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Packaging Volume I I • September 2000 • Inform ~etai( ai( This section is by inform senior editor/writer Tom Krawczyk. If you go shopping in a supermarket, whether in a Wcstern metropolis or a developing nation's largest city, you're apt to find vegetable oil sitting on the shelves in those ubiquitous plastic bottles. In the Western metropolis, that may be the only way you'll find cooking oils packaged. In the developing nations, how- ever, when you get outside the few big city supermarkets you'll discover a different type of market for edible oils. Lower-income consumers can't afford premium food prod- UCtS sold at premium prices. Instead they buy lower-quality vegetable oil packaged in less expensive ways, including bags, cans, bottles, tubs, pots, jars, or pails. For high-income customers, quality may be more important than price; for poor peoples throughout the world, the choice may be entirely price-driven. "The important point for an oil marketer is to deliver the oil quality that the consumer wants at a price he or she is willing to pay," said Rich Ormsbee, principal chemist at Bestfoods.
11

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Page 1: ~etai(ai( - Results Directaocs.files.cms-plus.com/inform/2000/09/932.pdf · Ibrahim Nasir of Jahan Vegetable Oil ... glass bonlee traditionally have been ... packaging is the final

Packaging

Volume I I • September 2000 • Inform

~etai(ai(This section is by inform senioreditor/writer Tom Krawczyk.If you go shopping in a supermarket, whether in a Wcsternmetropolis or a developing nation's largest city, you're apt tofind vegetable oil sitting on the shelves in those ubiquitousplastic bottles.

In the Western metropolis, that may be the only way you'llfind cooking oils packaged. In the developing nations, how-ever, when you get outside the few big city supermarketsyou'll discover a different type of market for edible oils.Lower-income consumers can't afford premium food prod-UCtS sold at premium prices. Instead they buy lower-qualityvegetable oil packaged in less expensive ways, includingbags, cans, bottles, tubs, pots, jars, or pails. For high-incomecustomers, quality may be more important than price; forpoor peoples throughout the world, the choice may beentirely price-driven.

"The important point for an oil marketer is to deliver the oilquality that the consumer wants at a price he or she is willingto pay," said Rich Ormsbee, principal chemist at Bestfoods.

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'packagingPET use on the riseDespite the diversity in how edible oil is sold at retail levelsin developing countries, the common denominator in pack-aged edible oil is plastic bottles made of polyethylene tereph-rhalare (PET).

Around the world, PET has emerged as the packagingmaterial of choice for retail sale of edible oils. In some cases,PET is in the process of replacing other plastic packagingsuch as polyvinyl chloride (PVC) or high-density polyethyl-ene (HOPE). In other cases, PET is replacing glass bottles orcans typically made of steel or aluminum.

This is old news in Thailand, where the ThanakomVegetable Oil Products Co. Ltd. switched from pvc to PETapproximately 10 years ago.

"PET is more competitive in overall cosrs concerned,including borde manufacturing, Storage, transportation,marketing, handling defects, etc." said Sek Boonbunloo,deputy managing director at Thanakorn. "PET also pro-tects oil from oxidation berrer than PVc. PET does nothave problems with oil oxidation, borde defects, conrami-

;;ur

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IfUll,)1111<'1'I' "wi. \\

"- - The [or left andfar right photos were taken by

Thompson-McClellanPhotography in the vegetable oil

aisle at \Vorld HarvestInternational & Gourmet Foods

in Champaign, Illinois.

Padtqinc contaJners, clockwi$e from upper Jete

bq. drum. PET plastic, P\lC plastic,

HDPE plastic, meal,gbn. paper Qrton.

Volume II • September 2000 • Inform

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'"

SunflDWef" oil in r -l PET bottlesfor real! sale in Thailand.

Volume I r • September 2000 • Inform

Packaging

Food use of PET to riseThe roral u.s. market for barrier-type resins was almost four billion pounds

in 1999 and is expected to grow to six billion pounds by 2004, according

to a new study by Business Communications Co. Inc. Thermoplastic poly-

esters, primarily PET, make up the largest segment of the plastics barrier

packaging market, with 3.2 billion pounds used in 1999.

