Germany Packaging Machinery Market Research Report - PMMI

Germany 

Packaging Machinery 

Market Research Report 

The Findings of a Market Research Study Conducted by Charlemagne - Europe for Business, 

exclusively for the Packaging Machinery Manufacturers Institute 

March 2002

© Copyright 2002. Packaging Machinery Manufacturers Institute, Inc. All rights reserved. The 

information contained herein shall not be distributed or shared by the recipient. No parts of this 

document may be reproduced without the express written permission of PMMI.

TABLE OF CONTENTS 

1. EXECUTIVE SUMMARY............................................................................................................. 6 

1.1 THE GERMAN MARKET FOR PACKAGING MACHINERY................................................................. 6 

1.2 FACTORS IN THE PURCHASING DECISION .................................................................................... 6 

1.3 PACKAGING SUPPLIES................................................................................................................. 7 

1.4 LEGISLATIVE ISSUES................................................................................................................... 7 

1.5 FOOD & BEVERAGES .................................................................................................................. 8 

1.6 BEVERAGES................................................................................................................................8 

1.7 CHEMICAL INDUSTRY ................................................................................................................. 9 

1.7.1 Pharmaceutical industry ................................................................................................... 9 

1.7.2 Personal care, soaps, detergents..................................................................................... 10 

1.7.3 Paint industry ..................................................................................................................10 

2. INTRODUCTION......................................................................................................................... 11 

3. PACKAGING MACHINERY ..................................................................................................... 12 

3.1 MACHINERY PRODUCTION IN THE EU....................................................................................... 12 

3.1.1 Extra-EU exports............................................................................................................. 12 

3.1.2 Machinery exports by the EU to accession countries ..................................................... 12 

3.1.3 Machinery imports into the EU from accession countries.............................................. 13 

3.2 THE GERMAN MACHINERY AND PLANT MANUFACTURING INDUSTRY ....................................... 14 

3.3 THE GERMAN PACKAGING MACHINERY MARKET...................................................................... 14 

3.3.1 Purchasers’ practices and preferences ........................................................................... 15 

3.3.2 Facts and figures.............................................................................................................. 20 

3.3.3 Outlook............................................................................................................................ 23 

3.3.4 SWOT analysis ................................................................................................................ 24 

4. PACKAGING SUPPLIES............................................................................................................ 27 

4.1 PACKAGING SUPPLIES INDUSTRY.............................................................................................. 27 

4.1.1 Facts and figures............................................................................................................. 27 

4.2 PACKAGING CONSUMPTION AND RECYCLING OF PACKAGING WASTE........................................ 27 


4.3 COMPULSORY DEPOSIT............................................................................................................. 30 

4.4 DUALES SYSTEM DEUTSCHLAND AG (THE GREEN DOT) ........................................................ 31 

4.4.1 The Green Dot in Europe ................................................................................................ 32 

4.4.2 How the Dual System works............................................................................................ 32 

4.5 PLASTICS.................................................................................................................................. 33 


4.6 PAPER AND BOARD ................................................................................................................... 35 

4.6.1 Packaging as a marketing tool........................................................................................ 36 


4.7 GLASS ...................................................................................................................................... 38 


4.8 METAL ..................................................................................................................................... 41 


4.9 WOOD ...................................................................................................................................... 42


4.10 TRENDS .................................................................................................................................... 42 

4.11 KEY PLAYERS........................................................................................................................... 43 

4.12 TRADE ASSOCIATIONS .............................................................................................................. 44 

5. LEGISLATIVE ISSUES............................................................................................................... 47 

5.1 INTRODUCTION......................................................................................................................... 47 

5.2 GENERALLY APPLICABLE REGULATIONS FOR THE GERMAN PACKAGING INDUSTRY ................. 47 

5.2.1 Packaging Ordinance...................................................................................................... 47 

5.2.2 Product Recycling and Waste Management Act ............................................................. 54 

5.2.3 EU Packaging Directive 94/62/EG................................................................................. 57 

5.3 SPECIAL REGULATIONS FOR THE GERMAN PACKAGING INDUSTRY ........................................... 63 

5.3.1 Generic regulations......................................................................................................... 63 

5.3.2 Food Labeling Ordinance ............................................................................................... 70 

5.3.3 Labeling of tobacco products.......................................................................................... 81 

5.3.4 Regulations regarding the chemical industry ................................................................. 82 

5.4 DEVELOPMENTS AND TRENDS .................................................................................................. 95 

6. TARIFFS, TAXES AND DUTIES............................................................................................... 96 

7. FOOD & BEVERAGE INDUSTRY............................................................................................ 97 

7.1 THE MARKET ............................................................................................................................ 97 

7.1.1 Retail chains.................................................................................................................... 98 

7.2 TRENDS .................................................................................................................................... 98 

7.3 FACTS AND FIGURES................................................................................................................. 99 

7.4 TRADE ASSOCIATIONS ............................................................................................................ 104 

7.5 COMPANY PROFILES ............................................................................................................... 107 

7.5.1 Nestlé Deutschland AG ................................................................................................. 107 

7.5.2 Company S..................................................................................................................... 111 

7.5.3 Lutz Fleischwaren AG.................................................................................................... 115 

7.5.4 Company Z..................................................................................................................... 118 

7.5.5 Company X..................................................................................................................... 121 

7.5.6 Company N .................................................................................................................... 124 

7.5.7 Company R..................................................................................................................... 127 

7.5.8 Stollwerck AG ................................................................................................................ 130 

7.5.9 Company P..................................................................................................................... 135 

7.5.10 Company Q .................................................................................................................... 137 

7.5.11 Company W.................................................................................................................... 139 

7.5.12 Company H .................................................................................................................... 142 

7.5.13 Company V..................................................................................................................... 145 

7.5.14 Company B..................................................................................................................... 148 

7.5.15 Company A..................................................................................................................... 150 

8. BEVERAGES .............................................................................................................................. 153 

8.1 THE MARKET .......................................................................................................................... 153 

8.1.1 Nonalcoholic beverages (NAB)..................................................................................... 154 

8.1.2 Coffee / tea .................................................................................................................... 157 

8.1.3 Beer ............................................................................................................................... 158

8.1.4 Milk and dairy products ................................................................................................ 161 

8.1.5 Spirits ............................................................................................................................ 163 

8.2 TRENDS .................................................................................................................................. 164 



8.4.1 Binding-Brauerei AG .................................................................................................... 167 

8.4.2 Company J ..................................................................................................................... 171 

8.4.3 Company K .................................................................................................................... 173 

8.4.4 Company C.................................................................................................................... 176 

9. CHEMICAL INDUSTRY........................................................................................................... 179 

9.1 THE MARKET .......................................................................................................................... 179 

9.2 TRENDS .................................................................................................................................. 179 

9.3 FACTS AND FIGURES............................................................................................................... 180 


10. PHARMACEUTICAL INDUSTRY...................................................................................... 185 

10.1 THE MARKET .......................................................................................................................... 185 

10.2 TRENDS .................................................................................................................................. 186 




10.5.1 Company G .................................................................................................................... 190 

10.5.2 Company T..................................................................................................................... 193 

11. PERSONAL CARE, SOAPS, DETERGENTS INDUSTRY............................................... 195 

11.1 THE MARKET .......................................................................................................................... 195 

11.2 TRENDS .................................................................................................................................. 195 




11.5.1 Company E..................................................................................................................... 200 

11.5.2 Company L..................................................................................................................... 203 

11.5.3 Company D .................................................................................................................... 205 

11.5.4 HAKA Kunz GmbH ........................................................................................................ 208 

12. PAINT INDUSTRY.................................................................................................................211 

12.1 THE MARKET .......................................................................................................................... 211 


13. PET FOOD INDUSTRY......................................................................................................... 215 

13.1 THE MARKET .......................................................................................................................... 215 


14. CONCLUSIONS AND RECOMMENDATIONS................................................................ 217 

15. APPENDIX .............................................................................................................................. 218 

15.1 KEY PLAYERS IN THE GERMAN ‘GROCERY INDUSTRY’........................................................... 218

1. 80 

2. EXECUTIVE SUMMARY 

2.1 THE GERMAN MARKET FOR PACKAGING MACHINERY 

The most important industry sectors using packaging machinery are food, beverages, and chemicals 

(including pharmaceuticals, personal care, detergents, and paints). In these sectors, an increasing 

demand for both packaging and packaging machinery is expected, especially in: 

a) the beverage industry due to stricter regulations about recycling and environmental issues in 

general; 

b) the cosmetic industry due to the increasing significance of packaging as a marketing tool; 

c) the food industry due to a strong trend toward convenience food and smaller packaging sizes. 

The German market for packaging machinery is dominated by German suppliers. Bosch, Klöckner 

Packaging (mainly Klöckner Hänsel and Klöckner Tevopharm), Schubert, Rovema, and SIG 

(Switzerland) were mentioned most frequently by the companies interviewed. This is not surprising, 

given that German packaging machinery manufacturers hold a world market share (in 20 of the most 

important packaging machinery markets) of almost 30%, a fact that can be clearly seen as an indicator 

of the high quality of the machinery. After Germany, the main secondary suppliers are Switzerland, 

Italy, the United States, and the Netherlands. On a European level, Krones, SIG, Klöckner Packaging, 

Tetra Pak, SASIB, and GEI are market leaders with a combined market share (in terms of turnover) of 

about 40%. 

Even though America represents the third most important supplying country for packaging machinery, 

most companies interviewed said that they had no experience with American packaging machinery. 

Machinery from the United States is criticized for various reasons: insufficient knowledge of the 

German market, differences between the American and the metric systems, the fact that American 

technology with regard to packaging machinery is considered old-fashioned, excessively long delivery 

times, and slow after-sales service owing to the long distance. 

2.2 FACTORS IN THE PURCHASING DECISION 

A key factor in purchasing decisions is the performance of both the machinery itself and the 

manufacturer. This includes reliability, flexibility, and innovative ability; a thorough knowledge of the 

specific requirements of the food, beverage, or chemical industries; machinery that is user-friendly and 

environmentally friendly; quick after-sales service; and of course good value for the money. 

Companies purchase packaging machinery according to either their current specific requirements or 

requirements determined by market trends. Market requirements are changing rapidly, reflecting 

shorter product lifespans, more single households, more elderly people, and the possible introduction of 

a compulsory deposit on nonreturnable beverage containers. 

Budgeting is done when a new machinery purchase is due. Companies’ requirements are generally 

determined by the technical department, sometimes in cooperation with the engineering or production 

department. The final purchasing decision for bigger investments is usually made by the purchasing 

department. 

90% of new packaging machinery purchasing is done directly from the manufacturer.

Internal communication plays an important role in companies that are larger users of packaging 

machinery: The exchange of experience about suppliers among the company’s technicians is seen as an 

important reference source. If such references are not available for a potential supplier, e.g. if it is new 

or small, reference lists will be requested. 

Bigger companies often seek to standardize the machinery used in all their production sites in 

Germany. They will therefore look for a manufacturer offering the complete spectrum of packaging 

machinery. 

The Internet is considered an excellent medium for finding general information about packaging 

machinery or manufacturers, but few companies would consider purchasing packaging machinery via 

the Internet. 

2.3 PACKAGING SUPPLIES 

In 2000, the German packaging supplies industry had a production value of almost 23 billion €. It is 

characterized by mainly small and medium-sized companies. A major problem for packaging suppliers 

whose customers are mainly larger companies is that in phases of lower raw material prices, they are 

forced to yield to customer pressure and lower their selling prices. However, it is much harder to raise 

prices when raw material prices rise again. 

Within the European Union, Germany is the biggest packaging supplier. The most important packaging 

materials are plastics, paper and board, glass, metal, and wood; of these, plastics, paper, and board have 

the largest production in terms of value (approximately 8.5 billion € each). These industrial sectors are 

well organized in various trade and industrial associations. 

Strict regulations in Germany—especially environmental and food regulations—are having and will 

continue to have a major impact. In 2002, a compulsory deposit will probably be introduced on some 

nonreturnable packaging. 

Major trends in the packaging market are identified as follows: 

� A trend is emerging for packaging suppliers to become “service providers,” able to react 

flexibly to customers’ wishes; 

� Packaging will become more and more important as a marketing tool; 

� PET and PEN packages are increasing significantly—especially in the nonalcoholic beverages 

market. 

2.4 LEGISLATIVE ISSUES 

The section on legislative issues covers all regulations that are of major significance for the German 

packaging industry. The Packaging Ordinance, the Product Recycling and Waste Management Act, and 

the EU Packaging Directive 94/62/EG are the most important general regulations, and for this reason 

these are described in detail. 

More specific regulations for the German packaging industry include generic regulations, the Food 

Labeling Ordinance, the labeling of tobacco products, and regulations with regard to the chemical 

industry, including specific rules governing pharmaceutical products, cosmetics, soaps and detergents, 

and dangerous goods.

2.5 FOOD & BEVERAGES 

A strict division into separate subsectors such as food, beverages, pharmaceuticals, and personal care is 

difficult because the German word “Lebensmittel” means “Grocery,” i.e. both food and non-food. Most 

statistics or comparisons cover the “Lebensmittel” sector as a whole. 

The food and beverage industry—with a turnover of about 120 billion € in 2000 and more than 6000 

companies—is one of the most important sectors of industry in Germany. In 2001, the export share of 

the food and beverage industry in Germany was 18.9% (2000: 18.3%). 

The increasing globalization of markets and spectacular mergers of companies both in retailing and 

manufacturing have put German food companies under serious pressure. Global players in the food 

retailing industry, such as Wal-Mart, have entered the German (and European) markets, making 

competition between retail groups even more intense. 

Some major trends in the food and beverage industry are: 

� smaller packaging sizes or multipacks due to more single households and more elderly people; 

� modified cooking and consumption habits reflecting a trend toward more convenience food and 

functional food; 

� shorter product lifetimes; and, consequently, 

� an increasing number of product as well as packaging innovations. 

2.6 BEVERAGES 

The German beverages industry can be divided into a range of different beverage categories, each of 

which is organized with its own trade association. The most important categories are nonalcoholic 

beverages (NAB), beer, spirits, coffee and tea, and dairy products, even though the last two categories 

in this list are often treated as “food.” 

The NAB sector had a turnover of 9.2 billion € in 2000. The per capita consumption of NAB drinks in 

Germany was about 253 liters in 2000. Mineral water is the preferred soft drink. 

Innovative beverages for health, wellness, and convenience play an important role. Functional drinks, 

wellness drinks, energy drinks, and fruit-yogurt drinks are entering the market with the emergence of 

new taste directions. 

The trend toward PET and PEN bottles has already been mentioned. In the cola segment, the market 

share of PET is already 71.8% (January to August 2001). For fruit drinks, cartons have a market share 

of 45%, while juices in returnable bottles command 41% and other nonreturnable packaging 14%. 

In 2000, the coffee and tea industry comprised 44 companies and 6,300 employees with a turnover of 

4.09 billion €. The per capita consumption of coffee is about 4 cups a day. 

In 2000, the German brewing industry had a turnover of 8.25 billion €. About 37,600 employees in 

1,270 breweries work in the industry, producing some 110 million hectoliters of beer and beer-based 

drinks. Per capita consumption in 1999 was 127 liters. The export proportion was 10%. 

Younger consumers in particular in Germany are becoming more interested in international beers and 

in beer-based mixed drinks. The run on beer-based mixed drinks in Germany started in 1993. Since 

then, the market has boomed with ready-mixed “Radler” and “Alsterwasser,” cola-mixes, and other 

variants. Beer-based mixed drinks remain a niche segment, but they represent a new development in 

the available drinks range with over 1.9 million hectoliters per year.

In 1999, 57.9% of all beer sold in Germany was packed in returnable bottles, 22.8% in nonreturnable 

bottles and cans, and 19.3% in kegs. 

With a turnover of about 20 billion € in 2000, the German dairy industry is the strongest branch of the 

food industry with an export quota of 18%. The industry comprises 265 mostly small and mediumsized 

companies with about 37,600 employees. The domestic market for dairy products is divided into 

75% end-consumers and 25% business users. 

The dairy industry is one of the most innovative sectors of the German food industry. Not only new 

products but also innovative packaging solutions are significant for the German dairy industry. 

Manufacturers are thus responding to changes in consumer structure and demand, e.g. the growing 

number of single households. 

In the long-life milk segment, 99% of units sold are packed in cartons and 1% in returnable glass 

bottles. For fresh milk, cartons have a market share of 81%, 12% is sold in returnable glass, and 6% in 

tubular bags. 

The German spirits market in the year 2000 had a turnover of about 2.9 billion €. Per capita 

consumption in 2000 was 5.8 liters. In total, about 728 million bottles (0.7 liters) were produced, 94 

million bottles (0.7 liters) were exported, and 294 million bottles (0.7 liters) were imported. 

2.7 CHEMICAL INDUSTRY 

In 2000, total sales by the German chemical industry exceeded 102 billion €. The German chemical 

industry is the third largest producer of chemical products worldwide. Only the United States and Japan 

achieve higher sales; in other words, Germany is Europe’s largest producer of chemical products. In 

2000, Germany was the second largest exporter of chemicals with a world market share of nearly 

12.5%. The largest exporter is the United States, although the US chemical industry focuses more on 

domestic demand. 

About 47% of total sales in 2000 were accounted for by the basic chemicals sector, followed by 

pharmaceuticals (19.3%), paints (7.7%), and soap / detergents (7.6%). 

2.7.1 Pharmaceutical industry 

The market structure of the German pharmaceutical industry is not very transparent. It consists of 

different distribution channels and different sources of funding (e.g. the social insurance funds), and 

there is also a difference between prescription and prescription-free (over-the-counter or OTC) 

medicines. Market data is also confusing because it is sometimes quoted in manufacturers’ ex-factory 

selling prices and sometimes in pharmacy prices. 

In 2000, there were about 1,100 companies in the pharmaceutical industry with more than 114,000 

employees. They achieved total sales of 18.6 billion €. Exports increased by 2.9% to a total value of 

15.0 billion €. Pharmaceutical imports increased by 23.9% to reach a total value of 13.6 billion €. 

One of the main problems for the European pharmaceutical market is that each member state still sets 

its own regulations for pharmaceutical price control and refunding, and pricing structures are 

correspondingly varied. Each country is trying in its own way to reduce pharmaceutical costs to the 

state-funded health insurance system, or at least preventing them from increasing.

2.7.2 Personal care, soaps, detergents 

In 2000, the market volume for personal care products exceeded 10 billion €, with a 1.3% growth trend. 

The largest segments were hair care products with 2.7 billion € and skin care products with nearly 2.1 

billion €. 

The market volume for detergents and cleaning products is about 3.8 billion €. Within this, by far the 

largest market is for universal detergents with 1.2 billion €. Sales of powder products, special 

detergents, and special cleaning and care products have increased. 

The market for hygiene products has a total value of about 3 billion € with a growth rate of 

approximately 4.2% (2000/2001). 

The implementation of the German environmental code of conduct has had a major impact on the 

detergent industry. The objective of this voluntary initiative by the European detergent industry is to 

reduce overall consumption of detergents, packaging materials, nonbiodegradable substances, and 

energy used in washing EU-wide by 10% by the end of 2002. 

2.7.3 Paint industry 

In 2000, the German paint industry produced 2.1 million tons of paints and lacquers with a total value 

of nearly 4.7 billion €. With an export quota of 20%, the German paint industry is the leader in Europe, 

ahead of Italy, France, and Great Britain. There are 250 companies with about 22,000 employees. 

For some years, there has been a trend toward higher production safety and better environmental 

protection throughout the economy. The paint industry has responded by investing in the development 

of suitable products to meet these needs.

3. INTRODUCTION 

This report identifies the market potential for packaging machinery in Germany. The first section 

introduces the German packaging industry, subdivided into the packaging supplies industry and the 

packaging machinery industry. A profile of the key industry sectors using the most packaging material 

and therefore the most packaging machinery is provided. In this context, key industry sectors are: 

� food 

� beverages 

� pharmaceuticals 

� personal care, soaps, and detergents 

� paint 

A strict classification into separate sectors such as food, beverages, pharmaceuticals, and personal care 

is—in particular with regard to the key players in these sectors—difficult because the major 

manufacturers and producers tend to be active in many sectors. To some extent it can be said that 

pharmaceuticals, personal care, soaps, detergents, and paint all belong to the chemical industry, and 

therefore a profile for the chemical industry is provided here as well. 

The relevant data was obtained by secondary desk research and 25 telephone interviews with users of 

packaging machinery. Verbatim quotations from the interviewees appear in the Company Profile 

section in order to clarify their points of view. In the course of the secondary desk research, some 

officials of trade and industrial associations were interviewed when appropriate to obtain especially 

detailed information. Much information was gained via annual reports or information materials from 

trade or industrial associations. However, it should be noted that the majority of these associations have 

not yet published annual reports for 2001, therefore much of the information refers to the year 2000. 

Interviews were held in the following sectors: 

Food companies 15 

Beverage companies 4 

Pharmaceutical companies 2 

Personal care companies 2 

Detergents companies 2 

The companies interviewed represent the diversity of the individual sectors: global players, mediumsized 

companies, and small specialist companies. 

A further section of the report deals in detail with current and future legislative issues that are relevant 

in Germany and that have an impact on packaging machinery in this market. 

The German packaging machinery industry is multifaceted and fairly well organized, and competition 

is intense. For this reason it was difficult to obtain detailed information on the packaging machinery 

installed in the companies interviewed. German companies are relatively shy of disclosure. In addition, 

most companies did not wish to be mentioned by name. 

NOTE: Throughout this report, monetary values are expressed in Euros (€). At the time of writing the 

Euro was worth US$ 1.13.

4. PACKAGING MACHINERY 

4.1 MACHINERY PRODUCTION IN THE EU 

The contribution of individual EU member states to machinery production in the European Union 

varies enormously. This can be explained primarily by the differences in size of the countries. German 

mechanical engineering is quite clearly dominant within the EU. Behind it, Italy, the United Kingdom, 

and France form a group of three that together account for about the same production share as 

Germany. Within this group, Italy has increased its share significantly in the last decade, while the 

United Kingdom has steadily dropped back. All the remaining EU member states taken together 

account for only 22% of EU production. Within this group of countries, the leader is Sweden followed 

by Spain and the Netherlands. 

4.1.1 Extra-EU exports 

The mechanical engineering industry in the EU sells two-thirds of its production on the EU market. 

The other one-third is exported to third countries. Exports amounted to 116 billion € in 2000, nearly 

one-quarter of which was destined for the United States, which represents the industry’s most 

important single country market. In terms of regions, 28% of EU exports are sent to the North 

American Free Trade Agreement (NAFTA) countries, and another 28% to Asia. Eastern Europe 

represents the third most important region with 14% of total exports, followed by other West European 

countries with a further 13% of exports. 

Shares of total exports outside the EU in 2000 

NAFTA 28% 

of which USA 23% 

Asia 28% 

Eastern Europe 14% 

Western Europe excluding EU 13% 

South America 6% 

Others 11% 

Total exports 116 billion € 

(Data for 2000 by VDMA) 

4.1.2 Machinery exports by the EU to accession countries 

Machinery exports by the EU to accession countries (i.e. new applicant nations in Eastern Europe, 

including former CMEA [Council for Mutual Economic Assistance] countries) are of growing 

significance for the mechanical engineering industry. In 2000, EU countries exported mechanical 

engineering products worth 17.4 billion € to the 13 accession countries. Poland is by far the largest 

customer among this group of countries, followed by Turkey and the Czech Republic. Germany 

dominates as a supplier. Only manufacturers from Austria are similarly well positioned to serve this 

market. More than half of EU exports are of complete machines as opposed to parts.

Machinery exports by the EU to accession countries 2000 

(Share in %) 

By product 

Parts 26% 

Components 18% 

Complete machines 56% 

By country of destination 

Poland 24% 

Turkey 21% 

Czech Republic 18% 

Hungary 13% 

Romania 6% 

Slovenia 5% 

Others 13% 

Total 17.4 billion € 


4.1.3 Machinery imports into the EU from accession countries 

The accession countries are not only important as export destinations but are also significant machinery 

suppliers. In 2000, the EU imported mechanical engineering products from these countries to the value 

of 6.4 billion €. Although this represents only 37% of the trade in the opposite direction, imports from 

this group of countries have grown more rapidly than exports. 47% of mechanical engineering imports 

into the EU from accession countries related to machine parts. The major supplier is the Czech 

Republic, followed by Poland and Hungary. Slovenia’s exports have increased significantly in recent 

years. The entry of the accession countries into the EU will further enhance trade with these countries 

and will also generate growth and create additional pressure for modernization. At the same time, 

machinery manufacturers from these countries will increase their efforts to become more competitive. 

Machinery imports by the EU from accession countries 2000 (Share in %) 

By product 

Parts 47% 

Components 23% 

Complete machines 30% 

By country of destination 

Poland 18% 

Turkey 5% 

Czech Republic 35% 

Hungary 15% 

Slovakia 9% 

Slovenia 7% 

Others 11% 

Total 6.4 billion € 

(Data for 2000 by VDMA)

4.2 THE GERMAN MACHINERY AND PLANT MANUFACTURING INDUSTRY 

The German engineering industry, covering both machinery and plant manufacturing, is one of the five 

most important industrial sectors in the Federal Republic with sales of about 130 billion €. 

The business is highly export-oriented, with exports representing 64% of German production in 2000. 

The German engineering industry dominates international trade with a share of approximately 20%, 

ahead of its fiercest competitors, the United States and Japan. 

Small and medium-sized companies dominate the market. These companies are often world leaders in 

their specialist fields. The number of patents registered in mechanical engineering far exceeds the 

number in other sectors, and this is no coincidence given that the engineering industry makes huge 

investments in both research and training. 

Key figures for the German machinery and plant manufacturing industry 2000 

Turnover 130.0 billion € 

Employees 892,600 

Export share 64% 

Percentage of international trade 20.1% 

Most important export markets 


USA (13%), France (8.8%), 

Great Britain (6.1%), Italy (6.3%), 

Netherlands (4.4%) 

According to a study by the VDMA (www.vdma.org), the biggest trade association within the 

engineering industry in Germany, the majority (78%) of enterprises expect the share of services in 

relation to total turnover to rise during the next 5 years. While in 2000 more than half of the companies 

generated less than 10% of their turnover through service provision, in 2006 this proportion will fall to 

only one-third. On the other hand, more companies will have a share of services in their turnover of 

between 10% and 50%. Tele-service in particular will become more important for the mechanical 

engineering industry. More than two-thirds of companies expect above-average growth for this service. 

Also more than half of the companies expect that software will grow above average. 

4.3 THE GERMAN PACKAGING MACHINERY MARKET 

In 2000, according to VDMA figures, German packaging machinery manufacturers—approximately 

300 companies with 25,000 employees—achieved sales of 3.43 billion €. This is equivalent to a 17% 

share of the world market. Taking the total volume of the 20 most important packaging machinery 

export markets (9.12 billion €), German producers have a market share of almost 30% (2.61 billion €). 

In this sector, Germany is the leading world export nation ahead of Italy (25%) and the United States 

(10%). 

While Germany and Italy export almost 80% of their production, the United States and Japan produce 

primarily for their internal markets. The United States is by far the most important destination country 

for German packaging machinery, followed by France and Great Britain.

Imports of packaging machinery into Germany in 2000 reached 518.6 million €. The most important 

supplying countries were Switzerland followed by Italy and the United States. 

Of the 20 most important export markets for packaging machinery, Germany is the most important 

supplying country in 12 of them and the second most important in a further 6. Germany’s leading 

international position reflects the highly competitive nature of German packaging machinery. There are 

several reasons to account for the strong demand for German packaging machinery in 2000. Exports 

were strengthened by the favorable dollar rate, and the basic cyclical conditions were also good. 

However, the most important factors are high quality standards and improved value for the money: The 

packaging machinery industry stands out in terms of innovation and technical development. Key 

factors are, among others: 

� Modularization of components simplifies the upgrading and modification of packaging 

machinery (important due to shorter product lifetimes). 

� Automation such as servo-drives enhances the productivity and flexibility of systems, e.g. by 

shortening changeover times 

� Tele-service reduces service costs 

� Technical advances are reducing the stresses imposed on packaging materials during 

processing, enabling the use of cheaper materials. 

4.3.1 Purchasers’ practices and preferences 

4.3.1.1 Purchasing procedures of the companies interviewed 

Companies start to think about purchasing new machinery mainly when their existing machinery is too 

old or when new customer requirements make investments inevitable. To remain competitive with 

reference to packaging, companies must keep pace with the increasing speed of new product 

developments and market launches. New market factors, such as the compulsory deposit on 

nonreturnable containers, which might become effective in the second half of 2002, impose 

considerable pressure on manufacturers in all sectors of the industry. Ideally, machinery should be 

capable of being changed over quickly and easily to fit new packaging requirements. Furthermore, 

older machinery should remain compatible with new machinery. 

As a first step, the company will need to define its specific requirements. The experience of the 

company’s technical and production departments as well as comments by the various machine 

operators are very important at this stage. Also other companies may be asked to comment on their 

experience with a potential supplier of packaging machinery. Many of those responsible for selecting 

and ultimately buying machinery consider references to be highly important. First, references are seen 

as an indicator of the manufacturer’s know-how in mechanical engineering; secondly, comparisons 

with other potential suppliers can be made. 

Larger companies often define a uniform internal machinery standard for all their production sites in 

Germany. These companies will therefore look for a single manufacturer that offers the complete 

spectrum of packaging machinery. This tendency toward standardization of machinery simplifies 

servicing and maintenance on the one hand and enables savings on spare parts and tools inventories on 

the other hand. 

90% of new machinery purchasing is done directly from the manufacturer. For most companies, the 

leasing of machinery as a financing method is not considered; machinery is either paid for on delivery 

or is financed by some form of credit.

Based on the interview data, it is rare for German companies to carry out annual capital investment 

plans or to engage in long-term planning with regard to packaging machinery. However, usually there 

is a budget to cover the maintenance costs of packaging machinery. 

Budgeting for packaging machinery is done at the time a new machinery purchase is due. All relevant 

data regarding costs, such as maintenance periods, downtime, energy consumption, material costs, and 

costs for personnel, are taken into account in the budget calculation. Usually, manufacturers are 

approached that are already well known to the company, either by personal experience or, in bigger 

companies, the experience of colleagues. If a company belonging to a group has had a good experience 

with a particular machine, this is communicated to the other companies in the group so that the whole 

group can benefit. The exchange of experiences among the technicians from all the production facilities 

is viewed as an important reference source. If such references are not available for a company, if for 

instance the company is new or small, reference lists will be requested from the potential supplier. 

Potential suppliers of packaging machinery may be approached in two principal ways. Either the 

prospective supplier is presented directly with the requirements and expectations for the machinery, or 

he is asked to bid in a more general way. Either way, many companies expect the manufacturer to 

cooperate in order to find the best packaging machinery solution for the company’s individual needs. 

4.3.1.2 Purchasing criteria 

The most important purchasing criterion at the decision stage is the performance of the machinery and 

the manufacturer. Does it meet the company’s needs? Is it reliable? Is it an innovative technology that 

will still be modern and appropriate in the future? Is the manufacturer competent with regard to 

mechanical engineering? Is the manufacturer capable of answering technical questions related to 

control, electrical, and electro-technical criteria? 

The operating costs of the machinery are a further decisive factor. The machinery is expected to be 

robust and long-lasting. Conversion times and breakdown frequency should be as low as possible. 

Operating costs such as electric power consumption, compressed air consumption, or packaging raw 

materials consumption are considered thoroughly, as well as maintenance costs in general. 

Service (including training of the machine operators) and value for the money are also important 

factors, although some interviewees clearly stated that the cheapest machinery does not always offer 

the best value. One respondent said that service and maintenance are not purchasing criteria because, in 

90% of cases, these are undertaken by in-house staff. 

Flexibility, i.e. the capability of a machine to be changed over, and its availability, i.e. a short delivery 

period, were also mentioned by several respondents. 

Some interviewees stated that they attach great importance to personal contact with the manufacturer. 

A good level of communication guarantees the best results for both supplier and purchaser. 

Many interviewees considered that compliance with regulatory formalities (in Germany strict 

regulations apply, especially in the food and beverage sector) has to be checked thoroughly before 

buying any machine. 

4.3.1.3 Decision makers 

In most companies, it is the technical department that is in charge of the selection of packaging 

machinery and its manufacturers. The technical department together with either the engineering

department or the production department analyzes and determines the company’s machinery 

requirements. 

If a technical purchasing department exists (usually only in bigger companies), the final purchasing 

decision is made in cooperation with this department. In smaller companies, the final purchasing 

decision is made by the factory manager or by corporate management. In medium-sized companies, the 

purchasing department is in charge of the final purchasing decision. 

One company only, Stollwerck AG, has a special packaging department. The manager of this 

department selects and decides for himself on small and medium-sized packaging machinery 

investments; for larger machinery items the manager of the purchasing department at corporate 

headquarters makes the final purchasing decision. 

4.3.1.4 Internet usage 

Most companies consider the Internet to be an excellent way of finding general information about 

packaging machinery or manufacturers. However, detailed information is hard to obtain from this 

source; each company has its own particular and special needs, and these special machines often tend 

to be very complex units. A clear advantage of the Internet is that it is quick: to get general information 

without needing to make an appointment with a sales representative, to obtain a first general 

impression of a company, and to find addresses or telephone numbers in order to request more detailed 

information. One interviewee said that he would prefer a Web page to be organized and structured like 

a trade fair catalog. 

4.3.1.5 Trends 

4.3.1.5.1 General information 

Packaging operations around the world have more in common today than ever before. Whether created 

by more global brands, more multinational companies, or more internationalized consumers and 

customs, more and more packaged goods are being produced, distributed, and marketed in similar ways 

whether in the United States, Europe, Asia, the Middle East, or Latin America. 

Even though package types, sizes, and combinations and even some packaging materials may differ in 

different countries, some universal forces seem to be driving packaging developments. These forces 

include economic pressures on costs, distribution and retail requirements, and the importance of 

meeting different consumer needs, particularly for convenience, safety, and information. As a result, 

producers of packaged goods are building more flexible and efficient manufacturing operations in order 

to respond more quickly to market demands. Improved productivity, quick changeovers, faster 

diagnostics, and more automation are becoming standard operating procedures for packaging systems 

all over the globe. 

As packaging systems become more complex and sophisticated, there is a demand to make operations 

more intuitive. Control panels can be effectively used for training and outlining precise diagnostics, 

setup, start-up and maintenance procedures. Computerization can help reduce container changeover 

time by more accurate matching of container type and size with all operating parameters. Robots can be 

the answer for more agile equipment. Remote diagnostics help packaging lines run smoothly around 

the clock, around the world. Improved product and materials handling techniques are allowing oddshaped 

containers to be readily accommodated on packaging lines without sacrificing speed or 

efficiency.

With the emergence of Euroland and Eurobrands, the need is increasing for packaging systems that 

provide a greater variety of products faster and at lower cost. Retailers require less time between orders 

and deliveries, so packagers must respond via flexible production lines that can be quickly changed 

over for different products and package sizes. Environmental and labeling requirements also pose 

challenges for packaging and package handling operations throughout the EU as well as in non-EU 

countries in Western and Eastern Europe. 

4.3.1.5.2 Data based on the interviews 

A clear finding from the interview data is the expectation that product packaging will play an 

increasingly important role as a marketing tool in the future. “Packaging should become more and 

more exotic” was one comment. At the same time, less material will be used because strict regulations 

are making the disposal of packaging waste more and more expensive. 

A major trend toward smaller packaging sizes is identified, based on demographic trends in Germany. 

The increasing number of single households makes giant packs such as those available in the United 

Statets uneconomic: multipacks such as 5 x 30g are preferred. 

Furthermore, consumers prefer “easy-to-handle” packages, i.e. a package that can be opened quickly 

and easily. 

As a result, the users of packaging machinery are very demanding in relation to the machinery that they 

will be buying in the future. The machinery of the future should and will be more flexible: more 

flexible from the point of view of the manufacturer who will work together with the user to develop 

ideal solutions for each individual demand; and more flexible in terms of multifunctional machinery 

that can be employed for different products without major modifications or upgrades. As the product 

life-cycles of consumer goods become shorter, manufacturers must be capable of reacting quickly to 

new trends and developments. 

Specifically in the beverage sector, there is a strong demand for machinery that is capable of packing 

both glass and PET bottles. 

4.3.1.6 Trade fairs 

The following list shows the most important trade fairs for the packaging and packaging machinery 

industry. Of these, ISM, Fachpack, Interpack, Hannover Messe, and Achema were mentioned most 

frequently by the companies interviewed. Interpack is visited regularly by 80% of the interviewees. 

Nuremberg 

FachPack - Trade Fair for Packaging and Labeling Technology 

Cologne 

Anuga FoodTec - International Food Technology Fair 

Dusseldorf 

InterCool - International Trade Fair Frozen Foods, Ice Cream, Refrigeration Technology 

Nuremberg 

BRAU Beviale - European Trade Fair for the Beverage Industry: Raw Materials, Technologies, 

Logistics, Marketing

Munich 

drinktec-interbrau - World Fair for Beverage Technology 

Essen 

METPACK - International Trade Fair for Metal Packaging 

Dusseldorf 

interpack - International Fair Packaging Machinery, Packaging, and Confectionery Machinery 

Frankfurt 

Achema – International Trade Fair for the Process Industries 

Hannover 

Hannover Messe – a cross-sectoral exhibition for industrial technology 

Cologne 

ISM - international platform for supplier and bulk buyers in the sweets and cookies industry.

4.3.2 Facts and figures 

Key figures for the German packaging machinery industry 2000 

Turnover 3,425.7 million € 

No. of companies 300 


Export share 77% 

World market share 

of production in % 

17% 

Export in million € 2,613.4 million € 

Market share (of the 20 most important 

packaging machinery markets) of export in % 

28.7% 


400.0 

300.0 

200.0 

100.0 

0.0 

(Source: VDMA) 

German exports in respective countries

Packaging Machinery 1) 

Beverage Machinery 2) 

Slaughter-house and Butchers' Machines and Equipment 

Coffee, Tea and Tobacco Processing Machines 

Bakery Machines 

Confectionery Machines 

Basic Food and Feed Equipment 

Machinery for Pharmaceutical, Cosmetics and Paint 

Industry 

Dairy Technology 

Machines and Plants for the Fruit and Vegetable 

Processing 

(Source: Data from the VDMA 1998) 

Other Food and Beverage Machines 

Production 1998 shares in % 

1.3% 

0.8% 

0.4% 

3.9% 

2.7% 

6.4% 

5.9% 

8.2% 

15.6% 

20.1% 

34.7%

Export Markets for Packaging Machinery in 2000 

Total exports to ... 1997 1998 1999 2000 

2000/ 

1999 

in % 

German 

exports 

2000 

(mn. €) 

German 

market 

share 

Value in million € 

1. USA 973.3 954.8 1,030.0 1,210.6 17.5% 357.5 29.5% 1 

2. France 475.8 528.0 582.4 579.2 -0.6% 175.2 30.3% 2 

3. United Kingdom 528.4 588.1 538.4 541.9 0.6% 142.9 26.4% 2 

4. Germany 462.2 477.3 482.5 518.6 7.5% 0.0 

5. China/Hong Kong 557.7 446.1 348.6 409.9 17.6% 116.4 28.4% 1 

6. Mexico 154.4 257.3 321.2 380.9 18.6% 60.4 15.9% 3 

7. Canada 231.0 263.5 272.9 317.0 16.1% 41.9 13.2% 2 

8. Spain 208.9 223.1 288.1 313.8 8.9% 66.8 21.3% 2 

9. Netherlands 272.8 253.1 273.3 286.5 4.8% 96.6 33.7% 1 

10. Japan 232.4 217.0 216.0 261.6 21.1% 106.3 40.7% 1 

11. Italy 164.7 185.6 179.8 232.3 29.2% 72.0 31.0% 1 

12. Russia 278.9 307.3 187.4 216.4 15.4% 96.8 44.8% 1 

13. Belgium-Luxembourg 174.0 190.6 209.1 209.1 0.0% 74.2 35.5% 1 

14. Switzerland 183.2 206.7 216.2 208.7 -3.5% 93.4 44.8% 1 

15. Poland 192.5 199.3 204.4 188.3 -7.9% 90.5 48.1% 1 

16. Brazil 276.4 237.6 183.1 161.4 -11.9% 39.1 24.2% 2 

17. Sweden 121.3 135.2 142.2 148.5 4.4% 45.3 30.5% 1 

18. Austria 126.5 110.8 110.4 137.0 24.0% 74.4 54.3% 1 

19. Australia 124.7 121.6 104.9 120.0 14.4% 27.9 23.3% 2 

20. Ireland 75.2 99.3 104.8 106.5 1.6% 41.5 39.0% 1 

All countries 8,473.3 8,621.8 8,306.8 9,120.0 9.8% 2,613.4 28.7% 1 

(Source: VDMA FV NuV) 

1) Position of Germany 

Rank 

1) 

Germany: import statistics for HS 8422 codes in 2000 (in 1000 DM) 

Code 8422-20 8422-30 8422-40 8422-90 TOTAL 

Total imports 45,527 210,420 381,642 285,952 923,541 

of which from EU 27,826 79,416 148,826 143,072 399,140 

France 1,622 8,332 15,550 11,811 37,315 

Netherlands 482 7,694 28,892 15,981 53,049 

Italy 2,626 23,795 59,172 38,941 124,534 

Great Britain 11,762 7,994 6,081 25,837 

Ireland 1,519 321 1840 

Denmark 13,198 594 10,771 5,041 29,604 

Greece 323 323 

Portugal 304 588 892 

Spain 2,783 2,203 7,923 12,909 

Sweden 4,175 11,906 4,013 17,201 37,295

Finland 1,089 5,656 726 7,471 

Austria 5,215 5,318 3,286 34,416 48,235 

Belgium 255 6,002 9,142 3,949 19,348 

Norway 1,626 8,430 586 10,642 

Switzerland 7,200 43,948 107,036 44,504 202,688 

San Marino 3,758 3,758 

Malta 819 819 

Turkey 2,387 489 456 3,332 

Poland 565 1,744 7,632 7,149 17,090 

Czech Republic 309 5,123 18,244 20,772 44,448 

Slovakia 729 5,530 7,376 13,635 

Hungary 1,314 700 1,962 15,008 18,984 

Russia 824 824 

Romania 484 484 

Bulgaria 1,841 1,841 

Ukraine 448 448 

Slovenia 2,467 884 740 1,772 5,863 

Croatia 810 810 

Macedonia 435 435 

South Africa 533 396 677 1,606 

USA 3,585 10,558 47,343 27,060 88,546 

Canada 5,299 1,676 800 7,775 

Brazil 2,105 4,698 6,803 

Israel 29,477 29,477 

China 22,000 3,856 434 26,290 

South Korea 376 1,381 1757 

Japan 887 12,321 5,560 18,768 

Australia 953 1,827 330 3,110 

Mexico 986 986 

Argentina 787 787 

Thailand 571 571 

Malaysia 1,271 1,271 

Singapore 646 646 

Taiwan 4,993 322 5,315 

(Source: Bundesagentur für Außenwirtschaft [bfai]) 

4.3.3 Outlook 

In general, expectations for 2002 have been rather scaled down because the impact of economic 

developments in the United States, the most important exporting country for German packaging 

machinery, remains unclear. 

The general economic climate, as well as the rate of inflow of foreign orders, seems to indicate a 

reduction in the size of the German machinery and plant manufacturing industry. A decline of 2% in 

2002 forecast by the VDMA is considered to be a “normal and common development,” according to its 

president, Mr. Diether Klingenberg.

However, the slowdown in production must be considered against the background of the recent boom 

in the German machinery and plant manufacturing industry: The expansion rate between 1999 and 

2001 was 13.5%. 

The trough that was experienced in the fourth quarter of 2001 seems to have been overcome. 

According to the VDMA the prerequisites for an economic upturn are rated better for Europe than for 

the United States. 

The German company Krones, which claims to be the biggest manufacturer of filling and packaging 

machinery for beverages worldwide, increased its turnover by 15% in 2001 to a total of 1.17 billion €. 

Krones has a total of 8,400 employees. Also in 2001, the company’s total volume of orders increased 

by 8% to 1.19 billion €, bucking the trend of the market, according to the company. 

The recent US decision to impose protective duties of up to 30% on steel imports has provoked a 

commercial dispute between the United States and the rest of the world, including Europe. This may 

have consequences for the packaging machinery industry as well. The European Commission is 

planning to lodge a complaint with the World Trade Organization (WTO), supported by Japan, South 

Korea, Russia, and Brazil. 25% of US steel imports come from the EU, and half of these imports would 

be affected by the protective duties. 

Manufacturers hope that the Interpack (www.interpack.de), to be held again in Düsseldorf April 24–30, 

2002, will—as the industry’s leading global fair—provide new impetus and lead to a high and stable 

demand for packaging machinery in the medium term. 

4.3.4 SWOT analysis 

The majority of companies interviewed have no experience with American packaging machinery or 

distributors as yet. The reasons for this are manifold, but the overall attitude toward the use of 

American packaging machinery is rather negative. 

4.3.4.1 Strengths 

In general, German packaging machinery is considered very reliable; also in terms of service, 

flexibility, innovation, and technology, it is rated highly. German packaging machinery manufacturers 

are said to be cooperative. Some companies stated that it would be no problem to jointly work out new 

solutions for special requirements with a German manufacturer. 

Especially in the confectionery sector, Swiss and Italian machinery is said to be more innovative than 

German machines. Italian machinery is perceived as offering good value for the money and is not as 

expensive as German machinery. In terms of technology and flexibility, Italian machinery is rated quite 

highly. 

The flexibility of French machinery is judged to be high, as well as being a good value. 

Of the few companies interviewed that had experience with American packaging machinery, some said 

that American machinery contains fewer electronic elements but has well-developed mechanical 

elements. The machinery is therefore perceived as robust. The strength of American machinery is 

especially seen in other technology sectors, e.g. in the construction of MAP devices. Nordson is 

considered to be a high-quality brand.

4.3.4.2 Weaknesses 

Some companies described the cost/benefit ratio of German packaging machinery as moderate, but the 

majority of companies considered both German packaging machinery and German after-sales service 

to be very expensive. Some companies criticized the use of binding contracts, i.e. an obligation to 

purchase not only the machinery but also the packaging materials from the same manufacturer. 

The main weakness of Italian and French packaging machinery manufacturers is that almost all of them 

have no manufacturing or distribution locations in Germany. Generally there is also a communication 

problem because they often only speak Italian or French, although some of them also speak English. 

This can cause problems especially with regard to technical details. 

Manufacturers from Great Britain also have a communication problem because they only speak 

English, not German. 

Many companies said that American packaging machinery manufacturers’ knowledge of the German 

market is inadequate. Food regulations and calibration regulations are said to be unknown in America, 

and those that exist do not meet European standards. Part of the problem is the difference between the 

American and the metric systems of weights and measures. The absence of the metric system in the 

United States causes a problem for many companies: It takes too long to get spare parts because most 

American packaging machinery manufacturers do not have subsidiaries in Europe, and only metric 

spare parts are available on the German market. Therefore, not only the provision of spare parts but 

also service is problematic. For some companies, this is a sufficient reason to rule out the use of 

American packaging machinery. 

A further issue is distance. Delivery times can take 6–8 months, which is considered too long. 

In general, American technology with regard to packaging machinery is considered to be insufficiently 

progressive, i.e. it lacks innovative qualities. 

4.3.4.3 Opportunities and Threats 

Some key factors can be listed as prerequisites to enable the American packaging machinery industry 

to penetrate the German market in a significant way: 

a) The American packaging machinery industry must build up a direct presence in Europe. 

Machinery is mainly purchased directly from the manufacturer. The German industry puts 

considerable emphasis on quick service and fast delivery. 

b) The metric system is standard in German industry. Companies are not willing to change this 

standard. 

c) When purchasing capital goods, German industry expects instructions and explanations in the 

German language (this is especially important for technical details). Personal contact with the 

supplier is also regarded as highly important. 

d) A thorough knowledge of German regulations, German industrial sectors (such as food and 

beverages, pharmaceuticals, personal care, and paint), and their specific needs and requirements 

is an essential prerequisite. 

Changes that may have a significant impact on the German packaging industry in the future include the 

introduction of a compulsory deposit on nonreturnable containers, the growing number of single 

households, the aging population, and the increasing importance of packaging as a marketing 

instrument. Manufacturers involved with packaging for the food and beverage, pharmaceuticals, 

personal care, or paint industries need to act fast to stay abreast of these new market conditions.

