Kraft Heinz to build $400 million automated distribution center



CHICAGO — The Kraft Heinz Co. announced plans to build a $400 million automated consumer packaged goods (CPG) distribution center in DeKalb, Ill. Spanning 775,000 square feet, the facility will be one of the largest of its kind in North America, Kraft Heinz said, with a 24/7 automated storage and retrieval system.

“The DeKalb distribution center is expected to play a critical role in our larger distribution strategy, moving more than 60% of Kraft Heinz dry goods in North America through our automated facilities,” said Carlos Abrams-Rivera, Kraft Heinz executive vice president and president, North America. “It’s a testament to the dynamic, out-of-the-box thinking of our supply chain teams whose work enables us to operate with greater efficiency and agility every day.”

The new distribution center will be able to deliver double the volume to Kraft Heinz’s customers while helping to reduce the company’s environmental footprint. Through sustainable technology and reduced waste, Kraft Heinz will take a step closer to its ESG (environmental, social and governance) goals with this development.

“We’re driving end-to-end transformation across our entire supply chain, investing in automated technology and digitized solutions to increase the agility of our logistics operations,” said Erin Mitchell, vice president of logistics and head of network restructuring at Kraft Heinz. “The construction of our new DeKalb distribution center is the latest example of this transformation in action. We have designed it to help ensure the delivery of our delicious, innovative and iconic products at the right time for our customers and consumers for years to come.” 

To make Kraft Heinz’s vision a reality, the company has partnered with Trammell Crow Co., a global commercial real estate developer; Krusinski Construction Co., a general contractor; Daifuku, an integrated logistics automation provider; and the City of DeKalb and the DeKalb County Economic Development Corp. on the development of the facility. 

The facility is scheduled to be operational in 2025 and is expected to bring 150 new jobs to the DeKalb area.



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Decreasing the pace of waste


Sealed Air has pledged that by 2025 it will use an average of 50% recycled content across all packaging solutions; 60% of which will be post-consumer recycled content.

Most conversations about sustainability in food production tend to eventually lead to packaging. Meat and poultry companies are looking for new ways to navigate the often-complicated dynamics of providing sustainable packaging options that are truly “green” but don’t break the bank.

Packaging companies are working with meatpackers to adapt current equipment so it can accommodate new packaging solutions while meeting different sustainability goals. Innovation in plant-based and post-consumer, fiber-based materials is being prioritized for many companies while increased reliance on recyclable plastics continues to be more efficient. Sustainable packages can be prohibitively more expensive than less environmentally friendly packaging like overwrapped foam trays.

Ossid, based in Battleboro, NC, has worked with its customers to provide ways to reduce the financial burden of pivoting into more sustainable packaging materials. When Ossid released its NextGeneration500E overwrapping stretch shrink wrapper in 2018, the company had sustainability in mind. The machine can accommodate many different styles of trays that can be changed over to a different size in under two minutes.

“We don’t want it to be a burden on our customer base; we’re 100% partnered with our customers,” said Mike Rogers, Overwrap product line manager at Ossid. “When they have a need we want to deliver it and don’t want to call them up and tell them you have to buy a new machine.”

Flexible options

The NextGeneration500E stretch shrink wrapper from Ossid can accommodate a variety of tray styles that can be switched out in a matter of minutes. (Photo: Ossid) 

Designing and manufacturing new equipment is more expensive than designing flexibility into the current equipment. Many of Ossid’s customers are requesting machines that can run more recyclable, clear plastics, and thus, the company has built that flexibility into its equipment. Ossid designed the NG500E sensors differently than the older models so the machines can recognize and run clear trays just as easily as opaque foam trays, Rogers said.

Sealed Air, headquartered in Charlotte, NC, has pledged to use an average of 50% recycled content across all packaging solutions; 60% of which will be post-consumer recycled content by 2025.

Currently the company’s Cryovac Brand Food Packaging division is working with a variety of sustainable packaging types; including recycle-ready plastics, renewable plant-based resins, recycled content and compostable materials that reduce the company’s carbon footprint.

“One of the challenges we are currently facing is that many of the complex, multi-layer materials used in food packaging cannot be recycled through traditional, mechanical recycling methods,” said Kristin Meyers, senior manager of global marketing food platform at Sealed Air.

Sealed Air has partnered with Plastic Energy, an advanced recycling company that uses technology to recycle plastics that would otherwise end up in a landfill or the environment. With this partnership, Sealed Air hopes to create a circular economy for plastics.

Sustainable packaging’s higher cost per unit can make it difficult at times to sell to bigger food companies and retailers.

