PETpla.net Insider 04 / 2014

EDITOUR REPORT 14 PET planet insider Vol. 15 No. 04/14 www.petpla.net Other steps have been taken to increase the efficiency of the block lines and optimise material usage in the plastic closure by replacing the two-piece (liner) plastic closure with a single-piece closure. “This is a market change that was entirely initiated here at Coca Cola Brazil,” as Paulo Roberto Villas explains, adding the great benefits of liner- less solution for CSD in the tropical weather enjoyed by the country. Plant bottle and supply of raw materials The term plant bottle encompasses a concept whereby PET bottles are manufactured either wholly or partly from renewable raw materials. PET is traditionally extracted from crude oil derivatives and is made up of 30% MEG and 70% PTA. The MEG component can also be manufac- tured from a vegetable base. Brazil is the biggest manufacturer in the world of bio-ethanol made from sugar cane. What could be more natural than to extract the bio MEG, as a derivative of bio- ethanol, from sugar cane? By comparison to other veg- etable options sugar cane is particularly well-suited for the manufacture of bio-ethanol because there is no competition with existing agricultural land, and rain water is sufficient for irrigation. Since 2010, plant bottles have been used in smaller quantities in 600ml Coca Cola and the 0.5l still water pack. The MEG responsible for the green proportion of the plant bottles is made in India from bio-ethanol from Brazil. The conversion of PET resin to PET with a proportion of bio MEG (Plant bottle) doesn’t bring any change on the supply Chain, requiring only the fine tuning of the existing blow- ing lines; in addition, there are no changes required in the recycling chain. All of which are good reasons for speeding up the use of plant bottles. The supply of PET resin is the result of a partnership with M&G Brazil. Here the largest individual reactor in the world with an annual capacity of 650,000t is in operation. To give some idea of scale, Brazil’s annual consump- tion already accounts for 600,000t PET resin; what this means is that this reactor alone would be required to cover the domestic requirement and a further resin plant with an annual capacity of 700,000t (which is already at the planning stage) is unlikely to be sufficient. M&G is also the partner who will be using the bio MEG for the manufacture of polymers. Paulo Roberto Villas specifically points out: “At Coca Cola we do not develop any polymers, our concern focuses wholly on ensuring sustainability”. Asked about price trends, he is assuming that, although the price of bio-ethanol may fluctuate considerably in Brazil, the plant bottle material, once the planned bio-MEG capacities are installed, will flatline to the level of PET resin. As regards the next stage, the company is already looking at the option of extracting the PTA from natural resources. Plans for a pilot line are already underway. A not-unrealistic target for 2019/20 might be the ability to introduce a bio PET (100% biopolymer). Refillable PET bottles PET refill bottles were introduced in Brazil at the begin- ning of the 90s. Following some initial successes when the refillable bottles enjoyed a market share of 6%, there was a decline to approximately 2%, coinciding with the success- ful introduction of the disposable PET bottle. From 2008 onwards demand rose again and 15 new bottling lines installed/converted have increased over the past few years. The 2l refill PET bottle, with a weight of 98g, is the do- minant product. Although authorisation allows 25 refill cycles, most operations run at 8-15 cycles. It is important that the consumer understands the difference in the non-returnable bottle, so one or two iden- tifying marks (embossed logo + inside labelling) have been built in to emphasise the difference and avoid the returna- ble bottle being discarded (market price including deposit). Bottle to bottle recycling A further step towards mitigating the burden on the environment and ensuring sustainability is so-called ‘bottle to bottle’ recycling. However, its introduction in Brazil is constrained by a combination of strict legisla- tion and excessive “small print”. For anyone who cares to read them, the labels on the bottles are printed with all the relevant rules and regulations. An authorisation for Brazil was granted in 2009 as a result of which CPR in Rio de Janeiro were author- ised to supply the prepared PET material for the market launch by Coca Cola in 2011. We questioned Paulo Roberto Villas about the recy- cling rate in Brazil. “Currently, it stands at 56%. Alumin- ium recycling, by contrast, can reach up to 98%.” He continued: “We have kick started a programme in which everyone involved in the recycling chain assumes their own share of responsibility. This does not just apply to consumers, bottlers and supermarkets, but the govern- ment too has to accept some of the responsibility. The aim is to build up an infrastructure that creates value that can provide a living for the participating collec- tors and their families and where, in addition, recycling costs can be kept low. The target is to achieve collec- tion rates of 75%.” We had one further question, which, though not directly related to matters in hand, was sure to have implications for the industry. What, we asked, were the likely prospects for capacity in Brazil in view of the World Cup and the Olympic Games which the coun- try is hosting in 2014 and 2016. Paulo Roberto Villas’ perspective was interesting: “You have to remember, he said, that the Games will be taking place during the low season, so the effect on capacity should be ben- eficial. From our point of view, we do not envisage any new capacity expansion required to cope with this FWC event.” www.cocacolabrasil.com.br