Sca Shape Magazine Issue 2 2007

shape

a magazine from sca on trends, markets and business Nº 2 2007

cafés clean up their act packaging that saves lives how to sell taboo products

Analysts with an eye on the earth camera: A room of one’s own

TALK IS CHEAP efining d e r s 8 TREND ow it n k e w s a media

Eight shareholders talk SCA

*

Kids as a trend

*

Turning waste to energy



epahs

04 Shape up

Which famous tennis star recommends buying SCA shares? What is the name of the world’s largest retail chain? Find out in Shape Up.

06 Shape cover

14

Contents Nº 2 2007

The world reads more print news than ever. But many publishers are in trouble. Shape looks at the trends changing the media map.

14 Trends

Read how to market tricky products, why kids have become a trend and about packaging that can save lives.

20 Profile

Shape meets Susanna Jacobson, a London-based analyst who keeps track of the intersection where global warming and business meet.

24 Technology

The new soda recovery boiler can provide an entire pulp mill with heat and electricity.

26 SCA Inside

What do small stockholders think about SCA? Shape meets eight who attended the recent annual meeting. Read more of what’s on the way at SCA.

30 camera

Exclusive or plain. Camera peeks into the most private of all rooms: the WC. Shape investigates megatrends in the world of media

6

The Future

of newspapers

34 shaping a view

Between 2005 and 2010, SCA will lower its water consumption by 15 percent. Daniel Solberg, in charge of SCA’s Water Network, explains how.

20 24

SCA Shape is a magazine from SCA Address SCA, Communications and Investor Relations, Box 7827, 103 97 Stockholm Telephone +46 8 788 5100 Fax +46 8 678 8130 Publisher Bodil Eriksson Managing editor Anna Selberg Editorial Anna Selberg, SCA and Göran Lind, Kristin Päeva, Appelberg Design Mats Wester, Appelberg Printer Sörmlands Grafiska Quebecor AB, Katrineholm Cover photo Pysse Holmberg

isn’t bleak, it’s just

different.

30

SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only by permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

[ 2 *2007 ] SHAPE SCA *



epahs

04 Shape up

Which famous tennis star recommends buying SCA shares? What is the name of the world’s largest retail chain? Find out in Shape Up.

06 Shape cover

14

Contents Nº 2 2007

The world reads more print news than ever. But many publishers are in trouble. Shape looks at the trends changing the media map.

14 Trends

Read how to market tricky products, why kids have become a trend and about packaging that can save lives.

20 Profile

Shape meets Susanna Jacobson, a London-based analyst who keeps track of the intersection where global warming and business meet.

24 Technology

The new soda recovery boiler can provide an entire pulp mill with heat and electricity.

26 SCA Inside

What do small stockholders think about SCA? Shape meets eight who attended the recent annual meeting. Read more of what’s on the way at SCA.

30 camera

Exclusive or plain. Camera peeks into the most private of all rooms: the WC. Shape investigates megatrends in the world of media

6

The Future

of newspapers

34 shaping a view

Between 2005 and 2010, SCA will lower its water consumption by 15 percent. Daniel Solberg, in charge of SCA’s Water Network, explains how.

20 24

SCA Shape is a magazine from SCA Address SCA, Communications and Investor Relations, Box 7827, 103 97 Stockholm Telephone +46 8 788 5100 Fax +46 8 678 8130 Publisher Bodil Eriksson Managing editor Anna Selberg Editorial Anna Selberg, SCA and Göran Lind, Kristin Päeva, Appelberg Design Mats Wester, Appelberg Printer Sörmlands Grafiska Quebecor AB, Katrineholm Cover photo Pysse Holmberg

isn’t bleak, it’s just

different.

30

SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only by permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

[ 2 *2007 ] SHAPE SCA *

illustration: getty images

shape up

Stefan Edberg likes SCA

eastern europe buying locally

photo: ibl bildbyrå

■ Only three of the 10 largest retailers in eastern Europe are international, according to a report from the British research firm Planet   Retail. Those that have succeeded in establishing operations in markets in eastern Europe are the German company Metro, the French firm Auchan and the Turkish retailer Migros Türk. Otherwise, the market is dominated by domestic chains such as X5 and Magnit in Russia or Fozzy and Furshet in Ukraine.

India soon the fifth-largest market If India continues its high rate of growth, the Indian consumer market will go from being the 12th largest in the world to the fifth largest in 2025, according to a report from the consulting firm McKinsey. The middle class in India is expected to grow from 50 million today to almost 600 million in 2025. At the same time, nearly 300 million Indians will be lifted out of poverty. This consumption pattern in India is also influenced by urbanization in the country. Today 42 percent of Indians live in metropolitan areas. By 2025, that figure is expected to reach 62 percent.

on the rise

Eastern Europeans prefer domestic retailers. However, German Metro is successfully established in the east.

Sales in million USD, percentage of sales abroad

*SCA SHAPE [ 2 *2007 ]

photo: istockphoto

photo: ibl bildbyrå

More can buy Barbie. By 2025, 600 million are expected to join India’s middle class.

A lack of hand hygiene among employees in healthcare causes about 5,000 deaths every year in Britain, according to a new study from City University in London. The infections spread by healthcare workers could have been prevented by simply washing their hands, according to the study. In the US, the dirty hands of healthcare workers infect 5 percent of patients.

In Europe, some 65 percent of the annual growth in forests is harvested, which means a surplus of about 250 million cubic meters a year, according to the United Nations Economic Commission for Europe. The growth in Europe’s forests offsets the increase in carbon dioxide emissions. It is estimated that one cubic meter of forest absorbs about one ton of carbon dioxide.

paperboard The 10 largest retailers in the world in 2006

Dirty hands a killer

250 million cubic meters of new forest

  1 Wal-Mart, USA

376 430

22%

  2 Carrefour, France

122 214

53%

  3 Metro Group, Germany

87 360

55%

  4 Tesco, Britain

86 827

25%

  5 Seven & I (2) Japan

79 101

34%

  6 Ahold, Netherlands

77 546

82%

  7 Kroger, USA

69 549

0%

  8 Sears, USA

64 833

12%

  9 Costco, USA

64 737

20%

10 Target, USA

62 584

0%

source: Planet Retail

Demand for paperboard as a packaging material continues to grow. In 2006, sales increased 2.4 percent to almost 5 million tons in western Europe, according to figures from CEPI, the Confederation of European Paper Industries. In Germany,   the largest market, sales increased   5 percent, PackNews reports. Paper and paperboard thus defend their position as   the most frequently used packaging material in Europe. Their share is estimated at roughly 50 percent, versus 24 percent for plastic, 18 percent for glass and 8 percent for metal packaging.

[ 2 *2007 ] SHAPE SCA *

PHoto: erich blunck

■ Former tennis champion Stefan Edberg not only   has six Grand Slam titles under his belt, but he’s also a passionate investor. Edberg, who earned 20 million dollars in prize money during his career, now spends some 20 hours a week in front of a stock screen. In the Swedish monthly magazine for investors Aktiespararen he revealed his savings strategy of holding a percentage of his savings in shares equal to 100 minus his age (he’s now 41). He says SCA is one of his five favorite stocks.

illustration: getty images

shape up

Stefan Edberg likes SCA

eastern europe buying locally

photo: ibl bildbyrå

■ Only three of the 10 largest retailers in eastern Europe are international, according to a report from the British research firm Planet   Retail. Those that have succeeded in establishing operations in markets in eastern Europe are the German company Metro, the French firm Auchan and the Turkish retailer Migros Türk. Otherwise, the market is dominated by domestic chains such as X5 and Magnit in Russia or Fozzy and Furshet in Ukraine.

India soon the fifth-largest market If India continues its high rate of growth, the Indian consumer market will go from being the 12th largest in the world to the fifth largest in 2025, according to a report from the consulting firm McKinsey. The middle class in India is expected to grow from 50 million today to almost 600 million in 2025. At the same time, nearly 300 million Indians will be lifted out of poverty. This consumption pattern in India is also influenced by urbanization in the country. Today 42 percent of Indians live in metropolitan areas. By 2025, that figure is expected to reach 62 percent.

on the rise

Eastern Europeans prefer domestic retailers. However, German Metro is successfully established in the east.

Sales in million USD, percentage of sales abroad

*SCA SHAPE [ 2 *2007 ]

photo: istockphoto

photo: ibl bildbyrå

More can buy Barbie. By 2025, 600 million are expected to join India’s middle class.

A lack of hand hygiene among employees in healthcare causes about 5,000 deaths every year in Britain, according to a new study from City University in London. The infections spread by healthcare workers could have been prevented by simply washing their hands, according to the study. In the US, the dirty hands of healthcare workers infect 5 percent of patients.

