Introduction
According to the Distilled Spirits Council of the United States, spirits have increased their market share by 2% over the past year and became a $19 billion industry. Of that market share, whisky is the most popular spirit, encompassing 31% of market value. This makes whisky production an important industry to study in the context of sustainability due to its economic weight alone. The impact of whisky production on the environment varies greatly depending on geographical production location and distillery size. But most aspects of production are far from sustainable. A more sustainable approach to packaging could greatly reduce the whisky industry’s impact on the environment.
An impact which is currently exacerbating environmental issues such as climate change and resource depletion. As the world becomes increasingly aware of environmental issues and the impacts of consumerism, companies are looking towards sustainable packaging materials and methods. With whisky packaging traditionally being very wasteful and damaging to the environment, there is great potential for improvement in this area. This study seeks to identify opportunities for increasing sustainability in whisky packaging and makes a case for the implementation of these opportunities using eco-design methods.
Growing demand for eco-friendly solutions
There has been increasing discussion in recent years about the climate and environmental impact of packaging, including closures for whisky bottles. NGOs specifically looking to move this topic up the political and corporate agenda have taken various routes. The Climate Change Lobby has been set up in the Scottish Parliament, and in California, StopWaste.Org’s mission is to reduce the overall impact of packaging on the environment. Furthermore, various reports have been published, providing eye-opening analysis on the environmental figures of packaging. For example, a US study into the carbon footprint of a PET bottle showed it to be the same as an aluminium can. The UK Government’s Foresight report on Global Food and Farming Futures states that climate change will dramatically alter growing conditions for crops, and food and alcohol production is expected to become increasingly expensive due to higher agricultural input costs as a result of rising oil prices – both direct concerns for distillers.
Although few studies make specific mention of the spirits industry, it is clear that the growing evidence and activity in this field will at some stage start to impact the packaging choices of spirits producers. The media has also played its part in influencing consumer perception on environmental issues, and as a result, the general public is becoming increasingly aware of the environmental effects of packaging – often referred to as the ‘carbon footprint’. This is similarly true of eco-friendly packaging, where increasing public interest has driven a noticeable shift in the packaging market. However, in terms of eco-friendly closures, appropriate solutions are difficult to find. While screw caps are considered to be more eco-friendly than cork due to lower bottle spoilage rates, there is little evidence to support this and the gap between the ‘greenness’ of various closure systems is vast.
Purpose of the study
The purpose of this study is to evaluate the current situation in the whisky packaging industry, to identify potential sustainability problems, and then to investigate why the companies should make the transition to more eco-friendly packaging solutions. It aims to provide a comprehensive guide on sustainable packaging that can be utilized by both large and small whisky companies. The primary objective is to highlight the various sustainable alternatives that are available, and then to propose that a new packaging format for Scotch Whisky should be devised that incorporates a blend of tradition with a more sustainable approach. This will provide a competitive packaging solution for the future, allowing the whisky industry to progress while still upholding an eco-friendly ethos. Progressing on from this, an investigation is made into what eco-friendly means to today’s consumers and whether it influences their purchasing decisions. This is an important area to consider as it may influence the future direction of the whisky industry’s packaging choices. Scaling down and focusing more on an individual company, the research attempts to quantify what the potential economic and environmental savings could be if a company makes the transition to eco-friendly packaging. By utilizing specific data from a case study company, it will help to make a more precise evaluation on the task in hand, presenting the company with a more defined idea of whether the transition could be beneficial to them. This is then followed up with an investigation into feasible strategies for a company to transition to more sustainable practices in the current economic climate.
Eco-Friendly Packaging Materials
Recyclable materials will encourage the customer to recycle the packaging or can be collected by the company to be used again. Materials made from recycled resources are, of course, more sustainable, and using materials that can be reprocessed into the same product will close the recycling loop and reduce the amount of new material that needs to be used. However, the quality of these materials is not always as high as that of the virgin grade, and they will often be more expensive. It is therefore more economic to use materials that can be used again, either for the same application or something different. By using materials from the same waste stream, the environmental impact will be less than downcycling into another product. High-density polyethylene can be used for boxes and cartons, and products such as reusable air cushions are an effective protective packaging solution. Although a little more customization to the production process may be required, the cost of labor is generally the most significant expense in comparison to non-recyclable materials. A financial analysis can help to show at what point the higher cost of material will break even by reducing the amount of material used and therefore the weight and associated costs of transportation.
