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Labelling the environmental characteristics of a product, for example its carbon footprint and water consumption, is becoming increasingly popular in a number of markets.

In the US, retailer Wal-Mart obliges some of its suppliers to make certain environment indicators known, and in the UK highlighting a product’s carbon usage is becoming more common via the carbon footprint scheme.

For the moment none of these schemes are mandatory, however, within the Grenelle Law for the environment, the French government would like to make the labelling of a number of environmental indicators on certain products a legal requirement from January 2011.

However, with only 11 months before companies will be asked to make certain details public, relatively few appear to be aware of the work involved, according to Philippe Osset from PricewaterhouseCoopers, speaking at the PCD congress on cosmetics and perfume packaging held this week in Paris.

His advice to cosmetic and packaging companies present at the congress was to get involved with the working groups organised by the French environment agency ADEME. In addition, Osset advised companies to begin looking at their products’ resource and energy consumption via a life cycle assessment sooner rather than later.

The motivation behind the move by the French government is not to cut out market access for products that don’t fit certain requirements for energy and resource consumption, but instead to help push manufacturers to design more eco-friendly products, he said. However, not everyone is in agreement that this move will have the desired effect.

Primarily, it is far from clear how the data can be presented in a clear and meaningful way to consumers. If raw data is shown, illustrating the amount in grams of carbon dioxide produced and water used, it is unlikely consumers will know how to interpret it. In addition, it is difficult to calculate these values with a strict degree of accuracy; 27g could be as much as 37g and as little as 17g for example, making exact numbers misleading.

The information could be presented by letters, A for good, B middling and C for poor performance, but it is unclear whether these classes would be sensitive enough to show progress made by companies over time.

Even if the data is presented in a meaningful way, some remain unconvinced that it will change consumer’s purchasing habits; one of the key drivers of environmentally friendly design.

“I don’t think a consumer will choose a product that has a smaller carbon footprint over one that promises to reduce wrinkles and make you look ten years younger” said fellow conference speaker Nicholas Thorne, innovation and development director at Alcan Packaging Beauty.

Sustainability Summits
The role of eco-labels in the food and beauty industries are extensively covered in Organic Monitor's summits. The summits also look at how to reduce the environmental impact of food & beauty products, with papers given by key industry figures. 

Source: Cosmetics Design Europe

Dutch food group Wessanen has set a target of being the "organic food champion" in its European markets as the business continues to offload its operations in the US.

In the last year, Wessanen has stated its ambition to quit the US and has sold operations on both sides of the Atlantic.

On the day when the company named a permanent CEO, the group said its business would comprise three units - Wessanen Europe, Frozen Foods and American Beverage Corp. (ABC).

The group said it would look to sell ABC next year, while its focus within frozen foods would be to "revitalise" its Beckers brand.

Wessanen Europe would look to build its presence in the "attractive and growing" organic food sector.

The company plans to set up a "European organic expertise centre", as well as "harmonising" a wider portfolio of over 40 brands.

The group also stated an aim to build revenues from Wessanen Europe of over EUR 1bn through organic growth and acquisitions, although the business did not issue a timetable for that growth.

Organic Monitor Comment
Wessanen is in a prime position to become the organic food champion of Europe. It has a strong presence in several European countries, involved in the production and distribution of organic products. The Dutch company is also active in related health food sectors, such as dairy alternatives and natural foods. Its major challenge is to build synergies between its existing businesses and acquire companies that fit neatly into the 'royal empire'.

Source: AROQ / Organic Monitor
 

Oatly AB is pushing forward its plan to build manufacturing plants in China. Europe's leading manufacturer of oat-based dairy alternatives aims to invest in China to target the burgeoning domestic market.

Company chairman Mr. Borg says, 'We did not even know that China is the fourth largest oat milk maker in the world.'

Target customers of Oatly AB in China are 230 million school students aged between 7 and 18. Now the company is working together with Chinese foods authorities on a pilot program: providing 250 pupils in two primary schools in Beijing with tailor-made oat milk each day.

Moreover, it also targets people living with the Lifestyles of Health and Sustainability (LOHAS).

Looking ahead, Oatly AB will also set up its own distribution and logistics centers in China after building plants there. But first, it will spend about 12 months making sense of the local market in China.

Organic Monitor Comment
Oatly AB is looking to build upon its success in the European market by expanding in Asia. The Swedish company has pioneered the oat drinks market since its initial product launch in 1995. The popularity of its oat drinks makes Sweden the only country in the world where soya is not the number one dairy milk substitute.

Oatly AB capitalised on its success by expanding to other European markets. International sales now dwarf its home market sales. Research by Organic Monitor shows it is already the number one brand of oat drinks in South-East Asia. By having a direct presence in China, Oatly AB could become the world's premier producer of oat-based dairy alternatives.

Source: SinoCast / Organic Monitor