Active and antimicrobial packaging

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Future Markets forACTIVE AND ANTIMICROBIAL PACKAGINGTHE ITALIAN ACTIVE PACKAGING MARKET

ANDREA SENTIMENTI │ VICE PRESIDENTSALES & MARKETING │ GRUPPO FABBRI

12-13/09/2006INTERTECH-PIRA CONFERENCE AND WORKSHOP

COPTHORNE TARA HOTEL, KENSINGTON, LONDON, UK1

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ANDREA SENTIMENTI │

› Market and nature of active packaging in Italy

› Attitude of the Italian consumer towards active packaging and

MAP: case studies

› Developments in “breathable” films: case studies



Main topics

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MAP: case studies




Main topics

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› Active packaging: actively changes the condition of the packaged food

to extend life or to improve safety and sensory properties, while

maintaining the quality of the packaged products

› Intelligent packaging: monitors the condition of packaged foods to give

information about the quality of the packaged food during transport and

storage

Focus

› Why active and intelligent packaging systems developments are still so

limited in Europe?



Active packaging

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Ultra-fresh products

› Meat & Poultry

› Fish

› Fruit & Vegetables

› Cheese

These market segments count for over 55% of the Italian food market and are the main fields of activity of our group.

Facts and figures reported, unless specified, are related to these

segments only.



Market segments

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Active packaging status in ItalySource: GF survey

Technologies R&D projects Real applications

Modified Atmosphere Packaging

Equilibrium Modified Atmosphere Packaging

Oxygen Scavengers

Moisture Absorbers

Carbon Dioxide Emitters

Carbon Dioxide Scavengers

Ethylene Scavengers

Preservative Releasers

Flavour/Odour Absorbers

Lactose/Cholesterol Absorbers

TTIs, Spoilage/Pathogen indicators

Microwave Packaging



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Bread and cereals

21%

Meat

25%Fish

7%

Milk, cheese and

eggs

15%

Oil and fat

5%

Fruit

7%

Vegetables

12%

Food products

0%

Coffee, tea and

cocoa

1%

Sugar, jam, honey,

chocolate and

confectionery

7%

Household expenditures for food : 118 bn. euro (2005)

Household expenditure for food by product (2005)

Household expenditure (million euro) and inflation rate (%)

103,333

105,861

109,146

113,320

115,407

117,578

2.6%

2.3%

2.6%

2.8%

2.3% 2.2%

95,000

100,000

105,000

110,000

115,000

120,000

2000 2001 2002 2003 2004 2005

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Food expenditures Inflaction rate

CAGR: 1.69%

Inflation rate (avg.): 2.5%

Source: GF, Eurostat and Istat



The Italian food market

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Fresh food Italian market 2005: 42 bn. Euro

9.2

40.6

4.28.6

30.6

6.8

9.9

25.7

5.1

8.9

38.6

11.8

10.1

23.4

5.4

9

39.6

12.5

10

22

6

9

40

13

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1996 2003 2004 2005

Others Traditional outlets Hard-discounts

Superettes Supermarkets Hypermarkets

Food market by distribution channels

93 113 115 118 Food market 2005 by product type

68%

50.2%

Grocery

64%

Fresh

36%

Source: GF processing based on Eurostat, Istat AC-Nielsen and Federdistribuzione



Italian Food market facts and figures

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Potential market for active packaging

› Fresh foods

› Packed foodsFresh foods sold by

retail chains

Source: GF processing based on, Eurostat, Istat AC-Nielsen and Federdistribuzione



Market segment Retail sales (Euro) Packed units

(Estimation)

Meat & Poultry 15,700,000,000 3,200,000,000

Fish 2,150,000,000 200,000,000

Fruit & Vegetables 9,850,000,000 1,100,000,000

Cheese(*) 5,300,000,000 1,500,000,000

Total 33,000,000,000 6,000,000,000

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0%

20%

40%

60%

80%

100%

Meat & Poultry Fish Fruit &

Vegetables

Cheese

MAP Other technologies

MAP is the only real applications of active packaging in Italy

MAP share vs. other technologies

MAP estimation:

1,300,000,000 units

Source: GF survey,



Italian Active packaging market

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MAP: case studies




Main topics

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Attitude of Italian consumers

› Active packaging: – very low acceptance of any technology where there is “active contact” (migration …)

from packaging to food.– MAP (Protective Atmosphere in Italy) quite accepted since is using only “natural” gases – High acceptance of bio-packaging even if with lower shelf life.– Active packaging perceived as a “chemical preservative” – lower quality and higher

health risk.

› Intelligent packaging: – Acceptance by consumers.– Logistic chain not yet ready to manage the process.