The ECO Bowl is a flat, corrugated paperboard tray that includes a plastic liner. (Photo: Multivac) 

Often Gregg Poffenbarger, materials business director at Kansas City, Mo.-based Multivac, has customers tell him, “‘I love the idea. It’s a fantastic product, it forms well and performs great,’ they say. But it comes at a cost premium, and that cost premium is too high for many of our current customers to accept,” he said.

This hasn’t stopped Multivac from trying. It has been working with starch-based and plant-based, mixed polymers that are totally renewable – many that are compostable and some that are biodegradable, Poffenbarger said.

By experimenting with different sustainable options, Multivac offers options to its customers in this emerging market.

The company has seen a lot of interest in its ECO Bowl product line. The flat, corrugated paperboard trays come primarily from post-consumer feedstock and are designed with plastic liners that fit inside. The boxes remain clean for recycling programs, while also providing the benefits of saving storage space and transportation costs because all the manufacturing is done on-site.

Harpak-Ulma, with US operations in Taunton, Mass., is using its Platformer equipment to form paperboard trays that are manufactured in partnership with Graphic Packaging and G. Mondini. The product, Paperseal, reduces plastic usage by 85%, reported Carlo Bergonzi, product manager for Mondini tray sealing at Harpak-Ulma. “These trays are produced with renewable fiber sourced from sustainably managed forests.”

Paperseal trays are made to perfectly match the product, reducing waste and producing nearly 0% scrap to manufacture. The inner film liner can be separated from the paperboard when discarded, allowing for the paperboard portion to be recycled.

“The reduction in plastic and forming process equates to 59.5% less greenhouse gas, and 69.2% less energy used in production of Paperseal trays compared to traditional plastic barrier trays,” Bergonzi said.

Reduce, reuse, recycle

After the inner film layer of this Paperseal packaging is removed, the material is 100% recyclable. (Photo: Harpak-Ulma) 

Paperboard trays like Paperseal and the ECO Bowl can circumvent the current problems with US recycling infrastructure by using paperboard and fiber-based materials. Recyclable plastics are becoming more and more common in many food product applications, but municipal recycling infrastructures can make it difficult for consumers to know what is acceptable and what is still being put in landfills.

“Meat and poultry packaging are difficult because there is often food contamination of the packaging from the products,” said Nina Goodrich, executive director of GreenBlue and director of the Sustainable Packaging Coalition. “Sometimes a package might be recyclable if it was washed and dried, but is this a step that most consumers would take?”

One solution to this tedious practice could be for companies to reclaim their own trays and reprocess the packaging on-site.

Clearly Clean, an Orwigsburg, Pa.-based packaging company, is doing just that, making patented 100% recyclable, smooth-edge overwrap trays using PET. The company is planning to launch another business called Eco Standard, where it will reclaim a significant portion of its trays to recycle itself.

“Getting back a significant percentage of our trays will help close the loop and is a win for everyone: the consumer, processor, retailer, environment and Clearly Clean,” said Jeffrey Maguire, managing partner of Clearly Clean.

This will ultimately allow the company to get a clean stream of recyclable PET to use for new trays; creating a circular supply chain. This is encouraging for advocates like Goodrich and the Sustainable Packaging Coalition, whose members represent the entire supply chain. Goodrich encourages meat companies to understand that sustainability initiatives need to be all-encompassing.

Clearly Clean is working to the close the loop on the package recycling process by reclaiming materials to recycle and reuse. (Photo: Clearly Clean) 

“End of life for the package is important but so is the beginning of life and the design of the package,” she said.

Companies like Clearly Clean, that analyze how recycling supply chains can improve, can make sustainable packaging proliferate further.

“What we’re trying to get to is not just be a company that tells people how to recycle, but we want to actually do it,” Maguire said. “We believe we can help how we do things in the country from a recycling standpoint.” 



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Johnsonville to increase automation, data integration



ALAMEDA, CALIF. — The Sheboygan Falls, Wis.-based sausage company Johnsonville LLC has partnered with Jitterbit to modernize its technology, increase automation and improve efficiency across the company.

The nearly 80-year-old company is committed to investing in automation, accelerating the pace of its digital transformation goals. Through Jitterbit’s Harmony, a cloud-based integration platform as a service (iPaaS) and workflow automation system, Johnsonville will further automate its “retire to hire” processes, its manufacturing process and its planning processes.

