2.2012 A MAGA ZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS The SHAPE new aged The global force you can’t deny or v a l f n i t a L eting k r a m S in U A HOTEL WITH BUZZ Beehives and fair-trade jeans in Berlin THE MAGAZINES YOU DIDN’T KNOW EXISTED Esther Selsdon Shape is a magazine from SCA, primarily geared toward customers, shareholders and analysts, but also for journalists, opinion leaders and others interested in SCA's business and development. Shape is published four times a year. The next issue is due in October 2012. Publisher Kersti Strandqvist Managing Editor Marita Sander Editorial Anna Gullers, Göran Lind, Ylva Carlsson, Inger Finell Appelberg Design Markus Ljungblom, Kristin Päeva Appelberg Printer Sörmlands Grafiska AB. Katrineholm Address SCA, Corporate Communications, Box 200, 101 23 Stockholm, Sweden. Telephone +46 8 7885100 Fax +46 8 6788130 SCA Shape is published in Swedish, English, Spanish, German, French, Dutch and Italian. The contents are printed on GraphoCote 90 grams from SCA. Reproduction only by permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com. Address changes can done at www.sca.com/subscribe or by e-mailing sophie.brauner@sca.com Cover photo: Getty Images 2 SCA SHAPE 22012 “SHAPE FAVORS DINNER TOPICS” ESTHER SELSDON gets very excited when she tells people that she writes for Shape. She has written a novel, a radio play and a dozen nonfiction books, but nothing stirs up dinner conversation quite like personal care products. For this issue, she has chased down Britain’s first female professor of incontinence, and if more are appointed she’ll be the first to find them. Esther started her career as a barrister. Five years defending the youth of Britain led to an impulse to make up her own stories instead of other people’s. Several decades later, she is now the proud winner of ‘Dutch Women’s Book of the Month’ as well as ‘Central American Travel Writer of the Year’ and ‘Honorary Citizen of Syria for Services to Tourism’ (she’s not really sure she should mention that). She is also the Royal Literary Fellow at the University of Westminster. Esther lives in a flat in central London with her husband and two teenagers , all of whom have long since given up being embarrassed about being mentioned in print. Contributor SCA’S SOCIAL MEDIA SITES Youtube.com/ SCAeveryday shows commercials and videos from SCA’s press conferences, presentations and interviews with executives and employees. Slideshare.com/ SCAeveryday is for investors and analysts, who can download presentations from quarterly reports and annual general meetings. Facebook.com/SCA is intended to attract talent, engage users and provide information in a way that complements sca.com. Scribd.com/ SCAeveryday makes some 50 publications available, including SCA’s sustainability report, its Hygiene Matters report and Shape magazine. Twitter.com/SCAeveryday provides a good summary of every thing happening at sca.com and in SCA’s social media. The aim is to provide various users, journalists and bloggers with relevant information. Flickr.com/ HygieneMatters supports the launch of the global report Hygiene Matters with images. CONTENTS 06. A grey tsunami... The aging population is a global challenge with enormous consequences. 12. ... with business potential SCA’s ambition is to play an important role as the population grows older. 24. Odd magazines rule Despite the rise of digital media, nishe magazines blossom. 26. A hotel for honeybees Beehives on the roof suggest a different type of hotel in Berlin. 30. Latin spice in marketing The US Latino population makes marketers rethink strategies. IT’S OK to giggle when Grace Dorey talks about incontinence. 20 34. Inanimate objects talk Printed electronics make products smart. 36. Happy shareholders at AGM Louise Julian and Bert Nordberg are new board members. ALSO... CHINESE TISSUE in the SCA portfolio – page 4 SHAPE UP – page 18 12 HOURS with Silvia Schirinzi – page 38 SHORT NEWS FROM SCA – pages 4–5, 16, 40– 43 DID YOU KNOW... ...how Dutch politicians got to try what it feels like to be old? See page 15. SCA SHAPE 22012 3 ISTOCKPHOTO UPDATED News from SCA 22.6% More Chinese tissue in the portfolio SCA has acquired an additional 5 percent of the shares of leading Chinese tissue company Vinda. The purchase price is around 600 MSEK. VINDA IS ONE of the most successful tissue producers in China, the second-largest tissue market in the world. Currently Vinda commands strong brand recognition in the country and is the third-largest player in the Chinese household paper industry in terms of market share and production capacity. The company has eight production facilities with a total production capacity of 470,000 tons and is targeting 1 million tons in the coming years. “The market for tissue products in China continues to grow well and continues to consolidate, with the larger players, such as 4 SCA SHAPE 22012 Vinda growing at a significantly faster speed than the market,” says Jan Johansson, SCA’s president and CEO. “We intend to be among the leading players in China, and for this reason we have decided to increase our ownership in Vinda”. The seller in the transaction is Fu An, a company majority-owned by Vinda Chairman Li Chao Wang. SCA’s share in Vinda after the transaction will be 22.6 percent. The transaction is subject to receiving consent from some of Vinda’s lenders. Vinda is listed on the Hong Kong Stock Exchange. ...is SCA’s share in Vinda, China’s thirdlargest household paper supplier. STRONGER presence in South America SCA HAS ACQUIRED the remaining 50 percent stake in the Chilean hygiene company PISA (Papeles Industriales S.A.), and after the transaction it will own 100 percent of the company. The purchase price is approximately 520 million SEK. The company operates primarily in the sectors of tissue for consumers and Away-From-Home usage, which represent about 70 percent and 30 percent of revenue, respectively. Revenue in 2011 was about 520 million SEK. In addition, incontinence care products under SCA’s global brand TENA have been introduced in Chile through PISA. “The time is ready for us to take the next step in our expansion in Latin America, where the PISA acquisition further strengthens our presence in this important growth market,” says Jan Johansson, president and CEO of SCA. JUNE ASIAN ACQUISITION CLOSED SCA’s acquisition of Everbeauty has been completed. Everbeauty is a leading Asian personal care products company. DID YOU KNOW THAT… SCA HAS MOVED from third to second rank in CNN/Fortune’s list of the world’s most admired forest and paper companies. MAY SEALING THE DEAL Moving up in French value chain SCA HAS ACQUIRED PLF, France’s largest indpendent supplier of wood-based construction products to the builders merchants sector. PLF distributes timber products to the builders merchants sector throughout France. The company is based at two sites near Poitiers and Rochefort, next to SCA Timber’s own terminal for solidwood products. PLF processes about 70,000 cubic meters of solid-wood products annually, including planing and surface treatment. “For some time now, our aim has been to move up the value chain in France,” says Jonas Mårtensson, president of SCA Timber. “Through the acquisition of PLF, we will become one of the largest direct suppliers to the builders merchants sector in France, which is similar to the position we already hold in the UK and Scandinavia.” The EU has approved SCA’s disposal of its packaging operations to DS Smith. The Commission has conditioned the decision to DS Smith making some divestments after the acquisition. MARCH SUSTAINABILITY TARGET LAUNCH SCA launched new sustainability targets. According to a recent SCA survey, sustainability activities are significant for the business operation. SCA SHAPE 22012 5 FEATUREAN AGING WORLD FOCUS: The growing number of old people in the world will change most aspects of the societies we live in. 6 SCA SHAPE 22012 The era of CENTENARIANS TEX T: MATTIAS ANDERSSON PHOTO: GETT Y IMAGES After the 20th century’s record global population increase, the world is now seeing a dramatic decline in the number of babies being born while more people live longer. We have entered the graying era of centenarians. “The aging population is a challenge without parallel that will have sweeping global consequences,” a UN report notes. I N AN OFT-QUOTED speech from 1973, then-World Bank President Robert McNamara, the former US defense secretary, compared the threat from the world’s growing population to that of a nuclear conflict. This view, which was shared by most demographic experts, had its roots in a classic work from 1798 by the economist, clergyman and demographer Thomas Malthus, An Essay on the Principle of Population. A pessimistic Malthus predicted disaster because population was expected to increase at a far faster rate than food production. Strict population control was thus the key to prosperity, as higher pay to working families would only lead to more children. Some 200 years later, the challenge is the opposite. “When I was studying demographics, the big question was how to keep the population from reaching 24 billion,” says professor Sarah Harper, head of the Oxford