Focus

› How long could be extended the shelf life of a fresh product before it looses his freshness perception?



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Italian consumers – case studies

› Fresh pasta: – Fresh pasta is available on Italian supermarket shelves in a 250g MAP

package (20 to 30 days of shelf life) at 6–7 Euro/Kg

– Fresh pasta is also available on the delicatessen department shelves in a 250g package (3 – 5 days of shelf life) at 11–12 Euro/Kg

› Price is indeed an important issue but the product with shorter shelf life and double price keeps the market with positive trends.



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Italian consumers – case studies (2)

› Sliced ham:

– Italian consumers prefer to purchase a 100–150g package of sliced ham

packed in MAP inside the delicatessen department (shelf life max 7 days)

rather than a “standard” 100–150g package of sliced ham packed in

MAP by an industrial supplier (minimum 20 days of shelf life).

› Italian consumers perception:– Fresh products with shelf life longer than 10 – 15 days are no more

considered very fresh and high quality ones.

– Price/value perception and relevant price positioning reflects this attitude.



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MAP: case studies




Main topics

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“Active fresh foods”

Packaging for “ACTIVE” fresh foods

› Fresh produce products are “active” even after harvesting.

› They are “breathing” O2 generating CO2, H2O and heat

› O2 presence permits to run the natural metabolic functions while the absence increase the spoilage rate.

› Metabolic functions permit the product to ripen but after, reaching the optimal maturation level, drive it to spoilage.

› A natural way to extend the shelf life and to enhance the quality of fresh produce products is to Reduce the Breath Rate.



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“Breath rate management”

Breath rate is function of O2 and temperature

› The packaging has been developed in order to have a specified selective permeability to O2, CO2 and moisture

› The product “breaths”, the packaging avoids O2 to flow-in, reducing in this way the amount of O2 available inside the packaging.

› The reduced quantity of O2 reduces the breath rate.

› The CO2 level raises providing a baceriostatic effect

› Reached the optimal level of O2 and CO2 the packaging starts “breathing”

› A small quantity of O2 comes in and a desired amount of CO2 flow-outs keeping these values steady.



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This packaging has been proven to be able to extend the shelf life and to enhance the quality of fresh produce

without need of any preservative.

The product is “active”

The packaging is “activated” by the natural metabolic activity of the product.

The shelf life extended by reducing the breath rate and keeping the optimal values of O2, CO2 and moisture.



“Breathable films”

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Case study – “Vignola” cherry

› 250 g of premium “Vignola” cherries

› Packaging: “PE Breath” film

› Fruit snack – single portion

› Target: Kids and families with kids



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Case study – “Vignola” cherry (2)

21%

10%

6%

1% 1% 1%

6%7%

6%0%

0%

5%

10%

15%

20%

25%

Day 0 Day 2 Day 4 Day 8 Day 11

O2 CO2

Cherries after 10 days & gas trend

Packed with film

Unpacked same storage conditions Source: Università degli studi di MO e RE



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Fresh cut salad 300g bag in MAPGas mix at To = 3% O2 14% CO2

PEBREATH film Film PP

1.9%0.0% 0.0% 0.0% 0.0%

15.1%

19.1%22.4%

27.3%

31.3%

0%

5%

10%

15%

20%

25%

30%

35%


O2 CO2

2.7%1.6% 1.1% 1.0% 0.9%

12.7%11.8%

10.2%

8.6%7.5%

0%

2%

4%

6%

8%

10%

12%

14%


O2 CO2Source: GF & Customer Panel test,



Case study – “Fresh cut salad”

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Fresh cut salad – sensorial analysis

7,4

6,4

5,4

8,0

3,0

6,6

2

3

4

5

6

7

8

9

Day 4 Day 6 Day 8

PEBREATH PP

+3 days Shelf Life

+113%

Case study – “Fresh cut salad”(2)

7,3

3,8

7,1

5,0

7,5

4,9

7,0

6,1

0

1

2

3

4

5

6

7

8

Odour Turgor Rottenness Oxidation

PEBREATH PP

Source: GF & Customer Panel test,



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› Gruppo Fabbri is a world leading manufacturer and marketer of innovative packaging solutions for fresh food market

› We create value to customer offering high quality machines, innovative materials and a global sales and service network.

About Gruppo Fabbri



4 Manufacturing plants & 9 Sales and service facilities in Europe

Dealers in 60 countries worldwide

0ver 30,000 machines installed in Europe

23 film extruders

30% EU market share in stretch PVC film

Consolidate turnover: 100 Million Euro (2005)

600 employees

R&D investment : 8%



ANDREA SENTIMENTI │ VICE PRESIDENT

SALES & MARKETING │ GRUPPO FABBRI

Business

Active and antimicrobial packaging