The company projects the use of bottle-resin PET to grow at 10% annu-

ally, reaching 5.1 billion pounds by 2004. In the United States, the largest

application is in food and beverage packaging, which accounts for 90% of

the U.S. market for resins in packaging.

The full report, "RP-137N; Plastics for Barrier Packaging," can be pur-

chased for $3,550. For more information, contact Business

Communications Co. lnc., 25 Van Zant Sr., Norwalk, Connecticut 06855,

USA (phone: 203-853-4266; fax: 203-853-0348; e-mail: publisher@

bccresearch.com; netlink: www.bccreseerch.com).

nation, or migration of PET inro rheoi!. "

For some, the switch from PVC toPET was simply a marketing necessity.

"With PVC, if the raw material wasnot good quality, you would get a verydull (appearing) bottle," said E.M.Voulelis, factory manager at Cape OilProducts in South Africa ... At the super-market, people might see that and thinkthe oil inside was dull or hazy!'

In Iran, however, the switch has beenmore recent due to cost factors and rra-dirional use of other packaging. PETbottles in l-L and 3-t sizes have enteredthe edible oil market during the pastrwo years, according to MohammadIbrahim Nasir of Jahan Vegetable OilCo. Although PET offers the advantageof allowing a potential buyer to see theoil, round or square metal cans still pre-dominate in Iran because of containerdurability and ease of handling.

"The Iranian tendency reward solidfat has contributed to long-time use of

tin cans and less use of bottles for liquidoils," Nasir said. Tin cans are consid-ered safe because they do not react withthe oil and, unlike PET bottles, preventsunlight from entering, he noted.

Even in the case of olive oil, where300-mt (10 Fluid ounces) and 600-mLglass bonlee traditionally have beenused to showcase the oil, a switch tol-L PET bordes may occur if produc-tion of olive oil increases and its pricedecreases, Nasir said.

A major factor determining the typeof packaging used for edible oils in Iranhas been the cost and availability ofpackaging machines and raw materials,Nasir said. PVC and HDPE jugs andPET bottles may replace metal cans inthe next couple of years if more packag-ing raw materials become availablethrough expansion of domestic produc-tion, he said.

In Malaysia, those who can replacemetal packaging generally have done so,according to Ping Chin Chong, quality

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manager at Vee Lee Edible Oils Sdn. Bhd."Tin cans have che disadvantage of

external rusting and are also prone (0dents;' Chong said. "Besides rbar.feak-ing from the joints is quite common. Allthe joints and folds of the tin can aresusceptible to leakage, a problem wedon't have with PET bottles."

Even if rneml cans don't leak, therecan be a problem with the sealant used.

"Food-grade lacquer is used to facil-itate the sealing of the base of the can.We previously encountered excessivelacquer being used and as a result therecould be loose bits of the lacquer in thetin can," Chong said.

In China, the choice for edible oilpackaging has changed over the pastfive years from metal cans and HOPE orPVC bottles to PET bettles, accordingto Luo jun, general manager ofFriendship Food Engineering Co. Lrd.(FEC) in Beijing.

"PET bonles arc lightweight, leak-proof, and give the oil a longer shelf life,usually 18 (024 months," jun said.

Even so, rhe global switch (0 PET isnor yet complete because other packag-ing materials still offer some benefits,especially for larger-size containers.

"In addition to plastic bottles, wealso use tins for our 25-L size, becauseit retains some advantages over plastic,"Cape Oil Products' Voulelis said."Alrhcugb plastic is cheaper than tin,you can stack tin cans several high on apallet, and stack pallets on top of eachother. For a warehouse, you can fill it to

greater capaciry using tin cans insteadof plastic bottles."

Even in developed countries such asthe United States, other plastics oftenare used instead of PET for protectiveor functional reasons.

More than half of the U.S. market isPET, but substantial amounts of HDPEand PVC are still used. Typically, any

clear bottle with a handle in the U.S.market is PVc. If an oil container witha handle is translucent or cloudy, it isHDPE instead, which is typically usedfor larger containers.

