture to produce our own
power, it has made us feel like real
pioneers,” says Anders Lyberg,
managing director at VindIn.
VindIn, formed in 2006, is
owned by AGA, Boliden, SCA
and Stora Enso, among others.
sumer patterns, especially the increased
choice and availability of products.
“It’s more diffi cult to reach customers
today, not least because there are so
few product advantages to draw their
attention to,” Danielsson says. “Most
products on the market are very much
the same. Instead, it’s a question of differentiation
on an emotional level.”
■ SCA Tissue Europe has recently
adopted new research methods to
create a better understanding of
consumers. Web-based blog forums
(see article) focus on simple issues
such as: What are your views on toilet
paper? Any problems?
“We can carry out a very detailed
survey with say, over 200 participants,
for a fraction of the cost of a focus
group with only eight participants,”
says Lesley Cordial, brand development
director SCA Consumer Tissue
Europe. The Internet also offers the
possibility of anonymity, openness and
discretion, which makes it easier to
discuss delicate subjects.
However, the new approach that the
product developers have been most
pleased with recently has been the
ethnographic surveys of households.
“They have told us that no other
method has prompted so many new
product ideas,” says Wolfgang Lenzen,
marketing research manager, SCA
Consumer Tissue Europe.
A new ethnographic survey planned
for this year will focus on personal
hygiene. It will be carried out in three
or four countries, with around 20
participants from each.
[1*2007] SHAPE SCA*17
Our employees may take a
rather squarish view of life
Admittedly, we think a lot of boxing things. Since we
offer four different material types and competences
that cover the entire packaging process, there is
enough to think of.
Things must hang together all the way through the
supply chain, easy procurement, practicable use in production,
stacking capability and durability in logistics.
SCA PACKAGING DENMARK consists of 7 business areas with
20 units and 1,400 competent employees in Denmark. We are
a member of Svenska Cellulosa Aktiebolaget, which employs
With SCA Packaging you will get a partner for the
entire packaging process. We offer solutions within:
• Strength/logistics optimisation
• Knowledge of packaging systems
• Packaging optimisation
• Supply chain know-how
• Competent consultancy
50,000 people at more than 300 production units in Europe, Asia
and America. SCA’s mission is to provide essential products that
improve the quality of everyday life.
Read more at
More than a box ...
Cookson believes there
are basic trends that
apply across Europe.
FACE OF FOOD
European food retailers will put
bigger effort in building their own
brands. That’s according to
ANDREW COOKSON, director
of the consultancy company
Gira, a world leader in
examining market trends in
the food retail industry.
BY ANNA MCQUEEN PHOTO ALASTAIR MILLER
following trends around Europe makes
for a busy life, so there was no better
place for a rendezvous with Andrew
Cookson, director of the Genevabased
Gira consultancy, than in Paris
at the sumptuous Belle Époque restaurant
Le Train Bleu in the Gare de Lyon.
Gira has been examining market
trends in the food retail industry for
more than 35 years, and it was one of the fi rst European
companies to use modern market research
“We operate Europe-wide for all food and
worldwide for dairy, meat and fi sh, looking at
everything from sausages in Moscow to margarine
in Spain,” Cookson says.
[1*2007] SHAPE SCA*19
Cookson believes there are basic trends that
apply across Europe, despite the different cultures.
“People say that countries are so different
that it is impossible to generalize, but I think
that’s nonsense,” he says. “What’s more, people
say the very few products that are generalized
are McDonald’s, Mars Bars and instant
Nescafé, and other than that, everything’s different.
This may be so, but the basic trends are
still the same. Consumers everywhere in developed
countries – those who eat as much as they
want of whatever they want – are looking for
convenience and a clear offer. They don’t want
to waste time looking for, negotiating and buying
food that is boring and basic, and they want
all their food to be convenient.”
MANUFACTURERS LIKE Nestlé and Danone
are clearly moving toward increasing their
profi ts by expanding their markets and increasing
their market share, Cookson says. But one
of the biggest current shifts in the retail food
sector is with retailers themselves. “They increasingly
want to differentiate themselves
from their competitors by building brands with
their store name,” he explains.