Institute of Population Ageing and one of the leading experts on this new demographic challenge. “Today we project the number will rise from 7 billion now to 10 billion by mid-century.” The annual percentage increase in the world’s population peaked as early as the mid-1960s and has fallen since then. What demographers long disregarded in their future scenarios was the dramatic speed at which fertility fell, and the number of babies born has declined rapidly. It is not news that fertility in Europe and Japan has been at record low levels for decades. Women in many developed countries are reproducing at far below the rate of just over two children needed to keep the population constant, which means a shrinking population. China’s centrally governed one-child policy is often cited as a recipe for population decline, but the trend is global. SCA SHAPE 22012 7 FOCUS: AN AGING WORLD Shrinking global divides FERTILITY (CHILDREN PER WOMAN) 9.0 8.0 7.0 Least developed countries 6.62 Less developed countries* 6.0 5.0 5.92 4.39 Developed countries 4.0 3.0 2.0 2.41 2.82 2.46 1.64 1.0 1.93 1.80 0 1950–1955 2005–2010 2045–2050 LIFE EXPECTANCY AT BIRTH 90 80 70 60 66.0 50 40 30 82.8 75.9 Least developed countries 77.1 67.7 68.5 Less developed countries* 55.9 Developed countries 41.7 36.4 20 10 0 1950–1955 2005–2010 2045–2050 *Excluding least developed countries. Source: United Nations Population Division, 2009. “Thailand today has a lower birth rate than Britain, and Vietnam has a lower rate than Sweden,” Harper says. Extremely rapid population growth made the 20th century the century of youth. Between 1901 and the new millennium, the population rose from 1.6 billion to just over 6 billion. With this trend flattening and then falling, and as the Baby Boomers born after the Second World War join the ranks of senior citizens, the world will look dramatically older in the coming decades. 8 SCA SHAPE 22012 A century ago, the number of people aged 65 and over was between 3 and 4 percent of the world’s population. Today they account for about 15 percent in developed countries, a figure that will climb to 25 percent by mid-century. The proportion of people 65 and older will be 35 percent in some rapidly graying countries in Europe, and 40 percent in Japan. This trend can be described as a triumph for human well-being, since it is not just fewer children that account for the change. The 20th century also saw a dra- matic increase in human lifespans. The number of years to which a person in the developed world can look forward at birth has almost doubled in the past 100 years. Life expectancy was somewhere between 30 and 40 from the Stone Age to the 19th century, largely because of high rates of infant and maternal mortality. Today women in Germany, Japan, Argentina and the US can look forward to living beyond 80 (men on average have shorter lives). No one knows exactly “The question for these countries is whether they will get old before they get rich.” where the outer limit lies when it comes to the length of human life. In research, considerable interest has been devoted to people who have turned 100 and to “supercentenarians,” who live beyond 110. Centenarians, once notable exceptions celebrated by kings and presidents, will become increasingly common by 2100. In many countries with large populations, there will be more than a million of them (see next page). That is obviously good news to people who can look forward to a longer life. For the world, it means a variety of challenges, especially in developing countries that follow trends in the developed world. In 2020, 70 percent of the world’s elderly will be living in developing countries. “The question for these countries is whether they will get old before they get rich,” notes the World Bank in a troubling report on development. Even though those with the fewest resources will have the hardest time, the rules of the game for centenarians are changing in a variety of areas. FOCUS: AN AGING WORLD FEATURE US 2073 A million centenarians BRAZIL 2100 The increase in population growth and especially life expectancy will turn 100th birthdays into everyday events. By 2100 there will be over a million centenarians in a number of countries. The figures on the map show what year the countries are expected to have one million centenarians. “GREY TSUNAMI” TURNS THE WORLD AROUND 1. SHRINKING ECONOMY An economic rule of thumb is that 20- to 40-year-olds are the ones driving economic growth when they acquire homes, have children and work their way up in their careers. Even if 60 were to become the new 40, it still remains to be seen whether changing consumption patterns can compensate for the shift. 2. THE END OF THE BUBBLES For decades, housing and stock markets have been driven by the arrival of new 10 SCA SHAPE 22012 and growing generations looking for homes and investments. Many researchers note that the combination of fewer young people and more old people, who are starting to collect their pensions and downsize their lifestyles, will cool the temperature considerably over time. 3. THE QUEST FOR HEALTH AND ETERNAL YOUTH The $64,000 question for the future is how the world will manage to keep these growing groups of older people healthy, vital and independent as long as possible. Yesterday’s No. 1 health problem – smoking – was tackled through sweeping lifestyle changes. Today the global obesity epidemic poses a similar threat. The focus will be on efficiency and global fairness when the demand for healthcare, pharmaceuticals and medical devices skyrockets. 4. THE TALENT WAR Even though the unemployment rate among youths today ranks high on the FEATURE 2069 CHINA JAPAN 2075 China is projected to be the world’s largest talent recruiter, drafting people from Latin America and Africa. INDIA 2084 SOURCE: UN POPUL ATION PROSPECTS, 2010 REVISION, THE ECONOMIST political agenda, it is less of a problem over the long term. Tomorrow’s young people will be in great demand when the labour shortage becomes a global dilemma. China, which is facing what analysts call a “gray tsunami,” is projected to be the world’s largest recruiter and after 2030 will probably import labour from Latin America and Africa on a large scale. 5. THE PENSION BOMB “If member states do not seriously try to disarm this pension time bomb, it will explode in the hands of our children and grandchildren, placing on them an impossible burden,” Joaquín Almunia, a former European Commissioner for Economic and Monetary Policy, said a few years before the debt crisis seized Europe’s economies by the throat. For decades, especially in Europe, elections have been won on the promise that people could retire by age 50. Politicians now have a tough job ahead backing down from these promises. 6. A NEW LIFE PLAN With people’s sights set on living beyond 100, their perspective on life changes. In many countries today, women have put off having children to an age that many women could only hope to see 200 years ago. The typical age at which people inherit from their parents may be postponed into their 80s. Meanwhile, the span of people’s active, productive years has lengthened steadily. The dream of early retirement will soon be out of reach for most people. SCA SHAPE 22012 11 FOCUS: AN AGING WORLD SCA has the knowledge and ambition to be a player in a market with an ever-growing elderly population. All due respect With a discerning focus on individual dignity and innovation, SCA benefits from an abundance of opportunities in this ever-aging world. 12 SCA SHAPE 22012 “The potential of TENA is huge.” Mansoor Parvaiz I N HUMAN HISTORY there have never been as many elderly people on our planet as there are today. In fact, the current global population of those 65 and older outnumbers the number of children in the world 5 to 1. Mansoor Parvaiz, vice president of incontinence care at SCA, says the demographic trend of a large aging population will have an economic, social and political impact on the world in the near future. “Political leaders in many developed countries already face incredibly difficult challenges today and will be forced to fi nd solutions for how to care for the growing number of elderly with limited resources in the future,” Parvaiz says. He notes that older people and their families will be an increasingly important force in politics. The elderly want to have a dignified life, he says, while at the same time healthcare must be cost efficient . SCA HAS THE knowledge and ambi- tion to be a player in a market with an ever-growing elderly population. In China SCA already has a program for professional family nursing. Another example is solutions for incontinence – one of the most common problems that older people face, and often a factor in the decision to move from one’s own home into institutional care. TENA is SCA’s brand for incontinence products and plays a key role in the work to develop increasingly innovative products and services. “The potential of TENA is huge, even in markets where we today have a high market share, due to low penetration of the category. In general terms you can say that the penetration of the potential market in developed countries is around 20 percent, and in developing