In Europe, some 65 percent of the annual growth in forests is harvested, which means a surplus of about 250 million cubic meters a year, according to the United Nations Economic Commission for Europe. The growth in Europe’s forests offsets the increase in carbon dioxide emissions. It is estimated that one cubic meter of forest absorbs about one ton of carbon dioxide.

paperboard The 10 largest retailers in the world in 2006

Dirty hands a killer

250 million cubic meters of new forest

  1 Wal-Mart, USA

376 430

22%

  2 Carrefour, France

122 214

53%

  3 Metro Group, Germany

87 360

55%

  4 Tesco, Britain

86 827

25%

  5 Seven & I (2) Japan

79 101

34%

  6 Ahold, Netherlands

77 546

82%

  7 Kroger, USA

69 549

0%

  8 Sears, USA

64 833

12%

  9 Costco, USA

64 737

20%

10 Target, USA

62 584

0%

source: Planet Retail

Demand for paperboard as a packaging material continues to grow. In 2006, sales increased 2.4 percent to almost 5 million tons in western Europe, according to figures from CEPI, the Confederation of European Paper Industries. In Germany,   the largest market, sales increased   5 percent, PackNews reports. Paper and paperboard thus defend their position as   the most frequently used packaging material in Europe. Their share is estimated at roughly 50 percent, versus 24 percent for plastic, 18 percent for glass and 8 percent for metal packaging.

[ 2 *2007 ] SHAPE SCA *

PHoto: erich blunck

■ Former tennis champion Stefan Edberg not only   has six Grand Slam titles under his belt, but he’s also a passionate investor. Edberg, who earned 20 million dollars in prize money during his career, now spends some 20 hours a week in front of a stock screen. In the Swedish monthly magazine for investors Aktiespararen he revealed his savings strategy of holding a percentage of his savings in shares equal to 100 minus his age (he’s now 41). He says SCA is one of his five favorite stocks.

shape cover

In the midst of the digital media revolution, new records for print newspaper readership are being set worldwide. The future is not bleak, it’s just different, says Sverre Munck, executive vice president of international operations for the Norwegian media group Schibsted.

Aging readers. In the US, 60 percent of adults born in the 1930s read a daily newspaper, compared to 40 percent for those born in the 1950s and 20 percent for those born in the 1970s.

Freedom ofatexpression no charge by Mattias Andersson photo GETTY IMAGES

w

The average American adult spends seven and a half hours of each waking day on some form of media consumption; other Westerners show a similar tendency. In rapidly growing economies

like China and India, hundreds of thousands of news-hungry consumers are added each week. Still, there are such hard winds blowing across the newspaper seas that many of the older battleships are set to founder. Heavyweights like The Los Angeles Times and the French daily Libération are tottering on the brink of bankruptcy. At The New York Times – known in the industry as the Gray Lady – the fourth generation of owners, the OchsSulzberger family, are contending with dissatisfied investors demanding a better yield on their money. Newspaper mogul Rupert Murdoch and his News Corp empire have submitted a bid for the institutions Dow Jones and The Wall Street Journal. The bid was described as friendly, but Murdoch’s comments in an interview – that he is “frustrated by the long stories” and

The average American adult spends seven and a half hours of each waking day on some form of media consumption; other Westerners show a similar tendency.”



e find the evidence overwhelming: This is change on the grand scale, driven by a fundamentaltransformation in the connection between humans and information. “The social impact is likely to rival the advent of movable type and mass literacy,” was the finding of the report “Newspaper Next” from the American Press Institute. It continues in a blend of nostalgia, self-criticism and a doomsday atmosphere: “Less than a lifetime ago, the newspaper was the state-of-the-art pipeline, the only comprehensive information feed to tide people over from yesterday to tomorrow. There was no substitute. The near monopoly ended decades ago, but a sense of indispensability still colors the industry’s consciousness.” Taking a quick look, everything should be fine and dandy in the media market. The economy is at full speed in most countries, and readership has never been greater. Never before has an industry had so many people in such a strong grip for such a large part of their waking hours.

[ 2 *2007 ] SHAPE SCA *

shape cover

In the midst of the digital media revolution, new records for print newspaper readership are being set worldwide. The future is not bleak, it’s just different, says Sverre Munck, executive vice president of international operations for the Norwegian media group Schibsted.

Aging readers. In the US, 60 percent of adults born in the 1930s read a daily newspaper, compared to 40 percent for those born in the 1950s and 20 percent for those born in the 1970s.

Freedom ofatexpression no charge by Mattias Andersson photo GETTY IMAGES

w

The average American adult spends seven and a half hours of each waking day on some form of media consumption; other Westerners show a similar tendency. In rapidly growing economies

like China and India, hundreds of thousands of news-hungry consumers are added each week. Still, there are such hard winds blowing across the newspaper seas that many of the older battleships are set to founder. Heavyweights like The Los Angeles Times and the French daily Libération are tottering on the brink of bankruptcy. At The New York Times – known in the industry as the Gray Lady – the fourth generation of owners, the OchsSulzberger family, are contending with dissatisfied investors demanding a better yield on their money. Newspaper mogul Rupert Murdoch and his News Corp empire have submitted a bid for the institutions Dow Jones and The Wall Street Journal. The bid was described as friendly, but Murdoch’s comments in an interview – that he is “frustrated by the long stories” and

The average American adult spends seven and a half hours of each waking day on some form of media consumption; other Westerners show a similar tendency.”



e find the evidence overwhelming: This is change on the grand scale, driven by a fundamentaltransformation in the connection between humans and information. “The social impact is likely to rival the advent of movable type and mass literacy,” was the finding of the report “Newspaper Next” from the American Press Institute. It continues in a blend of nostalgia, self-criticism and a doomsday atmosphere: “Less than a lifetime ago, the newspaper was the state-of-the-art pipeline, the only comprehensive information feed to tide people over from yesterday to tomorrow. There was no substitute. The near monopoly ended decades ago, but a sense of indispensability still colors the industry’s consciousness.” Taking a quick look, everything should be fine and dandy in the media market. The economy is at full speed in most countries, and readership has never been greater. Never before has an industry had so many people in such a strong grip for such a large part of their waking hours.

[ 2 *2007 ] SHAPE SCA *

shape cover

that he rarely reads an article in WSJ all the way to the end – have caused concern about the future. Considering they’re in an industry focused on news, newspaper companies have been surprisingly reluctant to embrace changes in their own operations. In a world characterized by tech-

nological development, cross-border business deals and an aggressive drive to improve productivity, the major newspapers have been remarkable strongholds of conservatism when it comes to their own core activity – the method of packaging and distributing information. Many of the newspapers that are now facing a crash diet developed their bad habits in the shelter of cozy monopolies. Even before computer technology opened the digital floodgates, many were already struggling with escalating costs, cumbersome organizations and a lack of self-awareness. “Traditional paid newspapers have had a long decline, and the trend is continuing, but personally I don’t see the future as bleak,” says Sverre Munck, executive vice president for international operations for the Norwegian media group Schibsted, adding: “Most trends today are headed towards digital. But a strong trend in the printed media is free newspapers, which are growing rapidly. In Spain, for instance, half the newspaper circulation today is free newspapers.” The Schibsted media group started as a printing house in Norway in 1839,

global advance in the newspaper industry

(source: World Association of Newspapers)

*SCA SHAPE [ 2 *2007 ]

We’re not better than others at predicting the future, but we’ve been quickest to adapt to changes.” digital advertising websites finn.no and blocket.se are increasingly important cash cows for Schibsted. “I see the decision to hive off finn.no from Aftenposten and allow it to compete as a separate operation is one of the most important strategic decisions in Schibsted’s history. In order to succeed, you need owners that are willing to pay the price of cannibalizing between different divisions at the start,” Munck notes. After its success with the free

newspaper 20 minutes in France and Britain, Schibsted is eying other countries in Europe. “We have experience with free newspapers and digital development. There, we’re farther along than many others. We’ll be investing considerably more outside Norway and Sweden in the next few years, with the exception of Britain and the US, where they’re already much farther ahead and we don’t have the same advantages,” Munck says. One of the decisive factors is whether newspaper revenues from online advertising can compensate for the future loss of ads in the printed newspaper. Certainly, local ads are growing rapidly, but in the Nordic countries, they still only represent about 10 percent of total ad

revenues, while in most other countries the figure is considerably lower. Once again, Munck sees opportunities in what most people see as a threat. “I believe there will be a second wave of growth after the next economic downturn. By then, many of the established newspapers will also have been knocked out,” he notes. He is more optimistic about the development in printed media globally. “Globally, I strongly believe in growth with Indian and China. They’ll go offline at the same time as going online. It’s incredibly inspiring to see how newspapers develop there,” Munck says. In the rapidly growing econo-

mies, there are new target groups that are hungry for information and now also have money to get it. The situation is the reverse in established markets. “When 20 minutes was launched in Spain, the newspaper El País increased its number of pages. That was a mistake. In France, Le Monde published a supplement once a week which was a summary of The New York Times and was a fantastic product. But that wasn’t the answer to the challenge from free newspapers. Readers don’t want more content in their papers,” says Munck. If the Norwegian experience high-



 1 .4 billion read paid newspapers every day.  In five years, the number of newspaper readers in the world has increased 9.95 percent.  The number of free newspapers increased from 12 million a day in 2001 to 28 million in 2005.

but its successful expansion and investment in digital media over the last ten years have turned this Norwegian company into a role model, its headquarters becoming a place of pilgrimage for delegations from crisis-stricken newspaper companies from far and wide. “We’re not better than others at predicting the future, but we’ve been quickest to adapt to changes,” says Munck. In its Norwegian home market, the media company owns the two largest newspapers, Verdens Gang and Aftenposten, as well as a large number of local papers. In Sweden, the company is part-owner of two of the most noted turnarounds in the national market – the tabloid Aftonbladet and the morning paper Svenska Dagbladet. Both were the number-two papers in their markets, suffered from chronic problems with profitability and had a deeply engrained aversion to any kind of change. The turnaround began first at Aftonbladet, and the newspaper is now the largest in Sweden, particularly online. Svenska Dagbladet has lifted itself out of what was considered to be a permanent crisis and today is a profitable newspaper with a successful online business news venture. Even though newspapers with high profiles are attracting the most attention, it’s in a less glamorous area of traditional newspaper operations that Schibsted celebrated its greatest triumph. With the digital revolution, traditional classified ads have moved online, lost forever as a steady source of income. Today, the

Most trends today are headed towards digital. But a strong trend in the printed media is free newspapers, which are growing rapidly, says Sverre Munck, executive vice president for international operations for the Norwegian media group Schibsted.

