SIG sets ambitious target for 85% paper-based full-barrier aseptic carton; India’s first aseptic carton plant on track

SIG sets ambitious target for 85% paper-based full-barrier aseptic carton; India’s first aseptic carton plant on track

The Pulp and Paper Times

SIG is a leading solutions provider of packaging for better – better for our customers, for consumers, and for the world. With our unique portfolio of aseptic carton, bag-in-box, and spouted pouch, we work in partnership with our customers to bring food and beverage products to consumers around the world in a safe, sustainable, and affordable way.

SIG works in partnership with its customers to ensure consumers all over the world have access to food and beverage products that are safe, sustainable and affordable. SIG is well positioned to contribute to global goals on climate, nature, circularity, and nutrition – and to grow our business by helping customers meet demand for more sustainable products.

“2023 was a particularly active year for the Group as it further developed as a packaging provider of choice for liquid food and beverage producers. Having integrated bag-in-box, spouted pouch and chilled carton into our portfolio, we now offer our customers a broad range of packaging solutions from which they can select the options that suit them best. Importantly, this allows SIG to access new opportunities in new geographies and in new market segments, often with a similar customer base, where the benefits of aseptic packaging are well recognized,” Mr. Andreas Umbach, Chairman of SIG said in the annual report for FY23.

SIG’s strong revenue performance amid some softness in end- markets due to food price inflation impacting demand. SIG continue to identify and to realize cross-selling wins between its different substrates underpinning strategy to offer a broader product portfolio to food and beverage customers.

SIG’s revenue in 2023 increased by 18.5% on a constant currency basis (16.2% as reported) to €3,230.3 million (2022: €2,779.9 million). Excluding the acquisitions, revenue increased by 7.4%. Organic growth of the aseptic carton business was driven by price increases to recover past cost inflation. On a proforma basis, bag-in-box and spouted pouch revenue increased by 5.6%1 and contributed €604.0 million to Group revenue (€362.6 million in 2022, since acquisition). The chilled carton business reported solid growth, contributing €137.8 million (€60.2 million in 2022) to Group revenue in 2023.

Mr. Andreas Umbach further said, that the addition of bag-in-box and spouted pouch has further expanded our reach and has brought new innovation capabilities. In bag-in-box, we are positioning SIG as a key supplier for the automation of the food service sector, further strengthening our relationships with the leading multi-national food service companies who operate tens of thousands of quick service restaurants globally. We are driving growth in the global aseptic spouted pouch market by developing a next generation systems-based solution for aseptic pouches, drawing on our proven aseptic carton technology.

“Our strategy for the enlarged business is to leverage our established platform of service engineers, customer relationships, testing facilities and R&D capabilities to capitalize on new customer opportunities. We are developing cross-market regional capabilities and bringing together our technology expertise of all our substrates around the world. We continue to identify and to realize cross-selling wins between our different substrates, demonstrating the attractiveness of a broader product offering to our food and beverage customers,” he said.

Independent life-cycle assessments show that SIG’s carton, bag-in-box, and spouted pouch solutions offer up to 80% lower carbon footprints compared with other types of packaging, such as glass, plastic tubs and bottles, or cans.

On future products, Mr. Andreas informed the shareholders, “Our strong focus on sustainable innovation is driving progress towards circular and even lower carbon packaging solutions. In 2023, we set bold new targets to offer a full-barrier aseptic carton with at least 85% paper content (excluding closure) by 2025 and at least 90% (including closure) by 2030, enabling our cartons to be recycled in regions where only paper recycling streams are available. For bag-in-box and spouted pouch we have committed to offer recycle-ready2 solutions for all our relevant market segments by 2025.” 

“We are expanding our manufacturing facilities around the world and especially in emerging markets, with new aseptic carton plants in Mexico and India and a new chilled carton plant in China. We are also expanding bag-in-box capacity in the USA and are investing in digital printing in Europe. Capital expenditure also covers the construction of new filling machines in response to high levels of customer demand. In 2023, for the second year running, we placed over 90 filling lines in the field and these placements are a leading indicator of future growth,” Mr. Andreas stated.

For the Regional review of India, the report stated that through our new partnership with Parlé Agro, we are expanding our footprint in non-carbonated soft drinks. Parlé Agro, the industry leader in India, was until 2022 exclusively a customer of our main competitor. They were encouraged to engage with SIG by the flexibility of our machine solutions, which has enabled them to achieve the magic price point of Rp 5 for portion packs of their renowned fruit drinks.

In April we opened our second plant in Palghar, India for bag-in-box and spouted pouch. The plant has 15,000 m2 of vertically integrated production capacity and puts us in a strong position to serve the Indian market in aseptic processed fruits, beverage concentrates, fruit puree, and aseptic dairy for foodservice channels.

India recorded significant revenue growth compared with the prior year as well as demand for new filling lines. As of December 31, 2023, it had placed around 40 filling lines in field. Construction of first aseptic carton plant in India is on track and is expected to commence production at the end of 2024.

“Our ability to serve our Indian customers will be further enhanced by the opening of our first aseptic carton plant in the country, which is scheduled to commence production at the end of 2024. The plant will supply our growing filler base which already stands at around 40 machines – serving all leading dairy and non-carbonated soft drink players,” Mr. Andreas informed.

“We continued to purchase 100% of the paperboard for our aseptic cartons with FSC™ certification – and achieved this milestone for our chilled carton business (acquired last year) from January 2024. Overall, 98% of the paperboard for our cartons was procured with FSC™ certification in 2023.,” he said.
 

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