“As one of the longest-standing sausage brands in the country, we were ready to evolve our technology infrastructure, leveraging the data integration provided by a complete iPaaS platform to boost efficiency and ROI,” said Paul Townsend, IT director of solution delivery and support at Johnsonville. “After careful consideration, we chose to work with Jitterbit. The Harmony platform’s capabilities, coupled with the smart, professional culture of the Jitterbit team, made for the right recipe to achieve our digital transformation objectives.”

More specifically, the Harmony platform will enable Johnsonville to achieve real-time process execution, connecting data and insights with the manufacturing floor. Harmony will have access to Johnsonville’s recipe management system so that each facility can be optimized for the highest quality and greatest efficiency possible. Additionally, the system eliminates the need for manual on-site management, meaning Johnsonville can cut back on labor costs.

“Digital transformation is a complicated journey for every company, especially those encumbered with legacy technology and disconnected systems,” said George Gallegos, chief executive officer at Jitterbit. “That’s what makes an effective iPaaS solution so valuable — it not only speeds up transformation, it simplifies it as well. We are thrilled to be working with Johnsonville in its new digital strategy initiative, working together to integrate siloed data, eliminate manual processes and optimize operations to drive long-term success.”



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Shelf life and standing out


In recent years, the vacuum skin packaging platform has continued to see growth and technical advancement. This progress and growth over time combined with consumer interest in transparency, convenience and food safety have fueled skin packaging’s increasing popularity, according to Bryan Mueller, marketing manager for Oshkosh, Wis.-based Amcor Flexibles North America.

“Amcor strives to provide the packaging formats that processors and consumers value, and skin packaging clearly provides benefits across the value chain,” Mueller said.

Showtime

Once applied and vacuum packed, skin packaging provides a longer shelf life for meat and poultry products, and by completely draping the film over the entire product, it shows the product in a clearer way as if there is no film.

“Everyone benefits from longer shelf life,” said Mike McCann, packaging specialist at Reiser, Canton, Mass. “Retailers will reduce their shrink, consumers will reduce their food waste, and processors will be able to enter new, distant markets with their products.”

“Skin packaging offers several advantages to customers,” said Jason Angel, vice president of sales and marketing at Battleboro, NC-based Ossid. “For starters, it presents the product in a very appealing manner. Skin packaging allows the product to stand out by letting the color and beauty of the food pop through. This allows the consumer to inspect the product more closely and choose which package they’d like to ultimately purchase.”

The transparency and clarity of skin packaging not only gives consumers a better view of the product, but also delivers a high-end and premium appearance to go with longer shelf life, said Mike Hanneken, product market manager for Multivac Inc., Kansas City, Mo. Multivac offers two types of skin packaging. One type allows for minimal product protrusion while the other permits product protrusion of up to 95 millimeters.

“Packages with minimal product protrusion still create a premium and unique look, but packages with greater product protrusion really help the product stand out,” Hanneken said.

Farmer Focus in Harrisonburg, Va., a 100% organic poultry processor and network of family farms has used skin packaging for several years based on what its consumers want to see in the store. Farmer Focus’ research consistently drove the company to hone its packaging style to present aesthetically pleasing instore presentations of product on the shelf, as well as giving customers the ability to see what’s in the package before purchase.

“For Farmer Focus, it’s also another symbol of the transparency we offer throughout our whole process,” said Stephen Shepard, executive vice president of operations. “With the skin packaging consumers can evaluate all sides of the meat. When you couple that with our Farm ID system allowing consumers to trace back to the farmer, it becomes an added symbol of our transparency.”

Skin packaging not only offers a clean look, but it also offers a clean use to consumers in the home or otherwise.

“A skin package is normally far less messy to deal with on opening versus conventional vacuum packs,” McCann said.

Vacuum skin packaging provides a loner shelf life for meat and poultry products and shows the product as if there is no film. (Source: Reiser)

 

Attributes

Processors want high performance, low power consumption and overall cost efficiency when it comes to the equipment and machines necessary to operations, and skin packaging is no different. Ossid’s ReeEco tray sealer operates on electricity without the need of compressed air. Its infeed conveyor gives operators up to three loading positions, easy tooling changes and a user-friendly control panel.

According to McCann, in addition to shelf life and other advantages, processors like the ease of use in loading products into or onto packages in Reiser’s machines due to the collapse and evacuation in a quickly executed, yet controlled sequence.

“Of course, customer support is another critical component of a vacuum skin packaging system,” Angel said. “You can build the best equipment in the world, but if you do not have the infrastructure in place to support that system, you are going to fail your customer. A strength Ossid brings to the industry is a robust customer support network that tends to our machinery and customers long after the sale.”

