Wal-Mart goes 'green' with packaging
Wal-Mart goes 'green' with packaging
In what should be a huge boost to the sales of corn-based resin packaging offered by NatureWorks PLA, Wal-Mart has announced plans to begin using some petroleum-free packaging product on Nov. 1, saving the equivalent of 800,000 gallons of gasoline over the next year.
Cargill Inc., the parent company of NatureWorks, released information indicating that Sam's Club, which is a division of Wal-Mart, and NatureWorks have been working together for one year on utilizing this more environmentally friendly packaging on some products offered for sale by the United States' largest retailer.
NatureWorks PLA is a resin product created by extracting the starch stored in corn and refining it into natural plant sugars. The sugar is then fermented into lactic acid, which is used to create a clear plastic called polylactide, or PLA, that can be shaped into a variety of bottles, containers, trays, film and other packaging.
Proponents say the material provides the convenience, look, feel and performance of petroleum-based plastic packaging while being made from a 100 percent annually renewable natural resource. Beside the fact that the base material of the resin is corn rather than petroleum, the packaging also can be disposed of in more "green" ways. Cargill claims that the material has been successfully commercially composted.
The Cargill press release announcing the collaborations said that the first Wal-Mart products to be packed using this technology will be four fresh produce items that will roll out the first week in November: fresh-cut fruit, herbs, strawberries and brussels sprouts. Following that introduction, the packaging will be used with cut vegetables later in the month. By the holidays, gift cards sold at Wal-Mart will be made from NatureWorks PLA. The final phase scheduled for 2005 will include bread bags, donut boxes and tomato packaging.
Cargill actually makes the resin, which it sells to packaging firms that create the actual packaging. Ann Tucker of Cargill said that a number of different packaging firms will be involved, but she singled out Wilkinson Industries of Fort Calhoun, NE, as one of the major players.
Joe Selzer, vice president of marketing and sales for Wilkinson, said that the firm is already working with Wal- Mart's fruit and vegetable suppliers involved in this project and has sent most of them their first load of packaging. While much of the packaging will be used for produce destined for Wal-Mart, Mr. Selzer said that there is no restriction on who can buy product in the PLA packaging. "Some of the processors have asked if they can sell to their other customers, and they can," he said.
At this point, the Wilkinson spokesman said that he could not release the name of those suppliers, but he said that there are about a half-dozen of them, and they are among the major cut-fruit suppliers in the country.
Wilkinson has been working with NatureWorks for the past two years developing this corn-based line of packaging, and Mr. Selzer said that it has proven to be a very viable product. While it has "green" benefits, it also allows buyers to get a handle on their packaging costs. It is no secret that petroleum-based products -- including most other plastic packaging - have seen tremendous increases in the past 18 months.
"The PLA resin is comparable to the [petroleum-based] APET resin in many instances," said Mr. Selzer. "Not in every case, but most of the time, and we just don't know what oil prices are going to do. I've seen predictions that they are going to settle at $55 a barrel and that they are going to jump to $75."
He said that at $75 per barrel, the PLA resin would be as good a buy in almost any instance. Different plastics need different strength resins, which contributes to the price fluctuation and causes PLA to sometimes be competitive and sometimes not under the current price structure.
For example, Mr. Selzer said that polystyrene is a low-cost material with which the PLA resin can not yet compete. But polystyrene, which is commonly used to make egg cartons, is typically not strong enough for produce industry uses.
Both NatureWorks and Wilkinson said that there will be no problem filling demand even with the significant increase in business from Wal-Mart. "We have a 300-million-pound capacity facility," said Ms. Tucker. "We are not going to run out of resin."
Mr. Selzer indicated that just as fast as NatureWorks can provide the resin, Wilkinson can provide the consumer packaging with no interruption in service. "We are not worried about" demand outstripping supply, he said. Other packaging companies can and most likely will devote some packaging lines to the new resin as demand increases. And demand is expected to increase.
"Virtually all of our customers are asking about PLA, especially as the price of oil rises," said Mr. Selzer.
Cargill Inc., the parent company of NatureWorks, released information indicating that Sam's Club, which is a division of Wal-Mart, and NatureWorks have been working together for one year on utilizing this more environmentally friendly packaging on some products offered for sale by the United States' largest retailer.
NatureWorks PLA is a resin product created by extracting the starch stored in corn and refining it into natural plant sugars. The sugar is then fermented into lactic acid, which is used to create a clear plastic called polylactide, or PLA, that can be shaped into a variety of bottles, containers, trays, film and other packaging.
Proponents say the material provides the convenience, look, feel and performance of petroleum-based plastic packaging while being made from a 100 percent annually renewable natural resource. Beside the fact that the base material of the resin is corn rather than petroleum, the packaging also can be disposed of in more "green" ways. Cargill claims that the material has been successfully commercially composted.
The Cargill press release announcing the collaborations said that the first Wal-Mart products to be packed using this technology will be four fresh produce items that will roll out the first week in November: fresh-cut fruit, herbs, strawberries and brussels sprouts. Following that introduction, the packaging will be used with cut vegetables later in the month. By the holidays, gift cards sold at Wal-Mart will be made from NatureWorks PLA. The final phase scheduled for 2005 will include bread bags, donut boxes and tomato packaging.
Cargill actually makes the resin, which it sells to packaging firms that create the actual packaging. Ann Tucker of Cargill said that a number of different packaging firms will be involved, but she singled out Wilkinson Industries of Fort Calhoun, NE, as one of the major players.
Joe Selzer, vice president of marketing and sales for Wilkinson, said that the firm is already working with Wal- Mart's fruit and vegetable suppliers involved in this project and has sent most of them their first load of packaging. While much of the packaging will be used for produce destined for Wal-Mart, Mr. Selzer said that there is no restriction on who can buy product in the PLA packaging. "Some of the processors have asked if they can sell to their other customers, and they can," he said.
At this point, the Wilkinson spokesman said that he could not release the name of those suppliers, but he said that there are about a half-dozen of them, and they are among the major cut-fruit suppliers in the country.
Wilkinson has been working with NatureWorks for the past two years developing this corn-based line of packaging, and Mr. Selzer said that it has proven to be a very viable product. While it has "green" benefits, it also allows buyers to get a handle on their packaging costs. It is no secret that petroleum-based products -- including most other plastic packaging - have seen tremendous increases in the past 18 months.
"The PLA resin is comparable to the [petroleum-based] APET resin in many instances," said Mr. Selzer. "Not in every case, but most of the time, and we just don't know what oil prices are going to do. I've seen predictions that they are going to settle at $55 a barrel and that they are going to jump to $75."
He said that at $75 per barrel, the PLA resin would be as good a buy in almost any instance. Different plastics need different strength resins, which contributes to the price fluctuation and causes PLA to sometimes be competitive and sometimes not under the current price structure.
For example, Mr. Selzer said that polystyrene is a low-cost material with which the PLA resin can not yet compete. But polystyrene, which is commonly used to make egg cartons, is typically not strong enough for produce industry uses.
Both NatureWorks and Wilkinson said that there will be no problem filling demand even with the significant increase in business from Wal-Mart. "We have a 300-million-pound capacity facility," said Ms. Tucker. "We are not going to run out of resin."
Mr. Selzer indicated that just as fast as NatureWorks can provide the resin, Wilkinson can provide the consumer packaging with no interruption in service. "We are not worried about" demand outstripping supply, he said. Other packaging companies can and most likely will devote some packaging lines to the new resin as demand increases. And demand is expected to increase.
"Virtually all of our customers are asking about PLA, especially as the price of oil rises," said Mr. Selzer.