[ 2 *2007 ] SHAPE SCA *

shape cover

that he rarely reads an article in WSJ all the way to the end – have caused concern about the future. Considering they’re in an industry focused on news, newspaper companies have been surprisingly reluctant to embrace changes in their own operations. In a world characterized by tech-

nological development, cross-border business deals and an aggressive drive to improve productivity, the major newspapers have been remarkable strongholds of conservatism when it comes to their own core activity – the method of packaging and distributing information. Many of the newspapers that are now facing a crash diet developed their bad habits in the shelter of cozy monopolies. Even before computer technology opened the digital floodgates, many were already struggling with escalating costs, cumbersome organizations and a lack of self-awareness. “Traditional paid newspapers have had a long decline, and the trend is continuing, but personally I don’t see the future as bleak,” says Sverre Munck, executive vice president for international operations for the Norwegian media group Schibsted, adding: “Most trends today are headed towards digital. But a strong trend in the printed media is free newspapers, which are growing rapidly. In Spain, for instance, half the newspaper circulation today is free newspapers.” The Schibsted media group started as a printing house in Norway in 1839,

global advance in the newspaper industry

(source: World Association of Newspapers)

*SCA SHAPE [ 2 *2007 ]

We’re not better than others at predicting the future, but we’ve been quickest to adapt to changes.” digital advertising websites finn.no and blocket.se are increasingly important cash cows for Schibsted. “I see the decision to hive off finn.no from Aftenposten and allow it to compete as a separate operation is one of the most important strategic decisions in Schibsted’s history. In order to succeed, you need owners that are willing to pay the price of cannibalizing between different divisions at the start,” Munck notes. After its success with the free

newspaper 20 minutes in France and Britain, Schibsted is eying other countries in Europe. “We have experience with free newspapers and digital development. There, we’re farther along than many others. We’ll be investing considerably more outside Norway and Sweden in the next few years, with the exception of Britain and the US, where they’re already much farther ahead and we don’t have the same advantages,” Munck says. One of the decisive factors is whether newspaper revenues from online advertising can compensate for the future loss of ads in the printed newspaper. Certainly, local ads are growing rapidly, but in the Nordic countries, they still only represent about 10 percent of total ad

revenues, while in most other countries the figure is considerably lower. Once again, Munck sees opportunities in what most people see as a threat. “I believe there will be a second wave of growth after the next economic downturn. By then, many of the established newspapers will also have been knocked out,” he notes. He is more optimistic about the development in printed media globally. “Globally, I strongly believe in growth with Indian and China. They’ll go offline at the same time as going online. It’s incredibly inspiring to see how newspapers develop there,” Munck says. In the rapidly growing econo-

mies, there are new target groups that are hungry for information and now also have money to get it. The situation is the reverse in established markets. “When 20 minutes was launched in Spain, the newspaper El País increased its number of pages. That was a mistake. In France, Le Monde published a supplement once a week which was a summary of The New York Times and was a fantastic product. But that wasn’t the answer to the challenge from free newspapers. Readers don’t want more content in their papers,” says Munck. If the Norwegian experience high-



 1 .4 billion read paid newspapers every day.  In five years, the number of newspaper readers in the world has increased 9.95 percent.  The number of free newspapers increased from 12 million a day in 2001 to 28 million in 2005.

but its successful expansion and investment in digital media over the last ten years have turned this Norwegian company into a role model, its headquarters becoming a place of pilgrimage for delegations from crisis-stricken newspaper companies from far and wide. “We’re not better than others at predicting the future, but we’ve been quickest to adapt to changes,” says Munck. In its Norwegian home market, the media company owns the two largest newspapers, Verdens Gang and Aftenposten, as well as a large number of local papers. In Sweden, the company is part-owner of two of the most noted turnarounds in the national market – the tabloid Aftonbladet and the morning paper Svenska Dagbladet. Both were the number-two papers in their markets, suffered from chronic problems with profitability and had a deeply engrained aversion to any kind of change. The turnaround began first at Aftonbladet, and the newspaper is now the largest in Sweden, particularly online. Svenska Dagbladet has lifted itself out of what was considered to be a permanent crisis and today is a profitable newspaper with a successful online business news venture. Even though newspapers with high profiles are attracting the most attention, it’s in a less glamorous area of traditional newspaper operations that Schibsted celebrated its greatest triumph. With the digital revolution, traditional classified ads have moved online, lost forever as a steady source of income. Today, the

Most trends today are headed towards digital. But a strong trend in the printed media is free newspapers, which are growing rapidly, says Sverre Munck, executive vice president for international operations for the Norwegian media group Schibsted.

[ 2 *2007 ] SHAPE SCA *

shape cover



DM boosts demand for newsprint

Online operations are king and have to be made the central part of all news company operations.” lights the need for new business models in established companies, the models mean new working methods for editorial boards. “Online operations are king and have to be made the central part of all news company operations,” the American media guru Mario Garcia insists.

needed online, along with texts that, like exciting TV series, captivate readers and persuade them, every twenty lines, to continue on to the next page. One major challenge is to find new business models and revenues. Despite strong growth, online advertising accounts for only a fraction of newspaper revenues.

Garcia is the architect behind

10*SCA SHAPE [ 2 *2007 2006]]

Traditional newspapers also

have faithful readers, like Timothy Balding at the industry organization World Association of Newspapers. He notes that the association’s own figures indicate global growth and a marginal increase in Europe as well: “The growing number of publications in the world has gone unnoticed by many pundits who are obsessed with the digital media revolution. Despite the sharp focus on digital trends, printed newspapers have been responsible for a number of new innovations,” he says and points to printed free newspapers as an example. “I don’t think we’ll see fewer printed media overall, but in the established media companies, the printed paper will no longer have the same central position,” says Garcia, adding that the rumors of the death of the newspaper are premature. “When the art of book printing made its breakthrough, the Church worried that it would empty the pews of worshippers. A few hundred years later, newspapers in the 18th century were supposed to mean the end of the book. None of this happened, and I don’t think newspapers will die out; they’ll just change.” ▲

generally faster than American papers in making the switch, and this is evident in the trend towards stronger demand for newsprint in Europe. “The Internet is now the fastestgrowing advertising medium. However, we see that Internet advertising needs the support of print ads in daily papers or via DM in order to grab consumers’ attention and get them to go to the web to find out more or make their purchases. The volume of direct mail has increased dramatically in recent

8 hot trends in the media industry

1

From monopolY to limitless cyberspace ■ It wasn’t long ago that newspaper moguls were sitting comfortably on their thrones of printing presses and distribution channels. TV and radio stations were often state monopolies or licensors that ran operations in networks with extremely limited bandwidth. With satellite and now digital technology, a lack of space has been transformed into a surplus with relatively low entry thresholds for new players. The advertising pie has grown, but the number of players fighting for a slice of the action has increased many times over.

years and is now consuming enormous amounts of newsprint,” says Rolf Johannesson. He is convinced that consumption of newsprint, while remaining at a stable level in Europe, will increase heavily in developing countries. “The producers that have invested in modern, efficient paper production facilities will be the ones that are best equipped to meet the structural transformation that we are now under-going.”

2. Locals and specialists selling well ■ It’s easier and cheaper today to produce newspapers. This has led to a veritable explosion in the magazine industry with more specialist publications. The same mechanism is at work in the news business – the hunt for unique and clearly defined target groups – which has given rise verksamheten kung och to”On-line more local newspapersär focused måste sättas som den centrala delen on smaller, clearly defined geo- i alla nyhetsorganisationers verksamhet”,w graphic areas. Many local newspapers are already used to working with limited resources and with employees who can write, take photographs and edit their own web pages. The traditional national media have the greatest problem, as they target everybody and thus risk reaching no one.

3. readers taking power from journalists ■ What journalists write about is often not the same thing their audience wants to read about. Readers want more local material, practical advice about their private finances and purchases, and entertainment – especially about royals, if you please. Even editors outside one-party states have had



the design of a number of well-known newspapers like The Wall Street Journal and recently received an award for his new design for the French paper La Tribune. His good news for the newspaper industry is that the basis of operations – choosing and packaging news – provides them with favorable conditions for defending and extending their position in a world awash with information. Alongside search engines like Yahoo and Google and e-trade websites like eBay, media companies are defending their leading positions online. In order to grow and to defend these positions, companies have to sharpen their tools and remember to deliver what readers want, rather than what journalists want to write. “Readers have become more selective and are demanding more from their editors. But readers are still demanding good journalism,” Garcia notes. Journalists that have recently adjusted their texts from broadsheet to the narrower tabloid format now have to learn the rules of the online game. And that doesn’t mean primarily writing shorter texts. In fact, online readers often read longer texts, according to Garcia’s surveys of the American market. However, catchier headlines and strong leads are

Deliver what readers want, rather than what journalists want to write, recommends the American media guru Mario Garcia.

