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Laura Ries on the Iow-cost trap
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Content Nº 2 2006
VERY OLD ARE THE PASTEST
THE OLD AND
GROWlNG
POPULATlON GROUPS lN THE
lNDUSTRlALlZED
WORLD.
6
PeopIe Iive Ionger and medicine
and heaIth care wiII have to face
up to new chaIIenges.
COVER page 6-13
SCA Shape is publishèo in Swèoish ano Enolish. Thè con-
tènts arè printèo on GraphoCotè 8C o írom SC/ Forèst
Prooucts. Rèproouction only by pèrmission oí SC/
Corporatè Communications. Thè opinions èxprèssèo in
this publication arè thosè oí thè authors or pèrsons intèr-
vièwèo ano oo not nècèssarily rèílèct thè vièws oí thè
èoitors or SC/. You can subscribè to SC/ Shapè or rèao
it at www.sca.com.
04 SHAPE UP
China leases forests from Russia. Dutch love shop-
ping centers. U.S. is drowning in magazines. And
more news about what’s happening worldwide.
06 SHAPE COVER
Europe is sitting on a demographic time bomb.
Soon, a shrinking workforce will need to
support twice as many retired.
14 TRENDS
The price of forest land is rising worldwide.
Also read about the flu that never sleeps and the
325 million it strikes every winter.
21 PROPlLE
Brands lull us into security, says professor Richard
Wahlund, who knows more than just about anyone
about the impulses that affect consumers.
24 TECHNOLOGY
How can a jellyfish hold so much water? That’s
the starting point for a research project to
develop the diaper of tomorrow.
26 SCA lNSlDE
In many cases packaging decides whether a product
sells or not. With a new Innovation Center, SCA
takes another step to meet consumers’ demands.
30 CAMERA
Who was on the cover of Time magazine in
January 1973? The answer is on page 30.
22
34
34 SHAPlNG A VlEW
The lack of own brands creates problems for growth
centers India and China, says brand guru Laura Ries.
SCA Shape /n SC/ Group maoazinè Address
SC/, Communications ano lnvèstor Rèlations,
Pox 7827, SE-¹C3 97 Stockholm, Swèoèn TeIephone
+46 8 7885¹CC, TeIefax +46 8 6788¹3C PubIisher
Pooil Eriksson Editor-in-chief /nna Sèlbèro
EditoriaI management /nna Sèlbèro, SC/ ano
Goran Lino, /ppèlbèro Design Tonè Knibèstol,
/ppèlbèro Print Sormlanos Graíiska Ouèbècor /P, OOuèbècor /P uèbècor /P,, ,,,,,,
Katrinèholm Cover Frans Hällovist
¦¦22**2OOc 2OOc]] SHAPE SHAPE ¯C/ ¯C/**SS
SHAPE UP
4*¯C/SHAPE ¦2*2OOc]
NThe Russian NationaI Board of For-
estry Ieases miIIions of acres to China
to meet the country's puIp needs,
under a 49-year agreement between
the two countries, writes SPC!/Svensk
Papperstidning.
"!n terms of paper, we wiII no doubt
see considerabIe growth in Chinese
production, for instance in areas Iike
packaging and maybe cardboard too,"
says Björn LyngfeIt, vice president
of communications at SCA Forest
Products.
CHlNA LEASlNG
PORESTS PROM RUSSlA
Wal-Mart is gr Wal-Mart is growing
in China n China
A RETAlL MARKET with 15 percent an with 15 percent annual
growth and 850 billion dollars in sales last yea and 850 billion dollars in sales last year
must be irresistible to many shoppers. But in China, resistible to many shoppers. But in China,
the American giant Wal-Mart has had a relatively an giant Wal-Mart has had a relatively
weak position, with a market share of 2-3 percent with a market share of 2-3 percent
and 61 superstores. The largest player there today res. The largest player there today
is the French retailer Carrefour, with 76 super er Carrefour, with 76 super-
stores and 5 percent of the market. This year alone, e market. This year alone
Carrefour is expected to open 20 new superstores n 20 new superstore
in China.
But Wal-Mart may now be poised to take over e over
first place with its acquisition of the Taiwan-based
chain Trust-Mart, with a 4 percent market share
on the mainland, for 1 billion dollars, according
to reports in the Financial Times and elsewhere.
The Chinese grocery and retail market is still
fragmented, with a large number of local play-
ers. One explanation for this is the considerable
regional differences in the country. Another is the
combination of poor logistics in certain areas and
the fact that perishable goods constitute a large
share of grocery retail.
THE DUTCH LlKE
SHOPPlNG MALLS
NThe NetherIands is Eu-
rope's number-one nation
when it comes to shopping
maIIs, according to a report
by reaI estate services com-
pany Jones Lang LaSaIIe. ln
the NetherIands there are
around 4,300 square feet
of shopping maII space per
1,000 peopIe, compared
to the European average of
2,150 square feet.
Other countries with high
space fgures incIude Swe-
den, !reIand and Britain.
The NetherIands' neighbor
BeIgium has onIy a quarter
as much space per capita,
and in Turkey, Romania and
Russia the shopping maII
concept is stiII an undeveI-
oped market.
Jones Lang LaSaIIe
forecasts that the num-
ber of shopping maIIs wiII
continue to grow, mainIy
in southern Europe where
!taIy and Spain next year are
expected to see increases of
16 miIIion square feet each.
of aII paper in Europe is recycIed.
This makes Europeans the worId
champions in paper recycIing and
paper the most recycIed materiaI
in Europe.

More magazines but
lower circulation
NThe number of
magazines in North
America rose from just
under 16,DDD in 1995
to sIightIy more than
18,DDD a decade Iater,
according to statistics
in the Magazine Hand
book, pubIished by the
Magazine PubIishers of
America.
The combined cir-
cuIation of aII maga-
zines, however, does
not dispIay a simiIar
positive trend. TotaI
fgures dropped by 1.5
percent between 1995
and 2DD5. The reason
for this was a continuing
faII in singIe-copy pur
chases, now 28 percent
Iower than in 1995. On
the other hand, circuIa
tion from subscriptions
increased by 5 percent
over the same period.
Judging by the num-
ber of new titIes, there
is hope for the future.
!n 2DD5 in the con-
sumer segment aIone,
35D new magazines
were Iaunched in North
America. Magazines in
the ceIebrity segment
dominate, capturing 17
percent of the magazine
market.
NEW EE WINE
COUNTRIESWINS
NNew wine countries like Chile,
Australia and the US are capturing
an increasing share of the wine mar-
ket. According to the International
Organization of Vine and Wine, the
new wine countries now have a 22.5
percent share of the global market.
China is also gaining ground and is
now the seventh-largest producer.
In recent years, classic wine-pro-
ducing countries like Italy, France,
Spain, Germany and Portugal have
seen their share of global wine sales
shrink from 75 to 62 percent.
A flourishing middle class in
high-growth countries in Asia is
helping to increase world wine
consumption, which is once again
on the rise after a period of decline.
The most wine is still consumed in
France, followed by Italy, the US and
Germany. However, in a few years,
the US is expected to take the lead.