One interviewee said that, in order to switch to an American manufacturer, either their prices would 

have to be substantially lower or the particular item of machinery should be something that is not 

available from a European manufacturer.

5. PACKAGING SUPPLIES 

5.1 PACKAGING SUPPLIES INDUSTRY 

The German packaging supplies industry offers a wide range of products and is largely based on small 

and medium-sized companies. In 2000 it achieved an estimated production value of about 22.91 billion 

€ (1999: 20.96 billion €). This represents a share of 1.2% of gross domestic product (1999: 1.1%). 

Profitability, nonetheless, leaves much to be desired, mainly because of strong price competition in 

retailing (the entry of the US commercial giant Wal-Mart into the German market has further 

aggravated this) and partly because of increasing foreign competition (competitors from, for example, 

Spain and Italy attempt to enter the German market with up to 30% lower production costs). 

The packaging supplies industry is one of the larger sectors of German industry. Within the European 

Union, Germany is the biggest packaging supplier. 

According to the IPV (Industrieverband Papier- and Folienverpackung e.V. (www.ipv-ev.de), trade 

association for the paper- and cling-wrap industries), a big problem for packaging suppliers, whose 

customers are mainly larger companies, is that when prices of raw materials are lower, they are forced 

to yield to customer pressure and lower their selling prices. However, it is much harder to raise prices 

when raw material prices rise again. 

In addition, customers increasingly insist on full service. A clear trend is emerging from packaging 

supplier to service provider, able to react flexibly to customers’ wishes. According to the IPV, 

customers ask more and more frequently for complete solutions, including creative packaging-related 

advertising concepts. 


Development of materials in the packaging supplies market 

( in % of production value ) 

1970 1995 1999 2000 

% % % % 

Paper / cardboard 45.6 38.9 37.2 36.6 

Plastics 20.6 31.9 35.0 37.0 

Metal 21.3 19.4 18.3 17.9 

Glass 9.4 7.4 7.1 6.0 

Wood and other 3.1 2.4 2.4 2.5 

TOTAL 100 100 100 100 

(Source: GADV / RG Verpackung and annual report of IPV) 

5.2 PACKAGING CONSUMPTION AND RECYCLING OF PACKAGING WASTE 

According to the Gesellschaft für Verpackungsmarktforschung (GVM), Germany currently consumes 

about 14 million tons (metric tons) of packaging material per year. About half of this is made up of 

consumer packaging for the private end-consumer sector (mainly private households). Transportation

packaging and other packaging material for the industrial and commercial sector make up the other half 

of packaging consumption. 

According to a study by the GVM on the development of packaging consumption in Germany in the 

1990s, packaging consumption was reduced from a total of 15.6 million tons in 1991 to 13.8 million 

tons in 1997. Regarding the consumer packaging segment, consumption decreased in the same period 

from 7.6 million tons to 6.8 million tons. The bulk of packaging material by weight is glass and paper, 

whereas the most widely used packaging material—plastic—ranks third because of its light weight. 

The cause of this positive development was the introduction of the German Packaging Ordinance in 

1991. The Ordinance passed on the responsibility to manufacturers and distributors of packaging to 

take back and recycle their used packaging. The relevant industries were made responsible, 

independently from municipal waste disposal systems, for collecting and recycling their used 

packaging materials at their own expense. Because of the additional costs, industry was motivated to 

reduce packaging and to create cost-effective recycling of material. 

While in the industrial and commercial sector, registration and recycling systems for the bigger and 

less contaminated transport packaging material already existed to a great extent or could be installed at 

low cost, for consumer packaging materials a new organization had to be created. The DSD (Duales 

System Deutschland AG [www.gruener-punkt.de]) was founded by manufacturers and suppliers in 

1993 to manage the collection and recycling of packaging material. By 1998 it had recycled 29.7 

million tons of consumer packaging materials. 

In August 1998 the German Packaging Ordinance was amended in the light of experience and also to 

bring it into line with new EU packaging guidelines. Under this law, manufacturers and suppliers have 

to document each year whether they have fulfilled or overfulfilled their obligations. The largest 

increases in recycled goods have been achieved with plastic and aluminum packaging material. 

The results indicate that, with the active cooperation of the consumer, recycling of consumer packaging 

materials in Germany has reached a high level. The material recovered has made an important 

contribution in terms of saving raw material and energy-conscious recycling management. The GVM 

calculated a recycling quota for the entire packaging sector—consumer and transport packaging—of 

about 80% in 1997 (11.1 million tons of recycled packaging material).


Development of packaging consumption in Germany 1) in thousand tons 

(data from May 1999) 

1991 1994 1996 1997 1999 2) 2000 3) 

Glass 4636.6 4126.9 3811.3 3714.9 3740.0 3690.0 

Tinplate 555.1 457.6 439.7 433.2 429.6 430.0 

Aluminum 71.5 59.5 58.6 59.8 52.3 51.5 

Plastics 4) 1627.9 1527.3 1477.3 1497.3 1434.0 1447.0 

Paper, cardboard, carton 5394.6 5055.4 5035.7 5136.4 5228.9 5296.0 

Compounds total 724.7 685.4 681.1 671.0 742.5 738.1 

of which compounds for 

beverages 193.0 201.5 204.6 209.7 209.6 211.0 

Other paper-based compounds 203.6 167.9 139.8 126.0 131.4 126.4 

Plastic-based compounds 28.0 19.9 21.6 21.3 51.2 51.7 

Aluminum-based 

compounds 5) 36.9 34.9 36.3 34.9 70.6 70.6 

Tinplate-based compounds 263.2 261.2 278.8 279.1 279.7 278.4 

Sheet metal 409.9 339.1 296.8 306.4 315.1 309.1 

Wood, cork 2184.0 1853.1 1828.9 1991.5 2148.4 2131.0 

Other packaging 6) 16.0 14.2 15.0 16.9 16.2 16.2 

Packaging total 15,620.3 14,118.5 13,644.4 13,827.4 14,107.0 14,108.8 

(Source: Gesellschaft für Verpackungsmarktforschung mbH [GVM]) 

1) Since 1998 on basis of the amended packaging regulation 

2) Estimate by GVM 

3) Forecast by GVM 

4) including Plastics/plastic compounds 

5) Since 1998 aluminum based compounds and plastic based compounds with aluminum 

6) Fiber, ceramic, rubber 

(Source: Data of the environment 2000 of the Federal Environment Office)

Material recycling of packaging — 

Private end-consumer (data from Dec. 1999) 

1991 1994 1996 1997 1998 2000 

Consumption quota in % 

Glass 53.7 70.1 80.8 83.3 84.8 85.9 

Sheet metal 34.2 58.1 76.7 83.7 83.3 84.4 

Aluminum 5.2 30.4 72.4 77.8 67.4 69.6 

Plastics 3.2 52.6 62.4 66.6 70.7 70.4 

Paper 28.3 57.4 71.4 78.2 84.7 86.3 

Compounds for beverages 0.0 40.6 58.0 61.6 67.6 67.9 

(Source: Data of the environment 2000 of the Federal Environment Office) 

5.3 COMPULSORY DEPOSIT 

The discussion about the possible introduction of a compulsory deposit for nonreturnable packaging 

has dominated the whole packaging industry for years. 

The VVO (Verpackungsverordnung, packaging ordinance), passed in 1991, took into account the major 

sector of beverage packaging. In this connection the issue of the share of returnable and nonreturnable 

beverage packaging was addressed for the first time. Minimum quotas were set for the use of returnable 

beverage packaging in Germany, whereby the proportion of returnable packaging was fixed at a 

minimum of 72%; accordingly, the proportion of nonreturnable packaging was limited to a maximum 

of 28%. The handling of empty beverage packages, especially of empty nonreturnable packages, was 

also regulated by the VVO. Each manufacturer or distributor is responsible for taking back its own 

empty, used packaging. Exceptions from this responsibility are possible, providing that an areawide, 

consumer-orientated collection system exists to carry out the collection. That was why the Duale 

System Deutschland (DSD) was founded in 1990. Apart from the quota and legal restraints already 

mentioned, the VVO also provides for a compulsory deposit on nonreturnable packaging in the event 

that the target of 72% of returnable packages is not met. The quota is evaluated every year by the GVM 

and made available to the German Ministry for the Environment. The quotas are then published in the 

Bundesanzeiger. 

Before an initial nonobservance of the quota can lead to introduction of the compulsory deposit, a 

survey is carried out. Only when this survey proves that the requirements were not met, and official 

notice is given, is the compulsory deposit imposed after a delay of six months. In 1997, Germany failed 

for the first time to achieve the minimum quota of 72% returnable packaging. The exact figure of 

71.35% was officially published in the Bundesanzeiger on January 21, 1999. 

According to the latest Consumer Scan of the GfK (Gesellschaft für Konsumforschung), the proportion 

of returnable packaging in Germany in 2001 fell to only 60.2%. This survey is an important early 

indicator of packaging developments in Germany and provides a relatively precise picture of the actual 

developments in returnable and nonreturnable packaging. Based on current regulations, a compulsory 

deposit of 0.25 € on a nonreturnable package in all beverage segments will have to be introduced at the 

latest in autumn 2002. The process of introduction of the compulsory deposit according to the VVO 

starts with the appellate administrative court in Berlin, which is currently hearing objections from 

opponents of the compulsory deposit.

A survey commissioned by the AGVU (Arbeitsgemeinschaft Verpackung and Umwelt e. V. 

[www.agvu.de]), the GfK, and the GVM that was produced by Roland Berger in 2001, showed the 

following results: 

� The proportion of returnable packaging will fall even more sharply with the compulsory deposit 

than without it. 

� Nonreturnable packages are increasing slowly but surely at the expense of returnable 

packaging. 

� The consumer does not see packaging as a key priority in the purchasing decision. 

� Retailing has clear economic advantages in nonreturnable packaging, which a compulsory 

deposit will strengthen. 

� Growing retail chains with an increasing market share promote nonreturnable packaging, while 

only 20% prefer returnables. 

� The recycling quota will increase, although only to a limited extent. 

� The compulsory deposit will require the construction of a complex new system of business 

relationships, e.g. automatons that take back nonreturnable packaging have to be installed 

nationwide. 

� Many critical organizational questions will not be solved by the introduction of a compulsory 

deposit, e.g. who will pay the additional costs that are inherent in the installation of return 

devices. 

The compulsory deposit will give rise to a need for investments in the order of 1.33 billion €, capital 

operating costs of 0.36 billion €, and annual costs of around 0.61 billion € for a packaging returns 

system; at least 76,000 return containers will be needed. 

The small and medium-sized brewery and beverages industries, as well as 70% to 80% of the German 

population according to surveys, demand the compulsory deposit on nonreturnable packages. 

The Deutsche Verpackungsinstitut e.V. (www.verpackung.org) is opposed to the introduction of a 

compulsory deposit. It argues that there is a serious danger that the current return system, which 

operates smoothly, could collapse because retailers cannot operate two different return systems 

alongside each other. Consumers will no longer be able to tell the difference between the returnable 

and nonreturnable systems. 

Because the household collection system (green dot) would not apply in the case of a compulsory 

deposit on nonreturnable beverage packaging, the DSD would become uneconomic due to falling 

license income, endangering the system for collection and recycling of all other types of packaging. 

The discussion as to whether the compulsory deposit will really be introduced or not is in full swing. 

However, it is already clear that a compulsory deposit would have far-reaching consequences for the 

whole of German industry. 

5.4 DUALES SYSTEM DEUTSCHLAND AG (THE GREEN DOT) 

Environmental protection in Germany remains of major importance: 57% of German citizens still want 

efforts to protect nature and the environment to increase in the future. About one-third want 

environmental protection efforts to be maintained at the same level. Only 4% of the population say that 

less should be done for the environment, because enough has already been accomplished. These are the 

key results of the latest “Ressourcenbarometer,” an annual survey commissioned by the Dual System 

and carried out by GfK.

Duales System Deutschland AG is a privately operated public limited company that is not listed on the 

stock exchange. It is organized as a nonprofit company on account of the purpose for which it was set 

up: The Dual System fulfills the obligations prescribed by the German Packaging Ordinance of 1991 

and its Amendment of 1998 on behalf of industry and commerce. As an umbrella organization for the 

recycling of consumer packaging, the company neither owns nor runs any sorting or recycling plants 

itself. Rather, it organizes the collection, sorting, and recycling of packaging in line with the 

specifications of the Packaging Ordinance with the support of 416 waste management partners 

throughout Germany. The objective of the company is to reduce and recycle consumer packaging. 

The Dual System was founded on September 28, 1990, in anticipation of the Packaging Ordinance, 

which came into force in 1991. Initially structured as a private limited company, it was converted into a 

public limited company in 1997. Today it has around 600 shareholders from industry and commerce. 

More than 19,000 licensees use the Green Dot and, in this way, finance the collection, sorting, and in 

the case of plastics, recycling of consumer packaging. License fees and hence company turnover 

amounted to around 2.05 billion € in 2000. 

The Dual System is a private initiative that takes over product responsibility in the consumer packaging 

sector. The term “dual” signifies a second system operating parallel to municipal waste collection and 

disposal. This is because the Packaging Ordinance requires the recycling of sales packaging to be 

organized by way of a separate nationwide system. The Product Recycling and Waste Management Act 

of 1994 also transfers responsibility for “waste for recovery” to the private waste management industry 

in other industrial fields, while the municipal residual waste collection and disposal system is 

responsible for “waste for disposal,” i.e. by means of landfilling and incineration. 

5.4.1 The Green Dot in Europe 

Organizations in 13 European states are now using the Green Dot scheme and mark: Austria, Belgium, 

Spain, France, Luxembourg, Portugal, Ireland, Norway, Sweden, Latvia, Hungary, and the Czech 

Republic as well as Germany. The Green Dot is establishing itself more and more firmly as a uniform 

European trademark. More than 460 billion pieces of packaging marked with the Green Dot are 

distributed worldwide. 

In 1995, Duales System Deutschland AG decided to transfer the right to use the trademark to a 

European organization in the form of a general license. To this end, it founded the Packaging Recovery 

Organization Europe s.p.r.l. (PRO EUROPE). Its task is to grant the right to use the Green Dot 

trademark to national collection and recovery systems on the basis of uniform rules and regulations. 

5.4.2 How the Dual System works 

The legal basis for the work of the Dual System is the Packaging Ordinance of June 12, 1991. In 

accordance with the legal regulations, the Dual System organizes the collection and sorting of postconsumer 

sales packaging on a private basis and arranges for it to be forwarded for recycling. 

The Packaging Ordinance requires the collection system for recyclable materials to be harmonized with 

existing municipal collection systems. This is why there are various collection and sorting systems 

throughout Germany. 

In principle, there are two basic systems for consumer packaging: the curbside system and the ‘bring’ 

system.

� In the curbside system, packaging manufactured from plastics, composites, aluminum, and 

tinplate is collected in yellow bins or yellow bags and picked up from households by Dual 

System waste management partners. Paper is also collected curbside in many regions. 

� In the ‘bring’ system, consumers take collected packaging to recycling stations or containers 

that have been set up near their homes. Glass, sorted according to color, and paper/cardboard 

are mainly collected in this way. 

At regular intervals, the containers are emptied or picked up by the Dual System waste management 

partners and transported to sorting or preparation plants. For lightweight packaging alone, there are 

around 250 sorting plants in which the waste is sorted into beverage cartons, aluminum, tinplate, and 

plastics (generally subdivided into bottles, films, polystyrene, and mixed plastics). 

The waste management companies market the sorted recyclable packaging and pass on the quantities to 

the so-called acceptance and recycling guarantors, who verify that the materials have been recycled. 

Materials that are not marketed by the waste management companies themselves are forwarded for 

recycling by the guarantors. 

The Dual System documents its collection and recycling performance in a so-called Mass Flow 

Verification, which has to be submitted to the environment ministries of each German federal state at 

the beginning of May each year as proof that the packaging has been properly collected, sorted, and 

recycled. 

The waste management services of the Dual System are financed by the license fees paid by the 

manufacturers or retailers for the use of the Green Dot. The fee structure takes into account the actual 

waste management costs and is governed by the material used, the weight of the packaging, and the 

number of items. 

In 2000, German consumers collected a total of 5,671,647 tons of used consumer packaging 

manufactured from glass, paper/cardboard, plastics, tinplate, aluminum, and composites in containers 

marked with the Green Dot. This corresponds to a collection quantity of 78.3 kilograms per person. 

(The above data is largely taken from the Web site: www.gruener-punkt.de) 

5.5 PLASTICS 

Packaging is the largest sector within the plastic processing industry. About one-third of all plastics are 

used for packaging material. In charge is the IK (Industrieverband Kunststoffverpackungen 

[www.kunststoffverpackungen.de]) with 250 members. In 2000, the plastic packaging industry 

comprised about 700 businesses with around 58,000 employees and a production value of about 8.49 

billion €. In 2000, almost 3 million tons of plastic packaging were produced, an increase in volume 

terms of 8.9%. Value rose by 13.4%. The increase was mainly due to foreign orders, which increased 

by 19% to 3.43 billion €, equivalent to about 40% of exports. This export share is based mainly on 

high-quality, high-tech products. 

The product range covers many types of products (packaging foils, cups, tins, carrier bags, bags, 

garbage bags, bottles, closures, tubes, spools, barrels, bulk containers, transport containers, bulk 

material containers, etc.); packaging foils and foil production make up the largest line of production. 

Plastic packaging is very popular, mainly because of its light weight, e.g. a PET (polyethylene 

terephthalate) bottle only weighs one-fifth or one-sixth as much as a glass bottle. The world’s largest 

manufacturer in this sector is Schmalbach-Lubeca AG.

Because of the low quantities of packaging materials needed to reach the desired effects, plastics 

considerably reduce the strain on the environment. (Of 14 million tons of packaging materials that are 

needed every year in Germany, only 11% by weight are represented by plastic materials, which in turn 

account for roughly 42% of all consumer-related products on the market.) An investigation carried out 

by the GVM showed that the substitution of plastics packaging material by other materials would 

increase the packaging weight fourfold and volume and cost twofold. The importance of plastics will 

no doubt continue to increase in the future. 

The trend toward PET packaging in the nonalcoholic beverages sector seems to be unstoppable. For the 

cola market, the PET share already makes up 71.8% (January to August 2001). The share in the water 

sector is still relatively low but is increasing rapidly: from 8.4% in January 1999 to 27% in July/August 

2001. A share of up to 60% might be possible for the near future in this sector. 

A more specific analysis of PET developments identifies the trend toward nonreturnable packaging. 

Regarding small packages (0.5 liter) the consumer prefers the PET bottle to the glass bottle or the can 

for convenience reasons. Regarding bigger packaging sizes (1.5 l and 2.0 l), the PET bottle is promoted 

by the large discounters. 

(The data is taken from the annual report 2000/2001 of the IK Industrieverband 

Kunststoffverpackungen e.V.) 


Turnover of German production of plastic packaging materials 1999 / 2000 

Amount Value in million € 

Plastic packaging 1999 2000 1999 2000 

Packaging foils (1,000 t) 1,252 1,339 2,993 3,460 

Carrier bags, bags, sacks (1,000 t) 401 399 863 968 

Cups, tins, cases and other. (1,000 t) 359 391 1,013 1,176 

Bottles, carboys (million pieces) 6,358 7,639 640 745 

Caps and closures (1,000 t) 200 213 780 871 

Sleeves, spools and coils (1,000 t) 91 103 377 448 

Drums, big container, barrels (million pieces) 454 624 604 692 

Other (1,000 t) 55 59 116 130 

Total* (1,000 t / million €) 2,706 2,947 7,386 8,490 

(Source: IK (Industrieverband Kunststoffverpackungen) and RG Verpackung) 

* The figures at the bottom of the “Amount” columns are not a sum of the figures in the columns. They represent an 

estimate of the total volume of production of all categories of product in tons, estimated by the IK

Turnover of German produced plastic foils, board, etc. 

1998 – 2000 

Amount in 1,000 t Value in million € 

Type of plastic 

1998 1) 1999 1) 

2000 2) 

1998 1) 

1999 1) 

2000 2) 

LD-PE 659.0 660.6 677.0 1201.54 1168.71 1320.72 

HD-PE 107.4 101.6 100.8 229.57 206.10 230.29 

PP 219.8 226.3 251.6 537.47 471.97 568.35 

PS 119.1 120.2 140.1 205.85 199.35 241.94 

PVC hard 220.0 235.0 251.8 536.40 441.71 616.21 

PVC soft 118.8 117.7 137.6 428.05 408.42 474.94 

PET 47.4 64.4 70.1 144.50 136.87 169.96 

PA 10.8 13.1 16.1 43.31 47.50 64.68 

PC 20.5 22.8 23.1 118.31 124.86 139.28 

Multilayer foils 318.6 331.2 336.0 1031.48 1019.87 1161.96 

Other plastics 3) 44.6 49.1 52.4 174.45 215.91 237.65 

Total 1886.0 1942.0 2086.6 4650.92 4441.29 5225.97 

1) 1998/99: final data 

2) 2000: provisional data 

3) IK-estimation 

(Source: Statistisches Bundesamt) 

5.6 PAPER AND BOARD 

On a European level paper and board packaging is well organized. The PPCG (Paper Packaging 

Coordination Group [www.cepi.org]) is probably one of the best-organized associations. The PPCG 

aims to facilitate the flow of information between the members of the European paper and board 

packaging sector. Its focus is on the implementation and revision of the European Packaging and 

Packaging Waste Directive and associated issues, including standardization. 

In Germany, there are currently no such associations on a national level, in contrast to the 

manufacturers of plastic packaging who are organized in a very specialized way in various 

organizations and associations. According to the annual report of the IPV (Industrieverband Papier) 

and Folienverpackung e.V., the turnover of all manufacturers of packaging material made of paper and 

board is 8.39 billion €. 

As to the whole paper industry in Germany, the VDP (Verband Deutscher Papierfabriken [www.vdponline.de], 

Association of German Paper Factories) is the most important association with 101 member 

companies, who have 133 production sites in Germany. 

The VDP represents 90% of production and turnover in the sector. In 2000, there was a turnover of 

12.78 billion €, and 182 million tons of paper, cartons, and boards were produced. Furthermore, there 

are 714,000 tons of cellulose, 75% of which are integrated and processed into paper and carton. 

Germany thus represents the biggest national paper industry in Europe.

The HPV (Hauptverband der Papier, Pappe and Kunststoffe verarbeitenden Industrie e. V. [www.hpvev.org]) 

is the main federal organization of the paper, board, and plastics processing industry in 

Germany. 

The great majority of the approximately 830 mainly small and medium-sized companies in the paper, 

board, and plastics processing industry in Germany are organized in 10 regional associations and 16 

specialist associations. A list of all the associations organized in the HPV can be found on the Internet 

at www.kartonagen.de/verbaende/hpv.html. 

Globalization has also affected the producers of paper and board packaging. Branded goods 

manufacturers who are operating globally are enforcing further cooperation and mergers and will 

change the structures of the medium-sized sector even more. Further cooperation and mergers will 

emerge. Furthermore, packaging producers are under pressure because of the concentration in retailing. 

On the raw material side, they are also faced with globally operating companies. 

As raw material costs absorb around 50% of the total production costs of flexible packaging, raw 

material prices are the decisive cost factor, even when all potential for reorganization is exhausted. To 

what extent these costs can be passed on to consumers depends on the development of the market and 

the economic situation of the packaging companies. 

According to a survey by the IPV, the turnover of the approximately 100 German manufacturers of 

flexible packaging/service packaging rose in 2000 by almost 5% from 1.08 billion € to 1.13 billion €. 

The volume of production increased in the period 1999/2000 by about 2%. 

The association of the corrugated board industry VDW (Verband der Wellpappen-Industrie e.V. 

[www.wellpappen-industrie.de]) represents 37 companies in the corrugated board industry with 99 

production sites in Germany, i.e. it represents more than 90% of local corrugated board production. 

16,786 employees (only VDW members) produced a turnover of 3.1 billion € in 2000. Exports were 

important as the export share was 40%. 

Future prospects include e-commerce where corrugated board is becoming increasingly important for 

the dispatch of goods. New areas of application are in the cosmetics sector, in direct competition to 

folded boxes. 

According to the association of the folded boxes industry, FFI (Fachverband Faltschachtel-Industrie), 

the industry achieved a turnover of 0.97 billion € in 1999. 

5.6.1 Packaging as a marketing tool 

The marketing function of packaging is becoming increasingly important due to the growing demand 

for brand identity and individuality. The potential for packaging is regarded as far from exhausted. The 

IPV shows the high effectiveness of service packaging in advertising. Service packaging is an effective 

and efficient advertising medium, offering almost unrivaled value for the money. 

The creative potential offered by bags is utilized differently in various sectors. For example, one sector 

uses the bag as an additional platform for job offers; another sector has used the striking effect of the 

bag to introduce the Euro as the future European currency with its coins and bank notes.


Key figures for the German paper, cardboard, and plastic processing 

industry 2000 

Turnover 13.86 billion € 


Paper and cardboard products with the following main categories: 8.6 million 

tons 

Packaging material made of paper, carton, and cardboard; paper 

towels and toilet paper; writing materials and office supplies; 

labels; wallpaper; bookbinding products; other paper and 

cardboard products 

(Source: HPV) 

Key figures for the German 

corrugated cardboard industry 2000 

Turnover 3.1 billion. € 

Employees * 16,786 

Companies 37 

Production sites * 99 

Export share 

*Only VDW 

(Source: VDW) 

40% 

Packaging material 

Sacks and bags made 

of paper 

Flexible packaging 

material 

Paper bags 

Value in 1,000 € 

1998 1999 2000 

439,433 426,980 461,995 

122,919 111,137 122,610 

241,635 235,683 242,052 

Corrugated cardboard 

products 

2,607,172 2,705,725 3,091,688 

Folded boxes 1,226,555 1,263,428 1,366,392 

Displays 213,973 227,144 247,736 

Fine and luxury paper 

board container 

Packaging made of 

solid fiber board 


110,681 108,847 109,867 

414,460 415,040 464,554

Packaging 

material made 

of paper and 

cardboard 

55% 

Production 

value 2000: 

13.2 billion € 


Paper processing production 

Other 

stationery 

8% 

Labels 

7% 

Bookbinding 

products 

2% 

Wallpaper 

3% 

Household and 

toiletry, 

stationery 

17% 

Writing 

materials and 

office supplies 

8% 

5.7 GLASS 

The German glass industry is the leader in Europe, based on production volume, according to data from 

the annual report of the Bundesverband Glasindustrie and Mineralfaserindustrie e.V. (www.bvglas.de). 

Within the German glass industry, glass packaging, with a production value of 1.43 billion €, had a 

share of about 5.5% in 2000. Glass packaging is manufactured in 34 factories, which have about 

10,000 employees. 

Glass as packaging material divides into beverage bottles and glass packaging for different sectors 

(among others, pharmaceuticals and cosmetics). In 2000, 17.5 billion glass packages of all kinds were 

produced. That is equivalent to a production of 4.3 million tons: 74% of total weight is made up by 

beverage bottles, 17% by glass jars, and 9% by packaging glass for the pharmaceutical industry, 

cosmetics, and other food products. 

During the last few years, the weight of glass has been reduced by about 65%, a sign of sustainable and 

intensive efforts for innovation. With special laminates, scratch- and abrasion-resistance and protection 

against corrosion and weathering are obtained. However, all these improvements still have not halted 

the decline in use of glass packaging for beverages. Competition, especially against the very popular 

cans as well as the lightweight PET bottles (see Plastics section), is intensive. 

A big advantage of glass in comparison to other packaging material is, in view of the strict rules of the 

German Packaging Ordinance (see section 5.2 above and section 6.2.1 below), that glass can be almost

fully recycled and is infinitely reusable. In 1999 the recycling quota of glass packaging was more than 

80% (in comparison to 1980: 23%). 

Some of the most important manufacturers in the glass packaging industry are the Gerresheimer Group 

(with a total turnover of 0.61 billion €), the BSN Glasspack Group, and Oberland Glas AG (a 

subsidiary of Saint Gobain). 

(Data taken from the annual report of the Bundesverband Glasindustrie and Mineralfaserindustrie e.V., 

differs from the data of GADV / RG Verpackung and annual report of IPV.) 


Key figures of the German Glass Packaging Industry 2000 

Companies number 34 

Employees number 10,030 

Turnover million € 1,433 

Share of export % 22.3 

1000 t 4,257 

Production 

million pieces 17,509 

The German glass packaging industry in 2000 

Glass jar/bottles production million pieces 17,509 

% 2000/1999 

+0.8 

Glass jar/bottles production 1000 tons 4,257 –2.3 

Beverage bottles 1000 tons 3,139 –3.1 

Glass jar 1000 tons 738 +0.4 

Packaging material for food, 

pharmaceutics and cosmetics 

1000 tons 379 –0.9 

Glass jar/bottles turnover 1000 tons 4,291 –0.8 

National 1000 tons 3,414 –3.3 

Export 1000 tons 877 +10.0 

Turnover million € 1,433 +1.6 

National million € 1,113 –0.5 

Export million € 320 +9.6 

Export share % 22.3 – 20.7 

Recycling of used glass 1000 tons 2,806 –1.4 

Recycling quota % of national 

turnover 

(Source: Fachvereinigung Behälterglasindustrie e.V., Düsseldorf) 

83.1 – 80.6

Share of glass packaging production 2000 

74% 

beverage bottles 

packaging glass 

for 

pharmaceuticals 

5% 

2% 

2% 

(Source: Fachvereinigung Behälterglasindustrie e.V., Düsseldorf) 

The glass packaging industry in Europe 

17% 


for cosmetics 

glass jars 


for food 

Country 

Production 2000 

1000 tons 

Share in % 

Germany 4,256 24.2 

France 3,826 21.7 

Italy 3,246 18.4 

Spain 1,967 11.1 

Great Britain 1,720 9.7 

Belgium, Netherlands, 

Ireland, Denmark, Norway, 

Sweden, Finland 

1,367 7.7 

Portugal 868 4.9 

Austria 310 1.8 

Greece 88 0.5 

EU total 17,648 100 

(Source: FEVE)

5.8 METAL 

According to the VMV (Verband Metallverpackungen), a turnover of about 4.09 billion € was achieved 

in 2000, with over 15,000 employees. 

The VMV is the German association of manufacturers of steel barrels, tin plate packaging for 

chemical-technical products, aerosol cans, food and luxury product cans, and beverage cans as well as 

glass jar- and bottle-closures. The VMV supports its members in all important German and European 

issues and acts as their representative on matters of joint concern. 

Around 50 companies belong to the VMV, with a total of about 10,000 employees and a turnover of 

more than 1.53 billion € in 2000. 

In 1999 the turnover of the metal packaging industry was 0.6% below the result of the previous year. 

No changes in the economic environment were registered in 2000. Cost pressure has noticeably 

increased, especially due to the enormous cost increases for materials and energy. 

While the manufacturers of steel barrels benefited from the increasing exports of the German chemicals 

sector in 2000, the manufacturers of tinplate packaging for lacquers, protective coatings for the 

construction industry, and glues registered no cyclical changes. Here the turnover was 0.8% below the 

previous year’s result. The main reason is still the slowdown in the building construction market. 

Aerosol cans showed no increase in sales for the first time in many years. The sale of food cans in the 

first half-year remained at about the same level as the previous year. Beverage cans continued to show 

a positive demand trend, with +11.2%. 

Developments in vacuum glass and bottle closures remained roughly at about the same level as in 

1999. 

The production and transport of metallic packages and closures have become significantly more 

expensive, especially due to increases in oil prices. Oil price increases together with the imposition of 

environmental taxes have imposed a cumulative cost pressure on large parts of the industry. Significant 

increases in costs have occurred above all for paints and lacquers, printing inks, transparencies, cartons, 

and especially for freight. There have also been further substantial price increases for various inputs 

such as steel and aluminum sheets, plastics, and gas. 

According to participants in the metal packaging sector, these costs have been met by drawing on funds 

set aside for reorganization. 

The recycling rate for tin in Germany in 2000 was around 78%. With a total tin consumption of around 

707,600 tons, this corresponds to a recycling quantity of 549,000 tons. 


Key figures for the German Metal Packaging Industry 2000 

Companies number 50 

Employees number 10,000 

Turnover billion € 1.53 

(Source: VMV [data refers to members of the VMV only])

Tinplate utilization in Germany 2000 in % 

Beverages 29 

Food and luxury goods 25 

Chemical-technical packaging 22 

Closures 12 

Pet food 9 

Other 8 

(Source: IZW-Informations Zentrum Weissblech) 

5.9 WOOD 

With a turnover of about 0.66 billion € in 2000 and a total of 5,129 employees, wood packaging ranks 

amongst the smallest sectors. A total of 34 million wooden pallets and 280,000 tons of wooden boxes 

were produced. The third important wood packaging area is cable drums and rope drums. 

The prospects for wood are good for the transport and storage sector. Transport damage occurs more 

often than is assumed: The insurance companies calculate a total of over 1 billion € per year for 

transport damage in Germany, and wooden packaging can help prevent this. 

According to the HPE (Bundesverband Holzpackmittel-Paletten-Exportverpackung e.V. 

[www.hpe.de]), the previously production-only sector is changing toward an all-embracing service 

sector. Offering full service starting with advice regarding the right choice of packaging material, 

production of the appropriate packaging materials, and the packaging and repair of products, taking 

back and recycling of packaging material, through to the organization of transport and storage, as well 

as the selection of products. Since transport without packaging and the accompanying service is no 

longer viable, companies are finding they must adjust to their customers’ demand for comprehensive 

service in the packaging and transportation chain. 


Key figures for the German wood packaging industry 1999 

Turnover 651 million € 

In Germany 596 million € 

Companies 122 

Employees 5129 

Export 56 million € 

Companies employing at least 20 people 


5.10 TRENDS 

2.26 billion beer cans are filled every year, but most beer is still bottled and barreled. PET is considered 

the packaging of the future because in the short term the compulsory deposit on all ecologically

harmful packaging is likely to be introduced in Germany. A deposit of 0.25 € (0.50 for 1.5 l upwards) 

will be charged on cans, nonreturnable glass bottles, and nonreturnable plastic bottles (PET). 

PET/PEN packages are increasing substantially. “Every fifth liter is already filled in a PET—still 

predominantly nonreturnable—package,” according to GfK. The development of PET’s share in the 

water sector, in particular, is described as “spectacular.” It made up a share of 12.2% in 2001, and in 

the first quarter of 2001 it reached a level as high as 17–18%. 

Last year lemonades made up a PET share of 56.9%, while “Schorle” (fruit juice with mineral water) 

had a share of 21.1%. Both sectors have an estimated two-digit growth rate. 

The variety of packages in the nonalcoholic beverages market will, according to experts, soon top the 

beer market. PET also can be used as a multipackage. Rexam Petainer, a bottle manufacturer, recently 

introduced the second PEN returnable beer bottle in the world, following the successful introduction of 

the first returnable bottle made of PEN plastic on the Danish market, by the Carlsberg Brewery. 

5.11 KEY PLAYERS 

According to Mrs. Bähr of the DVI (Deutsches Verpackungsinstitut e.V., German Institute of 

Packaging), it is rather difficult to classify key players for a certain material or a certain industrial 

sector because most companies offer different types of packaging. Competition is tough in the 

packaging supply industry. The following list of important companies is not representative but merely 

the personal opinion of Mrs. Bähr (based on a telephone interview). 

Plastic packaging: 

Schmalbach-Lubeca and SIG Pack 

Glass packaging: 

Oberland Glas AG (Saint Gobain), Gerresheimer Glas AG, Heinz Glas GmbH 

Metal packaging: 

Continental Can Europe (Schmalbach-Lubeca) 

Compound packaging: 

SIG Combibloc GmbH & Co.KG, Tetra Pak GmbH 

Paper and board packaging: 

Europa Carton AG, Meyr-Melnhof Karton GmbH, Edelmann GmbH & Co.KG, Verpackung + Display 

Stabernack Jr Partner GmbH & Co. 

Displays: 

Thimm Gruppe 

(www.verpackung.org, www.schmalbach.de, www.mueller-group.com, www.oberlandglas.de, 

www.gerresheimer.de, www.heinz-glas.com, www.sigpack.com, www.combibloc.com, 

www.tetrapak.de, www.thimm.de, www.europa-carton.de, www.edelmann.de, www.v-d.com) 

For further details about the packaging supplies industry see: 

www.verpackung.org, www.verpackungsrundschau.de

5.12 TRADE ASSOCIATIONS 

The following is a list of selected major trade associations in this sector. 

DEUTSCHES VERPACKUNGSINSTITUT E.V. 

German Packaging Institut 

BUND DEUTSCHER VERPACKUNGSINGENIUERE E.V. 

Association of German Packaging Engineers 

Gustav-Meyer-Allee 25 

13355 Berlin 

Tel: (49) 30 46307 401 

Fax: (49) 30 46307 400 

E-Mail: info@verpackung.org 

Web site: http://www.verpackung.org 

INDUSTRIEVEREINIGUNG FÜR LEBENSMITTELTECHNOLOGIE UND VERPACKUNG 

E.V. (IVLV) 

Industrial association for food technology and packaging 

and 

FORSCHUNGSGEMEINSCHAFT FÜR VERPACKUNGS- UND LEBENSMITTELTECHNIK 

E.V. (FoGe) 

Research group for packaging and food technology 

Schragenhofstr. 35 

80992 München 

Tel.: (49) 89 149009-0 

Fax.: (49) 89 149009-80 

E-Mail: office@ivlv.de 

Web site: http://www.ivlv.de 

RG VERPACKUNG im RKW 

Düsseldorfer Strasse 40 

65760 Eschborn 

Postfach 58 67 

65733 Eschborn 

Tel: (49) 6196 495 313 

Fax: (49) 6196 495 303 

E-Mail: rkw@rkw.de 

Web site: http://www.rkw.de

HAUPTVERBAND DER PAPIER, PAPPE UND KUNSTSTOFFE VERARB. INDUSTRIE e.V. 

(HPV) 

Paper & Board Processing Industry Association 

Strubbergstr. 70 

60489 Frankfurt/M. 

Tel.: (49) 69 9782 81-0 

Fax.: (49) 69 9782 81-30 

VERBAND VOLLPAPPE-KARTONAGEN e.V. (VVK) 

Solid Board Case Manufacturers Association 



Tel.: (49) 69 9782 81-0 

Fax.: (49) 69 9782 81-30 

FACHVEREINIGUNG DER DEUTSCHEN KARTONAGEN-INDUSTRIE e.V: (FKI) 

Cardboard Cases & Coated Cases Manufacturing Industry Association 



Tel.: (49) 69 9782 81-0 

Fax.: (49) 69 9782 81-30 

FACHVERBAND KARTONVERPACKUNGEN FÜR FLÜSSIGE NAHRUNGSMITTEL e.V. 

(FKN) 

Board Packages for Liquid Food Industry Association 

Sonnenberger Str. 43 

65191 Wiesbaden 

Tel.: (49) 611 1878 80 

Fax.: (49) 611 1878 855 

E-Mail: fkn@getraenkekarton.de 

Web site: http://www.getraenkekarton.de 

VERBAND DER WELLPAPPEN-INDUSTRIE e.V. 

Corrugated Board Industry Association 

Hilpertstr. 22 

64295 Darmstadt 

Tel.: (49) 6151 92940 

Fax.: (49) 6151 929430 

BUNDESVERBAND GLASINDUSTRIE UND MINERALFASERINDUSTRIE e.V. 

Glass Industry Association 

Stresemannstr. 26 

40210 Düsseldorf 

Tel.: (49) 211 168940 

Fax.: (49) 211 1689427 

E-Mail: info@bvglas.de 

Web site: www.bvglas.de

FACHVEREINIGUNG BEHÄLTERGLASINDUSTRIE e.V. 

Container Glass Industry Association 

Stresemannstr. 26 


Tel.: (49) 211 168940 

Fax.: (49) 211 1689427 

GESAMTVERBAND KUNSTSTOFFVERARBEITENDE INDUSTRIE e.V. 

Plastic Processing Industry Association 

Am Hauptbahnhof 12 

60329 Frankfurt/M 

Tel.: (49) 69 2710524 

Fax.: (49) 69 239835 

E-Mail: info@gkv.de 

Web site: http://www.gkv.de 

GESAMTVERBAND DER DEUTSCHEN ALUMINIUMINDUSTRIE e.V. 

Aluminum Processing Industry Association 

Postfach 105463 


Tel.: (49) 211 4796-0 

Fax.: (49) 211 4796-408 

VERBAND METALLVERPACKUNGEN e.V. (VMV) 

Tinplate or Aluminum Packaging Association 

Kaiserswerther Str. 135 


Tel.: (49) 211 45465-0 

Fax.: (49) 211 45465 - 30 

BUNDESVERBAND HOLZPACKMITTEL, PALETTEN, EXPORTVERPACKUNG e.V. 

(HPE) 

Wood Packages, Pallets, Export Packages Association 

Erste Fährgasse 2 

53113 Bonn 

Tel.: (49) 228 265246 

Fax.: (49) 228 265248 

E-Mail: office@hpe.de 

web: http://www.hpe.de

6. LEGISLATIVE ISSUES 

6.1 INTRODUCTION 

This section on regulations affecting the packaging industry makes no claim to completeness but is 

intended to provide an overview of the most important, relevant regulations currently applicable in 

Germany. In this section, we consider it important in some cases to reproduce the precise wording of 

the texts of certain key regulations. 

In the 1990s a legal framework for the obligatory taking back and recycling of packaging by industry 

and commerce was created in Germany for the first time. 

The Packaging Ordinance (see Section 6.2.1) of 1991 paved the way for further regulatory decisions, 

such as the German Product Recycling and Waste Management Act (see Section 6.2.2) as well as the 

European Packaging Directive (see Section 6.2.3), and provides the legal basis for the “Dual System” 

(see Sections 5.4 and 6.2.1.1) in Germany. The system is also based on legal decisions by federal, 

regional, and local courts. 

On December 20, 1994, EU Packaging Directive 94/62/EG was adopted at the European level by the 

European Parliament and Commission. 

Furthermore, in 1996 the principles for responsibility for products throughout the entire distribution 

and consumption chain in Germany were laid down in the German Product Recycling and Waste 

Management Act. 

With these national and European regulations, the concept of “sustainability” gained much greater 

significance than in the past, in both thought and action. 

The following sections examine the current regulations in greater detail. 

6.2 GENERALLY APPLICABLE REGULATIONS FOR THE GERMAN PACKAGING INDUSTRY 

6.2.1 Packaging Ordinance 

6.2.1.1 Background to the Packaging Ordinance 

The Packaging Ordinance (Packaging Ordinance, VerpackV) came into force in Germany on June 12, 

1991, and was revised in the summer of 1998. It has the objective of avoiding or reducing waste and of 

returning packaging raw materials to the production cycle. It obliges commerce and industry to accept 

back returned transport, storage, and consumer sales packaging and to recycle the materials. 

However, it also provided for relief from the obligation to accept back returned packaging with the 

introduction of a nationwide and household-oriented system for the collection, sorting, and recycling of 

used consumer packaging. This task has been undertaken by the Duales System Deutschland AG, a 

private-sector company, which fulfills the obligations from the Packaging Ordinance of 1991 and its 

1998 revision on behalf of commerce and industry. 

Because the company itself does not possess any sorting and recycling facilities, it is supported by 

some 400 waste disposal partners in Germany. The responsibility of the Dual System is to recycle 

waste as far as possible, i.e. to return recyclable materials to the production cycle. Only nonrecyclable 

components are sent for disposal.

For this waste treatment, the manufacturers pay a fee to the Dual System. However, the fee payers— 

now more than 18,500 firms—all complain that the costs are too high. 

From the beginning, the ordinance was very controversial. Only after the introduction of the Product 

Recycling and Waste Management Act, and with regard to necessary adjustments to bring it into line 

with the EU Packaging and Packaging Waste Directive, a revision was accepted in August 1998. This 

laid down higher quotas for the recycling of used consumer packaging, staggered according to the type 

of materials. The focus remains on the avoidance and recycling of packaging waste; also in the future 

manufacturers and distributors are obligated to take back the packaging and return it to the cycle as far 

as possible. 

The Dual System must present annual proof to the environment ministries of the German federal states 

that it has fulfilled its responsibilities in a proper way. Companies that do not participate in the Dual 

System are responsible for the taking back, recycling, and documenting of their own used consumer 

packaging, with the same recycling quota. As a result, several separate private waste disposal 

companies were established, and the Duales System Deutschland AG reduced its license fees. 

The ‘Grüne Punkt’ (Green Dot) (see section 5.4.1 above) now appears on consumer packaging not only 

in Germany but in 13 other countries as a symbol for the financing of collection, sorting, and recycling 

of packaging through the “Dual System” (see section 5.4.2 above). 

For packaging waste arising in households, collection is divided into two different systems. With the 

‘collect system’ on the one hand, packaging of plastic, composite materials, aluminum, and tin are 

placed by consumers into “yellow bins” or “yellow sacks” and collected directly from individual 

households by the waste disposal partners of the Dual System. In some places, paper is also collected 

in this way. With the ‘bring system,’ on the other hand, the collected packaging is brought by 

consumers to recycling centers or recycling containers, located in the vicinity of the household. Glass, 

sorted by color, and paper/cardboard/cartons are mainly collected in this way. 

6.2.1.2 Contents of the Packaging Ordinance of 1998 

Article 1 deals with the objectives of the Ordinance, as mentioned in the previous section. 

The purpose of this Ordinance is to avoid or reduce the environmental impacts of waste arising 

from packaging. Packaging waste shall in the first instance be avoided; reuse of packaging, 

recycling and other forms of recovery shall otherwise take priority over the disposal of packaging 

waste. By 30 June 2001, the share of all packaging waste being recovered shall be 65% by 

weight and the share being recycled shall be 45% by weight. The Federal Government shall 

conduct the necessary surveys. 

The Ordinance applies to all packaging put into circulation, regardless of its material and where it 

arises, insofar as it is not covered by any other special regulations. (Article 2) 

Manufacturers and distributors are obliged under Article 4 to accept returned transport packaging. 

Under Article 5 the distributor is responsible for the removal or return of secondary packaging. In all 

large German supermarkets, various containers are to be seen at the exits, in which the customers can 

immediately dispose of secondary packaging, sorted into paper and plastic, after paying for their goods. 

The following sections contain the precise text of the relevant Articles:

6.2.1.2.1 Article 4: Obligation to Accept Returned Transport Packaging 

(1) Manufacturers and distributors shall be obliged to accept returned transport packaging after 

use. In the context of repeated deliveries, such acceptance may take place at one of the next 

deliveries. 

(2) The returned transport packaging shall be reused or recycled insofar as is technically possible 

and economically reasonable (Article 5 (4) of the Closed Substance Cycle and Waste 

Management Act), and especially where a market for a recovered substance exists or can be 

created. In the case of transport packaging manufactured directly from renewable raw materials, 

energy recovery shall be deemed equivalent to recycling. 

6.2.1.2.2 Article 5: Obligation to Accept Returned Secondary Packaging 

(1) Distributors providing goods in secondary packaging shall be obliged to remove such 

secondary packaging upon delivery of the goods to the final consumer or to give the final 

consumer the opportunity to remove and return the secondary packaging free of charge at the 

point of sale or on the premises of the point of sale. (...) 

(2) If the distributor does not remove the secondary packaging himself, he shall be obliged to 

indicate, by means of clearly recognizable and legible signs at the cash desk, that the final 

consumer has the opportunity, either at the point of sale or on the premises of the point of sale, to 

remove the secondary packaging from the acquired goods and to leave it there. 

(3) The distributor shall be obliged to provide at the point of sale or on the premises of the point 

of sale suitable collection containers to accommodate the secondary packaging which are clearly 

visible and easily accessible to the final consumer. Individual material groups shall be collected 

separately insofar as this is possible without labeling. The distributor shall be obliged to consign 

secondary packaging to reuse or recycling. (...) 

The obligations for the taking back and recovery of consumer (sales) packaging are described in more 

detail. The manufacturers and distributors must accept back from the consumer free of charge used and 

emptied consumer packaging, at least in the immediate vicinity of the point of sale, in so far as they are 

not participating in a system guaranteeing the regular collection of used consumer packaging from 

private consumers, such as, for example, the above-mentioned Dual System (see section 5.4). 

