Waqas Qureshi caught up with four suppliers in the glass sector and found that despite energy prices putting business under pressure, there is a strong desire to innovate

THIS MONTH’S INDUSTRY EXPERTS

JAMIE GORMAN is managing director of Aegg Creative Packaging, which supplies rigid recyclable plastic and glass pots, jars, bottles, bowls and lids to food and drink companies, globally. Aegg also provides in-house bespoke design, manufacturing, warehousing, and logistics solutions. Aegg is based across several UK sites, in Suffolk, Hampshire, and Scotland.

LYNN SIDEBOTTOM is director of sales and marketing, Beatson Clark, which specialises in glass packaging for niche brands in the food, drink and pharmaceutical markets worldwide. Part of the Newship Group, it has an annual turnover of £65m and a production capacity of up to 540 million units/145,000 tonnes. The company employs around 360 people and has been based in Rotherham since it was founded in 1751.

ADRIAN CURRY is managing director of Encirc, the glass container manufacturer and filler based at three sites, in Derrylin in Northern Ireland, Elton in England and Corsico, Italy. Encirc makes nearly four billion containers annually and offers a ‘360’ service with its glass bottles able to be manufactured, filled, stored and distributed from one site, offering more flexibility in thesupply chain.

SIMON DIX is managing director of Vetroplas Packaging, which has a full range of packaging solutions designed for the UK cosmetics and personal care markets. It specialises in premium glass, plastic and aluminium bottles, jars, airless containers and flexible tubes with a firm focus on sustainability.

Describe how the company fared in lockdown last year

Jamie Gorman, Aegg Creative Packaging : Although providing packaging linked to the hospitality sector, such as glass mixer bottles, understandably reduced, other areas of the business linked to food were buoyant.  We saw an increase in demand from retailers and food manufacturers for food staples packaging such as jam jars and cooking sauce jars, as consumers were eating in more.

Lynn Sidebottom, Beatson Clark : In the first half of 2021 the food market was still very buoyant as people continued to work from home and dining out was restricted. We saw an uptake in demand, especially for essential ingredients such as spice jars. The brewing sector struggled at first but started to pick up again towards the summer as hospitality venues began to open up. The pharmaceutical market remained a little slow as the lockdowns and social distancing meant there were fewer colds and other viruses in circulation.

Adrian Curry, Encirc : During the lockdown periods, we carried out four furnace rebuilds, which would have been a substantial challenge in normal times let alone a global pandemic. Being essential workers in the food and drinks industry, Our production teams kept our lines running. Despite the wider situations at play, we were still able to conduct our ground-breaking biofuel trial with glass futures, which resulted in us creating the world’s most sustainable glass bottle in January. We have also been very involved in lobbying for the use of hydrogen power and helped bring about the success of the HyNet project.

Simon Dix, Vetroplas Packaging : Our business has remained strong throughout the pandemic. Online sales of cosmetics, toiletries and perfumes have been especially buoyant and that has helped fuel growth.

Vetroplas supplies wide range of packaging formats

How was trading in 2021? Did you find new revenue streams in new sectors because of the pandemic?

Jamie Gorman : Trading remained constant during 2021. We extended our food and drinks packaging supply to reach new markets, including the candle industry. Due to the pandemic, the cost of container shipping from China to the US increased, making it more viable for the US to form new global supply partnerships with us.

Lynn Sidebottom : 2021 got off to a great start for us, particularly in the food market. As the weather improved and lockdowns eased the beer and pharmaceutical sectors picked up while food fell back to around its normal pre-pandemic level. We saw an increase in NPD projects towards the end of 2021 as confidence returned to the market and many of them will be launching in the next few months. Over the year we exceeded our budgeted targets. The healthy drinks sector and the no- and low-alcohol market really started to boom following lockdown, and it’s noticeable that more and more consumers are now choosing healthy adult soft drinks such as kombucha fermented tea.

Adrian Curry : Energy pricing had a significant impact on all energy-intensive industries, as it continues to now. Despite this huge ongoing challenge, last year was one of the highest demand years for glass containers. Being part of the Vidrala group we are fortunate to have invested heavily in our manufacturing footprint, and as such we have one of the best costs bases in the industry.

Simon Dix : 2021 was a very good year for us, both in terms of supplying existing customers and building new business. We have worked with a number of companies wanting to break into the cosmetics sector and we have the track record and experience to assist them in these new ventures. It’s probably not down to the pandemic, but we have secured growing business with aluminium bottle demand increasing. This infinitely recyclable material is increasingly popular.