■ Structural changes in the media industry have meant increased demand for newsprint for direct mail. And the outlook is good for dramatic growth in sales of newsprint in developing countries, according to Rolf Johannesson, marketing manager, SCA Graphic Sundsvall. The Internet has sparked a veritable revolution in the dailynewspaper industry. The papers that have been quickest to adapt to the new media also seem to be the ones that are doing best. European newspapers have been

[ 2 *2007 ] SHAPE SCA *11

shape cover



DM boosts demand for newsprint

Online operations are king and have to be made the central part of all news company operations.” lights the need for new business models in established companies, the models mean new working methods for editorial boards. “Online operations are king and have to be made the central part of all news company operations,” the American media guru Mario Garcia insists.

needed online, along with texts that, like exciting TV series, captivate readers and persuade them, every twenty lines, to continue on to the next page. One major challenge is to find new business models and revenues. Despite strong growth, online advertising accounts for only a fraction of newspaper revenues.

Garcia is the architect behind

10*SCA SHAPE [ 2 *2007 2006]]

Traditional newspapers also

have faithful readers, like Timothy Balding at the industry organization World Association of Newspapers. He notes that the association’s own figures indicate global growth and a marginal increase in Europe as well: “The growing number of publications in the world has gone unnoticed by many pundits who are obsessed with the digital media revolution. Despite the sharp focus on digital trends, printed newspapers have been responsible for a number of new innovations,” he says and points to printed free newspapers as an example. “I don’t think we’ll see fewer printed media overall, but in the established media companies, the printed paper will no longer have the same central position,” says Garcia, adding that the rumors of the death of the newspaper are premature. “When the art of book printing made its breakthrough, the Church worried that it would empty the pews of worshippers. A few hundred years later, newspapers in the 18th century were supposed to mean the end of the book. None of this happened, and I don’t think newspapers will die out; they’ll just change.” ▲

generally faster than American papers in making the switch, and this is evident in the trend towards stronger demand for newsprint in Europe. “The Internet is now the fastestgrowing advertising medium. However, we see that Internet advertising needs the support of print ads in daily papers or via DM in order to grab consumers’ attention and get them to go to the web to find out more or make their purchases. The volume of direct mail has increased dramatically in recent

8 hot trends in the media industry

1

From monopolY to limitless cyberspace ■ It wasn’t long ago that newspaper moguls were sitting comfortably on their thrones of printing presses and distribution channels. TV and radio stations were often state monopolies or licensors that ran operations in networks with extremely limited bandwidth. With satellite and now digital technology, a lack of space has been transformed into a surplus with relatively low entry thresholds for new players. The advertising pie has grown, but the number of players fighting for a slice of the action has increased many times over.

years and is now consuming enormous amounts of newsprint,” says Rolf Johannesson. He is convinced that consumption of newsprint, while remaining at a stable level in Europe, will increase heavily in developing countries. “The producers that have invested in modern, efficient paper production facilities will be the ones that are best equipped to meet the structural transformation that we are now under-going.”

2. Locals and specialists selling well ■ It’s easier and cheaper today to produce newspapers. This has led to a veritable explosion in the magazine industry with more specialist publications. The same mechanism is at work in the news business – the hunt for unique and clearly defined target groups – which has given rise verksamheten kung och to”On-line more local newspapersär focused måste sättas som den centrala delen on smaller, clearly defined geo- i alla nyhetsorganisationers verksamhet”,w graphic areas. Many local newspapers are already used to working with limited resources and with employees who can write, take photographs and edit their own web pages. The traditional national media have the greatest problem, as they target everybody and thus risk reaching no one.

3. readers taking power from journalists ■ What journalists write about is often not the same thing their audience wants to read about. Readers want more local material, practical advice about their private finances and purchases, and entertainment – especially about royals, if you please. Even editors outside one-party states have had



the design of a number of well-known newspapers like The Wall Street Journal and recently received an award for his new design for the French paper La Tribune. His good news for the newspaper industry is that the basis of operations – choosing and packaging news – provides them with favorable conditions for defending and extending their position in a world awash with information. Alongside search engines like Yahoo and Google and e-trade websites like eBay, media companies are defending their leading positions online. In order to grow and to defend these positions, companies have to sharpen their tools and remember to deliver what readers want, rather than what journalists want to write. “Readers have become more selective and are demanding more from their editors. But readers are still demanding good journalism,” Garcia notes. Journalists that have recently adjusted their texts from broadsheet to the narrower tabloid format now have to learn the rules of the online game. And that doesn’t mean primarily writing shorter texts. In fact, online readers often read longer texts, according to Garcia’s surveys of the American market. However, catchier headlines and strong leads are

Deliver what readers want, rather than what journalists want to write, recommends the American media guru Mario Garcia.

■ Structural changes in the media industry have meant increased demand for newsprint for direct mail. And the outlook is good for dramatic growth in sales of newsprint in developing countries, according to Rolf Johannesson, marketing manager, SCA Graphic Sundsvall. The Internet has sparked a veritable revolution in the dailynewspaper industry. The papers that have been quickest to adapt to the new media also seem to be the ones that are doing best. European newspapers have been

[ 2 *2007 ] SHAPE SCA *11

shape cover

a tendency to instruct readers and, somewhat rightly, have claimed that journalism is different from producing hot dogs or sneakers. Journalists have often preferred to report on foreign countries than compare telecom rates. In the news arena, these different views weren’t a problem – in any case not on editorial boards – as long as readers in reality had no other alternatives. Today the power of balance has tipped in the readers’ favor, and even highbrow newspapers have been forced to adapt to readers’ demands. There is ongoing debate in a number of fields on topics like the erosion of foreign news reporting, which has suffered the greatest cuts. At the same time, using the Internet, the public can now follow the French elections in Le Monde, American politics in The Washington Post and Indian business developments via a number of lively Indian newspapers on location. Research results, reports and information about the stock market and other matters are freely available online to people who were once reduced to following some stressed foreign correspondent at the national paper in their own distribution area.

5. free for all ■ Free newspapers abound in subway stations and other local-transit junctions in urban areas. The number of free newspapers has increased from 12 million a day in 2001 to 28 million in 2005. At the same time, an everdeclining share of people who read paid newspapers pay full price. Today, most newspapers – purely as an instinct of self-preservation – also give their material away for free online. Exceptions to date have been heavy hitters with unique material aimed at a clear, well-to-do target group like The Financial Times and The Economist. Free news is being set as the norm.

6

4. the hunt for the exlusive reader ■ Quick reactions have become even quicker now that adaptive creature known as man has polished his sorting skills to avoid drowning in a flood of information. The scanner is the new kind of reader who quickly sifts out what is unimportant or already known and rarely reads an article from beginning to end. The time that an average newspaper reader takes to study the front page of the morning paper has shrunk from 25 to 10 seconds. Research also shows that scanners are found to a considerably greater extent among young readers.

It takes the average newspaper reader ten seconds to study the front page of the morning paper. 12*SCA SHAPE [ 2 *2007 ]

the invasion of citizen journalists ■ Citizen newspapers or citizen journalism, as with blogging, was given its start by digital technology. No expensive printing presses are needed on the Internet, and journalists have a direct channel to an audience of billions. The dazzling success story in this genre is Ohmy News, a South Korean online newspaper with 700,000 daily visitors. What makes the newspaper unique is that it is written by amateurs who receive no pay for their work. The newspaper started as a political project. Its founder, journalist Oh Yeon Ho, wanted to balance what he considered to be politically conservative media in his home country. Despite its not-for-profit platform, Ohmy News has operated in the black since 2003 and has started a branch in the US. Nor have its citizen writers come away empty-handed. Readers can easily donate money using their cell phone or credit card for the articles they like best. The record to date is said to be 30,000 dollars. According to founder Oh, the reason for the newspaper’s success is that “in South Korea, we have useful

strengths among the population. They’re well-educated and eager to change the system.” Ohmy News has been an inspiration to friends of citizen journalism the world over. However, elsewhere, the appearance of amateurs has created more problems that it has addressed. The Metro newspaper in Sweden made a big deal out of hiring a group of enthusiasts as local correspondents in Stockholm. But it turned out to take so much energy to administer these untrained enthusiasts that the project was quickly put on the back burner. Still, citizens have made their entry in the media in other ways as well. For major news events, it is increasingly common to have pictures taken by amateurs equipped with the usual camera cell phones and video cameras. Citizen journalism has also come under criticism for promoting the spread of rumors and errors. After Hurricane Katrina, bloggers and amateur reporters were assigned a large share of the blame for exaggerated stories of violence and assaults in the wake of the storm.

The Internet today is swarming with ghost bloggers and empty discussion forums abandoned by their webmasters. The blog trend, as measured in the number of blogs, is thus predicted to plateau this year and then decline over the next few years.”