NOnIy one out of four women
with incontinence probIems
tries to fnd heIp, according to a
study pubIished in the Canadi-
an MedicaI Association JournaI.
The resuIts of the study are in
Iine with simiIar surveys carried
out in Europe. For the most
common form, stress-reIated
incontinence, such as that en-
countered during physicaI ac-
tivity, onIy a quarter of women
in Germany, Sweden and Britain
try to fnd heIp. !n Spain and
the NetherIands the fgures are
even worse, with onIy one out
of 1D doing something about
the probIem.
DON'T SEEK HELP
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¦¦22**2OOc 2OOc]] SHAPE SHAPE ¯C/ ¯C/**77
ver the last 200
years, the world
population has in-
creased sixfold In
1804, when Na-
poleon’s armies were marching
across Europe, the total world
population was 1 billion. By far
the largest increase has taken place
over the last hundred years: during
the time it takes to read this article
the world will have grown by more
than 500 new individuals.
In an often-quoted speech from
1973, the head of the World Bank
at the time, former US defense
secretary Robert McNamara,
compared the threats posed by
the world’s growing population
to those of a nuclear conflict.
Since this warning, world
population has increased from
4 billion to 6 billion. But even
though that number will rise to 9
billion by 2050, it is not the rapid
increase in size that primarily
worries experts, politicians and
economists.
The problem instead is the de-
clining and rapidly aging popula-
tions in the industrial countries
that produce the largest portion
of the world’s combined econom-
ic output.
One reason is that the rate of
total population increase has long
been in decline. It reached its peak
in 1963–1964 with a yearly in-
crease of 2.2 percent. The number
of new people in absolute figures
was at its greatest in 1989–1990,
¯LX¯ MATTl AA AS ANDERSSON ¦¬C¯C GETTY lMAGES
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SHAPE
6*¯C/SHAPE ¦2*2OOc]
when global population increased
by 87.4 million. According to de-
mographic experts, such as those
at the UN and the US Census Bu-
reau, the world’s population will
peak at 9 billion people around
2050 and then start to decline.
THE GREATEST population de-
crease will be in China, now the
world’s most populous country.
After 2050 its population will de-
cline by 5 million yearly. Growth
rates in countries that were previ-
ously behind the greatest increas-
es – primarily China and India –
have started to slow. As their
economic and education levels
rise, Asian families are starting to
have fewer children.
The area of the globe where
population is forecast to continue
to rise after 2050 is Africa south
of the Sahara.
“Despite many new develop-
ment tendencies over the last 50
years, there is one prevailing in-
fluencing factor: populations will
increase most rapidly in areas
where the actual living conditions
are the poorest,” say Mary Kent
and Carl Haub of the US-based
Population Reference Bureau in
an analysis titled “Global Demo-
graphic Divide.”
In the wealthy part of the world,
fewer babies are being born than
are required to make the demog-
raphers’ equation – births minus
deaths – come out positive. With-
out immigration, most of the in-
dustrial countries today would
have declining populations.
The old and very old are the fast-
est-growing population groups in
the industrial world. By 2050, the
percentage of old people in Europe
will have doubled. The average age
in Europe today is 37, compared
with 36 in the USA and 26 in Asia.
By 2050, Europe will be “grayer”
than any other part of the world,
with an average age of 47, com-
pared with 42 in the USA and 39 in
Asia.
ACCORDlNG TOA report by the
EU Commission, produced in co-
operation with the member states,
the working population will de-
cline by 48 million by 2050. If
there are four people of working
age for every European pensioner
today, there will only be two by
2050.
Vladimir Spidla, EU Commis-
sioner for Employment, Social
Affairs and Equal Opportuni-
ties, describes this development
as a demographic time bomb, one
that threatens to cut economic
growth potential in half during
the coming decades.
Demographic costs are estimat-
ed to increase public spending in
the EU by 4 percent per year over
the coming years, mainly in the
form of increased costs for health
and pensions.
“If member states do not seri-
ously try to disarm this pension
time bomb, it will explode in the
hands of our children and grand-
children, placing on them an im-
possible burden,” says Joaquín
Almunia, EU Commissioner for
Economic and Monetary Affairs.
To a large extent, Europe’s and
Japan’s problems with more and
more old people and fewer people
at work is a welfare problem. Im-
proved standards of living, health
care and medical progress have
allowed a growing number of peo-
ple to live longer, healthier lives.
In an often-
quoted
speech
from 1973,
the head of
the World
Bank at
the time,
former US
defense
secretary
Robert Mc-
Namara,
compared
the threats
posed by
the world’s
growing
population
to those of
a nuclear
conflict.
S
fffff

The old and very old are the fastest-growing
population groups in the industrialized world.
By 2050 the average European will be
10 years older, and workers will have to support
twice as many pensioners.
BOMB
A d
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m
o
g
r
a
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h
i c

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i
m
e

(
Economic wealth generally
means having fewer children,
better education and greater in-
dependence, and these arguments
have had proven effects when en-
couraging women in developing
countries to limit the size of their
families. The same recipe has dra-
matically reduced fertility rates in
Europe to record-low levels. This
is especially true in countries like
Spain and Italy, which 50 years
ago were among those with most
children. Today they have fertil-
ity rates of just over one child per
woman, far below the level of
slightly over two required to keep
populations at steady levels in in-
dustrialized countries.
OTHER COUNTRlES that will
experience population declines in
the coming decades are Germany
and new EU members such as Po-
land, the Czech Republic, Slova-
kia and the Baltic states.
Demographic changes are not
difficult to forecast but somehow
seem to come as a nasty surprise
to politicians. To master the com-
plicated challenges posed by ag-
ing populations, European poli-
ticians will have to make a whole
range of decisions.
(If retirement costs for the gant
postwar generation are not to
become excessively large, fi-
nancial reforms and a higher
degree of personal financing
will be required.
(More people will have to work
longer.
(More immigrants with quali-
fied education will be needed to
fill Europe’s workforce needs.
To completely fill the job po-
sitions left by those retiring, a
massive increase of immigration
would be required. This is a po-
litically sensitive decision when
xenophobic parties are gaining
ground in countries like Belgium
and Denmark.
“The pure number of immi-
grants required to balance the
aging population … would be un-
acceptable in Europe’s socio-eco-
nomic climate,” the RAND Cor-
poration, an American research
foundation, points out in a report
on the European aging challenge.
Many European countries and
companies like Volkswagen, Volvo
and Ovako Koverhar have tried to
encourage their older workers to
work longer, but they have a long
way to go to change attitudes and
traditions.
“Negative attitudes towards ag-
ing and the old are deeply rooted
in society and take a long time to
change,” says Philip Taylor, a se-
nior research associate at Cam-
bridge University in the field of age
and employment.
If high birth rates were once a
sign of traditional gender roles
and housewife culture, they are
now linked to having a greater
degree of equality and opportu-
nities to combine careers with
having children.
ACCORDlNG TOA REPORTon
the present population crisis, the
EU Commission says countries
like Denmark, France, Finland
and Sweden, which have a greater
degree of equality and female em-
ployment, also have a higher fer-
tility rates.
