04 PLA A New Challenging Material Madeddu - Innovation …/media/ITR2014/2014/... · · 2014-02-18HYDROCEROL: CHEMICAL FOAMING AGENT IN USE 0,85 mm sheet for thermo-forming A development

DanTrade | Upstream11 DanTrade Upstream CONFIDENTIAL RESTRICTED CIRCULATION

Guerino MadedduLaurent Benoit-Maréchal

PLAChallenge & Opportunities

for DanoneITR , Orlando Febuary 17-19, 2014

DanTrade | Upstream2 CONFIDENTIAL RESTRICTED CIRCULATIONCONFIDENTIAL RESTRICTED CIRCULATION

Danone Group | Our History…Gervais‐Danone‐BSN

1967 Merger of Gervais & Danone

1852Charles GERVAIS creates

a cheese factoryin France (Normandy)

Isaac Carasso launches DANONE in Spain

1st yogurt in Pharmacy

1919

1929

1941Daniel Carasso launches

Danone in New York

Daniel Carasso launches Danone in France

2007 Merge with

1966

Birth of BSN Group with Antoine Riboud as President

1973 Merger of BSN& Gervais-DanoneA shared dream: to makeDanone an InternationalBrand

1994

1996 Franck Riboud Chairman & CEO


Danone Group | 2012 Results

Net sales

€20,869 mln

Employees

101 885

2

Sales growth

Trading operating margin

Free cash flow

2012 Objectives 2013

+5,4%+5,4%

14,18%‐50 bps14,18%‐50 bps

€ 2.088 mln+11,4%

€ 2.088 mln+11,4%

+5%+5%

‐30 bps‐30 bps

€ 2 bn€ 2 bn

Invest&

Leverage

Adapt&

Fix

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Danone Group | Business Transformation

Baby NutritionWaters

Fresh Dairy Products

Medical Nutrition

6%

17% 19%

58%

From food to healthy company


Danone Group | 1st Positions in growing categories

Danone worldwide positionFresh Dairy Products #1Packaged water #2Baby Nutrition #2Medical Nutrition #3


Danone Group | Health product portfolio

BRING HEALTH THROUGH FOOD TO AS MANY PEOPLE AS POSSIBLE

OUR MISSION


Danone Group | Geographical transformation

Top 6 priority countries

“MICRUBs”:Mexico, Indonesia, China, Russia, the US & Brazil.

Appr. 58% of sales growth

First Move: From European to global market

Second Move:From global market to Emerging country focus

6 %North America

6 %North America

17% Emerging markets


77% Western Europe

77% Western Europe

38% Western Europe

38% Western Europe



9% North America9% North America

2% Japan & ANZ

2% Japan & ANZ


Dairy Division | Strategic Framework for Growth

1 Conviction

1 Mission

Yoghurt is essential to a balanced diet

1 cup a day 1 cup every

2 days1 cup a week

Building per capita consumption2011 category per capita consumption

We are in the business of yoghurt, the perfect food to satisfy a broad range of consumer needs


Attracts 1

Communicates

2

« Legal » Constraint

9

Holds & Gathers

3

Be portable & storable

6

Preserves & protects

4

« Product » Constraint

10

Facilitates Use5

Respects Environment

7

« Operation » Constraint

8

SERVIC

ESC

ON

STRA

INTS

PACKAGING FUNCTIONALITIES

The 7 roles “visible” from Shoppers / Consumers


PACKAGING TO ATTRACT THE SHOPPER

Attracts 1

Make the differentiationBe visible

Bring valueDevelop consumers trust

Coloured plastic

Danone embossing

Shorter banderole

Rounded cutting shape

Flat Walls / Cylindrical Body / Rounded Bottom

Reinforce our brandReinforce our ownability

2 seconds to attract the shoppers

80% of consumer purchasing decision done in front of the shelves !