Ultimately consumers push what a processor produces, how it packages, its ingredients, etc. Portion control may have started out as a trend but has become a mainstream consumer habit and tendency. Meat and poultry companies have taken notice, and skin packaging aids in attracting those consumers.

“More and more meat packaging is limiting portion sizes, and skin packaging can be an efficient way to package single portions for today’s consumer,” Mueller said.

Minimal protrusion skin packaging offers meat processing facilities a lower cost option, but products don’t present as well as those in a package with greater product protrusion. Maximum product protrusion machines possess a higher level of sophistication and create a more premium look.

“For both types of packages, the top film contours the product very tightly without the product puncturing the film,” Hanneken said. “Some products are more challenging to skin pack. Multivac can work with the customer to run samples of their product using the customer’s film to evaluate such concerns.”

Shepard from Farmer Focus agreed, “Boneless cuts are going to be more successful than bone-in products purely because you are taking out the potential of bone puncture risk. However, we use this packaging for all cuts and success is really a matter of aligning the thickness of film and settings used when sealing.”

Jerry Rundle, vice president of sales for Taunton, Mass.-based Harpak-ULMA Packaging LLC, emphasized, “…reliability, reliability, reliability,” when addressing the things processor customers need most from skin packaging systems.

Rundle also agreed that while providing longer shelf lives and a superior look to packaged meat products, skin packaging offers more versatility in achieving those qualities.

“You can skin onto flex film, semi-rigid film, flat board, paper trays, etc.,” he said. He added that customers often seek out machines and machine builders whose equipment provides the best-looking skin packaged product because attractiveness implies quality.

Reiser works with customers to evaluate and choose the best machines for specific products. (Source: Reiser)

 

Making choices

For meat and poultry companies considering the purchase of a skin packaging system, many reasons suggest it’s a worthy investment. The aesthetic value of skin packaging gives consumers an instant verification of reliability and quality when making purchasing decisions.

“Skin packaging also provides a consistent appearance on the shelf with better purge control than traditional formats and no product shift during transportation,” Mueller said.

Reiser works with customers to produce samples of the different styles of packaging so they can evaluate before purchase. The company has seen success and satisfied numerous customers using this process. Reiser welcomes its potential and existing customers to visit and be a part of that process at any time.

“Working with our Customer Center affords processors the opportunity to investigate thoroughly their various options without gambling on the purchase of a dedicated line that may not even be able to handle their product,” McCann said. “We encourage processors to bring your product, make your packages, present them to your customers, and observe their preference so that you can proceed with the best package for your customer, your product, and your business.”

Farmer Focus prioritizes its mission to promote and protect generational family farms and bases its choice of vendors on alignment with that mission.

“We also evaluate other more operations-focused things like quality of sourcing, transparency in costing and service, clear lead times, collaboration on inventory demand levels, technical support, and willingness to innovate with us,” Shepard said.



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Closing the Gaps in the Meat Supply Chain and Operations Execution



The meat supply chain is filled with complexities, spanning disassembly, processing and blending challenges. Siloed functions hamper yield management, leading to unmet retail demands and frustrated customers. Producers also struggle with supply availability in the face of seasonal demand peaks and price fluctuations.

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Munters to build new flagship in Massachusetts



AMESBURY, MASS. — Munters Corp. announced plans to build a new 400,000-square-foot flagship facility in Amesbury, Mass., which is expected to be fully operational by 2024.

“Munters has been part of the Amesbury community for 60 years,” said Andrew Cook, senior vice president, Americas, AirTech. “Our business has flourished here, and we continue to grow. We’re the largest employer in the community, and many of our employees live in Amesbury or the surrounding area, so being able to bring the entire workforce to our new site – plus expand it – is absolutely fantastic.”

Munters is partnering with Global Property Developers Corp. to develop the facility.

With growing demand for the precise temperature and humidity control that desiccant dehumidification technology provides, Munters hopes its new operation will better help serve its target markets, including lithium-ion battery production and food processing.

The facility will increase production capacity, improve workflow and offer added comfort for employees. It will house fabrication, assembly, rotor production, a new R&D lab and a service training academy. Munters added that equipment will align with the company’s sustainability goals by using renewable energy sources for electricity.

“Munters is again making important investments in our global footprint, and in our growing markets,” said Henrik Teiwik, group vice president and president, Business Area, AirTech. “Our dedication to providing outstanding customer experiences with our core dehumidification products, solutions and services in the Americas region is clear. This new facility will have reduced carbon dioxide emissions, increased energy efficiency, and a significant share of renewable electricity for our operations, supporting Munters’ journey toward a sustainable world.”



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