In the US, store names already exist as clearly
defi ned brands, like Wal-Mart and Costco,
but in continental Europe, with a few exceptions,
this is not yet the case. “We are moving
into a period of creation and defi nition where
store names are beginning to mean something
to consumers,” Cookson says. “We are now
on the verge of retailers creating a real image
around their store brand’s name and logo, but
this hasn’t really happened so far other than in
the UK, Switzerland and Belgium. Retailers
have started demanding products from their
suppliers that strengthen the image they wish
“Over the next 10 to 20 years, retailers will
increasingly be looking for products that differentiate
them from the competition as well as
for basic products that consumers have to fi nd
in their stores at the highest quality for the best
price,” Cookson says. “It’s already been done
by Leclerc in France, Lidl and Aldi in Germa-
20*SCA SHAPE [1*2007]
“We are moving
period of creation
and defi -
We are now
on the verge
creating a real
to have enough money
left to buy telephones
and sneakers for their
kids, Cookson says.
ny and Tesco and M&S in the UK,” he adds.
Cookson believes this will have a big impact on
food suppliers and the whole question of how
food is put into the store. “Retailers now have
to have a story to tell, and it’s no longer just one
of price,” he says.
Retailers are also now exporting their
savoir-faire. The German hard discount model,
the French hypermarket model and the UK
added-value supermarket model are fi ghting
for space in countries where previously there
was no such model, such as central Europe,
the Far East and South America. “But because
of the saturation in their home markets and in
addition to geographical expansion, they are
also trying to better exploit their existing client
base by selling new products,” Cookson
says. For example, German hard discounters,
who traditionally stocked limited product
lines, are now selling fresh meat. “And our research
is showing that by 2015, 35 percent of
all fresh meat sold in Germany will be sold by
hard discounters,” he says.
But, Cookson says, eating habits in Europe
are undergoing signifi cant change because of
price. People are now more willing to knowingly
buy lower-quality products to have
enough money left over to pay for telephones
and sneakers for their kids. “We are heading toward
consuming lower-quality food with more
carbohydrates and sugars, and this is a factor
in the increasing levels of obesity we are seeing
today,” he says. “This is a fundamental society
REDUCING ECOLOGICAL COSTS and promoting
sustainability is also becoming a real issue
for retailers, who are increasingly obliged
to behave in an environmentally responsible
manner. “With such wide product ranges,
sustainability is tough to apply to a retailer,
but this is just the beginning,” Cookson says.
“We’re going to see increasing pressure on retailers
to change and this will put up the cost
of food, which will eventually be absorbed by
Cookson believes the key area to watch right
now is the development of biofuels and their
■ SCA is Europe’s biggest supplier of tissue
paper for household brands, with strong
positions in the largest European markets.
SCA invests more resources than ever on
product development that aims to
strengthen SCA’s own brands and improve
Within personal hygiene products the
retailers’ own brands represent a small
portion of the total sales. In many markets,
SCA increasingly complements its own
brands by manufacturing products for
The division of the European market
between producers’ brands and retailers’
own brands looks like this:
75% 85% 98%
FOTO: GETTY IMAGES
More products will
be sold under retailers’
own brands in
have to have
a story to tell,
and it’s no longer just
one of price.
[1*2007] SHAPE SCA*21
impact on the food industry. Tens of thousands
of people took to the streets of Mexico City in
January to protest the price of tortillas, which
has doubled in some parts of the country in the
past year. Many believe the price rise is due to the
increasing use of corn for biofuels production.
“LARGE QUANTITIES OF GRAINS and oilseeds
are now being burned rather than eaten,”
Cookson says. “This means not just fewer food
products all the way through to the meat and
dairy chains, but serious price increases for all
basic staple foods, which is seriously bad news
for poor people, Third World countries and even
European and US consumers. The consequences
could be earth-shattering. Biofuels production is
being driven by a race for subsidies and a need
for political correctness, and nobody is looking
at the effects it will have on the food chain. This
is happening right now, and nobody knows what
the impact will be.” ▲
22*SCA SHAPE [1*2007]
NAME: Andrew Cookson
LIVES: Just outside Paris with his
wife and two children.
CAREER: “I’ve lived in France for
30 years now. I did a language
degree at Oxford and then spent a
year abroad in Eastern Europe. I did
my articles and worked as a
chartered accountant for a year
before I went to the INSEAD
business school near Paris. I
subsequently held various fi nancial
jobs before I started working with
Gira in 1990.”