“The lack of balance between
work and leisure can be seen as
one of the most important fac-
tors underlying the difference
between the number of children
Europeans would like to have and
the actual number they do have,”
says Lisa Pavan-Wood at the EU
Commission’s Directorate for
Employment, Social Affairs and
Equal Opportunities. S
S*¯C/SHAPE ¦2*2OOc]
European
pensioners Iive
active Iives but are
aIso forced to
work Ionger than
they wouId
have wished.
SHAPE COVER
They’re old and rich
¦2*2OOc] SHAPE ¯C/*9
At one time, many of them were young and angry.
Today they are oIder, have curbed their anger and become
the richest pensioners in history. As the originaI
teenagers reach retirement age, the so-caIIed baby
boom generation waits in the wings, with credit
cards at the ready.
ºCARS ARE TYPlCALPRODUCTS
that will be affected by demographic
change,” says marketing professor Isa-
belle Szmigin at Birmingham Business
School, England, who has studied the
increased power of older consumers.
“Before, you used to talk about hav-
ing a ‘last car,’ one that older drivers
would keep the rest of their lives. But
many of those now nearing retirement
are used to having a new car every
other year and will not be content with
any old banger . Not all are rich, but as
a group they make up the richest gen-
eration ever.”
Those who grew up in the West and
became the world’s first “teenagers” in
the 1950s were born at a time of unique
economic growth. They have seen their
property increase in value by thousands
of percent and often benefit from enor-
mously generous pension agreements.
Stock markets, with only a few hiccups,
have also grown considerably during
their lifetime.
Even the first members of the so-
called baby boom generation – those
born after the war between 1946 and
1964 – are rapidly approaching the
end of their working days. The old-
est in this group – born between 1946
and 1955 – in the USA alone have a
purchasing power of USD 1 trillion,
according to the MetLife insurance
company.
“The message is clear: industries that
continue to focus on capturing youth
markets are going to fail miserably,” says
demographics expert Philip Taylor.
HE FORESEES A GREAT change in
demand for services in the fields of
health, travel, education and finan-
cial services. Everyone from computer
manufacturers to house builders will
have to embrace user-friendliness and
accessibility to meet demands from
the rich oldies.
“This is not just a well-to-do genera-
tion, it is a healthy and active one with
high demands on quality of life,” says
Erik Åsbrink, the former Swedish Social
Democratic finance minister who now
S
Not just any car is good
enough. Pensioners are
an attractive target group
for Iuxury car seIIers.
0
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1200
1500
0
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2000
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24
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chairs a company that lends money to
older people with small incomes but con-
siderable wealth tied up in their homes.
THROUGH SVENSKHypotekspension, K
a finance company, older people can re-
verse-mortgage their homes and spend
the money without having to move.
Similar services are available in a num-
ber of countries.
“The last generations with personal
experience of hard times are starting
to disappear,” says Isabelle Szmigin.
“Those who grew up during the war
still regard thrift as a virtue. But later
generations have no restraints when it
comes to consumption – they are the
first credit-card generation.
“The Internet is an example of a ser-
vice that, in every respect, offers enor-
mous potential to the old,” she says.
“It lets you order and book things from
home. But in time, adaptations will be
necessary, not least for simple things
such as text size, as failing eyesight is a
problem for many old people.”
She believes this demographic power
switch will be seen in advertising, point-
ing to the return of Jane Fonda, Diane
Keaton and 1960s icon Twiggy in ad-
vertising tuned to modern oldies who
grew up in a celebrity culture.
“In more general advertising, how-
ever, the young still dominate. Youth is
what everyone wants to mirror, no mat-
ter what their age.” S
SHAPE COVER
S
lNCONTlNENCE lNCREASES lN AGlNG POPULATlONS
N
S
The message is clear: industries
that continue to focus on
capturing youth markets are
going to fail miserably.
S
13D4
11D4
296
222
184
1628
1437
3D8 3D8 295
Most popuIous countries today... .and in 20S0 (miIIion peopIe1
HlGH GROWTH lN EAST
(SCA's incontinence products
are soId under the TENA brand
in 90 countries.
(The present gIobaI market for
incontinence products is around
5 biIIion euros. The USA's share
is 30 percent, Europe's 45
percent and Asia's 20 percent.
(Today, SCA is a market
Ieader with 26 percent of the
totaI market.
(YearIy totaI market growth
is 5 percent. ln Eastern Europe,
Asia and Latin America it is
signihcantIy higher.
...BUT EUROPE lS SHRlNKlNG
PopuIation today: 456 miIIion...
PopuIation 2D5D*: 449 miIIion
24.5 24.3 24.D 23.9
22.3
35.1
34.D
33.2
31.6 31.4
PopuIation aged over 60 today*... .and in 202S* (percent of popuIation1
PEOPLE AGED OVER S0 lN THE EU...
2DD4: 18 miIIion...
2D51: 5D miIIion
SHAPE COVER
12*¯C/SHAPE ¦2*2OOc]
TWO BILLION OLDIES
– A REAL HEALTH CHALLENGE
By 2D5D, the number of oId peopIe in
the worId wiII have grown from 6DD miIIion to
2 biIIion. The biggest increase wiII be among
the very oId, the over 8Ds. Medicine and heaIth
care wiII have to face up to new chaIIenges.
An aging popuIation wiII increase the need for
care and cause a rise in the number of
cases of cancer, heart attacks and AIzheimer's.
¦2*2OOc] SHAPE ¯C/*13
n aging population is, above all, a suc-
cess story for health-care politics and
social and economic development,” says
Gro Harlem Brundtland, director-gen-
eral of WHO, summing up the achieve-
ments that have led to a forecast increase
in the average life expectancy in Europe from 73.2
to 80.5 years over the next few decades.
An increasing number of people are becoming
older, and the group of “very old” – those over
80 – will increase most of all, by 50 percent over
the next 15 years. Their long lives will change the
world map from a medical point of view. The num-
ber of cases of illnesses primarily affecting the old
will become more common. Cancer, high blood
pressure, diabetes, stroke, Alzheimer’s and other
senility illnesses will increase sharply over the
coming decades.
According to a survey in the USA, the need for
surgery will increase by between 25 and 30 percent
as people begin to live longer. The WHO forecasts
that the number of older people requiring different
sorts of seeing aids will increase from 100 million
to 180 million and for hearing aids from 80 million
to 140 million.
Even if the treatment of diseases like cancer and
the chances of survival have improved enormously,
long and expensive treatment will still be needed.
This is also true for Alzheimer’s sufferers.
There is no pill in sight that will cure aging: the
best way to avoid early aging is not to consume things
like tobacco, high-fat foods and alcohol in excess.
According to EU Commission estimates, costs for
health care in member states will increase yearly by
between 1 and 2 percent of their GNP due to an ag-
ing population. This may not sound like a lot, but
it often means a 25 percent increase in a country’s
total health budget.
In Germany alone, this means an increase in
health costs of just over 60 billion euros per year.
And although we talk rather casually about “older
people,” the differences between the health of a 65-
year-old and an 80-year-old are enormous.
