Tetra Pak

Tetra Pak, (of Swedish origin), is a multinational food packaging company.

History

Tetra Pak's first product was a revolutionary paper carton used for storing and transporting milk. The first product was called Tetra Classic. Rausing had been working on the design since 1943, and by 1950 had perfected techniques for making his cartons fully airtight, using a system of plastic coated paperboard. These initial cartons were tetrahedrons having 4 sides, leading to the company's name, which means "four" in Greek. In 1952 The first Tetra Classic package was launched, and later in 1963 the company introduced Tetra Brik, a rectangular carton.

Ruben Rausing's son Hans Rausing ran Tetra Pak from 1954 until 1985, taking the company from a seven-person concern to one of Sweden's largest corporations. Before his death in 1983, Ruben Rausing was Sweden's richest person.

Tetra Pak was founded on the concept that a package should save more than it costs.

Business

Tetra Pak is the world's largest supplier of cartons and bottles for milk, soup, fruit juices, and other liquid products, and the company also manufactures machinery used for food packaging and processing. It offers a wide range of packaging alternatives from cartons to PET and EBM plastic bottles. And apart from providing carton and plastic materials Tetra Pak also designs and manufactures key equipment, such as homogenisers, mixing and standardisation units, heat exchangers, system and plant components. It focuses on five food categories; dairy, cheese, beverage, prepared food and ice cream.

It comprises three divisions: Ambient, Chilled and Processing. Each of these divisions works in partnership with its Market Companies.

For most people, Tetra Pak is synonymous with carton packages for milk, juice and beverages. In recent years, Tetra Pak launched a marketing campaign stating that "Tetra Pak is a company, not a package". It stated that it has many packages with names like Tetra Classic, Tetra Wedge, Tetra Rex, Tetra Top and Tetra Brik, but that not one is called "Tetra" or "Tetra Pak".

In general, Tetra Pak is "the only international company in the world able to provide integrated processing, packaging, and distribution line and plant solutions for liquid foods".

Tetra Pak produces packaging material at 59 plants, 77 marketing offices (Market Companies) and has over 20,150 employees around the world. Every day more than 200 million Tetra Pak packages are distributed in over 165 markets.

Early in 2004, when the Parmalat scandal broke in mid-December, there were reports that the Tanzi family directly benefited from some improper activities. Investigators said the company’s former chief financial officer reported that Parmalat's packaging supplier, Tetra Pak, had paid the Tanzis millions in kickbacks. Tetra Pak denied any wrong-doing. It claimed that Parmalat, as a major customer for many years, benefited from marketing support and discounts on packaging material. The discounts to Parmalat, it said, are similar to those that benefit other large customers.

Technology

Soon after the company was formed, Tetra Pak management sought ways to expand into markets and technologies beyond fresh milk products. During the mid 1950s, Tetra Pak launched joint research and development efforts with Ursina, a Swiss company that had developed a new technique for sterilising milk. By using steam injection, Ursina was able to produce sterilised milk with virtually the same taste and nutritional values as fresh milk.

The challenge for Ursina was to find an economical way to package the milk. The combination of the Swiss sterilisation process with the Swedish packaging technology was a natural. In September 1961, the first aseptic filling machine for bacteria-free milk was presented at a press conference in Thun, Switzerland. The technology is due to serve for ambient storage, protect the nutritional quality of the contents and remove the need for preservatives. This is reflected in the company's global strapline "Protects what's good" which has featured in its recent high profile Carton Promotion Campaign communicating the benefits of cartons to the consumer.

Aseptic processing involves heating the product to a high temperature (135–150 degrees Celsius in the case of milk) in a closed system for a few seconds, then force cooling it to room temperature. The heating process used is called ultra-high temperature processing (UHT). While the high level of heat removes all microorganisms, its short duration causes less damage to nutrients and flavour compounds than traditional pasteurization and canning, which use a lower temperature, but a significantly longer holding time.

Aseptic packaging involves transferring the UHT-treated product into pre-sterilised packages in a sterile environment. A main difference between pasteurised and UHT-treated products is that the latter can remain fresh for months without the need for refrigeration.

In July 2004, it launched Tetra Recart in the U.S.A. Using retorting technology or in-container sterilization, the company became able to provide an alternative packaging solution for a variety of food products that have traditionally been packed in cans or glass jars such as fruits, vegetables, ready meals and Pet foods.

In January 2005, Tetra Pak announced the world's first microwavable aseptic package aimed at the growing market in prepared sauces for both retail distribution and food services. It is placed directly in a microwave oven after full opening and takes a minute or two to heat, depending on the product and microwave power.

Acquisitions and divestitures

Alfa Laval was a part of the Tetra Pak Group between 1991 and 2000. In 1991, Alfa Laval Agri, a company producing dairy and farming machinery was split from Alfa Laval. When Alfa Laval was sold, Alfa Laval Agri remained a part of the Tetra Pak group and was renamed DeLaval, after the company's founder, Gustaf de Laval.

Company in figures

During and at the end of 2005 (^*)

Net sales in MEUR: 8,109
Employees: 20,261

Ownership

Tetra Laval SA: 100%

Tetra Pak in the art world

452 x 157 cm^2 global durability: A project by Patrick Hoenninger and Austrian art group monochrom to collect milk packages in many countries. The standardized format of the Tetra Pak offers a world-wide frame for creative variation, which becomes visible on the 9.5 by 16.5 cm front of the packaging. According to the project description, the relation to pop art not only exists in an aesthetic but also in a social dimension, reminiscent of Walter Benjamin's "The Work of Art in the Age of Its Technological Reproducibility."

External links

Tetra Pak - Official site
Webpackaging - Product Innovations from Tetra Pak are available in this Web Site

Data

Yahoo! - Tetra Laval SA Company Profile

Companies of Sweden | Lund | Packaging companies

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