ALCOHOL MARKETING AGENCY

Sustainable Alcohol Packaging - The Paper-based Bottle and Lightweighting

Sustainable Alcohol Packaging - The Paper-based Bottle and Lightweighting

Introduction

The spirits industry is undergoing a transformative shift as consumer demand for sustainable products intensifies. Leading this change is Diageo, the global beverage alcohol company behind iconic brands such as Johnnie Walker, Guinness, and Smirnoff. In a groundbreaking initiative, Diageo has launched a trial of a 90% paper-based bottle for Johnnie Walker Black Label in the on-trade sector. This move represents a significant step towards reducing carbon emissions and showcases the company's commitment to environmental responsibility. This article delves into the details of this innovative project, its significance for the industry, and the strategic insights alcohol marketing leaders and brand owners can glean from Diageo's pioneering effort.

Overview of the Paper-Based Bottle Trial

On September 24, 2024, Diageo announced the commencement of a trial for its first 70cl paper-based bottle at the Johnnie Walker Princes Street's 1820 bar in Edinburgh, Scotland. This initiative, created in partnership with PA Consulting and PulPac under the Bottle Collective, marks Diageo's first venture into paper-based bottles in the on-trade environment. The trial involves 250 paper-based bottles of Johnnie Walker Black Label, with the objective of assessing how bartenders interact with the bottle and how it performs in a busy bar setting.

The trial is set to run until mid-October, allowing Diageo to gather valuable feedback on the bottle's functionality and practicality. While members of the public will be able to see the bottles in use behind the bar, they will not be available for purchase during this testing phase.

Sustainable Packaging for Alcohol

Innovative Design and Material Composition

The paper-based bottle is crafted from 90% paper, featuring a very thin plastic liner that is not bonded to the paper exterior. This design choice facilitates easier recycling, as the materials can be separated more efficiently during the recycling process. The bottle retains the iconic square shape of the Johnnie Walker brand but introduces unique facets cut into the sides and an embossed Striding Man logo on both the bottle and the closure, enhancing its premium aesthetic.

One of the significant advantages of this innovative packaging is its reduced weight. The paper-based bottle is approximately 60% lighter than the traditional glass bottle, contributing to a reduction in transportation emissions. Initial life cycle analysis indicates a potential reduction in carbon emissions by up to 47% compared to the standard Johnnie Walker Black Label glass bottle.

The closure of the bottle is a result of collaboration with PulPac, Setop DIAM, and PA Consulting, combining cork and Dry Molded Fiber paper technology. Although the stopper used in the trial is not yet recyclable, alternative sustainable solutions are currently in development.

Significance for Sustainability in the Spirits Industry

Jennifer English, the Global Brand Director for Johnnie Walker, emphasized the company's dedication to innovation and sustainability. She stated, "We are constantly pushing the boundaries of innovation to not only deliver the premium quality and iconic design our customers expect from us but to do so in a way that reflects our sustainability ambitions."

This trial represents a significant stride towards reducing the environmental impact of packaging in the spirits industry. By exploring alternative materials like paper, Diageo is addressing the growing consumer demand for environmentally friendly products. The initiative aligns with global efforts to reduce plastic usage, minimize waste, and lower greenhouse gas emissions.

Jamie Stone, Design and Innovation Expert at PA Consulting, highlighted the groundbreaking nature of the project: "These bottles break new ground in packaging design and show the potential to significantly reduce carbon emissions while maintaining the elegance, luxury, and bottle size expected in the premium drinks market."

The Role of Lightweighting in Sustainable Packaging

While Diageo explores paper-based bottles, industry experts advocate for another effective strategy: lightweighting glass bottles. At the inaugural Sustainability in Drinks (SID) event on October 16, 2024, a panel of specialists discussed the future of glass bottle packaging and its impact on sustainability.

Encirc's ZE30 Project

Robin Thompson, Head of Technical at glass company Encirc, introduced the company's ambitious ZE30 project, which aims to achieve zero emissions by 2030. Key components of this initiative include:

  • Increased Recycled Content: Raising the recycled material in glass bottles from the current 40% to 60% by 2030.
  • Energy Efficiency: Exploring the use of green hydrogen fuel and altering glass compositions to reduce melting temperatures, thereby decreasing energy consumption.
  • Lightweighting Bottles: Focusing heavily on reducing the weight of glass bottles without compromising their integrity.

Thompson emphasized the importance of lightweighting:

"We want to go back to the base and challenge some of the norms and inbuilt beliefs about materials that are used to make glass and glass composition."

The Environmental Impact of Bottle Weight

Dr. Peter Stanbury, Head of Research at the Sustainable Wine Round Table, highlighted that the glass bottle constitutes approximately 50% of a wine's total carbon footprint. Reducing bottle weight is a straightforward yet impactful way to decrease emissions.

Stanbury stated:

"Reducing bottle weight is something of a no-brainer. We concluded that there is no reason wines should be served in bottles heavier than 420 grams. That’s a 25% reduction in the average current weight, which would be a 12.5% reduction in the carbon footprint of that bottle."