HOW HE DEFINES HIMSELF AS
A CONSUMER: “The advantage
of being a Brit living abroad for
so long is that you have no real
culinary traditions of your own, so
you can judge everyone’s eating
habits objectively, however strange
they may appear at fi rst sight.”
★ Consumers want food to be
★ Retailers want their logo on
products to strengthen their
★ Fresh meat is moving in at hard
★ Consumer choices are tending
toward lower-quality food, while
sustainability is increasingly
important for retailers.
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The Xpressnap napkin dispensing system not only looks good in any casual dining environment, it also
substantially reduces napkin consumption. How? It dispenses one napkin at a time. So now patrons take one
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Napkins I Towels I Dispensers I Soap I Specialty Wipers I Bath & Facial Tissue
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24*SCA SHAPE [1*2007]
gets to the root
The most brilliant solutions are often the simplest.
Like using copper paint to direct roots and get
forests to grow faster and straighter.
TEXT GÖRAN LIND ILLUSTRATION LEIF ÅBJÖRNSSON
rees need a well-developed
root system in order to grow
fast and straight. Deformed
root systems are a problem
that affects forest owners the world over.
One reason over the last few decades has
been root circling in forest plants that are
grown in pots.
“When the roots reach the sides of a
smooth pot, they bend and follow along
the side of the pot, then start to circle and
intertwine. This produces unstable trees
with poorly developed roots that cannot
absorb nutrients as effi ciently as trees
with a well-developed root system can,”
says Leif Gulin, a biologist at SCAs plant
producer NorrPlant. With nurseries in
Bogrundet and Wifstamon outside
Sundsvall, Sweden, NorrPlant is the largest
supplier of forest plants in Europe.
Poor root systems result in forests
with lower quality, which means signifi -
cant economic consequences for forest
“We’ve been working on this problem
for a long time and have developed pots
with root-training ridges and air slits that
guide the roots in the right direction,”
Gulin says. “In the early 1990s we took
the fi nal step toward producing plants
with as good a root system as trees grown
from seed in trays. That’s when we began
to look at a method using copper paint
that was described by Canadian researchers
as early as the 1970s.”
THE METHOD INVOLVES coating
the inside of pots with a paint containing
copper, in amounts that are carefully adjusted
for the plant that is to be grown.
“Copper is poisonous in concentrations
that are too high and stops root
growth at the edge of the pots,” Gulin
says. “Copper prevents the outermost
cells from dividing and this keeps the
root from growing.” He adds that the
same thing can be seen on copper roofs,
where no vegetation grows.
When the seedling is planted out in its
prepared site in the forest, the concentration
of copper is reduced at the root
end and the root begins to grow in the
forestland. As a result, the tree gets a
well-formed, symmetrical root system.
“We see some improvement in
growth,” Gulin says. “The quality also
improves because the trees grow straighter,
but mainly trees become more
Spruce is the dominant species. Last
year, it accounted for more than half of
all plants from NorrPlant. Pine accounted
for 37 percent and contorta pine 8 percent.
So far, NorrPlant has produced
more than 300 million plants with copper-painted
pots. Starting this year, no
plant trays are being sold with unpainted
pots. The concept has also been sold to
Södra, a cooperative of private forest
own ers in southern Sweden.
The plant trays are recyclable and are
used for many years. After planting they
are returned to NorrPlant, cleaned of
dirt and paint and then repainted. The
amount of copper that seeps into the
ground as a result of planting is very limited,
considerably less than the natural
content in the ground. ▲
26*SCA SHAPE [1*2007]
Kat Sakura (right)
Hyfl ux Dragonfl y
(middle) and Purina
Beggin Strip (left).
NEW DEVELOPMENTS IN TORK ONLINE
NOVEMBER SAW the launch of
Tork Online 2.0. This is the fi rst step
in a series of releases that will make
the Tork Online web site more
accessible and attractive no matter
whether the customer is new or well
acquainted with SCA and Tork.
The updated version of Tork
Online includes a section called Experience
Tork and describes three
of the keywords the Tork brand
represents – hygiene, absorbency
and softness. The section will be
expanded with more areas in the
next release. Another new development
is the My Product List section,
which gives customers and distributors
the chance to create their own
product list and download related
product information including pictures
and CAD fi les (3-D drawings
“The fact that our online project is
right for our customers is confi rmed
every month by our statistics for
visitors,” says Ulrica Westheim, head
of new media at SCA Tissue Europe.
