Compostable cutlery at packaging’s cutting edge
Seeing that, long term, the writing is on the wall for the use of oil-based plastic products, the Cork distributor set up a new section last year called Down 2 Earth Materials.
This has secured the sole distribution rights in Ireland for a range of compostable food packaging produced by Scottish company Vegware which has simultaneously launched the products in both Britain and US.
Targeting the fast food industry, coffee shops, deli counters and caterers at large events, Down 2 Earth Materials now offers a complete range of disposable food packaging.
“An oil-based plastic fork can take hundreds of years to degrade, but the raw materials in our cutlery are grown in a season and will biodegrade in 180 days,’’ reveals Southern Tapes & Packaging MD Tony Lee.
The company began selling compostable food packaging last year and its customers now include Ballymaloe House, Cully & Sully, Idaho Cafe in Cork and some country markets.
“We sold food packaging to the Electric Picnic concert this year and last year, to the Irish Derby at the Curragh and are now talking with the organisers of Slane,’’ said Mr Lee.
The latest addition to the range this month has been cutlery, a coffee cup with a lid and a soup container which have all been certified as compostable.
This type of packaging currently costs 20% more than conventional oil-based disposable packaging, so it is a difficult product to sell in the current climate. However, Mr Lee believes that it is something which will take off in time. “This is the future of disposable packaging.”
Moving into the area of eco-friendly food packaging has been a complete new departure for Southern Tapes and Packaging which started in the early 1980s selling self-adhesive tape to local industries.
Mr Lee co-founded the company, sold it six years later but bought it back in 1997 and grew the turnover over the next ten years from €700,000 to €4 million by increasing its product range and its customer base.
“We now provide all types of packaging including stretch film, custom printed tapes, protective packaging and bags and bubble wraps ‘’ he says, explaining that one of the main parts of the business is supplying specialised stretch wrapping systems which include machinery and plastic wrap.
Customers are mostly based in the Munster area and include Pepsi, Dulux, Golden Vale and AIBP, Carbery Milk Products, Barry’s Tea, Pennys, as well as Primark in Britain which is one of a small number of clients outside of Ireland.
The onset of the recession has caused difficulties, but not according to Mr Lee, insurmountable ones.
“Turnover dropped by 10% to €3.4m in 2009, but in 2010 it was back up €3.7m — our margins were down but our sales were up,’’ he added.
Pressure to reduce packaging for environmental reasons, has brought significant changes to the industry in recent years.
“We are now offering hi-tech stretch wrapping systems which use only a fraction of the amount of wrapping which was used in the past,” he said
In the current economic climate, Mr Lee says that the selling point for the stretch wrapping systems include the fact that customers can cut costs by using less material and also improve their environmental performance.
As a sign of the times he says that orders from customers are now smaller than they used to be.
To grow the business in these difficult times he says has involved the staff working harder and selling a larger variety of products to existing customers.
Although the sale of compostable food packaging now makes up only a tiny percentage of the company’s business Mr Lee is excited about the venture and believes it will lead to significant growth in the future.
In the long term, he says legislation will stop fast food chains and deli sections in large retailers from using oil based packaging and this will offer Down 2 Earth a significant opportunity. Future plans may include an acquisition of a company in Britain.
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