Challenges and Consumer Perception

Despite the clear environmental benefits, lightweighting glass bottles presents challenges, particularly concerning consumer perceptions of quality and luxury.

Consumer Expectations

Dr. Laura Catena, Managing Director at Catena Zapata winery, noted that consumers often associate heavier bottles with premium quality:

"I know producers who have lowered their weight significantly and have seen a drop in sales. A lot of people expect these heavy bottles."

This perception poses a dilemma for brands aiming to reduce their carbon footprint without alienating customers who equate heft with luxury.

Strategies to Maintain Premium Feel

To address this challenge, Catena suggested enhancing other aspects of the packaging to retain a sense of indulgence:

  • Innovative Label Design: Investing in high-quality, aesthetically pleasing labels can compensate for the reduced weight, maintaining the premium appeal.
  • Material Quality: Using high-quality glass, even in lighter bottles, ensures durability and a premium feel.

Catena drew an analogy with the luggage industry:

"We used to have all these heavy suitcases where the fancier ones were heavier. You’d never buy that now because the suitcase people were able to make something very lightweight and beautiful. And that’s something we can do too by focusing on things like the label."

Previous Innovations and Trials

Diageo's commitment to sustainable packaging is not new. Earlier in 2024, the company conducted a successful trial of a miniature 80ml paper-based bottle for Baileys during the Time Out Festival in Barcelona. The learnings from that trial informed the development of the more complex Johnnie Walker bottle design.

Additionally, Diageo introduced the Johnnie Walker Blue Label Ultra, the world's lightest whisky glass bottle, weighing just 180 grams without the stopper. Although currently a design experiment, this initiative reflects Diageo's ongoing efforts to explore various avenues for reducing packaging weight and associated carbon emissions.

Other sustainable packaging efforts by Diageo include the launch of a 70cl aluminum spirits bottle with Baileys, a global licensing agreement with ecoSPIRITS to promote circular economy technologies, and the removal of cardboard gift boxes in its premium Scotch portfolio to reduce excess packaging.

Implications for Alcohol Marketing Leaders and Brand Owners

The introduction of a paper-based bottle for a premium whisky like Johnnie Walker Black Label presents several strategic considerations for alcohol marketing leaders and brand owners.

Embracing Sustainability as a Core Strategy

Diageo's initiative underscores the importance of integrating sustainability into the core business strategy rather than treating it as an add-on. Consumers are increasingly conscious of the environmental impact of their purchases, and brands that prioritize sustainability can gain a competitive edge.

Marketing leaders should assess their current packaging and explore sustainable alternatives that align with their brand values. Investing in research and development to innovate in packaging can lead to long-term benefits, both environmentally and economically.

Navigating Operational Challenges

Introducing new packaging formats requires careful consideration of operational logistics. In the on-trade environment, factors such as durability, ease of use for bartenders, and consumer perception play critical roles.

Brand owners need to collaborate closely with production teams and supply chain partners to ensure that new packaging solutions are practical and scalable. Training for staff and clear communication about the benefits of the new packaging can facilitate a smoother transition.

Leveraging Collaborative Innovation

Diageo's partnership with PA Consulting and PulPac illustrates the value of cross-industry collaboration in driving innovation. By working with experts in design and sustainable materials, Diageo was able to develop a pioneering product that might have been challenging to create independently.

Alcohol brands should consider forming strategic partnerships with technology firms, sustainability experts, and other relevant organizations to accelerate innovation and share knowledge.

Multimedia: Diageo's Video

To provide deeper insights into this initiative, Diageo has released a four-minute video where company experts address common questions about the paper-based bottle trial. This video offers valuable perspectives on the technology used, challenges encountered, and the future of sustainable packaging in the spirits industry.

Including such a video in your brand communications can enhance understanding and engagement among stakeholders. It serves as an educational tool that underscores the company's transparency and commitment to sustainability.

Conclusion

Diageo's paper-based bottle trial for Johnnie Walker Black Label represents a significant milestone in the spirits industry's journey towards sustainability. Simultaneously, the emphasis on lightweighting glass bottles, as advocated by industry experts, highlights another critical avenue for reducing carbon emissions. By pioneering innovative packaging solutions and challenging traditional norms, companies like Diageo and Encirc set a precedent for others to follow.

For alcohol marketing leaders and brand owners, these initiatives highlight the critical importance of sustainability in today's market. Embracing sustainable packaging — whether through alternative materials or lightweighting — can lead to substantial environmental benefits and meet evolving consumer expectations. By strategically navigating operational challenges, leveraging collaborative innovation, and redefining luxury perceptions, brands can contribute positively to the environment while maintaining market competitiveness.

Author Bio: Vas Art is a Head of Marketing at OhBEV with over 16 years of experience in the alcohol industry. He specializes in brand marketing,  verbal & visual communication strategies, and omni-channel alcohol marketing campaigns.
https://www.linkedin.com/in/vasylart/

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