countries below 5 percent,” Parvaiz says. But incontinence is a sensitive subject and still something of a taboo in most parts of the world. TENA is committed to building awareness and knowledge about the critical issue of management of incontinence with family members and healthcare professionals. “It mustn’t be shameful to ask for help or use incontinence products – just like any other medical condition, there are dignified solutions that exist to improve the quality of life,” Parvaiz says, pointing to a number of activities to decrease the shame factor. “TENA is working with breaking the taboo through media such as TV and print ads. We are also doing it through lobbying in the political arena and through events like GFI, the Global Forum on Incontinence, where experts from all over the globe participate to share their learning and knowledge. IF THERE IS A considerable amount of secrecy around women suffering from incontinence, it is a real taboo when it comes to men. Only about 20 percent of all men with incontinence problems use any of the products on the market for protection. Many are not even aware that there are products available. They try to solve the problem in other ways. When it comes to tomorrow’s elderly, who are going to be a lot more active and healthy, the right tone is needed – one far removed from a condescending pat on the head. “Today’s new seniors, the baby boomer generation, don’t see retirement as a slowdown phase,” says Liselotte Andersson, SCA’s global director of consumer and customer research and understanding. “On the contrary, most of them want to continue their socially stimulating life and fill it with meaningful experiences as long as their health allows. They want products that can make them maintain their ways of life.” SCA SHAPE 22012 13 FOCUS: AN AGING WORLD Old for a day A quick round-trip visit to old age: participants gave it a try when SCA arranged a workshop that included Dutch politicians. CLEAN HANDS FOR EVERYONE I felt extremely limited, awkward and clumsy,” says Jan van Ginneken, senior policy advisor at Ministry of health, welfare and sports in the Netherlands. “It was a real eyeopener for me. It’s good to be aware of the problems that older people face.” Together with participants from politics, the media and patient organizations, the minister had a chance for a few hours to experience what aging can feel like – weak vision, poor hearing and reduced mobility. The illusion was created using a special “aging suit.” The experience was arranged by TENA’s Public Service Department in the Netherlands. “We wanted to give workshop participants their first experience of what it feels like to be old,” explains Wilma Venes, who is in charge of the project, which was carried out at a nursing home in The Hague. THE PROJECT IS one of many examples of how SCA is actively working on social matters related to issues of aging. The TENA brand, which provides solutions for incontinence protection, is key in this context. “We have a dialogue with national governments in most of our markets about reimbursement issues involving incontinence protection,” says Benjamin Gannon, vice president of public affairs for SCA. “In many European countries, incontinence protection is classified as a pharmaceutical product, which entitles people to reimbursement through their insurance systems.” SCA is working on several levels, national as well as EU, to strengthen relations with politicians, government agencies and supranational organizations. “The goal is to be a serious partner on an issue that affects almost every country – the aging population,” Gannon says. “The driver is being able to provide more opportunities to live with dignity.” And perhaps the Dutch aging suits could be a step along the road to greater understanding of the condition of the growing numbers of older people. Simple, effective hand hygiene is a key to fighting infection in everything from childcare centers to nursing homes. Nonetheless, children, the elderly and people with weak hands often have difficulty washing their hands. That’s because a certain amount of strength is often needed to get soap out of a dispenser. So Tork has now developed a soap dispenser specially adapted for people without full strength in their hands, such as people with rheumatoid arthritis or children. The development work was carried out in partnership with Unicum, a knowledge center that helps companies and government authorities design products and services that are available to everyone. Product testing was conducted with the collaboration of the Swedish Rheumatism Association (SRA) and a group of people with reduced hand function. The test scale ranged from 1 (extremely difficult) to 9 (extremely easy). Grades for the new Tork were between 6.4 and 7. “We evaluated every aspect of the dispenser and found that it worked really well,” notes Lena Lorentzen, the founder of Unicum. “Anything over five is approved by the SRA, but a grade of six or more is very good.” The dispenser has received the SRA accreditation “Easy to use” and is ADA (Americans with Disabilities Act) compliant. “It was a real eye-opener for me. It’s good to be aware of the problems that older people face.” What does it feel like to be old? Do as the Dutch politicians did – try an aging suit. SCA SHAPE 22012 15 SCA INSIDE Good impact AS PART OF THE “Small Steps, Big Impact” recognition of Earth Day 2012, SCA continues its tradition of providing grants that encourage teachers and students to become involved in understanding and meeting the planet’s ecological challenges. This year SCA will award a total of 25,000 USD in Environmental Education Grants to schools where it has US manufacturing operations, including Alabama, Arizona, Kentucky, New York and Wisconsin. Complete care for tropical babies 1 TENA protective underwear is “Product of the Year 2012” in Germany. App for running NOSES PROBLEMS WITH HAY FEVER? Well, if you live in Ger- many, Austria or Switzerland you can download a pollen app on your smartphone. SCA’s tissue brand Tempo has a new app that forecasts exposure to pollen. The tool details pollen over a period of six days and sends a warning if unusually high amounts are expected. The app is a cooperation between Tempo and pharmaceutical company Novartis, the producer of Otriven nasal spray. A website run by the two companies, www. heuschnupfenhilfe.de, has information about hay fever. Consumers who suffer from hay fever or similar allergies can download an online tool to receive personalized pollen forecasts that help them prepare for running noses. 16 SCA SHAPE 22012 News from SCA IN A HOT AND HUMID CLIMATE, keeping a baby’s skin comfortable is an important concern. That’s why SCA’s diaper brand Drypers has recently launched baby care products in Malaysia, Thailand and Cambodia. Drypers offers complete care for babies, with a full range of baby diapers, as well as this new assortment of baby care toiletries that includes shampoo, head-to-toe wash, talcum and wipes. All liquid products are free from color additives. Drypers is the No.1 baby diaper brand in Malaysia and Singapore. CLIMATE FRIENDLY SAWMILL THE BOLLSTA SAWMILL in Bollstabruk, Sweden, has increased its capacity for the production of bioenergy, limiting its need of fossil fuels. The old boiler on site has been replaced by two new ones that use bark and other residue from the production of woodbased fuel products. Through this investment the use of oil at Bollsta sawmill has been reduced from 3,400 cubic metres per annum to practically zero. Following the tweets SINCE MAY LAST YEAR, SCA has an account on the online social networking service Twitter. Today SCA has 1,200 followers, such as business to business (B2B) customers, journalists, decision makers, young professionals and the general public, who keep track of what’s happening in the company on Twitter.com/SCAeveryday. On top of that SCA’s brands have another 16,000 followers. INTERFOREST TERMINALS Umeå >LRUV^[OLZLJYL[[VZ\JJLZZM\SSVNPZ[PJZ!@V\YNVVKZ OHUKSLKHUKKLSP]LYLK[V[OLYPNO[WSHJLH[[OLYPNO[[PTL HUKPU[OLYPNO[JVUKP[PVU;OH[PUJYLHZLZ[OL]HS\LVM `V\YWYVK\J[Z Sundsvall Lübeck WE SHARPEN YOUR COMPETITIVE EDGE INTERFOREST TERMINALS scatransforest.com info@scatransforest.com London Rotterdam SHAPE UP Paper head use of the gilded edges of worn out bibles, and later by 18th century ladies who made artistic use of lots of free time. Lisa Nilsson rolls the paper on almost anything small and cylindrical including pins, needles, dowels and drill bits. “I find quilling exquisitely satisfying for rendering the densely squished and lovely internal landscape of the human body in cross section”, Lisa Nilsson writes on her website www.lisanilssonart.com. PHOTO: JOHN POL AK Japanese mulberry paper and the gilded edges of old books. Together the tissue sculptures the fantastic landscape of an anatomical cross-section of the human head. By a technique of rolling and shaping narrow strips of paper called quilling artist Lisa Nilsson has put together a series of anatomical crosssection of the human body – all in paper. Quilling was first practiced by Renaissance nuns and monks who are said to have made artistic DID YOU KNOW THAT… 45 kg ONE TREE produces about 45 kg of toilet paper. Consumption of tissue per capita by world region: Kg/Capita 0 Source: United Nations Population Division, 2009. 