Tetra Pak goes green with lighter caps
LAUSANNE, Switzerland Tetra Pak is redesigning its closure types in order to make their products more environmentally friendly. Both their new pre-applied and post-applied caps will have an increased pouring area (50 percent larger for pre-applied, 25 percent larger for post-applied) and a weight reduction of roughly 20 percent. These changes, which will be market tested during 2009 and commercially released in 2010, will reduce the amount of Tetra Pak’s manufactured plastic and improve the cap’s opening and pouring features.
According to a recent report by analyst Canadean, “Caps and closures are currently a fertile area for new product development and a key means of ‘adding value,’ ‘convenience’ and differentiation to brands and packs in an increasingly competitive global marketplace.”
Tetra Pak is producing a resealable screw cap, called a LightCap, that is combined with the packaging before filling, as well as a one-step opening cap, called a StreamCap, that can be used for packages of various shapes and sizes, such as premium juice, tomato products, wine cartons and milk.
“Beverage manufacturers will benefit from these enhanced screw caps through the light weighting of the material, a significant cut in cap production cycle time, together with enhanced robustness to reduce down time,” said Riccardo Vellani, manager of openings and closures for Tetra Pak Italy.
Food manufacturers battle over ownership rights of trademarked colors
LONDON A recent legal battle against Australian chocolate company Darrell Lea has Cadbury showing its true colors as it fights to protect its trademarked color purple. The confectionary manufacturer is in the middle of a lawsuit accusing Darrell Lea of using purple packaging to purposefully deceive consumers into thinking the products were made by British sweets manufacturer Cadbury.
In April, the Federal Court of Australia ruled in favor of Darrell Lea, stating that the chocolate company had not breached the Trade Practices Act and had not designed its packaging to appear Cadbury-produced. Cadbury plans on continuing the fight, saying it will appeal the judge’s decision.
The heated battle truly exemplifies how important and valuable a brand has become in today’s market. Millward Brown Optimator reported that Coca-Cola’s brand is worth a whopping $58.2 billion. Ever since laws were passed in the 1990s allowing companies to trademark colors, corporations have jumped on the opportunity to personalize their brands with color. UPS registered a particular shade of brown, Tiffany’s trademarked a blue tone and McDonalds owns a certain shade of red and yellow.
Registering a color trademark prevents other companies from using a color shade within a particular marketing context. Cadbury is essentially fighting for its trademark on the color purple and defending its accusation of Darrell Lea’s use of purple to deceive consumers. “At the moment, Cadbury currently has uncertainty as to whether it can enforce its color purple in Australia,” said Gary Assim, head of intellectual property at UK law firm Shoosmiths.
Cadbury cuts middle layer of management; puts CEO in driver’s seat
LONDON Cadbury today reported that it is revamping its management structure removing a layer of management and handing over the reins to chief executive officer Todd Stitzer to steer the company’s operational divisions.
“Our four region operational structure will be eliminated, leaving seven business units (listed in Appendix A) which will report directly to [Stitzer],” Cadbury said in a press statement. “At the same time, we are strengthening our global chocolate, gum and candy category structure, further increasing our focus on category development.”
The change will extract the company’s current regional management structure, removing layers and spreading out organizational tasks over other layers. The company hopes that the change will provide “faster decision making, improve in-market execution and ensure a stronger alignment of category strategies and commercial programs,” it has stated.
The removal of the management layer will affect 250 positions, many of them senior managers. Cadbury said that the changes were following a plan started in 2007 to restructure operations.