Biodegradable materials are made from renewable resources and will break down under the right conditions to harmless compounds. They are a good solution for customers who are looking to reduce their environmental impact, as they will not need to separate the packaging material for recycling and can dispose of it guilt-free. The downside to biodegradable materials is that often the conditions in landfill are not suitable for degradation, as they require sunlight, water, and oxygen to break down. However, recent reports have shown that due to compaction in landfill sites, air is trapped and the anaerobic conditions have preserved materials in a similar condition to when they were buried. Some modern biodegradable materials are able to break down in these conditions, producing methane in the process but reducing greenhouse gases in the longer term. Other types of material have been developed that are able to break down in anaerobic conditions without producing methane and are a more expensive solution for very environmentally conscious customers.
A variety of eco-friendly materials are available for packaging solutions. While they are generally more expensive than foam or bubble wrap, the price is continuing to fall as the market for them increases. Some are more suited to internal packaging, whereas others can be used for the outer box. Two main types of material can be considered, biodegradable or recyclable.
Biodegradable options
Full lifecycle assessments of the latest materials should be part of a continual development strategy for a brand, with constant monitoring of material advances in order to switch to a fully biodegradable system at the most cost-effective opportunity.
As it stands, for a packaging system to be considered truly sustainable it must: a) minimize the depletion of natural resources and energy, b) create minimum damage to ecosystems, c) leave a minimum amount of waste materials, and d) cause as little change to the biosphere as possible. Fully biodegradable packaging systems can adhere to these criteria as the packaging will eventually break down into natural elements, however, until cost-effective options are available, it is more likely that short-term strategy improvements will be made with traditional materials or development of recyclable systems.
In general, the biodegradation of plastic to mitigate waste accumulation in natural environments and landfill is an appealing idea, however, the complexity of modern packaging systems can make full lifecycle assessment of different biodegradable materials a very difficult task. The continual development in environmental standards is an indication that biodegradable and compostable packaging will become more favorable in the future.
Traditional petroleum-based plastics modified by linking in bio-based segments to improve long-term biodegradation of the plastic. The proportion of bio-based content can vary widely between different materials and a higher bio-based content will generally lead to faster degradation of the plastic. Both bio-based and oxo-degradable plastics are still relatively early in the development stage and are not yet cost-effective options.
Hydro-biodegradable plastics are designed to biodegrade in anaerobic and aerobic environments, commonly found plastics such as PE or PP are typically modified with the addition of starch materials to reduce polymer strength and promote biodegradation. This family of plastics is much more likely to be composted compared to oxo-degradable plastics, but as the rate of degradation and strength properties can vary widely between different materials, consistent behaviour on specific composting standards would need to be assured.
Oxo-degradable plastics are conventional plastics with small amounts of added catalyst which leads to the oxidation of the polymer chains and subsequently fragmentation when exposed to heat or UV light to the point where it is no longer a plastic. Despite claims, oxo-degradable plastics are not universally accepted as biodegradable due to the lack of consistent evidence on the biodegradation of the smaller polymer remnants and the potential negative impact on recycling streams.
Biodegradable plastics are not a new invention, but like recycled PET they have suffered from a consistently higher price compared to standard materials. Whilst a number of different families of biodegradable plastics exist, a discussion will be made on oxo-degradable, hydro-biodegradable, and bio-based biodegradable plastics. It must be noted that simply choosing a biodegradable plastic in no way guarantees it will biodegrade through composting, as such it is essential to carefully check and test the conditions required for the plastic to biodegrade.