A study in southern Sweden compared the aver-
age costs for primary, hospital and geriatric care
for a person in the 66–74 age group with those
of a person in the 90-plus group. For a woman in
the younger group, the average costs were around
3,000 euros per year, while in the older group these
had increased tenfold to just over 30,000 euros.
Most of the increase was due to the higher costs
when elderly people can no longer care for them-
selves and need continual assistance.
EU and WHO experts now hope that a general
improvement in health, in combination with bet-
ter methods of treatment, will give industrialized
nations more healthy old-timers who can manage
without care and medical treatment for a longer
period of time.
A POlNTER TO HOW THlNGS can develop can
be seen in Sweden, which now has the world’s larg-
est proportion of people in the 80-plus age group.
“Health developments in this group have been
very mixed,” says Magnus Stenbeck, associate pro-
fessor and head of the Epidemiological Center at
the National Board of Health and Welfare.
“Mobility, sight and dental health have improved.
The number of people with chronic illnesses and
pains, on the other hand, has increased, and com-
pared to the 1980s we can now see more patients in
this group with heart problems.”
The increasingly healthy old in the 1980s be-
longed to a group that had survived epidemics such
the Spanish flu – which claimed 50 million lives
worldwide in 1918–1919 – and lived during a pe-
riod while the welfare state was being created.
“Today, the chances of living a long life are great-
er and many now survive previously fatal heart at-
tacks,” Stenbeck says.S
a
THE HEALTH OP THE AGED
1
2
3
S
Longer Iife, greater
need for heaIth care.
A 9D-year-oId has
heaIth-care costs
1D times higher
than a 65-year-oId.
¦¦22**2OOc 2OOc]] SHAPE SHAPE ¯C/ ¯C/**1S 1S
TREND
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Mexico’s consumers have more and more
money in their pockets, but the country needs
reforms to ensure that growth is sustainable.
Money sent home from emigrants in the US
is still one of the greatest sources of income.
THE MEXlCAN ECONOMY has
been firing on all cylinders in the
past few years, thanks in part to
greater macroeconomic stabil-
ity and political reforms that have
liberalized trade. Private consump-
tion has increased about 5 percent
annually, and inflation – a classic
problem in Latin America – is now
even lower than in the US.
This year, the positive growth
trend was hampered by the presi-
dential election in July. The vote
was won by Felipe Calderón and
his PAN party, but the results
were challenged by the loser, An-
drés Lopez Obrador. A power
struggle followed and was not
resolved until September, again
with Calderón the winner.
The political situation, together
with the risk of lower oil prices and
a weaker US economy, means that
growth will most likely slow next
year, according to Dr. Deborah L.
Riner, chief economist at the Ame-
rican Chamber of Commerce in
Mexico.
Still, the economy is growing
rapidly. Mexican economists es-
timate that GDP will increase
roughly 3 percent and private con-
sumption 3.5 percent next year,
according to figures compiled by
the William Seidman Research In-
stitute at Arizona State University.
But a great number of reforms
are needed to ensure that Mexico’s
growth is sustainable and that the
welfare of the country’s many
poor people improves. The OECD
has called for improvements in
Mexico’s educational system and
labor market.
Mexico also needs to reduce its
heavy reliance on oil, which repre-
sents 35 percent of the country’s
total revenues. Tax revenue con-
stitutes only 12 percent of GDP,
among the lowest rates in Latin
America. Because the price of oil
is such a wild card, the govern-
ment will have to raise income
taxes sooner or later.
“Right now, the government
may not have to worry,” says Tina
Mortensen, a macroeconomist at
Nordea in Copenhagen. “But the
recent fall in oil prices has created
some anxiety. A fall in the price of
oil by 10 dollars a barrel reduces
state revenues by 0.8 to 0.9 per-
cent of GDP.”
The other major source of
revenue is money sent home by
Mexican emigrants, mainly from
the US. Roughly USD 20 billion
a year is poured into the Mexi-
can economy through the back
door to be used for consumption.
lNGRlD KlNDAHL
(SCA saIes are about USD
4DD miIIion in Mexico and
CentraI America, one of
SCAs fastest-growing
markets. !ncontinence
products are growing at a
rate of 12 to 14 percent a year
in Latin America.
(SCA is the market Ieader in
incontinence products and
second Iargest in tissue.
(!n feminine hygiene products
SCA is fghting with KimberIy-
CIark and Procter & GambIe
to be the market Ieader.
SCA CC lN M A EXlCO
P
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rests.
as it senses
s here, it’s
unning.
YOU'RE LYlNG lN BED. Your nose is running. You’re freezing
and you feel really awful, even though you felt fine just an hour
ago. Your muscles ache, and it even hurts when you move your
eyes. Your cough is getting worse and worse.
You have the flu and feel like the loneliest person in the
world.
But you are not alone. Every year, on average, 5 percent of
all the people in the world come down with the flu. That means
325 million others feel the same way – fortunately, not all at the
same time.
“The flu is a typical winter illness that thrives best in cold,
dry air,” says Annika Linde, national epidemiologist at the
Swedish Institute for Infectious Disease Control. “So it mi-
grates between the southern and northern hemispheres during
their winter seasons. At the equator, the flu has small peaks all
the time, but it’s strongest in the spring and autumn.”
Another reason the flu spreads during the winter is that we sit
indoors together with a lot of people. If someone nearby who is
infected with the flu sneezes or coughs, you run the risk of get-
ting sick yourself.
Other than getting a flu shot, there’s not much you can do to
protect yourself. Good hand hygiene may help, as well as fewer
hugs and kisses with family members who are sick.
lF YOU'RE ALREADYlying in bed, what exactly is happening
to your body? The flu is really just an infection in our air pas-
sages. Our immune defenses and antibodies make us feel sick.
They immediately go on the attack against virus-infected cells,
while at the same time a number of neurotransmitters are spread
throughout the body to further activate your immune defenses.
After three to five days, it’s all over and you feel fine again –
at least until next year. And then you can keep your fingers
crossed that the flu will arrive late.
“As a rule of thumb, the later it arrives, the milder it will be –
and the earlier, the stronger,” Linde says.
ELlSABET TAPlONEUWlRTH
(SCA produces 57,DDD tons of
faciaI tissues every year. One-
third of SCA's faciaI tissues
are soId under SCA's own
brands and two-thirds are
soId under private IabeIs
(department store chains,
grocery chains and others).
(SaIes of faciaI tissues usuaIIy
increase about 3D percent
during the winter season, the
time of year when the fu is
spread.
(A package of faciaI tissues
weighs 27 grams (about 1
ounce). )
30% HlGHER SALES

lL
L
U
S
T
R
/
T
lO
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: G
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lM
/
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T
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F
L
U
You are not alone! The whole world has
SOYEZ SÛRE DE VOUS. PORTEZ NANA
Une nouvelle Nana, plus nature. C'est Nana Nature||e.
Une gamme complète de serviettes et de protège-slips.
Un voile non parfumé aux extraits naturels de camomille
et d'aloe vera, au pouvoir apaisant et hydratant,
qui empêchent le développement des odeurs.
Une double protection pour un nouveau bien-être.
