SHAPE Magazine 1/2007 - SCA

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SHAPE Magazine 1/2007 - SCA

A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 1 2007

SHAPE

STRONG SAILING

FOR WIND POWER

COPPER POTS MAKE

STRONGER TREES

BIG

CHAINS

BUILD

BRANDS

BLOGS CAPTURE

Clean

CONSUMERS’

sweep

IMAGINATION

OLYMPIC GOLD FOR

CHINA IN HYGIENE 2008

BABY DIAPERS

GO HIGH FASHION

HOW TO KEEP

LOBSTER FRESH

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

ENORMOUS POLITICAL

IMPOR TANCE TO CHINA.

EXPERTS HAVE BEEN CALLING IT CHINA’S

COMING-OUT

PARTY.



19

26

14

30

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.

14 TRENDS

Seafood and wind power are more popular than

ever before. Read the latest trends, including new

ways for finding out what consumers really want.

19 PROFILE

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.

24 TECHNOLOGY

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.

30 CAMERA

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


SHAPE UP

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

retail trade

■ 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

increasing tourism.

The world wants more

ENERGY

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


INCONTINENCE

PROTECTION GROWING

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

complete undergarment.

“Children’s clothes are one of the

most enjoyable things for many

parents,” says Fredrik Krook, cat-

SPAIN’S GROWTH

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.


Spring Collection

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


SHAPE COVER

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]


PHOTO: SCANPIX

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

impressed.

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

SHAPE COVER

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

outbreaks.

“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

food available.

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

coming-out party.

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

the games.

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! ▲

12

9

6

3

0

8.8

DOUBLE-DIGIT GROWTH

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.

7.8

7.1

8.0

SOURCE: NATIONAL BUREAU OF STATISTICS

8.3

9.1

10.0

10.1

9.9

10.7


PHOTO: SCANPIX

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

(athletics, football)

★ Beijing National Aquatics Center

(swimming, diving, water polo)

★ National Indoor Stadium

(gymnastics, handball)

★ Beijing Shooting Range Hall

(shooting)

★ Wukesong Indoor Stadium

(basketball)

★ Laoshan Velodrome (cycling)

★ Shunyi Olympic Rowing-Canoeing

Park (rowing, canoe/kayak)

★ China Agricultural University

Gymnasium (wrestling)

★ Peking University Gymnasium

(table tennis)

★ Beijing Science and Technology

University Gymnasium (judo,

taekwondo)

★ Beijing University of Technology

Gymnasium (badminton and

gymnastics)

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


SHAPE COVER

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

a week.

“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

CLEAN HANDS?

10*SCA SHAPE [1*2007]

q

q

Tibor Kovacs, SCA Hygiene Asia in

Shanghai.

®

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

THE GUARDIANS

OF HYGIENE

China’s tissue market is the second biggest in the world,

and the growth rates are astonishing compared to

Western markets, around 10 percent.

s tional

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

and hotels.

“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

PHOTO: SCANPIX

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

and mentality.”

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

ever dreamed.

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

dispensing systems.

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

French company.

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


SHAPE COVER

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

in 2005.

There are similarities between China

today and the Japan of the 1970s and

The Chinese Roewe

will conquer the

world with a Rovers

bankrupt design.

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


PHOTO: SCANPIX

We want to be

regarded as a

one-stop shop

where our

cus tomers can

get any type of

packaging they

want.

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

USD200 million.

“This year we have set a target of

growing at least 30 percent,” says

HungChee Loh, president of SCA

Packaging Asia.

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

through acquisitions.”

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

for clients.

“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


TREND

eat lobster


...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.

JONAS REHNBERG

SEAFOOD FOR

THE HEART

■ 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.

PHOTO: ISTOCKPHOTO


PACKAGING HELPS

PRESERVE QUALITY

■ 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

three ways:

★ 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

TREND

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.

GREAT WINDS

FOR EUROPEAN

WIND POWER

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.

MALIN HALLARE



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

Long live

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

agency Synovate.

“Today, qualitative research is the

only way to really understand consumers,”

she says.

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

target groups.

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.”