Recyclable materials
Recyclable materials are an attractive option for consumers, as these materials are collected by local authorities on a regular basis. Hence, beer bottles or milk cartons are fairly quickly collected and sorted. Recycling uses less energy than making products from new; we are familiar with the great strides made to collect aluminium cans in the 1970s and 80s, recycling used aluminium drinks cans into new ones. This is a closed loop recycling process, resulting in lower energy usage than new product. Most paper and cardboard are already recycled or are capable of being recycled. Paper and cardboard manufacturers rely greatly on recycled products to ensure economic viability of production. High grade paper (e.g. paper used in colour printing) can only be recycled a few times due to short fibre length, however brown packaging paper can be recycled up to 5 times.
When considering using more recycled paper and card in packaging, companies should ensure they are not sacrificing packaging integrity. Glass is 100% recyclable, and can be used to package a product many times over without loss of quality. Although less energy is consumed recycling glass than manufacturing new product, a large portion of energy used in the glass industry comes from the melting process. High transition metal content in the molten glass greatly decreases furnace efficiency, so this method of recycling is perhaps less energy efficient than other materials. A switch to clearer, non-colour glass will help to maintain furnace efficiency and decrease raw material usage.
Finally, Metal is highly sustainable due to its infinite recycling capabilities and value; in the USA alone, approximately 120 million steel food cans are used each day. These cans are the most recycled food package in the world. Steel is magnetically separated from waste at recycling plants, and there are no downgrades in quality no matter how many times it is recycled. Use of recycled metal in new packaging may require de-inking if it is printed, and this is a technique that should be researched further to increase environmental viability.
Innovative Design and Features
Multi-purpose packaging is considered to be very innovative, yet the idea is simple. If the packaging can be used for something else, then there is no reason for it to be thrown away. Examples include using boxes or cases which can be easily transformed into something else simply by unfolding or making perforated tear lines. A more specific example includes a design that turns into a whisky glass designed by Constantin Bolimond. Once again, this has the added benefit of reducing the amount of materials used and may even provide a financial benefit to the brand with the potential to sell this packaging at a higher price due to its longer lifecycle.
Minimalist packaging is about encasing the bottle in as little materials as possible. It can greatly reduce waste and make it easier for the consumer to recycle. Companies such as EcoXpac are creating 100% bio-based cardboard bottle containers which are aimed to replace the plastic collar and sleeve. It has the added benefit of reducing transportation costs and potentially allowing for more bottles to fit into a case, directly reducing the carbon footprint of the transportation and even supplying a financial benefit to the brand. It can even make the packaging easier to dismantle for a higher bottle recycling rate and gives a more raw and authentic appearance to the product.
Minimalist packaging
With additional focus on packaging generally being thrown away, others have opted for using extensively less packaging to achieve much the same result. Phase packaging have studied and designed new packaging for a vast range of high end drink bottles, one of which is the Johnnie Walker Blue Label. Using a shaped piece of vacuum formed plastic and nothing else, it is designed to securely hold the bottle in place and nothing more. This is fantastic example of minimalist packaging that is cheap, easy and looks great, plus it’s made using less material and is recyclable to boot.
Often, in minimalist design, whisky bottles are displayed in clear, matt or frosted finish glass and sometimes even ceramic to give an earthy, tactile appeal. All visually appealing and all reusable. A wonderful example of minimalist packaging is the Suntory Hibiki. The bottle is made of clear, heavy glass that reflects light beautifully. The bottle is unlabelled with all information printed directly on the glass and it is topped off with a simple gold screw cap. Included is a matching clear glass tumbler. This packaging is simple, stunning and reusable, Suntory know that people buying high end whiskies often wish to retain the packaging and this set is perfect for that.
With minimalist design in mind, it’s about doing away with unnecessary packaging material and use only what is needed. This simple, sleek and clean packaging has a different appeal as it’s usually associated with higher end products. Minimalist packaging, if executed with precision and thought can be a major selling point.
