By: Asif Ali Sukanya Bora Josekutty Sahel Anwar Background Introduction Insights Analysis Problems Solutions/Recommendations Founded in Lund, Sweden in 1951 by Dr. Ruben Rausing. World’s leading food packaging and processing company. By April, 2016 it operated in more than 175 countries; employed more than 23,600 people. Also, provided filling machines, processing equipments, distribution equipments and service products to business customers in the food industry. Effectively and efficiently used raw materials applying Aseptic Technology (made the food safe). China was its largest market. Growth, Innovation, Environment and Performance (Strategy) Member of United Nations Global Impact Cooperated with WWF and Forest Stewardship Council on issues like climate change and sustainable forestry management. Brought UHT technology to China. This made it possible to distribute the milk from the major modern production provinces to the southern consuming provinces. It expanded rapidly because of UHT milk. 4 packaging plants in 2016 : Beijing, Foshan, Kunshan, Hohhot. Their carton packages had environmental advantages (higher storage volume, easier to pack, transport and store, protected food for a longer period) Applied various innovative strategies to increase the recycling rate. First was the recycling capacity: They helped their recycle partners to expand without expecting financial returns. Second: They helped them create the collection network. Third: They helped to enhance the value of enhanced products. Fourth : Increase the public awareness Three drivers for recycling practices. • Tetra Pak’s social responsibility. • Risk Management. • Enhance the products competitiveness in comparison to other packaging formats. Took approx. 10 years (1998-2008). Advanced recycling technologies used in developing countries were not applicable in China, so the small team needed to find a solution for China. Adopted 4 steps to establish the recycling chain: 1. Scanning the recycling market 2. Building awareness and selecting partners 3. Creating recycling capacity 4. Securing the recycling capacity. Problems for Tetra Pak are divided into three categories: 1. Milk Safety: Milk procedures suffered with contamination issues. Significantly impacts Tetra Pak, but Tetra Pak has no control. 2. Competition: Substitute product for fresh milk bringing UHT. New entrants into aseptic packaging market, Tetra Pak losing competitive edge. 3. Recycling: Negative perception of Tetra Pak package recyclability. Also lack of infrastructure, equipments were a serious issue for extensive recycling process. For Milk Safety: They should have offered quality control test solution to prevent contamination of the milk For Competition: Tetra Pak should go for innovative packaging because of many competitors in the market. They also need to undergo product diversification. Explore expansion of milk process or customer base. For Recycling: As there are negative perceptions, lack of infrastructure, equipment of Tetra Pak recycling process so they have to work on defragment recycling supply chain. Also there is risk of change in government recycling policy they have to enhance their relationship with the government.