8

blogs on the decline

7. daily newspapers are not selling news ■ In a connected world, it’s difficult to be the first one out with the news on paper. A survey of Wall Street Journal readers showed that they already knew 60 percent of the most important news of the day when they picked up the paper. Anyone who understands exactly where in the information cycle pure news, background and follow-up stories should be placed can be the reader’s best friend. Now, after a sluggish start, many newspapers have begun to invest in earnest in their online news, which has employed a growing number of journalists. In particular, newspapers with a leading position in national markets have been able to compete in the news race with TV and radio with continually updated news online.

■ With blogs – and their filmed counterpart, vlogs – people other than writers, career politicians and various celebrities have also had an opportunity to keep a diary in public. The wide reaches of the blogosphere provide a habitat for a dizzying array of flora: everyone from professional opinion-makers – politicians, editorial writers and others who have found yet another channel to express their paid views – to individuals conveying private reflections largely of interest to their friends and family. So far, the blog’s main contribution to the media world has been as an experimental workshop for budding media careers and writing projects as well as an important source of information for traditional media in a number of political scandals. These include the departure of the American television personality Dan Rather from his job at CBS after a political blog revealed errors in investigative reporting about President Bush. Blogs have also given semi-official

status to all the gossip circulating on editorial boards and the corridors of politics. PR consultants, lobbyists and marketers use blogs today in the same way that people once used letters to the editor in order to stimulate popular opinion and promote their personal agendas for paying clients. Established players who are worried about the future have staked a claim in their own blog territory with the help of money. One of these is the newspaper mogul Murdoch (News Corporation), who acquired the popular blogging network MySpace. Like established information providers, bloggers have discovered that unique information is required to maintain an audience, and that requires time and effort. The Internet today is swarming with ghost bloggers and empty discussion forums abandoned by their webmasters. The blog trend, as measured in the number of blogs, is thus predicted to plateau this year and then decline over the next few years.

[ 2 *2007 ] SHAPE SCA *13

shape cover

a tendency to instruct readers and, somewhat rightly, have claimed that journalism is different from producing hot dogs or sneakers. Journalists have often preferred to report on foreign countries than compare telecom rates. In the news arena, these different views weren’t a problem – in any case not on editorial boards – as long as readers in reality had no other alternatives. Today the power of balance has tipped in the readers’ favor, and even highbrow newspapers have been forced to adapt to readers’ demands. There is ongoing debate in a number of fields on topics like the erosion of foreign news reporting, which has suffered the greatest cuts. At the same time, using the Internet, the public can now follow the French elections in Le Monde, American politics in The Washington Post and Indian business developments via a number of lively Indian newspapers on location. Research results, reports and information about the stock market and other matters are freely available online to people who were once reduced to following some stressed foreign correspondent at the national paper in their own distribution area.

5. free for all ■ Free newspapers abound in subway stations and other local-transit junctions in urban areas. The number of free newspapers has increased from 12 million a day in 2001 to 28 million in 2005. At the same time, an everdeclining share of people who read paid newspapers pay full price. Today, most newspapers – purely as an instinct of self-preservation – also give their material away for free online. Exceptions to date have been heavy hitters with unique material aimed at a clear, well-to-do target group like The Financial Times and The Economist. Free news is being set as the norm.

6

4. the hunt for the exlusive reader ■ Quick reactions have become even quicker now that adaptive creature known as man has polished his sorting skills to avoid drowning in a flood of information. The scanner is the new kind of reader who quickly sifts out what is unimportant or already known and rarely reads an article from beginning to end. The time that an average newspaper reader takes to study the front page of the morning paper has shrunk from 25 to 10 seconds. Research also shows that scanners are found to a considerably greater extent among young readers.

It takes the average newspaper reader ten seconds to study the front page of the morning paper. 12*SCA SHAPE [ 2 *2007 ]

the invasion of citizen journalists ■ Citizen newspapers or citizen journalism, as with blogging, was given its start by digital technology. No expensive printing presses are needed on the Internet, and journalists have a direct channel to an audience of billions. The dazzling success story in this genre is Ohmy News, a South Korean online newspaper with 700,000 daily visitors. What makes the newspaper unique is that it is written by amateurs who receive no pay for their work. The newspaper started as a political project. Its founder, journalist Oh Yeon Ho, wanted to balance what he considered to be politically conservative media in his home country. Despite its not-for-profit platform, Ohmy News has operated in the black since 2003 and has started a branch in the US. Nor have its citizen writers come away empty-handed. Readers can easily donate money using their cell phone or credit card for the articles they like best. The record to date is said to be 30,000 dollars. According to founder Oh, the reason for the newspaper’s success is that “in South Korea, we have useful

strengths among the population. They’re well-educated and eager to change the system.” Ohmy News has been an inspiration to friends of citizen journalism the world over. However, elsewhere, the appearance of amateurs has created more problems that it has addressed. The Metro newspaper in Sweden made a big deal out of hiring a group of enthusiasts as local correspondents in Stockholm. But it turned out to take so much energy to administer these untrained enthusiasts that the project was quickly put on the back burner. Still, citizens have made their entry in the media in other ways as well. For major news events, it is increasingly common to have pictures taken by amateurs equipped with the usual camera cell phones and video cameras. Citizen journalism has also come under criticism for promoting the spread of rumors and errors. After Hurricane Katrina, bloggers and amateur reporters were assigned a large share of the blame for exaggerated stories of violence and assaults in the wake of the storm.

The Internet today is swarming with ghost bloggers and empty discussion forums abandoned by their webmasters. The blog trend, as measured in the number of blogs, is thus predicted to plateau this year and then decline over the next few years.”

8

blogs on the decline

7. daily newspapers are not selling news ■ In a connected world, it’s difficult to be the first one out with the news on paper. A survey of Wall Street Journal readers showed that they already knew 60 percent of the most important news of the day when they picked up the paper. Anyone who understands exactly where in the information cycle pure news, background and follow-up stories should be placed can be the reader’s best friend. Now, after a sluggish start, many newspapers have begun to invest in earnest in their online news, which has employed a growing number of journalists. In particular, newspapers with a leading position in national markets have been able to compete in the news race with TV and radio with continually updated news online.

■ With blogs – and their filmed counterpart, vlogs – people other than writers, career politicians and various celebrities have also had an opportunity to keep a diary in public. The wide reaches of the blogosphere provide a habitat for a dizzying array of flora: everyone from professional opinion-makers – politicians, editorial writers and others who have found yet another channel to express their paid views – to individuals conveying private reflections largely of interest to their friends and family. So far, the blog’s main contribution to the media world has been as an experimental workshop for budding media careers and writing projects as well as an important source of information for traditional media in a number of political scandals. These include the departure of the American television personality Dan Rather from his job at CBS after a political blog revealed errors in investigative reporting about President Bush. Blogs have also given semi-official

status to all the gossip circulating on editorial boards and the corridors of politics. PR consultants, lobbyists and marketers use blogs today in the same way that people once used letters to the editor in order to stimulate popular opinion and promote their personal agendas for paying clients. Established players who are worried about the future have staked a claim in their own blog territory with the help of money. One of these is the newspaper mogul Murdoch (News Corporation), who acquired the popular blogging network MySpace. Like established information providers, bloggers have discovered that unique information is required to maintain an audience, and that requires time and effort. The Internet today is swarming with ghost bloggers and empty discussion forums abandoned by their webmasters. The blog trend, as measured in the number of blogs, is thus predicted to plateau this year and then decline over the next few years.

[ 2 *2007 ] SHAPE SCA *13

PHOTO: istockphoto

trend

Before, design and designer brands were something incredibly expensive that only a few people bought.”

Booming

distribution chain,” she says. “We sign agreements with all our suppliers and choose products that we stand by.” Among the baby carriages that the store carries are two relatively new brands that have become increasingly common on the sidewalks of Europe: Urban Jungle and Bugaboo. The first Bugaboo baby carriage was introduced in the Netherlands in 1999, and now they are sold in 32 countries. Sales totaled 55 milion euros in 2006, up 28 percent from the previ-

CHILDREN’S MARKET

Fewer and fewer children are being born in Europe, yet the range of products for little ones is bigger than ever. Trend-conscious parents are spending large sums of money on baby carriages and other items that meet their exacting demands for form and function. A European woman today has

on average 1.52 children. Temporary increases have been noted in different areas, but in general the birth rate in the Western world has been on a clear decline over the last few decades. Many women wait until well into their 30s to start a family, when they are well established in the labor force and have a decent salary at their disposal. “The consequences could be that parents are investing more in the few children they have, ” says Hans Lundström, a demographer at Statistics Sweden. This is a theory that is supported by sales statistics. Statistics Sweden’s figures for the Swedish market show that sales of children’s clothing have more than doubled in 10 years, from 42 million euros in 1997 to 95 million euros in 2006. Sales in the toy market increased almost as much, 14*SCA SHAPE [ 2 *2007 ]

from 200 million euros in 1997 to almost 359 million euros in 2006. The birth rate rose somewhat in the first half of this decade – from 1.55 children per woman in 2000 to 1.77 in 2005– but this hardly accounts for the increase in sales of children’s products. The large European chain stores confirm the trend. Prénatal is an international chain for children’s clothing that opened its first store in Milan in 1963. Today the chain has grown to more than 400 stores in eight countries – Italy, Spain, the Netherlands, Greece, Portugal, Mexico, Russia and Cyprus – with annual sales of more than 400 million euros. And there are further plans for expansion. In 2006, Prénatal began a global franchising project aimed at developing the company’s commercial concept in countries where the chain was not yet represented.