B
y
T
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e
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e
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o
m
TREND
16 16**¯C/ ¯C/SHAPE SHAPE ¦¦22**2OOc 2OOc]]
=\SW\bS`\ObW]\OZb`S\RWabVObtimberIand Wa
PSQ][W\UW\Q`SOaW\UZg vaIuabIeOQQ]`RW\U
b]aSdS`OZO\OZgabaAVO^SbOZYSRb]7\bVSCA
bVS`SO`Sfunds that onIy invest W\bW[PS`ZO\R
THE BOSTON-BASEDHancock
Timber Resource Group, started in
1985, develops and manages for-
est funds for general and private
pension funds, foundations and
wealthy private customers. At the
turn of the year, the value of their
forest holdings, in North America,
Brazil, Australia and New Zea-
land, was USD 5.2 billion.
“In the US, there are three main
reasons to invest in forests,” says
forest analyst Richard Schneider
at UBS in New York.
“It’s a way to diversify your
portfolio over the long term with
s
o
l
d
!
assets that have a return not in-
volved in the same cycle that the
stock market’s otherwise in. It’s
an advantageous way to own tim-
ber from a taxation point of view.
And it’s a way to get at land that in
the long run can be used for hous-
ing, which increases the value of
the investment.”
lNTEREST lN timberland is also
growing elsewhere in the world.
The reason for that is the rising
demand for forest products. In adi-
tion to this, an increased demand
from the energy sector heralds
considerable growth as a result of
environmental concerns and the
need to replace fossil fuels. Despite
enormous forest assets on a global
level, a significant portion of the
forest is heavily exploited.
“That increases the value and
importance of areas where raw
materials can be sustainably har-
vested, like in the Nordic countri-
es,” says Jan Wintzell, head of
Swedish operations at Pöyry For-
est Industry Consulting.
“In North America, poor for-
est management and major forest
damage as a result of insect infes-
tation have contributed to a de-
crease in future harvest levels.”
In South America, production of
leaf mass from plantation forests is
increasing in order to meet growing
demand, especially from China.
Land for plantation forestry and
forest products manufacturing is
starting to be in short supply, parti-
cularly in large parts of Asia.
In Russia, there are enormous
forest assets, but poor infrastruc-
ture, long distances and a harsh
climate make it difficult to exploit
forests there to the fullest.
“Forest land and forest raw ma-
terials have taken on greater stra-
tegic value as important raw mate-
rials, not just for pulp, paper and
wood products, but also as fuel
and energy as well as in the rapidly
expanding biochemical field.”
S
An advertisement in
France for Nana NaturaI,
odor-inhibiting panty
Iiners and toweIs
with aIoe and camomiIe.
1S 1S**¯C/ ¯C/SHAPE SHAPE ¦¦22**2OOc 2OOc]]
TREND
Today, the market often wants
well-managed and environmen-
tally friendly forestry that meets
environmental requirements. An
example is the British magazine
publisher Future, which buys pa-
per from SCA, in part because of
its environmental outlook.
“Forests are a stable, long-term
investment that can return a high
yield if you increase production and
the level of processing. Even though
we’ve been running forestry ope-
rations for hundreds of years, we
can raise both productivity and the
quality of the forest raw materials
we grow through improved forest
management and better plant ma-
terial,” says Wintzell.
Many paper companies have
sold off their forest holdings,
which are now held by funds, foun-
dations and venture capitalists.
“Forests are strategically im-
portant for SCA as they contribute
a strong cash flow and have clear
synergies in production of pulp,
publication paper and raw materi-
al for corrugated board for packa-
ging. The value increases over time
because of the shortage of raw ma-
terial in northern Europe,” says
Andreas Koch, head of investor re-
lations for SCA. PER OOVlST
Counting the green
goId. The vaIue of
forests is increasing aII
over the worId.
P
H
O
T
O
: G
E
T
T
Y
lM
/
G
E
S
(SCA is the Iargest private forest owner
in Europe and manages 2.6 miIIion
hectares of forest, with 2 miIIion of
these cuItivated. The market vaIue is
about SEK 18 biIIion.
(!n 2DD5 4.4 miIIion cubic meters of
timber were harvested. The rate is
based on a sustainabIe harvest pIan of
1DD years.
(SCAs forest hoIdings have an age
structure that wiII aIIow harvesting to
increase to 5 to 6 miIIion cubic meters
in 1D to 15 years.
(The number of forest workers empIoyed
at SCA is one-tenth of those working
5D years ago. The rate of productivity in
the same period has risen from two to
6Dcubic meters a day 6D cubic meters a day.
(4D years, SCAs timber suppIy wiII
grow from 175 miIIion cubic meters to
22D miIIion cubic meters in 2D45.
(The cost of harvesting is at the same
IeveI now as at the end of the 197Ds,
which means infation has been
compIeteIy absorbed. compIeteIy
SCA¹S GROWlNG PORESTS
Forest land and forest
raw materials have
taken on greater strategic
value as important raw
materials, not just for
pulp, paper and wood
products, but also as fuel
and energy as well as in
the rapidly expanding
biochemical field.
Heb je helemaal genoeg van je oude toilet? Dan heb
je geluk. Ga naar rtl.nl en maak kans op een complete
Edet toilet make-over ter waarde van 5.000 euro.
Wellicht komt ons make-over team binnenkort jouw
kleinste kamertje omtoveren tot het toilet van je dromen.
Ga naar rtl.nl
voor deelname en spelvoorwaarden
Maak nu kans op het toilet van je dromen!
Ad in the NetherIands
promoting an Edet toiIet
make-over worth 5 DDD euro.
Consumers are asked to
send a picture of their toiIet,
expIaining why
they need the make-over.
COMMUNlCATlON
PROPlLE
¦2*2OOc] SHAPE ¯C/*21
Consumèrs makè orèat oèmanos
ano arè incrèasinoly innuèncèo
by a proouct's ¨aooèo usèíulnèss.¨
Yoourt is not |ust somèthino that YY
satisnès onè's hunoèr: èatino it
connrms your hèalthy liíèstylè.
¯LX¯ THORD ERlKSSON ¦¬C¯C ULP lSACSON
WHAT l AM ACTUALLY CON-
SUMlNG lS A VOlCE, SO THAT
l DON'T HAVE TO SPEAK
MYSELF. A VOlCE THAT FlLLS
THE SPACE AROUND ME WlTH
A FORM OF ENTERTAlNMENT.
n a competitive market, brands have become
even more important, maintains Richard
Wahlund, a Swedish business economics
professor specializing in media who person-
ally is not interested in the names on clothes
labels. Wahlund works at the Center for
Economic Psychology at the Stockholm School of f
Economics, housed on the ground floor of a rented
downtown building. At the end of a dismal corridor
lies his spacious but bare room. The boxes have still
not been unpacked from his latest move in the au-
tumn, when he was appointed to a newly created chair
in business economics with media specialization.
Media sounds like a far cry from his previous re-
search into brands and consumer behavior. But in
his view, products are just products, and he will be
investigating the economic factors governing the
survival of the media, based on studies of what con-
trols consumers’ media choices.
“You buy things because the packaging is entic-
ing, and this can also be true of media. I put on the
radio at 6:30 every morning and listen to the news.
Then I listen to the same news at 7 o’clock and 8:30.