6.2.1.2.3 Article 6: Obligation to Accept Returned Sales Packaging 

(1) The distributor shall be obliged to accept free of charge used and emptied sales packaging 

returned by the final consumer at or in the immediate vicinity of the place of actual transfer, to 

consign it to recovery in accordance with the requirements set out in No. 1 of Annex I, and to 

meet the requirements of No. 2 of Annex I. The recovery requirements may also be met by reuse 

or transfer to distributors or manufacturers pursuant to paragraph 2. The distributor shall be 

obliged to draw attention to the return facility mentioned in the first sentence by means of clearly 

recognizable and legible notices. The obligation under the first sentence shall be limited to 

packaging of such type, form and size and to packaging of such goods as the distributor supplies 

in his own product range. In the case of distributors with sales areas of less than 200 m 2 , the 

obligation to accept returned sales packaging shall be limited to the packaging of brands put into 

circulation by the distributor. In the mail-order trade, acceptance of returned packaging shall be 

ensured by means of suitable return facilities within reasonable distance of the final consumer. 

Attention shall be drawn to the return facility in the consignment of goods and in the catalogues.

Where sales packaging arises other than with private final consumers, different arrangements 

may be agreed regarding the place of return and the allocation of costs. If distributors do not meet 

the obligations pursuant to the first sentence by accepting returned packaging at the point of sale, 

they shall ensure compliance by means of a system pursuant to paragraph 3. (...) 

(2) Manufacturers and distributors shall be obliged to accept free of charge packaging returned 

by distributors pursuant to (1) at or in the immediate vicinity of the place of actual transfer, to 

consign it to recovery in accordance with the requirements set out in No. 1 of Annex I and to 

meet the requirements of No. 2 of Annex I. The recovery requirements may also be met by 

means of reuse. The obligation under the first sentence shall be limited to packaging of such type, 

form and size and to packaging of such goods as are put into circulation by the individual 

manufacturers and distributors. (1) eighth to tenth sentences shall apply with the necessary 

modifications 1 . 

(3) The obligations pursuant to paragraphs (1) and (2) shall not apply to packaging in respect of 

which the manufacturer or distributor takes part in a system which guarantees regular collection 

of used sales packaging from the final consumer or, to an adequate extent, in the vicinity of the 

final consumer throughout the catchment area of distributors subject to (1) and which meets the 

requirements specified in Annex I to this Ordinance. A system (system operator, applicant) 

pursuant to the first sentence shall consign the packaging entering such system to recovery in 

accordance with the requirements of No. 1 of Annex I and shall meet the requirements pursuant 

to Nos. 3 and 4 of Annex I. Evidence of participation in a system pursuant to the first sentence 

shall be furnished to the competent authority on demand. The system pursuant to the first 

sentence shall be coordinated with existing collection and recovery systems run by the public 

authorities responsible for waste management in whose area it is set up. Such coordination shall 

take place in writing between the system operator and the public waste management authority. 

Such coordination shall be a prerequisite for the pronouncement pursuant to the eleventh 

sentence 2 . Special attention shall be paid to the interests of the public waste management 

authorities. The public waste management authorities may demand the takeover or joint use, for a 

suitable fee, of facilities required for collecting and sorting materials of the type referred to in the 

Annex to this Ordinance. (...) 

(4) The system operator shall be obliged to bear a share of the costs incurred by the public waste 

management authorities as a result of giving waste management advice for his system and as a 

result of the creation, provision, maintenance and cleaning of areas for the siting of large 

collection containers. 

(...) 

(5) This provision shall apply to distributors of service packaging that is dispensed in artisanal 

food shops, with the provision that No. 2 (1) of Annex I shall not apply. The provision shall not 

apply to sales packaging of pollutant-containing products. (...) 

1 The legal text itself should be consulted, as the eighth, ninth, and tenth sentences do not appear in this report 

2 In fact Article 6 does not have 11 sentences, either in the English or in the German version

6.2.1.2.4 Annex to Article 6 

1. Requirements for Recovery of Sales Packaging 

(1) Manufacturers and distributors who are obliged to accept returned packaging pursuant to 

Article 6 (1) and (2) shall meet the recovery requirements set out in paragraphs (2) to (5) with 

regard to the packaging put into circulation by them during the calendar year. Applicants 

pursuant to Article 6 (3) shall meet the recovery requirements set out in paragraphs (2), (4) and 

(5) with regard to the packaging in respect of which manufacturers or distributors participate in 

their system. 

(2) On average for the year, at least the following quantities of packaging in % by weight must be 

consigned to recycling: 

From 1 January From 1 January 

Material 

1996 

1999 

Glass 70% 75% 

Tinplate 70% 70% 

Aluminum 70% 60% 

Paper, cardboard 60% 70% 

Composites 50% 60% 

(...) 

Plastic packaging must be consigned to recovery in at least the following quantities: 

From 1 January 1996: 50% 

From 1 January 1999: 60% 

At least 60% of this recovery quota shall be ensured by processes in which new material of the 

same substance is replaced or the plastic remains available for further use as a substance 

(materials oriented processes). (...) 

Where plastic packaging which is manufactured predominantly from biodegradable materials on 

the basis of renewable raw materials and of which all the constituents are compostable is 

collected in a separate system, at least 60% shall be consigned to composting with effect from 

July 2002. 

(...) 

(4) Packaging made from materials for which no definite recovery quotas are specified shall be 

consigned to recycling where this is technically possible and economically reasonable. In the 

case of packaging manufactured directly from renewable raw materials, energy recovery shall be 

deemed equivalent to recycling. 

(5) Notwithstanding (2), the quantity of packaging actually collected shall be consigned to 

recovery insofar as this is technically possible and economically reasonable. Otherwise it shall be 

disposed of in accordance with the principles of waste disposal commensurate with the public 

good pursuant to Articles 10 and 11 of the Product Recycling and Waste Management Act 

(Kreislaufwirtschafts- und Abfallgesetz); insofar as it is not disposed of in independent 

installations or if overriding public interests so require, it shall be transferred to the public waste 

management authorities.

2. General Requirements for Parties subject to Obligations pursuant to Article 6 (1) and (2) 

(1) Manufacturers and distributors obliged to accept returned packaging pursuant to Article 6 (1) 

and (2) shall furnish evidence of compliance with the acceptance and recovery requirements. To 

this end they shall by 1 May every year document in verifiable form the sales packaging put into 

circulation and returned and recovered in the preceding calendar year. Such documentation shall 

be drawn up in terms of weight, broken down by individual packaging materials. Reusable 

packaging shall not be included in the documentation. Cooperation between several 

manufacturers and distributors shall be permissible. Compliance with the acceptance and 

recovery requirements shall be certified by an independent expert in accordance with (2) on the 

basis of the documentation. The certificate shall be deposited by the relevant manufacturers and 

distributors with the body set up pursuant to Article 32 (2) of the Eco-Audit Act 

(Umweltauditgesetz). The certificate shall be presented on demand to the authority in whose area 

the manufacturer or distributor is based. Distributors with a sales area of less than 200 m 2 who 

are obliged to accept returned packaging pursuant to Article 6 (1) may invoke the certificate for 

the preceding distribution level. In the case of manufacturers and distributors with several 

branches, the sales area shall be the total area of all branches 

(...) 

3. General Requirements for Systems pursuant to Article 6 (3) 

(1) Systems pursuant to Article 6 (3) shall ensure that packaging is collected from private final 

consumers (“fetch systems”) or collected from the vicinity of private final consumers by means 

of suitable collection systems (“bring systems”), or by a combination of the two systems. The 

collection systems must be designed to ensure regular collection of all packaging covered by the 

system. Collection shall be confined to private final consumers. 

(2) Furthermore systems pursuant to Article 6 (3) shall ensure that collection of packaging also 

takes place from sites in the leisure sector where waste typically occurs. Such sites shall include 

in particular holiday complexes, leisure parks, sports stadiums, service areas and comparable 

facilities. 

(3) The applicant shall ensure that 

1. recovery capacity actually exists for the packaging entering the system, 

2. waste management services (collection, sorting, recovery) are offered for tender in a procedure 

that ensures the award of contracts on a competitive basis, 

3. the costs of collection, sorting and recovery or disposal of the individual packaging materials 

are disclosed, 

4. the packaging intended for recovery is transferred under competitive conditions, 

5. the evidence of participation in the relevant system required pursuant to Number 4 of this 

Annex is submitted, 

6. the materials recovery requirements set out in Number 1 of this Annex are shown to be met 

and 

7. in the event that operation of the system is discontinued, waste management of the packaging 

actually collected by the system’s collection facilities is guaranteed.

(4) The applicant shall furnish in verifiable form evidence of the quantities collected and the 

quantities consigned to recycling and to energy recovery. This shall show in verifiable form the 

quantities collected in the individual federal states. Such evidence shall be furnished by 1 May of 

the following year on the basis of the quantity of packaging input into the system as shown by the 

applicant, broken down by packaging materials. At the request of the application authority, the 

evidence shall be confirmed by an inspection report by an independent expert. The application 

authority may at the applicant’s expense perform an inspection of the evidence of recovery itself 

or have such inspection performed by a suitable institution. 

(5) The system operator may charge manufacturers and distributors who do not take part in this 

system for the cost of sorting, recovering or disposing of the packaging that is put into circulation 

by the latter and undergoes waste management by the system. 

4. Participation in Systems pursuant to Article 6 (3) 

(1) As a basic principle, packaging of products within the meaning of Article 7 may not be input 

into systems pursuant to Article 6 (3). The applicant may include such packaging in his system if 

manufacturers or distributors present prima facie evidence of its compatibility with the system in 

the form of an expert opinion by an independent expert, having regard to normal consumer 

behavior. Packaging that has at the time of entry into force of this Ordinance been included in a 

system pursuant to Article 6 (3) may remain in the system if manufacturers or distributors present 

prima facie evidence of its compatibility with the system by 1 January 2000. 

(2) The system operator shall furnish the participating manufacturers and distributors with 

confirmation of their participation in the system. Manufacturers and distributors shall indicate 

their participation by marking the packaging or by other suitable means. 

(3) The applicant shall by 1 May every year furnish the application authority with evidence of the 

extent to which manufacturers or distributors have input sales packaging into his system during 

the preceding year within the area of application of this Ordinance. Such evidence, broken down 

by packaging materials, shall be certified by an auditor. All packaging in respect of which the 

manufacturers or distributors take part in the system shall be deemed to have been input. 

(4) The application authority may at the applicant’s expense perform an inspection of the 

evidence itself or have such inspection performed by a suitable institution. Insofar as there is 

reason to fear that the inclusion of packaging in the system may result in adverse impacts on the 

public good, and especially on people’s health and well being, the application authority may 

demand that the applicant produce prima facie evidence of the compatibility of the relevant 

packaging with the system. The application authority may in individual cases prohibit the 

inclusion of the packaging if no prima facie evidence of its compatibility with the system is 

produced. 

The recovery of consumer packaging including products that contain pollutant materials is regulated by 

the following Article: 

6.2.1.2.5 Article 7 - Obligation to Accept Returned Sales Packaging of Pollutant-Containing Products 

(1) Manufacturers and distributors of sales packaging of pollutant-containing products shall be 

obliged by 1 January 2000 to take suitable measures to ensure that used and emptied packaging 

can be returned by the final consumer free of charge within a reasonable distance. They must 

draw attention to this return facility by means of clearly recognizable and legible notices at the 

point of sale, and in the mail-order trade by means of other suitable measures. Where sales

packaging arises other than with private final consumers, different arrangements may be agreed 

regarding the place of return and the allocation of costs. 

(2) The returned packaging shall be consigned to reuse or recovery insofar as is technically 

possible and economically reasonable. 

For liquid foodstuffs in drinks packaging that is not reusable, Article 8 requires the distributor to 

charge deposits to the purchaser. The same applies to detergents and cleaners as well as emulsion 

paints with a net weight of 2 kg or over. Article 9 provides for an exemption from this obligation again 

if the manufacturer or distributor participates in a recycling system, such as, for example, the Dual 

System. 

The Packaging Ordinance also deals with the manufacture, distribution, and labeling of packaging. 

According to Article 12, packaging is to be manufactured and distributed such that pack volume and 

weight are reduced to the minimum. Reuse or recovery should also be possible. The environmental 

impacts arising from the recovery or disposal of packaging waste are also to be minimized. 

This Ordinance and its Amendment implement European Directive 94/62/EG. 

6.2.2 Product Recycling and Waste Management Act 

6.2.2.1 Background to the Product Recycling and Waste Management Act 

The Waste Management Act of 1986 was replaced on October 7, 1994, in Germany by the Product 

Recycling and Waste Management Act (Kreislaufwirtschafts- und Abfallgesetz; KrW-/AbfG). The 

main objective of this Act is to avoid wastes, to ensure that unavoidable wastes are treated in a highvalue 

recycling process, and that nonrecyclable wastes are disposed of. Avoidance and recycling are 

thus in the foreground. 

Thus, since 1994 the existing obligatory product responsibility for packaging on the part of the 

manufacturer or processor now applies for all consumer and used products. 

6.2.2.2 Contents of the Product Recycling and Waste Management Act 

In the first two Articles of the Act, its purpose and area of application are laid down: 

6.2.2.2.1 Article 1 Purpose of the Act 

The purpose of this Act is to promote closed substance cycle waste management 

(Kreislaufwirtschaft) in order to conserve natural resources and to ensure environmentally 

compatible disposal of waste. 

6.2.2.2.2 Article 2 Area of Application 

(1) The provisions of this Act apply to: 

1. the avoidance, 

2. recovery and 

3. disposal of waste. 

(2) The provisions of this Act do not apply to:

1. materials that are to be disposed of pursuant to the Animal Carcass Disposal Act (Tier- 

Körperbeseitigungsgesetz) to the Meat-hygiene and Poultry-meat Hygiene Acts ( Fleisch- 

Hygienegesetz; Geflügelfleischhygienegesetz) to the Act on Foodstuffs and Commodities 

(Lebensmittel- and Bedarfsgegenständegesetz), to the Milk and Margarine Act ( Milch- and 

Margarinegesetz), to the Epizootic Diseases Act ( Tierseuchengesetz), to the Plant Protection Act 

( Pflanzenschutzgesetz) and pursuant to the statutory ordinances issued on the basis of these acts, 

2. nuclear fuels and other radioactive substances within the meaning of the Atomic Energy Act, 

3. substances whose disposal is regulated by a statutory ordinance issued on the basis of the 

Precautionary Radiological Protection Act ( Strahlenschutzvorsorgegesetz), 

4. waste occurring from prospecting, extraction, preparation, treatment and processing of mineral 

resources in facilities subject to mining inspection, except for waste not occurring directly and 

normally only in connection with the activities listed in the first half of this provision, 

5. gaseous substances not in containers, 

6. substances discharged or dumped into waters or the sewerage system, 

7. search for, recovery, transport, storage, treatment and destruction of warfare agents. 

In Article 4 the fundamental basis of the closed substance cycle is presented. In the first place, waste is 

to be avoided, in the second place material is to be recycled or used for the production of energy 

(energy recycling). Subsequent sections of the Act set out in more detail how this recycling (Article 5 

ff.) as well as socially acceptable waste disposal (Article 27 ff.) is to take place. 

According to Article 22, product responsibility is taken by whoever develops, manufactures, processes, 

or distributes products: 

6.2.2.2.3 Article 22 Product Responsibility 

(1) Parties who develop, manufacture, process and treat, or sell products have “product 

responsibility” for achievement of the aims of closed substance cycle waste management. In 

order to fulfill product responsibility, products must be so designed, if at all possible, so that 

waste production is reduced within their production and use, and that environmentally 

compatible recovery and disposal of the waste resulting from their use is ensured. 

(2) In particular, product responsibility comprises: 

1. the development, production and marketing of products that can be re-used, that are 

technically durable and that are suitable, after use, for proper and safe recovery and 

environmentally compatible disposal, 

2. priority for use of recoverable waste or secondary raw materials in the production of products, 

3. labeling of products containing pollutants, in order to ensure environmentally compatible 

recovery or disposal of the waste remaining after their use, 

4. provision of information concerning possibilities or obligations for return, re-use and recovery, 

and concerning deposit-payment arrangements, through product labeling, and 

5. acceptance of returned goods and of the waste remaining after their use, as well as the 

subsequent recovery or disposal of such products and waste.

(...) 

Article 23 empowers the federal government to determine whether, for example, packaging must 

demonstrate particular characteristics that guarantee its suitability for recycling or disposal, in order for 

its entry into circulation to be permitted. 

6.2.2.2.4 Article 23 Prohibitions, Restrictions and Labeling 

For definition of requirements pursuant to Article 22, the Federal Government is authorized, after 

hearing the parties concerned (Article 60), to mandate, by statutory ordinance and with the 

consent of the Bundesrat, that: 

1. certain products, especially packaging and containers with only certain characteristics or for 

certain uses, for which proper recovery or disposal of produced waste is ensured, may be put into 

circulation, 

2. certain products may not be put into circulation at all if, during management of their waste, the 

release of noxious substances cannot be avoided, or can be avoided only at disproportionately 

high expenditure, or if environmentally compatible management cannot be ensured by other 

means, 

3. certain products shall be put into circulation only in a certain form that clearly facilitates waste 

management, especially in a form that permits re-use or that facilitates recovery, 

4. certain products shall be marked/labeled in a specified manner, especially in order to assure 

fulfillment of basic obligations for acceptance of returned goods pursuant to Article 5 (labeling 

obligation), 

5. certain products, due to the content of a noxious substance in the waste expected to remain 

after their intended use, shall be put into circulation only if they are provided with 

marking/labeling which points out, in particular, the necessity of return to the manufacturer, 

distributor or specified third parties, in order to ensure the necessary special recovery or disposal, 

6. for certain products, for which obligations to accept returned goods, or to return goods, 

pursuant to Article 24, have been mandated, that the site of sale or putting into circulation must 

call attention to the possibility of returning the goods, or that the products must be appropriately 

labeled, 

7. certain products, for which levying of a deposit pursuant to Article 24 has been mandated, 

must be appropriately labeled; if necessary, such labeling must mention the amount of the 

deposit. 

Under Article 24, the federal government is also empowered to determine recovery and return 

obligations on manufacturers or distributors of particular products. 

6.2.2.2.5 Article 24 Obligation to Return Certain Goods and Obligation to Accept Returned Goods 

(1) For definition of requirements pursuant to Article 22, the Federal Government is authorized, 

after hearing the parties concerned (Article 60), to mandate, by statutory ordinance and with the 

consent of the Bundesrat, that manufacturers or distributors: 

1. may sell or put into circulation certain products only after providing the opportunity to return 

the pertinent goods

2. shall accept certain products when returned and shall provide for return, by suitable measures, 

especially by means of systems for accepting returned goods, or by levying a deposit, 

3. must accept certain products at the place where they are sold or where they occur, 

(...) 

The final general provisions include a statement that the federal government is empowered to issue 

statutory regulations in pursuance of its environmental policy goals. The resulting regulations, such as 

the Packaging Ordinance, must be based on the provisions of the Product Recycling and Waste 

Management Act and must be in accordance with its general principles. 

6.2.3 EU Packaging Directive 94/62/EG 

6.2.3.1 Background to the EU Packaging Directive of 1994 

After long negotiations between the EU Commission, EU Council of Ministers, and EU Parliament, the 

Directive on Packaging and Packaging Waste (94/62/EG) took effect on December 31, 1994. 

The conditions for and provisions of the EU Packaging Directive 94/62/EG were to be implemented in 

national law, which took place in Germany through the amendment of the Packaging Ordinance in 

1998. According to this, each member state of the European Union must take the necessary measures 

for the installation of recovery, collection, and recycling systems for used packaging. On the other 

hand, how these systems are to be organized is not laid down in concrete terms. 

6.2.3.2 Contents of the EU Packaging Directive 

The Directive has as its primary objective the harmonization of the regulations of the member states in 

the field of packaging and packaging waste: 

6.2.3.2.1 Article 1 Objectives 

(1) This Directive aims to harmonize national measures concerning the management of 

packaging and packaging waste in order 1) to prevent any impact thereof on the environment of 

all Member States as well as of third countries or to reduce such impact, thus providing a high 

level of environmental protection, and 2) to ensure the functioning of the internal market and to 

avoid obstacles to trade and distortion and restriction of competition within the Community. 

(2) To this end this Directive lays down measures aimed, as a first priority, at preventing the 

production of packaging waste and, as additional fundamental principles, at reusing packaging, at 

recycling and other forms of recovering packaging waste and, hence, at reducing the final 

disposal of such waste. 

The Directive covers all packaging and packaging waste: 

6.2.3.2.2 Article 2 Scope 

(1) This Directive covers all packaging placed on the market in the Community and all packaging 

waste, whether it is used or released at industrial, commercial, office, shop, service, household or 

any other level, regardless of the material used. 

(...)

The member states are called upon in Article 4 to ensure that, in addition to the measures to prevent the 

formation of packaging waste, other preventive measures are implemented to avoid waste in 

accordance with the objectives of the Directive. 

Article 5 permits member states to encourage reusable systems of packaging, which can be reused in an 

environmentally sound manner, in conformity with the Treaty. For example, this Article can be used 

for the establishment of quotas for the use of returnable drink containers. 

In order to comply with the objectives of this Directive, member states must, according to Article 6, 

take the necessary measures to set quotas and targets for the recycling of packaging waste. No later 

than five years from the date by which the Directive must be implemented in national law, the 

following targets for the recovery and recycling of waste, which are lower than those set out in the 

German Packaging Ordinance, must be reached: 

Recovery quota: 50%–65% 

Recycling quota: 25%–45% 

The minimum for recycling by weight for each packaging material is set at 15%. 

Lower recovery targets are set for the member states of Greece, Ireland, and Portugal. For countries 

such as Germany, it must be noted that, in the interests of environmental protection, higher national 

recovery quotas are permissible, if appropriate capacities for recycling and recovery are provided in the 

country, on condition that these measures avoid distortions of the internal market and do not hinder 

compliance by other member states with the Directive. 

6.2.3.2.3 Article 6 Recovery and recycling 

(1) In order to comply with the objectives of this Directive, Member States shall take the 

necessary measures to attain the following targets covering the whole of their territory: 

a.) no later than five years from the date by which this Directive must be implemented in national 

law, between 50% as a minimum and 65% as a maximum by weight of the packaging waste will 

be recovered. 

b.) within this general target, and with the same time limit, between 25% as a minimum and 45% 

as a maximum by weight of the totality of packaging materials contained in packaging waste will 

be recycled with a minimum of 15% by weight for each packaging material. 

c.) no later than 10 years from the date by which this Directive must be implemented in national 

law, a percentage of packaging waste will be recovered and recycled, which will have to be 

determined by the Council in accordance with paragraph 3 (b) with a view to substantially 

increasing the targets mentioned in paragraphs (a) and (b). 

(2) Member States shall, where appropriate, encourage the use of materials obtained from 

recycled packaging waste for the manufacturing of packaging and other products. 

(...) 

(5) Greece, Ireland and Portugal may, because of their specific situation, i.e. respectively the 

large number of small islands, the presence of rural and mountain areas and the current low level 

of packaging consumption, decide to: 

a.) attain, no later than five years from the date of implementation of this Directive, lower targets 

than those fixed in paragraph 1 (a) and (b), but shall at least attain 25% for recovery;

.) postpone at the same time the attainment of the targets in paragraph 1 (a) and (b) to a later 

deadline which, however, shall not exceed 31 December 2005. 

(6) Member States which have, or will, set programs going beyond the targets of paragraph 1 (a) 

and (b) and which provide to this effect appropriate capacities for recycling and recovery, are 

permitted to pursue those targets in the interest of a high level of environmental protection, on 

condition that these measures avoid distortions of the internal market and do not hinder 

compliance by other Member States with the Directive. Member States shall inform the 

Commission thereof. The Commission shall confirm these measures, after having verified, in 

cooperation with the Member States, that they are consistent with the considerations above and 

do not constitute an arbitrary means of discrimination or a disguised restriction to trade between 

Member States. 

In order to achieve the objectives of the Directive, according to Article 7, suitable systems are to be set 

up for return, collection, and recovery. These systems must also apply to imported products, which, 

however, are not to be placed at a disadvantage so that no barriers to trade or distortions of competition 

shall arise. 

6.2.3.2.4 Article 7 Return, collection and recovery systems 

(1) Member States shall take the necessary measures to ensure that systems are set up to provide 

for: 

a.) the return and/or collection of used packaging and/or packaging waste from the consumer, 

other final user, or from the waste stream in order to channel it to the most appropriate waste 

management alternatives; 

b.) the reuse or recovery including recycling of the packaging and/or packaging waste collected, 

in order to meet the objectives laid down in this Directive. 

These systems shall be open to the participation of the economic operators of the sectors 

concerned and to the participation of the competent public authorities. They shall also apply to 

imported products under non-discriminatory conditions, including the detailed arrangements and 

any tariffs imposed for access to the systems, and shall be designed so as to avoid barriers to 

trade or distortions of competition in conformity with the Treaty. 

(2) The measures referred to in paragraph 1 shall form part of a policy covering all packaging 

and packaging waste and shall take into account, in particular, requirements regarding the 

protection of environmental and consumer health, safety and hygiene; the protection of the 

quality, the authenticity and the technical characteristics of the packaged goods and materials 

used; and the protection of industrial and commercial property rights. 

According to Article 8, packaging within the meaning of the Directive is to be appropriately marked. 

However, the Council will only decide on the precise markings two years after the entry into force of 

the Directive (see Section 6.2.3.3). The markings serve to facilitate collection, recovery, and recycling 

and contain an indication of the type of packaging material used. 

6.2.3.2.5 Article 8 Marking and identification system 

(1) The Council shall, in accordance with the conditions laid down in the Treaty, decide no later 

than two years after the entry into force of this Directive on the marking of packaging.

(2) To facilitate collection, reuse and recovery including recycling, packaging shall indicate for 

purposes of its identification and classification by the industry concerned the nature of the 

packaging material(s) used. 

To that end, the Commission shall, not later than 12 months after the entry into force of this 

Directive determine, on the basis of Annex I and in accordance with the procedure laid down in 

Article 21, the numbering and abbreviations on which the identification system is based and shall 

specify which materials shall be subject to the identification system in accordance with the same 

procedure. 

(3) Packaging shall bear the appropriate marking either on the packaging itself or on the label. It 

shall be clearly visible and easily legible. The marking shall be appropriately durable and lasting, 

including when the packaging is opened. 

Three years from the date of the entry into force of the EU Packaging Directive, member states must 

ensure that packaging may be placed on the market only if it complies with all essential requirements 

defined by the Directive, including the requirements for the composition, and the recoverable, reusable, 

and recyclable nature of packaging. These requirements in Article 9 include the compliance of 

packaging with European harmonized standards as well as with relevant national standards going 

beyond these in so far as, in the areas covered by such standards, no harmonized standards exist. 

6.2.3.2.6 Article 9 Essential requirements 

(1) Member States shall ensure that three years from the date of the entry into force of this 

Directive, packaging may be placed on the market only if it complies with all essential 

requirements defined by this Directive including Annex II. 

(2) Member States shall, from the date set out in Article 22 (1), presume compliance with all 

essential requirements set out in this Directive including Annex II in the case of packaging which 

complies: 

a.) with the relevant harmonized standards, the reference numbers of which have been published 

in the Official Journal of the European Communities. Member States shall publish the reference 

numbers of national standards transposing these harmonized standards. 

b.) with the relevant national standards referred to in paragraph 3 in so far as, in the areas covered 

by such standards, no harmonized standards exist. 

(...) 

The Commission must promote under Article 10 the preparation of European standards for the 

requirements for the composition, and the recoverable, reusable, and recyclable nature of packaging. In 

particular the Commission must promote the preparation of European standards for 

� criteria and methodologies for life-cycle analysis of packaging, 

� the methods for measuring and verifying the presence of heavy metals and other dangerous 

substances in the packaging and their release into the environment from packaging and 

packaging waste, 

� criteria for a minimum content of recycled material in packaging for appropriate types of 

packaging, 

� criteria for recycling methods, 

� criteria for composting methods and produced compost, 

� criteria for the marking of packaging.

German business, in particular the Deutsche Verpackungsinstitut (DVI), is continuing to press for the 

retention of the German DIN standards. In Germany, technologies, testing facilities, and products have 

been oriented for decades toward the DIN standards, which have also proved their value. The German 

standards are much better developed than those of many of Germany’s European neighbors. Many ISO 

standards, the international counterpart to the DIN standards, are oriented toward the DIN standards. 

However, within the framework of European harmonization, it was decided to establish a European 

standards system, the CEN standards, which can be referred to in the legislation. This system will 

therefore gain statutory status in Germany and thus replace the established DIN standards. 

For packaging, “CEN/TC 261-Packaging” together with its working groups is the responsible 

department. This has resulted in a standards system that is not primarily oriented toward materials, 

products, test procedures, etc. (as is normal for DIN) but toward the fulfillment of the objectives of the 

EU Packaging Directive. 

We continue with the remaining content of the EU Packaging Directive: 

Under Article 15, the member states may, for any type of packaging or packaging material, adopt 

measures to implement recycling in accordance with the objectives of the Directive. Here, the member 

states have in theory a wide spectrum of measures to choose from, such as taxes, deposits, etc. 

Under Article 20, an exemption from the requirements of the Directive is possible in principle: 

6.2.3.2.7 Article 20 Specific measures 

(1) The Commission, in accordance with the procedure laid down in Article 21, shall determine 

the technical measures necessary to deal with any difficulties encountered in applying the 

provisions of this Directive in particular to primary packaging for medical devices and 

pharmaceutical products, small packaging and luxury packaging. 

(2) The Commission shall also present a report to the European Parliament and the Council on 

any other measure to be taken, if appropriate accompanied by a proposal. 

Equally, changes in the requirements of the Directive are possible, although the committee procedure 

laid down in Article 21 is relatively complicated: 

6.2.3.2.8 Article 21 Committee procedure 

(1) The Commission shall be assisted by a committee composed of the representatives of the 

Member States and chaired by the representative of the Commission. 

(2) The representative of the Commission shall submit to the committee a draft of the measures 

to be taken. The committee shall deliver its opinion on the draft within a time limit which the 

chairman may lay down according to the urgency of the matter. The opinion shall be delivered by 

the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council 

is required to adopt on a proposal from the Commission. The votes of the representatives of the 

Member States within the committee shall be weighted in the manner set out in that Article. The 

chairman shall not vote. 

(3) 

a.) The Commission shall adopt the measures envisaged if they are in accordance with the 

opinion of the committee.

.) If the measures envisaged are not in accordance with the opinion of the committee, or if no 

opinion is delivered, the Commission shall, without delay, submit to the Council a proposal 

relating to the measures to be taken. The Council shall act by a qualified majority. 

If, on the expiry of a period which may in no case exceed three months from the date of referral 

to the Council, the Council has not acted, the proposed measures shall be adopted by the 

Commission. 

6.2.3.3 Relevant amendments to the EU Packaging Directive 

This section examines the decision of the Commission (97/129/EG) dated January 28, 1997, for the 

establishment of a marking system for packaging materials according to the Directive 94/62/EG, with 

particular reference to Article 8, Paragraph 2: 

6.2.3.3.1 Article 1 

This Decision, which covers all packaging covered by Directive 94/62/EC aims to establish the 

numbering and abbreviations on which the identification system is based, indicating the nature of 

the packaging material(s) used and specifying which materials shall be subject to the 

identification system. 

6.2.3.3.2 Article 2 

For the purposes of this Decision: 

the same definitions set out in Article 3 of Directive 94/62/EC shall apply where relevant, 

composite: means packaging made up of different materials, and which cannot be separated by 

hand, none exceeding a given percent by weight which shall be established in accordance with 

the procedure laid down in Article 21 of Directive 94/62/EC. Potential exemptions for some 

materials may be established by the same procedure. 

6.2.3.3.3 Article 3 

The numbering and abbreviations of the identification system are as laid down in the Annexes. 

Their use shall be voluntary for the plastic materials mentioned in Annex I, the paper and 

fiberboard materials mentioned in Annex II, the metals mentioned in Annex III, the wood 

materials mentioned in Annex IV, the textile materials mentioned in Annex V, the glass materials 

mentioned in Annex VI, and the composites mentioned in Annex VII. 

A decision whether to introduce on a binding basis the identification system for any material or 

materials may be adopted in accordance with the procedure laid down in Article 21 of Directive 

94/62/EC. 

6.2.3.3.4 Article 4 

This Decision is addressed to the member states. 

The marking system is voluntary at least for the first stage, but subject to review in order to determine 

whether at a later stage a compulsory basis should be introduced. 

The marking system is to be reexamined at regular intervals, and amended where appropriate in 

accordance with the procedures laid down in Article 21 of the Directive 94/62/EG.

6.3 SPECIAL REGULATIONS FOR THE GERMAN PACKAGING INDUSTRY 

6.3.1 Generic regulations 

6.3.1.1 Food and Commodities Act 

The law governing trade in foodstuffs, tobacco products, cosmetics, and other commodities, the Food 

and Commodities Act (Lebensmittel- and Bedarfsgegenständegesetz - LMBG) comprises numerous 

sections and contains above all general prohibitions relating to trade with the above-named products or 

empowers the federal ministry to make new and additional regulations. 

The Food and Commodities Act deals with trade in foodstuffs, tobacco products, cosmetics, and other 

commodities. 

6.3.1.1.1 Food 

Article 8, Paragraph 3 says that it is forbidden to trade in products that could be mistaken for 

foodstuffs, to manufacture such items for others, or to process or bring into circulation items that, as a 

result of the possibility of mistaking them for foodstuffs, could result in a danger to health. This does 

not apply to medicines, which are subject to a licensing or registration procedure. 

The federal ministry is empowered under Article 9, for example for the protection of health, to 

prescribe warning notices, other warning devices, and safety measures for certain materials. 

Article 10 provides the federal government with powers to determine hygiene regulations in order to 

ensure the safety of foodstuffs from manufacture to the point of sale to the end consumer and to 

prevent harmful effects from e.g. micro-organisms, disturbances, odors, temperatures, weather, or 

damage caused by manufacturing or processing. Regional governments are empowered to introduce 

further ordinances covering areas within the terms of the Act that the federal government has not 

covered. 

Article 16 is very important for the packaging industry in this context. Under this Article, general 

provisions for statements regarding contents of additives and the use of permitted irradiation are 

regulated: 

� The content of additives and permitted irradiation is to be declared on the foodstuff; 

� The federal government is empowered to determine the form of declaration; 

� The federal government is also empowered to determine what further information about the use 

of additives in the product must also be declared. 

The Food and Commodities Act also contains a range of prohibitions to protect consumers from fraud. 

It is forbidden to: 

� Present the use of permitted additives or permitted irradiation in such a way as to disguise from 

the consumer the reduced quality or usability of a foodstuff; 

� To describe or advertise food containing permitted additives or permitted irradiation in such a 

way as to give the impression that it is natural or free of residues; 

� To bring foodstuffs into circulation with advertising or labeling designed to confuse the 

consumer. 

“Confusion” in this sense may arise in the case of false or unproven claims being made for the 

effectiveness of the product; if confusing indications of country of origin, weight, quantity, date of 

manufacture, etc., are made; or if the product is made up to look like a medicine.

6.3.1.1.2 Tobacco 

Paragraph 1 No. 5 of Article 17 applies in the same way to tobacco products. 

According to Article 18, it is forbidden, when selling foodstuffs or in advertising foodstuffs generally 

or individually, to use statements that suggest the curing, amelioration, or prevention of illnesses. This 

also applies to recommendations by doctors or statements by third parties. 

Article 19 also empowers the federal government to lay down which information must be stated on 

packaging, containers, or other coverings in which foodstuffs are put into circulation, in order to 

provide adequate information to the consumer. As well as covering general requirements regarding 

declarations of content, manufacturer, or distributor, it also provides for regulations for specific 

foodstuffs regarding: 

� Requirements that a particular foodstuff may only be sold in particular types of packaging or 

container; 

� Requirements that a particular foodstuff may only be sold in particular units of quantity; 

� Requirements for particular forms of declaration, e.g. packing date or minimum durability date 

or method of preparation; 

� Requirements for declarations of content on transport and other forms of intermediate 

packaging; 

� Requirements for the declaration of particular storage conditions. 

In Article 19a, the federal government is empowered to lay down that certain foodstuffs are to be 

marked with proof of the method of manufacture, its composition, or its contents—insofar as it is 

necessary for the protection of consumers. 

With regard to sales of tobacco products, Article 20 empowers the federal government to make 

provisions for statements of the contents of permitted substances. 

The federal government is also empowered under Article 21 to prescribe that in the sale of certain 

tobacco products or in advertising for them, statements must be made about the content of certain 

narcotic substances and warning notices or other warning symbols must be used. The government is 

also empowered to determine under what conditions statements may be used that make reference to the 

content of particular substances in certain tobacco products or in their smoke, especially nicotine or tar. 

According to Article 22, certain forms of advertising or labeling for the sale of tobacco products are 

prohibited: 

� Advertising or labeling giving the impression that smoking of tobacco products is harmless 

to health or has a positive influence on health; 

� Advertising or labeling aimed at influencing young people; 

� Advertising or labeling which implies that inhaling tobacco is an example to be followed; 

� Advertising or labeling which indicates that the tobacco product are natural. 

6.3.1.1.3 Cosmetics 

With respect to trade in cosmetic products, the two following Articles are of particular interest to the 

packaging industry: 

Article 27—Prohibitions against fraud—bans the use of confusing labeling or declarations on cosmetic 

products put into commercial circulation. “Confusion” may arise in the following cases: 

� False or unproven claims being made for the effectiveness of the product;

� Claims implying that the successful use of the product is guaranteed; 

� False claims regarding the identity and qualifications of the inventor or manufacturer; 

� Confusing indications of country of origin, weight, quantity, date of manufacture, durability, 

etc. 

Article 29 empowers the federal government to lay down regulations regarding the labeling or marking 

of cosmetic products, in particular the designation of the product and the name of the manufacturer or 

distributor. 

The fifth section of Article 32 contains further powers for the federal government in relation to trade in 

other goods in order to prevent dangers to health. It may be laid down that certain goods may only be 

put into circulation in packaging or containers and that warning notices, other warning symbols, safety 

measures, or instructions for what to do in an emergency are to be used. It can also be laid down that 

the contents of certain ingredients and restrictions on the use of certain goods must be declared. 

6.3.1.1.4 Imports and exports 

Regarding imports and exports, it must be mentioned that products covered by this Act that do not meet 

the food regulations applicable in the Federal Republic of Germany may not be used in the territory 

covered by the Act (Article 47 Paragraph 1). There are exceptions for products from the other member 

states of the European Community. 

For the export of products covered by the Act, under Article 50 the provisions of the Act also apply 

insofar as no different requirements apply for the relevant products in the country of destination and the 

products meet these requirements. 

6.3.1.2 Packaged Goods Ordinance 

In the Packaged Goods Ordinance dated December 18, 1981, last amended on September 1, 2000, the 

filling quantities and labeling of packaged goods are covered in great detail. The details of this 

Ordinance are presented in this section. 

6.3.1.2.1 First Section - Compulsory standardization and measured volume containers 

According to Article 3, measured volume containers manufactured for use in Germany must contain 

the following declarations on the base, the base seam, or the side of the bottle: 

1. the nominal volume in milliliters, centiliters, or liters, with the addition of the unit of 

volume; 

2. the “brim full” volume in centiliters without the addition of the volume unit, or the distance 

between the fill height corresponding to the nominal volume and the upper brim in 

millimeters, with the addition of the unit of volume; 

3. the manufacturer’s symbol (see Article 4 below); 

4. for bottles with a nominal volume of up to 50 milliliters, the letter “M”; above 50 milliliters 

up to 5 liters the symbol according to Annex 8. 

The above declarations must be indelible, easily visible, and clearly legible. They must be printed in at 

least the font sizes specified in Article 20 Paragraph 1. 

The above-mentioned designations may not be used on bottles that are not measured volume 

containers.

Article 4 deals with manufacturers’ symbols for use on measured volume containers. Such symbols can 

be applied for in writing from the “Physikalisch-Technische Bundesanstalt” (PTB, the German national 

institute of natural and engineering sciences, based in Braunschweig and Berlin), which may require 

the manufacturer to do the following: 

1. to amend the symbol applied for, in the event that it might be confused with another 

manufacturer’s symbol; 

2. to include additional figures and letters in the manufacturer’s symbol. 

Once approved, the manufacturer’s symbol is published by the PTB in a designated official journal. 

A manufacturer’s symbol approved by the PTB is equivalent to a manufacturer’s symbol approved in 

any other member state of the European Community or signatory state to the Agreement on the 

European Economic Area. 

6.3.1.2.2 Second Section - Fill quantity labels on packaging 

According to Article 6, packaged goods may only be put into commercial circulation if the fill quantity 

is declared by either weight or volume or pieces or some other measure. If the size of the declaration is 

not specifically laid down (in Articles 7 to 9), the size must correspond to what is customarily accepted 

in the trade. 

Imprecise declarations of fill quantity, ranges, or the additional declaration of gross weight are not 

permitted. 

If the packaging contains several packs of the same product, not intended for separate sale, the 

declaration must specify the total fill quantity and the number of individual packs. However, the 

number of individual packs need not be declared if they are easily visible and countable. 

If the packaging contains several packs of the different products, not intended for separate sale, or if the 

packaging contains several different types of product, the declaration must specify the quantities of 

each individual product. 

For multiple packs, in addition to declaring the fill quantity on the individual packs, the number and 

nominal fill quantity of the individual packs must also be declared on the external packaging. However, 

these additional declarations are not required if the individual packs are easily visible and countable 

and the fill quantity declarations on the individual packs can be identified. 

Article 7 deals with the labeling of the fill quantity for specific foodstuffs, as follows: 

� Packaging in aerosol form must carry a declaration by volume (in liquid form), even if the 

product would be specified by weight if presented in any other form; 

� Liquid foodstuffs are to be declared by volume, with the following exceptions that are to be 

declared by weight: 

- Honey, pectin, malt extract, and syrup for spreading on bread; 

- Milk products (with certain exceptions); 

- Vinegar; 

- Seasonings; 

� Other foodstuffs are to be declared by weight, with the following exceptions that are to be 

declared by volume: 

- Delicatessen sauces and mustard 

- Ice cream

� Concentrated soups, broth, cooking sauces, etc., must be declared in liters or milliliters of the 

ready-to-use product; 

� Baking powder and baker’s yeast must be declared according to the weight of the flour that 

the product in the packaging is sufficient to process; 

� Powdered desserts and similar products as well as dry mixes for purées, etc., must be 

declared according to the volume of liquid required for their preparation. 

Article 7 also deals with the labeling of the fill quantity for specific non-food products, as follows: 

� Cosmetics, detergents, and cleaners in liquid or paste form must be declared by volume (with 

the exception of soft soap, which is to be declared by weight); 

� The above products in solid or powder form must be declared by weight (with the exception 

of deodorants and refreshing sticks, which are to be declared by volume); 

� Adhesives are to be declared by weight; 

� Lacquers and paints are to be declared by volume; 

� Pet foods and bird foods can be declared by either weight or volume; 

� Photochemical products and chemical and technical standard and reagent materials can be 

declared in terms of the volume of ready-to-use material or the number of tests for which the 

product is sufficient. 

According to Article 8, fruit and vegetable products, wafers, and spices in packs of more than one unit 

may be declared in terms of the number of pieces, in cases where this is customary in the trade. The 

number of pieces can also be used in the case of the following products providing that the fill quantity 

is less than 100 grams: 

� confectionery and chocolate in the form of figurines, excluding pralines 

� long-life bakery goods with an individual weight exceeding 5 grams 

� chewing gum and similar items 

Sweeteners in tablet form must be declared in terms of the number of pieces. 

According to Article 9, declaration of the number of pieces is also permitted in the following cases: 

� cosmetics for single use (portion packs) as well as cosmetics where the declaration of weight 

or volume would be of no significance; 

� toilet and sink deodorant blocks weighing less than 50 grams; 

� car cleaning materials in portion packs; 

� pet foods and bird foods, where the number of pieces is the measure customarily used in the 

trade; 

� adhesive sticks; 

� paint sticks with a quantity of less than 50 milliliters. 

Article 10 states that the declaration in terms of the number of pieces is not required where all the 

pieces are visible and easily countable or where the product is customarily put into circulation only as 

individual pieces or pairs. 

The declaration of the fill quantity is not required in the case of the following packaged products: 

� Flavorings with a quantity of less than 10 grams or milliliters; 

� Vinegar and horseradish or mustard-based products with a quantity of less than 25 grams or 

milliliters;

� Sugar and sugar products; cocoa and cocoa products; powdered mixtures of nuts, almonds, 

etc., containing cocoa; long-life bakery goods and snacks with a quantity of less than 50 

grams; 

� Fine bakery goods with a quantity of 100 grams or less; 

� Ice cream with a quantity of 200 milliliters or less; 

� Bread in the form of small bakery goods where the individual pieces weigh 250 grams or 

less. 

Items for which the quantity declaration is not required under Article 10, when packed in multiple 

packs weighing a total of more than 100 grams, must carry a declaration of the number and fill quantity 

of the individual packs. 

In the case of solid foodstuffs packed in a preservative liquid, Article 11 states that the drained weight 

of the foodstuff must be declared on the packaging alongside the total fill quantity. Both quantities 

must be adjacent to each other, easily legible, and printed in the same font size. 

Article 18 deals with the method of fill quantity declaration. In general, this must be easily 

recognizable, clearly legible, and indelible. The following regulations apply to specific products: 

� For cosmetics comprising an inner and outer packaging, the fill quantity must be declared on 

both the inner and the outer packaging; 

� For packaged goods largely produced and filled by hand for immediate sale, the fill quantity 

may be declared on a sign on or beside the goods. 

For large wholesale packs of fresh fruit and vegetables, not for direct sale to the end-consumer, the fill 

quantity can be stated in the accompanying commercial documents. 

The following units of quantity must be used: 

� by weight: grams or kilograms 

� by volume: milliliters, centiliters, or liters 

� by length: centimeters or meters 

� by area: square centimeters or square meters 

The name or abbreviation of the unit of quantity must also be shown. 

The minimum font sizes to be used for fill quantity declarations are laid down in Article 20: 

Nominal fill 

quantity in Font size 

g or ml in mm 

5 to 50 2 

more than 50 to 200 3 

more than 200 to 1,000 4 

more than 1,000 6 

The following minimum font sizes are to be used on multiple packs as specified in Article 6: 

Nominal fill quantity 

of the individual packs Font size 

in g or ml in mm 

up to 50 3 

50 and more than 50 6

In the case of fill quantity declarations on packs of unequal size printed by means of a weighing 

machine, the font sizes must be in accordance with those specified in the Weights and Measures Act. 

Article 21 defines the circumstances in which the e-mark can be used on packaged goods. The e-mark 

must be printed in the same field of vision as the declaration of nominal fill quantity. 

6.3.1.2.3 Third Section - Fill quantities of packaged goods 

Packaged goods must carry the name or registered trade name and address of the manufacturer or 

distributor. According to Article 29, the declaration may be abbreviated or replaced by a symbol, so 

long as this enables the company to be identified by the responsible authorities. 

Exceptions to this regulation generally relate to cases where the product and its manufacturer can be 

identified in some other way, e.g. through a factory number (in the case of seeds) or a taxation number 

(in the case of tobacco products). 

6.3.1.2.4 Fourth Section - Special regulations for packaged goods with a fill quantity of less than 5 grams or 

milliliters or more than 10 kilograms or liters 

Article 30 covers packaged goods with a fill quantity of less than 5 grams or milliliters. These may be 

put into commercial circulation without any declaration of fill quantity, provided they are not covered 

by any other regulation requiring a declaration of quantity. 

Article 31 covers packaged goods with a fill quantity of more than 10 kilograms or liters. The 

provisions of this Ordinance do not apply in such cases with the following exceptions: 

1. Filling plants for the manufacture of packaged goods of the same nominal fill quantity are 

released from their calibration obligations where suitable scales are installed capable of 

sorting out and rejecting any packs falling below the fill tolerances specified in the following 

table: 

Nominal fill quantity acceptable minus deviation 

in kilograms in % of norm in grams 

or liters or milliliters 

10 to 15 150 

15 to 50 1.0 

50 to 100 500 

more than 100 0.5 

2. Packaged foodstuffs can only be excluded from the provisions of this Ordinance if the fill 

quantities are declared in the accompanying commercial documents and the goods are not 

intended for direct sale to end-consumers, or intended for use by end-consumers in their 

professional or commercial capacity. 