Reusable and multi-purpose packaging
Patagonia Strong Malt does not show any picture of its whisky packaging, but to me, a simple whisky company with a name named after the tough, non-public apparel producer, is going to have some very strong perspectives on the environment when it comes to how they package their items. As of May 2007, Patagonia started to integrate packaging awareness into what should be a long and extensive process. It appears that launching into the process of building fully biodegradable/bio-based in the Bellwether trade may have discovered a fresh path untraveled. With the introduction of three eco-tests throughout the development, patent, and marketing processes for a product, Patagonia wants to keep the cost to a reasonable range over materials that may compromise the environmental standard for the product. By relaying related price issues directly to Patagonia-inspired vendors, it might be possible to persuade support towards an echo of Patagonia’s stance on environmental responsibility. An assessment category has been added within Patagonia’s main internal document website. In an attempt to persuade all product developers to consider the environmental costs and benefits of their materials with the click of a mouse, it is an evaluation to help calculate the overall environmental impact of Patagonia products. The ultimate goal of this eco-check is for the marketing team to help customers filter and discover which products are the most environmentally friendly compared to other available Patagonia products. This is a truly thoughtful service for the customer, given that most other Patagonia products such as Capilene long underwear and Synchilla fleece blocks may not suggest an image of environmental friendliness. With the promotion of environmentally responsible products, it would be to my desire that those going to buy these products who have not before considered any environmental issues may have an alter of heart on consumer culture.
Smart packaging solutions
The primary focus of smart packaging is to provide consumers with helpful information, which will further enhance the understanding towards the product and the brand. This can educate and confirm the consumer’s purchasing decisions. The need for a more intelligent and interactive form of packaging is now a possibility if the correct choice of technology is implemented. Near Field Communication (NFC) provides a wireless connectivity solution between a chip and a mobile device. An example of smart packaging can become evident through this technology by placing an NFC-enabled tag onto the whisky packaging. Consumers can access information regarding where the product was manufactured, ingredients, taste notes, and environmental information. QR codes, although a simpler technology, can provide similar information through a redirected hyperlink to the brand’s website. It may not be as appealing as NFC due to the black and white pixilated image on the packaging. LED lighting, although an unusual implementation, can provide a visual aid to packaging. An example can be seen through a Spanish-produced organic wine called ‘Baron De Ley’. The bottle of wine contains an LED in the base of the glass bottle. This will light up when the bottle is tilted, giving confirmation to the consumer that the product is authentic and from a reputable source. Although these types of advanced features may not be cost-effective to every brand, they are still possibilities to consider for the future of packaging.
Sustainable label and ink choices
Aqueous coatings also provide a much more durable and environmentally friendly finish to traditional varnishes, so it’s good to seek a company that is adopting these more modern technologies. Developing these options will be essential in moving towards a fully sustainable labeling option for the whisky industry.
There are a range of companies now producing hemp and organic cotton paper, as well as organic inks, which is a positive move forward. However, there is still the problem of deforestation and durability, and having a waterproof option is still essential. There isn’t a great deal of information about the company online as of yet; however, I had a good chat with a representative from Evergreen Printing who was very helpful, and they seem to be doing a lot of things right. They are printing their labels using waterless technology, which, unlike traditional offset printing, doesn’t waste large amounts of water or use toxic chemicals, and they are using organic ink and either recycled or FSC certified paper. This may not be the perfect solution, but it’s definitely a step in the right direction.
Sustainable label and ink choices are imperative and one of the most neglected aspects in eco-friendly spirit packaging. Paper labels are not only damaging the environment due to continuous deforestation, but they are also non-durable and susceptible to water and sun damage, which arguably defeats the purpose of scotch packaging. Plastics may be more durable, but they are made largely from non-renewable fossil fuels and have gained particular negative interest in the media lately due to their inability to break down and their damaging effects on the environment once they do. The best sustainable labeling options in terms of environmental benefits are wood and glass etching, although these are only suitable for premium products as they are costly.
Benefits and Challenges of Eco-Friendly Whisky Packaging
The perceived benefits of sustainable packaging do not come without a degree of consumer skepticism. For non-food items such as whisky, there is a concern that eco-friendly packaging may compromise product quality by providing inadequate protection or lead to an increased likelihood of counterfeiting. Counterfeiting is already a major problem for premium spirit brands, and there is a fear that the reduced cost of sustainable packaging may make it more economical for counterfeiters to reproduce. This is particularly an issue in emerging markets such as China, India, Brazil, and Russia, where more and more whisky is being consumed, but awareness of brand image and authenticity is still developing. In essence, whisky is a product with a strong perceived heritage value, and any move towards more sustainable packaging must not compromise these values.