18 SCA SHAPE 22012 Middle East China Eastern Europe Latin America Australasia 5 Japan 10 North America 15 Western Europe 20 Africa Huge potential for tissue companies. East Asia 25 Brown liquor provides sustainable electricity BROWN LIQUOR, a by-product from the manufacture of paper pulp, could become an important ingredient in environmentally sound batteries in the future. Scientists from University of Linköping, Sweden, have processed material from brown liquor with the abilility to store protons and electrons. The brown liquor is largely composed of lignin, a biological polymer in the plant cell walls. The team devised a thin film from a mixture of pyrrole and lignin used as a cathode in the battery. PHOTOS GETT YIMAGES, ISTOCKPHOTO GOTHENBURG GOES GREEN GOTHENBURG in Sweden aims to become the most sustain- able hotel city in the world. More than 80 percent of the hotels in Gothenburg are already environmentally certified. The initiative is part of the project Sustainable Gothenburg, whose goal is to provide transportation, hotels, meeting facilities and arenas with the most environmental solutions. Carbon research slows down deforestation THE UN LED collaborative programme on reducing emissions from deforestation (called REDD+) offers incentives for developing countries to reduce emissions from forested lands and invest in low-carbon paths to sustainable development. In order for REDD+ to work in practice, it’s important to develop efficient systems for measuring the carbon in the forests, something that’s being done by a team of Swed- SKIP HANDSHAKES British Olympic Association’s chief medical officer has advised British athletes to avoid shaking hands at this summer’s Olympic games. The reason is that unwelcome germs could cost Olympic gold medals. ish scientists investigating the forests in Sri Lanka. Their work shows that deforestation is responsible for nearly half of the greenhouse gas emissions that originate from human activity in Sri Lanka. The results are important for work to reduce deforestation of tropical countries, and for international negotiations in climate policy relating to a new Read more: climate agreement. www.un-redd.org Mahogany tree nursery in Brazil. Pollen key to new mahogany Growing new mahogany trees has proven a major challenge in the past. To better understand how a threatened species can be brought back from the brink of extinction, scientists from the University of Adelaide’s Environment Institute have studied the trees’ pollen. The extensive exploitation of mahogany forests has had a major impact on the diversity and availability of the trees’ pollen. This in turn limits the ability of individual trees to grow and provide crossfertilization and the seedlings become less competitive. To restore forests would require replanting key species and finding good-quality seeds from healthy trees. “72 percent of people suffering from incontinence keep it secret from their partner.” Source: Sinoba SCA SHAPE 22012 19 10 QUESTIONS Professor Grace Dorey is one of the world’s leading experts on incontinence. Her work on the subject has produced self-help manuals, down-to-earth cartoon books, countless lectures and, most recently, a prestigious award from Britain’s Queen Elizabeth. She took a few moments out of her hectic schedule to answer some questions from Shape. TEX T ESTHER SELSDON PHOTO PAUL TATE Grace Dorey at her cottage on an old farm near the town of Barnstaple in England. 20 SCA SHAPE 1 22012 CAN YOU HOLD, PLEASE? H ow did you get involved in the area of incontinence? “I was the physiotherapy manager at a Hospital in England and I volunteered to attend an incontinence training course in Bradford on behalf of my team because I was the oldest and had already experienced childbirth. I soon discovered that while there was some advice about pelvic floor exercises available to women, there was almost nothing available for men. This prompted me to gain a doctorate in male incontinence and erectile dysfunction, which rapidly led to a professorship in incontinence at the University of the West of England. I’m currently working as a consultant physiotherapist where I treat individual patients of both sexes as well as run regular workshops and study days.” SCA SHAPE 2 12012 21 “If only we could get an advertisement on TV that would let men and women know that they can get help.” Grace thinks that incontinence is a taboo subject because no help used to be available. Grace Dorey Title: Professor Grace Dorey, MBE, FCSP, PhD, consultant physiotherapist Age: Knocking on a bit Family: Daughter, son and two wonderful granddaughters Lives: In a 16th century cottage in Devon Education: MSc, male incontinence (University of East London). PhD, researching pelvic floor exercises for erectile dysfunction and post-micturition dribble 22 SCA SHAPE 22012 (University of West of England, Bristol) Claims to fame: Professorship in incontinence at the University of the West of England, a series of humorous self-help books, a host of prestigious awards and, in January 2012, an MBE (Member of the Order of the British Empire) from the Queen. Hobbies: Indoor tennis and walking a willful retriever named William. Why is incontinence such a taboo subject? “I think it used to be a taboo subject because no help was available. Nowadays men and women come forward for treatment because they know that specialist physiotherapy can help them. Consultants and doctors are conversant with the help that we can give, so they are happy to refer their patients to us.” Are people in the UK particularly embarrassed compared with other countries? “I think that people in the UK and also the Western world are not so embarrassed because they understand that they have a medical problem which can be helped with the right treatment and advice.” Are there any strategies that would work particularly well in breaking down the remaining taboos? “I have written six self-help books and two cartoon books which give advice in a down-toearth and often humorous way. They have funny titles like ‘Clench It or Drench It’ and ‘Use It or Lose It,’ which make people laugh, and each of my patients goes home with the relevant book for their problem. It’s very important to address each patient’s individual needs in a way that makes them feel comfortable and happy.” Do you have personal experience of the problem? “For a spell I suffered from urgency, which was cured by urge-suppression techniques.” How’s lecturing on the treatment of incontinence and sexual dysfunction? “I enjoy it. Each lecture is different, depending on the target audience, whether they are professionals or the general public, at home or abroad. I try to make my lectures entertaining with lots of diagrams and cartoons. This helps to dispel any potential embarrassment that may be felt when talking about delicate and often personal matters. I love it when the delegates giggle, as I feel they are listening and are on the same wavelength.” 10 QUESTIONS Grace’s home is full of intruiging details. What can you do to raise awareness and enhance solutions? “If only we could get an advertisement on TV that would let men and women know that they can get help from specialist continence physiotherapists. If only my self-help books were available from all leading stores....” What would you like the rest of us to do? “It would be wonderful to share a TV ad with an incontinence care company explaining that while pads help to protect men and women from the embarrassment and smell of urinary leakage, they cannot cure the problem. Additional help is available from specialist continence physiotherapists and continence nurse specialists. This help may be in the form of an assessment of each patient’s needs and a treatment plan for each individual which might include pelvic floor exercises, urge-suppression techniques, fluid and lifestyle advice.” How was it receiving an MBE from the Queen? It must be a party topic. Grace Dorey’s self-help books give practical advice in a down-to-earth and often humorous way. “I received a letter marked ‘On Her Majesty’s Service – Cabinet Office’ and thought that it looked like a large tax demand. When I tore open the envelope, I read that the Cabinet Secretary was recommending that Her Majesty ‘may be graciously pleased to approve her appointment as a Member of the Order of the British Empire (MBE) in the New Year 2012 Honours List.’ Naturally I replied by return that I was absolutely delighted to accept this prestigious honor and that I would accept it on behalf of all the physiotherapists who work tirelessly to improve the quality of life of their male and female patients in the field of incontinence. My son and daughter are very proud of their mum and are already planning new outfits for their invitation to Buckingham Palace . I’m also thrilled, of course, and have already bought my matching dress, jacket, shoes and hat!” Tell us your best incontinence joke. “Have you heard the one about the woman who rang the incontinence hotline and the receptionist asked, ‘Can you hold, please?’” SCA SHAPE 22012 23 MARKET MAGAZINES: The odder the better IPads and smartphones are creating a major shift in people’s reading habits. But even with the rise of digital media, worldwide sales of print magazines are holding their own. TEX T NANCY PICK PHOTO GETT Y IMAGES, ISTOCKPHOTO 24 SCA SHAPE 22012 FSC PAPER WANTED Sustainability is increasingly important to customers and the demand for FSC (Forest Stewardship Council) and PEFC (Programme for the Endorsement of Forest Certification) certified products has been steadily increasing. SCA is one of the world’s largest suppliers of FSC certified products and in 2011, the company’s sales of FSC-certified publication papers rose by 35 percent. T HE PRINT MAGAZINE landscape reveals a number of success stories, and there’s even a new lifestyle magazine poised to launch in 2012 for an elite audience – people with a net worth of at least 5 million US dollars. In the United States, 2011 saw the meteoric rise of Game Informer, a print magazine for video game fans. Paid circulation skyrocketed by an incredible 48 percent to more than 7 million subscribers, most of them youthful. The magazine, published out of Minneapolis, now ranks as fourth largest in the world. What’s number one? AARP The Magazine still wears the crown, targeting a somewhat more mature crowd, people aged 50 and up. Members of AARP, the organization for people in that age bracket, receive the magazine automatically, giving the publication an advantage over magazines that depend on ordinary subscriptions. At the close of 2011, circulation stood at some 22 million. THE WORLD’S third-largest magazine, Better Homes and Gardens, saw its circulation figures hold steady in 2011. The New Yorker had even more to cheer about, with its paid circulation rising 2.2 percent in the second half of 2011, to slightly over 1 million. Not far behind was GQ, whose circulation rose 4.5 percent during the same period, to just under 1 million. Another encouraging trend comes from China, where sales of women’s magazines have been rising sharply in recent years. Elle opened the door by launching a Chinese edition in 1988, and now more than a dozen international women’s magazines are published in Mandarin, including Vogue, Cosmopolitan and Marie Claire. Vogue China, launched in 2005, boasts a circulation of some 650,000 and has been a highly profitable venture. COSMOPOLITAN SELLS even more copies in China, with a circulation of some 1.2 million. The magazine’s cover bears two names, the word Cosmopolitan in English, along with the Chinese characters that mean “Trends Lady.” And Cosmo isn’t just popular in Beijing. The magazine now comes out in some 100 countries and 35 languages, including Turkish and Estonian. FIVE (VERY) NICHE MAGAZINES NEW WAYS TO READ Supplementing traditional reading avenues with technological alternatives is nothing new, but it is on the rise. More and more people are turning to their laptops, tablets and smartphones for their reading needs: $ This year Apple expects to sell more than 50 million iPads worldwide. $ In Europe’s major markets, 74 percent more people began reading news on their smartphones during 2011*. $ In the US, people are going multigadget. With 44 percent of adults now owning smartphones, a growing number read news on all their digital devices—computer, tablet and phone. $ Some 23 percent of US adults get news from at least two electronic sources. * Source: comScore, an Internet marketing researcher Although some general-interest print magazines have been struggling to keep their figures up, the sales of niche magazines remain robust. The following magazines target truly specialized readerships: GARDEN AND GUN For those who like shooting and eating. PAINKILLER For heavy metal music fans in China. MINIATURE DONKEY TALK For owners of donkeys, all sizes. BACON BUSTERS For pig hunters in Australia. MAKE For do-it-yourselfers with a high-tech twist. Miniature Donkey Talk Issue Numbe r 138 /Sep Jul/Aug 2010 The TALK of the donkey world Miniature Donkey Talk Page 1 What about sustainability? In recent years, magazines have trimmed down page dimensions, in part to be greener and conserve paper. Rolling Stone, the music magazine, had an oversized format for four decades. In 2008, the publishers decided to pare it down to the same standard size as other magazines, in order to fit display racks without being bent or folded. In 2009, the size of The New York Times Magazine was reduced by 9 percent to eliminate waste. As for that new upscale magazine, it’s called Du Jour. Slated to begin publication in the fall of 2012, the quarterly lifestyle magazine will be aimed at shoppers for ultra-posh goods in New York, Los Angeles, Chicago, Miami, Dallas, Las Vegas and San Francisco, where US sales of luxury products and services are concentrated. SCA SHAPE 22012 25 MARKET Common sense in luxury packaging TEXT ELISABET TAPIO-NEUWIRTH PHOTOS THOMAS MÜLLER Scandic Berlin Potsdamer Platz – a building full of ecological ideas. 26 SCA SHAPE 22012 Scandic Berlin Potsdamer Platz has no hotel star rating, but it does have beehives on its roof, self-service breakfast tables and staff clad in fair-trade jeans. T HIS SUPER-MODERN hotel in the Scandinavian style, in the heart of Berlin’s most vibrant shopping and tourist area, opened its doors on October 1, 2010, and is now the first in Germany to be awarded the EU Ecolabel, previously known as the EU flower. Scandic Berlin Potsdamer Platz was also built in compliance with the German organization DGNB’s requirements for certifying, promoting and rewarding sustainable construction. The organization places great emphasis on the life cycle of the building and ensuring that everything in the building – from floor to ceiling – is meticulously chosen with the environment in mind. “If someone decides one day to demolish the hotel or convert it into a residential apartment building, 80 percent of the carefully selected materials, such as glass, stone, real parquet flooring and bamboo flooring, can be reused and have a new life,” says Robert Schmiel, the hotel’s manager. He explains how the hotel is full of intelligent environmental solutions. One hundred percent renewable energy from Norwegian hydroelectric power stations is used along with district heating and cooling. UV light technology is used in the ventilation system to clean the exhaust air and then recycle it. All rooms are equipped with lowenergy bulbs and motion-detector lighting. “After a conference, it’s easy to forget to turn the lights off when you leave, but now it’s taken care of this way,” Schmiel says. “We care for the environment and save money at the same time – that’s usually the equation when you work environmentally. Ecological and economical go hand in hand.” 80 percent of the building’s materials, can be reused and have a new life.” THE HOTEL FACADE, sheathed in windows, has ROBERT SCHMIEL, hotel manager. integrated blinds that provide a uniform climate in all the rooms, designed for the four seasons. There are low-flow toilets, and the drinking water on offer is Berlin’s regular tap water, fi ltered one more time. If anyone wants sparkling water, the water can be carbonated right in the hotel, so people don’t need to buy bottled water. In the kitchen, energy-efficient induction ovens are used, and 120 different kinds of food items are served at the breakfast buffet, with at least a quarter of them organic. There is also an effort to Beehives on the hotel roof the breakfast buffet with honey. provide locally sourced food, and the honey that is served comes straight from three beehives set up on the hotel roof. “We put great effort into providing regional products and make sure they are delivered to us using the most environmentally efficient vehicles now on the market,” Schmiel says. “But the honey we serve at breakfast takes the prize – you can’t get more locally sourced than that.” Environmental thinking also extends beyond the hotel to a park where some of the hotel’s 100,000 bees collect nectar from horse chestnuts, linden trees and flowers in bloom. The honey is unique, with an exotic flavor of lychee, and whatever the guests don’t consume is sold in jars in the hotel shop. Tables are not set for breakfast – guests get their own plate, utensils and paper napkin and then serve themselves. That’s something the hotel’s younger guests are not opposed to, although the older generations may question the concept. MARKET TORK REDUCES PAPER CONSUMPTION SCANDIC BERLIN has scrutinized and negoti- “As with everything else at our hotel, we have made a conscious choice,” Schmiel says. “Tablecloths and napkins made of fabric have to be washed, so this way we care for the environment by reducing the amount of laundry, with all the detergent and water that would otherwise be used. Now we just need to wipe off the tables when the guests are finished.” The tea and coffee served are fair trade. “The cost of hot beverages is obviously a bit higher for us, but since we’re looking to contribute to a better world, that’s another choice we’ve made,” Schmiel says. “Our guests appreciate the gesture.” THE HOTEL GUESTS are mainly business travelers who think nothing of sorting their own waste and who