Packaged fruit and vegetables can only be put into commercial circulation when the minus deviation 

from the nominal fill quantity does not exceed the values stated in the table above. 

Packaged fertilizers and similar products can only be put into commercial circulation when the minus 

deviation from the nominal fill quantity does not exceed 3 percent. 

Packaged paints and lacquers with a nominal fill quantity up to and including 20 liters must carry a 

declaration of the fill quantity in accordance with Articles 6, 7 (5), and 18, and the manufacturer in 

accordance with Article 29.

6.3.1.2.5 Fifth Section - Open packs, unpacked bakery goods and sales units without packaging 

According to Article 31a, the provisions of this Ordinance apply equally to open packs that were not 

filled in the presence of the purchaser. 

According to Article 32, unpacked bread with a weight exceeding 250 grams may only be put into 

commercial circulation where the declaration of weight is easily recognizable and clearly legible on the 

bread or on a sign on or beside the bread. 

Article 33 states that the following items, when sold in units without packaging, may only be 

manufactured in such a way that on average the weight, length, or area at the time of manufacture does 

not fall below the nominal weight, nominal length, or nominal area: 

� bands, cords, and threads of all kinds, 

� wires, 

� cables, 

� tubes, 

� carpets, 

� flat textile products with a surface area exceeding 0.4 square meters, 

� nets and fabrics of all kinds. 

The above-mentioned sales units may only be put into commercial circulation when the declaration of 

weight, length, or area is easily recognizable and clearly legible. 

6.3.1.2.6 Sixth Section - Exceptions, exclusions, etc. 

According to Article 33a, the provisions of this Ordinance do not apply to: 

1. Packaged goods for use outside the territory covered by the Ordinance or for ships at sea, 

excluding goods carrying the e-mark; 

2. Packaged goods that cannot be labeled by weight, volume or length, and that are intended for 

use by end-consumers in their professional or commercial capacity; 

3. Free samples, labeled as such; 

4. Containers covered by the Weights and Measures Act. 

6.3.2 Food Labeling Ordinance 

According to the Foodstuffs Labeling Ordinance (Lebensmittel-Kennzeichnungsverordnung) of 

September 6, 1984, last amended on December 15, 1999, prepackaged food must contain the following 

labeling elements: 

� the name under which the product is sold 

� the name or business name and address of the manufacturer, packager, or seller 

� the list of ingredients 

� the date of minimum durability or the “use by” date 

� with respect to beverages containing more than 1.2% by volume of alcohol, the actual alcoholic 

strength by volume 

� the quantity of certain ingredients or categories of ingredients 

In view of its extreme importance and the detailed nature of its provisions, practically the entire 

ordinance in its current version is reproduced here.

6.3.2.1.1 Article 1 Area of application 

(1) This Ordinance concerns the labeling of foodstuffs in packages within the meaning of Article 

6 (1) of the Weights and Measures Act, intended to be delivered as such to the ultimate 

consumer (Article 6 of the Foodstuffs and Commodities Act). 

(2) This Ordinance does not apply to the labeling of foodstuffs in packages produced at the point 

of sale for future sale to the consumer, and which are to be given to the consumer there, but not 

in conditions of self-service. 

(3) The provisions of this Ordinance also do not apply to the labeling of 

1. cocoa and cocoa products, 

2. coffee and chicory extracts, intended for supply to the ultimate consumer within the meaning 

of Article 6 (2) of the Foodstuffs and Commodities Act, 

3. sugars within the meaning of the Sugar Ordinance, 

4. honey, 

5. (void) 

6. (void) 

7. flavorings, 

8. additives listed in Annex 2 of the Trade in Additives Ordinance, 

9. foodstuffs, insofar as their labeling is regulated according to Ordinances of the Council or the 

Commission of the European Communities. 

For dairy products regulated according to the Butter Ordinance, Cheese Ordinance or Dairy Products 

Ordinance, as well as for milk for consumption within the meaning of the Labeling of Milk for 

Consumption Ordinance, this Ordinance only applies insofar as the provisions of the aforementioned 

Ordinances declare them to be applicable. 

6.3.2.1.2 Article 2 Non-effect clause 

Regulations which provide for differing or additional labeling for particular pre-packaged foods 

from those provided for in this Ordinance, remain unaffected. 

6.3.2.1.3 Article 3 Labeling elements 

(1) Pre-packaged foodstuffs may only be put into commercial circulation when the following 

particulars are shown on the labeling: 

1. the name under which the product is sold as provided for in Article 4, 

2. the name or business name and address of the manufacturer or packager, or of a seller 

established within the Community or within another signatory country to the agreement on the 

European Economic Area, 

3. the list of ingredients as provided for in Articles 5 and 6,

4. the date of minimum durability as provided for in Article 7 or, in the case of foodstuffs which, 

from the microbiological point of view, are highly perishable, the “use by” date as provided for 

in Article 7a (1) to (3), 

5. with respect to beverages containing more than 1.2% by volume of alcohol, the actual 

alcoholic strength by volume as provided for in Article 7b. 

6. the quantity of certain ingredients or categories of ingredients as provided for in Article 8. 

(2) The indications referred to in Paragraph 1 No. 2 and 3 may not apply 

1. for individually packed confectionery figurines, 

2. for containers the largest surface of which has an area of less than 10 cm 2 , 

3. for glass bottles intended for reuse which are indelibly marked and which therefore bear no 

label, ring or collar, 

4. for packaging which contains various meals or parts of meals in fully marked packs and is 

intended to be used for charitable purposes. 

(3) The indications referred to in Paragraph 1 are to be marked on the pre-packaging or on a 

label attached thereto in a conspicuous place in the German language, easy to understand, clearly 

legible and indelible. The indications referred to in Paragraph 1 may also be given in another 

easily understandable language, if the information to the consumer is not thereby impaired. They 

may not be hidden, obscured or interrupted by other written or pictorial matter; the indications 

referred to in Paragraph 1 No. 1, 4 and 5 and the volume labeling referred to in Article 7 (1) of 

the Weights and Measures Act shall appear in the same field of vision. 

(4) In derogation from Paragraph 3 

1. the indications referred to in Paragraph 1 for 

a) ready-to-serve, portioned meals, intended to be supplied to mass catering establishments for 

consumption on the premises, 

b) pre-packaged foodstuffs which are to be put into circulation under the name or registered 

name of a seller with offices in a Member State of the European Community or in another 

signatory state of the agreement on the European Economic Area, at the time of delivery to this 

seller, 

c) pre-packaged foodstuffs, which are intended for sale to the end-consumer within the meaning 

of Article 6 Para. 2 of the Foodstuffs and Commodities Act, for preparation, processing, splitting 

or cutting up, 

2. the indications referred to in Paragraph 1 for meat in intermediate packaging, which are 

intended for sale to the end-consumer within the meaning of Article 6 Para. 2 of the Foodstuffs 

and Commodities Act, may be contained in the accompanying commercial documents, where it 

can be guaranteed that such documents containing all the labeling information either accompany 

the foodstuff to which they refer, or were sent before or at the same time as delivery. In the case 

of number 1a) the indications referred to in Paragraph 1 No. 3 may not apply. In the case of 

number 1b) and 1c) the indications referred to in Paragraph 1 No. 1, 2 and 4 are also to be 

declared on the external packaging of the foodstuff. In the case of Paragraph 2 No. 3 the 

indications referred to in Paragraph 1 No. 1 and 4 need not appear in the same field of vision.

(5) The indications referred to in Paragraph 1 may not apply in the case of: 

1. foodstuffs which are prepared shortly before supply to the end-consumer and are produced in a 

form suitable for immediate consumption 

a) in restaurants and mass catering establishments for the purpose of self-service, or 

b) for charitable purposes. 

2. long-life bakery products and confectionery, which are packaged on the sales premises for 

direct sale to the consumer, insofar as the information to the consumer regarding the indications 

referred to in Paragraph 1 is guaranteed in another way. 

(6) In derogation from Paragraph 3 in the case of bread rolls the indications referred to in 

Paragraph 1 can be displayed on a sign on or next to the goods. 

6.3.2.1.4 Article 4 The name under which a foodstuff is sold 

(1) The name under which a foodstuff is sold shall be the name provided for in the provisions 

applicable to it, or, in their absence: 

1. the name under which it is customarily sold, or 

2. a description of the foodstuff, and if necessary of its use, which is clear enough to let the 

purchaser know its true nature and distinguish it from other products with which it might be 

confused. 

(2) In derogation from Paragraph 1, the use of the sales name under which the product is legally 

manufactured and marketed in the Member State or other signatory state of the agreement for the 

European Economic Area where the goods are produced shall also be allowed. This sales name 

shall be accompanied by other descriptive information, if otherwise, in particular having regard 

to the other provisions of this Ordinance, the consumer would not be enabled to know the true 

nature of the foodstuff and to distinguish it from foodstuffs with which they could confuse it. The 

information under sentence 2 shall appear in proximity to the sales name. 

(3) Paragraph 2 does not apply if the foodstuff which it designates is so different, as regards its 

composition or manufacture, from the foodstuff known under that name that the provisions of 

Paragraph 2 are not sufficient to ensure correct information for consumers. 

(4) No trademark, brand name or fancy name may be substituted for the name under which the 

product is sold. 

6.3.2.1.5 Article 5 Determination of the term ingredient 

(1) “Ingredient” shall mean any substance, including additives, used in the manufacture or 

preparation of a foodstuff and still present in the finished product, even if in altered form. Where 

an ingredient of the foodstuff is itself the product of several ingredients, the latter shall be 

regarded as ingredients of the foodstuff in question. 

(2) The following shall not be regarded as ingredients: 

1. the constituents of an ingredient which have been temporarily separated during the 

manufacturing process and later reintroduced but not in excess of their original proportions,

2. additives listed in Annex 2 of the Trade in Additives Ordinance, flavorings, enzymes and 

micro-organism cultures, which were contained in one or more ingredients of that foodstuff, 

provided that they serve no technological function in the finished product, 

3. additives within the meaning of Article 11 Para. 2 No. 1 of the Foodstuffs and Commodities 

Act, 

4. solvents and carriers for additives listed in Annex 2 of the Trade in Additives Ordinance, 

flavorings, enzymes and micro-organism cultures, provided that they are used in no more than 

the technologically necessary quantities, 

5. extractive solvents. 

6.3.2.1.6 Article 6 List of ingredients 

(1) The list of ingredients shall include all the ingredients of the foodstuff, in descending order of 

weight, as recorded at the time of their use in the manufacture of the foodstuff. It shall appear 

preceded by a suitable heading which includes the word “Zutaten” (“ingredients”). 


1. added water and volatile products shall be listed in order of their weight in the finished 

product; the amount of water added as an ingredient in a foodstuff shall be calculated by 

deducting from the total amount of the finished product the total amount of the other ingredients 

used. This amount need not be taken into consideration if it does not exceed 5% by weight of the 

finished product; 

2. ingredients used in concentrated or dehydrated form and reconstituted at the time of 

manufacture may be listed in order of weight as recorded before their concentration or 

dehydration; whereby the listing of water used solely for reconstitution is not required; 

3. the water content need not be specified in the case of a liquid medium which is not normally 

consumed; 

4. in the case of concentrated or dehydrated foods which are intended to be reconstituted by the 

addition of water, the ingredients may be listed in order of proportion in the reconstituted 

product provided that the list of ingredients is accompanied by an expression such as “Zutaten 

des gebrauchsfertigen Erzeugnisses” (“ingredients of the reconstituted product”, or “ingredients 

of the ready-to-use product”); 

5. in the case of mixtures of fruit or vegetables where no particular fruit or vegetable 

significantly predominates in proportion by weight, those ingredients may be listed in another 

order provided that that list of ingredients is accompanied by an expression such as “in 

veränderlichen Gewichtsanteilen” (“in variable proportion”); 

6. a compound ingredient (Article 5 Para. 1 Sentence 2) may be included in the list of 

ingredients, under its own designation in so far as this is laid down by law or established by 

custom, in terms of its overall weight, provided that it is immediately followed by a list of its 

ingredients in descending order of weight, as recorded at the time of their use in the manufacture 

of the foodstuff. This listing is not compulsory when: 

a) the compound ingredient is a foodstuff for which a list of ingredients is not required or

) where the compound ingredient constitutes less than 25% of the finished product; however, 

this exemption shall not apply in the case of additives according to Annex 2 of the Trade in 

Additives Ordinance, enzymes and micro-organism cultures, with the exception of sodium 

iodate and potassium iodate; Paragraph 5 remains unaffected; 

7. coloring ingredients may be declared in any order. 

(3) Ingredients shall be designated by their specific name as provided for in Article 4. For 

additives listed in Annex 2 of the Trade in Additives Ordinance the declaration of the designation 

specified in column 6 of that Ordinance shall be sufficient as a designation. 


1. ingredients which belong to one of the categories listed in Annex I and are constituents of 

another foodstuff need only be designated by the name of that category; the designation “starch” 

must always be complemented by the indication of its specific vegetable origin, when that 

ingredient may contain gluten; 

2. additives in Annex 2 of the Trade in Additives Ordinance, which belong to one of the 

categories listed in Annex 2, with the exception of physically or enzymatically modified starches, 

must be designated by the name of that category, followed by their specific name or EC number; 

if an ingredient belongs to more than one of the categories, the category appropriate to the 

principal function in the case of the foodstuff in question shall be indicated; the designation 

“starch” must always be complemented by the indication of its specific vegetable origin, when 

that ingredient may contain gluten; apart from this, for chemically modified starches the 

declaration of the category name shall be sufficient. 

(5) With the use of flavorings, either the word “Aroma” (“flavoring”), a more specific name or a 

description of the flavoring is to be given in the list of ingredients. The word “natürlich” 

(“natural”) or any other word having substantially the same meaning may be used only in 

accordance with Article 4b of the Flavorings Ordinance. 

(6) Ingredients need not be listed in the case of: 

1. fresh fruit and vegetables, including potatoes, which have not been peeled, cut or similarly 

treated, 

2. beverages containing more than 1.2% by volume of alcohol, with the exception of beer, 

3. products comprising a single ingredient, where the trade name is identical with the ingredient 

name, or the trade name enables the nature of the ingredient to be clearly identified. 

6.3.2.1.7 Article 7 Date of minimum durability 

(1) The date of minimum durability of a foodstuff shall be the date until which the foodstuff 

retains its specific properties when properly stored. 

(2) The date of minimum durability shall be indicated in uncoded form with the words 

“mindestens haltbar bis ...” followed by the day, month and year in that order. The declaration of 

the day, month and year may also be stated elsewhere, if a reference to where the date is given 

on the labeling is provided in connection with the declaration according to the first sentence.

(3) In derogation from Paragraph 2 for foodstuffs, 

1. which will not keep for more than three months, the indication of the year is not required, 

2. 

a) which will keep for more than three months, the day, 

b) which will keep for more than 18 months, the day and the month are not required, 

if the date of minimum durability is indicated in uncoded form with the words “mindestens 

haltbar bis Ende ...”. 

(4) (Void) 

(5) If the minimum durability is only guaranteed with the observance of particular temperatures or 

other conditions, a description of these conditions is to be stated in connection with the declaration 

according to Paragraphs 2 to 4. 

(6) The indication of the durability date shall not be required for: 

1. fresh fruit and vegetables, including potatoes, which have not been peeled, cut or similarly treated. 

This derogation shall not apply to sprouting seeds and similar products such as legume sprouts, 

2. beverages containing 10% or more by volume of alcohol, 

3. soft drinks, fruit juices, fruit nectars and alcoholic beverages in individual containers of more than 

five liters, intended for supply to the end-consumer within the meaning of Article 6 (2) of the 

Foodstuffs and Commodities Act, 

4. individual portions of ice-cream, 

5. bakers’ or pastry cooks’ wares which, given the nature of their content, are normally consumed 

within 24 hours of their manufacture, 

6. cooking salt, with the exception of iodized cooking salt, 

7. solid sugar, 

8. confectionery products consisting almost solely of flavored and/or colored sugars, 

9. chewing gums and similar chewing products. 

Article 7a: “Use by” date 

(1) In the case of foodstuffs which, from the microbiological point of view, are highly perishable and 

are therefore likely after a short period to constitute an immediate danger to human health, the date of 

minimum durability shall be replaced by the “use by” date. 

(2) The date shall be preceded by the words “verbrauchen bis”, accompanied by 

1. either the date itself, or 

2. a reference to where the date is given on the labeling. 

These particulars shall be followed by a description of the storage conditions which must be observed. 

(3) The date shall consist of the day, the month and, possibly, the year, in that order and in uncoded 

form. 

(4) Foodstuffs covered by Paragraph 1 may no longer be placed in circulation after the expiry of the 

“use by” date. 

Article 7b: Alcohol content 

(1) The declaration of the available alcohol content is to be based on the alcohol content as determined 

at 20 degrees Celsius.

(2) The available alcohol content is to be declared in percent of volume up to a maximum of one 

decimal place. This declaration is to be followed by the symbol “% vol.”. The declaration can be 

preceded by the word “Alkohol” or the abbreviation “alc.”. 

(3) For the declaration of alcohol content, the deviations listed in Annex 3 are permissible. The 

deviations apply without prejudice to the tolerances which arise from the analysis method used for the 

determination of the alcohol content. 

Article 8: Quantity labeling of ingredients 

(1) The quantity of an ingredient or category of ingredients used in the manufacture or preparation of a 

foodstuff shall be stated in accordance with Paragraph 4, 

1. where the ingredient or category of ingredients concerned appears in the name under which the 

foodstuff is sold, 

2. where the name under which the foodstuff is sold implies that the foodstuff contains the ingredient 

or category of ingredients, 

3. where the ingredient or category of ingredients concerned is emphasized on the labeling in words, 

pictures or graphics; or 

4. where the ingredient or category of ingredients concerned is essential to characterize a foodstuff and 

to distinguish it from products with which it might be confused because of its name or appearance. 

Pre-packaged foodstuffs may not be placed in commercial circulation without the indications specified 

according to sentence 1. 

(2) Paragraph 1 shall not apply 

1. to an ingredient or category of ingredients, 

a) the drained net weight of which is indicated in accordance with Article 11 of the Pre-packaged 

Goods Ordinance, 

b) the quantities of which are already required to be given on the labeling under other regulations, 

c) which is used in small quantities for the purposes of flavoring, or 

d) which, while appearing in the name under which the food is sold, is not such as to govern the choice 

of the consumer because the variation in quantity is not essential to characterize the foodstuff or does 

not distinguish it from similar foods 

2. where specific provisions stipulate precisely the quantity of an ingredient or of a category of 

ingredients without providing for the indication thereof on the labeling; 

3. in the case of Article 6 Para. 2 No. 5. 

(3) Paragraph 1 No. 1 to 3 does not apply 

1. in the case of Article 9 Para. 2 and 3 of the Additives Registration Ordinance; 

2. for the declaration of vitamins or minerals, provided that a nutritional value labeling for this material 

is given. 

(4) The ingredient or category of ingredients expressed as a percentage, shall correspond to the quantity 

of the ingredient or ingredients at the time of its/their use in the manufacture of the foodstuff. The 

indication shall appear either in or immediately next to the name under which the foodstuff is sold or in 

the list of ingredients in connection with the ingredient or category of ingredients in question. In 

derogation from sentence 1: 

1. the quantity of an ingredient or ingredients used in the manufacture of a foodstuff from which liquid 

is extracted as a result of heat or other treatment is to be declared in accordance with its proportion in 

the application, with reference to the final product; if on this basis the quantity of an ingredient or the

total quantity of all ingredients declared on the label exceeds 100 percent by weight, the declaration 

shall be expressed in terms of the weight of the ingredient or ingredients used for the manufacture of 

100 grams of the final product; 

2. the quantity of non-permanent ingredients is to be declared in accordance with their proportion by 

weight in the final product; 

3. the quantity of ingredients within the meaning of Article 6 Para. 2 No. 2 can be declared in 

accordance with its proportion by weight before thickening or drying; 

4. for foodstuffs within the meaning of Article 6 Para. 2 No. 4 the quantity of ingredients can be 

declared in accordance with its proportion by weight in the product when re-constituted to its original 

condition. 

Sentence 3 No. 1 to 4 applies equally to categories of ingredients. 

(...) 

6.3.2.1.8 Annex 1 (to Article 6 Para. 4 No. 1) 

Ingredients which can be listed with their category name when they are an ingredient in another 

foodstuff 

Ingredient: Category name: 

Refined oils, “Oil” with the addition of: 

excluding olive oil 1. “vegetable” or “animal” or 

2. the specific vegetable or animal origin 

Hardened oil must also contain 

the additional declaration of “hardened” 

Refined fats “Fat” with the addition of: 

1. “vegetable” or “animal” or 

2. the specific vegetable or animal origin 

Hardened fat must also contain 

the additional declaration of “hardened”. 

“Flour”, followed by a listing of all the “Flour” 

types of cereal from which it is manufactured, 

in descending order of their proportion by weight 

Starches, physically modified or “Starch” 

enzymatically modified starches 

Fish of all kinds, when the designation or “Fish” 

presentation does not refer to any specific 

type of fish 

Cheese or cheese mixtures of all kinds, “Cheese” 

when the designation or presentation does not 

refer to any specific type of cheese

Spices of all kinds, provided that they do “Spice(s)” or “Mixed spices” 

not amount to more than 2 percent of the 

total weight of the foodstuff 

Herbs or parts of herbs of all kinds “Herbs” or “Mixed herbs” 

provided that they do not amount to more 

than 2 percent of the total weight of the foodstuff 

Base materials of whatever kind, to be used “Chewing gum mass” 

for the manufacture of chewing gum 

Breadcrumbs of whatever origin “Breadcrumbs” 

Saccharose of all kinds “Sugar” 

Glucose syrup and dried glucose syrup “Glucose syrup” 

Dextrose whether or not containing “Dextrose” 

crystallization water 

Milk protein of all kinds (casein, caseinate “Milk protein” 

and whey protein) and mixtures thereof 

Press cocoa butter, expeller cocoa butter, “Cocoa butter” 

refined cocoa butter 

Candied fruit of all kinds, provided that it “Candied fruits” 

does not amount to more than 2 percent of the 


Vegetable mixtures, which do “Vegetables” 

not amount to more than 10 percent of the 


Wine of all kinds within the meaning of the “Wine” 

regulations relating to the common market 

organization for wine of the European Community

6.3.2.1.9 Annex 2 (to Article 6 Para. 4 No 2) 

Categories of ingredients which must be designated by the name of their category: 

Color 

Preservative 

Antioxidant 

Emulsifier 

Thickener 

Gelling agent 

Stabilizer 

Flavor enhancer 

Acid 

Acidity regulator 

Anti-caking agent 

Modified starch (the specific name or EC number need not be indicated) 

Sweetener 

Raising agent 

Anti-foaming agent 

Glazing agent 

Emulsifying salts (only for processed cheeses and products based on processed 

cheeses) 

Flour treatment agent 

Firming agent 

Humectant 

Bulking agent 

Propellant gas 

6.3.2.1.10 Annex 3 (to Article 7 Para. 3) 

Product 

Beer with an alcohol content of up to 5.5% 

Permitted deviation +/– vol. 

vol. 

0.5 

Fermented beverages of grapes, which are 

not products within the meaning of the Wine 

Act 

Beer with an alcohol content of more than 

5.5% vol. 

Beverages similar to wine or to sparkling 

wine 

Sparkling fermented beverages of grapes, 

which are not products within the meaning of 

the Wine Act 

Beverages containing portions of fruits or 

1.5 

plants 

Other beverages 0.3 

1.0

6.3.3 Labeling of tobacco products 

The ordinance concerning the labeling of tobacco products and maximum quantities of tar in cigarette 

smoke (TabKTHmV) took effect in October 1991 and was last amended by means of the ordinance of 

March 6, 1996. 

This states in Article 2 that tobacco products in packaging must carry the general warning notice 

Rauchen gefährdet die Gesundheit (“Smoking damages health”). This general warning notice must be 

preceded by the words Die EG-Gesundheitsminister: (“The Health Ministers of the EC”). 

Cigarettes and tobacco for hand-rolled cigarettes must, according to Article 3, only be put into 

commercial circulation in packaging, if alongside the general warning notice they also carry one of the 

following specific warning notices: 

� Rauchen verursacht Krebs (Smoking causes cancer) 

� Rauchen verursacht Herz- and Gefäßkrankheiten (Smoking causes heart and arterial 

diseases) 

� Rauchen gefährdet die Gesundheit Ihres Kindes bereits in der Schwangerschaft (Smoking 

endangers the health of your child during pregnancy) 

� Wer das Rauchen aufgibt, verringert das Risiko schwerer Erkrankungen (Stopping smoking 

reduces the risk of serious diseases) 

Cigars, cigarillos, pipe tobacco, and other tobacco products for smoking with the exception of 

cigarettes and tobacco for hand-rolled cigarettes must carry one of the following specific warning 

notices: 

� Rauchen verursacht Krebs (Smoking causes cancer) 

� Rauchen verursacht Herz- and Gefäßkrankheiten (Smoking causes heart and arterial 

diseases) 

� Rauchen führt zu tödlichen Krankheiten (Smoking leads to fatal diseases) 

� Rauchen gefährdet die Gesundheit Ihrer Mitmenschen (Smoking endangers the health of 

others) 

The specific warning notices for cigarettes and hand-rolling tobacco must be used by the manufacturer 

in rotation. They must appear with equal frequency on all packaging put into circulation. Variations 

may not exceed 5%. On packaging for cigars, cigarillos, etc., the specific warning notices must be 

applied within one year in rotation in more or less equal proportions. 

According to Articles 5 and 6, the tar content and nicotine content contained in the smoke of one 

cigarette must be printed on the narrow side of the cigarette packet so as to be clearly legible on a 

contrasting background and must cover at least 4% of the relevant surface area. 

For cigarettes and hand-rolling tobacco, according to Article 6, the general warning notice must be 

applied on the most noticeable broad side of the packet. The specific warning notice must be applied on 

the other broad side on cigarette and hand-rolling tobacco packets. 

For cigarette packets both the general warning notice and the specific warning notice must each cover 

at least 4% of the surface area of the broad side to which they are applied. For tobacco products other 

than cigarettes, the general and specific warning notice must cover at least 1% of the total surface area 

of the packet. The warning notices must be clearly legible, printed in bold type, and on a contrasting 

background. They may not be printed on transparent foil or other outer wrapping paper covering the 

packet or applied in such a way that they can be destroyed on opening the packet, and they may not be 

covered, hidden, or separated by other statements or symbols.

6.3.4 Regulations regarding the chemical industry 

6.3.4.1 Labeling of medicinal products 

The labeling of medicinal products is regulated primarily by the German Drug Law, 

(Arzneimittelgesetz, AMG) originally passed on October 19, 1994, and revised several times since that 

date. 

The relevant sections of the Arzneimittelgesetz are §10, “Labeling of finished drugs,” and §12, 

“Powers in respect of drug labeling, package leaflets, and package sizes.” 

In particular, Paragraph 10 lays down the basic statutory information that must be displayed on 

pharmaceutical packages. This paragraph is cited in full. 

Paragraph 10 Labeling of finished drugs 

(1) Finished drugs (...) may only be marketed within the purview of this law provided that the 

following particulars are displayed on the containers and, if used, on the outer packages, in easily 

legible and indelible characters, intelligibly in German language: 

1. the name or the company and the address of the pharmaceutical undertaking, 

2. the name of the drug; if the drug is placed on the market in different pharmaceutical forms 

or strengths, the name of the drug shall be followed by information on the pharmaceutical 

form, the strength, or the group of persons the drug is intended for unless this information is 

already included in the name. 

3. the marketing authorization number with the abbreviation “Zul.-No.”, 

4. the batch identification if the drug is placed on the market in batches, with the abbreviation 

“Ch.-B.”, if it cannot be marketed in batches, the date of manufacture, 

5. the pharmaceutical form, 

6. the content by weight, volume or number of pieces, 

7. the method of administration, 

8. the pharmaceutically active constituents by type and quantity, and other constituents by type 

as far as this is imposed in the conditions issued by the competent federal higher authority 

pursuant to §28 para 2 sub-para 1 or prescribed by ordinance pursuant to §12 para 1 subpara 

4 or §36 para 1; all constituents by type as far as drugs are concerned which are 

intended for injection of for topical use, including drugs which are intended for the use on 

the eyes., 

8a. In the case of drugs manufactured by using genetic modification, the active substance and 

the designation of the micro-organism or the cell line which have been genetically modified 

during the manufacturing process, 

9. the expiry date with the instruction “ use by”, 

10. in the case of drugs which may only be supplied upon prescription by a physician, dentist or 

veterinarian, the indication “Verschreibungspflichtig” (prescription-only;, in the case of

other drugs which may only be supplied to consumers in pharmacies, the indication 

“Apothekenpflichtig” (pharmacy-only), 

11. in the case of samples, the indication “unverkäufliches Muster” (sample-not for sale), 

12. the indication that drugs shall be kept out of reach for children unless they are curative 

waters, 

13. specific precautions for the disposal of drugs which have not been used as far as necessary. 

Insofar as the declarations provided for in para. 1 are also given in another language, the 

declarations in this language must be identical. Further declarations are permissible, providing 

that they are connected with the application of the drug, are important for health information, 

and do not contradict the declarations provided for in § 11a. 

(1a) For drugs containing only one active ingredient, the declaration provided for in para. 1 subpara. 

2 must contain the designation of this ingredient with the indication “Wirkstoff:” (“Active 

ingredient:”); this does not apply when the designation of the active ingredient provided for in 

para. 1 sub-para. 8 is contained in the declaration provided for in para. 1 sub-para. 2. 

(2) Furthermore, warning information, storage information for the consumer, and storage 

information for professional users are to be stated, insofar as this is necessary according to the 

current state of scientific knowledge or according to conditions issued by the competent federal 

higher authority pursuant to §28 para. 2 sub-para 1 or prescribed by ordinance. 

(3) For sera, the type of organism from which they are obtained, and for virus vaccines the host 

system serving for virus reproduction, are to be stated. 

(4) For drugs which have been registered in the register for homeopathic drugs, in the 

designation provided for in para. 1 sentence 1 no. 2 the indication “Homöopathisches 

Arzneimittel” (“Homeopathic Drug”) must be stated. In place of the declarations provided for in 

para. 1 sentence 1 No. 3, the register number is to be stated with the abbreviation “Reg-No.”. 

Statements of areas of application may not be made. (...) 

Sentences 1 and 3 to 5 apply equally to drugs which are released from the obligation to be 

registered under § 38 para. 1 sentence 3. Drugs which have been manufactured according to a 

homeopathic process technology and have been authorized under § 25, must be labeled with an 

indication of their homeopathic nature. 

(5) For drugs intended for use with animals, the following additional declarations must be 

made: 

1. the indication “Für Tiere” (“For animals”) and the type of animals for which the drug is 

to be applied, 

2. the time between administration of the drug and the slaughter of the animal for 

consumption, insofar as it is a drug intended for use with animals intended for human 

consumption; if the observance of a delay between administration of the drug and the 

slaughter of the animal for consumption is not required, this fact is to be stated,

3. the indication “Nicht bei Tieren anwenden, die der Gewinnung von Lebensmitteln 

dienen” (“Not to be used for animals intended for human consumption”), insofar as the 

drug is intended exclusively for use with animals not intended for human consumption, 

3a. the indication “Nur durch den Tierarzt selbst anzuwenden” (“Only to be used by the 

veterinary physician”), insofar as this has been prescribed by ordinance according to § 

56a para. 3 No. 2, 

4. for pre-mixed drugs the indication “Arzneimittel-Vormischung” (“Pre-mixed drug”). 

In the declaration provided for in para. 1 sentence 1 No. 2, in place of the group of persons the 

type of animal is to be stated. In derogation from para. 1 sentence 1 No. 8, the active ingredients 

are to be stated according to type and quantity. 

(6) The following applies to the designation of ingredients: 

1. For the designation of type, the short international designations of the World Health 

Organization or, if these are not available, common scientific designations are to be 

used. The Federal Government is empowered to determine individual designations (...). 

2. For the designation of quantity, units of measurement are to be used; if biological units 

or other declarations of valency are in common scientific use, these are to be used. 

(7) The expiry date is to be given by month and year. 

(8) Pushout packages are to be printed with the name or the registered name of the 

pharmaceutical undertaking, the name of the drug, the batch identification and the expiry date. 

The declaration of the name and registered name of a parallel importer is not necessary. For 

containers of not more than ten milliliters capacity and for ampoules containing only one single 

unit, the declarations provided for in para. 1 to 5 are only required to be made on the external 

wrappings; however at least the declarations provided for in para. 1 No. 2, 4, 6, 7, 9 as well as 

in para. 3 and para. 5 No. 1 must be provided on the containers and ampoules; suitable 

abbreviations may be used. (...) 

(9) For the declarations provided for in para. 1 to 5, abbreviations commonly used in the 

pharmaceuticals trade may be used. The name of the firm provided for in para. 1 No. 1 may be 

abbreviated, so long as the company is generally identifiable by the abbreviation. 

(10) For drugs intended for clinical trial or residue testing, para (1) sub-paras 1, 2 and 4 to 7 as 

well as paras 8 and 9 shall be applicable, inasmuch as they are relevant. Drugs intended for 

clinical trial shall be labeled ,Zur klinischen Prüfung bestimmt” (for clinical trial) and drugs 

intended for residue testing shall be labeled ,Zur Rückstandsprüfung bestimmt” (for residue 

testing). As far as an authorized drug shall be labeled “Zur klinischen Prüfung bestimmt” (for 

clinical trial) pursuant to sentence 2, it shall bear a name that is different from the authorized 

designation and shall refrain from using the name under which the drug is authorized. Pushout 

packages shall be given with the name and the batch designation; sentences 2 and 3 shall apply 

accordingly. 

Paragraph 11 of the Drug Law defines the information required to be printed on the package leaflet. 

Paragraph 11a lays down the information to be provided in the “Information sheet for experts” for use

y physicians and other medical professionals. These are not discussed further as they are not directly 

relevant to packaging. 

Paragraph 12 defines a series of further powers of the federal government with respect to labeling and 

package sizes, as well as the content of package leaflets. 

Paragraph 12 Powers in respect of drug labeling, package leaflets, and package sizes 

(1) The Federal Government is empowered (...) 

1. to extend the provisions of §§ 10 to 11a to other drugs (...), 

2. to require that the declarations mentioned in §§ 10 and 11 are to be conveyed to the user in 

other ways, 

3. to require for particular drugs or groups of drugs that warning notices, warning signs or 

identification signs are to be provided on: 

a) the containers, the external wrappings, the package leaflet, or 

b) the information sheet for experts, 

4. to specify the way in which particular ingredients are to be declared on the containers 

and the external wrappings or mentioned in the package leaflet, 

insofar as this is necessary to ensure orderly dealing with drugs and their appropriate use within 

the territory covered by this law, and to prevent any direct or indirect threat to the health of humans 

or animals, which could occur as a result of a lack of information. 

(1a) The Federal Government is further empowered (...) to permit the use of summarized 

designations for materials or preparations of materials in the declaration on containers and external 

wrappings (...), insofar as these materials are not active ingredients and there is no direct or indirect 

threat to the health of humans or animals as a result of a lack of information. 

(...) 

(3) The Federal Government is further empowered (...) to determine that drugs may only be put into 

circulation in specific package sizes, and labeled accordingly by the pharmaceutical undertaking on 

the containers or, where used, on the external wrappings. The determination of these package sizes 

takes place for particular active ingredients and takes into account the areas of use, the duration of 

use and the pharmaceutical form. In the determination of package sizes, a three-way division is to 

be used: 

1. Packages for a short duration of use or tolerance tests, 

2. Packages for a medium duration of use, 

3. Packages for a longer duration of use.

With further reference to medicinal products, the three European Directives 90/385/EWG, 93/42/EWG, 

and 93/68/EWG were transposed into German law in 1994 with the Medicines Act 

(Medizinproduktegesetz, MPG), which among other things regulates the use of the CE symbol. This 

law has the objective of regulating trade in medicinal products and thus ensuring the safety, suitability, 

and quality of medicines as well as the health and necessary protection of patients, users, and third 

parties (Article 1). 

In general, according to Article 6 medicinal products may only be put into circulation or use in 

Germany if they carry a CE symbol. Symbols or markings that could be confused with the CE symbol 

may not be used. All other symbols on the packaging are permitted, as long as they do not inhibit the 

visibility and legibility of the CE symbol. 

Furthermore, the CE symbol must be printed in a clearly visible, clearly legible, and permanent form 

on the medicine, the retail packaging, and the usage instructions. The identification number of the 

office that granted permission for the application of this symbol must also be shown. (Article 9). 

The size and shape of the CE symbol is laid down in Appendix XII of the European Union Directive 

93/42/EWG and is standard through the EU. 

6.3.4.2 Labeling of cosmetics products 

On the packaging of cosmetics products, alongside important information notices or user tips, the 

ingredients must be listed. In order to achieve Europe-wide uniformity in labeling, the EC Cosmetics 

Directive of 1998 requires the listing of all ingredients in body care products. The use of identical 

names within the European Union makes the use of cosmetics products easier for the consumer. This 

applies in particular for those suffering from allergies. 

According to the Directive, all ingredients used in the manufacture of a cosmetics product and still 

present in the final product must be listed. These are stated in decreasing order of concentration. The 

listing begins with the word “Ingredients.” Ingredients making up less than 1% of the total appear in no 

particular order at the end of the list. 

The labeling must be clearly visible on the outer packaging or directly on the product container. 

6.3.4.3 Labeling of detergents and cleaners 

The labeling of detergents and cleaners is regulated by the Detergents and Cleaners Act (Wasch- and 

Reinigungsmittelgesetz, WaschMG) of 1987, last amended in 2001. 

According to Article 7, detergents and cleaners may only be put into circulation when at least the 

following information is given on the packaging or outer container in clearly legible script, in the 

German language and in a way that it cannot be washed off: 

� Active ingredients and other ingredients 

� Trade name of the product and its UBA number 

� Name and address of the business headquarters of the manufacturer, importer, or distributor 

� Dosage recommendations in milliliters for hardness areas 1 to 4 for detergents and cleaners 

containing phosphates or other hard-binding substances. The Act covers 

- Hardness area 1: up to 1.3 millimol total hardness per liter 

- Hardness area 2: 1.3 to 2.5 millimol total hardness per liter 

- Hardness area 3: 2.5 to 3.8 millimol total hardness per liter 

- Hardness area 4: over 3.8 millimol total hardness per liter

� How many kilograms of dry washing can be washed in a single washing process with one 

kilogram of the product taking into account the respective dosage recommendations for each 

hardness area. 

The UBA number is according to Article 9 the application number for a detergent or cleaning product 

and consists of eight digits. The first four digits indicate the firm and are allocated by application to the 

Federal Environmental Office (Umweltbundesamt, UBA); the last four digits indicate the product and 

are determined by the manufacturer, importer, or distributor, whereby for the last four digits 

consecutive numbers and only one number for each application are to be used. 

6.3.4.4 Labeling of dangerous substances 

The labeling of dangerous substances and products is regulated in European Union directives that were 

transposed into German law with the revision of the Dangerous Substances Ordinance of 10.18.1999. 

Also, since 1999 the directive 1999/45/EG for the grading, packaging, and labeling of dangerous 

products has been in force for the elimination of barriers to trade. 

Article 9 states that the packaging of dangerous products must comply with the following 

requirements: 

� The packaging must be so manufactured that the contents cannot leak. 

� The materials used in the packaging and closures must not be capable of being attacked by the 

contents or react with them to produce dangerous compounds. 

� The packaging and closures must be so firm and strong that they cannot work loose. 

� Containers with closures that can be re-used after opening must be manufactured in such a way 

that the packaging can be re-closed on multiple occasions without allowing the contents to leak. 

Further, containers holding dangerous products that are for sale to the public may not be of a shape 

and/or carry any graphic decoration that could arouse the curiosity of children or confuse the consumer, 

nor may they have a form of presentation or marking that is used for food, animal foodstuffs, 

medications, or cosmetics. 

Containers holding certain products covered by Appendix IV of the EU Directive that are for sale to the 

public must be provided with child-safe closures and/or a tactile warning sign for blind people). 

Articles 10 to 12 of the Directive cover in great detail the labeling of dangerous products and are 

therefore reproduced in full: 

6.3.4.4.1 Article l0 Labeling 

1.1 EU Member States shall take all necessary measures to ensure that: 

a) Preparations within the meaning of Article 1(2) cannot be placed on the market unless the 

labeling on their packaging satisfies all the requirements of this Article and the specific 

provisions of Part A and B of Annex V; 

b) Preparations within the meaning of Article 1(3) as defined in Parts B and C of Annex V 

cannot be placed on the market unless the labeling on their packaging satisfies the requirements 

of paragraphs 2.1 and 2.2 and the specific provisions of Parts B and C of Annex V.

1.2 With respect to plant protection products subject to Directive 91/414/EEC, the labeling 

requirements in accordance with this Directive shall be accompanied by the following wording: 

“To avoid risks to man and the environment, comply with the instructions for use.” 

This labeling shall be without prejudice to the information required in accordance with Article 

16 of, and Annex V to, Directive 91/414/EEC. 

2 The following information shall be clearly and indelibly marked on any package: 

2.1 The trade name or designation of the preparation; 

2.2 The name, full address and telephone number of the person established in the Community 

who is responsible for placing the preparation on the market, whether it be the manufacturer, the 

importer or the distributor; 

2.3 The chemical name of the substance or substances present in the preparation in accordance 

with the following detailed rules: 

2.3.1 For preparations classified T+, T, Xn in accordance with Article 6, only the substances T+, 

T, Xn present in concentrations equal to, or greater than, the lowest limit (limit Xn) for each of 

them laid down in Annex I to Directive 67/548/EEC or, failing that, Part B of Annex II to this 

Directive have to be taken into consideration. 

2.3.2 For preparations classified C in accordance with Article 6, only C substances present in 

concentrations equal to, or greater than, the lowest limit (limit Xi) laid down in Annex I to 

Directive 67/548/EEC or, failing that, Part B of Annex II to this Directive have to be taken into 

consideration. 

2.3.3 The name of the substances which have given rise to the classification of the preparation in 

one or more of the following danger categories: 

� carcinogen category 1, 2 or 3, 

� mutagen category 1, 2 or 3, 

� toxic for reproduction category 1, 2 or 3, 

� very toxic, toxic or harmful due to non-lethal effects after a single exposure, 

� toxic or harmful due to severe effects after repeated or prolonged exposure, 

� sensitizing 

shall be mentioned on the label. 

The chemical name shall be one of the designations listed in Annex I to Directive 67/548/EEC or 

an internationally recognized chemical nomenclature if no corresponding designation is yet listed 

in that Annex. 

2.3.4 As a consequence of the above provisions the name of any substance which led to the 

classification of the preparation in the following danger categories: 

� explosive, 

� oxidizing, 

� extremely flammable 

� highly flammable 

� flammable 

� irritant 

� dangerous for the environment

need not be mentioned on the label unless the substance has to be mentioned pursuant to 

paragraphs 2.3.1, 2.3.2 or 2.3.3. 

2.3.5 As a general rule, a maximum of four chemical names shall suffice to identify the 

substances primarily responsible for the major health hazards which have given rise to the 

classification and the choice of the corresponding phrases referring to the risk involved. In some 

cases, more than four chemical names may be necessary. 

2.4 The danger symbol(s) and indication(s) of danger 

The danger symbols, where specified in this Directive, and indications of the dangers involved in 

the use of the preparation, shall be in accordance with the wording of Annexes II and VI to 

Directive 67/548/EEC and shall be applied in accordance with the evaluation of the hazards 

carried out in accordance with Annexes I, II and III to this Directive. 

Where more than one danger symbol must be assigned to a preparation the obligation to apply 

the symbol: 

� T shall make the symbols C and X optional unless otherwise specified in Annex I to Directive 

67/548/EEC 

� C shall make the symbol X optional 

� E shall make the symbols F and O optional 

� Xn shall make the symbol Xi optional. 

The symbol(s) shall be printed in black on an orange-yellow background. 

2.5 The risk phrases (R phrases) 

The indications concerning special risks (R phrases) shall comply with the wording in Annexes 

III and VI to Directive 67/548/EEC and shall be assigned in accordance with the results of the 

hazard evaluation carried out in accordance with Annexes I, II, and III to this Directive. 

As a general rule, a maximum of six R phrases shall suffice to describe the risks; for this 

purpose, the combined phrases listed in Annex III to Directive 67/548/EEC shall be regarded as 

single phrases. However, if the preparation falls within more than one danger category, those 

standard phrases shall cover all the principal hazards associated with the preparation. In some 

cases more than six R phrases may be necessary. 

The standard phrases “extremely flammable” (“hochentzündlich”) or “highly flammable” 

(“leichtentzündlich”) need not be used where they describe an indication of danger used in 

accordance with 2.4. 

2.6 The safety advice (S phrases) 

The indications giving safety advice (S phrases) shall comply with the wording in Annex IV and 

with Annex VI to Directive 67/548/EEC and shall be assigned in accordance with the results of 

the hazard evaluation carried out in accordance with Annexes I, II and III to this Directive. 

As a general rule, a maximum of six S phrases shall suffice to formulate the most appropriate 

safety advice; for this purpose the combined phrases listed in Annex IV to Directive 67/548/EEC 

shall be regarded as single phrases. However, in some cases more than six S phrases may be 

necessary. 

Where it is physically impossible to include the advice on the label or package itself, the package 

shall be accompanied by safety advice on the use of the preparation;

2.7 The nominal quantity (nominal mass or nominal volume) of the contents in the case of 

preparations offered or sold to the general public. 

3 For certain preparations classified as dangerous within the meaning of Article 7, by way of 

derogation from paragraphs 2.4, 2.5, and 2.6 of this Article, exemptions to certain provisions on 

environmental labeling or specific provisions in relation to environmental labeling may be 

determined in accordance with the procedure referred to in Article 20, where it can be 

demonstrated that there would be a reduction in the environmental impact. These exemptions or 

specific provisions are defined and laid down in Part A or B of Annex V. 

4 If the contents of the package do not exceed 125 ml; 

� in the case of preparations that are classified as highly flammable, oxidizing, irritant, with the 

exception of those assigned R41, or dangerous for the environment and assigned the N 

symbol it shall not be necessary to indicate the R phrases or the S phrases; 

� in the case of preparations that are classified as flammable or dangerous for the environment 

and not assigned the N symbol it shall be necessary to indicate the R phrases but it shall not 

be necessary to indicate the S phrases. 

5 Without prejudice to Article 16(4) of Directive 91/414/EC, indications such as “non-toxic”, 

“non-harmful”, “non-polluting”, “ecological” or any other statement indicating that the 

preparation is not dangerous or likely to lead to underestimation of the dangers of the preparation 

in question shall not appear on the packaging or labeling of any preparation subject to this 

Directive. 

6.3.4.4.2 Article 11 Implementation of the labeling requirements 

(1) Where the particulars required by Article 10 appear on a label, that label shall be firmly 

affixed to one or more surfaces of the packaging so that those particulars can be read 

horizontally when the package is set down normally. The dimensions of the label are laid down 

in Annex VI to Directive 67/548/EEC and the label is intended solely for provision of the 

information required by this Directive and if necessary of any supplementary health or safety 

information. 

(2) A label shall not be required when the particulars are clearly shown on the package itself, as 

specified in paragraph 1. 

(3) The color and presentation of the label - or, in the case of paragraph 2, of the package - shall 

be such that the danger symbol and its background stand out clearly from it. 

(4) The information required on the label under Article 10 shall stand out clearly from its 

background and shall be of such size and spacing as to be easily read. Specific provisions 

regarding the presentation and format of this information shall be laid down in Annex VI to 

Directive 67/548/EEC. 

(5) Member States may make the placing on the market of preparations covered by this Directive 

within their territories subject to use of their official language or languages in respect of the 

labeling thereof. 

(6) For the purposes of this Directive, labeling requirements shall be deemed to be satisfied:

a) in the case of an outer package containing one or more inner packages, if the outer package is 

labeled in accordance with international rules on the transport of dangerous goods and the inner 

package or packages are labeled in accordance with this Directive; 

b) in the case of a single package: 

� if such a package is labeled in accordance with international rules on the transport of 

dangerous goods and with Article 10(2.1), (2.2), (2.3), (2.5) and (2.6); for preparations 

classified according to Article 7, the provisions of Article 10(2.4) shall additionally apply 

with respect to the property in question when it has not been so identified on the label, or 

� where appropriate, for particular types of packaging such as mobile gas cylinders, if the 

specific requirements referred to in Annex VI to Directive 67/548/EEC are complied with. 