What’s your strategy for 2022? Capital expenditure, new staff, expansion?  And is now a good time to invest?

Jamie Gorman : 2022 is a year of consolidation, further building on our strong foundations. For example, we are continuing to expand our logistics hub at Eye, Suffolk, investing in an experienced workforce, warehousing, and transport fleet.  This year, the glass industry will continue to be impacted by production and supply chain costs, such as energy price increases, and geopolitical factors caused by the Russia/Ukraine situation.

Lynn Sidebottom : We expect to replace one of our white flint IS machines in February with a new £2.7m production machine which is capable of producing a wider range of sizes. In total we will have installed six new IS machines and refurbished another, giving us greater flexibility in terms of the variety of containers that can be made. On top of that we’re investing in three new palletisers, one of which can pack multiple formats, thereby improving flexibility.

A new Europacker is to be installed, able to create smaller packs, which again improves our flexibility; and the installation of a new Messersì shrink wrapping machine has already improved the quality of our packaging. This year we will also be introducing an auto swabbing robot from Novaxion to our IS machines. Looking further ahead, both our white flint and our amber furnace will be rebuilt in the next five to six years, and there will also be a new batch plant.

Beatson Clark: market trend moving towards non-alcoholic drinks

Adrian Curry : We have announced our intention to build a new national distribution hub that will evolve our 360 offer further and create a much more sustainable and efficient supply chain in the UK. Meanwhile, it is important that despite the global challenges we move forward with our plans to decarbonise and innovate.

Simon Dix : We expect business to continue to grow and we are currently recruiting to ensure we are fully resourced to meet new demands and expectations. We also hope to see more customer visits this year.

What are your customers currently demanding and what is the biggest challenge facing the glass market?

Jamie Gorman : We are working with customers and our glass manufacturing partners to lightweight glass packaging, which is beneficial for both transport costs and reducing the amount of material used. The biggest challenges facing the glass market are the increasing price of energy and a likely tsunami of glass shortage in Europe, due to glass factories closing in Ukraine and imports from Russia being affected.

Lynn Sidebottom : The biggest challenge for us and for many manufacturing businesses is the cost of energy, which is now being exacerbated by the crisis in Ukraine. Energy price increases across the supply chain are our biggest challenge and we are continually lobbying the government to find ways to remedy the situation.

The need for the glass industry to decarbonise is also high on our agenda. As an industry, glass manufacturers are working together to develop new, improved and more sustainable technology, and this move is reflected by projects such as Glass Futures, the new global centre of excellence in St Helen’s. However, we do require better infrastructure and an affordable energy supply if we are to succeed in our ambition to significantly reduce the glass industry’s carbon footprint.

Adrian Curry : Customers are increasingly becoming more focused on sustainability and that aligns closely with our own ethos, which is why we’re doing everything we can to reduce the carbon footprint of our entire value chain. We will be signing up to the Science Based Targets Initiative in the coming months. We know that our customers will be thinking more about their own emissions in their supply chains, so by working with us, they know they’ll be futureproofing their business and supporting a healthier planet. The biggest challenge at the moment is, of course, the availability of energy, the cost impact that is having and the threat to long term decarbonisation agendas. This is why we’re calling on the government to address this challenge now as a priority so energy-intensive businesses such as ourselves can continue to operate as sustainably and cost-effectively as possible.

Simon Dix : Offering green solutions whilst retaining a premium aesthetic is an important challenge. Compromises are, however, becoming fewer and fewer as packaging manufacturers and material suppliers continue to innovate in this area.

Have you launched any new pack formats and specifically products?

Jamie Gorman : Our new 300ml panelled jar is creating much interest, as it has a proportionally large label panel area, which is ideal for mustards, sauces or preserves. We also have our new spirits bottle coming on line shortly, as well as developing more candle jars.  We will shortly be launching a new shot glass, ideal for luxury desserts.

Lynn Sidebottom : Last year we launched new drinks bottles including our 330ml Alpha for beers and soft drinks and our new 330ml Champagne Style Beer, and we have a new range of liqueur bottles coming soon. We’ve also added some new Powders to our pharmaceutical range, as well as a 500ml Marasaca bottle and a 370ml Orcio Jar which have been added to our food range.

Adrian Curry : The most notable launch for Encirc were the glass containers created in Derrylin using 100% recycled cullet and using biofuel. This was a game-changing moment, and has proven that the future of glass is a sustainable one. We’re incredibly proud of this award-winning trial and the reaction it received from our customers. The highlight was seeing them have a presence at COP 26 last year.