The choice of plastic package mayalso depend on the type of oil beingplaced in it. An oxygen barrier can beadded to HOPE bonlee to extend shelflife of oils, but that is an added expense.Some oils, such as peanut or cottonseed,are inherently more shelf stable and canbe stored in HDPE without an oxygenbarrier.

Peanut oil is widely used in China,and HOPE berries are still used in ruralareas, accounting for one-third of veg-etable oil sales, jun said. Like PVC,HDPE bonles have the advantage ofincorporating built-in handles for con-sumer convenience, bur the disadvan-tage of nor being transparent, like PVCand PET. HDPE also has greater perme-ability to oxygen, which can shorten theoil shelf life to 12-16 months.

The packaging processWhether the container is made of plastic,metal, or glass, it may seem obvious thatpackaging is the final step before retailsale of edible oils. What is less obvious iswho performs the packaging step. Somecompanies are "vertically integrated" andcollecr oil-bearing raw materials, such ascoconut, palm fruit, or oilseeds, processthe material, refine the oil, and package itfor retail sale. Others buy crude oil torefine and borde. Still others buy oil thatis already refined and simply package itfor retail sale. Around the world, the useof these three options varies widely, but inmany countries the packaged productsfrom all three types of companies co-existin the retail market.

«In South Africa, five or six compa-nies do as we do: crush, refine, and pack

(to .. f",,,ed 0 .. page 'JJg)

'"

Various rypes of paOO,ging can beIn seen the vegetable oil aisleof this Indonesian supermarket.

Volume I I • September 2000 • Inform

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Packaging

'"

The purpose of packaging"The general rule in packaging is 'form follows function,"said Jim Bono, a research fellow in packaging at Procter &Gamble Co. "You must ask yourself, 'What is the desiredfunction of the package?'"

There are at least three functions the packaging mustperform when dealing with retail sale of edible oils.

First, COStis important, but only with adequate function-ality. Packaging must be strong to survive routine abuse, but

convenient for the consumer, and easyto handle and use.

Second, the package must pro-vide a good barrier to oxygen, to limitpotential oxidation of rhe oil and to

maximize its shelf life.Third, the packaging must look

nice. lr should make the oil look clearand brilliant and show off the color ofthe oil.

On all three counts, PET comes out on top. First, PETis a crystalline material, providing the same clarity as glass,Bono said. Second, the crystallinity hinders oxygen frompassing through the walls of a PETbottle. Third, the low COStof PET isa result of excess supply.

"We would probably never havehad the advantage of PET for veg-etable oils if not for the soft drinkindustry creating such a high demandfor PET," Bono said.

According to Bono, a \-L PE.Tborde might COSt25 cents and PVC

may cost 30 cents for the same-sizebottle. In comparison, a l-L glass bot-tle might COSt35 cenrs, bur it weighsten times more than a plastic bottle,and the extra weight will more thantriple delivery costs. HOPE would notbe used for a I-L borde, Bono said,but a 4-L bottle probably would onlycost about 40 cents. Adding an oxy-gen barrier to the HDPE bottle would

PETpIucic_

---COSta few cenrs.

The COStof metal cans varies depending on the mareri-

al used. Although the terms "tin cans" or "tins" typicallyrefer to metals such as steel or aluminum, these materialsare costly in Indonesia. According toGary Hulse, sales and marketingmanager for PT Sinar MeadowInternational Indonesia. Indonesiancompanies use tin-plated steel, coatedon the inside with a food-grade lac-quer, because of irs favorable combi-nation of COSt,strength, and weight.

HOPE is also inexpensive to use inpackaging, but canner "show off"the oil nor preserve it as well as other packaging materials.Of course, consumers may use up an oil before oxidationbecomes a problem, but if oils are left in HOPE packagingvery long, oxygen works irs way in.