“Since it started two years ago, the
number of hits has increased more
than 500 percent.”
Release 2.1 will appear in 2007,
and expectations are already high.
The main target group for Tork
Online is distributors who need
clear production information
quickly and want to learn about
■ SCA Packaging Asia won three awards at Singapore
Packaging Star Awards 2006. The winning
products were Kit-Kat Sakura and Purina Beggin
Strip in the Sales and Product Display categories. The
third award came for the Hyfl ux Dragonfl y three-inone
protective packaging solution in the Transport
and Protection product category.
“Winning these awards clearly differentiates SCA
Packaging as a strong player and leading packaging
solutions provider throughout Asia, helping to boost
customers’ confi dence in our product design
capabilities, and in turn our ability to deliver innovative,
high-quality packaging solutions,” says
HungChee Loh, president of SCA Packaging Asia.
The Kit-Kat Sakura also won a prize at the Asia Star
Awards 2006, out of more than 100 competing
entries submitted from 14 countries throughout Asia.
The Asia Star Awards are organized annually by the
Asian Packaging Federation. The Singapore Packaging
Star Awards event has been hosted by the
Packaging Council of Singapore since 1998.
new products. There are 25
versions of Tork Online in 22 countries,
all built on the same platform.
Tork is SCA’s brand in AFH (Away
From Home) products and is found
in Europe, North America and Asia.
Eco-friendly transportation with CTI
SCA IS CUTTING costs
and looking after the
environment by increasing
the number of trucks
equipped with CTI
technology in its forests.
The decision was made
following a successful
test project, for which the
Swedish Road Administration
has now given
approval and provided in-
structions. CTI stands for
“central tire infl ation” and
involves the adjustment
of air pressure in tires. It
makes the weight of the
vehicle spread evenly and
allows vehicles to carry
heavier loads than normally
permitted on certain
roads and during critical
periods, such as when the
ground is thawing or when
TORK WINS THE WEMBLEY
■ SCA’s strong environmental policies clinched the deal
with Britain’s new Wembley Stadium. The stadium’s
2,618 restrooms, estimated to number more than in any
other building in the world, will all feature Tork products.
“SCA had the products we wanted, but key to our
decision was how the company’s environmental responsibility
is refl ected in its policies,” says John Andersen,
Wembley Stadium’s cleaning services manager. “We
were impressed by the fact that SCA puts money back
into reforestation and avoids using chlorine bleach in its
products while also trying to minimize energy consumption.
These factors scored very highly with us, and therefore
we were keen to sign up SCA Tissue Europe ahead
of any other tissue suppliers.”
The stadium, which will open this year, will have
90,000 seats and will accommodate more than 1.5 million
sports and music fans each year.
Tork manufacturer SCA Tissue Europe is the European
market leader in tissue.
there has been continuous
rainfall. This, in turn,
means lower transportation
costs for SCA and
“We’ve experienced very
positive results from the
test project, and reliability
has exceeded my expectations,”
Ljunggren, head of transportation
at SCA Skog.
FOTO: NEIL PROCTOR
Truck driver Carl-Erik Lodin
is happy with the new technique.
The only visible parts of CTItechnique
are the tubes on the
outside of the wheel.
Today there are four
trucks operating in SCA’s
forests with CTI technology,
and the goal is to
increase the number of
vehicles to 20 as quickly
The test, started three
years ago, was carried out
together with the Swedish
truck operators, vehicle
manufacturers and other
forest companies. Overall,
the forestry industry in
Sweden sees opportunities
to reduce its costs by SEK
100 million annually.
Tom Dudfi eld, SCA , John Andersen, Wembley Stadium and
Rob Broadbent, SCA.
[1*2007] SHAPE SCA*27
NEW PRODUCT IN FRANCE
■ France is the fi rst country to launch a new
multipurpose feminine hygiene product called
Nana Plus+. With this new product, SCA Personal
Care will reach a market in France that
has not yet been actively targeted. The target
group is women between 35 and 60 years who
use feminine products rather than purposemade
incontinence products to address their
incontinence condition. Nana Plus+ is positioned
as premium product, which is indicated
by its look and price. The next market in line
to launch the product is Italy, where it is called
28*SCA SHAPE [1*2007]
Nana Plus+ is SCA’s
in North America sold
SCA HAS SOLD its North
American packaging operations
to Metalmark Capital
for USD 400 million. The
North American operations
have annual sales of
about USD 430 million.