Aegg saw demand for sauce jars

Simon Dix : In conjunction with our partner Eurovetrocap we continue to broaden our selection of recycled glass bottles and jars. We have recently launched our #mono range focusing on packaging solutions created from mono-materials which are recyclable through existing waste streams and our #recycled range produced from regenerated post-consumer and post-industrial waste. Both ranges include glass.

How is the glass industry responding to opportunities once the UK Plastics Packaging Tax comes into force?

Jamie Gorman : Aegg supplies both plastic and glass packaging, so we have our leg in both camps and they both have their merits. Historically, we provided one of our customers solely with plastic packaging. Now they are talking to us about glass packaging for their dessert pots, as glass is perceived as being ‘greener’. In addition, we are offering our recyclable plastic PET products in rPET, including 30% recycled material.

Lynn Sidebottom : The new tax is good news both for the environment and the glass packaging industry, but it’s not the only reason why people are switching back to glass. The health and environmental benefits of glass packaging are well known – glass is 100% recyclable forever, and it’s the only mainstream primary packaging material that doesn’t require an extra layer to protect the contents inside. We are also finding that more and more customers are looking to source their glass locally and buy British.

Adrian Curry : I think we need to focus on recognising our weaknesses, while building on the strengths of glass, rather than concerning ourselves with the milestones for other packaging types. We have a wonderful opportunity now to make glass the unequivocal sustainable packaging of choice and we need to drive forward on that agenda.

Simon Dix : As well as driving more responsible use of plastic the tax could lead to greater use of glass, especially for luxury products currently filled in containers made from thick walled plastics and glass-like polymers. The industry can respond by ensuring accessories are made from recycled or recyclable plastics so that the end product is as sustainable as possible.

Give an update on your views of debates around a Deposit Return Scheme (DRS)

Jamie Gorman : The UK already has a good glass bottle recycling provision with its existing household collections.  We believe the DRS could have a detrimental effect on glass recycling by increasing the carbon footprint and placing an added unnecessary pressure on retailers and consumers.

Lynn Sidebottom : Kerbside recycling schemes and bottle banks are already a very effective and successful way to collect glass for recycling. Including glass in the current DRS proposal might encourage more production of harmful plastics to the detriment of natural, healthy and sustainable glass packaging. We welcome any moves to increase the amount of quality recycled material in the production process, and it’s great to recycle other materials too; but generally speaking we already have an excellent closed loop scheme for glass recycling and manufacture. Over 76% of glass is already recycled in Europe and the industry is set to achieve its target of 90% by 2030. We would support alternative DRS schemes such as the digital DRS which would enable consumers to continue to recycle at home.

Adrian Curry : The effectiveness and uptake of the roll-out of viable deposit return schemes over the next year will be critical to the future of the UK’s glass industry. It’s a difficult message, but we don’t believe that glass should be the proposed deposit return scheme. We believe the evidence clearly shows that the consistent collection schemes already planned will collect far more glass than a DRS and be better for the environment and our combined and shared objective is to increase recycling content in all glass containers. We’re more interested in seeing a Digital Deposit Return scheme (DDRS) implemented for glass that will allow people to scan their bottles from their homes, without having to travel in cars and buses to supermarkets to return them. Based on previous trials and our ongoing discussions with industry experts, we know that a DDRS will have a positive impact in improving recycling rates, and reducing consumer confusion.

What is your message to the industry?

Jamie Gorman : The industry is, thankfully, easing out of the grips of the pandemic.  However, rising energy prices and the Ukraine/ Russia situation are becoming more destabilising factors in the industry. The industry needs to keep one eye on the external factors whilst continuing to strive forward as best we can.

Lynn Sidebottom : We have been extremely flexible in support of our customers throughout the pandemic and we continue to offer that flexibility and excellent customer service which is essential as we operate in an ever changing and challenging market.

Adrian Curry : It’s been a time of innovation and change in supply chains. While we continue to evolve and adapt to the ongoing situation, it’s important to keep our focus on what’s best for our people and the planet. Despite the challenges facing us as an industry, it’s crucial that we keep innovating and ensuring we continually reduce our impact on the world around us by setting ourselves ambitious, credible climate goals. This is vital if we want glass to be seen as the most sustainable packaging choice for consumers.

Simon Dix : We must all continue to innovate and be flexible whilst adapting to challenging production and transport conditions. We hope these ease during the year and we welcome the chance to see more of our customers and partners in person.

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