Agenda - Corrugated Packaging Council

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MEMO8. Current Reality of Competing Materials♦ RPC Ownership Change – The long awaited sale of CHEP’s RPCbusiness was finally accomplished with its recent sale to IFCO. Thepurchase now makes them the largest RPC Pooler with an estimated 55%share of market. Makes them the largest with a claim of 55% marketshare. Fred Hepenstel, new President of IFCO is a produce industryveteran and is very bullish on RPC future…in their news release of thepurchase he predicts a 60-70% RPC produce market share in 10 years.♦ Retailer Updates:Wal-MartA recent visit to Bentonville found the produce segment concerned overfinancial viability of RPCs. They are currently giving volume to Poolersin areas where corrugated is better (i.e. strawberries) just to help recoverinvestments Poolers have made and provide revenues in as many areas aspossible. However, they are converting all soft fruit, apples, and mostgrapes to CCF due to lack of RPC availability to properly service thesemarkets. When questioned about corrugated industry initiatives theyaffirmed interstackability of CCF and RPCs continued to be no problemand while they appreciate the work that went into the Wax AlternativeStandard effort they have eliminated ice from their produce shipments.KrogerA January tour of their Midwest perishables center showed no RPCspresent – limited CCF as well. However, the RPCC in Februarydisclosed an RPC trial was ongoing at a major retailer and a March callto Reggie Griffin confirmed an RPC test at Ralph’s division in one DCwith 20 green room items. We offered Harry Turvey and Full-Disclosuresoftware assistance but no interest at the current time. Reggie positionedtest as “routine” follow-up to one 5 years ago…currently there is nocommitted completion date.Case Ready MeatWal-Mart is the dominant player and they are starting to drive (demand)testing and change to RPCs. Their near-term focus is on pork and beefmuscle cuts and grinds. Protein suppliers of CRM are resistant but willmove if pressured. Although their direction is clear it is unclear if Wal-Mart’s change to RPCs will cause a total supplier packaging change. Theexact style has not been finalized but the Tosca bale-arm RPC is beingused by Kroger in their closed loop system.The Legislative LandscapeCALIFORNIA Topic: RECYCLING/PACKAGINGSB 1573, which directs manufacturers to eliminate “excesspackaging” and encourages manufacturers to establish take-back programsfor their products and packaging, is scheduled to be heard in the Senate9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723
MEMOEnvironmental Quality Committee April 24. In addition, SB 1573 wouldencourage use of reusable, returnable, refillable and recyclable packaging,use of compostable packaging, reducing toxicity and establishing specificpercentages of recycled content material in packaging. The bill wouldapply not only to primary packaging, but secondary, tertiary and transportpackaging as well.AF&PA is participating in a broad-based coalition to oppose the measure.9. Wax Replacement ProtocolThe Executive Director reported that there has been little retailer activitynoted in “pulling through” wax alternatives. Albertsons and Publix are thenotable exceptions. In the meantime, Global Green (with EPA backing)continues to sponsor the Recyclable Transfer <strong>Packaging</strong> group made upprimarily of Wax Alternative treatment manufacturers. They havedeveloped a new website to assist finding recyclable solutionshttp://beta.recyclabletransferpackaging.org. They refer to our protocol butthey currently have no limitations on claims of recyclable solutions(concern over their liability.) The Committee felt that while we couldn’tcontrol their content we could make them use a disclaimer regarding thesesolutions aren’t necessarily recyclable and have them refer to ourStandard.---(A RECENT REVIEW INDICATES THAT THEREFERENCE TO OUR PROTOCOL HAS BEEN DELETED)---Concern was also expressed by Rich Soderberg, FBA Technical Director,that there are only 5 certifications on file at FBA from 3 companies, withno treatment producers having filed as yet. The committee said theywould take this information back to their company’s and asked that a newreport be issued reflecting activity on July 1 st .10. SustainabilityThe committee agreed that Sustainability was coming at us fast and thatthe industry needed to be proactive given our positive environmentalstory. They also adopted the following Recommended Actions:1. Adopt Sustainability as an overarching industry issue the CPAshould support2. Endorse the formation of an industry-wide ad hoc committee todefine the issue and formulate a corrugated industry position3. Cooperate with a broad-based international effort through ICCA4. Allow CPA funds (following approval by CPA committee) to beused if direct cost support is required9465 Counselors Row • Suite 200 • Indianapolis, Indiana 46240 USA• PH: 317.805.4750 • FX: 317.805.4723
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Agenda - Corrugated Packaging Council

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