Am I really that interested in hearing the news three
S
"Because of the content":
"CaII us to Iearn more about
our packaging soIutions".
An ad in the NetherIands, where
aII SCA packaging companies
change name to SCA
Packaging NederIand.
22 22**¯C/ ¯C/SHAPE SHAPE ¦¦22**2OOc 2OOc]] ¦¦22**2OOc 2OOc]] SHAPE SHAPE ¯C/ ¯C/**23 23
(The competition between producers is becoming
tougher, creating a larger diversity of products in ev-
ery industry.
“It’s difficult for customers to deal with this.
They cannot digest an unlimited amount of infor-
mation. So it’s a question of producers finding a
way to profile themselves, because they then make
the customer’s choice easier. If a customer has 14
similar products to choose from and one stands out,
then he or she will probably choose the one that is
different.”
This is where brands come in. They help custom-
ers become less frustrated and offer security.
“They simplify the decision process. ‘If I pick this
one, then I won’t have to suffer the agony of choos-
ing. This is a safe choice.’ ”
A few years ago, when the Internet became es-
tablished as a widespread everyday tool, there were
theories that the days of strong brands were num-
bered. The searchability of the Internet would make
customers independent, their active choices based
on comparisons of price and function. This has not
been the case at all.
“As information on the Internet contains uncer-
tainties, brands will instead become even more im-
portant.” S
NAME: Richard WahIund
AGE: 49 years oId
LlVES: in Bromma, StockhoIm, with
his wife and four chiIdren
PROPESSlON: Professor of business
economics speciaIizing in media at
the StockhoIm SchooI of Economics.
Since the 198Ds he has conducted
research into economic psychoIogy,
marketing and consumer behavior.
His doctor's thesis was on tax evasion
and saving. He Iectures on decision
making, marketing and branding,
among other things.
ABOUT HlMSELP AS A CONSUMER:
"! have four chiIdren. They're the reaI
consumers."
ON HlS OWN RELATlONSHlP TO
BRANDS:
"! beIong to the category of those who
buy a sweater when they need a sweater.
!'m weII aware that the cost of a product
is sometimes dictated by its brand and
not its function. Take medicines, for
exampIe. !f you want acetaminophen,
you can buy TyIenoI or a generic
equivaIent. One costs more, the other
Iess. They are perfectIy aIike, contain
the same active ingredients, and there is
no reason to pay for the packaging."
OVER 2S0 DESlGNERS
(70 percent of shopping decisions are
made in the store. Packaging are there-
fore an important part of the product.
(SCA uses its knowIedge of shopping
behavior in its innovative packaging
soIutions.
(SCA has 20 design centers and more
than 250 designers around the worId.
(A new innovative center was
opened in BrusseIs in November.
Read more on page 26.
PROPlLE
times?” he asks rhetorically. “What I am actually
consuming is a voice, so that I don’t have to speak
myself. A voice that fills the space around me with a
form of entertainment. It’s not just the information
itself that I’m interested in.”
The same complex pattern of expressed and hid-
den needs influences all consumers, whether it’s cars,
the evening papers or what you have on your sand-
wiches. As an example Wahlund points to his son
who has an iPod, Apple’s popular MP3 player.
“It was very important to him to buy one, but he
hardly ever listens to music on it. The most impor-
tant thing is having one and being able to show it to
his classmates.”
THE SON COULD have accepted a cheaper MP3
player with the same functions, or no player at all.
Instead, he insisted in having one of the most expen-
sive ones on the market, not least known for its el-
egant minimalist design. This seems irrational – in
the same way that adults drive around in expensive
BMWs instead of cheaper Skodas, or wear shirts
with expensive designer labels instead of one that
says H&M. But this is not irrational behavior, Wah-
lund says – on the contrary.
“What we are looking for is satisfaction and use-
fulness, and if the packaging gives us this, then it’s
actually quite rational to buy the packaging.”
As consumers, we are more and more influenced
by a product’s “added usefulness.” We choose prod-
ucts that involve us, no matter whether it’s food at
the local store or furniture at Ikea.
“Basic usefulness used to be the decider. Today
there are more aspects to consider. The product’s
got to look good and its relative status is important,
especially when it comes to clothing. As consumers
become more design competent, and more compa-
nies take design into consideration, competition in
communication also increases. Audiences become
harder to reach.”
The upgraded role of outer appearance makes
packaging, literally, part of the product. An attrac-
tive box sells better than an ugly one.
“This also creates business opportunities. My son
once came running with a bottle of shampoo in the
shape of a cartoon character. It’s not that he normal-
ly buys shampoo – it was the bottle that attracted
him. That’s what he wanted to buy. By working on
its packaging, you can develop your product. You
have to remember that the function of the packaging
is not only storage but also communication.”
Wahlund emphasizes that these mechanisms
mean genuine opportunities for companies in the
packaging and wrapping industries.
“The company that is capable of understanding
its customer’s customer will be one step ahead and
can offer a USP – a unique selling proposition.”
An example of this is the Swedish product Risi-
frutti: thanks to the two-in-one packaging concept,
a whole new market opened up for a combination of
rice pudding and jam in a ready-to-eat, single-por-
tion pack.
“Present a solution that the customer’s customer is
interested in and you’ve just created a new market.”
ACCORDlNG TO Wahlund, what’s missing is the
ability to think a few steps ahead. This phenomenon
is called marketing myopia. Packaging manufactur-
ers too often see themselves as producers of materi-
als that protect products during transportation, even
though their most important job is to communicate
with the customer and create an impulse to buy.
This way of reasoning could have far-reaching
consequences for many products. What would hap-
pen to radio programs if they were produced with
the thought that some people turn on the morning
show to avoid having to talk?
Consumption patterns and their underlying im-
pulses are woven together into a complicated fabric.
Wahlund paints a richly nuanced picture in which
every detail is or has been subject to change.
(Co su e de a ds a e c eas g y o e va ed. Consumer demands are increasingly more varied.
THE UPGRADED ROLE OF
OUTER APPEARANCE MAKES
PACKAGlNG, LlTERALLY, PART
OF THE PRODUCT. AN ATTRAC-
TlVE BOX SELLS BETTER THAN
AN UGLY ONE.
Brands heIp customers
become Iess frustrated
and offer security,
says Richard WahIund.
How does the jellyfish manage to retain so much water
when it itself is 96 percent water? This was the
starting point for a research project to develop the new
super absorbent diaper of tomorrow.
¯LX¯ PETER GlSSY ¦¬C¯C GETTY lMAGES
TECHNOLOGY
¦2*2OOc] SHAPE ¯C/*2S
hree years ago, biopolymer
professor Paul Gatenholm
at Chalmers University of
Technology, working in clo-
se cooperation with Profes-
sor Anne-Marie Hermansson at SIK,
the Swedish Institute for Food and
Biotechnology, initiated a project to
map the then-secret mechanisms of
the jellyfish. He was convinced that
the knowledge gained would lead to
industrial applications.
“Diapers today use small powder
particles to soak up urine and trans-
form it into a gel,” he says. “This works
reasonably well, but the absorption
capacity of the particles is reduced con-
siderably when it comes to salt water.