appreciate the common-sense packaging offered by Germany’s most environmentally focused hotel in the form of accommodations, food and facilities for conferences and other events. The staff members are like the building they work in – eco-conscious and up to date on the smallest detail, ready to explain their way of thinking and answer all sorts of questions, such as why they wear jeans. “We’re modern and environmentally aware,” Schmiel says. “You won’t find materials like velvet, plush or copper, and we don’t have traditional hotel uniforms. Staff instead wear ecological, fair-trade Good Society brand jeans. We want to convey a feeling that what we offer is everyday, normal – something that we see is also catching on at hotels nearby. So we don’t talk about competing with other hotels either. Instead, we lead and inspire them to be environmentally aware. That feels good.” 28 SCA SHAPE 22012 Organic and local are key words, and breakfasts are served in a nontraditional way. “We don’t have traditional hotel uniforms. Staff instead wear ecological, fair-trade jeans.” ated with its suppliers down to the smallest detail. The EU Ecolabel has stringent requirements for compliance. When it came to choosing paper products for personal hygiene and cleaning, SCA and its Tork products won out. “We had our first preliminary talks in July 2010, and during the construction phase we supplied, among other things, toilet paper to the employee lavatories and paper towels to the staff rooms,” recalls Katrin Wenzel, manager for products and sales, SCA Hygiene Products GmbH. The selection has now been expanded to include boxes of facial tissues, paper towels and toilet paper from the Tork series in the hotel rooms. The restaurant offers dispenser and conventional napkins, and kitchen employees use Tork’s kitchen rolls. The reason the choice fell to Tork is that the products are effective and of high quality and have a smart dispenser design, which means less consumption of paper overall. “Another reason, naturally, is that some of the products are ecolabeled,” Wenzel adds. Ecolabeled tissue in the bathrooms. Cross-fertilization. The Mid-Sweden University Fibre Research Centre has quickly established itself in a world-class position in forest industry research. SCA is concentrating its resources and competence in the field in a new unit known as SCA R&D Centre. This research centre will support SCA Packaging as well as SCA Forest Products with advanced R&D. A skywalk builds a bridge linking shared office space, labs and other resources. This is unique cooperation between a company’s research and development undertakings and the academic world. Merging basic research with product and process development for mutual benefit. In this environment knowledge and competence will grow and new ideas sprout. SCA R&D Centre Box 716 SE-851 21 SUNDSVALL Telephone +46 60 19 38 00 www.sca.com MARKET 30 SCA SHAPE 22012 LATINOS CHALLENGE US marketers In the United States, more than 50 million people – one-sixth of the population – trace their origins to the Spanish-speaking countries of Latin America. As the country takes on an ever-stronger Latin flavor, marketers are rethinking their approach to communicating with this growing market. TEX T THETA PAVIS PHOTO GETT YIMAGES T HE UNITED STATES is often described as a melting pot of cultures, but these days it has an increasingly Latin flavor. According to the latest census figures, one in six Americans is now Hispanic. While the majority identify themselves as Mexican, the more than 50 million Hispanics living in the US are a diverse group with their own tastes and cultural differences. The catch is that while this is a large segment of the population, it’s varied. So what works when marketing to a Mexican mom, for example, may not be effective when trying to engage a newlywed man from Puerto Rico or a single woman from Ecuador. “Corporations are now realizing that they must incorporate Hispanic cultural values into their products, services and communications,” says Dr. Felipe Korzenny, director of the Center for Hispanic Marketing SCA SHAPE 22012 31 MARKET Communication at Florida State University and co-author of the book Hispanic Marketing: Connecting with the New Latino Consumer. It’s a trend that can only continue: Hispanics are the fastest-growing demographic in the country, and experts predict that by 2050 they’ll account for 30 percent of the US population. The buying power of Hispanics is also expected to rise. In 2010 it was estimated at US $1 trillion, and by 2015 it could hit US $1.5 trillion – more than 10 percent of the nation’s total buying power. The Pew Hispanic Center, a nonprofit research group in Washington, DC, says that while nearly two-thirds of Hispanics in the US identify as Mexican, “nine of the other ten largest Hispanic origin groups – Puerto Rican, Cuban, Salvadoran, Dominican, Guatemalan, Colombian, Honduran, Ecuadorian and Peruvian – account for about 32 SCA SHAPE 22012 Corporations are now realizing that they must incorporate Hispanic cultural values into their products, services and communications.” Dr. Felipe Korzenny, director of the Center for Hispanic Marketing Communication at Florida State University. a quarter of the US Hispanic population.” These groups differ widely in such areas as language skills and the percentage of those who are foreign nationals versus US citizens, whether by birth or naturalization. To tap Hispanic consumers, many marketers assume their outreach needs to be done in Spanish. However, Korzenny points out that many Hispanics speak English well – especially the US-born children of immigrants, who are fueling the increase in the population. “Some companies have started to advertise on both Spanish and English TV, but the biggest crossover comes from actual exposure to products and brands that Americans didn’t know about before,” he says. When Americans see products they aren’t familiar with, companies may be able to capture those consumers as well. One example is Coca- FEATURE “Using cultural insights to connect with Hispanics may be even more important than language.” Felipe Korzenny Cola imported from Mexico, which uses sugarcane instead of the synthetic fructose used to sweeten American-manufactured Coke. The Mexican-imported Cola, says Korzenny, has become popular with a cross section of Americans who prefer its taste. On the other hand, “Using cultural insights to connect with Hispanics may be even more important than language,” says Korzenny, who himself came to the US from Mexico City. Some may identify with Latino culture even if they speak no Spanish. Hispanics are the fastest growing demographic in the US and they bring their brand preferences to their new country. SO HOW DO YOU factor in cultural differences? Korzenny stresses that there are no absolutes, and in many cases marketers need to look for nuances or tendencies. He cites the case of Nature Valley, a brand of protein and granola bars. The company ran two difference campaigns in the US for their protein bars – one for Hispanics and one for nonHispanics. The different approaches were warranted, he says, since Hispanics “are more inclined to see nature as something they’re in harmony with, whereas Anglo-Saxons see it as something they need to control and dominate.” Another area of cultural significance is taboos. In the case of feminine care products, for example, Korzenny points out that many Spanish-speaking Catholic women tend to believe that trying to control the natural course of your bodily functions is wrong. “Some Hispanics are very skittish, for example, about using tampons,” he says. Gisela Girard, president of Creative Civilization, a leading Hispanic advertising agency in Texas, agrees, but like Korzenny she says marketers need to be aware of how taboos are changing. Girard says when she was growing up her Latino mother thought – as did many of her peers – that “if you used a tampon you were probably not a virgin.” Girard, says that’s changed, and most Hispanic girls today consider tampons convenient and easy to use. Hispanic women often trust endorsements, especially those from celebrities. “They are generally open minded to new products if there are some testimonials or word of mouth that this brand is better than another brand,” Girard says. ESTABLISHED BRANDS HIT NEW MARKETS HISPANIC IMMIGRANTS bring their brand prefer- ences to their new country. This gives companies an opening to introduce brands into new markets. The SCA brand Saba has been making feminine care products for more than 30 years. While it’s a leading brand in Mexico and Central America, it will soon be available for the first time at select stores in the United States. “We’re launching a line of feminine protection pads with a chamomile scent,” says Lauren Entrekin, Brand Director for Saba in the US. “We know that Mexican women prefer an emotional, feminine approach to marketing and packaging. We are using the same promotional materials as those used in Mexico to ensure consumers immediately recognize and respond to this strong brand.” Bruno Zepeda, Vice President of Sales and Marketing for SCA Personal Care, North America, adds, “We will focus in selected cities