Increasingly strong position in eco-smart packaging
The BioPak business area offers environmentally sound concepts for meal packaging and serving products for applications including take-away, ready-to-eat meals, and various types of catering. The business area’s customers are various types of restaurants with take-away concepts and companies that are active in the health and patient-care sectors. Stores and other food producers are also major customers. The business area’s products and services are currently sold under both the Duni and BioPak brands, but the goal is for the business area to primarily represent the BioPak brand. The business area is the market leader in Australia, and the BioPak brand is now being launched in Europe. The business area accounted for approximately 47 percent (42) of the Group’s net sales in 2021.
2,399
Net sales amounted to SEK 2,399 million (1,874).
186
Operating income was SEK 186 million (142).
7.7 %
The operating margin was 7.7 % (7.6 %).
Circular disposable products in demand
The BioPak business area continues to experience strong demand, driven by take-away products. In 2021, the brand platform was further developed.
With another turbulent year, it was only at the end of the year that we had a resource and structural base within the organisation. Although 2022 will be the year when it takes off and we start to see results, we laid the foundations in 2021.
Perhaps the biggest achievement of the year was the creation of a digital platform to support our communication around the BioPak brand in Europe and our sustainable product range. We started a communication and marketing journey to clarify the brand. Almost all product development in the past year was done from a sustainable BioPak perspective. The environmentally smart products previously sold under the Duni brand will continue to be sold under the BioPak brand.
In 2021, BioPak’s entire product portfolio in Europe also became climate neutral through carbon offsetting. We have supported two conservation projects focusing on biodiversity and carbon sequestration.
Continued strong demand
During the year, a market entry in Europe was initiated and is well under way. We continue to see very strong demand, especially for take-away products.
Actually, we could have sold even more. However, electricity shortages in Asia and container shortages on the world market had a negative impact on the supply of goods. We have 30–40 percent growth on many of the products we source. Problems with the supply of goods meant that we could not fully meet the growing demand.
Sustainability throughout the life cycle
We are looking at how we can redirect our purchasing to bring production closer to customers. Shorter delivery times are one reason, but the Group’s consistent focus on sustainability is of course also extremely important. However, one should not count out the products from Asia. Some products, such as those made from bagasse, a fiber-based residue from sugar cane, have many good qualities, but is not manufactured in Europe.
Our strong focus on circular disposables is not only about developing products that are environmentally sound in themselves, but also about ensuring that they are environmentally sound in the end-of-life phase of the product in various markets. This affects the type of products we need to develop, but also increases the need for collaboration and for us to enter into the right partnerships. Read more about our collaboration with &Repeat further down this page.
”Our strong focus on circular disposables is also about ensuring that products are environmentally sound at the end of their life cycle.”
Mats Lindroth, Executive Vice President, Business Area BioPak
Product range
Products for serving meals, on-site or take-away.
2021 product launches
- Sealable fiber solutions for Duniform®
- Take-away solutions in carton and bagasse
- Wooden and paper cutlery
Customer segments
- Fast casual
- Cafés
- Fast food
- Public sector
- Events and catering
- Other
Lea Maguero, BioPak Australia
3 Questions:
The BioPak business area consists of two parts: BioPak Europe and the original, Australian BioPak – in which Duni Group owns 75 percent – which is the market leader in Australia and New Zealand. We asked Lea Maguero, Environment & Sustainability Manager, three questions:
What were your highlights of 2021?
“We launched Compost Connect, a unique, non-branded and non-profit initiative to reduce the amount of organic waste going to landfill. It links food companies with composting companies and suppliers of certified compostable packaging. In Australia , every tonne of organic waste collected and processed reduces about half a tonne of greenhouse gas emissions”.
You are a so-called B Corporation (B Corp). What does that mean?
“B Corps are companies that voluntarily meet very high social and environmental standards. It’s a tough third-party certification with a detailed analysis of the company’s impact on all stakeholders. As a B Corp, we give 5 percent of our profits back to social and environmental initiatives, such as rainforest restoration. The certification shows that we are serious and attracts many environmentally conscious and competent employees”.
What are your plans for 2022 and beyond?
“We continue to develop solutions to replace single-use plastics in the food industry. In addition, we will expand Compost Connect to offer sustainable end solutions for both our products and food waste”.
Interesting deposit system for increased circularity
As we move towards circular solutions, we need to take responsibility together with our customers and partners for what happens when single-use packaging has been used up.
It is important work. In Sweden, 2 billion take-away packages are used every year. Less than 15 percent of these are currently recycled. In comparison, 85 percent of returnable PET bottles and aluminum cans are recycled.
In 2021, we started a collaboration with Swedish start-up &Repeat. Founded in 2020, the company offers the world’s first deposit system for single-use packaging. Their digital, app-based solution helps restaurants and offices recycle packaging by creating an incentive for consumers. Each time they return packaging, they receive a so-called Repeat Credit that can be used to buy new food or drinks.
A record year for launches
The BioPak business continues to show a very positive development. “Looking at the last ten years, 2021 is a record year in terms of the number of eco-smart solutions launched, totaling around 150 products across different product families. It is a mix of some simpler developments and completely new and unique concepts,” explains Tomasz Doweyko, Marketing Director BioPak.
One reason is that BioPak has a large range, where older plastic-based products need to be replaced by environmentally improved alternatives. The EU Plastics Directive has accelerated the transition that was already underway.
The increase in sales of take-away products during the pandemic further builds on the already upward trend of the category.
“Demand is very strong and it is really the right time to offer a wide range of environmentally oriented products”, says Tomasz. “We are continuously working to develop new attractive products and unique concepts, so that our customers continue to see us as a partner that drives development and strengthens their sustainability profile”.