In a "relative barrier rating" of resins, with high numbersequaling high permeability to oxygen and thus greater oxi-dation of the oil, HDPE scores a rating of 140. Adding anexternal silicon dioxide coating to HDPE, or an internalethyl vinyl alcohol layer, will decrease its rating to 0.1, adrop of three orders of magnitude. Incomparison, PVC scores a rating of 10,and PIT scores a raring of 4. Glass andmetal score zero, as rhey are impermeable.

lr also helps to start off without anyoxygen inside the container. To get a headstarr on minimizing oxidation, most oilsdestined for retail sales in the plastic con-tainers are packed under an inert atmos-phere. After the container is filled with oil,the beadspace above the oil is filled with an insert gas. It is alsocommon to co-mingle inert gas with the oil while filling thecontainer. The goal is to leave me oil and headspace com-pletely devoid of oxygen. In addition, all of [he materials usedin packaging are considered inert. They do nor "shed" oxygenand and do not contaminate the oil placed in them.

ln the United States, the switch from glass to PVC wasmade in the 1980s. When PET technology advanced tomatch that of PVC, mosr companies switched to PIT bottlesin the 19905. Cost was a big motivation, bur additionaladvantages were recyclability and the clarity of PIT com-pared to PVc.

--

..-

Volume II • September 2000 • Inform

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Recycling is not much of a concern in many parts of theworld. In the "wet markets" of Indonesia, however, ccn-

sumers are likely to reuse their owncontainers repeatedly. Oil packagersin developing nations, however, donot typically recycle used containersof edible oils.I "In Malaysia, manufacturers

~ are not allowed to use recycled orj used bottles to pack cooking oil, n said

Dn.m ,_ Ping Chin Chong, quality manager atVee Lee Edible Oils Sdn. Bhd.

Even in the industrialized regions of (he world, recy-cling of plastics for raw materials is not always widelypracticed. PVC. PET, and HOPE can all be recycled for usein making raw material for packag-ing, but that does not mean that theyare. It depends more on local cus-toms, regulations, and availability ofrecycling services.

"In Europe, especially Scandinavia,Germany, and Austria, almost 100%of packaging rnarerial is recycled,"said Michael Bockisch of UnionDeutsche Lcbensmirdewerke GmbHin Hamburg, Germany.

In the United States, 'l-gal milk containers are usuallyHOPE, which provides the starr of a recycle stream for

vegetable oil containers that are madeof that material. Glass bottles arcmore easily recycled in areas whererecycling is encouraged, but that isnor the main reason why some oilsare still packed in glass.

"For some of the gourmet oils,glass or metal containers are part of

GIuo_ the image the oil projects," a U.S.product development scientist, who

asked not to be identified, said. "Olive oil promotersmight say that glass gives the oil a berrer flavor, butwe've done studies that show glass is not needed toproperly preserve the full flavor of the oil. PET does JUSt

fine ."

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Packaging

'"

Workers operate a vegetableoil filling Nne in China at afactory built by FriendshipFood Engineering Co. Ltd.

(~o"w ..ud (rom page 5135)

toe oil for sale," Voulelis said. "Othercompanies purchase crude oil to refineand pack, and some just pack therefined oil they purchase."

The reasoning behind these choicesmay be mainly economic, but maintain-ing product quality is also a major moti-vator in choosing how much of the sup-ply chain a company wants to control.

"Some companies such as the SinarMas Group and PT lutiboga Seiabrcra,Indonesia's largest plantation/producergroups, have operations that cover it allfrom beginning to end, with plantations,refineries, and oil manufacturing/pack-aging plants," said Gary Hulse, salesand marketing manager for PT SinarMeadow lnrernational lndonesia, a jointventure of the Sinar Mas Group andAustralia's Goodman Fielder, parent ofMeadow Lea Foods. "Others companiessuch as ourselves purchase the rawmaterials from [he plantations andrefine and pack the oil ourselves. This isthe usual practice, if only to manageinput costs and quality control issues."

Volume I I • September 2000 • Inform

Regardless, all three systems rely onhigh-speed equipment to fill containers,seal them, and pack them in cartons fortransport.

"For retail destinations, the basic oilbottling equipment is the filler, capper,and lnbeler;" said Jim Ruiz, president ofpackaging equipment distributor PROIN,based in Los Angeles, California. "Ourequipment manufacturers make differenttypes of bottling equipment based on therype of package or its volume, but other-wise they all get filled, capped, and labeledbefore being packed into cartons. n

A variety of companies manufac-ture packaging equipment for saleinternationally. No marrer what thelanguage is on the label applied ro thebottle, the basic technology behind thepackaging process is much the same,and heavily oriented toward continu-ous operation with a minimum ofdowntime.