of the southwestern US where there is a high concentration of target consumers with Mexican heritage. Our research shows that Saba already has brand awareness with our target consumers. This. coupled with brand activation of traditional and social media and event marketing, sets the stage for a successful expansion of this brand into the US.” Sales in 2011 for SCA in the United States totaled USD 1.3bn. SCA’s brand lineup in the United States currently includes the TENA line of incontinence care products and Tork brand napkins, paper towels, bath tissue and wipes. TV personality Bárbara Mori is a Mexican icon and well known among Mexican-American women. In the ads, she gives women a clear call to action: “Give Saba just one of your days.” SCA SHAPE 22012 33 TECHNOLOGY PRINTING A PRINTED ELECTRONICS may sound futuristic, but Imagine a paper ribbon around a tree that sends alerts in case of a forest fire. Or picture a sound system hidden in your wallpaper, activated by your music device when you move into the room. Printed electronics create numerous opportunities for mass production at low cost. TEXT SUSANNA LINDGREN ILLUSTRATION LADISLAV KOSA 34 SCA SHAPE 22012 in fact they’re already available. The technique is used on smart packaging, such as in displays or for dating goods. Printed batteries or antennas for wireless communication between a label and a reader are also in production. Now, even more advanced products are under development. The ability to print electronic devices in large quantities straight onto paper or other material has created huge research interest. One big challenge is to reach the quality standards required for a largescale printed electronics process. “By printing circuit boards or other electronic components, you get several interesting electronic functions that quickly can be applied to large surfaces,” says Hans-Erik Nilsson, a professor of electronic design at the Mid Sweden University in Sundsvall. “This is an easy way to create functionality and also to create possibilities for large surfaces to provide interaction and communication through electronic devices.” NEW WORLD Printing of electronic media, such as electrical conductors and semiconductors, is made possible by electronic ink using functional polymers and nanoparticles. The ink can be applied to substrates like paper through a standard printing process, via an inkjet printer or a printing press. Nilsson sees several possibilities for the technique. Printed electronics may make a picture talk after you touch it with your finger. A seamless machine-to-machine interaction with the wireless devices in your home may turn on hidden speakers printed on the wall. A forest fire could activate a radio-communicating sensor assembled using printed components and placed in a tree, as high temperatures make the tiny radio transmit warning signals. “This particular example of printed electronics in a forest fire sensor alarm system has already been demonstrated and has attracted huge interest from countries such as Greece, Austria and the United States that want to protect old forests with a high cultural value,” Nilsson says. Printed speakers have also been tested, but so far it has not been possible to print every electronic component. “We need a super magnet connected to our solution, but one that is thin and flexible,” Nilsson says. “It’s the paper itself that works as a membrane. The trick is to print in a special pattern and to limit the losses to make the circuit stay intact. High losses generate heat that can create local damage to both circuit and paper.” Other areas where printed electronics are on the verge of a breakthrough are smart packaging and personal care products. “Packaging is growing in importance in the field of marketing and media,” Nilsson says. “The packaging doesn’t merely have to protect. It can also activate an event and start a communication.” Take the purchase of a new tool, such as a machine saw. The packaging can pinpoint the location of the purchase and inform the customer SCA SHAPE 22012 35 TECHNOLOGY Time to change? Soon the diaper might tell you. PRINTED ELECTRONICS of other offers available nearby, such as at a local building supplier. Smart packaging could also have an impact on the logistics chain. Printed electronics incorporated in the box could store information regarding temperature during transport or guarantee that the product is genuine, or that the box is unopened and hasn’t been tampered with. “Theft tags are today most commonly applied to the packaging at a later stage, but there is at present an application for theft tags to be printed directly on the packaging,” Nilsson says. Small electronic units communicating over a large area can also be used in personal care products or in hospital care, such as moisture detectors in incontinence care or bed sheets. “Comfort is essential in this area,” Nilsson says. “The sensors must not be felt or seen but still be able to sense a large area. Different applications, like detecting small or large amounts of moisture depending on usage, have been tested. The challenge is to upgrade to a large-scale production to make it financially viable.” 36 SCA SHAPE 22012 PRINTED ELECTRONICS is a term that describes various methods of depositing electronic inks that create active or passive devices on various substrates, such as paper. The technological platform consists of components such as conductors, resistors, transistors, batteries, antennas or push buttons that can be printed on next-generation packaging or paper displays. The printing can be done through most commonly used printing methods. Compared with conventional electronics, this approach allows cheaper mass production at lower cost. The technique also has great potential for environmentally sound production. The challenge is to upgrade to a largescale production to make it financially viable. PAPER FOUR PAPER FOUR is a science project of the Fiber Science and Communication Network at Mid Sweden University in Sundsvall. By combining paper with printed graphic codes and electronically conductive ink, the team has created “talking paper” that delivers messages through printed speakers. This project is partly funded by SCA. Read more at http://mkv.itm.miun.se/ projekt/paperfour/ www.sca-tork.com Smarter handling saves time, money and improves ergonomics. Choose the easy way to handle boxes and bags Cleaning crews spend a lot of time carrying and handling boxes and bags. To make their job easier and free time for other tasks, Tork® has developed Tork Easy Handling™. Here are some of the smart solutions: & Smart one-hand-grip – you can lift and carry a box and still have one hand free, or carry two boxes at a time. & Quick opening – no tools are needed to open our packs. & Easy disposal – carry away up to ten flattened boxes at a time. Tork Easy Handling™ – the easy way to improve your business. Talk to your distributor or read more at www.sca-tork.com. Off to work at 8 am. Thank goodness for a reverse commute from Milan to Legnano, and for SCA’s flexible hours. 1 12 HOURS with Silvia Schirinzi “La passione di assistere” (The passion to assist) is more than just a slogan at SCA Italy. It is also a description of Silvia Schirinzi, who is responsible for promoting sales to institutions. On a typical day bracketed by meetings, Schirinzi’s passion for her work never flags, even though she is eight months pregnant. TEX T CL AUDIA FLISI PHOTO MAURIZIO CAMAGNA S ILVIA SCHIRINZI MANAGES INSTITUTIONAL sales promotion for the TENA brand. She is part of the sales support team, working with account managers who handle the commercial aspects of business, and with nurse advisers who provide technical support. The contest “La passione di assistere” is a sales support program aimed at SCA’s client base of nursing homes, hospitals and public health centers. It is one of many initiatives that Schirinzi juggles in the course of an average day. She lives in Milan, where she was born, grew up and attended university. As a child, she studied languages, rode horses and dreamed about traveling and becoming a journalist. Her current responsibilities are more varied than those of a journalist. She works on new business proposals, writes marketing materials, manages advertising campaigns, chooses promotional items, works with suppliers and printers, and maintains contact with universities for research projects, some of which become books. Up to bid goodbye to her partner Manuel Macrì, who has a longer commute to work. Leaves home in Milan. 1. Arrives at the SCA office in Legnano; has coffee with Lucia Tagliaferri, SCA marketing director region south, and Alessandro Nigro, logistics operator. 7 AM 8 AM 8:30 AM 38 SCA SHAPE 22012 2. Checks morning mail and meets with Mailyn Seyoum, account manager, to discuss a competitor’s diaper product. 3. A five-hour meeting with nurse advisers from northern and central Italy. 