The transaction is expected
to be completed during the
fi rst quarter of 2007 and
the purchase price will be
paid in cash.
“Our ambition is to
concentrate SCA’s packaging
operations in the
European market, where
Eastern Europe and Russia
are the fastest-growing
regions,” says Jan Åström,
SCA’s president and CEO.
“Along with that, we want
to continue our growth in
China, where trends are
favorable. The sale of our
North American packaging
operations allows us to
speed up our pace in these
The operations account
for about 10 percent of
SCA’s total sales within its
business area Packaging.
Annual earnings per share
will be reduced in the short
term by SEK 0.2, while
net debt will be reduced by
about SEK 2.8 billion.
The sale is in line with
the strategy SCA presented
at Capital Market Day last
September. SCA sees good
opportunities for growth
and improved earnings
within its four business
areas. Selective divest -
ments and acquisitions
will contribute to this
HAS A NEW LOOK
■ SCA’s external Web site
has a new look and feel as of
January this year. The main
changes are the layout, a simplifi
ed and more user-friendly
structure, more frequent
news updates and the fact
that the whole site can now
also be viewed in Swedish.
“SCA’s Web site receives
around 200,000 visitors a
month and is one of our most
channels,” says Anna Selberg,
vice president corporate
communications in Stockholm.
“Our focus during the
coming year will be to further
develop the content and
structure to even better communicate
the whole business
■ Things are going well for Libero,
SCA’s diaper brand in the Nordic
countries. All of Libero’s diaper prod -
ucts have increased their mar ket
share as competitors lose ground.
The pant diaper Libero Up&Go
had the largest increase in sales
in 2006, rising 9 percent in both
volume and sales in the Nordic
countries. Several factors account
for these favorable numbers.
“First of all, it’s the high quality
of our diapers, with their excellent
fi t and absorbability, which
consumers appreciate and choose
over other diaper products,” says
Fredrik Krook, category marketing
manager at SCA Personal Care.
“Our efforts to market Up&Go as
our fl agship product have also
Another important factor is
In May, SCA will launch a
limited edition in the
Nordic countries of its fi rst
designer diaper under the
Libero sailing along
SCA’s successful marketing campaigns.
These include the awardwinning
The fi lm premiered in 2005 in
conjunction with the launch of the
new generation of the Up&Go diaper
and is still being shown. Also
playing an important role is the
fact that hospitals and maternity
wards choose Libero diapers for
[1*2007] SHAPE SCA*29
WOODEN HOUSES ARE IN, and many
of them look like nothing that came
before. New trends, innovative architects
and pioneering technology are all behind
Major efforts have been made in recent
years to allow the construction of wood
frame buildings of up to four or fi ve stories.
In the US, 90 percent of all new buildings
of this height with light frame construction
are wood frame.
“A couple of years ago, the EU decided
that wooden buildings could be built up
to fi ve stories high instead of four,” notes
Mark Isitt, editor-in-chief of the architectural
journal Forum AID.
In many projects more than two stories
high, wood has turned out to be cheaper to
build with than other framing materials.
Technology also allows companies that
manufacture prefabricated houses to start
working on multi-story building projects.
Wood is also used increasingly as facing.
Steel and glass are combined in a daring
way with wood, which given its natural
properties withstands the impact of wind
Wood has its own character. It ages
beautifully, and unlike any other building
material it is living.
“For decades, we’ve seen an inferno of
steel and glass,” Isitt says. “Now wood is
becoming increasingly popular among
leading architects as a reaction to dead
glass. Combining dead glass and living
wood is refreshing.” ▲
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TEXT PER ÖQVIST
PHOTO: GEIR BRENDELAND
Face Bar in Bangkok, with an interior and exterior of equal
beauty, mixes traditional Thai architecture with minimalism,
antique furniture and antique Buddha fi gures. The building is a
bar, a temple, a bakery, a restaurant and a spa – an oasis where
trend-conscious pilgrims can escape the rush of Bangkok.