Some niche companies are also investing in expansion. Simpleworld is a children’s store in downtown Stockholm that opened its doors in 2003. Now its owners are challenging other entrepreneurs to spread the company’s concept in other directions via franchising. “The business concept was born at the end of the 1990s when I had three children within three years,” says Nina Hahn, president and founder of Simpleworld. “We saw that the market for children’s products was a highly neglected industry. There wasn’t the selection that parents wanted.”

ous year. Bugaboo forecasts growth of 25 percent for 2007. Even though both the large chains and small stores are increasing their sales, the market is far from saturated. Well-known brands like Burberry, Kenzo, Adidas and Nike are updating their collections each season. There are also new “smart gadgets” continually turning up in the market, especially for technologically minded parents. How about a mobile bottle warmer with a 12-volt plug for your car, or a baby video monitor for people who want not only to hear but also to see their sleeping baby from another room? Susanna Lidström

Today’s parents want to live an active life, and for that they need technically advanced baby carriages.

foto: istockphoto

The aim is to base the store’s range

of products on safety, function and design, she says. “Before, design and designer brands were something incredibly expensive that only a few people bought,” Hahn says. “Today, there are new brands that have made a name for themselves, and many established brands have lowered their prices for their children’s collections.” She has also noticed increased awareness and greater social responsibility among suppliers. “Many have introduced codes of conduct and environmental policies that extend from the factory floor through the

Stylish and smart for tomorrow’s parents ■ Today’s parents are more fashionconscious and mobile than previous generations. These are two strong trends that SCA has captured with a couple of this spring’s product launches. Along with the new design diaper – Spring Collection – with fun, trendy patterns, there is a new category of disposable items that make everyday life easier when you’re on vacation, sitting in a café or out shopping.

The products go by the names Easy Change, a disposable changing table mat, and Easy Meal, a disposable bib. “Today, parents of small children often lead really active lives and don’t always change diapers on their changing table at home,” says Fredrik Krook, category marketing manager at SCA Personal Care. “At the same time, our surveys show that many people think the hygiene of public

changing tables is unsatisfactory.” SCA’s surveys, which were carried out by the opinion institute SIFO, also showed that nearly half of all parents are receptive to the idea of disposable bibs. “Many people don’t want to have to wash or wipe off the same old bib,” Krook says. “Easy Meal makes things easy on trips, and going out for a bite to eat doesn’t have to mean a sticky, smelly bib in your bag.”

[ 2 *2007 ] SHAPE SCA *15

PHOTO: istockphoto

trend

Before, design and designer brands were something incredibly expensive that only a few people bought.”

Booming

distribution chain,” she says. “We sign agreements with all our suppliers and choose products that we stand by.” Among the baby carriages that the store carries are two relatively new brands that have become increasingly common on the sidewalks of Europe: Urban Jungle and Bugaboo. The first Bugaboo baby carriage was introduced in the Netherlands in 1999, and now they are sold in 32 countries. Sales totaled 55 milion euros in 2006, up 28 percent from the previ-

CHILDREN’S MARKET

Fewer and fewer children are being born in Europe, yet the range of products for little ones is bigger than ever. Trend-conscious parents are spending large sums of money on baby carriages and other items that meet their exacting demands for form and function. A European woman today has

on average 1.52 children. Temporary increases have been noted in different areas, but in general the birth rate in the Western world has been on a clear decline over the last few decades. Many women wait until well into their 30s to start a family, when they are well established in the labor force and have a decent salary at their disposal. “The consequences could be that parents are investing more in the few children they have, ” says Hans Lundström, a demographer at Statistics Sweden. This is a theory that is supported by sales statistics. Statistics Sweden’s figures for the Swedish market show that sales of children’s clothing have more than doubled in 10 years, from 42 million euros in 1997 to 95 million euros in 2006. Sales in the toy market increased almost as much, 14*SCA SHAPE [ 2 *2007 ]

from 200 million euros in 1997 to almost 359 million euros in 2006. The birth rate rose somewhat in the first half of this decade – from 1.55 children per woman in 2000 to 1.77 in 2005– but this hardly accounts for the increase in sales of children’s products. The large European chain stores confirm the trend. Prénatal is an international chain for children’s clothing that opened its first store in Milan in 1963. Today the chain has grown to more than 400 stores in eight countries – Italy, Spain, the Netherlands, Greece, Portugal, Mexico, Russia and Cyprus – with annual sales of more than 400 million euros. And there are further plans for expansion. In 2006, Prénatal began a global franchising project aimed at developing the company’s commercial concept in countries where the chain was not yet represented.

Some niche companies are also investing in expansion. Simpleworld is a children’s store in downtown Stockholm that opened its doors in 2003. Now its owners are challenging other entrepreneurs to spread the company’s concept in other directions via franchising. “The business concept was born at the end of the 1990s when I had three children within three years,” says Nina Hahn, president and founder of Simpleworld. “We saw that the market for children’s products was a highly neglected industry. There wasn’t the selection that parents wanted.”

ous year. Bugaboo forecasts growth of 25 percent for 2007. Even though both the large chains and small stores are increasing their sales, the market is far from saturated. Well-known brands like Burberry, Kenzo, Adidas and Nike are updating their collections each season. There are also new “smart gadgets” continually turning up in the market, especially for technologically minded parents. How about a mobile bottle warmer with a 12-volt plug for your car, or a baby video monitor for people who want not only to hear but also to see their sleeping baby from another room? Susanna Lidström

Today’s parents want to live an active life, and for that they need technically advanced baby carriages.

foto: istockphoto

The aim is to base the store’s range

of products on safety, function and design, she says. “Before, design and designer brands were something incredibly expensive that only a few people bought,” Hahn says. “Today, there are new brands that have made a name for themselves, and many established brands have lowered their prices for their children’s collections.” She has also noticed increased awareness and greater social responsibility among suppliers. “Many have introduced codes of conduct and environmental policies that extend from the factory floor through the

Stylish and smart for tomorrow’s parents ■ Today’s parents are more fashionconscious and mobile than previous generations. These are two strong trends that SCA has captured with a couple of this spring’s product launches. Along with the new design diaper – Spring Collection – with fun, trendy patterns, there is a new category of disposable items that make everyday life easier when you’re on vacation, sitting in a café or out shopping.

The products go by the names Easy Change, a disposable changing table mat, and Easy Meal, a disposable bib. “Today, parents of small children often lead really active lives and don’t always change diapers on their changing table at home,” says Fredrik Krook, category marketing manager at SCA Personal Care. “At the same time, our surveys show that many people think the hygiene of public

changing tables is unsatisfactory.” SCA’s surveys, which were carried out by the opinion institute SIFO, also showed that nearly half of all parents are receptive to the idea of disposable bibs. “Many people don’t want to have to wash or wipe off the same old bib,” Krook says. “Easy Meal makes things easy on trips, and going out for a bite to eat doesn’t have to mean a sticky, smelly bib in your bag.”

[ 2 *2007 ] SHAPE SCA *15

trend Ad promoting all-purpose-cloth for painting and refurbishing, car and bicycle maintenance, gardening and many more appliances

CLEAN HANDS, SAFER RESTAURANTS

In the United States, thousands

of patients end up in the hospital each year with food-poisoning they received from eating at a restaurant. More than a thousand of them end up dying. So says a study from the U.S. Centers for Disease Control and Prevention (CDC). In a survey in one municipality in southern Sweden in 2005, more than one out of every 10 restaurants was cited for employee hygiene violations. In the United Kingdom, restaurants can receive stars, smiley-faces or other symbols indicating they have proper hygiene controls. In the United States, Canada and New Zealand there are also such systems warning about the (un)cleanliness of restaurants. Since January 2006, restaurants within the EU must keep clear records of their hygiene routines and be prepared to show them at regular inspections. In some restaurants cited in Sweden there was neither soap nor paper towels. In others, the sink was cluttered or blocked, making it difficult for people to wash their hands. So it’s not hard to understand that there is a risk that undesirable bacteria are being transferred to the food being served. Most restaurants choose to have paper towels for both employees and guests. There is no regulation specifying that restaurants have to have disposable towels, but the Swedish National Food Administration recommends it. “It’s really good to have paper towels,” says Elin Forsgren, a lawyer at the Swedish Hotel and Restaurant Employers’ Association. “There’s no law mandating it, though it would be expensive to have terrycloth towels. They have to be changed frequently, preferably every time they’re used.” 16*SCA SHAPE [ 2 *2007 ]

Gun Ax is one of some 20 restaurant inspectors in the municipality of Stockholm. She visits at least five restaurants a week and admits it’s hard for a restaurant patron to determine whether the hygiene at a restaurant is substandard. “It takes a few hours before the food can get to their stomach, and that’s when the first symptoms appear,” she says. The likelihood that restaurant patrons will connect their stomachaches to a visit to a restaurant is not great, unless they’re part of a larger party that ate the same thing, which isn’t all that common. “So there’s rarely a connection with the PETRA LODÉN restaurant,” Ax says.

