1. The Sustainable Metal Can: Packaging for Today and for the Future
Can Manufacturers Institute September 27, 2005
Welcome Attendees! Thank you for attending.
·         The metal can, long a mainstay in the packaging world, continues to demonstrate its leadership position looking ahead to the future. 
·         New data shows consumers still prefer traditional packaging to newer formats, and they want even more innovation and convenience from the trusted metal food can.
·         With demand for the can on the upswing, sustainability is increasingly important for tomorrow’s world. 
Revealing case studies, new energy use research and anecdotes from the front lines of packaging continue to prove the case for the can – creating value and driving demand for customers and consumers through innovation while maintaining its leadership position as the most recyclable and sustainable packaging format. 

2. Introductions President, Can Manufacturers Institute
Robert Budway
President, Can Manufacturers Institute
Jeff DeLiberty Senior Marketing Manager, Silgan Containers
Bill Heenan President, Steel Recycling Institute
Today, I’ll be sharing the stage with two experts in their respective fields.
Introduce yourself
President of CMI
CMI overview
Jeff Deliberty of Silgan Containers
Bill Heenan of the Steel Recycling Institute

3. Agenda Sustaining Demand for the Metal Can Sustaining the Environment
What consumers want now – and in the future – from their packaging
Sustaining the Environment
How metal can recycling impacts industry and society
What new energy use research tells us
III. Question & Answer
Our agenda for today – Discuss what’s driving demand for the metal can
We’ll be unveiling Omnibus research commissioned earlier this year that underscores consumers’ attachment to traditional forms of packaging
We’ll also be talking about how canmakers are responding to and anticipating consumers’ needs for convenience and innovation
We’ll move from sustaining demand for the metal can to talk about sustaining the environment through continued use of cans.
Sustainability the Environment
Bill Heenan will unveil new metal can recycling rates and the impact on the industry
Talk about some new research done by the steel recycling institute earlier this year that looked at canned foods’ efficient energy use from farm to fork
Q&A
Lastly, we’ll invite any questions you may have of our speakers today, or from our other member companies in attendance from Crown or Ball.

4. Sustained Consumer Demand for Metal Packaging
Traditional packaging consistently rated higher than the newer entries into the packaging market
Seven in 10 respondents will choose one product over another because of its packaging.
Metal cans always appear in the top three packaging preferences demonstrating consumers’ preferences for traditional packaging.
Recent Omnibus Survey indicated Attitudes Toward Packaging:
Nationally representative sample of 1,000 Americans
Fielded summer 2005
Overall findings: Traditional packaging consistently rated higher than the newer entries into the packaging market
In fact, Seven in 10 respondents will choose one product over another because of its packaging.
Metal cans always appear in the top three packaging preferences demonstrating consumers’ preferences for traditional packaging.
The upshot: packaging matters and cans continue to be in high demand

5. Sustained Consumer Concern Over Packaging Safety
Food safety continues to top the list for consumer concern on packaging
1) Food safety 92%
2) Maintains nutrients 80%
3) Easy to store 78%
Metal cans are the package most perceived as tamper evident
1) Metal food cans 68%
2) Glass bottles/jars 65%
3) Plastic bottles/jars 63%
We know that consumers like the can – but research also indicated a reliance on the can for one of their most pressing concerns: Food safety.
Food safety tops the list for consumer concern on packaging
Metal cans alleviate this concern for consumers, as most say that metal cans are the safest.
In contrast to the safety of metal cans, barely half of Americans view paperboard packaging and pouches as tamper evident (54% and 53%, respectively).
68% of consumers say metal cans are tamper evident.

6. Sustaining Demand Through Innovation
Canmakers adding functionality and convenience through R&D
What’s now and what’s new:
Microwavable cans
Convenient-opening features
EZO, peelable, recloseable
Hybrid cans
Consumption direct from can, energy drink lines
                         
Consumer demand is driving innovation from canmakers – R&D phase
Making cans “do more” for consumers – while retaining assets
* More functionality – microwaveable
* More convenience –
* Different materials – hybrid cans – metal most visible part of can (can as billboard) – with another material providing differentiator

7. Sustaining Demand at the Point of Purchase
Food processors using cans to entice consumers, control costs in new product introductions and line extensions
Campbell’s Chunky Chili varieties rocket to number two in category.
Homestyle Bakes leads to explosion of box-in-meal dinner solutions.
Bumble Bee Premium Tuna & Sheba cat food command premium pricing for product.
Food processors still view the can as an attractive packaging choice – part of the equity of product line.
Food processors are responding to demand by using innovative metal packaging in line extensions and new product entries:
-Chunky Chili
- Homestyle bakes category
- Premium tuna
- Sheba can
Reasons
- Economic reasons; keeping the equipment already in place
- Perception of premium look and consumer response
- Innovations – shaped cans – differentiate on shelf

8. Sustained Concern Over Packaging Impact on the Environment
Metal cans remain the most recyclable packaging form
Metal cans continue to be the most recycled form of packaging, far exceeding the recycling rates of glass and plastic.
Only half of Americans feel paperboard is recyclable, and just one-third believe pouches can be recycled (57% and 33%, respectively).
Moving from food processors to recycling – consumers weighed in on cans
Metal cans rank in the top three types of packaging considered recyclable, along with glass and plastic.
Only half of Americans feel paperboard is recyclable, and just one-third believe pouches can be recycled (57% and 33%, respectively).
But this is only one part of the story – turn it over to Bill Heenan to talk about how cans are sustaining our environment.