At 10 meters, consumers notice the color

At 4 meters, the shape

At 1 meter, brand & consumer promise

90% of product in hand are purchased


Easy opening

Easy to store in fridge, stable

Spoonability / DrinkabilityEasy to take in hand

Easy to consume, daily dose…

SAFE & FACILITATES USE

« Product » Constraint

10Facilitates

Use

5

Oxygen

Light

Water vapor

Bacteria

Molecule migration from plastic to

product


« Operation » Constraint

8

Filling Machines

Put in trays

StackConveyed

Danone & clientWarehouse

Shelves

Put on palette &Resist to the post temperature treatme

OPERATION CONSTRAINTS


+20 M€

What we anticipated on consolidation & suspected on capacity management is today a REALITY

Oligopolistic situation HIGH VOLATILITY : 2014 outlook flat, but increase expected again for 2015 (capacity cuts) PS Market consolidation & capacity management keep spreads high Further capacity cut:

EU – AMERICA: 2008‐2012 @ ‐1,6 MMTASIA: except Asia 2011‐2013 @ +1,2 MMT (EPS)REALLOCATING STYRENE OUTPUT TO ABS, SBRLOW GROWTH (~1%) & VOLUME TRANSFER TO PP, PET, Paper

PS NOT ANYMORE STRATEGIC ASSET


• Snapability

• Lightweighting: CFA

• Thermal properties (crystallization)

• Transparency

• Thermal properties

• Mechanical performance

• No transparency

• Machinability

• Snapability

• Lightweighting: CFA

• Brittleness / Snapability: Impact modifier

• Transparency

• Hot fillingPLA

OTHER ???

INNOVATION FOR FFS


Safety as a must

Consumer acceptance

Short term & Mid Term Competitivity

1

2

3

1 objective=> Move out Polystyrene

MOPS REQUIREMENTS

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RAW MATERIALS: UPSTREAM CHAIN

SAFER & QUICKER DEVELOPMENT

2. FFS Machine:Know the capability of the FFS machine

Implementation of the chain for

answering it

Expressionof theneed…

CONVERTER & MACHINE SUPPLIER- Conversion line capability- Potential technical innovation

PACKAGING:Know the “right” properties of the pack

RAW MATERIAL SUPPLIERS:Virgin Resin, Additives, Masterbatch

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• Single pots• Bottles• Multipacks

• FFS sheets• Bottles• Single pots

+ +

SAFETY GUARANTEED& INNOVATION ACCELERATED

• Ensure food safety• Accelerate innovation• Better way to fuel and boost your R&D

WHY PARTNERSHIP BETWEENUPSTREAM SUPPLIERS & BRAND OWNER?

• Because conversion is not an objective but a mean to reach the goal

• Hard to sell R&D capability

• Direct access to a brand owner• Giving you visibility on our business development & strategic axis

PackagingConverters

• Resin• Additives• Fillers

Raw Material


Recurrent and often not scientifically‐sound attacks• Endocrine disruption issue: bisphenol A, styrene oligomers, phthalates,

alkylphenols, antimony …• Photoinitiators (e.g. ITX, benzophenones)• Azodicarbonamide/Semicarbazide• Irgafos 168/2,4‐di‐tert‐butylphenol• Primary aromatic amines• BADGE• Mineral oils (MOSH, MOAH, POSH)• Cyclo di‐BADGE• …• …

SAFETY RISK MANAGEMENT


Moving field

Legislation evolutionImprovement of

analytical methods

Moving field

Legislation evolutionImprovement of

analytical methods

Complexicity

of

materialsPoor knowledge

NIASInnovations (e.g.

NanoTech.)Technological issues

alternatives

Complexicity

of

materialsPoor knowledge

NIASInnovations (e.g.

NanoTech.)Technological issues

alternatives

Supply chain

Poor communicationCult of secret

Diversified sourcing (Asia, AME)

Supply chain

Poor communicationCult of secret

Diversified sourcing (Asia, AME)

Attraction

ScientistsMedia

ConsumersControl authoritiesEnvironmentalists

Attraction

ScientistsMedia

ConsumersControl authoritiesEnvironmentalists

… FOR A COMPLEX ISSUE

Open exchange is mandatory to avoid

safety issues

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POUCH2,5 %

BRICKS4,7 %

PREFORMED CUPS17,2 %

BOTTLES19,6 %

FFS56 %

55 %

34 %

11%

More than 450 filling lines in the world270 FFS machines

HDPE

PP

PET

PS

PLA

PET

Volume Higher than 100 000 Tons per year

Running 254.000 tons of resins

FILLING MACHINES & RESINS


10 000 cups

Storage and Transportation

FFS machinesWhy FFS is preferred technology in Danone?

Cost

Multipack without overwrap More flexibility on label printing Multi flavour

Quality

Less consumers complains with FFS No decontamination needed

Operation

FFS cup 60% less expensive than a preformed cup (lid is also less expensive for a FFS cup).