Where dangerous preparations do not leave the territory of a Member State, labeling may be 

permitted which complies with national rules instead of with international rules on the transport 

of dangerous goods. 

6.3.4.4.3 Article 12 Exemptions from the labeling and packaging requirements 

(1) Articles 9, 10 and 11 shall not apply to explosives placed on the market with a view to obtaining an 

explosive or pyrotechnic effect. 

(2) For certain dangerous preparations within the meaning of Article 5, 6 or 7 defined in Annex VII 

which, in the form in which they are placed on the market, do not present any physico-chemical risk, or 

risk to health or to the environment, Articles 9, 10 and 11 shall not apply. 

(3) Member States may also 

a) permit the labeling required by Article 10 to be applied in some other appropriate manner on 

packages which are either too small or otherwise unsuitable for labeling in accordance with Article 

11(1) and (2); 

b) by way of derogation from Articles 10 and 11 permit the packaging of dangerous preparations which 

are classified as harmful, extremely flammable, highly flammable, flammable, irritant or oxidizing not 

to be labeled or to be labeled in some other way, if they contain such small quantities that there is no 

reason to fear any danger to persons handling such preparations or to other persons; 

c) by way of derogation from Articles 10 and 11, for preparations classified according to Article 7, 

permit the packaging of dangerous preparations not to be labeled or labeled in some other way if they 

contain such small quantities that there is no reason to fear any dangers to the environment; 

d) by way of derogation from Articles 10 and 11 permit the packaging of dangerous preparations which 

are not mentioned in (b) or (c) above to be labeled in some other appropriate way, if the packages are 

too small for the labeling provided for in Articles 10 and 11 and there is no reason to fear any danger to 

persons handling such preparations or to other persons. 

Where this paragraph is applied, the use of symbols, indications of danger, risk (R) phrases or safety 

(S) phrases different to those laid down in this Directive shall not be permitted. 

(4) If a Member State makes use of the options provided for in paragraph 3, it shall forthwith inform 

the Commission and Member States thereof. Where it is appropriate, measures shall be decided upon in 

the framework of Annex V and in accordance with the provisions of Article 20.

6.3.4.4.4 Annex IV – Special provisions for containers containing preparations offered or sold to the general 

public 

PART A Containers to be fitted with child-resistant fastenings 

1. Containers of whatever capacity, containing preparations offered or sold to the general public 

and labeled as very toxic, toxic or corrosive in accordance with Article 10 and under the 

conditions laid down in Article 6 of this Directive, are to be fitted with child-resistant fastenings. 

2. Containers of whatever capacity containing preparations presenting an aspiration hazard (Xn, 

R65) and classified and labeled according to paragraph 3.2.3 of Annex VI to Directive 67/548/EEC 

with the exception of preparations placed on the market in the form of aerosols or in a container 

fitted with a sealed spray attachment. 

PART B Containers to be fitted with a tactile warning of danger 

Containers of whatever capacity, containing preparations offered or sold to the general public 

and labeled as very toxic, toxic, corrosive, harmful, extremely flammable or highly flammable in 

accordance with Article 10 and under the conditions laid down in Articles 5 and 6 of this 

Directive, are to carry a tactile warning of danger. 

This provision does not apply to aerosols classified and labeled only as extremely flammable or 

highly flammable. 

6.3.4.4.5 Annex V – Special provisions concerning the labeling of certain preparations 

A. For preparations classified as dangerous within the meaning of Articles 5, 6 and 7 

1. Preparations sold to the general public 

1.1 The labels on packages containing such preparations, in addition to the specific safety 

advice, must bear the relevant safety advice S1, S2, S45 or S46 in accordance with the criteria 

laid down in Annex VI to Directive 67/548/EEC. 

1.2 When such preparations are classified as very toxic (T+), toxic (T) or corrosive (C) and 

where it is physically impossible to give such information on the package itself, packages 

containing such preparations must be accompanied by precise and easily understandable 

instructions for use including, where appropriate, instructions for the destruction of the empty 

package. 

2. Preparations intended for use by spraying 

The package label containing such preparations must compulsorily bear the safety advice S23 

accompanied by safety advice S38 or S51 assigned to it in accordance with the criteria laid down 

in Annex VI to Directive 67/548/EEC. 

3. Preparations containing a substance assigned phrase R33: Danger of cumulative effects 

When a preparation contains at least one substance assigned the phrase R33, the label of the 

preparation must carry the wording of this phrase as set out in Annex III to Directive 

67/548/EEC, when the concentration of this substance present in the preparation is equal to or 

higher than 1%, unless different values are set in Annex I to Directive 67/548/EEC. 

4. Preparations containing a substance assigned phrase R64: May cause harm to breastfed babies 

When a preparation contains at least one substance assigned phrase R64, the label of the 

preparation must carry the wording of this phrase as set out in Annex III to Directive

67/548/EEC, when the concentration of this substance present in the preparation is equal to or 

higher than 1%, unless different values are set in Annex I to Directive 67/548/EEC. 

B. For preparations irrespective of their classification within the meaning of Articles 5, 6 and 7 

1. Preparations containing lead 

1.1 Paint and varnishes 

Labels of packages of paints and varnishes containing lead in quantities exceeding 0.15% 

(expressed as weight of metal) of the total weight of the preparation, as determined in 

accordance with ISO standard 6503/1984, must show the following particulars: Enthält Blei. 

Nicht für den Anstrich von Gegenständen verwenden, die von Kindern gekaut oder gelutscht 

werden könnten. (“Contains lead. Should not be used on surfaces liable to be chewed or sucked 

by children”). 

In the case of packages the contents of which are less than 125 milliliters, the particulars may be 

as follows: Achtung! Enthält Blei. (“Warning! Contains lead”). 

2. Preparations containing cyanoacrylates 

2.1 Adhesives 

The immediate packaging of adhesives based on cyanoacrylate must bear the following 

inscriptions: 

Cyanacrylat. Gefahr. 

Klebt innerhalb von Sekunden Haut and Augenlider zusammen. 

Darf nicht in die Hände von Kindern gelangen. 

(English version: 

“Cyanoacrylate. Danger 

Bonds skin and eyes in seconds 

Keep out of the reach of children”.) 

Appropriate advice on safety must accompany the package. 

3. Preparations containing isocyanates 

The package labels of preparations containing isocyanates (such as monomers, oligomers, 

prepolymers, etc., or as mixtures thereof) must bear the following inscriptions: 

Enthält Isocyanate. 

Hinweise des Herstellers beachten. 


“Contains isocyanates. 

See information supplied by the manufacturer.”) 

4. Preparations containing epoxy constituents with an average molecular weight


“Contains epoxy constituents. 

See information supplied by the manufacturer.”) 

5. Preparations sold to the general public which contain active chlorine 

The packaging of preparations containing more than 1% of active chlorine must bear the 

following particular inscriptions: 

Vorsicht! Nicht zusammen mit anderen Produkten verwenden, da gefährliche Gase (Chlor) 

freigesetzt werden können. 


“Warning! Do not use together with other products. May release dangerous gases (chlorine).”) 

6. Preparations containing cadmium (alloys) and intended to be used for welding or soldering 

The packaging of the preparations mentioned above must bear the following inscription printed 

in clearly legible and indelible characters: 

Achtung! Enthält Cadmium. 

Bei der Anwendung entstehen gefährliche Dämpfe. 

Anweisung des Herstellers beachten. 

Sicherheitsanweisungen einhalten. 


“Warning! Contains cadmium. 

Dangerous fumes are formed during use. 

See information supplied by the manufacturer. 

Comply with the safety instructions.”) 

7. Preparations available as aerosols 

Without prejudice to the provisions of this Directive, preparations available as aerosols are also 

subject to the labeling provisions in accordance with points 2.2 and 2.3 of the Annex to Directive 

75/324/EEC as last amended by Directive 94/1/EC. 

8. Preparations containing substances not yet tested completely 

Where a preparation contains at least one substance which, in accordance with Article 13.3 of 

Directive 67/548/EEC, bears the inscription Achtung, noch nicht vollständig geprüfter Stoff 

(“Warning—substance not yet tested completely”), the label of the preparation must bear the 

inscription Achtung, diese Zubereitung enthält einen noch nicht vollständig geprüften Stoff 

(“Warning—this preparation contains a substance not yet tested completely”) if this substance is 

present in a concentration >= 1%. 

9. Preparations not classified as sensitizing but containing at least one sensitizing substance 

The packaging of preparations containing at least one substance classified as sensitizing and 

being present in a concentration equal to or greater than 0.1% or in a concentration equal to or 

greater than that specified under a specific note for the substance in Annex I to Directive 

67/548/EEC must bear the inscription: Enthält ‘Name des sensibilisierenden Stoffes’. Kann 

allergische Reaktionen hervorrufen. (“Contains (name of sensitizing substance). May produce an 

allergic reaction.”) 

10. Liquid preparations containing halogenated hydrocarbons

For liquid preparations which show no flashpoint or a flashpoint higher than 55 °C and contain a 

halogenated hydrocarbon and more than 5% flammable or highly flammable substances, the 

packaging must bear the following inscription as appropriate: 

Kann bei Gebrauch leicht entzündlich werden (“Can become highly flammable in use”) or Kann 

bei der Verwendung entzündlich werden (“Can become flammable in use”). 

11. Preparations containing materials to which phrase R67 has been allocated: 

Where a preparation contains at least one substance which has been allocated the phrase R67, the 

labeling of the preparation must carry the text of this phrase according to Annex III of Directive 

67/548/EWG, if the total concentration of the relevant materials in the preparation amount to 

15% or more, unless: 

� the preparation on account of its classification has already been allocated the phrases 

R20, R23, R26, R68/20, R39/23 or R39/26, or 

� the packaging of the preparation does not contain more than 125 ml. 

12. Cement and Cement products 

The packaging of cement and cement products, of which more than 0.0002% of the total dry 

weight of the cement consists of soluble chrome (VI), must bear the following inscription: 

Enthält Chrom (VI). Kann allergische Reaktionen hervorrufen. (“Contains chrome (VI). May 

produce an allergic reaction.”) 

This does not apply when the preparation has already been classified as sensitizing and is marked 

with phrase R43. 

C. For preparations not classified within the meaning of Articles 5, 6 and 7 but containing at 

least one dangerous substance 

1 Preparations not intended for the general public 

The label on the packaging of the preparations referred to in Article 14.2.1(b) must bear the 

following inscription: 

Sicherheitsdatenblatt auf Anfrage für berufsmäßige Benutzer erhältlich. (“Safety data sheet 

available for professional user on request”). 

6.4 DEVELOPMENTS AND TRENDS 

As already mentioned, this report makes no claim to be comprehensive. It has tried to provide an 

overview of the current state of regulations with reference to the packaging industry. However, in view 

of the fact that new directives may take effect as a result of moves toward the harmonization of 

competition with the European Community, it is equally possible that existing regulations in Germany 

may be amended. 

For example, in Germany there is currently an active discussion about the introduction of a deposit on 

cans. On July 13, 2001, the German Bundesrat rejected the federal government’s planned deposit 

regulation for drink cans and nonreturnable bottles. Nevertheless, despite the rejection of the 

amendment, it is expected that a compulsory deposit based on the already existing regulation will be 

introduced. 

In the longer term, in view of concerns about the environment, obligatory environmental regulations 

will probably be increasingly introduced not only in Germany and Europe but also worldwide.

7. TARIFFS, TAXES AND DUTIES 

The following table gives an overview of applicable tariffs, taxes and duties for products with the code 

HS 8422 that are entering the German market: 

Import duty 1.7% of the CIF (i.e. cost/insurance/fright) value 

VAT 17% on the sum of the CIF value plus import duty 

Example: 

CIF value 

+ import duty 1.7% of CIF value 

Subtotal 101.7% of CIF price 

+ VAT 17% of subtotal 

Total Landed Cost: 118.989% of CIF value 

In addition, the following may be payable: 

� Dockside fees, according to the length of time the goods remain at the dockside 

and/or 

� Clearance fees / documentation fees 

For the near future, no changes with reference to import duty and VAT are expected.

8. FOOD & BEVERAGE INDUSTRY 

At the Web site of FEI (Forschungskreis der Ernährungsindustrie e.V., Research Association of the 

German Food Industry), a list of the most important industry sector associations can be found: 

http://www.bn.shuttle.de/fei-bonn/index.verband.htm. 

With more than 6,100 companies, over 550,000 employees, and a turnover of about 120 billion €, the 

food and beverage industry is one of the most important industry sectors in Germany. This significant 

sector features a large number of efficient medium-sized enterprises as well as a high-quality, safe, and 

wide range of products. The variety shows in the formation of the economic-political central 

association, the federal association of the German food industry (BVE). Important industrial unions 

have joined forces with companies in the sector to form this powerful lobby group. 

The German food and beverage industry is currently facing some big challenges. The price war that has 

now lasted for 3 years and the increasing globalization of the markets as well as spectacular mergers 

and takeovers of companies both in trade and industry have led to significant pressure on German food 

companies in almost all parts of the sector. 

8.1 THE MARKET 

The German food and beverage industry is made up of a substantial number of medium-sized 

companies: Three-quarters of all companies have less than 100 employees, with such companies 

recording a total turnover of around 18.9 billion €. Both in international comparisons and in 

comparison with other sectors, the German food and beverage industry shows a very fragmented 

structure. Within the top 20 companies in the food industry in Europe, there is not even one German 

enterprise. Within the top 40, there are only 5 German companies. Many companies are of a critical 

size: They are too big for niche markets and too small to be internationally competitive. That is why 

they run the risk of not being competitive by reference to market prices and why they become potential 

candidates for takeover by national or international affiliated groups. 

According to a survey by the Rabobank (1999, “The world food markets”), out of the 6,145 companies 

in Germany in 1999, only one-third will survive the next few years. One-third of the companies will go 

out of business because they do not have significant share in the market or attractive brands or 

sufficient production capacity. Another third will be taken over by national and international affiliated 

groups. The reason that this localization process has not been more powerful to date is because many 

companies exist only on their assets. They are owned by a family, which means that the owners make 

the decision to give up or to sell much later. However, this will not stop the process; it will only be 

delayed. 

The European food and beverage industry is undergoing a profound structural change. The subsegment 

markets for food and beverage products are saturated in almost all of Europe. Because of EU 

enlargement in Eastern Europe, as well as in the medium term into the Russian market, some moderate 

increases in potential demands are expected. While Europe-wide market prices for food have been 

stable for years now, in Germany prices have been falling due to displacement competition from the 

retail sector. Consumers are happy about this development and are now used to lower price levels. 

Even if there were an easing of the price war and stronger cooperation between the food industry and 

the trade, it would be difficult in the future to successfully raise price levels. 

At the same time, structural change will advance due to improved production engineering and more 

sophisticated logistics. Due to higher degrees of automation with computer-assisted production and

manufacturing lines, as well as quantum leaps in information technology, the food and beverage sector 

will be more flexible and increasingly responsive to market trends. 

It has also been possible to noticeably increase the shelf-life of food within the last few years. With the 

simultaneous improvement of the traffic infrastructure, most food products, even fresh products, can be 

distributed from one production location to almost all of Europe. 

8.1.1 Retail chains 

Almost all big retail chains have expanded their activities within the past few years throughout the 

whole of Europe. Due to the entry of Wal-Mart onto the European market, the competition between the 

retail chains has become even more intense. Their concentration in the various countries is now very 

high. In 1997, the 3 biggest food retail chains had a share of 43% in the German market. Equally high 

degrees of concentration exist in almost all European countries. 

In the process of the Europeanization of retail groups, there will be a product line adjustment in trade. 

In the context of the increasing pan-Europe presence of retail groups, there is likely to be a 

reorganization of product lines and brands. The major national and international, heavily advertised 

brands will maintain their presence due to consumer pressure. However, the smaller secondary and 

tertiary brands (often represented by small and middle-size enterprises) may well be removed from the 

shelves as they are in direct competition with retailers’ own brands. House brands are growing across 

Europe: In Germany they currently have a market share of 27%, in Switzerland 40%, in the UK 30%, 

and in Belgium 24%. Improved production quality as well as marketing activity have boosted house 

brands’ share in recent years. 

While the 10 biggest retail chains in Germany have a market share of 84% (1999), the 10 biggest 

distributors have a market share of about 30% (source: LZ). 

8.2 TRENDS 

The trend toward single households continues. In Germany, the number of one-person households was 

10.5 million in 1999, in addition to which, there are more and more elderly people in Germany. 

Currently, the proportion of people aged 65+ is 15.7% of the total population of approximately 82 

million people. The proportion of people between 45 and 65 is today 25.3%. 

Furthermore, the German market is seeing modified cooking and consumption habits. The Germans 

take less time to prepare meals and prefer ready prepared food. The trend toward smaller packaging 

sizes and convenience products results from this, combined with the demographic changes. 

The health and nutrition awareness of consumers is rising continuously. This fuels the demand for socalled 

Functional Foods. The controversies regarding pollutants in food products and the uncertainty 

and resistance of consumers to genetically modified food are also leading to increased consumer 

awareness. This is combined with an increased need for information about the ingredients and origin of 

products. Within the last few years “Talking Food” has emerged: food that provides the consumer with 

information about origin, cultivation method, or ingredients via package labeling, seals of approval, 

and similar information sources. 

Target group–specific packaging will become more and more important for consumers and therefore as 

an instrument of marketing. This trend is considered very important by experts and by the companies 

surveyed for this report. The prevailing opinion is that within the next few years, there will be 

numerous packaging innovations.

Manufacturers who steadily develop their product range and who adapt it to changes in consumers’ 

needs will be successful in the long term. Competitive advantage will be achieved by innovation. 

Innovations in the food and beverage industry may come in the areas of production, process, service, 

communication, and especially packaging. 

Packaging innovations are related to product innovations. They do not primarily change the product 

characteristics but can benefit the consumer. Packaging innovations can, for example, have an 

enhancing effect on freshness or perishability, transport or preparation without any effect on the 

characteristics of the product itself. 

Packaging innovations have a somewhat lower threshold concerning research and development costs, 

which in fact can be outsourced to the supplier in large part. The investment costs in new equipment 

can, however, be significant. Examples of packaging innovations are reclosable packages, single 

packages, bulk and small packages, multivariety packages, or special packaging forms (packages that 

can be opened especially easily). For instance, the introduction of PET bottles in the brewing sector as 

well as for mineral water and refreshment drinks will lead to lasting changes in these sectors. That is 

why the majority of small and middle-sized companies in this sector still do not know if and how they 

should invest in PET filling equipment. Together with the implementation of PET technology, it is 

possible to design completely new bottle forms that will become interesting as a marketing tool. 

Bottle form may help differentiate competitive products. Certainly, the big providers in the sector of 

refreshment drinks are forcing implementation of PET throughout the industry as they have already 

invested in new filling equipment and therefore have a competitive advantage. 

As to the procuring of packaging, partnerships between some companies already exist. In the brewing 

sector, there are already partnerships for filling. There are even partnerships between several 

companies that are, for example, organized in the German brewing cooperative organization (Deutsche 

Braukooperation). 

8.3 FACTS AND FIGURES 

In 2000, the total turnover in the German food and beverage industry was 120.4 billion € (2001: 127.2 

billion €.). This means that Germany has the largest food and beverage industry in Europe, in terms of 

turnover, followed by France and Italy. 

In 2000, the export share of the food and beverage industry for the whole of Germany was 18.3% 

(2001: 18.9%). Imports of processed food into Germany have exceeded exports for many years now 

and had a total value of more than 25.6 billion € in 2000. In addition to other EU countries, the most 

important sources of imported goods are Central and South America and Asia. 

The number of employees in the German food and beverage industry was 554,633 in 2000. 

In terms of turnover, the two most important subsectors are the meat products industry and the milk 

products industry.

Food Manufacturers: Key players 

Company City No. of 

employees 

Suedzucker Ag Mannheim 29,579 

Tchibo Frisch-Roest-Kaffee Gmbh Hamburg 10,190 

Wendeln Brot Sued-West Gmbh & Co. Kg Pfungstadt 8,000 

Nestle Deutschland Ag Frankfurt 7,759 

Lsg Lufthansa Service Deutschland Gmbh Frankfurt 6,861 

‘Nordsee’ Fisch-Spezialitaeten Gmbh & Co. Kg Bremerhaven 5,345 

Union Deutsche Lebensmittelwerke Gmbh Hamburg 4,508 

Stollwerck Ag Koeln 4,448 

Feneberg Lebensmittel Gmbh Kempten 4,000 

(Source: Sample Answers) 

Market structure by number of employees in 

the food industry 

Size 

No. of companies In % 

No. of employees 

0 – 19 637 10 

20 – 49 2,684 44 

50 – 99 1,362 22 

100 –199 822 13 

200 – 299 275 5 

300 – 499 202 3 

500 – 999 115 2 

1000+ 26 0.4 

TOTAL 6,123 100 


Note: These figures may not be directly comparable with data presented elsewhere in the report from other sources.

Key figures for the German food and 

beverages industry 2000/2001 

2000 2001 

Turnover 120.4 billion € 127.2 billion € 

In Germany 98.5 billion € 103.2 billion € 

Export 21.9 billion € 24.0 billion € 

Export share, i.e. share in % 18.20% 18.90% 

Import 25.6 billion € n/a 

No. of companies 6,136 6,045 

Employees 554,633 547,800 

(Source: BVE – estimate) 

Food and beverage industry in comparison with total industry 

Turnover (billion €) 

1999 2000 changes in % 

Food and beverage industry 116.6 120.4 3.2 

Total industry 1,184.8 1,294.4 9.3 

Export share 

Food and beverage industry 17.0% 18.3% 1.3 

Total industry 34.5% 36.5% 2.0 

Companies 

Food and beverage industry 6,145 6,136 -0.1 

Total industry 47,462 47,463 +/-0 

Employees 

Food and beverage industry 550,472 554,633 0.8 

Total industry 6,239,409 6,258,049 0.3 

Gross investment (billion €) 

Food and beverage industry 4.6 4.4 -5 

Total industry 51.4 53.5 4 

(Source: Statistisches Bundesamt, ifo Institut, Bundesvereinigung der deutschen 

Ernährungsindustrie) 

Data from April 2001

Key figures for the food and beverages industry sectors 2000 

Selected sectors 

Turnover 

(million €) 

Employees Companies 

Food and beverages industry 120,381 554,633 6,136 

Butcher and meat processing 21,706 112,677 1,363 

Fish processing 1,858 10,637 99 

Fruit and vegetable processing 7,440 28,246 322 

Production of vegetable and animal oil and fat 4,228 4,972 34 

Milk processing 20,975 41,142 286 

Grind and peel mills, production of starch 3,491 10,336 108 

Production of bread, cakes and pastries 9,635 164,246 2,384 

Production of permanent bread, cakes and pastries 3,014 19,923 105 

Sugar industry 3,179 6,684 38 

Production of sweets 7,431 30,710 150 

Production of pasta 464 2,446 32 

Processing of coffee, tea, production of coffee 

substitutes 

3,976 6,269 44 

Production of spices and sauces 3,389 14,585 73 

Production of homogeneous and dietetic food 860 3,662 14 

Production of spirits 2,882 4,420 91 

Production of beer 9,235 37,618 367 

Mineral water, production of refreshing drinks 

(Source: BVE) 

6,375 25,113 229 

Note: the statements in Section 9 (Beverages) differ in some respects from the statements in this table. 

The number of enterprises working in the manufacturing of beer is said to be 367: while in fact there are 

more than 1250 breweries in Germany, many breweries are part of a group. The statements in Section 9 

(Beverages) come mainly from professional associations and are in much more detail than the data 

available from the BVE.

Top 10 of the German food retailing industry 2000 

(turnover in million €) 

Schlecker 

Lekkerland-Tobaccoland 

SPAR 

Karstadt 

Lidl & Schwarz 

Tengelmann 

Aldi 

Edeka/AVA 

Rewe 

Metro 

4129 

5618 

6904 

1311 7432 

9913 

8804 

217 

16020 

13601 

378 

734 

19942 

19326 

2357 

4944 

3281 

4415 

17574 

8767 

Turnover Food and Non-Food 

Food Non-Food 

Turnover shares of food and beverage industry 

sectors 2000 

Meat processing 

10% 

Production of spices 

and sauces 

3% 

Other food and 

beverages industry 

18% 

Mineral water, 

production of 

refreshing drinks 

5% 

Processing of fruit 

and vegetable 

6% 

Production of 

alcoholic drinks 

11% 

Production of oil and 

fat 

4% 

Processing of coffee 

and tea 

3% 

Milk Processing 

17% 

Grind and peel mills, 

production of starch 

3% 

Production of bread, 

cakes and pastries 

11% 

Sugar industry 

3% 

Production of sweets 

6%

Turnover shares (food and beverages) of the Top 10 of the 

Food Retail Industry 2000 

Dohle-Group 

2.0% 

Schlecker 3.2% 

Lekkerland- 

Tabaccoland 

4.4% 

SPAR-Group 

5.4% 

Tengelmann- 

Group 6.9% 

Others 

16.0% 

Lidl & Schwarz 

7.8% 

Metro-Group 

10.7% 

Edeka/AVA- 

Group 15.9% 

Rewe-Group 

15.1% 

Aldi-Group 

12.5% 



Deutscher Fleischerverband (DFV) 

German Meat Traders’ Association 

Kennedyallee 53 

60596 Frankfurt 

Tel.: 069 - 63 30 21 81 

Fax: 069 - 63 30 29 161 

E-Mail: info@fleischerhandwerk.de 

Web site: www.fleischerhandwerk.de 

Deutsches Institut für Lebensmitteltechnik e.V. (DIL) 

German Institute of Food Technology 

Prof.-von-Klitzing-Straße 7 

49610 Quakenbrück 

Tel.: 05431 - 183-0 

Fax: 05431 - 183-114 

E-Mail: info@dil-ev.de 

Web site: www.dil-ev.de

Industrievereinigung für Lebensmitteltechnologie und Verpackung e.V. (IVLV) 

Industrial Association of Food Technology and Packaging 

Schragenhofstraße 35 

80992 München 

Tel.: 089 - 14 90 09-0 

Fax: 089 - 14 90 09-80 

E-Mail: office.@ivlv.de 

Web site: www.ivlv.de 

Bundesverband der Deutschen Süßwarenindustrie e.V. 

Association of the German Confectionery Industry 

Schumannstraße 4-6 

53113 Bonn 

Tel.: 0228 - 26 00 70 

Fax: 0228 - 26 00 789 

E-Mail: bdsi@bdsi.de 

Web site: www.bdsi.de 

Bundesverband des Deutschen Lebensmittelhandels e.V. (BVL) 

Postfach 140164 

53056 Bonn 

Tel.: 0228-919200 

Fax: 0228-9192010 

E-Mail: bvl@einzelhandel.de 

Bundesvereinigung der deutschen Ernährungsindustrie e.V. (BVE) 

Frau Hilde Traut 

Godesberger Allee 142-148 

53175 Bonn 

Tel.: 0228-30829-0 

Fax: 0228-30829-99 

E-Mail: bve@bve-online.de 

Web site: www.bve-online.de 

Bundesministerium für Verbraucherschutz, Ernährung und Landwirtschaft 

Herr Friedel Cramer 

Rochusstraße 1 

53123 Bonn 

Tel.: 0228-5290 

Fax: 0228-529 4307 

E-Mail: 116@bmvel.bund.de 

Web site: www.bml.de

Verband des Deutschen Nahrungsmittelgroßhandels (VDN) e.V. 

Dr. Günther Schulte 

Vorgebirgsstraße 43 

53199 Bonn 

Tel.: 0228-9858425 

Fax: 0228-9858410 

E-Mail: g.schulte@zgv-online.de 

Web site: www.zgv-online.de

8.5 COMPANY PROFILES 

8.5.1 Nestlé Deutschland AG 

Industry: Food & beverages 

Subsector: Everything (grocery) 

Location: 60528 Frankfurt / Main 

Size: (sales) 2.80 billion € 

Web http://www.nestle.de 

8.5.1.1 Company Description 

Nestlé Deutschland AG is a manufacturer of branded goods, engaging in various business sectors with 

its products and with 23 production facilities in Germany. 

In the Nestlé Deutschland AG Headquarter in Frankfurt, a workforce of about 1,200 people is 

employed. The various divisions of the Nestlé company—factories, distribution centers, and field 

services—are coordinated and administered in the Nestlé headquarters. 

Since Henri Nestlé developed the first milk food for infants in 1867, the Nestlé company has gained 

vast experience through its scientific research into the nutritional needs and food preferences of 

consumers of all ages. 

The company has been a leading food manufacturer and major purchaser of agricultural raw materials 

for over 130 years. Because Nestlé activities in Switzerland, its country of origin, account for less than 

2% of its global turnover, Nestlé learned very early to respect the social, political, and cultural 

traditions of all countries in which the products are produced and sold and to be a highly decentralized 

“people and products” oriented company rather than a systems centered organization. Today, Nestlé is 

the world’s largest and most diversified food company, with nearly 500 factories around the globe. 

The following companies belong to Nestlé Deutschland AG: Nestlé Alete GmbH, Nestlé Chocoladen 

GmbH, Nestlé Clinical Nutrition GmbH, Nestlé Erzeugnisse GmbH, Nestlé Food Service GmbH, 

Nestlé Milchfrischprodukte GmbH, Nestlé Motta GmbH, Friskies Deutschland GmbH, Herta GmbH, 

and Maggi GmbH. 

Nestlé Deutschland AG has in addition a share in the following companies: Alois Dallmayr Kaffee 

OHG, Cereal Partners Deutschland GmbH & Co. OHG, and Mineralbrunnen Überkingen Teinach AG. 

Toward the end of 2000, Nestlé Deutschland AG had about 11,400 employees. 

Every German household purchases on average about 100 Nestlé products per year. 

The turnover in 2000 amounted to a total of 2.80 billion € with an export share of 16%. The largest 

sales were achieved in the sector of convenience food, cooking products, and pet care products (46.1%) 

followed by milk products and diet products, such as ice-cream (29.2%), chocolate and sweets (14%), 

and beverages (10.7%).

8.5.1.2 Main Products Produced and How They Are Packed 

Some of the main products and brands are: 

� coffee: Nescafé, Nespresso 

� other beverages: Nestea, Nesquik, Caro, Fürst Bismarck 

� culinary products such as bouillons, soups, seasonings, prepared dishes, canned food, pasta, 

sauces: Maggi, Buitoni, Libby’s, Thomy 

� frozen foods: Maggi, Buitoni 

� ice cream: Nestlé, Motta 

� refrigerated products: Nestlé, Buitoni, Herta 

� chocolate and confectionery: Nestlé, KitKat, Quality Street, Smarties, After Eight, Butterfinger, 

Lion, etc. 

The complete range of Nestlé products can be viewed on their Web site. 

Because of the variety of products and the large number of different production facilities, Nestlé 

Deutschland AG was not able to give details on types of packaging or machinery. According to Nestlé 

all packaging materials available are being used. 

8.5.1.3 Installed Packaging Machinery 

Regarding the choice of packaging machinery it was—due to the diverse product range and the large 

number of different production facilities—not possible to obtain detailed information about which 

packaging machinery is used where. 

Within the 23 production facilities, all kinds of packaging machinery are used: (filling machines, 

closing machines, labeling machines, fill and seal machines, inspecting machines, container and 

component handling machines, form, fill and seal machines, cartoning machines, wrapping machines, 

case/tray handling machines, pallet forming). 

8.5.1.4 Purchasing Policies and Financial Arrangements 

Packaging machinery is purchased nearly every week on the basis of the payback method. 

Requirements and needs are calculated in each single factory: 

“Of the machinery in service, we keep detailed service-books about mode of operation; all relevant 

data (such as periodic maintenance, down time, energy consumption, overheads, etc.) are noted. These 

records help us to determine the material requirement. Our objective is, if possible, that the machinery 

operates day and night, i.e. 24 hours. In addition, each piece of machinery should be able to package 

various products.” 

The machinery is usually chosen by the technical department and the engineering department. The 

production facility then places an application/request, which will be put forward to Nestlé Deutschland 

AG. If the purchase department of Nestlé Deutschland AG agrees to the application, an appraisal 

discussion will be held. The appraisal discussion, which will be held at the headquarters in Frankfurt, 

will be attended by the technical director and the control operator of the respective factory and the 

purchasing department of Nestlé Deutschland AG. Normally, Nestlé Deutschland AG agrees to the 

factory’s application because each factory knows its individual requirements best.

8.5.1.5 Preferred Brands and Existing Arrangements 

A large number of Nestlé Deutschland AG suppliers are from Central Europe. 

German packaging machinery manufacturers are rated fairly highly regarding technology, innovation, 

flexibility and service. Value for the money of binding contracts (i.e. obligation not only to purchase 

the machinery, but also the packaging materials from the manufacturer) are viewed as troublesome. 

Italian and French packaging machinery manufacturers are rated as good with regard to technology and 

innovation. However, service—despite a 2-year warranty—still leaves much to be desired. The 

problem is that Italian and French packaging machinery manufacturers have almost no locations in 

Germany. Generally, there is a lack of communication due to the language barrier. 

Regarding the purchase plans of Nestlé Deutschland AG, British packaging machinery is not 

considered. The company’s knowledge of British manufacturers is limited. 

American packaging machinery is hardly used, for various reasons: 

a) The American packaging machinery manufacturer’s knowledge of the German market is 

insufficient: 

a. Regulations and requirements regarding food are not fulfilled by American machinery 

because these regulations are unknown in America. 

b. Calibration regulations (e.g. regarding 100g glasses, only one [1] out of 1000 is allowed 

to contain less than 100g) cannot be met by using American packaging machinery 

because these regulations are unknown in America. This is partly due to the difference 

between the American and the metric system. 

c. Technical requirements of machinery are—partly—not met (e.g. machinery has to 

consist only of high-alloy stainless steel). 

d. Industrial safety regulations are very strict in Germany. American machinery normally 

exceeds by many times the maximum permitted noise level. 

b) The dollar rate is very high: American companies refuse to agree to a fixed price at a defined 

point of time in German (i.e. European) currency. Therefore, calculations are very difficult and 

become a gamble. 

c) Delivery time amounts to 6–8 months, and service also takes too long because of the distance. 

Basically it is just too much effort. 

d) The American machinery industry is not very innovative. Knowledge of robotics and control 

technique either does not exist, is bought in from abroad, or is copied. 

e) German packaging machinery is rated very highly. 

8.5.1.6 Trade Show Attendance / Trade publication Information 

Tradeshows that are attended regularly are: 

� Achema in Frankfurt 

� Interbrau in Munich 

� Interpack in Düsseldorf 

Sometimes, tradeshows in Paris (Emballage) and England are visited. 

The company participates regularly at the Anuga in Cologne.

8.5.1.7 Trends in packaging 

Packaging machines must offer the option of multiple use and must adjust very quickly to new market 

requirements. 

8.5.1.8 Contact Information 

Company Name: Nestlé Deutschland AG 

Contact: Mr. Middeldorf 

Position: Technical purchasing department 

Address: Lyoner Straße 23 

Frankfurt / Main 

Telephone: 069-66710 

Fax: n/a 

E-Mail: n/a 

Web site: www.nestle.com

8.5.2 Company S 

Industry: Food & beverages 

Subsector: Everything (grocery) 

Location: n/a 

Size: (sales) n/a 

Web http://www.nestle.de 


Company S belongs to one of the 23 factories of the German Nestlé Group. It was founded in 1913 and 

has about 500 employees. The respondent refused to make statements on the total turnover and export 

sales. 


Product Brand/Type Packaging Details 

Candy / chocolate bar Yes, KitKat, Lion Bar Flow pack, tubular bag 

machine, vertical and 

horizontal tubular bag 

machines 

Candy / chocolate bar Knoppers Multipacks (e.g. Yes) in a 

tubular bag or attached to each 

other by a label that encircles 

them, i.e. several bars are 

attached to each other (label 

banded products) 

Candy / chocolate bar Various Tubular bag in a carton 

Candy / chocolate bar various Chocolates on a plastic tray, 

the tray is then put in a box 

Candy / chocolate bar Wonderball Hollow chocolate bodies, 50 

mm diameter, “wonderballs” 

Principally Company S attempts to keep packaging as simple as possible, i.e. only plastic or only 

paper/cardboard. For chocolates, this can be difficult, because chocolate cannot simply be put into a box. 

To guarantee the freshness of the chocolate, it has to be kept dry and away from air. Furthermore, it has to 

be packaged to emphasize its exclusive character.


Current Machinery Used Units Origin 

Average 

Age 

Horizontal flow-pack, i.e. tubular 

bag machines 

SIG 

8 Switzerland 2–25 years 

Klöckner Tevopharm N/A Holland N/A 

Deltapack/Hitech N/A Germany / Italy N/A 

A.C.M.A.GD 3 Italy 4 years 

Vertical flow-pack, i.e.tubular 

bag machines 

Rovema 

Shell moulding plant for 

wonderballs 

Klöckner Hänsel 

N/A Germany N/A 


Loesch N/A Germany N/A 

Marchesini N/A Italy N/A 

Robotic plants 

Abb 

Robotic plants 

Adept 

N/A Switzerland N/A 

N/A USA N/A 

Labeling machines N/A N/A N/A 

Belt conveyors N/A N/A N/A 

Cartoner 

Cam 

Cartoner + robotics 

Schubert 

N/A Italy N/A 


8.5.2.4 Recent purchases of Packaging Machinery 

Two years ago a SIG machine was purchased. The oldest is also a SIG brand machine. 

A complete packaging installation for cans (130mm high x 50 mm diameter) has just been ordered 

from EBM TECHNIEK in Holland. The cost of the whole installation including a robotic system 

amounts to about 770,000 €.

8.5.2.5 Future Packaging Machinery Ordering Plans, 2002–2004 

Additional purchases of machines are planned for the next three years. A fixed budget has not been 

drawn up yet. However, a capital spending plan, which also includes packaging machinery, is budgeted 

every year. The plan for the next year will not be budgeted until summer. 


One of the most important factors regarding the choice of packaging machinery is the reliability of the 

machine, of the manufacturer, and of the service offered by the supplier. Flexible arrangements 

according to the company’s needs are also required. The machinery supplier must be cooperative, and 

the manufacturer’s proposals for ways of addressing the company’s requirements regarding 

applications have to be well designed, i.e. they must meet the company’s needs. This is especially 

important for special applications. 

A good and trusting cooperative relationship is essential in working out a joint solution, so that both 

sides can benefit from it. 

The engineering department at this site and finally the technical purchase department at the company’s 

headquarters decide on the purchase. The headquarters buys machinery for all production sites in 

Germany. Tenders are invited and potential suppliers are identified. Regarding very expensive 

purchases, the headquarters intervenes and gives tips, so that the company can incorporate in its 

decision the experiences that other production sites have had with certain machine types. 

Finally, three potential suppliers are invited in order to discuss and negotiate the specific requirements 

or necessary modifications. 

8.5.2.7 Factors That Influence Purchasing Decisions 

If all three suppliers offer similar machines, then the purchase decision will be made on the basis of 

price, although occasionally delivery time is also decisive. Delivery times that are too long are 

unacceptable because a delay in production leads to a much higher loss than the difference in price 

between individual tenders. 

The Internet is used as an investigation tool, but for the most part the company cannot get the 

information required. The most important companies have a homepage, and via the listed phone 

number, they can get in touch very quickly and effectively. 


They have no experiences with American packaging machines/suppliers yet. Although Company S has, 

as mentioned before, a new robot from Adept, it is not considered to be packaging machinery, i.e. 

robotics is not deemed to be packaging machinery. 

The relationship with the current machine supplier is good. Current suppliers are able to meet the needs 

of the company, so that they are totally satisfied with the cooperation. Nevertheless, the packaging 

market is constantly monitored to be aware of developments and news as early as possible. 

Each new supplier is considered a risk, but because companies also have to take a risk, all suppliers are 

considered as potential suppliers. Reliability of the machinery and the manufacturer are decisive 

factors, and these can only be evaluated after personal contact.

The attitude toward German packaging manufacturers is ambivalent. There are good packaging 

manufacturers, such as Schubert. Schubert machines are very reliable and innovative. With this very 

cooperative supplier, it is no problem to work out new solutions for Company S’s special needs. 

Experiences with other companies have not been so successful. 

With regard to technology, German and Swiss packaging machines are considered to be very good. 

Although British machines are good, they are still not as good as the German and Swiss. 

Machines from Germany, Italy, Switzerland, and Holland are very innovative. Regarding flexibility, 

German machines rank first, followed by the Dutch machines, which are rated as good. Machines from 

Switzerland are also fairly flexible, while the machines from Italy and GB are considered poor. 

Service by German and Swiss manufacturers is rated as good, whereas British manufacturers are rated 

mediocre. Italian manufacturers are bad regarding service, due to too long delivery times for spare parts 

and the language barrier, since in the main the technicians only speak Italian. 

No statements can be made about Dutch manufactures except that Company S had a less than 

satisfactory experience with the Dutch subsidiary of the Klöckner Group, the Klöckner Tevopharm. 

Italian packaging machines are quite cheap, and the price for British machines can be regarded as 

average. German packaging machinery is not the cheapest, but they offer very good value for the 

money due to their reliability and high quality. 

The cost/benefit ratio of Swiss machines is poor because they are quite expensive. 

8.5.2.9 Trade Show Attendance / Trade Publication Information 

Company S attemds the Hannover-Trade, Interpack, Fachpack, and Achema in Frankfurt to gather 

information. 


Packaging should become more and more exotic, i.e. imaginative, because that is an additional 

incentive for the customer to buy. Development in this sector is very fast: What is launched today will 

have disappeared by tomorrow. There is a trend toward enclosing extras, such as package inserts and 

small figures.

8.5.3 Lutz Fleischwaren AG 

Industry: Food 

Subsector: Sausage and meat products 

Location: Blumberg 

Size: (sales) 293.5 million € 

Web http://www.lutz-fleischwaren.de 


The company Lutz Fleischwaren AG was founded in 1891. Between 1961 and 1978, 5 production 

facilities were opened in Germany. Since 1965, the Lutz Fleischwaren AG is part of Südfleisch 

München, one of the biggest meat processing companies in Germany that, among others, supplies a big 

American fast food chain. 

In 2000, Südfleisch München had a turnover of 1.45 billion €, with an export share of 367 million €. 

Südfleisch München has 4,433 employees. 

At 7 locations in Germany, Lutz Fleischwaren AG produces a total of 65,500 tons of meat. In 2000, the 

turnover was 293.5 million € with 2,472 employees. 

The most important products are all sorts of spreads, various sausage specialties, convenience products, 

sausage and meat in tin cans, and frozen food. 

Lutz Fleischwaren AG exports worldwide. 



Schwarzwälder 

Schinken (Black 

forest ham) 

Lutz Gas-flushed package; 

100g up to 6000g 

Meat pie Lutz Tin cans 

Hotpot/ soup Lutz In synthetics and carton 

Small sausages Lutz Gas-flushed package; plastic bag 

� Round ham is packed with a Cryovac, because the pieces are too big for a gas-flushed 

packaging machine. Hams are vacuum-packed and molded together in plastic bags. 

� Smoked ham is either vacuum-packed in synthetic foil or packed with gas.



Average 

Age 

Tiromat Convenience Food Systems 

Gas-flushed packaging machine 

5 Germany 2–10 years 

Cryovac vacuum packaging machines N/A Germany N/A 

Innauen VC99 installation for shrinkage N/A Switzerland N/A 

8.5.3.4 Recent Purchases of Packaging Machinery 

The last machine installed was a Tiromat CFS from Germany, which cost around 600,000 €. A 

machine by the Spanish manufacturer Ulma has been ordered but not yet delivered. 


Each year, an investment plan is set up. This year, an Ulma from Spain has already been ordered. 

Additionally, a packaging machine by Tiromat CFS or a Multivac will be bought. 


The company tries to buy machines from a manufacturer whose machines are already installed. By so 

doing, spare part storage can be reduced. If another manufacturer offered this type of machine at a 

significant cost savings, the price would be decisive. The manager of the production department 

chooses the machines and makes the final decision together with the manager of the engineering 

department. For big investments, there is also a responsible person from the headquarters present. 

Machines are always purchased directly from the manufacturer. 


The company tells the manufacturer their specific needs and requirements, e.g. how fast the machine 

should work, packaging size, material, etc. After that, the manufacturers make proposals. If the 

manufacturer whose machines are already in use makes a good proposal, it is purchased. At the IFA 

(fair), the company looks for information about packaging machines. The Internet is used, too, for 

getting information, but as the machines can be very complex, the manufacturers cannot publish all 

details on the Internet. Each of the several production sites purchases independently. This means that 

the people who are responsible for the choice of machines at every individual production site can 

exchange their experiences. 


Lutz Fleischwaren has had no experience with American packaging machines because even the 

smallest parts (such as screws) cannot be replaced out of their own spare part inventory. This is why 

American manufacturers are definitely out of the question. 

German packaging machine manufacturers are very flexible and offer good service. Furthermore, the 

company has experience with Swiss packaging machines that offer good technology, service, and

innovations. However, they are considered expensive. Italian machines are technologically very good. 

In Germany, it is easy to communicate with the sales reps, but if a spare part is needed for an Italian 

machine, it has to be ordered directly from the manufacturer in Italy where nobody speaks German. 

That is why these machines were either scrapped or taken completely out of the process. 

Some time ago, the company needed a special machine and they looked at German, Spanish, and 

Japanese manufacturers. The Spanish model emerged as the least expensive. As yet, the company 

cannot judge the quality because this machine has not been installed yet. 


Lutz Fleischwaren AG regularly attends the IFA in Berlin and exhibits at the Anuga. 


Due to the increasing number of single households, there is a trend toward smaller packaging sizes. 

Smaller amounts of sausage are packed in such a decorative way that they can be placed directly on the 

dinner table. 


Company Name: Lutz Fleischwaren AG 

Contact: Mr. Morth 

Position Manager of the workshop 

Address Lutz Fleischwaren AG 

Waldshuter Str. 37 

78176 Blumberg 

Telephone: 07702-531-0 

Fax: 07702-531-200 

E-Mail: n/a

8.5.4 Company Z 


Subsector: Cakes and biscuits (cookies) 

Location: Northern Germany 


Web n/a 


Company Z is a European family enterprise that was founded more than 110 years ago with its 

headquarters in the North of Germany. The company is one of the market leaders for long-life cakes 

and cookies in Germany and one of the leading manufacturers of sweet biscuits in Europe. 

Today, the company produces its branded articles at eight production sites in Europe and exports its 

products to 80 countries all over the world. About 30% of the annual turnover is from exports; the most 

important markets are France, Austria, and Poland. The pace of expansion in the countries of the 

European trading area slowed down in the second half of 2000. This was mainly due to the faltering 

demand for consumer goods caused by an oil price–induced drain on purchasing power. 

There are five production sites spread across Germany, two production sites in France, and one 

production site in Poland. 

In 2000, the Company Z Group registered a net turnover of 0.53 billion €. Total sales volume 

amounted to 135,761 tons. Total investments (additions to tangible and intangible assets) amounted to 

36.8 million €. The parent company invested 27.5 million €. Considerable investment was made in 

new-product production plants. 

In 2000, the total labor force of the Company Z Group was about 3,900, adjusted for part-time 

employment. The foreign share in labor force was 25.4% on an annual average. 



Cookies N/A Folded wrap packaging 

Cookies N/A Plastic foil, tubular bag, folded box 

Poured products N/A In bags with vertical filling, plastic foil, stand-up 

pouch


Current Machinery Used Units Origin Average Age 

Full wrapping machine 

SIG 

N/A Switzerland N/A 

Full wrapping machine 

Petri 

Vertical and horizontal tubular 

bag packing machine 

SIG, Ilapak 


About 50 horizontal; 

About 30 vertical 

Germany, Great 

Britain 

Horizontal: 

between 1975 

and today; 

Vertical: between 

1995 and 2001 


The last two machines were purchased at the same time. A tray-loader was purchased for a production 

site in France to lay cookies in plastic trays. The machine is from Loesch, a German brand. 

Furthermore, a tubular bag packing machine has been purchased from SIG. 