Eco-friendly packaging presents numerous potential benefits for whisky producers looking to rebuild their brands around sustainability. By using recycled and easily biodegradable materials, whisky producers can reduce their environmental impact. Paper-based cartons are the most widely used form of secondary packaging for whiskies, and even small improvements in the sustainability of these items could lead to major environmental benefits. Modern consumers are becoming increasingly concerned with the origin of products and their impact on the environment. A shift to more sustainable packaging practices can improve consumer perception of a brand, and in some cases may even lead to increased sales.
Environmental benefits
Environmental benefits of sustainable practices in whisky packaging are the most obvious and plentiful. For every environmentally responsible action undertaken, another facet of the environment is positively affected. In whisky packaging, by using lighter weight glass bottles, recycled PET, paper or card over solid board, much less energy is used in manufacture (as much as 60% saving with PET over glass), leading to the reduction of fossil fuel consumption and the release of fewer greenhouse gases. The most widely considered environmental benefit is the reduction of materials used, and thus waste. Source reduction is the most efficient and least polluting of all the waste management options. Recycled and recyclable materials close the loop and provide a sustainable future through a circular material economy. A shining example of source reduction in the spirits sector is The Glenlivet with their “pull finger” carton, which is a reduction in itself of 1000 tonnes of cardboard waste per year. By minimizing this waste, both cost and environmental impact are lessened for the company. The main method of reducing packaging waste is through packaging optimization, and while this practice may not be directly involved in the use of more environmentally friendly materials, it ensures that those materials which are used are not wasted. In terms of environmental benefits to the inks and adhesives used on whisky packaging, ethical and sustainable sourcing of these materials ensures that no damage is done to natural habitats and biodiversity through aggressive farming and chemical use. The aforementioned switch to digital printing platforms also eliminates energy and material use compared to traditional flexo or gravure printing options.
Brand image and consumer perception
The perception of a brand’s environmentally friendly approach could have a positive impact on the consumer. Previous research found that consumers who were concerned about the future supported corporate strategies that were socially and environmentally responsible, and they were more likely to view socially responsible investments as safer and offering a smaller downside risk. The adoption of eco-friendly packaging is one way in which the whisky industry could be seen as responsible. Fostering consumer perceptions of environmental responsibility is a key element in gaining a competitive advantage for companies entering the increasingly growing market for green products. All other things being equal, customers are likely to view a brand’s environmental responsibility as a substantial benefit when considering two similar brands competing on price, quality, or another benefit. When switching from a conventional product to a less environmentally impactful alternative, consumers susceptible to environmental cause marketing may show more loyalty to the brand during the switch. Previous work showed that increasing purchase of organic foods was due in part to consumer beliefs that the purchases would help the environment in some way. As such, these customers may stick with a brand which is making efforts to reduce packaging impact. This shows that positive consumer perceptions could lead to a competitive advantage and secure sales of products with eco-friendly packaging. However, there is the risk that adopting environmentally friendly packaging could be seen as a symbol of lower social status. The marketing of environmentally friendly products has been euphemized as “light green” due to its perception as a thing for the elite. Take for example the purchase of a Tesla electric car, these are regarded in a similar manner to the way organic products are, as a good investment for the future, but it has been suggested that such products do not appeal to everyone due to their image of good for the environment = less fun. Step change, an organization dedicated to achieving a world without any incidents of serious injury, recently decided against a switch to plastic helmets as there was a strong feeling that the use of plastic conveyed an image of low cost and low quality and safety compared to the traditional fiberglass and composite materials. There is a fear that any negative consumer perceptions on eco-friendly packaging could undermine the quality of the product, which has detrimental effects on consumer satisfaction and loyalty, and depending on the changes made there may be expectation/legitimacy gap effects. Anyone considering a switch to eco-friendly packaging must be wary of these potential risks and ensure that they understand the needs and wants of their consumers regarding the type of product and packaging that they offer.