The manufacture of the packagesthemselves is another marrer entirely.While mcsr companies purchase pack-aging from suppliers, some companies

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9J9

Paper or plastidAlthough rhe world may be moving toward PET as the universal packaging material, other alternatives are available.Tin cans and glass bottles are widely used for certain sizes or types of oil, but what about paper packaging?

Tetra Pak, the packaging arm of Tetra Laval Group, makes a "Tetra Brik" rectangular coat-ed paper box for use with liquids, including edible oils. Although olive oil was first sold in l-L TetraBrik packages in Spain over a decade ago, the box was JUSt one of several packaging systems usedby olive oil companies at the time.

In September 1999. the Spanish olive oil producer Campania Alimemaria del Sur de Europa(CALSE) introduced its olive oil product packaged exclusively in Tetra Brik 250-mL, 500-mL, andl-L cartons. According to Tetra Pak, CALSE chose the carton after determining rhar irs oxygen bar-rier and light barrier properties were superior to those of glass and plastic containers.

!'aporcaruon_ CALSE is not the first to switch to using a paper carton exclusively. In 1994, Sianchevi LachiLtd. in Bulgaria reconfigured its sunflower oil facility to use ehe t-L Tetra Brik instead of glass or

plastic bonlee. Otherwise, the main market for paper packaging of oils is in Austria, according to Michael Bockisch ofUnion Deutsche Lebensrninlewerke GmbH in Hamburg, Germany.

--~-='---

~

,,,."'" .. r .. ,

have installed PET blow-molding linesto make their own bottles. Thanakomin Thailand obtains this maximal verti-cal integration with its own crushingplant, oil refinery, PET borde manufac-turing lines, and oil filling and packinglines, Boonbunloo said.

In the 'wet markets'Beyond the displays of PET boreles ofoils in supermarkets, there are severallower-cost options for selling edible oilsto consumers.

In Indonesia, a couple of steps belowthe high-priced supermarkets is therealm of the "wet markets," where mostconsumers go to buy their meat, fish,fruits and vegetables, margarine, andcooking oil. Compared to the clean,sanitized aisles of supermarkets, the wetmarkets are, well, different.

"There's no air-conditioning, and itcan get very hot inside," PT Sinar'sHulse said. "It can be quite colorful-itis definitely an interesting experience."

Most Indonesian edible oil is sold inrbe wet markets, also called "scooping

markets" because customers buy ascoop of oil to put into their own con-tainers. Vendors sell their oil from 200-l drums of oil, typically palm olein.

"Although lndonesia might be anextreme example, similar markets existin low-income areas of southeast Asia,latin America, and elsewhere aroundthe globe," Besrfood's Ormsbee said.

The common bond is that poor con-sumers can't afford the higher quality ofbottled oils. Instead, the wet marketsells them what they can afford, with acorresponding reduction in oil qualityand increase in oil oxidation, bothbefore and after the purchase.

"The 'scooping trade' eliminates thecost of the package, which is a majorCOStcontributor to [he bcrrled oil that isavailable in the premium markets,"Ormsbee said.

Some buyers may be able to affordonly enough to meet that day's needs-perhaps a few spoonfuls.

"You might take a jug or a pot orbonle, or occasionally me seller will purit in a polybag for you," said John

Templeman, engineering director forMeadow Lea. The oil quality is fairlylow, typically with a free fatty acidvalue of 0.1%, peroxide of 5-10, colorof 5 red, and a cloud point of over 12"C,Templeman said. Even so, it is not thelowest-quality oil sold to consumers.

..Another form of cooking-oil distri-bution in Indonesia is for a vendor topush a cart holding several 18-l squaredrums of crudely refined palm oleindown the Street and sell it by thescoop," Hulse said. "There is no con-trol over quality and no brand nameassociated with the oil."