9. Sustaining the Environment
Taking Recycling Even Further…
How metal can recycling impacts industry and society
What new “energy-use” research tells us

10. North American Steel Industry Recycling Commitment
% Cans Recycled
In 1988 the North American steel industry embarked upon an effort to ensure that steel food containers would become the most recycled package in North America. With steel’s unique magnetic qualities and the introduction of curbside recycling throughout North America, this effort succeeded. Since 1999, the steel food can, along with its sister aluminum beverage can, makes metal cans the most recycled packaging material in North America. By the way, the steel food can is the most recycled package in the world as well.

11. North American Steel Industry Energy Improvements
GJ/ Ton of Crude Steel
But recycling isn’t the only way to save energy, which, by the way, when you recycle six Campbell soup cans, you save enough energy to light a 60 watt bulb for 26 hours. The North American steel industry, through its increased use of steel scrap, modernization of its facilities, and its technological advances over the course of the last 40 years, has reduced its energy requirements by over 40%.

12. North American Steel Industry Cumulated Avoided CO2 Emissions
Kg per Tonne of Liquid Steel
As a result of this recycling effort and the continuing recycling process, i.e., recycling a can over and over again, the North American steel industry continues to avoid the production of CO2. In ten years, at a recycling rate of 60%, over 3,500 kg of CO2 are avoided for every ton of steel cans recycled. Likewise, the can manufacturing industry has focused on energy use reductions as well.
Number of Recycling Cycles at a 60% Rate

13. North American Steel Can Industry Raw Material Efficiency
Grams/Can Body
Can manufacturers utilizing the improved technologies developed by the North American steel industry and their own improved technologies, including two-piece food cans, have dramatically reduced their raw material efficiency and thus their energy efficiency over the past 40 years. Similar to the steel industry, the can industry has reduced the amount of steel in a typical food can by almost 40% since 1973, without jeopardizing the tamper resistance and locked-in nutritional value that a can delivers to your pantry.

14. From Field to Table Energy Makes a Difference
Together, the steel industry and the can industry knew that these efforts would position the food can as a leader versus its fresh and frozen counterparts. As a result, we commissioned a study by Scientific Certification Systems to review the energy consumption throughout the process of bringing food to the average North American’s table.

15. Production
MJ/kg
When one looks at production or the harvest of food one quickly understands that regardless of packaging or delivery system, energy requirements are equal.

16. Processing
MJ/kg
However, once harvested, food needs to be processed so that it can be delivered to a distribution system. Each delivery system now begins to differentiate its energy needs. As can be seen here, canned products’ processing energy requirements are significantly higher than refrigerated/fresh, and frozen are significantly higher than canned, utilizing almost 7.5 MJ/kg, compared to only 2.5 MJ/kg for canned and none for refrigerated/fresh.

17. Packaging/Retail Canned Frozen Fresh MJ/kg
When looking at packaging in the retail store however, the numbers change dramatically. Cans dramatically increase due to the fact that you incorporate the production of steel and the making of a can at this stage. Frozen includes both the energy to keep the product frozen as well as the materials to package the contents. Fresh, on the other hand, reflects the chilling required for some products as well as the spoilage at the retail level.
Fresh

18. Transportation
MJ/kg
When it comes to moving the product from the processor to the retailer and including the transportation from the retailer to the consumer’s home, the need for cooling/freezing begins to impact the energy equation. It is important to point out that weight has an insignificant impact in the transportation area, as food products are shipped by volume, not weight. In other words, an 18-wheeler carrying canned goods is full before it reaches its maximum weight potential.

19. Storage
MJ/kg
Storage, whether its at the processor, the retailer, or in your kitchen, dramatically impacts the energy requirements for refrigerated/fresh and frozen. The locked in nutritional value that comes in a can requires no energy at this level and dramatically impacts the overall energy needs attributed to delivering food to your kitchen table.

20. Meal Preparation MJ/kg
Whether its refrigerated/fresh, frozen or canned products, a homemaker spends time in the kitchen preparing a nutritional meal for their family. Because canned products have been pre-cooked with the nutrition locked in, the energy requirement in the home is less than its two counterparts.

21. North American Delivery System Energy Consumption Assessment
The most energy effective method for product delivery is canned-ready meals followed by bulk refrigerated products and fresh fruits & vegetables.
Frozen products require about 70% more energy to bring the food from the farm to the table.
21.5
13.2
12.7
MJ/kg
When we look at the total energy consumption from the farm to the table, we see that canned food is the most energy efficient method for product delivery. Frozen products require about 70% more energy to bring the food from the farm to the table, and surprising to many, a canned product requires less energy than its fresh/refrigerated counterpart. It does this at the same time, as studies at the Universities of Massachusetts and Illinois, just to name two, continue to show that canned products in a recipe deliver equal to or better nutritional value to the kitchen table than its fresh/refrigerated and frozen alternatives.
The bottom line is that in today’s world of greenhouse gases and high cost of energy, it’s comforting to know that canned food can keep your family healthy and your budget in line.

22. Questions & Answers

23. The Sustainable Metal Can: Packaging for Today and for the Future
Can Manufacturers Institute September 27, 2005