Cost considerations
The cost of shipping and transportation of packaging materials will vary greatly due to the wide range of packaging materials and designs. Although there are many variables, it is typical to use an average figure between £0.20 – £0.25 per unit. This translates to a cost of 17.85p for a foam and foil pouch and 23.85p for the eco-friendly equivalent. The saving of up to 6p per unit in the case of a brand using 700,000 units per year is £42,000 in a year, and this saving could be used to offset the cost of higher unit cost sustainable materials. An example of where the cost of transportation is far higher is for a smaller Scottish distillery shipping products to North America. This company packages a range of products from lower priced to single malt and has mentioned that shipping costs can be higher than the product itself, which is a major barrier for eco-friendly packaging. High material and transportation costs to avoid burdening the consumer have led to further questions about whether there should be tax concessions for the use of sustainable materials.
Evaluation of packaging is always crucial, especially in terms of cost impact. This research has identified that whisky packaging boxes costs are typically between 8% – 12% of the cost of the bottle, with glass bottle costs ranging from £0.40 – £4.00 and packaging costs ranging from as low as £0.25 for a carton to £6.00 for a wooden box. The LCA has shown that the cost of materials involved in the production of packaging units is very similar for eco-friendly and existing options. This cost is only a small proportion of the total cost of the product to the consumer, but due to the recent economic situation, it is a significant concern for producers because high packaging costs put their product out of the range of some consumers. An example of this is a high volume own brand whisky for a UK supermarket owned by one of Scotland’s largest distillery companies. The company moved from a paper label on the bottle to an embossed glass bottle (increasing the cost from 15p to 85p per bottle), which contributed to a packaging cost increase of 3.5 times the original cost and resulted in switching back to the cheaper packaging within a year. The cost impact on SMEs and new companies entering the market is much higher, and eco-friendly packaging might be unsuitable at the current cost. One “brand image” focus group participant noted that the bulk of the cost increase of packaging for their brand over the years did not allow the product to actually look any more expensive.
Supply chain challenges and solutions
The high profile nature and tradition of Scotch Whisky brands are a great challenge to eco-friendly packaging. On NETS Products experience, these brands are less willing to compromise sales that they are making good margin on to in order to change to more eco-friendly packaging. They are also more sensitive to changing their brand image in comparison to smaller brands or new brands. An example from working with Edrington brands was changing from a decorative carton for a bottle to a carrier for two bottles. This was a margin saving change but was made mainly because the gift carton was being seen as less premium in the market. Another challenge for these brands to change packaging is due the long production runs and stock holding. The high sales volume for these brands has them making packaging in 6-12 month production runs and holding up to a year’s stock. Changing to a new packaging concept can often mean the brand is unsure of the new product and won’t want to commit large volumes to it. Finally the nature of luxury gift packaging is heavy and ornamental and needs to convey an expensive image. Eco-friendly packaging is often seen as being of lower quality in comparison to luxury gift packaging such as paper gift bags to a net/twine bottle bag. This is also held by the consumer perception and they are less willing to use eco-friendly alternatives in comparison to traditional luxury packaging.
As the recent movements of reducing waste and decreasing carbon footprints become more and more important, companies turn to sustainable practices that leave less impact on the environment. In the whisky industry, Diageo recently announced a new returnable PET plastic bottle and Allied Glass are launching a lightweight bottle. Both of these companies are attempting to reduce the weight of glass that is transported in comparison to whisky. As seen at these top whisky producers, the nature of their sustainability goals for whisky packaging boxes are to reduce weight and waste. This also applies to packaging and the packaging supply chain. There are many challenges currently to creating eco-friendly packaging and for whisky brands these challenges are much more apparent. NETS Products is a small company that supplies an eco-friendly short bottle gift bag. Their main customers are middle to higher end exclusive Scotch Whisky brands and they try to create packaging that is sensitive to the brand’s image.