The bottled oil found in supermar-kets, however, is fully refined, withquality guaranteed by a company will-ing to put its brand on the label. Theprice also is at lease 50% higher thanthe price charged by the street ven-dors, Hulse said. The volume of cook-ing oil sold in supermarkets is small,but growing, compared to the amountof oil sold in the more traditional dis-tribution outlets such as the wet mar-kets. Although the southeast Asian

Volume 11 " September 2000 " Inform

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Packaging,...

few larger cities on the islands of Javaand perhaps Sumatra or Bali. These oilswould be regarded almost as 'boutiqueoils,' with less than 2% of the edible oilsmarket."

palm olein. The bottles come off thepackaging line completely sealed. Aseparate cap comes with the bottlesfor use in providing closure once theseal is broken.

Smaller bottles of oil have been ingreater demand since the Asian eco-nomic crisis because they cost less.Indonesian consumers typically pur-chase inexpensive oils as well.

"Palm oil sold as palm olein isabsolutely dominant," Hulse said."Soyabean, sunflower, corn, olive,canola, and peanut oils would only befound in larger 'A-Class' supermarketsand distribution would be confined to a

economies are still recovering from adownturn in the late 1990s, the trendis for continued expansion of super-market chains, and that meansincreased sales of packaged oils,Meadow Lea's Templeman said.

There is little volume of retail oilsales between the tiers of supermarketand wet market, but some smaller,family-owned stores sell a middle-quality oil that has novel packaging,Templeman said. The packagers ofthese oils use a form-fill-and-sealmachine to produce small low-densitypolyethylene bottles of 125·mL (4fluid ounces), 250-mL, and 500-mL

Other perspectivesIn Malaysia, palm olein holds at least80% of the consumer retail market.Blends of palm olein with peanut andsesame oils are next in market share,followed by corn oil and soybean oil.

Malaysian consumers purchase edi-ble oils in PET borrles ranging from500-g (slightly more than a pound) upto 5-kg containers, but metal cans are

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Volume I I • Seplember 2000 • Inform

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9<1

The packaging regulation of IndiaOn Sept. 17, 1998, [he government of India promulgatedits Edible Oils Packaging Regulation Order. The objectivewas to ensure availability of safe and quality edible oils inpacked form with declared prices to the consumer, accord-ing to M.K. Kundu, Edible Oils Commissioner within theMinistry of Food and Consumer Affairs.

The regulation was a reaction to an epidemic of dropsyin August 1998, caused by consumption of argemone oil.In this case, the source was mustard seed oil that had beencontaminated with :lfgemone. According to India'sMinistry of Health, 2,992 persons were affected by drop-sy, exhibiting such symptoms as vomiting, diarrhea, nau-sea, and shortage of breath. Nearly 70 persons died. Thegovernment therefore acted to restore the confidence of theconsumers, industry, and farmers.

The main features of the regulation are:• Edible oils including edible mustard oil can only be

sold in packaged form after Doc. 15, 1998.• Edible oil packers are required to register with a reg-

istering authority.• Each packager must have its own analytical facilities

or adequate arrangements for properly testing samples ofthe oils.

• Oils must conform ro the standards of quality spec-ified in the Prevention of Food Adulteration Act (1954),the Standards of Weights and Measures (Packaged

Commodities) Rules {I 977), and similar rules.• Each package must show all relevant information so

the consumer is nor misled and the identity of the packageris clear.

Although the regulation may appear strict, the centralgovernment has given the state governments power torelax any requirement of the rules for meeting special cit-cumsrances. More importantly, the implementation of theregulation was delegated to the state governments.

"The central government is aware that the productionof edible oils is a highly decentralized industry," Kundusaid. "A substantial quantity of oil production is in thesmall-scale sector,"

More time would be needed for these producers to con-form to the new ruling than if the industry were highlycentralized with several big companies. Concern for theconsumer was another factor.

..A sizable proportion of the population is living belowthe poverty line," Kundu said. "It may be difficult forthem to afford the additional COStof packaged oils. n

The net result has been that the packaging regulationorder is not widely enforced.

Musrard oil constitutes approximately 30% of the totaledible oil production in India. Groundnut oil is the othermajor edible oil consumed in India, although soybean oilis also used to a lesser degree.

from I L to 5 kg are sold in small shopsand larger supermarkets. Up ro 90% ofsales are the 5-kg or 5-L size, withpackages of I L or less accounting forabout 5% of sales.