Within the next 3 years, further machines will be purchased. For that purpose, there is a yearly budget 

of 5–10 million €. Depending on how the market will develop, the company will decide on precise 

purchases according to the situation. Company Z is likely to need further horizontal tubular bag 

packing machines and robot processors. 


There are efforts to create a machinery standard for all 5 sites in Germany and to include the 

production sites in foreign countries that are supervised from Germany. For that purpose, they are 

looking for a distributor who, if possible, offers the whole spectrum of packaging machinery. They will 

try to build a partnership in order that both sides can get to know each other better during the process. 

The company plans to switch and to exchange machinery between the different production sites. 

Therefore, it is desirable to find a single type of machinery or, if that is not possible, a distributor with 

identical devices. In that way, the stock of spare parts could be maintained at a low level, and training 

for service and maintenance of the machinery would become more and more infrequent. Training is 

always part of the whole package when purchasing machinery for optimum efficiency. 

Machinery and distributors are chosen by the technical department for all production sites in Germany. 

This department also decides on the final purchase. Company Z deals directly with the manufacturer. 

Leasing is very rare.


A factor that influences the purchasing decision is the technology standard. It must suit the 

requirements and it must be long-lasting. Another aspect is flexibility. This means reasonable service 

on site and low changeover times in relation to production. 

A positive aspect of the Internet is fast access to addresses of certain distributors. Since packaging 

machines are investment goods that are in need of an explanation and include a high percentage of 

customized equipment, the information provided by the Internet is not sufficient. 

There are always requirements that cannot be fulfilled by the present distributor. Packaging should be 

something special, that is why specially constructed machinery (i.e. custom-made) is often needed. 

Company Z modifies existing basic machinery so that no distributor has to build a completely new 

packaging machine. 

When choosing a new distributor, thorough know-how in the relevant area of production is requested 

so that the project can be carried out in a professional manner. Furthermore, the potential distributor 

must have knowledge of mechanical engineering and should provide references. 


The company has no experience with American packaging machinery or distributors as yet. 

Relationships with current machinery distributors are varied. There are good ones and bad ones. A 

good relationship is marked by continual contact, cooperation, flexibility, and innovation. Good, 

reliable service is essential. If all these criteria could be fulfilled by another distributor, it is self-evident 

for the company to take this distributor into consideration. 

It is not possible to make a universal statement about German packaging machinery as here there are 

differences as well. In general, German manufacturers are top-rank as far as technology is concerned. 

There are innovative companies everywhere, such as the German brand Schubert, IBM, Haudijk from 

the Netherlands, or the Italian manufacturer Cavanna. 


Company Z attends ISM, the confectionery fair, and visits the Interpack and Fachpack. 


In response to customers’ requirements, the tendency in Germany is toward smaller portion packs. 

Giant packs such as those in the United States are unimaginable in Germany, where the preference is 

for multipacks such as 5x30g.

8.5.5 Company X 


Subsector: Soups and convenience food 

Location: Schleswig-Holstein 

Size: (sales) 160 million units 

Web n/a 


Company X was founded in 1886 in Schleswig-Holstein. At first, the main focus lay in the processing 

of fruits coming from the surrounding farms. 

Nowadays, Company X is the market leader in the area of instant soups and hotpots as well as 

convenience food in cans and menu trays. About 160 million units per year leave the production 

facilities. The headquarters is situated in Schleswig-Holstein. 

Due to its high quality standards and large range, the company reached market leadership in 1974 in 

the area of hotpots and convenience food in cans; one year later it achieved a leading market position in 

the instant soups sector. Alongside its successful brand strategy, the company enlarged its production 

capacities and opened another production site in 1991. 

With continuous modernization and investments in the two production facilities, the traditional 

company is able to further extend its market leadership in the area of instant soups and hotpots. 

At the end of 1996, Company X was merged with the biggest soup company worldwide, the Campbell 

Soup Company (Camden/New Jersey, USA). 

Campbell Soup, founded in 1869 in Camden, is today active on 5 continents with 24,500 employees. 

Campbell products are sold in 120 countries worldwide. The main sector at Campbell’s, as at Company 

X, is soups and hotpots. 

The product range of Company X covers more than 200 different products, for example, hotpots, 

soups, convenience food in cans, and menu trays. 

In addition to dishes for the end-user, Company X also manufactures products for bulk consumption, 

because here too the demand for convenience products has steadily increased. Company X established 

itself successfully as a competent partner for customers in the areas of fine cuisine and system catering. 

The company provides large-scale consumers with soups, hotpots, and desserts that have been 

developed especially for this purpose. 

Company X has 650 employees in total, with 2 production sites in Northern Germany. They mainly 

export within Europe and to the United States. 



Convenience food Cans, 425ml, 850ml


For filling cans, packaging machinery from the French company Hema and the Italian company Bellini 

is installed. For other packaging purposes, the company has machinery from Kisters. 


Average 

Age 

Hema filling machines 3 France 2 and 1 year 

Bellini filling machines 4 Italy 2 years 

Kisters 2 Germany 6 and 4 years 


The most recent packaging machinery purchased by Company X was a French Hema. The costs were 

about 200,000 €. 


Within the next 3 years, no purchases of new packaging machinery are specifically planned. In fact, a 

budget for new acquisition is planned, but it always depends on the projects to be carried out. Further 

types of machinery will be needed eventually, such as machines for palletizing and stretch film 

wrapping machines. For that purpose, Company X is keeping Jagenberg (Germany) in view. 


Current purchasing policies indicate that there is a tendency toward unification of the types of 

machinery. On one hand, this would simplify the service/maintenance, and on the other hand it would 

permit a small spare part supply inventory. 

Concerning investments into new machinery, there are various decisions. This depends on different 

factors. First of all, there is the backup procurement for old machinery. Through new acquisitions, there 

can be benefits because synergies can be used successfully. Furthermore, new customer requirements 

make new investments inevitable. 

Machinery and suppliers are chosen by the engineering department, which means that the engineering 

department makes the final decision in cooperation with the technical purchase department. 


Before making a decision, the engineering department has a thorough look at the ease of maintenance, 

flexibility, and construction. In addition, technological and technical questions related to control, 

electrical, and electro-technical criteria are considered. If all these criteria are fulfilled, the machinery 

will be purchased. 

The Internet is only used in case of need or when the planning is yet not very advanced and the 

company is just looking for general information. There has not been one case yet where the Internet 

was a vital help. Company X rarely uses standard machinery (“run of the mill”) because for their needs 

it is necessary to modify the machinery according to their own requirements.

The current distributor has so far been able to fulfill all the company’s needs. New distributors are 

viewed at their own sites. 


So far, Company X has no experience with American packaging machinery or distributors. 

They will think about a new distributor when the current one can no longer fulfill their needs. 

German packaging machinery is basically of a high technological quality. For their own requirements, 

however, Company X could not find suitable packaging machinery, either in the food sector or in the 

service sector. As to innovations, German packaging machinery is rated relatively highly. In addition to 

high flexibility and good service, value for the money is moderate. 

The respondent could not provide any opinions about American machinery because he has had no 

experience with it. 

As to technology and innovations, French packaging machinery is considered to be average. 

Flexibility, cost/benefit ratio, and service are judged to be of a high standard. 


Company X attends the Anuga and the Hannover-Messe, and they regularly visit the Interpack.

8.5.6 Company N 


Subsector: Frozen products 

Location: Bremerhaven 

Size: (sales) 274 million € 

Web n/a 


Company N in Bremerhaven is one of the key players on the German market for frozen products, 

especially vegetables and ready-made menus. They have a staff of 1,200 in Germany in three 

production sites in Bremerhaven, Bobenheim, and Lommatzsch. They have further production sites in 

France and in Eastern Europe. In 2001, they had a turnover of 274 million €. 



Frozen products from 

vegetables to desserts 


N/A Tubular bag packaging, 

cardboard boxes 


Bosch packaging machinery N/A German between 6 months 

and 10 years 

Meurer packaging machinery N/A German N/A 


The last machinery purchased was a Bosch machine half a year ago. 


The company will definitely purchase new machinery within the next two years because part of the 

existing machinery is already quite old. 


New machinery is purchased because the company has developed new products with a new package 

design. New machinery is more efficient and faster than old equipment, too. Purchases are decided 

upon by a project team with project engineers and employees from the production and purchasing 

departments. They choose suppliers and machinery and then the decision is made by vote.

The company is trying to have only a limited number of suppliers for all production sites in Germany. 

Therefore, the project group has to stick to this list of suppliers. The company purchases directly from 

the manufacturer and pays directly. 


The company pays great attention to after-sales service, i.e. the complete technical support they will get 

from a certain supplier. They expect the supplier to react to a request within 24 hours regardless of 

whether a defect has caused a production standstill or not. They will only purchase from a supplier with 

at least five technicians, because they think that with fewer available technicians the risk of not 

reaching the relevant individual is too high. 

They do not use the Internet to get information about new machinery because personal contact with the 

manufacturers is considered to be a better and faster way to get valid information. 


The company has had a North American supplier, but they will never use this supplier again, maybe 

not even any American supplier. Everything was far more complicated and took too long. Customer 

service did not meet requirements, and the reaction time was far longer than they expected it to be. 

The company’s relationship to the suppliers is good in general, apart from minor technical flaws that 

are not that important. Dutch manufacturers of machinery are considered to be the best on the market. 

They are mostly smaller companies, and they are not only innovative in their production but also very 

innovative in their after-sales service. They even have a support hotline, which can diagnose and 

correct defects in the machine’s control system via Internet. Especially in this area the company needs 

a 24-hour support service because they do not have specially trained staff. 

German suppliers tend to have problems with this 24-hour service because of the unions: 

“After an eight hour drive to the company, a technician is not allowed to repair the defect. He has to 

have a break first. Dutch or Belgian technicians would do their work, regardless of how long they 

drove. But this is changing, too: the unions are becoming more powerful in the Netherlands and 

Belgium. And with machinery from Great Britain it is worse, since it takes the technicians even longer 

to get here. The rest of Europe is not really any better.” 

Prices and value for the money are almost always relatively equal because the market is becoming 

more and more transparent. 


The company visits the Fachpack, the Interpack, the Intercool in Düsseldorf, and a trade show for fish 

in Brussels. 

8.5.6.10 Trends in Packaging 

One of the most important trends is module technology. If you buy a machine today, it will be tailormade 

to your specifications. With module-technology, you are able to select from a variety of four or 

five machinery options that work in concert with the same basic components in the same way as in the 

car industry. The manufacturers are working on this concept, especially Bosch und Meurer.

In the packaging industry the big change will be in materials for the packaging of convenience 

products. At the moment, the company is working with aluminum trays. However, within the next few 

years there will be new, more environmentally friendly materials that will change the market. 

In the control system of machines, PC-based steering will slowly replace S 7 steering by Siemens. The 

great advantage is that the engineers can react more flexibly. With the S 7 steering, in most companies 

only one operating manager can program it. With the PC the problem will be that most companies will 

not have enough trained staff for these computer programs. There will be a great need for qualified 

staff.

8.5.7 Company R 


Subindustry: Meat, sausage, delicatessen products 

Location: North Germany 

Size: (sales) Approx. 250 million € 

Web n/a 


Company R was founded in 1865. In 1980, two delicatessen brands were acquired; in 1999, the 

company was merged with a larger group producing meat, sausage, and delicatessen articles. 

The latter group produces 62,000 tons of meat and sausage products a year with a workforce of 

approximately 1,500. The management puts sales at around 250 million €. The majority is generated by 

a meat factory that does not operate under the brand names of Company R. 

Company R employs approximately 300–400 employees in three German plants. 

Exports are mainly to countries within Europe, although some exports are also sent outside Europe. 



(Liver) pâté N/A Tins 

Sausages N/A PVC trays in sizes from 500 g to 

2000 g; other products in their own 

skin and then in cartons 

Sliced cold meats N/A 100g in printed film 

Soups N/A Tins 

Mini salami N/A Aluminum foil 



Multivac rollstock machine 15 Germany N/A 

Fuji bag filling machine 2 Japan N/A 

Tiromat 2 Germany N/A


A Multivac R 530 has just been purchased. This is a rollstock machine that automatically produces 

thermoformed packs by sealing the formable lower web to an upper web. 


New packaging machines are constantly being purchased to replace old machinery or to be able to 

package new products. Purchases are made according to need, for example, if the customer wants new 

packaging sizes. No budget is fixed or even planned ahead for three years, because it is not possible to 

predict how the market will develop. 


The main focus is on cost/benefit ratio, customer service, and servicing of the packaging machines. 

Tenders are obtained by the technical director. However, the final decision is made by the group’s 

president. The packaging machines are purchased directly from the manufacturers; payments are also 

made directly. No machines are leased. 


Manufacturers usually call Company R directly and invite those persons responsible for purchasing to 

demonstrations of the packaging machines. Company R has excellent experience with Multivac 

products as far as functional reliability and service are concerned, so this manufacturer is usually 

consulted first. 


The company has used some American machines for many years now. The mechanical systems in 

Warrick and Rexam machines are assessed as good and very robust. Unlike German makes, they 

operate with very little electronics, so the company is able to install some spare parts itself. However, 

this is also necessary, because Rexam does not have any agents in Germany or in neighboring 

countries, and all parts required must be ordered directly from the United States. This takes from 1 to 2 

months, and any stoppage of the machine in that period is financially unacceptable. Spare parts for the 

Warrick machine can be ordered from an agent in the Netherlands. When these packaging machines 

were purchased many years ago, there were no competitors on the German market who could build 

machines of this standard. However, it cannot be assumed that new machines to be purchased will be 

American, because European companies are now building similar machines. Another disadvantage of 

American machines is that they do not conform to the metric system. All in all, American machines are 

considered to be technologically less advanced but robust. 

In general, packaging machines from Germany are viewed as technologically advanced, whereby there 

are some good and some less good makes. The same statement can be made about service. Flexibility 

of the machines is not such a priority within the industry, because modifying machines is thought to 

involve too much time, effort, and cost. Company R has contrasting experience with German makes 

and, for that reason confines itself as far as possible to machines made by Multivac, whose service and 

functional reliability are excellent. Price-wise, German packaging machines are on about the same level 

as foreign manufacturers. 

Alternative suppliers are considered when the machines presented are interesting for the company.


Company R has its own exhibit at the Anuga fair and at the Grüne Woche in Berlin. Company staff 

attend the IFA fair in Frankfurt and the Interpack. 


One trend in the field of meat and sausage production is toward gas-filled packaging rather than 

vacuum packaging.

8.5.8 Stollwerck AG 


Subsector: Chocolate, pastries, pralines 

Location: Cologne 


Web www.stollwerck.de 


The Stollwerck brand name has been in existence since as early as 1839. In 1902, Stollwerck changed 

its legal form to that of a public limited company. The Group is one of the most important producers of 

chocolate and pralines in Europe. In the market for tablet chocolate, Stollwerck AG is ranked second in 

Germany. 

In 1964, the Swiss chocolate company Alprose was taken over, followed in 1969 by the acquisition of 

Germany’s oldest chocolate factory, namely Hildebrand in Berlin. In 1976, Stollwerck acquired the 

Waldbauer company (in Germany), with its well-known brands. This was followed in 1979 by the 

takeover of Sprengel, one of Germany’s best-known chocolate companies (established in 1851). After 

acquiring Schubert (marzipan) in 1981, 1982 saw the merger with Jacques Chocolaterie S.A. from 

Belgium, a leading manufacturer of tablet chocolate. These acquisitions were followed by expansion 

into the former COMECON countries, where Stollwerck went on to acquire additional companies. 

The most important acquisition of all, however, was that of the Sarotti brand from the Nestlé group in 

1997. After Stollwerck had become one of the first companies with active operations in eastern Europe 

and market leader there in many product segments, the entire eastern European business was sold to 

Kraft Foods Inc. in 2001. Armed with the proceeds from this sale (around 75 million €), the Group is 

now planning to expand its business activities in the core markets of western and southern Europe as 

well as in the United States. 

Stollwerck AG generated sales of 7.16 billion € in 2000. Around 23% of that total was made in eastern 

Europe, compared to 14.1% in western and southern Europe. Germany accounted for a 61.4% share of 

total sales. Stollwerk employs approximately 4,000 employees at 13 production sites (including Berlin, 

Cologne, Wurzen, Saalfeld), plus two production and distribution centers in Belgium and Switzerland.



Tablet chocolate Alpia, Alprose, 

Sarotti, Waldbaur, 

Kernbeisser, 

Stollwerk 

Pralines Sprengel, Gubor, 

Sarotti 

Raisins covered in 

finest milk 

chocolate 

Tablet wrappings, folded boxes 

for 100–250g cardboard 

wrappers 

Folded boxes, cardboard 

wrappers 

Various Composite film for bags 

measuring: 260mm x 150–290 

mm; Filled bags are conveyed 

to a case packer and 

subsequently sealed in a 

closing machine/cover locker. 

The cases are then palletized. 

Marzipan Various Composite, aluminum, twist 

films, 25–500g 


Chocolate-coated tablets, some with nuts 


Optima weighing machine 3 Germany N/A 

Rovema horizontal tubular bag 

packaging machine 

2 Germany N/A 

Bosch horizontal tubular bag 

packaging 


J+P case packer N/A Germany N/A 

NRRE cartoning machine N/A Dutch 10 years 

Closing machine / Cover locker 2 Sweden 2–3 years 

Kleinkopf palletizer 2 Germany 3–4 years 

Innotech vertical tubular bag 

packaging machine 


Schubert carton erector N/A Germany 10 years 

Schubert closing machine N/A Germany 10 years

Chocolate tablets 


Average 

Age 

Klöckner Hänsel machine Various Germany N/A 

Klöckner Hänsel cartoning 

machine 7034 

Hamberger flexible gondola 

storage system 

Tevopharm (Klöckner Hänsel 

horizontal bag filling machine) 

Marzipan 




3 Dutch 30 years 

Average 

Age 

Rasch enveloping machines 8 Germany N/A 

Klöckner Hänsel 2 Germany N/A 

Wenz bag filling machine for 

block bottom packaging 


Knecht labeling machine N/A Germany N/A 


Two years ago, a Sollich plant (Germany) was purchased in which nuts and raisins are coated with 

chocolate and packaged. The plant comprises several separate machines. 


There is a fixed budget, amount unknown, and purchases of new machines are planned each year. 

Marzipan production has just been taken over by a plant in Hanover. The machines there are very old, 

so new ones have to be procured. There had been plans to buy an entire packaging unit for other 

articles, but due to the fact that marzipan production is now being moved to Berlin, this planned 

purchase has been postponed to next year. Given that the other 13 sites also buy machines from this 

same budget, the company will respond flexibly to unforeseen situations. 


No particular strategy is pursued. Firms receive specifications of what the machines must be able to do. 

In some cases, products and the appropriate packaging material are sent to potential suppliers. Cost 

estimates are obtained and negotiations held. The machines that seem best tailored to the company’s 

needs are short-listed.

“I wouldn’t deny that price is a key factor, since one of my responsibilities is to source the least 

expensive companies; however, packaging machines in the confectionery industry are very large, and 

the space available limited, so this [space] aspect is even more important. In some cases, machines 

have to be modified so that it is possible to walk around them. Another critical factor is the flexibility of 

the machines. It must be possible to switch them to other packaging sizes in a short space of time.” 

The manager of the packaging technology department looks for the right machines. From a certain size 

upwards, the head buyer at the Cologne headquarters decides; in the case of smaller machines, the plant 

in Berlin can decide on its own what to purchase. 

The suppliers vary. Swiss manufacturers send sales representatives. Other manufacturers, too, send 

sales representatives. Tenders are usually drafted by mechanical engineers. Leasing of machines is an 

option only for promotion articles used for a short period, but not for expensive packaging machines. 

These are always purchased. The only machines that one could lease are small labeling or stretch 

wrapping machines. 


“We have a machine here that could output about two tons of chocolate an hour for packaging. We 

then think about whether it makes sense to have a high-performance machine that can just about 

handle this volume, or to attach two packaging machines with lower performance, because if the one 

big machine breaks down we have to stop production. On the other hand, if we had two machines and 

one broke down, production could continue at a slower pace. So we have to weigh whether we can 

afford to stop production entirely for this particular article, or whether we should integrate a storage 

system that collects the products, or whether we should just purchase two less powerful packaging 

machines right away. Some older machines can also be modified. We calculate the labor and 

modification costs so that we can then decide which alternative is least expensive. That decision is 

always dependent on the specific task.” 

“We need special-purpose machines that one cannot get information about over the Internet. In the 

case of palletizers, information can be obtained on the Internet. However, I’ve been in this business for 

so long that I know the relevant companies and their representatives personally, and can get the 

information I want more quickly by making a phone call. You read about new firms in trade journals or 

in brochures sent by manufacturers, and you do your research—basically that is our responsibility. I 

would find out what I could about unknown companies and suppliers, ask other firms about their 

experience and ask for a list of references.” 


The packaging technology manager has no experience with American packaging machines / suppliers. 

In his opinion, German manufacturers make greater efforts when it comes to modifications, more so 

than Swiss or Italians, because the demand for packaging machines is not very great, since the 

machines are very durable and can therefore be used for a long time. 

Swiss packaging machines are very expensive, but their performance level is also very high. Of course, 

there are also less expensive machines from Switzerland—not the latest models, but good as far as 

value for the money is concerned. In the confectionery industry, Italian and Swiss packaging machines 

are more advanced and more innovative technologically and with reference to performance than 

German machines are.

“In many cases, high-performance machines, e.g. tubular bag filling machines, cannot be run at full 

speed, because otherwise the packaging would be grazed or scratched. This means that these 

expensive, high-performance machines are not necessary for certain articles and that the German 

machines that meet our needs are less expensive. The problem in our industry is the low profit margins, 

which is why machines are used for a very long time.” 

In general, the service provided by German manufacturers is very good, but so is that of the Swiss. 

Italian manufacturers have meanwhile expanded their distribution network in Germany and provide 

good service to their customers. 


The Interpack and Hanover fairs are visited. 


There is a fluctuating trend as far as film or cartons are concerned. The retail trade would like as little 

packaging as possible. The best option for retailers would be to provide transport packaging that can be 

opened easily by the store staff and placed directly in the sales area as a means of presentation of the 

goods. Cartons should at least be easy to open, or they should be palletized without lids or tops. For 

cost reasons, too, the trend now is away from elaborate packaging, because this is expensive both to 

make and dispose of. New packaging machines will certainly have to be developed, or old machines 

will have to be modified to meet these requirements. 


Company Name: Stollwerck AG 

Contact: Mr. Nickel 

Position: Director of Packaging Department 

Address: Stollwerck AG 

Stollwerckstraße 27-31 

51149 Cologne 

Telephone: 02203-43-0 

Telephone Mr. Nickel: 030-7209010 

Fax: 02203-43432 

E-Mail: n/a 

Web site: www.stollwerck.de

8.5.9 Company P 


Subsector: Pasta 

Location: Munich 

Size: (sales) 30,000 tons of pasta 

Web n/a 


Company P is a family-run business in Munich. It was founded in the 19 th century as a bakery and 

started producing pasta in 1898. In 1935 they moved to a modern production site where they are still 

producing pasta today. With a staff of 150 they produced 30,000 tons of pasta in 2001. 



Pasta N/A Tubular bags 



Average 

Age 

Bosch 18 German 5–27 years 

Rovema 2 German 5 years 


The last machine purchased was a Bosch tubular bag packing machine. 


When purchasing new machinery, Company P is looking for increases in efficiency. This means less 

staff to operate the machinery, higher levels of performance, more efficient machinery utilization, and 

savings in materials. If this can be done by means of upgrading existing machinery by purchasing 

additional parts, then this course of action is also adopted. 

The decision to purchase machinery is made by the operations manager and the company’s 

management. They normally buy directly from the manufacturer.


The logistical capability of the manufacturer is decisive, i.e. the service, quick delivery of spare parts, 

and the manufacturer’s reaction time to requests for repairs. Normally, the company expects their 

suppliers to react immediately to any urgent request. Therefore, the company prefers that their 

suppliers are in Germany or at least have German customer service, so a technician can be at the 

production site shortly after the request. 

Production safety is equally important, i.e. how the machine is working in other companies and 

whether it is working as efficiently as promised. 

Market development is also taken into consideration. The machine has to match the demands that 

might occur in two or three years, otherwise it would not be cost-effective. They are not using the 

Internet regularly to look at new machines. 


They do not have any experience with packaging machinery from North America. 

The German manufacturers have a positive image in this company. They are considered to be very 

innovative and flexible. Service, spare-parts delivery, and availability are further positive factors. The 

experiences they had with Italian manufacturers were not as good. Different from the Germans, the 

reaction time was much longer, the availability of spare parts was worse, and they had difficulties 

communicating with the manufacturer because of language problems. This is why they decided to buy 

predominantly German machinery. 


The company visits the Interpack and the Fachpack and is represented at different food trade fairs. 


The trend in packaging machinery is toward more flexible machines that can pack products in a whole 

range of tubular bag packaging. They should be capable of being changed over easily and in a short 

time and should be reliable.

8.5.10 Company Q 


Subsector: Meat 

Location: Herten (headquarters) 


Web n/a 


Company Q was founded in 1897 as a butcher’s shop in Herten. In 1902 they specialized in ham and 

sausages and opened their first industrial production site. They developed the flat packaging for 

sausages in slices for the first self-service retailers. In 1964 they expanded to France and later to Italy. 

Since 1986 they have been part of the Nestlé Group. They are producing at three sites in Germany, in 

Berlin, Herten, and Neuenkirchen. They export to the European market. 



Sliced ham n/a Vacuum packaging 

Ham n/a Vacuum packaging 

Sausage n/a Vacuum packaging 



Multivac Air 7000 About 15 German Up to 15 years 

Multivac Air 530 About 10 German Up to 5 years 


The last machine ordered was a Multivac in 2001. Costs were in the area of six digits including repair 

equipment. 


At the moment there is no new purchase planned. Depending on the market and changes in the 

production range, further purchases might become necessary with the allocated annual budget. 

Investment decisions are made according to needs: There is no special budget for packaging machines.


In most cases machinery is bought as a substitute for older machinery, but as packaging is getting more 

diverse it is also necessary for the machinery to be more flexible. Greater flexibility is sometimes only 

possible with new machinery. The purchase of machinery depends on the company’s needs. The 

company tends to buy from Multivac because of their good experiences with the after-sales service. 

Decision-making is based on a variety of issues such as costs or how well the machine will work within 

a given system. The company’s management finally decides about the purchase. They buy directly 

from the manufacturer. 


Very important points are reliable customer service, good spare-part stocks, short delivery times, and 

the reliability of the machinery. The company expects spare parts to be delivered in less than 24 hours. 

If the part has to be specially made for them, the delivery time can be up to 2 months. The company 

does not use the Internet to inform themselves about new machinery. They know the relevant 

manufacturers and their sales reps already. They meet at trade fairs, talk about new projects, and 

receive offers. 


New manufacturers are viewed very critically. It is not very easy to become a supplier of Company Q. 

They would have to be better than the company’s existing suppliers. In general the company is quite 

satisfied with their suppliers at the moment, even if there are minor problems sometimes. However, 

these problems are not big enough to make the company switch suppliers. They have a very close 

relationship with their suppliers so that in a case of a problem the manufacturer can react fast. 

Company Q has nearly no experience with foreign manufacturers nor German manufacturers other than 

Multivac. In general they think that German machinery is quite flexible. When ordering machinery the 

company specifies the flexibility they expect so that they can ensure that the expectations are met. 

Because Multivac has a good turnover worldwide, the company thinks that the price must be 

competitive. 


They visit the Fachpack and Interpack. 


The trend is toward machinery with a higher level of performance that is faster and more efficient.

8.5.11 Company W 


Subsector: Frozen products 

Location: Nonnweiler-Braunshausen 


Web n/a 


Company W was founded in 1969. Ten years later they specialized entirely in frozen pizza. Thanks to 

new production methods, the company is one of the leaders in the market for frozen convenience 

products. They have two production sites with a staff of about 1,000. 



Frozen pizza N/A Frozen in PE foil and 

cardboard box 

Fresh yeast dough N/A Frozen in PE foil and 

cardboard box 

Quiche Lorraine N/A Frozen in PE foil and 

cardboard box 



Average 

Age 

Horizontal food packaging 

machines from Ilapak 


Horizontal food packaging 

machines from Opern S.R.L 

Full wrapping machines from 

Pisha 

2 Italian under 3 years 

N/A Germany 3–4 years 

Cartoning machine from Meurer N/A Germany 3–5 years 

Cartoning machine from Dienst N/A Germany 2–5 years 


The last purchase was a cartoning machine from Dienst.


At the moment, the company is negotiating with a Swiss manufacturer. Step by step, the two packaging 

machines have to be replaced over the next few years. 


Principal reasons for the purchase of new packaging machinery are new product developments and new 

packaging techniques. The selection process is done by the technical department and the production 

department because the technical demands are decisive for the purchase. The coordination is done by a 

project manager, and the final decision is made by the board. 

The company buys directly from the manufacturer. 


The main reason for the purchasing of a special machine is performance. The company requires 120 

units per minute. Not all machines can do that. In addition the supplier has to fulfill the service criteria. 

They need technicians from the manufacturer after the purchase but because internal technicians are 

available 24 hours a day the company does not necessarily depend on their suppliers’ technical support. 

If a technician is needed they expect him to react in 12 hours if the fault results in a standstill in 

production. If spare parts have to be manufactured specifically, they are prepared to wait for two days. 

In addition the functionality and flexibility are important. Nowadays, a company cannot afford to have 

machinery that can only do one thing. There can be an exception from this rule when the machines are 

so fast or when the output of units is so high that the machine is profitable even without flexibility. 

Also important is the documentation that comes with the machine. There is no justification in buying a 

machine the staff cannot work with. A common problem is that the controls of the machine are not 

compatible with the rest of the machinery. Because this is such a common problem, Company W 

depends on staff to repair this. 


The company is quite satisfied with their suppliers. Overall the Italians are leading the market for 

tubular packaging machines in Europe, at least in the horizontal food packaging area. The German 

horizontal tubular packaging machines are not very fast. The quality of the German and Italian 

machines is equal. With Italian manufacturers service is always a big problem. The manufacturers tend 

to make big promises (for instance, in the area of reaction time and spare part deliveries), which are not 

kept: 

“With German manufacturers this is far better. First we do not have a language barrier between us, 

and second it is no problem to be there in a day if you are in Germany.” 

All manufacturers promise flexibility nowadays and all manufacturers fulfill this requirement. 

On the subject of Swiss manufacturers, the overall quality of the machines is very high and the staff is 

very competent. The Swiss never make promises they cannot keep. They test it first and then you get 

the things you ordered. 


They visit the Fachpack, Interpack and the Hannover Messe, They are represented at the ANUGA and 

the food trade fair in Paris.


Although with pizza the packaging will not change a lot during the next few years, it is possible that 

with other products PE foil will become more popular.

8.5.12 Company H 


Subsector: Confectionery 

Location: South Germany 

Size: (sales) 250–300 million € 

Web n/a 


Company H produces confectionery, especially chocolate. Their main focus is chocolate and chocolate 

bars. Further products are peanut bars and chocolate rice biscuits or cookies. 

The company was founded in 1951. There are several sites in Europe, e.g. in Spain, the Netherlands, 

Austria, France, and two big sites in Ghana. In Germany, there are three sites in total. The headquarters 

is in Southern Germany and there are subsidiaries in Hamburg and Berlin. 130 employees work in the 

headquarters, and about 300 throughout Germany. The company is independent. 

Last year’s total turnover amounted to 250–300 million €. The products are exported worldwide, but 

especially within Europe. 


95% of the products are packed in tubular bags. Product sizes range between smaller bars of 30g up to 

250g. 


Peanut bar N/A Tubular bags (foil) 

Chocolate bar N/A N/A 

Chocolate rice 

cookie 

N/A Tubular bags (foil) and plastic 

trays



Average 

Age 

Horizontal tubular bag machine 

Tevopharm (80%) 

N/A Netherlands 10–15 years 

SIG N/A Germany N/A 

Horizontal tubular bag machine 

Bosch 

Molding plants for chocolate 

Loesch 

Full wrapping machine (foil) 

Cavanna 

2 Germany 2 years 


1 Italy N/A 


A Bosch horizontal tubular bag machine was purchased about 2 years ago for 80,000 €. 


It is impossible to foresee the next 3 years in this trade because the market determines events. The 

purchase of packaging machinery is always dependent on the products that are put on the market. One 

cannot plan it in advance. That is why the company does not have a fixed budget for packaging 

machinery. 


Tevopharm is contacted first when Company H is in need of new machinery. Apart from that, fairs are 

visited to keep up to date about innovations on the market. Furthermore, sales representatives show up 

regularly. 

New machinery is purchased for economic reasons. The technical department selects the machinery. 

The management of the company makes the final decision. 

Packaging machinery is obtained directly from the manufacturer. The payment takes place in several 

steps. One part is paid when the machine is ordered, another part is paid on delivery. 


It is only value for the money that influences the purchasing decision. Service and maintenance are not 

purchasing criteria because in 90% of all cases, these are undertaken by in-house employees. For more 

than 30 years now, packaging machinery has been obtained from Tevopharm and till this day they have 

had only good experiences with that company and the products. This is why about 80% of the 

machinery comes from Tevopharm.

The Internet is not used for information on packaging machinery. 


There is no experience with American packaging machinery/distributors. For switching to an American 

manufacturer, either prices must be significantly lower or the machinery must not be available on the 

European market. They only use American inkjet printers for printing on foil. 

Only a few machines from Germany are installed, but the technical department is very satisfied with 

these few. The maintenance of packaging machines from Bosch is not so easy because their 

construction is a little complicated. However, they are very good and flexible. 

About 20 years ago, they installed a Rose Forgrove packaging machine, which worked very well. 

However, as this machine was not built within the metric system, there were a number of problems and 

it was replaced by other machines. 

With regard to flexibility, the company has had good experience with a Cavanna from Italy. 


They attend the confectionery fair ISM in Cologne. Furthermore, they visit the Fachpack in Nürnberg 

and the Interpack in Düsseldorf.

8.5.13 Company V 


Subsector: Cocoa and chocolate products 

Location: Schleswig-Holstein 


Web n/a 


Company V was founded in Switzerland in 1828, and in 1850 it began exporting to England, France, 

and Germany. Between 1918 and 1960, Company V set up manufacturing plants in Germany, France, 

England, and Singapore. 

Company V is part of the Company 12 Group, the world’s leading manufacturer of high-quality cocoa 

and chocolate products with annual sales of CHF 2.5 billion (Swiss francs). The company processes 

14% of the global cocoa harvest, operates 24 production facilities in 16 countries and employs about 

5,000 people. It is organized into the business areas Cocoa & Sourcing (Risk Management, Sourcing & 

Semi-Finished Products), Chocolate for Industrial Clients (Food Manufacturers), Gourmet & 

Specialties (Food Service), and Consumer Products. Company V’s clients range from industrial 

processors, such as the world-famous branded consumer goods manufacturers who produce chocolate, 

confectionery, cookies, dairy products, ice cream, and breakfast cereals incorporating the company’s 

products, to hotels, gourmet chefs, chocolate makers, pastry chefs, and bakers. 

Company V is one of the most important production sites in Europe and its product range covers 

chocolate and chocolate coverings, compound coatings, powders, decorative products, baking 

ingredients, fillings, nut products, colored and flavored products, and semi-finished products. 

Company V produces for two of the largest German retail chains, among others. Exports account for 

18–19% of total sales in Germany; total sales amount to around 77 million €. 



(Chocolate) tablet 

business 

N/A Aluminum/paper composite 

Seasonal articles N/A Hollow articles with different 

(Easter, Christmas) 

liquid fillings, wrapped in 

aluminum or OPP film, then 

packaged in boxes or bags 


No statements regarding packaging machines were made—this is deemed a trade secret. In total, 

approximately 30 different machine types are installed.


The last machine that was bought was a tubular bag filling machine. 


New machines are purchased on a regular basis. Machines are permanently being replaced in certain 

cycles, depending on the private-label market served by Company V. The budget is determined by 

performance figures (age of the machines) and utilization figures. 


Purchasing and supplier selection is based on whether the potential supplier complies with the 

company’s requirements profile. The key factors here are particular directives for food machines, 

standard requirements with regard to machine components, and the service level provided by the 

manufacturer. Machines and manufacturers are selected by the technical department, but final 

purchasing decisions are made by top management. 

Machines are purchased both directly from the manufacturer and from distributors and are paid for 

immediately. 


The factors with the most influence on the decision to buy are service, machine performance, flexibility 

of the machines, price, and delivery reliability. They usually buy machines that can be enlarged or 

modified, i.e. that are adaptable to future uses. 

The Internet is used to gain an initial impression of a particular company. The positive aspect here is 

that no paperwork is involved. One negative and striking aspect is that search results are still too 

global, with a great deal of superfluous or useless material as well. It would be much better if sources 

were structured like a trade fair catalog. 

When a new supplier is being investigated, a major role is played by its position in the world market— 

i.e. how many plants/machines are in existence globally. In this way, comparisons can be made with 

other manufacturers. A broad-based presence is a sign of reliability. 


So far, Company V has gained no experience with American packaging machines or suppliers. Nor 

does it intend to. They are not flexible enough to meet the needs of Company V and do not comply 

with European standards. Criticism is also voiced about the short service life of American machines. 

German manufacturers and machines excel through high supplier loyalty, ideal service provision, 

precise construction, quality, and good value for the money. With regard to innovations, only the Dutch 

machines are better. 

Italian, British, and Danish machines are assessed as technologically advanced and innovative, 

although manufacturers from Italy and Great Britain have problems in the service field due to language 

barriers. Danish, Swiss, and Dutch manufacturers provide good service because there are no language 

problems here. 

The service provided by Italian, French, and American manufacturers is referred to as “pathetic” and is 

unacceptable when stand-by times are 24 hours.


Company V is represented at fairs to only a sporadic extent. Interpack is regularly attended, Achema 

and Fachpack in most cases; fairs in Chicago and Milan are visited from time to time. 


In the view of Company V, the firms that will assert themselves and survive on the market will be 

those who excel through high flexibility, good service orientation and user-friendliness, good value for 

the money, and reasonable delivery times (a maximum of 6 months).

8.5.14 Company B 


Subsector: Processing of fruits 

Location: 64747 Breuberg 


Web n/a 


Company B is one of the leading companies in fruit processing in Germany. The company was 

founded in 1965. Since that date, the product range has been extended continuously. 

In 1991, Company B was taken over by a big French group. 

Company B employs a total of 220 people, with a turnover of 75 million € in 2001. Products are 

mainly exported to France but also to other European countries and the United States. 



Apple purée N/A 720 ml glass nonreturnable 

Morello N/A 720 ml glass nonreturnable 



Average 

Age 

Meypack filling machine 1 Germany 2 years 

Wächter 2 Germany 10 years 

Breda 2 Netherlands 15 years 


16% of the total capital expenditure, i.e. 2 million €, was spent on purchasing packaging machinery. 


Within the next 3 years, no purchase of new packaging machinery is planned. Therefore, there is no 

fixed budget. Otherwise, when considering a purchase, the machinery must be able to run continuously.


In order to develop a purchasing strategy, existing machinery is reviewed first on performance and 

lifetime. Secondly, running costs are analyzed. According to these criteria, the technical department 

selects equivalent new machinery. The final purchase decision is made by the factory manager. 

Machinery is purchased directly from the manufacturer and is financed with long-term loans. 


Performance has the biggest influence on the purchasing decision. In addition, operating costs, e.g. 

electric power consumption or compressed air consumption, are important criteria as well as the price. 

Company B uses the Internet mainly as a source of information. However, information is difficult to 

find, and in general, the Web sites are not very systematic. A positive aspect is that the manufacturers 

are easy to locate. 

German suppliers are reliable, and they are able to meet the requirements of Company B. A new 

supplier must be equally reliable with regard to high German quality standards. 


So far, the company’s experience with American packaging machines has only been in relation to a 

filling machine. The company was very satisfied. 

The company does not wish to give detailed information about current suppliers, for reasons of 

confidentiality. Company B states that once a year talks take place with their suppliers. A new supplier 

definitely would be considered if they offered good value for the money. 

Company B is very satisfied with German packaging machines. The German manufacturer Meypack 

has already carried out modifications for them, according to their specifications, and was very 

cooperative. 

Kisters machines are also rated fairly highly in terms of quality because they are progressive and 

innovative. However, for reasons of space, they could not be installed, and therefore no statements 

about flexibility could be made. 

Prasmatic, an Italian manufacturer was also very impressive, especially in terms of price. 


Company B attends the Anuga as an exhibitor. They visit Fachpack, Interpack, Drink Tech, and Parma 

Fiere. 


Future trends are toward one complex packaging system for all packaging, i.e. a complete solution.

8.5.15 Company A 


Subsector: Chocolates and candies 

Location: 

Berlin 


Web n/a 


Company A is a company that operates worldwide in the chocolates and candies market. In total, 

Company A has three production sites in Germany and one production site in Britain. Its brand 

products are exported to more than 80 countries. 

Despite the company’s size and global commitments, Company A has retained its independence as a 

family enterprise. 

In 1903, Company A was established in the small town of Werther in Westphalia. It has about 4,000 

employees worldwide. 

One of the best-selling bonbon brands in Germany features in the vast product range of Company A. 



Caramel bonbon 

with chocolate 

N/A Bags consisting of polyethylene, plastic, various 

packaging types and sizes (applies to all bags); folding 

box (cardboard) 

Chocolate N/A Folding box 

Bonbon N/A Bags 

Fruit gum candy N/A Bags 

Caramel candy N/A Bags 

Chocolate cookie N/A Flow-pack 

Fruit gum N/A Folded wrap 

Bonbon N/A Bags 


Company A has 4 main suppliers of packaging machinery, i.e. tubular bag packing machines of all 

different types. 

These are well-known manufacturers from Germany and Europe who are mainly active in the 

confectionery sector (among others Schubert and Bosch).


This year, packaging machinery for different production lines was purchased. However, purchases of 

machinery for new projects are in some cases made weekly. 


The company purchases according to their requirements: 

“Within the next three years, we will for sure purchase new packaging machinery. But I can’t say 

which types of machinery. A fixed budget is not planned, because—as I mentioned before—we can’t 

foresee the needs. In the end, the market and its demands decide what we’ll purchase.” 


“We do draw up a capital spending plan, but it is handled flexibly, because it always depends on the 

situation. For example, if new bag sizes are required, we may have to think about a new investment.” 

New machines are chosen according to technique and production. The final decision is also backed by 

those two factors. The machinery is then purchased directly from the manufacturer. 


Besides quality and availability, a purchase decision is often influenced by the experience that the 

company has had with similar machinery. The price is therefore not always decisive. The experience 

that the technical and production department has had with various suppliers is also taken into 

consideration. Because in many cases custom-made machinery had to be built, the cheapest machinery 

does not always offer the best value for the money. 

“We use the Internet as an information source, but we don’t order machinery online. The Web sites of 

our four suppliers are sufficiently informative, but regarding the sites of new suppliers, we first have to 

get into them.” 

“Our machinery suppliers are able to meet our current needs. Regarding new suppliers, we mainly pay 

attention to reliability. It is important that deliveries arrive complete and on time. Furthermore, the 

machinery must achieve an effective output. When choosing a new supplier, references play an 

important role. Sometimes we do tests to prove the efficiency of new potential suppliers.” 


“With American packaging machinery, we’ve only had a little experience. But for more than 20 years 

we have been using an American lollipop packaging machine, although we don’t know the brand. 

Other American devices used, are for instance MAP-devices, machines to glue in place from Nordson 

and inkjets for labeling.” 

German packaging machinery is very reliable. The German manufacturers are cooperative and flexible, 

especially regarding custom-made machinery. German machinery is first-class in terms of service, 

flexibility, innovation, and technology. 

In terms of technology and innovation Italian packaging machinery manufacturers are ahead of 

manufacturers from Great Britain and the United States. According to the respondent, American 

machinery is far ahead in other technology sectors, e.g. constructing MAP (modified atmosphere 

packaging)-devices. Nordson is not inexpensive but a high-quality brand.

As for prices in general, no statements could be made because of strong competition on prices. 


Company A visits the Interpack in Düsseldorf, die Brau in Nuremberg, and sometimes the packaging 

trade fair in Birmingham. Company A attends the ISM in Cologne as exhibitor. 


The market in principle determines events. Future trends cannot be specified, because packaging 

machinery is becoming more and more highly specified (in terms of being tailor-made). Material usage 

definitely will become cheaper. It is important to use packaging that the consumer wants to buy. There 

is a strong trend toward robotics.

9. BEVERAGES 


The German beverages industry comprises a very wide spectrum of manufacturers and products. It can 

be divided by reference to the different beverage categories, each of which is organized with its own 

trade association. The most important categories are nonalcoholic beverages, dairy products, beer, 

spirits, coffee and tea. 

Company 

Beverage Manufacturers: Key players 

City No. of 

employees 

Coca-Cola Erfrischungsgetraenke Ag Berlin 10,333 

Nordmilch Eg Zeven 3,911 

Holsten-Brauerei Ag Hamburg 3,669 

Binding Brauerei Ag Frankfurt 3,156 

Blaue Quellen Mineral-Und Heilbrunnen Ag Rhens 2,869 

Bitburger Brauerei Th. Simon Gmbh Bitburg 2,750 

Karlsberg-Brauerei Kg Weber Homburg 2,563 

Eckes Ag Nieder-Olm 2,366 

Humana Milchunion Eg Warendorf 2,000 

Henkell & Soehnlein Sektkellereien Kg Wiesbaden 1,656 

(Source: Sample Answers)


the beverages industry 

Size 

no. of companies In % 

no. of employees 

0 – 19 87 11 

20 – 49 317 41 

50 – 99 175 23 

100 –199 108 14 

200 – 299 33 4 

300 – 499 31 4 

500 – 999 15 2 

1000+ 3 0.4 

TOTAL 769 100 

(Source: Statistisches Bundesamt; Reihe 4.1.2.) 

Note: These figures may not be directly comparable with data presented elsewhere in the report from other sources. 

9.1.1 Nonalcoholic beverages (NAB) 

In Western Europe the market for nonalcoholic beverages overall has increased by 14% in the last 5 

years. The sharp increase in consumption of water, still drinks (noncarbonated), and ice tea is 

responsible for this growth. Innovative beverages—playing on current concerns for health, wellness, 

and convenience—play an important role in this. 

Germany is the biggest NAB market in Europe. According to the trade association 

Wirtschaftsvereinigung Alkoholfreier Getränke e.V (wafg), per capita consumption of NAB in 

Germany rose to 253 liters in 2000. Total company sales amounted to around 9.2 billion €. Mineral 

water is the number one item. 

According to the VDF (Verband Deutscher Fruchtsaftindustrie), the Germans are the world’s leading 

consumers of fruit juice, with annual per capita consumption of 40.5 liters. The great popularity of fruit 

juices and fruit nectars is not least due to the confidence that consumers have in German fruit juice 

products. This positive image is based on the wide range of products offered, top quality, and a high 

level of product safety. Annual sales are around 10 billion liters, with growth of 4.7% in the last year. 

Per capita consumption of mineral water is around 97.1 liters. This makes the Germans the third 

biggest consumers in Europe, after Italy (155.0 liters) and Belgium (123.0 liters). 

New drinks—e.g. functional drinks, wellness drinks, energy drinks, fruit-yogurt drinks—are entering 

the market with new taste directions, and the new products are achieving a high degree of acceptance. 

However, not only the drinks manufacturers but also the machinery and plant manufacturers are 

expanding their product programs. 

In view of the increasingly aging population—it is reckoned that starting in 2010, 1.1 million Germans 

will retire annually (currently 800,000)—drinks oriented toward health and wellness will gain 

significantly in importance. Special drink concepts such as “seniors’ drinks” are appearing, and for the 

NAB sector it is currently easy to place novel products on the market. This applies also internationally.

The trend toward PET in the NAB field has already been mentioned in the chapter on plastics, 

packaging supplies (section 5.5). In the cola segment, the market share of PET is already 71.8% 

(January to August 2001). In the water segment, the share is currently lower but is rapidly increasing: It 

rose from 8.4% in 1999 to 27% in July/August 2001. A market share of 60% in this segment is 

considered attainable in the near future. 

Looking more closely at developments in PET, a trend can be seen toward nonreturnable containers. 