McDonald’s chose Tork ■ In more and more McDonald’s restaurants around Europe, SCA’s products are now being used in the restrooms for customers and in the kitchen. Tork has long been used at McDonald’s in the Nordic countries. Starting last year, McDonald’s in Germany, France and Britain also chose to use SCA’s products. SCA Tissue won this prestigious order in intense competition with other suppliers. Previously, McDonald’s did its paper napkin purchasing only at the corporate level. “McDonald’s was very satisfied with SCA having delivery coverage across the whole of Europe,” says Catarina Wickström, SCA Tissue. “The partnership has worked well, and our goal is to reach out to other countries in Europe. Right now, we’re working together to develop the optimal solution for McDonald’s.”

Does the restaurant staff have clean hands?

PHOto: getty images

Patrons who suffer from stomach illness after eating at a restaurant are probably a restaurant owner’s worse nightmare. Stricter regulations for employee hygiene in restaurants in Europe went into effect about a year ago.

trend Ad promoting all-purpose-cloth for painting and refurbishing, car and bicycle maintenance, gardening and many more appliances

CLEAN HANDS, SAFER RESTAURANTS

In the United States, thousands

of patients end up in the hospital each year with food-poisoning they received from eating at a restaurant. More than a thousand of them end up dying. So says a study from the U.S. Centers for Disease Control and Prevention (CDC). In a survey in one municipality in southern Sweden in 2005, more than one out of every 10 restaurants was cited for employee hygiene violations. In the United Kingdom, restaurants can receive stars, smiley-faces or other symbols indicating they have proper hygiene controls. In the United States, Canada and New Zealand there are also such systems warning about the (un)cleanliness of restaurants. Since January 2006, restaurants within the EU must keep clear records of their hygiene routines and be prepared to show them at regular inspections. In some restaurants cited in Sweden there was neither soap nor paper towels. In others, the sink was cluttered or blocked, making it difficult for people to wash their hands. So it’s not hard to understand that there is a risk that undesirable bacteria are being transferred to the food being served. Most restaurants choose to have paper towels for both employees and guests. There is no regulation specifying that restaurants have to have disposable towels, but the Swedish National Food Administration recommends it. “It’s really good to have paper towels,” says Elin Forsgren, a lawyer at the Swedish Hotel and Restaurant Employers’ Association. “There’s no law mandating it, though it would be expensive to have terrycloth towels. They have to be changed frequently, preferably every time they’re used.” 16*SCA SHAPE [ 2 *2007 ]

Gun Ax is one of some 20 restaurant inspectors in the municipality of Stockholm. She visits at least five restaurants a week and admits it’s hard for a restaurant patron to determine whether the hygiene at a restaurant is substandard. “It takes a few hours before the food can get to their stomach, and that’s when the first symptoms appear,” she says. The likelihood that restaurant patrons will connect their stomachaches to a visit to a restaurant is not great, unless they’re part of a larger party that ate the same thing, which isn’t all that common. “So there’s rarely a connection with the PETRA LODÉN restaurant,” Ax says.

McDonald’s chose Tork ■ In more and more McDonald’s restaurants around Europe, SCA’s products are now being used in the restrooms for customers and in the kitchen. Tork has long been used at McDonald’s in the Nordic countries. Starting last year, McDonald’s in Germany, France and Britain also chose to use SCA’s products. SCA Tissue won this prestigious order in intense competition with other suppliers. Previously, McDonald’s did its paper napkin purchasing only at the corporate level. “McDonald’s was very satisfied with SCA having delivery coverage across the whole of Europe,” says Catarina Wickström, SCA Tissue. “The partnership has worked well, and our goal is to reach out to other countries in Europe. Right now, we’re working together to develop the optimal solution for McDonald’s.”

Does the restaurant staff have clean hands?

PHOto: getty images

Patrons who suffer from stomach illness after eating at a restaurant are probably a restaurant owner’s worse nightmare. Stricter regulations for employee hygiene in restaurants in Europe went into effect about a year ago.

trend

NEW PACKAGING VITAL TO LIFE A heart must be transplanted within four hours. But it’s not just time that is crucial: keeping the temperature constant also plays a vital role. All this places major demands on packaging. Packaging should suit its pur-

pose and be easy to use, but some situations are highly complicated. In the biochemistry industry, demand for temperature-controlled packaging solutions is continually growing, and the pharmaceutical industry in particular has a great need for these. Packaging for the transportation of human organs in conjunction with transplants is just a small part of this industry, but certainly a very important one. When an organ is to be moved from one hospital to another, emergency transportation is arranged by a security firm, sometimes by airplane. Different organs can keep for different periods of time without access to blood circulation – 18*SCA SHAPE [ 2 *2007 ]

what is called ischemia time. A heart must be transplanted within four hours from the time the donor’s respirator is turned off, while kidneys can manage for up to 24 hours. But speedy shipment is not the only vital factor. Maintaining the right temperature is also a matter of life or death. Cool Logistics in Bedfordshire in eastern England is a company that specializes in packaging that solves the temperature problem in different kinds of transportation. In most cases, it simply involves maintaining the temperature of a regular refrigerator, between 2 and 8 degrees Celsius (36-46 Fahrenheit), although the requirements may vary considerably. So do the temperature conditions in the

local environment. Transporting an item during the winter in Moscow is not the same as during the summer in southern Europe. “Stability is the key word rather than the actual cooling,” says Richard Perkes, commercial director at Cool Logistics, who has extensive experience with packaging solutions as the company’s former technical manager. The temperature of transported organs must be kept stable. This is achieved using different types of cooling elements in the packaging, which are adjusted depending among other things on where the transportation takes place. The insulation material is often polystyrene or polyurethane. In recent years, the trend has been toward using more advanced vacuum insulation panels, which also reduce volume considerably. Requirement standards for temperatures are becoming increasingly rigorous, as are inspections for ensuring that these requirements are met, according to Perkes. The number of registered donors is steadily increasing in Sweden, but unfortunately this is not reflected in the number of actual transplants being performed, and in some European countries the number of donors is actually declining. In countries that are part of the cooperation organizations Eurotransplant and Scandiatransplant, some 6,500 organ transplants were performed in 2006, with about 600 of these successful heart transplants. There could be more if there were greater knowledge about people’s desire to donate. Gunnar lanzky-otto

■ Since October last year, SCA is the sole owner of Cool Logistics, which also has production in the Czech Republic. Cool Logistics, founded in 2000, has at its disposal today the most extensive test facilities for temperature-controlled packaging in Europe. The temperature-controlled packaging solutions division is growing in part because of new requirements that are continually being added in the pharma­ ceutical industry. These involve not just the right temperature but also whether the size and weight of the packaging are efficient in transportation despite the complicated insulation.

AD MAKES “HUSH HUSH” PRODUCTS NORMAL Urine leakage

When customers don’t want to admit they need a proaffects 10 percent d­­­­uct, how should it be marketed? Viagra, Head & Shoul­ of women ders and TENA are a few of the names that have succeed■ Urine leakage is more common ed with their campaigns. The keyword is “normalize.” than people think. About 10 percent At the launch of Viagra, perhaps

the world’s best-known pharmaceutical product, its maker hired Pelé, the finest athlete in history in the view of many people. The ad never said Pelé had problems with impotence, but he was the right age. Moreover, he was Latin American macho, athletic and world-famous. The pharmaceutical company also came up with a new phrase – erectile dysfunction. The aim was to normalize the product, play down the issue, let consumers know they didn’t have to be ashamed of their need. Today, Viagra is no longer surrounded by the same sense of taboo. The same is true of products like diapers, sanitary napkins and panty liners. “For generations ago, you could only buy sanitary napkins in Sweden at the state-run drugstore,” says Bengt Eriksson, category brand manager at SCA Personal Care. “You got them in brown paper bags. Today, women can send their husbands to 7-Eleven to buy sanitary napkins and tampons.” An interesting comparison can be made to dandruff, which is no longer taboo. “Head & Shoulders has repositioned dandruff shampoo from a medical product to a daily hygiene product,” Eriksson says. But some products and issues are still surrounded by prejudice and a sense of shame. One example is incontinence. Marketing in this segment involves breaking the sense of taboo. Normalization is also a keyword in marketing. “TV is a normalizing medium, so it’s quite suitable for taboo products,” says Andy Ravan at the British advertising agency DLKW, which is in charge of advertising for SCA’s TENA incontinence protection. “Not only do we reach a lot of people, but the message is indirectly conveyed that incontinence is so common that

it can be shown on TV.” Eriksson explains the approach: “In our commercials, we talk about how incontinence is as common as hay fever. This way, we achieve two things. We establish a connection to something harmless and completely lacking a sense of taboo. It’s implied that we’re saying it’s common.” The products have been named Lady Mini Magic and TENA Pants Discreet, which are supposed to convey a sense of an exciting as well as technically advanced product. “Using words like ‘mini,’ ‘discreet’ and ‘magic,’ which are commonly used in ads for everything from condoms to cell phones, positions the product as something completely normal,” Ravan says. “The words also suggest that it involves a technically advanced product.” Ravan talks about the importance of casual, positive references in everything from the choice of words in the advertising and marketing campaign to the design of the packaging and the products. Eriksson agrees. “The package has to be attractive yet discreet,” he says. “People should be able to buy it in their grocery store without customers behind them knowing what they’re buying.” The other keyword in the marketing is “active.” People want to show that they can still live a completely normal, active life despite their incontinence. “In the newspaper ads and TV-commercials, they’ve used a picture of this tough guy on a motorcycle,” Ravan says. “Another ad campaign shows a whole family out biking together.”

of women in the Western world have problems with involuntary urine leakage. SCA’s Tena line of products are the most frequently used products in the world for people with incontinence problems. They are sold to two customer groups, private consumers and healthcare providers. “In our marketing communication with private consumers, we want to get rid of the medical link. But if we go too far, then we won’t be cred­ible in healthcare. So we have to highlight the advantages of the product, which both groups are looking for,” says Bengt Eriksson, category brand manager at SCA Personal Care.