The salt reduces their retention capa-
city, and as human body fluids are salty,
this is a drawback. The jellyfish has al-
ready solved this problem. It also has a
structure that decomposes naturally,
unlike present-day synthetic diapers.”
So how is research coming along?
“We’ve learned a lot about the struc-
ture of the jellyfish and what enables it
to retain water,” he says. “We haven’t
mapped the complete mechanism, but
we do know which components work
together and how. Our working hy-
pothesis, that it’s all about interaction
between proteins and polysaccharides,
has been confirmed. And because the
structure is built up in a highly hierar-
chic fashion, the jellyfish can display ex-
cellent mechanical properties, despite its
jelly-like form. Ions play an important
role. It’s also interesting to note that in
the jellyfish we have found similarities
to human tissues, such as cartilage. This
supports the theory that human beings
originated from the sea.”
A schematic of the structure of the
jellyfish forms the basis for further
research into future superabsorbents
(see illustration).
SIK and SLU, the Swedish Uni-
versity of Agricultural Sciences, are
Gatenholm’s foremost collaborating in-
stitutes. Project Leader Susanne Ekstedt
at SIK has been responsible for devel-
oping techniques whereby the mecha-
nisms of the jellyfish can be studied.
Anne-Marie Hermansson sees this
as an “inspirational project.”
“The industry is interested in find-
ing inspiration for tomorrow’s materi-
als – primarily for diapers and similar
products,” she says. “We want to learn
from nature to get ideas for producing
renewable products.”
While pointing out that nature in
many respects is smarter than we are,
she emphasizes the fact that numerous
biological tissue structures are ex-
tremely difficult to map and copy.
This is not the first time that re-
searchers have copied nature, so-cal-
led bio-mimicking, to learn something
new and better. Rock barnacles have
been mapped in order to produce glues
that are significantly stronger than
those that can be produced synthe-
tically, and even cobwebs have been
studied to see whether they are usable
for surgical purposes. Paul Gatenholm
is convinced that this is just the start.
“Biological systems aim at produc-
tion using a minimum of energy, an ap-
proach that will benefit future society
in its quest for energy conservation
and minimal environmental impact,”
he says. S
t
S
NSCA has cooperated with ChaImers since
1990. From January 2007 cooperation wiII
continue at new interdiscipIinary center in
Gothenburg, Sweden. The center wiII focus on
the structuraI design of supramoIecuIar
biomateriaIs with unique functionaI properties
and wiII receive USD 9.7 miIIion from Vinnova,
the Swedish GovernmentaI Agency for
lnnovation Systems, over the next 10 years, an
amount that wiII be matched by contributions
from Swedish industry. OnIy 15 of 150 appIica-
tions were approved to be part of the centers
research. The center wiII be the hrst of its kind
in the worId, and research resuIts are expected
to hnd appIications in the food and pharma-
ceuticaI industries as weII as in companies that
now use oiI-based products and that give great
importance to environmentaI considerations.
UNlOUE CENTER
THE SEA¹S OWN
SUPER ABSORBENT
SCA PersonaI Care is working excIusiveIy
on research focused on the company's prod-
ucts and constantIy on the Iookout for new
absorbent materiaIs.
The research department has 42 empIoyees;
RoIf Andersson is head of research at SCA
PersonaI Care.
By Iearning how and why the jeIIyhsh can
retain so much water, researchers and SCA
hope to emuIate it and synthesize highIy
absorbent structures.
The resuIts of the research wiII be used
primariIy in products such as baby diapers,
feminine hygiene products and
incontinence products.
SEARCHlNG POR NEW
KNOWLEDGE
1
2
3
4
lt¹s interesting to note that in the jeIIyhsh we have found simiIarities to human tissues.
The jeIIyfsh is ingeniousIy constructed and wiII
be diffcuIt to copy.
The jeIIyfsh structure is made of proteins and poIysaccharides.
Hyaluronic acid
Negatively loaded polysaccharides. Protein.
S
SCA lNSlDE
NEW lNNOVATlON CENTER lN
BRUSSELS
ln a marketpIace where around 70% of the purchasing decisions are
made at the point of saIe, the product needs to stand out. More than ever,
the roIe of packaging within the totaI product experience is cruciaI.
ln BrusseIs, SCA Packaging works to meet rising customer demands.
¯LX¯ GORAN LlND ¦¬C¯C JULlANA YONDT
With a new virtuaI system, customers can see how the With a new virtuaI
k in the store when the sheIf is fuII or haIf packaging wiII Ioo
nd in three dimensions. fuII, aII at Iife size a
Tough competition demands Tough compe
icated packaging more sophist
soIutions.
n a nutshell,
packaging is the
promotional
medium that
connects a product
with the consumer. It has
become a vital ingredient of
the product manufacturer’s
marketing strategy.
Indeed, packaging plays
an important role in the
purchase decision of the
shopper. “All our work be-
gins and ends with shopper
insights. As research tells us
that 70 percent of all pur-
chasing decisions are made
in shops and that on average
it takes three seconds to
make a decision, in-depth
knowledge about what turns
a shopper into a consumer
is imperative,” says Wim
Wouters, SCA Packaging’s
European design director.
At the same time, our cus-
tomers are placing tougher
demands on packaging per-
formance throughout the
total supply chain, because
of the growing complexity
in their operations
“Moreover, product life
cycles continue to shorten as
companies have perfected
the twin arts of innovation
and imitation. We pro-ac-
tively have to know what’s
happening in our customer’s
markets – for example,
anticipate what the next
step is in the development of
a new generation cell phone.
If we don’t understand
our customer’s business
environment and segment,
we will not be able to offer
the right packaging solution
to build a clear and sustain-
able competitive advantage
for our customers,” adds
Stephen McAneny, vice
president sales & marketing
at SCA Packaging.
Development work on
packaging focuses on three
main functional aspects that
add value to packaging: be
seen, be moved, be secure.
And overall along these
three dimensions, packaging
solutions are becoming in-
creasingly more sophisticat-
ed–– fromreinforcingbrand – from reinforcing brand dd – fromreinforcingbrand – fromreinforcingbrand fromreinforcingbrand fromreinforcingbrand
recognition at the point of
sale, to including an RFID
chip to follow the product as
it travels through the supply
chain, to complex packaging
designed to meet the most
challenging requirements.
AT THE lNNOVATlON
Center, a unique interactive
virtual reality tool visual-
izes the conceptual packag-
ing designs in an in-store
environment. Projected
on a huge screen, it gives a
realistic and life-size three-
dimensional view. “Custom-
ers are often unsure what the
product and the packaging
solution will look like in a
shop. Our virtual system
removes this uncertainty”.
Packaging design and
development takes place
in close cooperation with
customers at more than 20
Design Centers in Eu-
rope and the USA. In all,
SCA Packaging employs
more than 250 designers,
combining a thorough
understanding of the pack-
ing process and machinery
with structural and graphic
design creativity.
“We often mix design
competency from different
specialization areas or ge-
ographies. When staff who
have worked on packaging
for champagne meet with
those who worked on cell
phones, creativity flour-
ishes,” Wouters says.