For smaller bottles (0.5 liter) consumers prefer the PET bottle to glass for reasons of convenience. For 

the larger sizes (1.5 l and 2.0 l) the PET bottle is promoted through price, especially by the discounters. 

For fruit drinks, cartons have a market share of 45%, while juices in returnable bottles have 41% and 

other nonreturnable packages 14%. 

Market structure of NAB by 

number of employees 

Size 



0 – 19 28 12 

20 – 49 67 29 

50 – 99 51 22 

100 – 199 47 21 

200 – 299 16 7 

300 – 499 13 6 

500 – 999 7 3 

1000+ 0 0 

TOTAL 229 100 



Sales 

(billion €) 

No. of 

companies 

No. of 

employees 

Nonalcoholic beverages in the food industry 

1999 and 2000 

1999 2000 Change in% 

Mineral waters, 

carbonated drinks 

Fruit & vegetable 

6.1 6.4 5 

juice drinks 2.6 2.8 8 

Food industry 116.3 120.4 3.5 




226 229 1.3 

juice drinks 108 116 7.4 

Food industry 6,145 6,136 -0.1 




23,834 25,113 5.3 

juice drinks 6,739 7,066 4.8 

Food industry 550,498 554,633 0.8 

(Source: Statistisches Bundesamt 2001, Bundesvereinigung der Deutschen 

Ernährungsindustrie, Wirtschaftsvereinigung Alkoholfreie Getränke e.V.) 

The German fruit juice industry in figures, 2000 

No. of manufacturers 455* 

No. of employees ca. 7,000 

Total sales 2.8 billion € 

Industrial production (fruit juice/nectar/still fruit juice drinks) 4.3 billion liters 

Per capita consumption (fruit juices/fruit nectars) 40.6 liters 

Volume of fruit processed 800,000 tons 

Imports 0.7 billion € 

Exports 0.6 billion € 

* including suppliers 

(Source: Verband der deutschen Fruchtsaft-Industrie e.V. (VdF), Bonn)

Top mineral water brands in Germany, by sales 

(Germany without Aldi, February 1999 to January 2000) 

1. Gerolsteiner 

2. Apollinaris 

3. Handelsmarken Volvic 

4. Vilsa 

5. Bonaqa 

(Source: AC Nielsen, Mediagruppe München) 

Share of PET in the nonalcoholic 

beverage market 

2000 2001 

Cola 68.4% 71.8% 

Carbonated lemonade 45.0% 50.4% 

Cola mixed drinks 46.7% 50.8% 

“Schorle” 21.9% 33.2% 

Water 12.9% 23.6% 

(Source: Wirtschaftsvereinigung Alkoholfreie Getränke e.V.) 

9.1.2 Coffee / tea 

The trade association Deutsche Kaffee-Verband e.V. represents the German coffee industry. It has 98 

member firms and 35 supporting members. 

In 2000 the sector had sales of some 4.09 billion € (including tea). 44 companies employed around 

6,300 staff. In 2000, 430,000 tons of roasted coffee and 14,160 tons of soluble coffee were sold in 

Germany. Per capita annual consumption is 6.7 kg. On average, the Germans drink 4 cups of coffee per 

day. 

Tea consumption in Germany is stable at a high level. In 2000, 19,760 tons (1999: 20,800 tons) were 

consumed, representing per capita consumption of 250 g. At 35,021 tons, imports into Germany were 

some 5,000 tons less than the previous year, while exports rose by 21.58% to 17,008 tons. The 

differences between domestic availability and domestic consumption are explained by the stocks held 

by German tea companies in 2000. The classic black tea increased its market share in that year, after 

falling in previous years in favor of green tea. Black tea accounts for 83% of the market by volume. 

The largest share of domestic consumption, around 60%, is distributed through the grocery trade, 

followed by specialist tea retailers with some 13%. 

In 1999 the largest supplying country was China, but in 2000 India regained its traditional first place, 

accounting for 20.6% of tea imports. The import volume from India remained virtually stable, while 

imports from China fell by 4 percentage points to 19.4%.


the coffee and tea industry 

Size 



0 – 19 0 0 

20 – 49 9 21 

50 – 99 14 32 

100 – 199 12 27 

200 – 299 5 11 

300 – 499 3 7 

500 – 999 1 2 

1000+ 0 0 

TOTAL 44 100 



9.1.3 Beer 

Europe produced some 469.4 million hectoliters of beer in 1999. This represented an increase of 3.3 

million hectoliters on the year. The largest European beer exporter is the Netherlands with official 

exports of over 12.2 million hectoliters. However, it must also be borne in mind that international beer 

brands are often produced overseas under license and thus are not included in the export statistics. The 

three top beer nations in terms of per capita consumption are the Czech Republic (163 liters), Ireland 

(150.5), and Germany (127.5). 

In Western Europe, Germany is one of the leading beer nations. According to data from the Deutscher- 

Brauer-Bund e.V., Germany has the world’s largest number of breweries with 1,270. It also offers the 

widest range, with some 5,000 different beers. However, per capita consumption is somewhat on the 

decline. Nevertheless, beer remains indisputably Germany’s top national drink. 

Sales by the German brewing industry in 2000 amounted to 8.25 billion €. A total of about 37,600 

employees worked in the industry, producing some 110 million hectoliters of beer and beer-based 

drinks. The export share was 10%. 

Younger consumers in particular in Germany are becoming more interested in international beers and 

particularly also in modern beer-based mixed drinks. The run on beer-based mixed drinks in Germany 

started in 1993. Before that it was common for many bar staff to mix beer with lemonade or cola by 

hand. Since then the market has boomed with ready-made “Radler” and “Alsterwasser,” cola-mixes, 

and other variants. Beer-based mixed drinks remain a niche segment. However, they represent a new 

development in the available drinks range, with now over 1.9 million hectoliters per year. A future 

market share of 5% is considered realistic. They act as a replacement for the former “light beer” 

segment with only 2.5% to 3% alcohol, which has largely disappeared from the market. 

The share of foreign beers on the German beer market is not very large. These are perceived as 

specialties, which is also reflected in the price. However, even though the market share is low, all the 

major foreign breweries are represented on the market. They manufacture special versions of their 

product, brewed according to the traditional German purity laws. These beers are not imported but

manufactured in Germany under license or contract. For example, the Australian Foster’s brand is 

brewed by the Holsten-Brauerei in Hamburg. 

Although the market share of imported beer is very small, there is strong competition for the title of 

“the most imported beer in Germany.” This is important in the international marketplace because of the 

kudos attached to success in the highly critical German market. 

German beer is exported to some 150 countries. The main export market for German beer is Italy with 

over 1.6 million hectoliters in 1999, followed by the United States (over 1.4 million hectoliters) and 

Great Britain (over 1.1 million hectoliters). The big German breweries also produce large quantities of 

beer overseas under license. German alcohol-free beer, such as Clausthaler, sets worldwide standards 

on account of its unique brewing method. 


the beer industry 

Size 



0 – 19 14 4 

20 – 49 170 46 

50 – 99 91 25 

100 – 199 50 14 

200 – 299 16 4 

300 – 499 15 4 

500 – 999 8 2 

1000+ 3 1 

TOTAL 367 100 



Key figures for the German brewing industry 

Unit 1999 2000 

Breweries number 1,279 1,270 

Production 1,000 hl 112,800 110,429 

Beer consumption 1,000 hl 104,767 103,055 

Beer exports 1,000 hl 9,464 10,747 

Export share % 8.4 9.8 

Imports 1,000 hl 3,054 3,228 

Per capita consumption liters 127.5 125.5 

Employees number n/a 37,592 

Sales Mill. € 9,350 9,250 

(Source: Deutscher-Brauer-Bund e.V.) 

Top 5 German beverage groups 

(sales of NAB + beer in million hectoliters) 

Total beverage sales Beer sales 

1999 2000 1999 2000 

Holsten 18.9 21.5 8.5 11.3 

Bitburger 13.5 15.7 5.1 6.5 

Brau and Brunnen 12.8 12.0 7.5 7.1 

Binding 12.3 11.9 11.2 10.9 

Beck’s 8.6 8.7 5.4 5.7 

Rounded figures including overseas production and 

production under license 

(Source: HLW-Infodienst )

Market shares by form of packaging (%) 

Packaging form 1994 1995 1996 1997 1998 1999 

Keg beer 22.7 21.7 21.0 19.9 19.5 19.3 

Returnable bottles 60.3 59.6 60.0 59.9 58.8 57.9 

Nonreturnable 17.1 18.7 19.0 20.1 21.7 22.8 

(Source: Deutscher-Brauer-Bund e.V.) 

9.1.4 Milk and dairy products 

The German dairy industry is the strongest sector of the food industry, with annual sales of over 19.95 

billion € in 2000 and some 37,600 employees. Average annual sales per employee are around 511,000 

€. With exports representing 18% of total sales, the dairy industry is also the strongest exporting branch 

of the food industry. 

The German dairy industry has been traditionally based on small and medium-sized companies. 

However, the sector is under pressure to lower costs in a market where price increases are scarcely 

possible, and the companies are reacting with further reorganizations. The German dairy sector is also 

influenced by general trends toward globalization, which are now leading to mergers and strategic 

alliances. 

The structural change in the sector is reflected in the statistics. The number of companies in the dairy 

sector fell from 282 in 1999 to 265 in 2000 (–6%). 

The German milk-processing industry exports large volumes of cheese, fresh milk-based products, and 

butter to East Europe. Some companies are also investing in new manufacturing plants in those 

countries, e.g. in Poland, Russia, and Hungary. However, the risks involved in this strategy have been 

demonstrated by the economic crisis in Russia. 

The German domestic market for dairy products is divided into 75% end-consumers and 25% business 

users. 

The dairy industry is one of the most innovative sectors of the German food industry. The number of 

innovative products introduced per year has tripled over a 4-year period. As well as novel products 

(products with a new name and a new recipe), innovative packaging solutions have also played a key 

role. Manufacturers are thus responding to changes in consumer structure and demand, e.g. the growing 

number of single households. 

There is also a trend in this sector toward extending the range of snack and convenience products for 

immediate consumption. 

In the long-life milk segment, 99% of units sold are packed in cartons and 1% in returnable glass 

bottles. For fresh milk, cartons have a market share of 81%, 12% are sold in returnable glass, and 6% in 

tubular bags.

Key figures for the German dairy 

industry 2000 

Sales 19.95 billion € 


Exports 18.20% 


the dairy industry 

Size 



0 – 19 27 10 

20 – 49 64 23 

50 – 99 80 28 

100 – 199 60 21 

200 – 299 18 6 

300 – 499 21 7 

500 – 999 11 4 

1000+ 3 1 

TOTAL 284 100 



Production of dairy products 1995–2000 (in 1,000t) 

1995 1996 1997 1998 1999 2000 +/– in % 

Milk for consumption 5,603 5,613 5,503 5,404 5,390 5,424 0.6 

Buttermilk 198 193 219 210 222 213 -4.2 

Fresh milk-based 

products 

2,126 2,273 2,449 2,560 2,671 2,732 2.3 

Cream and cream 

523 545 549 544 548 551 0.5 

products 

Butter 486 480 442 426 427 425 -0.5 

Cheese 1,453 1,530 1,591 1,597 1,594 1,686 5.8 

Processed cheese 160 157 149 156 161 171 6.3 

Long-lasting milk 1,325 1,322 1,300 1,335 1,332 1,350 1.4 

(Source: ZMP, MIV)

Fresh milk packaging (share in %) 

1995 1996 1997 1998 1999 2000 

Cartons 69 67 66 69 76 81 

Returnable bottles 23 22 20 17 15 12 

Tubular bags 7 10 13 13 8 6 

Other 1 1 1 1 1 1 

17.9 

18.9 

Turnover and export quota of the German dairy industry 

18.4 

19.1 

19.0 19.0 19.5 19.2 20.0 

1992 1993 1994 1995 1996 1997 1998 1999 2000 

Export quota in % Total in billion Euro 

(Source: Milchindustrie-Verband e.V. [MIV]) 

9.1.5 Spirits 

According to the Bundesverband der Deutschen Spirituosen-Industrie and -Importeure e.V. (BSI), the 

German spirits market in 2000 continued to represent the largest within the EU in terms of volume with 

some 728 million bottles (0.7 liters). The market and demand are generally stable in that some 70% of 

all private households buy spirits at least once a year. 

Since German unification there has been an overall decline in consumption, but this is expected to have 

come to an end. Consumption habits in East and West Germany have largely equalized. The German 

spirits manufacturers and importers expect stabilization in per capita consumption in the future. In 2000 

this was around 5.8 liters. 

In 2000, spirits exports fell by about 10% to around 94 million bottles (0.7 liters). The principal export 

countries were France, Belgium/Luxembourg, Netherlands, United States, Czech Republic, Austria, 

Denmark, Turkey, Russia, Italy, Switzerland, and Spain. 

Spirits imports in 1999 reached a record level of 305 million bottles (0.7 liters). In 2000, some 294 

million bottles were imported into Germany, representing a decline of some 3%. About 65% of spirits 

imports came from the EU countries. Major supplying countries in 2000 included France, Great 

Britain, Bahamas, Italy, United States, Greece, Spain, Jamaica, Mexico, Netherlands, Ireland, and 

Denmark.

Key figures for the spirits industry in Germany 

2000 

Sales 2.88 billion € 

Production 728 million bottles (0.7 l) 

Per capita consumption about 5.8 l 

Exports 94 million bottles (0.7 l) 

Imports 294 million bottles (0.7 l) 

(Source: BSI) 


the spirits industry 

Size 



0 – 19 28 31 

20 – 49 40 44 

50 – 99 13 14 

100 – 199 6 7 

200 – 299 1 1 

300 – 499 2 2 

500 – 999 0 0 

1000+ 0 0 

TOTAL 90 100 



9.2 TRENDS 

The following developments are currently observed in the market: 

� Nonreturnable glass bottles are being rapidly replaced by nonreturnable PET bottles. 

� The share of PET is also growing in the returnable segment. 

� Cans and drink cartons are still showing gradual growth at the expense of returnable containers. 

However, in the beer segment there is a clear ongoing trend of replacement of returnable bottles 

by cans. 

� Since 1997 the market share of returnable containers has declined in steps of around 1.5% per 

year. 

� The number of drink manufacturers is undergoing a constant process of shrinkage and 

concentration. 

The figures in the following chart refer to both returnable and nonreturnable packaging for beer and 

carbonated drinks in general.

Beer and carbonated drinks, 

returnable and nonreturnable 

packaging 1999 in % 

Glass 56 

Plastic 17 

Cans 14 

Kegs 12 

Aluminum 

(Source: GVM Wiesbaden) 

1 



Wirtschaftsvereinigung Alkoholfreie Getränke e.V. 

Association of the German nonalcoholic beverage industry 

Friedrichstraße 231 

10969 Berlin 

Tel.: 030 - 259258-0 

Fax: 030 - 259258 – 20 

E-Mail: mail@wafg-online.de 

Web site: www.wafg-online.de 

Wissenschaftsförderung der Deutschen Brauwirtschaft e.V. (Wifö) 

Research Association of the German Breweries 

Annaberger Str. 28 

Postfach 20 04 52 

53175 Bonn 

Tel.: 0228 - 95 90 60 

Fax: 0228 - 95 90 616 

E-Mail: wifoe@society.de 

Web site: www.brauer-bund.de 

Verband der Deutschen Fruchtsaftindustrie e.V. (VdF) 

Association of the German Fruit Juice Industry 

Mainzer Straße 253 

53179 Bonn 

Tel.: 0228 - 95 46 00/-34 07 29 

Fax: 0228 - 95 46 020/030 

E-Mail: sennewald-vdf@gmx.de 

Web site: www.fruchtsaft.de

Deutscher Kaffee-Verband e.V. 

Association of the German Coffee Industry 

Pickhuben 3 

20457 Hamburg 

Tel.: 040 - 36 62 56/-57 

Fax: 040 - 36 54 14 

E-Mail: info@kaffeeverband.de 

Web site: www.kaffeeverband.de 

Milchindustrie-Verband e.V. (MIV) 

Association of the Dairy Industry 

Adenauerallee 148 

53113 Bonn 

Tel.: 0228 - 95 96 90 

Fax: 0228 - 37 15 35 

E-Mail: info@milchindustrie.de 

Web site: www.milchindustrie.de 

Verband Deutscher Mineralbrunnen e.V. (VDM) 

Association of German Mineral Water Producers 

Kennedyallee 28 

53153 Bonn 

Tel.: 0228 - 95 99 00 

Fax: 0228 - 37 34 53 

E-Mail: vdm.bonn@t-online.de 

Web site: www.mineralwasser.com, www.heilwasser.com


9.4.1 Binding-Brauerei AG 

Industry: Beverages 

Subsector: Breweries 

Location: Frankfurt 

Size: (sales) Annual turnover 887 million € 

Web www.binding.de 


In 1870, Conrad Binding, journeyman cooper and brewer, bought the small Ehrenfried Glock brewery. 

This date can be seen as a starting point for the Binding Group, one of the leading brewery groups in 

Germany. Binding stands for powerful brands, high quality beers, and continuity of enterprise 

management. 

The Binding Group is Germany’s largest brewer with an output of 10.9 million hectoliters in 2000. The 

parent company, Binding-Brauerei AG operates through more than 25 subsidiaries, including among 

others the Dortmunder Actien-Brauerei (English translation: Dortmund Capital Stock Brewery), the 

Berliner Kindl Brauerei (Child of Berlin Brewery), the Radeberger Exportbierbrauerei (Radeberg 

Export Beer Brewery) in Radeberg near Dresden, the Krostitzer Brauerei (Krostitz Brewery) near 

Leipzig, the Allgäuer Brauhaus (Allgäu District of Bavaria Brewery), and the Selters Mineralquelle 

(Selters Mineral Spring). 

Since April 1994 the Königliche Brauerei Krusovice (Royal or King’s Brewery of Krusovice) near 

Praha (Prague) and since December 1996 the Polish brewery Browar Dojlidy (Dojlidy Brewery) have 

been part of the Binding family of breweries. 

Common goals, decentralized authority, and strong brands characterize the enterprises of the Binding 

Group: Radeberger Pilsner, Clausthaler, Schöfferhofer Weizen, Binding Lager, Berliner Kindl 

Jubiläums Pilsener, DAB Pilsner, Ur-Krostitzer, Krusovice, Selters, and Dojlidy are among the brands 

that contribute to growth and are supported by national TV advertising. 

The subsidiaries in the new German states are developing especially well. The early commitment and 

substantial investment in revamping the breweries in Radeberg, Krostitz, and Potsdam are bearing fruit. 

Radeberger Pilsner, the beer of the royal court of Saxony, has worked its way up to a top 10 ranking 

among German beers with an output of nearly 2 million hectoliters in 2000. 

Outside of Germany itself, Krusovice has also been very successful with nearly 1 million hectoliters. 

The Polish brand Dojlidy is also developing positively. 

The Binding Group will continue its established branding policy. While maintaining this policy, the 

enterprise will expand further into Central and Eastern Europe. 

In 2000, the Binding Group attained sales revenues of 887 million € (1999: 902 million €). The 

Binding Group has about 3,156 employees in total (about 400 at the Binding-Brauerei AG itself).

Binding-Brauerei AG exports from Germany to Russia, Ukraine, Czech Republic, Italy, Spain, Korea, 

Japan, and Great Britain. 


� Clausthaler, alcohol-free beer, packaged in 0.33 liter nonreturnable and returnable bottles; sixpacks 

in corrugated cardboard cartons (24 bottles in total) 

� Schöfferhofer Weizenbier, packaged in 0.5 liter nonreturnable and returnable bottles; six-packs 

in corrugated cardboard cartons (24 bottles in total); shrink wrapped 



Mead – machine for cluster-packs 1 France 2.5 years 

Kallfass – installations for shrinkage for preshrinking 


Involvo – group packaging machines for carton 1 Swiss 2.5 years 

Krones – filling machines for bottles 8 Germany 2.5 years 

Krones – filling machines for cans 1 Germany 3 years 

Krones – labeling machines 1 Germany N/A 


The last purchases of packaging machinery were 2½ years ago. The main supplier is Krones. 


Within the group (in Frankfurt) at the moment, there are plans to purchase Meypack machines. 

Packaging machinery sometimes is given from one subsidiary to the other, if new machinery is bought. 

This sort of “shifting” is coordinated by the Binding-Brauerei AG. 

There is no fixed budget, as machines are purchased according to need. 


Machines are purchased according to the need, i.e. they must meet the company’s requirements. 

“We don’t draw up an annual investment plan regarding machines, but we budget for maintenance 

costs.” 

“We think about purchasing new machines, mainly for three reasons: 

� New requirements on the market, e.g. compulsory deposit 

� Existing machinery is too old 

� Increase in efficiency.”

“Regarding the choice of a machine, we refer to the experience of the whole group. If Radeberger,for 

example, has had good experience with a machine, that is communicated to the other companies in the 

group. This way the whole group can benefit from it. The final purchase decision will be made by the 

management, namely the board of directors.” 

“In order to clarify our ideas and expectations of the machines that we want to purchase, packaging 

machinery is only bought directly from the manufacturer. We either purchase the machines on credit or 

lease them.” 


Regarding the purchase of packaging machinery there are two aspects—the technical and the 

commercial. The purchasing department pays attention to the price, namely to value for the money, 

which they try to estimate on the basis of information they have received from the technicians. The 

technical department, on the other hand, puts a priority on the functionality of the machine. 

Because of the high demands on packaging, the machinery has to meet special company demands. 

Increasing speed of new product developments and market launches require convertible packaging 

machinery that can be upgraded. Machinery must be capable of being changed over quickly and 

effortlessly to fit new packaging requirements, and it also has to be reliable to prevent downtime. 

Another important aspect in choosing a manufacturer is his knowledge of his products, i.e. does he 

have experience with beverage packages? The external representation of the manufacturer plays a vital 

role. 

“Before purchasing a machine, technicians of all production facilities generally exchange their 

experiences.” 

The Internet is only rarely used as an information source on packaging machinery because great 

importance is attached to personal contact, i.e. to good communication. 


German packaging machinery manufacturers are viewed as reliable. The company has not had any 

experience with American packaging machinery to date. The company had problems with 

manufacturers from Switzerland. The drawback of Italian packaging machinery manufacturers is that 

they do not speak German, only Italian or English. That can cause problems, especially regarding 

technical details. 

The after-sales service of Mead and Involvo is unsatisfactory because there is not enough contact. The 

benefit of Mead is that they can deliver machinery as well as supplies. Because of the product-specific 

requirements of a package, there is always something that has to be improved. 


The international Brau in Nürnberg is the only trade show attended regularly. 


The packaging industry has to focus on the increasing number of single households, i.e. the packaging 

machinery has to be able to do traditional packaging as well as smaller packages.

More flexibility from the manufacturers is required. Also in another context, the company must be able 

to do glass packages as well as PET packages with one single machine. 


Company Name: Binding-Brauerei AG 

Contact: Mr. Eiselt 

Position: Technical director 

Address: Darmstädter Landstr. 185 


Telephone: 069-6065-0 

Fax: 069-6065-209 

E-mail: info@binding.de 

Web site: www.binding.de

9.4.2 Company J 


Subsector: Coffee 

Location: Hamburg 

Size: (sales) 2.83 billion € (the whole group) 

Web n/a 


Company T is part of a major coffee roaster group in Hamburg with about 7,000 employees across 

Germany. Apart from coffee, which is sold in more than 900 company-operated branches, they also 

have a wide range of non-food products as well as financial services. The annual turnover in 2000 was 

about 2.83 billion € worldwide. The company is the number one coffee supplier not only in Germany 

but also in Hungary, the Czech Republic, and Austria. 



Ground coffee N/A Vacuum packaging 

Ground coffee N/A Tubular bag packaging 

Coffee beans N/A Paper bags 



Average 

Age 

Bosch, vacuum packaging 

machine 

10 German 7–16 years 

Rovema, tubular bag packaging 

machine 

10 German 7–16 years 


The company has just ordered new machinery. 


The machinery—on order from Bosch—will be used to pack whole coffee beans. It is purchased as a 

replacement for old machines. The problem with older machinery is that service costs tend to go up. 

They have to be replaced by newer and more innovative machines.


The company normally purchases directly from the manufacturer and pays directly. There is an 

exception when they purchase a whole production line, and the supplier buys parts of it from another 

manufacturer. 


The investment is decided upon by the production department and the purchasing department. 

They do not like to purchase prototypes. In this respect they are conservative. They look for good 

references. There is an exception: If a premium technology is needed, they would buy the machinery 

without references. 

Most of the time, they observe the machinery at the facility of other users to see it in operation. 

Furthermore, they need to know how well the after-sales service and spare part delivery works. 

In case of a defect affecting one of the major production lines, they expect service within 24 hours. 

This is not necessary with smaller packaging machines. They tend to be less complex, and most of the 

time their trained staff can repair them with stocked spare parts. 

Nowadays another important point is the flexibility of the packaging machines. For years flexibility 

was not an issue because all the machines had to achieve extremely high performance levels, i.e. they 

had to produce a large number of units. Now that the market has changed, the company feels the need 

to develop new products in new packaging (e.g. pillow packs for ground coffee) more often. Therefore 

the machinery has to be more flexible. The company and their suppliers respond to this new situation. 

They do not use the Internet too often because the market for coffee packaging machines is limited. 

They know the manufacturers’ representatives and meet them at trade fairs. They use the Internet to 

look out for new developments. 


They buy from only a few manufacturers. In Germany these are Bosch and Rovema, in Switzerland 

SIG, and in Italy Goglio. The Goglio machinery did not meet the company’s requirements concerning 

speed and performance. Their relationships with SIG and Bosch are equally good; both are of the same 

quality and charge equally high prices. 

With regard to service Swiss manufacturers are comparable to German; the Italians are rated a little 

inferior, but up to now they have not had serious problems with the service of either manufacturer. 

Sometimes manufacturers have to be pushed to develop new machinery. 


The company visits the Interpack and the Fachpack (less regularly). They are present at the Anuga and 

other food trade fairs. 


There is a trend toward the control of the machinery via PC. Therefore, more training is needed, both at 

the manufacturers’ and the production sites.

9.4.3 Company K 



Location: North Rhine Westphalia 

Size: (sales) 4,693 million hectoliter 

Web n/a 


Company K was founded in the second half of the 19th century and is one of the best-selling beer 

brands in Germany today. It is situated in North Rhine Westphalia. 

For the financial year 2001 Company K achieved a turnover in excess of 0.4%. The company’s total 

output saw a slightly retrograde development with minus 2.4%, i.e. a total output of 4,693 million 

hectoliters in 2001 (compared with 4,810 million hl in 2000). 

Investments were focused on enhancing quality assurance and introducing new packages as well as 

extending a new administration building. 

Company X’s consumer-responsive packaging policy is also borne out by the unbroken attraction of 

the “Company X’s Eleven” as well as the acceptance of the innovations of the “Company X Star Pack” 

with 18 0.33 l so-called “Steinie” bottles and—since October—with 0.5 l Longneck bottles as well. 

An increase could be registered in the segment of nonreturnable cans. In this sector Company K has 

achieved an increase of 20%, now totaling 202,000 hl (168,000 hl in 2000). 

This segment makes up 4% of the total production of Company K at the moment. In the total market, 

cans make up a share of 25%. In order to meet increasing consumer demand in this segment Company 

K plans to set up additional production capacities for filling nonreturnable packages. 

The number of staff increased slightly from 762 in 2000 to 768 in 2001. 

Exports remained unchanged with an output of 103,000 hl. The leading export countries are Spain, 

Italy, and Greece 



Beer N/A Bottles, packed in plastic crates 

or cardboard, 6-packs, 6 x 4 

trays



Average 

Age 

Mead 1 Germany 10 years 

In addition to using Mead machinery, the company has external filling facilities by Hannen 

(nonreturnable bottles) and by Gothar (cans). 


The last machinery purchased was a Mead machine. 


The next machinery to be purchased is a multifunctional packaging machine with various application 

options. Due to a new product launch in the near future, no one at Company K wanted to comment on 

which product is going to be packed with the new machinery. 


A budget is fixed each year for the next annual term, although the exact amount of the fixed budget is 

confidential to the company. Furthermore, a long-term strategy has been set up. 

A team consisting of representatives from the technical and purchasing departments is responsible for 

identifying potential suppliers and making the final purchasing decision. The technical department 

draws up a job specification and identifies the need. The purchasing department provides a market 

review, identifying potential suppliers, and holds initial negotiations with the potential suppliers. 

Company K purchases directly from the manufacturer. 


Before purchasing machinery, the total costs of the purchase are calculated. These include, for 

example, the cost of materials, maintenance, service, and energy consumption. 

When choosing a potential supplier, attention is paid to Company K’s specifications, which include, 

among other factors, the technical specifications and possible regulations that have to be met. 

The Internet is used to obtain information about packaging machinery and manufacturers. Positive 

aspects include the fact that information can be obtained without having time-consuming sales reps’ 

visits. Negative aspects include the fact that the data from the Internet is not necessarily correct or 

complete. 

With regard to new manufacturers, references play an important role. The manufacturer has to verify 

that he is experienced and competent in the required sector.


The company has had no experience so far with American packaging manufacturers. Several names of 

American manufacturers are known, however. 

Regarding technology, American machinery is rated as very progressive. Among other factors, the 

imperial system of measurement and the lack of knowledge regarding the strict German regulations are 

considered problems. Generally, flexibility is rated very low for foreign manufacturers. The same is 

said about after-sales service because of the distance. 

With German packaging machinery, the company has not gained enough experience to make detailed 

statements on technology and innovation. The service of German manufacturers is regarded as very 

high, but German machinery is too expensive. 

With regard to quality, the company has bad experience with Italian manufacturers. 


Company K exhibits at the Anuga and the Internorga. The Brau in Nuremberg and the Interbrau in 

Munich are attended regularly. 


The ability to pack different products, as well as high levels of flexibility, will be the requirement in the 

future for machine purchases. Multifunctional machinery that can be employed for different products 

without major modifications or upgrades will influence future trends.

9.4.4 Company C 



Location: Stuttgart 

Size: (sales) 4 million hectoliters 

Web n/a 


Company C—a merger of Company 1 that was founded in 1878 and Company 2 that was founded in 

1888—is one of today’s largest breweries in Baden-Württemberg. 

In 1971 Company 1 took over a long-established Stuttgart brewery, which was founded in 1861. With 

the acquisition of a well-known wheat beer brewery in 1977, the company has extended its product 

range of various additional wheat beer varieties. In 1990 Company 1 took over a brewery in Saxony. In 

1992 they acquired an additional brewery from Heilbronn. 

In the beginning of the 1980s Company 2 took over a large brewery in Metzingen. 

With the merger of two traditional breweries in Stuttgart in 1996, both gave up independence for a joint 

future. 

Company C is part of a huge brewery holding based in Munich, producing about 4 million hectoliters 

per year. Both the management and the production facility are situated in Stuttgart. 

The major export partners are Italy, France, Spain, Portugal, and England. 



Beer N/A Nonreturnable bottles; nonreturnable cans (0.5 l 

and 0.33 liters) on 24er pallets, longneck bottles, 

Vichy bottles; beer crates (20 bottles) as twin 

crates, i.e. the crate is separable (i.e.10 bottles 

each); 5 l barrels 

Beer N/A Swing top bottles, Vichy bottles; NRW bottles, 

i.e. a new bottle format popular in Germany that 

is starting to exert influence on the European 

beer market; 20 x 0.5 l crates 

Beer N/A NRW bottles; 30 l and 50 l barrels; 0.5 l cans 

Beer N/A NRW bottles; 30 l and 50 l barrels


Current Machinery Used Units Origin Average 

Age 

Meypack—case packer for 

nonreturnable bottles and cans; 4 x 

6-packs 


Various filling machines for 

returnable bottles, nonreturnable 

bottles, swing top bottles and cans 

N/A N/A N/A 

Labeling machines N/A N/A N/A 

Conveyor of palettes N/A N/A N/A 


The last purchase was a Meypack about 6 years ago, which cost about 400,000 €. 


At the moment there is no long-term strategy possible at Company Y because they cannot anticipate 

how the market is going to develop with respect to nonreturnable bottles. The discussion about 

compulsory deposit has not been settled yet. Finally, because beer bottled in PET bottles is not widely 

used in Germany, consumer acceptance has to be tested first. 


Packaging machinery is assessed according to breakdown frequency and maintenance costs. Besides 

purchase and maintenance costs, machinery can become quite cost-intensive after purchase, and this 

has to be considered in the capital spending plan. 

The technical director chooses the machinery and the manufacturer, but the final purchase decision is 

made by management. 

Machinery is only purchased directly from the manufacturer. Different tenders are invited and the 

manufacturers are told what the company’s expectations/demands are in relation to the machinery. 

“In order to come to a decision, we also view operational machines of different brands, and ask for the 

experience of people who operate and maintain them. This way we can evaluate the benefits and 

drawbacks better. All this information, including the purchase price, is necessary to make a final 

purchase decision.” 

The majority of the machinery is purchased, and leasing contracts are only occasionally considered. 


Decisive factors that influence the purchase decision are—besides applicability—operating efficiency 

and user-friendliness. Susceptibility to failure is also an important factor because this can become a

significant expense factor. Finally, the machinery has to be easy to clean to meet the strict rules of 

hygiene in the food sector. All benefits and drawbacks are considered and lead to the final decision. 

“We ask for references from the manufacturers, so that our colleagues—responsible for the selection— 

can be convinced on site of the quality of the machinery. The statements of the operators working with 

the machinery are of immense importance, because they have gained experience with the packaging 

machinery.” 

The Internet is merely used as an information source. 

Machinery has to be adjusted to requirements. For this reason older machinery has been rebuilt—partly 

internally. Before buying new machinery, the company’s special requirements are identified. Often, 

required modifications are carried out together with the manufacturer. For this it is essential to have 

good communication channels, which brings benefits for both sides. 

“Basically, regarding machinery suppliers, we pay attention to operating efficiency, maintenance 

costs, and food compatibility.” 


“We have had experience with the American MAG. The different measuring units turned out to be 

problematic, because spare parts on the German market are only available according to the metric 

system. Therefore it took too long to get the right spare parts. That is the reason why we are currently 

adjusting our machinery to a standardized system—the metric system.” 

The willingness to change to new, alternative suppliers is quite high. The market is monitored 

continuously in order to find the best offer available. 

The Meypack case-packer was a prototype that was partly built according to the company’s 

specifications. However, it took a while until the machinery was running correctly. In contrast, the 

installation of the MAG proceeded without complications—they installed it and it worked perfectly 

after 3 days. 


The Brau in Nuremberg and the Interbrau in Munich are visited regularly. 


To be flexible and react fast to new requirements, packaging machinery should offer a variety of 

possibilities.

10. CHEMICAL INDUSTRY 


Pharmaceuticals, personal care products, and paints are sectors of the chemical industry. 

The economic upturn in the German chemical industry continued further in the course of the year 2000. 

As the sector is very export oriented, it was able to benefit from the good performance of the world 

economy. 

The German economy and the domestic demand for chemical products also improved significantly. In 

2000, sales exceeded 102.26 billion €. However, it has to be noted that this is also due to rising oil 

prices, which in particular affected oil-related chemical products. Employment in the chemical industry 

remained stable. 

Germany is Europe’s largest producer of chemical products. It accounted for 24% of total EU sales in 

2000. Almost every third job within the European chemical industry is provided by German 

companies. 

The German chemical industry is the third biggest producer of chemical products worldwide. Only the 

United States and Japan achieve higher sales. German chemical companies employ more people than 

any other European country or Japan. An export share of 70% confirms the worldwide competitiveness 

of German chemical products. Germany was the second largest exporter of chemicals in 2000 (largest 

exporter: United States), with a world market share of nearly 12.5%. Unlike German companies, the 

US chemical industry focuses more on domestic demand. 

The main export regions for German chemical products are the European Union (53%), North America 

(13%), and Asia (12%). Almost 50% of total sales were achieved abroad. 

The German chemical industry does not only consist of large, international companies. In total, 1,750 

companies operate in the chemical industry. In 2000, the share of small and medium-sized enterprises 

(less than 500 employees) was about 89%. SMEs provide 35% of all jobs in the industry and account 

for 36% of total chemical sales. The importance of SMEs in the German chemical industry is relatively 

high. Unlike in other industries, the chemical industry SMEs focus on end products and sell their 

innovative products worldwide. 

Due to structural changes within the German chemical industry, a shift between sectors can be 

observed. The share of each sector in relation to total sales has been changing with time. In 2000, more 

than 47% of total sales were accounted for by the basic chemicals sector, followed by pharmaceuticals 

(19.3%), paints (7.7%), and soap/detergents (7.6%). 

10.2 TRENDS 

A major development beginning in the 1960s is the globalization of the chemical industry— 

investments by companies of many countries in production facilities in foreign countries, and the 

development of world markets, with the prices of many chemicals set by global supply and demand. 

This was fostered by world economic growth, the reduction of tariffs and other trade barriers that 

promoted world trade, and progress in telecommunications. 

Globalization has also accelerated structural changes within the German chemical industry. While the 

pressure from shareholders to deliver greater returns remains, the complexion of the industry is already 

changing in the face of new forces. A process of “destructuring” has seen companies breaking down

old structures, shedding weaker activities, and closing unprofitable assets. Several new industry 

segments have emerged as a result, and more will be created in the future. Mergers, alliances, and 

acquisitions are at an all-time high and have played their part in reshaping the chemicals landscape. 

A major event in the German chemical industry in 1999 was the merger of Hoechst AG with Rhône 

Poulenc to form Aventis. In 2000, the sale of Knoll AG by BASF AG with a transaction value of some 

US$ 7 billion topped the list of major acquisitions in the chemical industry involving German 

companies. These cases illustrate two typical developments, which are associated with each other and 

which are currently determining developments in the corporate chemical sector. In the first place, 

chemical companies are increasingly concentrating on what they define as their core businesses— 

whether it is life sciences, the manufacture of chemical raw materials, or the manufacture of chemical 

specialties. Secondly, within these core business areas, internal growth is frequently no longer 

sufficient to finance companies’ ability to compete against larger competitors in rapidly growing world 

markets. 


Chemicals Manufacturers: Key players 

Company City 

No. of 

employees 

Degussa Ag Duesseldorf 63,000 

Gehe Ag Stuttgart 21,862 

Wacker Chemie Gmbh Muenchen 17,537 

Celanese Ag Kronberg 14,000 

Messer Griesheim Gmbh Frankfurt 10,008 

Phoenix Ag Hamburg 9,880 

Roche Diagnostics Gmbh Mannheim 8,900 

Rehau Ag + Co. Rehau 7,165 

Sued-Chemie Ag Muenchen 5,069 

Tesa Ag Hamburg 3,500 



the chemical industry 

Size 



0 – 19 105 6 

20 – 49 514 29 

50 – 99 393 22 

100 – 199 304 17 

200 – 299 130 8 

300 – 499 118 7 

500 – 999 112 6 

1000+ 78 5 

TOTAL 1,754 100 



Ranking Company Sales in million € 

1 BASF AG 35,945 

2 Bayer AG 30,971 

3 Degussa AG 20,267 

4 Aventis Pharma AG 16,091 

5 Merck KGaA 6,740 

6 Boehringer Ingelheim 6,200 

7 Agfa Gevaert-Group 5,260 

8 Celanese 5,212 

9 Fresenius AG 4,952 

10 Schering AG 4,493 

(Source: VCI)

The German chemical industry in Europe (2000) 

Share of total 

EU 

Rank within the 

EU 

Sales 108.6 billion € 24.0% 1 

Investment 71.5 billion € 27.9% 1 

No. of employees 470,000 28.4% 1 

Imports of chemical products 49.6 billion € 18.5% 1 

Intra EU imports 34.4 billion € - 1 

Exports of chemical products 74.4 billion € 22.3% 1 

Intra EU exports 26.4 billion € - 1 

(Source: CEFIC) 

Chemical industry indicators in major chemical producing countries 

2000 USA JP D F GB ITA 

Sales (in billion €) 476.4 237.0 108.6 79.3 55.0 52.0 

Employees (in 1000) 1,027 367 470 241 251 187 

Exports (in billion €) 87.7 37.7 74.4 47.9 44.8 24.5 

Imports (in billion €) 

(Source: VCI) 

79.9 28.8 49.6 38.9 34.0 32.3 

Sales, employees, and companies in Germany broken down by size 

September 2000 

Small enterprises 

share in % 

of total chemical 

of total employees 

companies 

of total sales 

(less than 100 

employees) 

57.7 9.8 8.7 

Mid-sized enterprises 

(100 to 499 employees) 31.5 25.6 27.3 

Large enterprises 

(500 and more 

employees) 


10.8 64.6 64.0

Sectoral breakdown of sales in Germany 2000 

Sector Sales (in billion €) Sales Share (in %) 

Basic chemicals 52.1 47.6 

Agrochemicals 2.2 2.0 

Paints 8.4 7.7 

Pharmaceuticals 21.0 19.3 

Soap and detergents 8.3 7.6 

Man-made fibers 2.9 2.7 

Other chemical products 14.2 13.0 

Chemical industry 108.6 100 

(Source: VCI) 



VCI - Verband der Chemischen Industrie e.V. 

Karlstrasse, 21 

60329 Frankfurt 11 

Tel.: 49 69 2556 0 

Fax: 49 69 2556 1471 

E-mail: vci@vci.de 

Web site: http://www.chemische-industrie.de 

Deutsche Gesellschaft für Kunststoff-Recycling 

Frankfurter Straße 720-726 

51145 Köln 

Tel.: 02203/9317-745 

Fax: 02203/9317-774 

Web site: http://www.dkr.de 

GDCh-Fachgruppe Anstrichstoffe und Pigmente 

Allmandring 37 

70569 Stuttgart 

Tel.: 07 11/6 87 80-0 

Fax: 07 11/6 87 80-0 

Web site: http://www.gdch.de/fachgrup/api.htm

Gesamtverband kunststoffverarbeitende Industrie e.V. (GKV) 

Am Hauptbahnhof 12 

60329 Frankfurt am Main 

Tel.: 069 / 271 05 20 

Fax: 069 / 23 27 99 

E-Mail: info@gkv.de 

Web site: http://www.gkv.de 

Hauptverband Farbe Gestaltung Bautenschutz 

Hahnstraße 70 


Tel.: 0 69/6 65 75-30 

Fax: 0 69/6 65 75-3 50 

E-Mail: hauptverband@farbe.de 

Web site: http://www.farbe.de 

Industrie-Gemeinschaft Aerosole e.V. 

Karlstraße 21 


Tel.: 069 / 2556-1508 

Fax: 069 / 2556-1608 

E-Mail: mibel@igaerosole.de 

Web site: http://www.igaerosole.de

11. PHARMACEUTICAL INDUSTRY 

A special feature of the pharmaceuticals sector in Europe is the large number of small and mediumsized 

independent companies. These work alongside the big multinational concerns. While many 

smaller companies do succeed in competing against the larger firms, current figures indicate that the 

European pharmaceutical industry has largely lost its lead over the competition from the United States 

and Japan, i.e. in terms of the development of new substances. One of the reasons for this lies in the 

economic conditions within which the pharmaceutical industry in the EU operates. 

The pharmaceuticals market in Germany comprises a range of different, partially overlapping 

segments. The market structure is not very transparent, because it consists of different distribution 

channels, different funding sources (e.g. the social insurance funds), and the difference between 

prescription and prescription-free (over-the-counter or OTC) medications. Market data is also 

confusing because it is sometimes quoted in manufacturers’ ex-factory selling prices and sometimes in 

pharmacy prices. 

The German market volume of all medications sold in public pharmacies and hospitals in 2000 

amounted to 18.2 billion € (in manufacturers’ ex-factory selling prices). 


There are some 1,100 pharmaceuticals manufacturers in Germany. Company sizes range from 

individual pharmacies that sell medications under their own name to some two dozen multinational 

concerns, which market their products worldwide. 

In the year 2000, the majority of the German pharmaceutical industry consisted of small and mediumsized 

companies with a total of 114,581 employees. In that year the pharmaceutical industry produced 

products with a total value of 18.6 billion €. 

In 2000, the pharmacy market had a volume of 15.6 billion € at manufacturers’ prices. The number of 

packages sold through public pharmacies in 2000 amounted to 1.6 billion. The pharmacy market covers 

all medications sold in pharmacies, both prescription medicines and OTC products, including those 

whose sale is restricted to pharmacies and those that can be sold in the nonpharmacy sector. The 

hospital sector in the year 2000 represented a volume of some 2.5 billion € at manufacturers’ prices. 

Given the large number of suppliers, the pharmaceuticals market is characterized by fierce competition. 

The pharmaceuticals manufacturers mainly compete with one another on price. Other factors in 

competition are product quality, new product developments, and improvements in existing 

medications, information and training for doctors, the range of services offered, and advertising. 

Competition in recent years has been at its strongest where pharmaceuticals manufacturers have taken 

over the expired patents for successful preparations in order to manufacture their own products. The 

strong growth in generics is clear from a comparison between the years 1988 and 2000. The market 

share of generics in the West German prescription drug market rose from 34.6% to 56.0% (in terms of 

the number of packs sold). The generics market share in 2000 in terms of sales value was 40.6% 

according to the BPI. 480 million generic packs with a value of 4.8 billion € were sold compared with 

356 million originals with a value of 7.0 billion €. 

The 10 largest manufacturers have a market share of 33.8% in West Germany and 33.3% in East 

Germany. It is characteristic of the German pharmaceuticals market that, even taking into account the 

existence of larger groups, the market share of the largest concerns is relatively low in Germany, both

in comparison with other major pharmaceuticals market and in comparison with other major sectors of 

industry in Germany. However, the current wave of mergers in the sector is likely to lead to an 

increasing level of concentration. 

The development of production is dependent on a large number of factors such as prices, the volume of 

imports of finished medicines, and domestic demand from physicians and the public. The development 

of production capacity abroad and overseas demand for the products of the German pharmaceutical 

industry are also of decisive importance. 

Among the approximately 1,100 pharmaceutical manufacturers in Germany, overseas companies have 

established a very strong position. Taking into account their German subsidiaries and distribution 

companies, overseas concerns represent 59.1% of sales in the German pharmacy market. 

In the year 2000 Germany exported pharmaceutical products to a value of 15.0 billion €. That was 

2.9% more than the previous year. Pharmaceutical imports increased by 23.9% to reach a total value of 

13.6 billion €. However, there remained an export surplus balance of 1.4 billion €. German 

pharmaceutical manufacturers achieved half their sales overseas. For pharmaceuticals, exports are 

playing an ever-decreasing role in assessing the international status of the pharmaceutical industry. 

Administrative pressures from officialdom in the importing countries, as well as economic reasons, are 

forcing internationally active companies to set up production and distribution facilities abroad. 

The most important pharmaceuticals markets in the world are Europe, North America, and Japan. The 

world market for pharmaceutical products in 2000 amounted to some US$ 363 billion in 

manufacturers’ selling prices, according to IMS statistics. For the year 2004, IMS estimates that the 

volume of the world pharmaceuticals market will grow to more than US$ 500 billion. 

11.2 TRENDS 

The economic context in which the pharmaceutical industry in Europe operates has improved in recent 

years through regulations in the European Union (EU) for the manufacture, registration, and marketing 

of pharmaceuticals and the resulting legal harmonization. In particular the European registration 

procedures that have applied since 1995 have simplified market access for pharmaceuticals in the EU. 

However, set against these improvements there remain varying regulations for pharmaceutical price 

control and refunding in the individual EU member states. The European internal market for 

pharmaceuticals remains underdeveloped. Each member state still sets its own regulations for 

pharmaceutical price control and refunding, and pricing structures are correspondingly varied. All the 

countries have the objective of seeking to reduce pharmaceutical costs to the state-funded health 

insurance system or at least preventing them from increasing. 

The European Commission has recognized the problems associated with the fact that each member 

state has gone its own separate way with the pharmaceutical industry and is discussing possible 

solutions with the member states.