THE CONSUMERS

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

given topics.

“Here you can actually dialog with

the customers, and this is very important,”

she says.

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.”

NEW METHODS

THORD ERIKSSON

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

www.scapackaging.dk

More than a box ...


Cookson believes there

are basic trends that

apply across Europe.

PROFILE

THE CHANGING

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

techniques.

“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


PROFILE

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

to project.

“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

into a

period of creation

and defi -

nition where

store names

are beginning

to mean

something to

consumers.

We are now

on the verge

of retailers

creating a real

image around

their store

brands’ name

and logo.

Europeans are

knowingly buying

lower-quality products

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

problem.”

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

consumers.”

Cookson believes the key area to watch right

now is the development of biofuels and their



100

80

60

40

20

0

EUROPEAN BRAND

CATEGORIES

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

profi tability.

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

retail brands.

The division of the European market

between producers’ brands and retailers’

own brands looks like this:

TISSUE PAPER

FOR CONSUMERS

56%

RETAILERS’

BRANDS

DIAPERS

FEMININE HYGIENE

PRODUCTS

INCONTINENCE

PRODUCTS

75% 85% 98%

25%

PRODUCERS’ BRANDS

RETAILERS’ BRANDS

44%

PRODUCERS’

BRANDS

15% 2%

FOTO: GETTY IMAGES

More products will

be sold under retailers’

own brands in

the future.

Retailers now

have to have

a story to tell,

and it’s no longer just

one of price.

[1*2007] SHAPE SCA*21


PROFILE

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.”

FOOD TRENDS

ACCORDING TO

ANDREW COOKSON:

★ Consumers want food to be

convenient.

★ Retailers want their logo on

products to strengthen their

image.

★ Fresh meat is moving in at hard

discounters.

★ 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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FOCUS On:

IMAGE

SAVINGS

HYGIENE

INNOVATION

PRODUCTIVITY

PROFITS

PERFORMANCE

SERVICE

PARTNERSHIPS

ENVIRONMENT


TECHNOLOGY

t

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

owners.

“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

stable.”

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. ▲



SCA INSIDE

26*SCA SHAPE [1*2007]

Three winners.

Display-product Kit-

Kat Sakura (right)

protective packaging

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

for architects).

“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

3 AWARDS

TO SCA

IN SINGAPORE

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.

www.sca-tork.com


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

STADIUM CONTRACT

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

lower emissions.

“We’ve experienced very

positive results from the

test project, and reliability

has exceeded my expectations,”

says Ingemar

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

as possible.

The test, started three

years ago, was carried out

together with the Swedish

Road Administration,

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

Nuvenia Plus+.

28*SCA SHAPE [1*2007]

Nana Plus+ is SCA’s

new multipurpose

feminine hygiene

product.

Packaging operations

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

regions.”

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

development.

WWW.SCA.COM

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

important communication

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

of SCA.”


■ 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

been successful.”

Another important factor is

SCA INSIDE

In May, SCA will launch a

limited edition in the

Nordic countries of its fi rst

designer diaper under the

Spring Collection.

Libero sailing along

SCA’s successful marketing campaigns.

These include the awardwinning

commercial “Marathon.”

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

newborns.

[1*2007] SHAPE SCA*29


CAMERA

BUILDING IN

WOOD

WOODEN HOUSES ARE IN, and many

of them look like nothing that came

before. New trends, innovative architects

and pioneering technology are all behind

this inventiveness.

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

and weather.

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.” ▲

30*SCA SHAPE [2*2006] [1*2007]

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

building made

of wood is Strandveien

37 in Trondheim,

Norway, by Brendeland

& Kristoffersen

Architects.

Constructing the

entire building with

prefabricated wooden

components has a

number of positive effects.

Wood has been

found to bond exhaust

fumes and other pollutants,

which means

that wooden buildings

have a positive effect

on urban environments.

Every wooden

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: SCANPIX

CAMERA

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

Russian wooden

architecture.

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.”

Daniel Liebeskind

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.”

Liebeskind

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

Andrew Winston

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

m

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. ▲

34*SCA SHAPE [1*2007]

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