HOLYGRAIL IN ORKLA

16.6. 2020

HOLYGRAIL 2.0 –DIGIMARC BARCODES FOR BETTER WASTE SORTING

• HolyGrail is a technology that utilizes invisible barcodes in the waste sorting• HolyGrail aims to improve sortability of packaging materials at soring lines• Digimarc barcodes could connect the end-users with necessary information:

• Material and material specification• Instructions how to waste packaging in the best possible manner• All relevant information about recycling and further usage or recycled components

• HolyGrail primarily focuses on the plastic waste packaging.

HolyGrail – project:

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• Packaging waste is better identified in the waste automatic sorting process• Digital watermarking could help increase recycling which would lead to GHG savings• Digital watermarking could help support reuse schemes in future• Higher customers engagement could lead to higher awareness and education• Possibly lower waste fee in future Eco-modulation system• Positive packaging sustainability PR

HolyGrail – benefits:

HOLYGRAIL POTENTIAL IN ORKLA PACKAGING

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All packaging Plastics

51,74%

20,42 %

88,82 %

5,19 %

5,99 %

27,84 %

Move to or

Potential for HolyGrail technology

HOLYGRAIL 2.0 –WATERMARK BARCODES FOR BETTER WASTE SORTING

• Orkla participates in the HolyGrail project since June 2019• Orkla will continue supporting HolyGrail technology to improve sorting => recycling• Orkla has extended the scope and includes also customer engagement:

• Communication with customers via Digimarc barcodes functionality• Increase awareness and educate customers• Communicate sustainability information and stories

HolyGrail – improved waste sorting:

Orkla Project stakeholders

HG Core stakeholdersProduct journey – Areas of possible Watermarks use

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DIGIMARC BARCODE - BASIC PRINCIPLES

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• Digimarc barcode for printed labels, flexibles, shrink sleeves, IML, paper• Digimarc barcode = invisible barcode = watermarks• Digimarc barcode is a composition of printed inks at the level of pixels• Digimarc barcodes are imperceptible when implemented in a graphical design

Source: DIGIMARC

Invisible watermark barcode:

• HolyGrail participants (May 2020) >170 subjects• Initiative facilitator – AIM (European Brands Association)• A new leadership tema and project management (election process in June 2020)• A HolyGrail consortium has been established in February 2020

NEXT PHASE – HOLY GRAIL CONSORTIUM

Extended stakeholders platform:

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65 Brand owners & Retailers85 Endorsers & Beneficiaries(i.e. EU Associations, Green Dot companies, recyclers, Converters)

15 Enablers(i.e. Waste management companies, Technology developers, core members)

1 Mirror organisations(i.e. Governments, Municipalities Charities)

ORKLA CONTRIBUTION TO HOLYGRAIL 2.0 IMPLEMENTATION

2020

2021

HolyGrail promotion in Orkla

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2022

• Orkla as a HolyGrail first mover in the countries where we operate • Orkla becomes an active member of HolyGrail 2.0 consortium• Orkla has joined HolyGrail consortium leadership team• Orkla has actively been influencing project execution

June 2020 – an important milestone:

ORKLA PARTICIPATION IN THE TECHNOLOGY VERIFICATION AND IMPLEMENTATION

1. Norway2. Norway

• PP bottle, paper label• rPET bottle, plastic label

Enhanced artworks launched in 2019

• Orkla has actively participated in the technology and functionality testing (October 2019)• Sorting test at TOMRA facility was contributed with the two packaging items• HolyGrail in Orkla has started next phase – promotion with going „live“ in 2020• 10 - 12 packaging items will be enhanced for watermark barcodes and launched to the market in 2020

Orkla HolyGrail journey & plans:

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Go live in 2020

PLASTIC PACKAGING WASTE JOURNEY

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1) Sorting & Recycling in Germany:

Denmark: 20.000 t./yearNorway: 32.000 t./year

2) Recycling in Germany:Norway: 9.000 t./yearSweden: 60.000 t./year

Generated in Norway: 220.600 t./yearGenerated in Orkla Norway: 6.650 t./yearRecycled in total: 79.600 t./year

Generated in Denmark: 218.100 t./yearGenerated in Orkla Denmark: 4.200 t./yearRecycled in total: 84.000 t./year

Generated in Sweden: 240.700 t./yearGenerated in Orkla Sweden: 5.500 t./yearRecycled in total: 116.500 t./year

Generated in Czech: 250.000 t./yearGenerated in Orkla Czech: 1.600 t./yearRecycled in total: 146.500 t./year

ORKLA CAN CONTRIBUTE WITH 2.500 TONNES OF PACKAGING PLASTIC WASTE TO BE SORTED IN GERMANY

Sources:• NGP, FTI• EuroStat• Internet

ORKLA MATERIAL LIBRARY – HOW IT WORKS ON THE SMARTPHONE?

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1.

2.

3.

Digimarc GTIN libraryApplication identifies SKU

Open Digimarc Mobile SoftwareDevelopment Kit (SDK)

Scan the label with Digimarc barcode

Touch the product image

Get information from Orkla library

3.

URL link launches Orkla library

Design / content consulted with Grønt Punkt Norge

URL CONNECTION – HIGHER CONSUMER ENGAGEMENT

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IDUN Ketchup 500 ml PP bottleCountries: NorwayWaste type: Food packagingMaterial group: PlasticsMaterial: PPVolume: 500 ml

Sorting instructions: Sort as hard plastics and let this packaging item to be recycled in material recovery processes and used for making something new.The cap and the label will be removed in the recycling and will be used in fuelling generators that heat your house and supply you house with electricity Link for further information about waste collection, sorting and recycling at:

https://www.grontpunkt.no/gjenvinning/plastemballasje-fra-husholdninger/

Polypropylene (PP):PP is superior lightweight and outstanding impact properties material. Using polypropylene helps to prevent product losses, enables to protect product inside of the packaging and improves transportation, handling and storage, while its recyclability and lower density address key sustainability issues regarding waste reduction and lower energy consumption.

Recycling: This polypropylene bottle can be recycled into new plastic items like flower pots, buckets, new secondary packaging, various shapes, shoes, parts in automotive, electronics, construction industry and many others useful applications.Colour of the bottle is not a problem as not only clear PP is fully recyclable. But it can also be used as regrinds without compromising on the performance of the resin. The total environmental impact of polypropylene is less than traditional materials in life cycle analysis.

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