Pharmaceutical Manufacturers: Key players 

Company City No. of 

employees 

Basf Ag Ludwigshafen 104,091 

Merck Kgaa Darmstadt 33,520 

B. Braun Melsungen Ag Melsungen 27,260 

Schering Ag Berlin 23,720 

Clariant Gmbh Sulzbach 8,816 

Boehringer Ingelheim Pharma Kg Ingelheim 6,803 

Asta Medica Ag Dresden 5,109 

Schwarz Pharma Ag Monheim 3,066 

Dr. Karl Thomae Gmbh Biberach 3,017 

Hoffmann-La Roche Ag Grenzach-Wyhlen 2,414 


Market structure by number of employees in the 

German pharmaceutical industry 

Size 



0 – 19 11 3 

20 – 49 92 28 

50 – 99 55 17 

100 –199 52 16 

200 – 299 37 11 

300 – 499 29 9 

500 – 999 27 8 

1000+ 22 7 

TOTAL 325 100 

(Source: Statistisches Bundesamt, Reihe 4.1.2.) 


Key data for the German pharmaceutical industry 

Pharmaceutical 

manufacturers: approx. 1,100 

No. of employees: approx. 114,600 

Pharmaceutical production: 18.6 billion € 

Pharmaceutical exports: 15.0 billion € 

USA 2.2 billion € 

Main markets: Switzerland 1.9 billion € 

France 1.2 billion € 

Pharmaceutical imports: 13.6 billion € 

USA 1.8 billion € 

Main suppliers: Switzerland 1.1 billion € 

France 1.1 billion € 

(Source: BPI) 

Structure of the German pharmaceutical industry 

Companies by size category 

Up to 99 employees 

68.60% 

100 to 499 employees 

22.20% 

500 and more employees......................................... 9.20% 

(Source: Statistisches Bundesamt, Statistik des verarbeitenden Gewerbes und 

Statistik industrieller Kleinbetriebe im verarbeitenden Gewerbe) 



BPI 

Bundesverband der Pharmazeutischen Industrie e.V. 

Robert-Koch-Platz 4 

10115 Berlin 

Tel.: 030 / 27909 - 130 

Fax: 030/ 27909 - 330 

E-Mail: presse@bpi.de 

Web site: http://www.bpi.de/

BAH 

Bundesverband der Arzneimittelhersteller e.V. 

Ubierstr. 71-73 

53173 Bonn 

Tel: 0228 / 95745 - 0 

Fax: 0228 / 95745 - 90 

E-mail: bah@bah-bonn.de 

Web site: http://www.bah-bonn.de/ 

Deutscher Generikaverband e.V. 

Hardtstr. 4 und 11 

82436 Tauting 

Tel. 08847 / 6909-0 

Fax 08847 / 6909-99 

E-Mail: info@generika.de 

Web site: http://www.generika.de/ 

VFA 

Verband Forschender Arzneimittelhersteller e.V. 

Hausvogteiplatz 13 

10117 Berlin 

Tel: 0 30/2 06 04-0 

Fax: 0 30/2 06 04-222 

Web site: http://www.vfa.de


11.5.1 Company G 

Industry: Pharmaceuticals 

Subsector: Disinfectants 

Location: Hamburg 


Web n/a 


Company G was established as a family business in Hamburg in 1924. It is based in Hamburg- 

Stellingen, where it mainly produces disinfectants for medical uses, as well as an antiperspirant since 

1926. It is one of the leading European companies in the field of hand disinfectants and hospital 

sanitation. In 1980, Beiersdorf AG acquired an initial 50% holding in Company G that was 

subsequently increased to 75% three years later. Company G has 270 employees; in the year 2001, its 

sales totaled 60 million €. Products are exported to the whole of Europe, the Baltic states, South 

America, Australia, and Southeast Asia. 

Each year, Company G and the German Association for Hospital Sanitation award a prize for the best 

research paper on hospital sanitation. 



Sterillium N/A 500 ml, 1 l and 5 l PE bottles 

Antiperspirant N/A Glass and PE bottles, 30 ml-75 ml 



Bottle filling machines (Kugler) 3 Germany 1.5 years 

Bottle filling machines (Bosch) 2 Germany approx. 10 years 

Closing machines (Kugler, Bosch) 5 Germany up to 10 years 

Cartoning machines (Skinatta) 1 Germany approx. 10 years 

Stretch wrapping machines 1 N/A N/A 

Labeling machines (MR) 6 Germany 3–5 years


The last machines to be purchased were a bottle filling machine and a closing machine made by 

Kugler, bought 18 months ago for a total of 250,000 €. 


The company will probably purchase more packaging machines over the next 3 years. Machinery will 

be purchased on the basis of requirements that arise over that period. One compelling reason for 

purchase is the introduction of new bottles by the marketing department. There is no fixed budget for 

new machines or machine parts; the amount cleared for new machines is based on the required machine 

performance and how it is equipped, i.e. which bottles are to be filled and how many. Therefore, which 

machines will be purchased cannot be stated with any accuracy yet. 


The machines are selected through collaboration between the responsible employees in the production 

department, production management, and the purchasing department. This means that the opinions of 

both users and the purchasing department can be taken into consideration. Several offers are obtained 

and compared before the decision is jointly made on the basis of various parameters. 

Efforts are also made to buy machines from only one manufacturer so that it is not necessary to store 

spare parts from many different manufacturers. 

Another important basis for deciding on a particular machine is that the intention is to gradually and 

progressively automate the production process. At present, there are still many steps in production that 

are performed manually (e.g. feeding the machines with bottles), so the output capacity of the machines 

is still dependent on how many the employees can manage. In view of the increasing volume of orders, 

it will be necessary to automate production operations progressively. Accordingly, the machines are 

selected according to the criterion that they will still be able to provide the required output level in a 

few years’ time (assuming continued increase in volume of orders). 

Machinery is purchased directly from the manufacturers, and it is paid for directly. 


The precondition for buying a machine is that the company concerned has ISO certification. Due to the 

fact that Company G produces pharmaceutical products, it is also very important that new machinery is 

compliant with GMP requirements (European Good Manufacturing Practice). In addition, Company G 

must conform to the Pharmaceuticals Act, i.e. operations must be conducted in a perfectly hygienic 

manner. For that reason, new machines must comply with certain requirements in respect to surfaces 

and materials. It is also very important that the machinery manufacturers can provide materials 

certificates and qualification documents. 

The company’s own experience with the manufacturer and the experience gained by other users with 

the particular machinery are other factors that play a role. It is very important that the supplier address 

the company’s special needs and problems. The supplier should give some thought to those needs and 

problems and find a solution, even when the requirements are not congruent with the standard machine. 

A supplier must be flexible on this point. It is also imperative that spare parts are delivered quickly; 

many repairs can then be performed by the company’s own workforce. However, an employee from the 

manufacturer is called in as soon as the repair job relates to the machine control systems. In the field of

SPSS control systems, employees are able to enter new programs themselves to only a limited extent. It 

is then urgently necessary that a fitter from the manufacturer be on site quickly to help. 

The Internet is used when the company wants to find out something about suppliers with whom there is 

no contact as yet. In most cases, letters are written to these suppliers to obtain more precise details 

about particular machines. 


The company has no experience whatsoever with American suppliers. 

The relationship with current suppliers is good on the whole. There are positive and negative aspects to 

every purchase; these do not necessarily relate to the machine itself, but perhaps to the fact that such a 

purchase is something new, or because something was not properly implemented. However, this is not 

a criterion for removing a supplier from the list. 

The construction and design of German machines makes them very robust and durable. They also 

conform to sanitary requirements, although it should be said that GMP, i.e. measuring standards and 

the requirements of the Pharmaceuticals Act, are in fact complied with by all manufacturers (or at least 

by European manufacturers). German machines are also innovative—innovations are introduced and 

implemented relatively quickly. However, the cost-benefit relationship could be better. The purchase 

price for closing machines is not always fully justified. 

Italian machines are much less expensive in Italy than they are in Germany, but the companies that 

import and resell them impose too much of a markup on the original price. For that reason, the costbenefit 

relationship is no longer acceptable. At the international level, German suppliers are somewhat 

too expensive. 

Italian manufacturers do not actually differ from German manufacturers except with regard to price; 

they concentrate on customer requirements and have the same standards. On the other hand, it is 

essential to make very precise stipulations. 

The company has too little experience with manufacturers from other European countries or the United 

States to be able to comment on them. 


Company G has a presence at trade fairs for disinfectants and pharmaceutical products (the names were 

not known). 

The Interpack is visited by members of the production and purchasing departments. The Fachpack is 

usually visited by the purchasing department. 


The trend in the packaging industry is toward the ‘No-Label-Look’ (i.e. transparent labels) and to 

‘Leporello’ labels (labels with multiple folds for opening out) for opening, because more and more 

information has to be provided on smaller and smaller bottles. Another trend is that more and more 

PET, i.e. transparent bottles, are being used.

11.5.2 Company T 

Industry: Pharmaceuticals 

Subsector: Drugs, diagnostic material, vitamins 

Location: Grenzach-Wyhlen 


Web n/a 


Company T was founded in 1896 in Switzerland. In 1897, the first German branch was opened in 

Grenzach. Today the company is one of the leading manufacturers of drugs, diagnostic material, and 

vitamins in the world. The German holding company employs 12,000 people and has 5 sites. The 

German turnover is 2.6 billion €. In Grenzach, drugs, ointments, and vitamins are produced for the 

German market. 2,500 people are employed there. 



Hormones N/A Syringes in blister packaging 

and NFE (metal alloy) needle 

injections. 

Antibiotics N/A Glass ampoules in blister 

packaging 

Drugs N/A Blister packaging 

Capsules N/A Blister packaging 



Average 

Age 

Blister lines Uhlmann 2 Germany 4 to 5 years 

Blister line Horn & Noack 1 Germany >10 years 

Blister line Bosch 1 Germany 1 year 


The last purchase was a blister line from Bosch for 2.6 million €.


New machines are purchased when they support reorganization. Also new machines are needed for 

products that have different packaging. The machines are selected by a project group, consisting of the 

people from the production department, the packaging development area, and the purchasing 

department. This group is also responsible for the final investment decision within the given budget. 

The machines are bought directly from the manufacturer and paid for all at once. 


In addition to the points mentioned, such as reorganization, broadening of the product line, and 

economic issues, the quality of the machinery plays an important role. For the decision-making process 

the speed of the after-sales service is also very important. The company very often does not need a 

technician from their supplier because it has enough qualified technicians, but punctual delivery of 

spare parts and flexibility are important. 

The Internet is used to gather general information. The advantage is that one obtains information on 

different products without purchasing pressure. The disadvantage is that one cannot get detailed 

information. For this, the manufacturer has to be contacted directly. 


The company has no experience with American manufacturers. Their relationships with their current 

suppliers could be better. The reaction time is too long, especially if part production is concerned. 

German manufacturers set trends and are reliable. The flexibility of the machines could still be 

improved because it takes too long to change the machine over to another packaging process. The costs 

for single parts are too high. 

The cost/benefit issue is satisfactory, but service could be improved. The problem with German 

manufacturers is not the price but everything that comes after the purchase, for example, whether the 

machine is running well or if modifications are needed. Their service is too expensive and is a poor 

value for the money. Servicing costs are disproportionate, for example, a 125,000 € price for servicing 

a machine that is worth 2.5 million €. Also some inflexibility is shown. There is room for 

improvement. 

Technologically, Italian manufacturers are behind the Germans but less expensive. The machines 

themselves provide greater flexibility, but in respect to production, installation, and servicing, the 

Italians are less flexible. 

As the company mainly has machines from Germany, they do not have much experience with other 

machines. 


The Interpack, the Achema, and the Packit are attended regularly. 


There is a trend toward further reorganization.

12. PERSONAL CARE, SOAPS, DETERGENTS INDUSTRY 


The information in this section comes mainly from the relevant trade association, the Industrieverband 

Körperpflege and Waschmittel e.V. (IKW). The IKW brings together manufacturers and distributors of 

personal care products, soaps and detergents, and care and hygiene products. The IKW currently has 

some 350 members, 210 of which are manufacturers of personal care products and 120 are 

manufacturers of soaps and detergents. 

More than 95% of the IKW member firms are small and medium-sized companies, employing about 

48,000 workers and with over 95% of their sales volume in Germany. 

The Western European market for personal care products grew by 4.6% in 2000. Market volume 

amounted to 51.6 billion €. The biggest national personal care product markets remain Germany 

followed by France, Great Britain, Italy, and Spain. In terms of annual per capita consumption, 

Germany is in 11 th position in Western Europe with 127 €, behind the Netherlands and ahead of Spain. 

At the top is Switzerland with 208 €, followed by France, Norway, Sweden, Great Britain, and Austria. 

The market volume for personal care products exceeds 10 billion €. The largest segments remain hair 

care products with 2.74 billion € and skin care products with nearly 2.10 billion €. The second-largest 

growth this year was in artistic cosmetics with +1.9% to a market volume of 1.15 billion €. 

For detergents and cleaning products, there was again modest growth in 2001. The market volume is 

now 3.84 billion €. Within this, by far the largest market is for universal detergents, with 1.18 billion €. 

More powder products are again being sold, increasing again this year at the expense of liquid 

products. Positive developments were also experienced in the markets for special detergents (263 

million €; +9.6%) as well as special cleaning and care products (267 million €; +3.8%). 

The market for hygiene products developed significantly better than in the previous year with a growth 

of 4.2% and a volume of over 3 billion €. The greatest improvement has been seen with paper towels, 

tissues, and toilet paper, with sales of over 1.53 billion € (+9%). Feminine hygiene products also grew 

by 2.2% after many years of stagnation. On the other hand, sales of diapers and other hygiene products 

have fallen. 

12.2 TRENDS 

After a good start in the first half of 2001, the personal care and detergent industry was not spared from 

the economic recession in the second half. In the course of 2002, a gradual economic upturn and a 

growth in private consumption are expected. 

The personal care products sector is also being affected by new regulations from the EU, covering for 

example, a possible ban on cosmetics containing ingredients that have been tested on animals, a ban 

that the industry argues is unrealistic. 

Also relevant to this sector is the implementation of the German environmental code of conduct. The 

objective of this voluntary initiative by the European detergent industry is to reduce overall 

consumption of detergents, packaging materials, nonbiodegradable substances, and energy in washing 

by 10% EU-wide by the end of this year. This initiative is already showing results: Per capita 

consumption of detergents in Germany declined from 8.1 kilograms in 1998 to 7.6 kilograms this year.

The use of nonbiodegradable substances was reduced by more than 20% between the years 1996 and 

2000. 

A study on packaging by the IKW showed that 74% of all respondents consider attractive packaging 

important. Extravagant packaging is most readily accepted for perfumes and eaux de toilette (toilet 

water), artistic cosmetics, high-priced products, and gift items. On the other hand, one-quarter of the 

respondents rejected extravagant packaging without exception. The respondents agreed that in no case 

should packaging be misleading concerning the relationship between the size of the packaging and the 

quantity of contents. Consumers are also equally determined in their desire for refillable packages. 

The IKW also showed that 46% of all consumers take special care, e.g. with soaps and shower gels, to 

make sure they have completely emptied the packaging. 

These consumer expectations are of particular relevance to the personal care products industry. Where 

possible, light forms of packaging are used. The only limitation is the need for stability. The volume of 

packaging materials has been reduced by up to 50% in the last few years. 

For toothpaste and similar products, the external carton has been dispensed with. For other personal 

care products, refill systems or concentrates requiring smaller containers are available. In 1996, 194 

kilograms of material were needed for the packaging of 1,000 kilograms of toothpaste. For the same 

volume of shampoo, the weight of the packaging material was 165 kilograms, for hair sprays 355 

kilograms, for shower gels 177 kilograms, and for foam and cream bath gels only 141 kilograms.


Personal Care, Soaps & Detergents Manufacturers: Key players 

Company City 

No. of 

employees 

Albert Pfaffenzeller Gebaeudereinigung 

Gmbh 

Augsburg 3,319 

Procter & Gamble Holding Gmbh Schwalbach 1,506 

Henkel-Ecolab Gmbh Duesseldorf 941 

Axolfan-Fabrik Emil Kock Gmbh Norderstedt 500 

Luhns Gmbh Wuppertal 470 

Diversey Gmbh Mannheim 385 

Dalli-Werke Waesche- Und Koerperpflege 

Gmbh 

Stolberg 300 

Henkel Genthin Gmbh Genthin 287 

Schilling-Chemie Gmbh U. Produktions Kg Freiberg 260 

Florena Cosmetic Gmbh Waldheim 250 


Market structure by number of employees in the 

personal care, soaps, detergents industry 

Size 



0 – 19 6 3 

20 – 49 84 36 

50 – 99 49 21 

100 – 199 42 18 

200 – 299 16 7 

300 – 499 16 7 

500 – 999 11 5 

1000+ 9 4 

TOTAL 233 100 

(Source: Statistisches Bundesamt, Reihe 4.1.2.) 


Personal care products 

2000 2001 2000/2001 

Total market and market segments estimate estimate 

million € million € % 

Hair care products 2,652 2,741 3.4 

Skin care products 2,093 2,092 0 

Toothpaste and dental hygiene products 1,149 1,164 1.3 

Artistic cosmetics 1,130 1,152 1.9 

Feminine perfumes 787 794 0.8 

Masculine cosmetics 659 663 0.5 

Bath and shower products 702 696 -0.8 

Deodorants 657 668 1.6 

Soaps 225 221 -1.6 

Other personal care products 381 384 0.8 

TOTAL PERSONAL CARE PRODUCTS 

(Source: IKW) 

10,435 10,576 1.3 

Detergents and cleaning products 

2000 2001 2000/2001 



Universal detergents 1,150 1,176 2.2 

Special detergents 240 263 9.6 

Detergent additives 606 583 -3.8 

Dishwasher products 516 506 -2 

Household cleaning products 599 598 -0.1 

Upholstery care products 105 104 -0.5 

Leather care products 99 95 -3.6 

Car care products 240 235 -2.1 

Special cleaning and care products 

TOTAL DETERGENTS AND CLEANING 

258 267 3.8 

PRODUCTS 

(Source: IKW) 

3,813 3,829 0.4

Hygiene products 

2000 2001 2000/2001 



Feminine hygiene 625 639 2.2 

Baby hygiene (diapers) 698 685 -1.8 

Paper towels/tissues/toilet paper 1,451 1,581 9.0 

Other hygiene products 144 134 -7.1 

TOTAL HYGIENE PRODUCTS 2,918 3,040 4.2 

(Source: IKW) 


IKW Industrieverband Körperpflege- and Waschmittel e.V. 

Karlstr. 21 


Tel.: 069/25 56 13 31 

Fax: 069/23 76 31 

Web site: http://www.ikw.org 

BDIH Bundesverband Deutscher Industrie- and Handelsunternehmen für Arzneimittel, 

Reformwaren and Körperpflegemittel e.V. 

L 11, 20-22, 68161 Mannheim 

Tel.: 06 21/129 43 30 

Fax: 15 24 66 

Web site: http://www.bdih.de 

VKE 

Verband der Vertriebsfirmen Kosmetischer Erzeugnisse e. V. 

c/o Markenverband e.V. 

Schöne Aussicht 59 

65193 Wiesbaden 

Tel.: 06 11/58 67-0 

Fax: 06 11/58 67 27 

Web site: http://www.markenverband.de 

Verband der Kosmetikpräparate and Geräte-Firmen e.V. 

Fleiner Str. 21 F 

70437 Stuttgart, 

Tel.: 07 11/84 19 60 

Web site: http://www.cosmetic-professional.de


12.5.1 Company E 

Industry: Personal care 

Subsector: Dental care 

Location: Seefeld 

Size: (sales) 485 million € (the whole Group) 

Web n/a 


The company was founded in 1947 by two chemists who had previously developed a Xylestisin 

solution they wanted to market. The company is based in Seefeld and has two additional plants in 

Wertingen and Landsberg. The dental division grew rapidly and now produces a wide range of 

products in the dental and dental technology fields. The range extends from anesthetics to molds for 

fillings and prosthetics. The workforce currently numbers about 1,200, of whom approximately 900 

work in Seefeld. A large American company has just taken over the dental division. These dental 

products account for about 485 million € of total sales in Germany. Exports are wide-ranging and are 

mostly sent to countries within Europe and to Asia. Several subsidiaries operate in Europe under a 

common name. 



Molding materials Aluminum composite foil 

comprising 3 different layers, 

in cartons 



Average 

Age 

Poli-clip bag filling machines 2 Germany 8 

Coning machines 2 Germany 2 

Mohrbach carton folding machines N/A Germany N/A 

Oli 1 Germany 8 

Own construction of complete production 

lines comprising 10–15 machines 

N/A N/A N/A


Two months ago, a stretch wrapping machine made by AVT, a German manufacturer, was purchased 

for approximately 32,000 €. 


No further purchases are planned for the next 3 years, so there is no fixed budget. However, in the 

event that a new product is intended for launch, appropriate packaging machines will be procured or 

built in-house. 


Retrofitting, i.e. flexibility, is a must. Because the time factor is so crucial, it is imperative that 

retrofitting can be carried out easily and quickly. Particular value is also attached to ease of 

maintenance and good quality. Tenders are invited from suppliers and manufacturers. If all the 

machines tendered comply with the specified requirements, the decision is based on price. Potential 

suppliers are identified by a process engineer and the production department. The final decision to buy 

is made by the manager of the unit where the machine is to be installed. The machine is then purchased 

directly from the manufacturer. New suppliers are always considered. Before a new machine is 

purchased from a new supplier, investigations are conducted to determine how many of these models 

have been sold and whether the buyers are satisfied with their machines. Serious suppliers provide a list 

of references for this purpose. 


The first step is to define the performance specifications that the packaging machine must meet. A 

machine must be efficient. The performance required is dependent on the quantities to be packaged. It 

makes no sense to buy a high-performance machine if the upstream packaging units have a lower 

output or if the machine cannot be run to full capacity because not enough can be produced. 

A critical factor in the decision to buy is how the machine, the motors, and electrical parts are 

controlled. Company E has internal regulations stipulating which operating supplies must be available. 

In some cases, smaller packaging machines are not able to comply with these stipulations, in which 

case it may be necessary to deviate from some of them. The company tries to keep the number of 

different manufacturers whose machines are installed to a minimum. The advantage of this approach is 

that less storage space is needed for spare parts. 

The Internet is used to obtain information. However, buying on the Internet is not considered an option. 

Web sites create a positive or negative impression. Most manufacturers have well-organized sites, 

whereas other Web sites are less user-friendly or informative. To obtain details about machines, the 

company prefers to approach manufacturers directly, i.e. by phone. 


The company has no experience with American packaging machines / suppliers and little or no 

experience with British, Dutch, French, and Italian machines / suppliers. 

The cost/benefit for German packaging machinery is acceptable, and the price itself can usually be 

negotiated. German machines are technologically advanced and the manufacturers are very innovative. 

Flexibility and service could be improved upon. This is often a matter of price. Special modifications

and requirements have to be paid for as extras, and a certain amount of flexibility is lost in the process. 

Standard machines, on the other hand, are more flexible. 

Swiss manufacturers have good ideas as far as the technology is concerned and have made innovations 

in the packaging materials sector. Their products exhibit a similar level of flexibility to those made in 

Germany. In other words, all manufacturers have their specific problems with special modifications 

because these may reduce profits. There has been no need so far to use the service provided by one 

Swiss manufacturer. Prices are higher than in Germany, on average. 


The Fachpack, Interpack, Hanover Fair, and the Motech Fair in Sinsheim are visited regularly. 


The trend is toward blister packages and films in every shape and size, such as flat packs and tubes, 

printed and unprinted. Composite materials are used less and less, presumably because these are more 

expensive.

12.5.2 Company L 

Industry: Personal care 

Subsector: Personal hygiene 

Location: Wuppertal 


Web n/a 


Company L was founded in 1886 in the United States. They were one of the first companies to produce 

antiseptic surgical dressings and a little later the adhesive plaster. They founded their first overseas 

affiliate in 1924 in Great Britain, and today they are present in 175 countries all over the world. The 

company is divided into several divisions: medical, surgical, skin care. In Wuppertal, Company L 

produces tampons for the German and European market. 



Tampons n/a cardboard boxes 



Average 

Age 

Schubert cartoning and filling 

machines 



New machinery is necessary when the company identifies a market for products in new packaging. A 

project team is then composed. Its members are from the production department, the technical 

department, and the purchasing department. In the case of bigger investments, the managing director 

makes the final decision. 

The company buys directly from the manufacturer.


Machinery must be safe for the people working on it. Obviously it has to meet the company’s 

requirements. Also required is greater efficiency: fewer staff working at the machine and faster 

machines. Efficiency is measured according to the packaging details. They have to be inexpensive 

when taking after-sales costs into account. The manufacturer has to be able to help the technicians if a 

defect occurs. The company expects the manufacturer to be based in Germany. They expect a 

technician to be available within 24 hours. 

The company uses the Internet to research potential suppliers as an initial stage of the process. The 

Internet is a good tool to find out whom to contact personally. 


The problem with American packaging machines is that the service is too slow. American 

manufacturers should have an agency and technicians in Germany. Additionally, spare part costs are 

very high if you take the US$ exchange rate into account. The company has a Jones cartoning machine. 

They have a very good opinion of German machinery. They have well-established technology and 

modern machines. The flexibility could be better. Some American or Italian manufacturers react faster 

and better to special requirements, especially considering the changes in format. With regard to 

technology and innovation, American machinery is rated as middling. Overall quality is worse than that 

of German machinery. Value for the money is not so good. 

With British machines, special parts or functions are rather expensive. The machines are compact and 

not very innovative. 


The Interpack and Fachpack are visited regularly. 


Machines will be more flexible because of smaller packaging sizes.

12.5.3 Company D 

Industry: Chemicals 

Subsector: Detergents 

Location: Stadtilm / Thuringia 

Size: (sales) 256 million € (the whole group) 

Web n/a 


Company D was founded in 1889 to produce lead carbonate. From 1943 to 1948 they produced electric 

installation material, and from 1951 to 1968 gelatin was produced. From 1968 on Company D has 

specialized in the production of detergents and cleaning agents. The headquarters of the company is 

Stadtilm / Thuringia. 

In 1993, it was taken over by Kruse Chemie KG. Kruse Chemie KG was founded in 1912 and 

comprises 24 production sites and offices worldwide. It has 450 employees and achieved a turnover of 

256 million € in 2001. 

Company D is certified ISO 9001 and a member of the Association of Producers of Personal Hygiene 

and Washing Detergents. It exports mainly to Switzerland and Austria and smaller quantities to the 

Baltic Republics and Russia. Moreover, it runs a production site in Hungary. 



Softener and 

N/A 500ml and 750 ml PE, PP, PET 

mild detergent 

bottles 

Household cleaning agents N/A 500 ml–2 l PE, PP, PET bottles 



Average 

Age 

Filling machines (Bosch) 3 Germany 10–25 years 

Filling machines (self-construction) 3 - 10–25 years 

Variopak machine for filling tetrapaks 1 Dutch >10 years 

Closing machines (Bosch, self-construction 

with parts from Mewes) 

6 Germany >10 years 

Closing machine (Rationator) 1 Germany >10 years 

Full wrapping machine from Schrutt 1 German N/A 

Gluing machine for cartons from Harrypack 1 N/A


The company mostly buys machinery parts. The last complete machine was a gluing machine from 

Harrypack for about 2,500 €. 


Within the next 3 years they will definitely invest in new machinery because all the existing filling 

machines are older than 10 years and have to be exchanged step by step. 


The most important reason for an investment in new machinery is replacement of older machinery. As 

a smaller player on the market, the company has to follow the demands of the market, i.e. changing 

packaging design regularly. A redesign of the labels or (less often) the whole bottles by the marketing 

department brings new requirements to machinery and therefore sometimes new machinery or parts of 

machinery have to be ordered. 

Investments are decided upon in autumn. The market development plan for the following year is taken into 

account. 

Decision makers are the operation manager and the production manager, with the company management 

having the last word. They always look for the optimum in price and performance. The budget is dictated 

by the demands, although there is of course a price limit. As a smaller company, they do not buy the best 

machinery (because that is too expensive) nor the cheapest (since this gets too expensive in the long run). 

Service costs and the costs for spare parts are always taken into consideration. 

The company buys directly from the supplier 


The most important point when buying machinery from a certain supplier (especially foreign 

companies) is whether they can be sure that a technician can be there right away if there is a defect, 

because the company has no substitute machinery that could take over production. They say: “ There 

must never be a stop in production just because there is a public holiday in Italy and the technician 

will take three days to get here.” 

They expect their supplier to have technicians all over Germany and will be with them so fast that only 

one shift (i.e. 8 hours) has to be cancelled (they work in two shifts). Smaller machines cannot substitute 

for high-performance machinery that fills 35,000 bottles/shift, and not all machines can fill all bottle 

types. Therefore, if the technician takes too long, the costs for missed production become excessive. 

With machinery from abroad, the travel costs for the technicians are too high as well. 

The technicians themselves have to be competent. They should be able to recognize the defect on the 

phone and bring the spare part with them, or they should at least be able to order it and do the repairs 

after a very short time. They should not analyze the defect and only then order the spare part. 

Important points in choosing a certain supplier are reliability and speed and quality of the customer 

service. When buying modules with SPSS controls, it is very important to them that the supplier can 

deal with a defect through diagnosis on the telephone or that the technical data sheets are so good that 

their own employees can do that.

Flexibility is an important point, too, as long as the changeover time is not too long. They only buy 

directly from a manufacturer, because that way the flow of information is not hindered by third parties. 

The people in charge of choosing packaging machines rarely have enough time to use the Internet for 

research. It takes too long before the desired information is found. Furthermore, the information is not 

considered reliable. All suppliers are interested in selling their products, so they will obviously 

recommend their own machinery. The pros and cons can only be discovered when talking to the 

supplier or someone who works with the machinery. Only this kind of analytical expertise can provide 

information about the frequency of malfunctions and susceptibility to malfunction. 


The company does not have any experience with American suppliers. 

German machinery is no different from foreign machinery. The company distrusts the image that is 

portrayed at trade shows. There, machinery runs under ideal conditions, so the impression is that all of 

them are high-technology products. However, the real quality shows only when the machinery is 

operating at the production site. Therefore, one has to talk to the supplier and to other users. The 

quality of foreign machinery cannot be judged because they do not have enough experience with it. 

They guess that it is no worse than German machinery. 

The company has problems with French suppliers because they do not speak German. They have the 

impression that customer service in Germany could be better. 

Italian machinery was bought for a price 10–15% lower than for comparable German machinery. The 

problem is the cost that followed the investment. Costs of service and repairs are immense. Also the 

technician does not arrive fast enough and is constrained by Italian public holidays. The service by 

German suppliers is surprisingly good in comparison. 

The company has good experiences with the Dutch manufacturer Variopak. The service is very good, 

but the costs are too high. The machinery has to be serviced twice a year and because the price of the 

machine was quite high, the investment is not really profitable. 


The company visits the Fachpack.

12.5.4 HAKA Kunz GmbH 

Industry: Chemicals 

Subsector: Detergents 

Location: Waldenbuch 


Web www.haka.de 


HAKA Kunz GmbH was founded in a small town near Stuttgart in 1946. They first produced only soap 

and then expanded their range of products to household detergents and cosmetics. They are still a direct 

sales company and, apart from a staff of 250 at their production site, today have 17,000 representatives, 

who are specially trained in the company’s training facilities. The company is certified for quality and 

environmentally friendly management. They have an annual turnover of about 75 million €. 



Detergents N/A bucket 

Household 

detergents/ soap 

powder 

Toilet and kitchen 

detergent 


N/A 2 l PE bottles ,5 l bottles 

N/A 500 ml, 750 ml, 3l PE 


Breitner filling machines N/A Germany 4 

Rationator filling machines N/A Germany Built between 1960 and 

1997 

Rovema powder filling machines N/A Germany Built between 1960 and 

1997 

Elpack powder filling machines N/A Israel Built between 1960 and 

1997 


The last machine purchase was a Breitner filling machine in 1998, and the company is not expecting to 

buy new machinery within the next 3 years.


At the moment the company has only one valid reason to purchase new machinery: to replace aging 

existing machinery, especially when faults are not repairable or repair costs get too high. In general, 

new machinery has to be ordered when the marketing department designs new bottles. However, 

because the company is a direct sales company, the design of the bottles is not as important as if the 

company is selling via retailers. It is more important that the bottles are robust. 

The production department looks for new machinery according to requirements. The purchasing 

decision is made by the production department together with the company’s managing board. 

They have good experience with manufacturers for the most part. They tend to work with 

manufacturers from which they already have machinery. That is not always possible especially when 

they need machinery for new packaging as opposed to substitutes for existing machinery. They use the 

Internet as an information source. However, the importance of the Internet depends on the kind of 

machinery they are planning to buy. 

If they are looking for machinery that will produce a high output, the information gathered from the 

Internet is good. If they are looking for machinery to be used with different formats, they would be 

entering a longer-term relationship with a manufacturer and then business is best done on a personal 

basis. 

They buy directly from the manufacturer and pay right away. They only lease machinery for a short 

period of time. 


The company is certified so the supplier has to fulfill the same certification criteria. First and foremost 

they have to deliver what is ordered. The after-sales service plays a role in the decision-making 

process. Suppliers that are too slow in delivering spare parts or too slow to react to their demands will 

not be considered when new machinery is going to be purchased. The company expects spare parts 

and/or a technician to be in-house within 24 hours, maybe 36 hours, especially if a defect is causing a 

production standstill. This requirement is met by most of their suppliers. Furthermore, in most cases the 

staff can do repairs with standardized spare parts, which they stock. 

In general, machinery details are very important. They want to see and try the machine first. It is 

therefore always a positive point if there are samples of packaging. 


They do not have experience with American packaging machines. German machinery is well advanced 

in technology and innovation. German manufacturers have quite good ideas, and they implement them 

well. 

In an international comparison, German machinery also has a high degree of flexibility. The general 

disadvantage is that, while almost all machines are flexible, they always need special parts. It is 

impossible to use standard parts. 

The service is satisfactory but very often delivery dates are not kept. 

German manufacturers are quite expensive, especially in comparison to Italian manufacturers. 

However, Italian machinery is not as robust as German machinery, and Italian suppliers tend not to 

respond very quickly.


The company visits the Fachpack, the Interpack and the Achema. 


Company Name: HAKA Kunz GmbH 

Contact: Mr. Schmohn 

Position: Technical director 

Address: Bahnhofstr. 30-32 

71111 Waldenbuch 

Telephone: 07157 –122-0 

Fax: n/a 

E-mail: webmaster@haka.de 

Web site: www.haka.de

13. PAINT INDUSTRY 


The paint industry in Germany is mainly populated by small and medium-sized companies oriented 

toward the domestic market. This structure is changing, because the industry’s major customers are 

active on an international scale, and they expect their suppliers to be international likewise. Increasing 

demands for product safety and environmental protection in both manufacture and application of paints 

have required substantial investments in the development of suitable products in the last few years. 

In Germany in 2000, some 22,000 employees worked in around 250 paint factories. The average paint 

factory has annual sales of 15 to 20 million € and employs between 50 and 100 people. In 2000, 2.1 

million tons of paints and lacquers were manufactured with a total value of nearly 4.7 billion €; more 

than 20% of this was exported. Thus, the German paint industry has the leading position in Europe—a 

long way in front of Italy, France, and Great Britain. 

In 2000, 1,765,000 tons of paints and lacquers were consumed in Germany (volume of production 

minus exports plus imports). About two-thirds of domestic consumption was accounted for by paints 

and lacquers for building. Industrial paints took a share of 14.2% of domestic consumption with 

250,000 tons. They serve for decoration, functionality, and protection for a wide range of materials— 

from steel sheets, aluminum, and castings to plastics and ceramics. 


Company 

Paint Manufacturers: Key players 

City No. of 

employees 

Dupont Performance Coatings Gmbh & 

Co.Kg Wuppertal 2,976 

Sto Ag Stuehlingen 2,798 

Brillux Gmbh & Co. Kg Muenster 2,000 

Dystar Textilfarben Gmbh & Co Deutschland 

Kg Frankfurt 1,450 

Akzo Nobel Coatings Gmbh Stuttgart 1,118 

Deutsche Amphibolin Werke Von Robert 

Murjahn Gmbh & Co. Kg Ober-Ramstadt 1,050 

Basf Drucksysteme Gmbh Stuttgart 709 

Relius Coatings Gmbh & Co Oldenburg 700 

Clariant Masterbatch Gmbh & Co Ohg Lahnstein 677 

Ppg Industries Lacke Gmbh Wuppertal 672 



the paint industry 

Size 



0 – 19 16 5 

20 – 49 101 33 

50 – 99 78 26 

100 – 199 61 20 

200 – 299 13 4 

300 – 499 17 6 

500 – 999 12 4 

1000+ 5 2 

TOTAL 303 100 



Key figures for the paint industry in Germany 2000 

No. of manufacturers: c. 250 

No. of employees: c. 22,000 

Production by value: c. 4.7 billion € 

Production in tons c. 2.09 million tons 

Exports in tons: c. 0.43 million tons 

Imports in tons: c. 0.10 million tons 

(Source: Produktionsstatistik des Statistisches Bundesamt)

German Production of lacquers and paint 

in 1000 € 

5,000,000 

4,000,000 

3,000,000 

2,000,000 

1,000,000 

2500000 

2000000 

1500000 

1000000 

500000 

0 

0 

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 

Source. Statistisches Bundesamt 

German Production of lacquers and paint 

Volume in tons 

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 

Source: Statistisches Bundesamt

500000 

400000 

300000 

200000 

100000 

Export and import of lacquers and paint volume in 

tons 

0 

Market segmentation 2000 

1996 1997 1998 1999 2000 

Lacquers and Paint 

Volume in 1,000 tonnes Share in percent 

for construction 

for industry 

for car industry 

for wood 

corrosion protection 

other 

1,204 

250 

90 

80 

48 

61 

Total 1,765 

68.2% 

Export 

Import 

Source. Stat. Bundesamt 

14.2% 

6.9% 

4.5% 

2.7% 

3.5%

14. PET FOOD INDUSTRY 


In 2000, the turnover in the pet food industry in Germany reached a total of 2.77 billion €, consisting of 

2.04 billion € for ready meals for pets and 0.73 billion € for commodities and supplies. The rate of 

growth in the ready meal market remained stable in 2000. A trend toward an increased usage of 

terrariums and an increasing product variety for rodents is noticeable. 

According to this overview, the market for pet commodities has not changed substantially over the last 

3 years. According to the ZZF-Zentralverband Zoologischer Fachbetriebe Deutschlands (www.zzf.de) 

the commodity market showed a drop of 3.3% in 1999 (in comparison to 1998). Cat litter reached a 

turnover of 175 million € in 2000, the second biggest turnover position after pet fish. 

75% of the market for ready meals is distributed via the retail industry whereas the strength of the 

specialized trade lies in the commodity sector. The specialized trade has a turnover of 1.12 billion €, 

and the retail industry 1.66 billion €, which represents 67.5% of the total pet food industry. 


Company 

Pet Food Manufacturers: Key players 

City No. of 

employees 

Masterfoods Gmbh Verden 1,550 

Saturn Petfood Gmbh Bremen 232 

H. Von Gimborn Gmbh Emmerich 160 

Pitti—Heimtierprodukte Gmbh & Co. Kg Willich 150 

Bewital Gmbh & Co. Kg Suedlohn 135 

Mucki-Werke Zoologische Artikel-Gmbh Melle 100 

Tiernahrung Deuerer Gmbh & Co. Kg Bretten 90 

Prinz Tiernahrung Gmbh Lage 75 

Sera Werke Heimtierbedarf J. Ravnak Gmbh 

& Co. Kg Heinsberg 60 

Hbt-Heimtierprodukte Gmbh & Co. Kg Lage 50 



the feed industry (without animals for consumption) 

Size 



0 – 19 11 29 

20 – 49 10 26 

50 – 99 7 18 

100 – 199 5 13 

200 – 299 0 0 

300 – 499 3 8 

500 – 999 1 3 

1000+ 1 3 

TOTAL 38 100 



Ready meals in million € in % Commodities in million € in % 

Retail industry 

including drugstores, 

discounters and Aldi 1,530 75 

Specialized trade (pet 

shop, specialized 

departments of 

department stores and 

garden centers, etc.) 

510 25 

Retail industry 

including drugstores, 

discounters and Aldi 124 17 

Specialized trade (pet 

shops, specialized 

departments of 

department stores and 

garden centers, etc.) 

607 83 

Total 2,040 100 Total 731 100 

Turnover figures at end-user prices Turnover figures at end-user prices 

Market for ready meals for pets 

Market for commodities for pets 

in million € in million € 

Dog food 848 Dogs 117 

Cat food 937 Cats 133 

Pet bird food 114 Cat litter 175 

Pet fish food 60 Pet bird 63 

Others 80 Pet fishes 178 

Others 65 

Total 2,040 Total 731 

Turnover figures at end-user prices Turnover figures at end-user prices 

(Source: ZZF)

15. CONCLUSIONS AND RECOMMENDATIONS 

The German packaging machinery market is mainly served by German manufacturers and 

manufacturers from continental Europe. Even though the United States is the third most important 

supplying country for packaging machinery, most of the companies interviewed said they had no 

experience with American packaging machinery. 

German manufacturers in particular have certain key advantages over those from the United States: 

� They are familiar with German rules and regulations with regard to packaging and packaging 

machinery 

� They are familiar with German rules and regulations concerning the food, beverage, or 

chemical industry 

� They have good references, i.e. their machinery can be viewed in operation either at the 

manufacturer’s own production site or at the site of a user company where the relevant 

machinery is installed 

� Production sites are located in Germany or in Europe, meaning that short delivery times can be 

offered for both machinery and spare parts 

� They have well-established after-sales service, with speedy servicing and repair 

� They have no communication problems with regard to language or culture 

Machinery from the United States is criticized for various reasons, either based on personal experience 

or on general preconceptions. In general, German users of packaging machinery have a reserved 

attitude toward American manufacturers. The main issues for criticism relate to their perceived 

insufficient knowledge of the German market, the difference between the American and the metric 

systems, a perception that American technology is “old-fashioned,” too long delivery times, and slow 

after-sales service on account of the distances involved. 

While American packaging machinery manufacturers do not have established branch offices or 

locations in Germany—or at least in Europe—they are unlikely to be considered by the end-users as a 

real alternative to European manufacturers, for the reasons mentioned above. Furthermore, while 

American manufacturers continue to use something other than the metric system, they will not be 

considered competitive. 

The opportunities for US packaging machinery manufacturers in Germany appear to be fairly limited at 

present, and they are likely to remain so until US manufacturers have built up a physical presence in 

Germany and continental Europe, through distributors or locally based offices/agencies. 

Our key recommendations to any US manufacturer wishing to enter the German market are: 

� set up a branch office or location in order to guarantee the potential buyer fast delivery and fast 

after-sales service by being physically present in Germany or Europe; 

� become thoroughly acquainted with German and European regulations relating to packaging, 

packaging machinery, and the food, beverage, and chemical industries; 

� consider how American machinery can best be adapted to the metric system.

16. APPENDIX 

16.1 KEY PLAYERS IN THE GERMAN ‘GROCERY INDUSTRY’ 

A classification into separate sectors like food, beverages, pharmaceuticals, and personal care is— 

regarding the key players of these industry sectors—not useful because manufacturers and producers 

are mostly active in many different sectors. The following list gives a thorough overview for the 50 key 

players of the German “Lebensmittelindustrie”, i.e. “Grocery Industry.” 

No. Company 

Turnover in € 

(billion) 

2000/2001 

(for further 

details see 

relevant Web 

site) 

Year-on- 

Year 

change in 

% 

1999/2000 

(compared 

to 

2000/2001) 

1 Henkel Group 12,800 + 12.5 

2 

Tchibo Holding 

AG 

10,064 

Reemtsma 1) 7,235 

Tchibo Frisch Röst 2,829 

Main products in retailing 

Detergents and household cleaners, 

skin care, glue 

+ 3.0 Cigarettes, coffee, non-food 

3 Philip Morris 1) * 6,596 + 3.5 Cigarettes 

4 

Oetker-Gruppe 5,222 

Oetker 1,238 

Binding Group 887 

Henkell & 

Söhnlein 

601 

+ 20.0 

Cereals, frozen pizza, honey, alcoholic 

and nonalcoholic drinks 

5 Reckitt Benckiser * 5,110 + 9.2 Detergents, cosmetics 

6 

7 

8 

British-American 

Tobacco 1) 

Südzucker Group 2) 4,664 

Südzucker AG 2,973 

Schöller-Holding/ 

Freiberger 

Nestlé Group 

Deutschland 

4,700 + 30.0 Cigarettes 

1,692 

+ 3.0 Sugar, sweeteners, ice cream, frozen food 

4,209 + 2.4 Soup, instant meals, sauces, coffee,

Nestlé 

Deutschland AG 

2,804 

Blaue Quellen 1,048 

baby food, ice cream, confectionery, meat 

products, drinks, dairy products 

9 Beiersdorf 4,116 + 13.1 Skin care products, adhesive tape 

10 

11 

Campina Melkunie 

b.v. 6) 

SCA Hygiene 

Products AG 

3,895 +18.0 Dairy products 

3,400 + 13.6 Hygiene paper 

12 Coca-Cola 3,349 + 0.8 Nonalcoholic drinks 

13 

Unilever 

Deutschland GmbH 

2,992 – 6.0 

Ice cream, margarine, oil, frozen food, 

detergents, cosmetics 

14 Wella 2,824 + 19.1 Hair care, perfume 

15 Nordmilch eG 2,207 – 1.3 Dairy products 

16 Kraft Foods 2,045 0.0 Coffee, confectionery, cheese, pasta, sauces 

17 Moksel 1,896 + 10.2 Meat, meat products 

18 Atlanta 3) 1,854 – 0.5 Fruit, vegetables 

19 Procter & Gamble 4) 1,790 0.0 Detergents, skin care products, fruit juice 

20 

Humana 

Milchunion 

1,687 + 14.0 Dairy products 

21 Cobana/ Fruchtring 1,684 – 2.0 Fruits, vegetables 

22 Kamps 7) 1,669 

+ 

297.8 

Bread, bakery products 

23 CG Nordfleisch 1,600 + 7.5 Meat, meat products 

24 Masterfoods 5) 1,533 Pet food 

25 Molkerei Müller 1,500 + 27.9 Dairy products 

26 Südfleisch 1,453 + 2.9 Meat, meat products 

27 Haribo * 1,380 + 3.9 Confectionery 

28 Medion 1,329 + 30.0 

Consumer electronics & accessories, 

telecommunication 

29 Ferrero 1,319 – 2.0 Confectionery 

30 Schwartau 1,278 0.0 

31 

Pfeifer & 

8) * 

Langen 

1,256 

Intersnack * 614 

Jam, marmalade, drinks, breakfast cereals, 

baby food, meat, canned fish products 

Sugar, crisps/chips, snacks 

32 Tönnies 1,227 + 9.4 Meat, meat products

33 Eckes 1,222 – 1.8 Alcoholic and nonalcoholic drinks 

34 

Holsten 1,182 

KönigBrauerei * 187 

+ 21.3 Beer, nonalcoholic drinks 

35 Melitta 1,150 + 5.1 Coffee, non-food 

36 Krüger * 1,103 Instant products, OTC 

37 Storck * 1,022 + 8.0 Confectionery 

38 

L´ Oréal 

Deutschland 

961 + 6.8 Cosmetics, hair care 

39 Paul Hartmann 956 + 15.4 Hygiene products, bandaging 

40 Westfleisch 898 + 9.2 Meat, meat products 

41 P.H. Wesjohann 4) 865 + 7.5 Poultry 

42 Beck 4) 851 + 3.5 Beer, nonalcoholic drinks 

43 Hochland 729 + 9.6 Cheese 

44 

Bitburger 723 

Gerolsteiner 222 

– 3.5 Beer, nonalcoholic drinks 

45 Stollwerck 717 + 7.3 Confectionery 

46 Brau und Brunnen 706 – 6.9 Beer, non-alcoholic drinks 

47 

48 

JT International 

Germany 1) 

Stute 

Nahrungsmittel * 

692 – 5.6 Cigarettes 

650 0.0 Drinks, jam, marmalade 

49 Stockmeyer 690 + 18.6 Meat, meat products, pet food 

50 Bayernland 660 + 4.0 Dairy products 

(Source: LZ | NET) Compiled: 09.24.2001 

* estimated 

1) 

Incl. tobacco tax 

2) 

Financial year 02.28. 

3) 


4) 


5) 

Not comparable due to merger between 

Effem and Mars 

6) 

Incl. Campina Deutschland with 1 billion € 

7) 

Growth mainly through the acquisition of 

Wendeln (turnover 1 billion €) 

8) 

Incl. Intersnack

Germany Packaging Machinery Market Research Report - PMMI

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