US-based NatureWorks is banking on this kind of publicity from companies like Naturally Iowa to attract demand in the food industry -- and more importantly consumers -- for its environmentallyfriendly polylactic acid (PLA) packaging. Citing a combination of pricing, retail uptake and innovative packaging deals, the company believes its biodegradable natural polymer is in the takeoff stage, ready to challenge the marketdominance of polyethylene terephthalate (PET). A sharp rise in demand for natural products and healthier food, without any synthetic chemical preservatives, have induced manufacturers to explore new food processing and preservation methods to exploit thedemand. The trend has led to an increased demand for better food handling, processing and packaging. While the material degrades to compost during recycling, the company is focusing its marketing on the consumer demand for "natural" and environmentally friendly products, companyexecutives told FoodProductionDaily.com at a meeting in Brussels. While the recycling technology is in place to process PLA separately from PET, not enough volume is entering the system to develop a unique waste stream for the product company executives readilyadmit. Instead NatureWorks is working on convincing retailers and processors that the packaging is a means of further differentiating their products from other organic or natural products on the market. The Cargill unit has put lots of money behind its bet, spending about $800m (€661m) developing the technology and bringing it to market. It makes PLA by fermenting out of sugars from cornand other plant crops. The PLA is then used to make clear plastic that can be used for clear food trays and bottles for still liquids. "Natural" and additive free foods can now be packaged in a polymer resin derived from plants, a strong selling point for retailers like Delhaize in Belgium and Auchan in France who arepiloting the PLA product, they said. Naturally Iowa in the US is a perfect fit for the product, linking organic foods with "natural" packaging to hit the consumer with a consistent marketing message. Although the privately held company does not disclose its finances, NatureWorks chief executive Kathleen Bader said sales of the product have doubled in the first half of 2005. "Since 2000, when NatureWorks PLA was introduced, the European market has been an early leader in adopting renewable resource-based products," Bader said. "Heightenedenvironmental awareness in European countries, including Italy, France, Bermany, Belgium and the UK have been key fro bringing nature-based plastics into the mainstream." NatureWorks is focusing on the retailing end to drive the demand up through the packaging chain. By creating a demand for its product among retailers, company executives hope packagers andprocessors will begin offering its PLA product as an alternative. Auchan in France is using the PLA packaging for its salads, switching from PET in April this year. By December the retailer will use PLA for its pastry and plans to make the switch for its privatelabel food products next year, said Martial Guglielmi, the company's packaging purchasing manager. "We are the first retailer in France to offer nature-based rigid salad packaging," Guglielmi said Delhaize has also made the move, testing the packaging at a store in Belgium. Signs and labels alert consumers that a range of food containers are made from renewable resources, areenvironmentally-friendly and compost. Both Auchan and Delhaize are absorbing the extra cost of the PLA packaging. "It is a committment of ours to invest in environmentally friendly products," said Delhaize spokesperson Katrien Verbeke. "We would not make the customers pay for it. Ourindustry is very price competitive." Verbeke said Delhaize is lobbying the Belgian government to create a composting stream for PLA, which would make it more attractive to environmentally conscious consumers. NatureWorks cites the stability of maize prices versus petroleum-based polymers as a driving trend. As the cost of oil has risen dramatically over the past year, prices for petroleum derivedpackaging has also risen. Due to improvements in production, Bader says NatureWorks PLA has been price competitive with PET for the past 12 months. The company is also offering an improved recycling system integration and aprogramme that allows retailers to claim the product is greenhouse gas neutral. In a bid for a bigger chunk of the European market, the company announced this month a sourcing programme that excludes genetically modified corn from its PLA. Those willing to pay the extra costwill be able to market their product in packaging with a "GMO-free" label. PLA can be used for rigid thermoforms, films, labels and bottles. Due to its biodegradable features it cannot be used for hot-fill and gaseous drinks like beer or sodas. PLA degrades under commercial composting conditions in 75 to 80 days, the company claims. It forms a flavour and aroma barrier comparable to PET, readily accepts coatings, inks and adhesives. Its stiffness allows for down gauging when converting from materials like PET without a loss ofstrength. Heat seals can be made as low as 80C, resulting in faster packaging times and increased output. Monolayer PLA bottles can be formed on the same injection moulding and stretch blow-moulding equipment used for PET, with no sacrifice in production rate. With its marketing in place and initial foothold in the major markets, NatureWorks hopes it has reached the takeoff zone. Note: A trip to Brussels by a FoodProductionDaily.com reporter for a presentation by the company was paid for by NatureWorks. External links to companies or organisations mentioned in this story: NatureWorks