9 AM 10 AM – 3 PM 12 HOURS Along with Mailyn Seyoum, account manager, Silvia inspects a competitor’s diaper product. Good practice for Silvia. Silvia Schirinzi Age: 33 Title: Manager, institutional sales promotion Born: Milan, Italy Lives: Milan, Italy Family: First son expected at the end of May 2012 Interests: Travel, food, films Personal passion: Loves tattoos and has four, will add a fi fth to honor the birth of her son Favorite food: Spaghetti alla carbonara, with risotto Milanese second Best-loved gelato: Stracciatella (cream with chocolate streaks) Taste in cinema: The Rocky Horror Picture Show is one of her alltime favorites 2 3 Making a point to the nurse advisers about the training video being discussed. 4 Lunch is part of today’s meeting; usually Silvia eats in the SCA canteen. Meeting ends and Silvia works with Manuela Grassi, a sales support assistant who will take her place while she is on maternity leave. Works on the content of a new project tender. These tenders, up to 50 pages long, constitute an important part of new business development. Leaves for home. Because of today’s meeting and inclement weather, the commute takes longer than usual. 4. Greets Manuel at the door. 12:30 PM 3 PM 4 PM 6 PM 7 PM SCA SHAPE 22012 39 ECONOMY Upbeat AGM after SCA’s shareholders had every reason to feel happy at this year’s Annual General Meeting. Recent major corporate transactions had made the stock price rise by 25 percent since the bid for GeorgiaPacific’s European tissue operations was announced in November. TWO NEW BOARD MEMBERS The AGM elected two new board members, Louise Julian and Bert Nordberg. Sören Gyll, who declined re-election due to age reasons, was thanked for his 15 years of service in the board. TEX T MALIN HALL ARE PHOTO SCA A PPROXIMATELY 300 shareholders gathered for the AGM in central Stockholm in March. Chairman Sverker Martin-Löf devoted a large part of his speech to the acquisition of Georgia-Pacific’s European tissue operations and the sale of SCA’s packaging operations (valued at SEK 15.3 billion or EUR 1.7 billion), which he described as milestones in the history of SCA. “The transactions provide strong synergies, strengthen the European operations and provide enhanced development opportunities in emerging markets, while maintaining financial flexibility,” said Sverker Martin-Löf. CEO JAN JOHANSSON stated that 2011 was the fourth consecutive year that was marked by crisis, but he saw hope in the future. “It is important to complete the acquisition and integration of Georgia-Pacific and the sale of our packaging operations as it is equally important that we reduce costs and continue with further efficiency measures and innovation,” he said. “With that, I feel confident that we are well positioned for continued value creation at SCA.” There is rising demand for hygiene products as a result of increased disposable income in emerging markets and an aging population. SCA’s acquisitions of hygiene operations in Turkey and Brazil further strengthen the Group’s position in emerging markets. An agreement has also been signed to acquire the Taiwanese-Chinese personal care company Everbeauty. Today SCA is the third-largest player in the world in the hygiene market, but including the acquisitions it will become the second largest. 40 SCA SHAPE 22012 WITH A STRONG KNOWLEDGE OF THE CONSUMER What can you cont ribute to SCA’s board? “As CEO of EF Education First, I managed and developed global operations, and I hope this experience can be of use in my board duties. Above all, I have knowledge and experience about what consumers think, where they are, what they do and when they make decisions about purchases. I also know a bit about SCA’s new markets in Asia and Latin America. I spent a lot of time in Asia when I was growing up.” What are SCA’s greatest challenges over the coming years? “I need a little time to immerse myself in SCA’s operations and will probably wait to say something until I understand more. There are many tough competitors, and I hope SCA will continue to be as bold and strategic as before when it comes to entering new markets.” Why is SCA an excit ing company to be a board member of? “I appreciate that it’s a Swedish company with a long history and strong values, and that is has done so well in the tough global market. SCA has good products and is right now in a very exciting and demanding phase, where the aim is to increase the focus on consumer operations.” an eventful 2011 Louise Julian Born: 1958 Education: Master’s degree in business and economics Previous experience: For 24 years, Louise Julian served in management positions at EF Education First, the last eight as CEO. Since 2010 she has been a consultant and adviser, mainly in structural and cultural development, productivity, processes and efficiency. Family: Three children and her partner Carl-Henric Svanberg. Interests: In addition to her job, spending time outdoors, hiking, sailing, skiing, family and children Unexpected talent: Sewing, although there’s been less of that in recent years. Bert Nordberg Born: 1956 Education: Electrical engineering, studied management and economics at the European Institute of Business Administration (INSEAD) Previous experience: Bert Nordberg has held management positions in the Ericsson group since 1996. Today he is president and CEO of Sony Mobile Communication, previously called Sony Ericsson. SCA SHAPE 22012 41 SCA INSIDE INCONTINENCE MEETING IN DENMARK THE FOURTH GLOBAL FORUM on Incontinence (GFI) was held in Copenhagen in April. This year the theme was “Strategies Through Life – An Integrated Approach to Incontinence Care.” By taking the perspective of a single lifetime, the forum illustrated how incontinence affects individuals, families and society. The GFI was established by SCA in 2006 as a platform for learning about and debating incontinence issues. News from SCA Small plants – big advantages BY PLANTING smaller tree seed- lings – half the size of their predecessors – SCA minimizes its environmental impact and speeds up planting. Transportation becomes more cost-efficient, and the people who plant the smaller seedlings can carry more plants with them. SCA grows 100 million spruce, pine and contorta pine seedlings each year. About onethird of these seedlings are planted in SCA’s own forests, while the remaining plants are sold to other forest owners. Read more: www.gfiforum.com Sanitary pads with green tea CONSUMER RESEARCH DID YOU KNOW… MORE THAN ONE in SCA’s forests are left to die of natural causes. Dead wood are a natural habitat for insects, wood fungi and even owls. 42 SCA SHAPE 22012 shows that menstrual odor is a key concern among young women, particularly during heavy flow periods. To address this, Libresse has launched a new range of sanitary pads and liners in Malaysia with an odor control feature and a refreshing green tea scent. “There is a largely unmet consumer need for feminine care products that can offer women a scented odor-control benefit,” says Christine Kok at SCA. The Libresse PureFresh Green Tea Odor Control feature is designed to effectively capture and block menstrual odor, for a fresher feeling during periods. SCA INSIDE PHOTOS SCA, ISTOCKPHOTO SCA stays with sustainable friends SCA CONTINUES to be listed in the global sustainability index FTSE4Good; this is the company’s 12th consecutive year. SCA received 99 points out of a possible 100 in FTSE4Good’s rating system for index inclusion. Read more about SCA’s sustainability work at www.sca.com/sustainability. Employees plant poplars in Inner Mongolia SCA HAS DONATED 2,000 trees in order to combat climate change and restore the ecological environment in northern China’s Inner Mongolia region. For the Million Tree Project, SCA put together a team of employees to plant poplars in the city of Kulun Qi. On the trip, five SCA employees participated in a group of 60 people planting about 600 poplars in one day. The Million Tree Project is an initiative of the Shanghai Roots & Shoots NGO that aims to plant 1 million trees in Inner Mongolia by 2014 to help stop desertification and offset China’s greenhouse emissions. The land has been reforested with poplars, pines and yellowhorn, species that are particularly effective in fighting desertification and sequestering carbon. Read more: www.mtpchina.org. Libero rules in diaper test LIBERO’S NEW THIN Comfort diaper came out as No. 1 in a recent independent test of 10 different baby diapers in a Swedish publication. The baby diaper study was initiated by the Swedish independent test and research company Testfakta. ETHICAL ROLE MODEL SCA HAS ONCE AGAIN been named one of the world’s most ethical companies by the American Ethisphere Institute. The institute recognizes companies that demonstrate how business ethics are decisive for a company’s brand and profitability. Every year the competition intensifies for Ethisphere’s ranking, and the record number of companies nominated for 2012 was no exception. Ethisphere evaluated several thousand companies from more than 40 industries. The list of nominees for 2012 included 145 companies that outperform their peer competitors in ethical business practices. We are raising the bar! In recognition of the importance of sustainability excellence for the success of our business we are raising the bar with a number of new sustainability ambitions and targets. Read more on how we create value for people and nature on www.sca.com/sustainability www.sca.com $SFBUJOēąBMVđøPĞ ĀFPQMđBOĐÿBUVSđ