The Design Center net-
work is connected through
an extensive packaging
design library.
In November, a new
Innovation Center was in-
augurated in Brussels to link
together all the company’s
Design Centers and create a
forum where manufacturers,
retailers and SCA Packaging
designers can jointly develop
packaging solutions in a
structured approach.
SCA Packaging’s de-
velopment from producer
of corrugated boxes to
full-service, multi-material
packaging supplier is not
just about adapting to a
changing world. Basically,
it’s a strategy to increase
growth and profitability.
“The traditional market
for corrugated board solu-
tions for transportation is
worth around 20 billion eu-
ros. The market for packag-
ing that solves customer and
consumer needs, irrespective
of type of material, is worth
between 120 and 160 billion
euros. In other words, there
is enormous potential,” says
John D. Williams, president
SCA Packaging Europe. S
S
SCA lNSlDE
.
Tork to China
HlGHER PROPlT POR SCA
SCA improved its proft before tax by 19% in the frst nine months
of 2DD6 compared with the previous year. SEK 5,D3Dm. Net saIes
in the frst nine months of 2DD6 increased by 6% compared with
the previous year and amounted to SEK 75,789m (71,244).
NSCA is Iaunching Tork, its successfuI Away
From Home (AFH) tissue brand, in China. Start-
ing in the expansive Shanghai region, SCA
wiII set up a commerciaI base in the growing
Chinese market.
"The Chinese tissue market is extremeIy
important," says Tibor Kovacs, director of saIes
and marketing for AFH Products in the Asian
region. "!t is No. 2 in the worId, surpassed onIy
by the US. So for us, increasing our presence in
China is a IogicaI move."
SCA wiII estabIish inventory stock and dis-
tribution through severaI channeIs incIuding
seIected end customers.
Tork is SCA's gIobaI brand for tissue and vaI-
ue-added services for commerciaI and industri-
aI workpIaces, heaIth-care institutions, the food
service sector and other pubIic environments.
:=A7<5 E7B6=CB:
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N a OuadBag is the name of
brand new bag-in-box
ded packaging soIution provid
it by packagingservice, a un
n of SCA Packaging Sweden
based in Värnamo in
g's southern Sweden. The bag
ws unique square design aIIow
it to empty entireIy. The
packaging is environmen-
s taIIy friendIy as it uses Iess
pIastic than traditionaI
siIy soIutions. The bag can eas
be divided and both parts
recycIed.
"Now that the bag-in-box
principIe has become weII
known in wine packaging,
it cIears the way for other
products to change their
packaging habits," says
CamiIIa Lundh at SCA Pack-
aging Sweden. "This
is just the beginning of what
can be packaged in a bag-
in-box."
SCA TlSSUE red Europe scor
on best in terms of its enviro -
the mental performance in t
WF, report published by WW
as the group formerly known
in the World Wildlife Fund,
tis October this year. Other t -
ere sue manufacturers who we
& ranked included Procter
rk, Gamble, Kimberly-Cla
tsä Georgia-Pacific and Me
ear Tissue. This is the second ye
pe in a row that WWF has sp -
Tis cifically highlighted SCA T -
ntal sue Europe’s environmen
activities.
The environmental criteria
underlying the survey were
wood sourcing practices, pol-
lution control, fiber efficiency
and recycling, and reporting
transparency. “SCA Tissue
Europe is the only surveyed
company that is able to ensure
that a significant proportion
of wood fiber used in its prod-
ucts doesn’t come from poorly
managed forests,” WWF says.
“SCA Tissue Europe also
promotes the highest environ-
mental and social standards in
forest management.”
BEST lN TEST AGAlN!
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NA new soda recovery boiIer has been in operation at the
Ostrand puIp miII since October this year. SCA can now
increase its output of paper puIp and Ostrand can doubIe its
production of biofueI-based eIectricity. This wiII make
Ostrand's suIphate puIp pIant seIf-sufhcient in eIectricity,
and the pIant wiII at times be abIe to seII eIectric power. The
Ostrand puIp miII, Iocated outside SundsvaII in northern
Sweden, produces chIorine-free, bIeached suIphate puIp
primariIy for manufacturing pubIication papers and tissue,
as weII as chemicaI thermo-mechanicaI puIp for the manu-
facture of personaI care and other products.
N TENA services help institutional
business customers to reduce their
costs. At a nursing home, incontinence
products only amount to about 1 per-
cent of the budget, while the entire cost
for incontinence care can add up to 15
percent of the total, with staff costs ac-
counting for much of the rest.
“For our customers it is important
to look at their entire service concept
if they want to reduce expenses,” says
Björn Ålsnäs, category marketing
manager at SCA Hygiene Products.
“With TENA services we offer our
customer the expertise that is needed
to do that.” The TENA service sales
force works closely with the customer
to evaluate the incontinence care situ-
ation and plan changes, to coach staff
in the best use of our products for
each individual resident and to moni-
tor results.
The service concept was launched
two years ago and operates globally.
TENASERVlCESCUT COSTS
Boosting green electricity output
NTork, SCA's gIobaI Away From Home brand, wiII
Iaunch two new hygienic "touch-free" products in
February 2DD7. The products are a sensor-driven
soap dispenser and a sensor-driven hand toweI
roII dispenser. Both products are part of the new
"touch-free washroom environment" concept.
"There is a strong trend towards touch-free
products in the market, and SCA is foIIowing that
trend," says Fredrik Pamp, category product man-
ager at SCA.
The products are part of the excIusive aIuminum
assortment and are designed to combine contem-
porary design with hygienic soIutions.
Touch-free freshness
4 224
5 030
75 789
Profit before tax, SEKm.
Net sales, SEKm.
71 244
2005
2006
Jan-sept
Jan-sept
CAMERA
TERROR ATTACKS, MOON VOYAGES,
S
CURRENT EVENTS
COVERED
S
Time's distinction of "Man of the Year" is one of the media's most
noted events. The cover was never so successfuI as when Nixon's face
was covered in hundreds of headIines about him. Time's boId cover
of George W. Bush is from faII 2DD6.
CAMERA
HoIIywood's GoIden
Age was the source
of gIamorous covers.
But in the 197Ds,
HoIIywood had
become comicaI and
by the 199Ds, it
becameprovocative.
Hottest right now is
ScarIett Johansson,
gracing amuItitude
of covers every
month. Esquire's
cover from 2DD6is
typicaI. Life's
Christmas cover for
2DD5 was an exact
copy of a cover from
the 193Ds.
34 34**¯C/ ¯C/SHAPE SHAPE ¦¦22**2OOc 2OOc]]
SHAPlNG A VlEW
33
S
l CAN LOOK OUT THE WlNDOW OF
MY HOTEL ROOM AND SEE THE SAME BRANDS
WHETHER l'M lN SWEDEN, SOUTH
AFRlCA, SlNGAPORE, PERU OR THE PHlLlPPlNES. S
s
www.sca.com
www.publicationpapers.sca.com
Reliable products
SCA can offer FSC-certifed paper of the highest quality for
magazines, catalogues and supplements.
The FSC (Forest Stewardship Council) is an international
organization that has established standards for responsible,
sustainable forestry.