One operator to run the machine (same amount of cup serving).220 000 cups


Preheat roll edge for pricking Preheat roll

Heat plastic band Pricking and heat plastic band

Cut label

Introduce label in molds

Thermoformed Thermoformed - Cut

Mix white mass & jams

Dosing product

Unwind and Lid sterilization

Seal Lid

Cut and PRECUT Cups Stacking

FFS machinesThermoforming

4 different steps

FFS 10 different

steps


FFS machines


MASTERBATCH EVOLUTION NEEDS

INNO

KISS

Foam PS

Mas

terb

atch

esM

aste

rbat

ches

White

Preformed pots


Vitreous – FragileVitreous – Fragile Rubbery plateauRubbery plateau LiquidLiquid

Tg Temperature

Log (G’) ~ Stiffne

ss

PETPLAPS PP

Forming technicality

Tm or Tg + 100°C

Thermoforming temperature

StyrenicsPolyolefinsPolyester

Processing windows


Consumer snap cups

Material must be:Brittle to spread rupture

& Impact resistant rupture follows precut

WHAT NEEDS FOR SNAPABILITY


SNAP ABILITY

Consequences for FFS applicationNot possible to separate cups without cracks Rupture do not follow precut

Manage brittle material

Impact

Shock is not absorbed

Precut

Manage soft material

Challenge: which additive, which

concentration ???


TRIMMING TECHNOLOGIES

STANDARD KNIVES AND STARS TECHNOLOGY

HYBRID KNIVES AND STARS & GRID TECHNOLOGY


0

10

20

30

40

50

60

70

0 1 2 3 4

Force (DaN

)

Displacement (mm)

PLA – 750µmMultipack by

4

Standard Erca potTop Load: 60.5 ± 2.7 daN


4

KISS potTop Load: 39.6 ± 1.2 daN


2

Conical potTop Load: 53.3 ± 4.1 daN

More plastic BUT lower mechanical

performance !!!+13% Plastic content = ‐33% Top load

How reaching high performance expansion???

PLASTIC LIGHTWEIGHTING OPPORTUNITIES


Small non interconnectedbubbles

Small Slightly connectedbubbles

Medium size bubbles

Low bubble density

Non homogenous repartition of medium sized bubbles

Sporadic repartition of big bubbles

FOAM QUALITY


A PARTNER:

HYDROCEROL: CHEMICAL FOAMING AGENT IN USE

0,85 mm sheet for thermo-forming

A development partnership between Danone and Clariant is putting the world’s largest yogurt producer with the world’s largest polymer additives masterbatch producer.Already successful with reducing 20% of the polymer consumption from an existing package in PS

F. Neuber, Additives Masterbatches, Applications & Developments, 28.01.2014Confidential, Danone - Clariant Partnership


How to optimize wall distribution and machinability???

PLASTIC LIGHTWEIGHTING OPPORTUNITIES


Vitreous – FragileVitreous – Fragile Rubbery plateau 1Rubbery plateau 1 LiquidLiquid

Tg = 55°C Temperature

Log (G’) ~ Stiffne

ss

Tcc

Rubbery plateau 2Rubbery plateau 2

Tm = 155 to 170°C

Hot fill temperature = 75°C > Use temperature – PLA Tg

PLA cannot be hot‐filledNO DIMENSIONAL STABILITY

HOT FILLING ONE OF THE NEXT STEP CHALLENGE


CLARIANT DANONE PLA

Danone and Clariant have developped a specific Foam for PLA

F. Neuber, Additives Masterbatches, Applications & Developments, 28.01.2014Confidential, Danone - Clariant Partnership

ACHIEVEMENT…

PLA

AND THE CHALLENGE CONTINUES

PLA


“The company responsibility is not just limited to its factories or offices”Antoine Riboud 1972

“There is only one Earth. You only live once” Antoine Riboud 1972

If you doubt in one idea, it will never happen. GM

As healthy food comes from a healthy Nature, To protect the environment is a prerequisite of Danone’s mission

Documents

04 PLA A New Challenging Material Madeddu - Innovation …/media/ITR2014/2014/... · · 2014-02-18HYDROCEROL: CHEMICAL FOAMING AGENT IN USE 0,85 mm sheet for thermo-forming A development