PHOTO: FACE BAR
PHOTO: GETTY IMAGES
The tallest residential
of wood is Strandveien
37 in Trondheim,
Norway, by Brendeland
entire building with
components has a
number of positive effects.
Wood has been
found to bond exhaust
fumes and other pollutants,
that wooden buildings
have a positive effect
on urban environments.
component is also
impregnated to make
it non-fl ammable.
The Church Village of Gammelstad, Luleå, in Sweden is on UNESCO’s list of World Heritage
sites. It is northern Europe’s largest and best-preserved “church village,” with 424 wooden
houses, arranged in a medieval city pattern around a magnifi cent stone church with a separate
bell tower. Most of the houses have two rooms.
[2*2006] [1*2007] SHAPE SCA*31
PHOTO: PATRIK GUNNAR HELIN
32*SCA SHAPE [2*2006] [1*2007]
Santiago Calatrava is the architect behind the Turning
Torso in Malmö, Sweden. Another spectacular building,
which has won numerous awards, is his Ysios Winery in
Laguardia, Spain, built from 1998 to 2001. Two undulating
cement walls, almost 200 meters long, run parallel,
26 meters apart. The southern wall is fully clad in cedar.
PHOTO: FELIX NUSSBAUM MUSEUM
The wooden churches
of Kizhi in Karelia,
Russia, were built in
the 18th century and
illustrate a visionary
architecture far ahead
of its time. UNESCO
has named Kizhi a
World Heritage site.
It lies in the northern
part of Lake Onega in
the Republic of Karelia.
Two magnifi cent
18th century churches
and an octagonal bell
tower from 1862, also
made of wood, are key
buildings in this openair
museum for northern
Gert Wingårdh is the architect behind the
noted House of Sweden, where the Swedish
Embassy in Washington is located. All
interior fl oors, walls and ceiling are made
of wood. The exterior of the building,
however, plays an ingenious visual trick
on the eye. “He plays with the image that
foreigners have of how we build in the
Nordic countries,” Isitt says. “Behind glass
panels are computer-generated imitations
of wood veneer.”
is a spectacular
architect who won the
competition to design
Freedom Tower, the
replacement for the
World Trade Center’s
Twin Towers in New
York. “He’s hardnosed
and known for
his architecture in
metal,” says Mark Isitt.
“Using the same style
in wood, the expression
is completely different
– warm and embracing.”
has done excellent
work in wood, such as
the Jewish Museum
in Copenhagen. With
the Felix Nussbaum
Museum in Osnabrück,
Germany, he blends
wood, steel and glass
in a spectacular way.
[2*2006] [1*2007] SHAPE SCA*33
PHOTO: GETTY IMAGES
SHAPING A VIEW
The founder of Winston Eco-Strategies, helps leading companies use
environmental thinking to drive growth. His current book, the
bestseller Green to Gold, highlights what works – and what doesn’t –
when companies go “green.”
“ONE LESSON FOR BUSINESS:
THINK ABOUT A LEADING GREEN PRODUCT
AS A GATEWAY — THE EQUIVALENT
OF A LOSS LEADER.”
FROM LOSS LEADERS
TO GREEN LEADERS
y wife and I were lucky enough
to welcome Jacob Winston into
the world six months ago. His
birth made me think about many
things, from the circle of life to
“Wow, college will be expensive in 18 years.”
But from a green business perspective — and is there
any other? — I was thinking about the arrival of a new
consumer, one I hope to raise as a green one. And about
how successful the organic baby food market has been. I
hear from many people that baby food was their introduction
to organics in general. Organic milk followed fast,
and then on to a range of other foods. Once you decide
it’s healthier for your baby, you begin to wonder why you
shouldn’t be eating organic yourself.
ONE LESSON FOR BUSINESS: Think about a leading
green product as a gateway — the equivalent of a “loss
leader.” Figure out the way into a customer’s life with a
greener option, then open them up to the idea of many others.
Organic foods have grown so fast in part because they
offer the promise of personal benefi ts — health and protection
from pesticides in particular. They demonstrate
perfectly the point about using green as the “third button”
to push with consumers, after price and quality. But once
you’ve pushed that button, customers may be more ready
to hear the green pitch in general. ▲
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