The main oils packaged for con-sumers are soy and peanut, but oil con-sumption varies regionally in China. InBeijing and the northern part of thecountry, soybean oil holds 80-85% ofthe market, with the rest mostly peanutoil, according TO Arie Cederbaum, chiefengineer at FEe. In the central andsouthern regions, soybean oil holds50-70% of the consumer retail market,

used for larger sizes. The company alsostarted using HDPE jugs for the 17-kgsize in 1998.

"In some rural areas, cooking oil ispacked in plastic bags, but this appealsto a small group of consumers," Chongsaid.

In China, the lowest-cost edible oil isbulk soybean oil sold from l80-kgdrums, Jun said. These drums are soldto neighborhood shops where manuallydriven pumps are used to fill containersmat consumers bring to the stores.

Consumption of packaged oils ishigher in the cities, where packages

with peanut consriruting 20-30% of themarket. Rapeseed oil has appeared inpackaged form only recently, making upapproximately 5% of retail oils in thesouth.

In Turkey, even though the country isone of the five major olive oil-producingnations, sunflower oil dominates withapproximately 77% of the market,according to Aysun Stenvik, supervisorof quality control and research atKirlangic Edible Oil Co. Sunflower oiland corn oil, which are the fastest grow-ing segment at 16% of sales, are pack-aged in I-L PVC and PET bottles. At

Volume I I • September 2000 • Inform

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Volume I I • September 2000 • Inform

Packaging

pvc to PET on containers with han-dles, but I don't know when that tech-nology will become available," saidone product development scientist,who asked not to be identified, at amajor U.S. edible oil producer. "Thenext generation of cost savings inpackaging, however, will be some sortof flexible packaging. Consumers arenot very interested in purchasing edi-ble oils in flexible packaging,though ."

In Indonesia, such flexible packag-ing has come into play over the pastcouple of years, Hulse said. Thesepalm olein "pouch packs" of I-L and2·l size are reinforced plastic with anoval base and heat-sealed at the top,giving a triangular profile. These retailmarket products offer a less expensivepackage filled with the same brand-name high-quality oil that goes intoplastic bcnles.

Meanwhile, one trend toward rec-tangular PET bottles is being seen moreoften on U.S. store shelves, with othercountries starting to follow suit, accord-ing to PROIN's Ruiz.

Changes in edible oil packaging mustmeet certain criteria if they are to standa chance, regardless of the country ormarket.

For a new packaging material to suc-ceed, it would have to be less expensivebur just as protective as current packag-ing materials. Recycling or raw materialconsumption Issues would also have tobe addressed. And finally, the majorbrands would likely foot the bill-pri-vate labels rypically follow the pace setby branded products.O

6% of the market, olive oil is packagedin smaller glass bottles of 250 mL and500 mL, plastic bcnlcs of I-L, andmetal cans for sizes of 5-L and up, JUStlike other oils.

"In rural areas of Turkey, the mostpopular size for sunflower and corn oilsis the 5-L can," Kirlangic Edible Oil'sStenvik said. "In big cities, the I-L and2-L bottles are preferred."

In Brazil, soy is king, making uproughly 90% of the cooking oil market.Most soy oil is sold in metal cans, butother oils such as corn, sunflower; andcanola are sold in I-L PET bottles.

ln Thailand, palm oil holds 66% ofthe market for edible oil sales, with soy-bean second at 20%. Although theseoils rypically end up in PET bottles,plastic bags are used for low-end salesand glass bottles are used for importedoils such as olive or corn. Metal cansare also used for larger sizes of com-monly purchased oils.

TrendsOne fairly safe prediction is that PETwill garner more of the oils packagingmarker.

"We are forecasting greater usage ofPET borrles in China," Jun said."Another trend is a slow move towardsmaller-volume containers for retailsale. We expect consumers to movefrom 5-kg down to 2.5-kg or I-kg bot-des."

In the United States, PVC is still usedfor making clear containers with han-dles, and that would be an area for PETro grow into.

"I think we'd love to switch from