Per Öqvist

[ 2 *2006 ] SHAPE SCA *19

PHOto: getty images

PHOTO: getty images

Temperature stability is the key when transporting an organ.

trend

NEW PACKAGING VITAL TO LIFE A heart must be transplanted within four hours. But it’s not just time that is crucial: keeping the temperature constant also plays a vital role. All this places major demands on packaging. Packaging should suit its pur-

pose and be easy to use, but some situations are highly complicated. In the biochemistry industry, demand for temperature-controlled packaging solutions is continually growing, and the pharmaceutical industry in particular has a great need for these. Packaging for the transportation of human organs in conjunction with transplants is just a small part of this industry, but certainly a very important one. When an organ is to be moved from one hospital to another, emergency transportation is arranged by a security firm, sometimes by airplane. Different organs can keep for different periods of time without access to blood circulation – 18*SCA SHAPE [ 2 *2007 ]

what is called ischemia time. A heart must be transplanted within four hours from the time the donor’s respirator is turned off, while kidneys can manage for up to 24 hours. But speedy shipment is not the only vital factor. Maintaining the right temperature is also a matter of life or death. Cool Logistics in Bedfordshire in eastern England is a company that specializes in packaging that solves the temperature problem in different kinds of transportation. In most cases, it simply involves maintaining the temperature of a regular refrigerator, between 2 and 8 degrees Celsius (36-46 Fahrenheit), although the requirements may vary considerably. So do the temperature conditions in the

local environment. Transporting an item during the winter in Moscow is not the same as during the summer in southern Europe. “Stability is the key word rather than the actual cooling,” says Richard Perkes, commercial director at Cool Logistics, who has extensive experience with packaging solutions as the company’s former technical manager. The temperature of transported organs must be kept stable. This is achieved using different types of cooling elements in the packaging, which are adjusted depending among other things on where the transportation takes place. The insulation material is often polystyrene or polyurethane. In recent years, the trend has been toward using more advanced vacuum insulation panels, which also reduce volume considerably. Requirement standards for temperatures are becoming increasingly rigorous, as are inspections for ensuring that these requirements are met, according to Perkes. The number of registered donors is steadily increasing in Sweden, but unfortunately this is not reflected in the number of actual transplants being performed, and in some European countries the number of donors is actually declining. In countries that are part of the cooperation organizations Eurotransplant and Scandiatransplant, some 6,500 organ transplants were performed in 2006, with about 600 of these successful heart transplants. There could be more if there were greater knowledge about people’s desire to donate. Gunnar lanzky-otto

■ Since October last year, SCA is the sole owner of Cool Logistics, which also has production in the Czech Republic. Cool Logistics, founded in 2000, has at its disposal today the most extensive test facilities for temperature-controlled packaging in Europe. The temperature-controlled packaging solutions division is growing in part because of new requirements that are continually being added in the pharma­ ceutical industry. These involve not just the right temperature but also whether the size and weight of the packaging are efficient in transportation despite the complicated insulation.

AD MAKES “HUSH HUSH” PRODUCTS NORMAL Urine leakage

When customers don’t want to admit they need a proaffects 10 percent d­­­­uct, how should it be marketed? Viagra, Head & Shoul­ of women ders and TENA are a few of the names that have succeed■ Urine leakage is more common ed with their campaigns. The keyword is “normalize.” than people think. About 10 percent At the launch of Viagra, perhaps

the world’s best-known pharmaceutical product, its maker hired Pelé, the finest athlete in history in the view of many people. The ad never said Pelé had problems with impotence, but he was the right age. Moreover, he was Latin American macho, athletic and world-famous. The pharmaceutical company also came up with a new phrase – erectile dysfunction. The aim was to normalize the product, play down the issue, let consumers know they didn’t have to be ashamed of their need. Today, Viagra is no longer surrounded by the same sense of taboo. The same is true of products like diapers, sanitary napkins and panty liners. “For generations ago, you could only buy sanitary napkins in Sweden at the state-run drugstore,” says Bengt Eriksson, category brand manager at SCA Personal Care. “You got them in brown paper bags. Today, women can send their husbands to 7-Eleven to buy sanitary napkins and tampons.” An interesting comparison can be made to dandruff, which is no longer taboo. “Head & Shoulders has repositioned dandruff shampoo from a medical product to a daily hygiene product,” Eriksson says. But some products and issues are still surrounded by prejudice and a sense of shame. One example is incontinence. Marketing in this segment involves breaking the sense of taboo. Normalization is also a keyword in marketing. “TV is a normalizing medium, so it’s quite suitable for taboo products,” says Andy Ravan at the British advertising agency DLKW, which is in charge of advertising for SCA’s TENA incontinence protection. “Not only do we reach a lot of people, but the message is indirectly conveyed that incontinence is so common that

it can be shown on TV.” Eriksson explains the approach: “In our commercials, we talk about how incontinence is as common as hay fever. This way, we achieve two things. We establish a connection to something harmless and completely lacking a sense of taboo. It’s implied that we’re saying it’s common.” The products have been named Lady Mini Magic and TENA Pants Discreet, which are supposed to convey a sense of an exciting as well as technically advanced product. “Using words like ‘mini,’ ‘discreet’ and ‘magic,’ which are commonly used in ads for everything from condoms to cell phones, positions the product as something completely normal,” Ravan says. “The words also suggest that it involves a technically advanced product.” Ravan talks about the importance of casual, positive references in everything from the choice of words in the advertising and marketing campaign to the design of the packaging and the products. Eriksson agrees. “The package has to be attractive yet discreet,” he says. “People should be able to buy it in their grocery store without customers behind them knowing what they’re buying.” The other keyword in the marketing is “active.” People want to show that they can still live a completely normal, active life despite their incontinence. “In the newspaper ads and TV-commercials, they’ve used a picture of this tough guy on a motorcycle,” Ravan says. “Another ad campaign shows a whole family out biking together.”

of women in the Western world have problems with involuntary urine leakage. SCA’s Tena line of products are the most frequently used products in the world for people with incontinence problems. They are sold to two customer groups, private consumers and healthcare providers. “In our marketing communication with private consumers, we want to get rid of the medical link. But if we go too far, then we won’t be cred­ible in healthcare. So we have to highlight the advantages of the product, which both groups are looking for,” says Bengt Eriksson, category brand manager at SCA Personal Care.

Per Öqvist

[ 2 *2006 ] SHAPE SCA *19

PHOto: getty images

PHOTO: getty images

Temperature stability is the key when transporting an organ.

profile

Sustainable forest management is key to forest and paper companies, thinks Susanna Jacobson.

The hidden value in

going green

“Traditional share analysis methods fail to account for some 70 percent of a company’s worth,” says Susanna jacobson, an analyst with Innovest who specializes in environmental issues within the forestry and paper industry.

s

by Anna mcqueen PHoto EVA EDSJÖ

20*SCA SHAPE [ 2 *2007 ]

examine whether they have clear structures in place to mitigate risk, and strong R&D to identify early opportunities in the marketplace.” Innovest company scores are used to advise clients on investment potential. With a client portfolio of pension funds, advisory and consulting firms, industrial corporations and institutional investors such as UBS, Henderson Global Advisors, HSBC and BNP Paribas, Innovest is typically used as an add-on to traditional analysis.

We look at extra-financial risk and opportunity. This includes any environmental or social and strategy governance-related issues, and the hidden values that traditional financial analysts don’t tend to examine. ”

Jacobson believes sustainable forest

management is key to forest and paper companies. “Without it, they won’t survive in the long term,” she says. Poor management can engender a series of risks, including operational risks, which include the fact that because customers are looking to buy more sustainable forest products, companies should be looking to gain access to this market by providing certified sustainable products. Other risks are regulatory in nature. If companies are looking to operate in different countries, they need to understand the different regulations and how to respond to them. There are also risks to reputation: if a company is heavily criticized

NAME: Susanna Jacobson AGE: 27 years old BORN: Malmö, Sweden LIVES: In London since 1999 CAREER: “I studied business at the Gothenburg School of Business and Commercial Law in Sweden. Then I came to London to do a BSc in Environmental Management and Policy at the London School of Economics. I joined Innovest in October 2005 following the acquisition of Core Ratings.”



usanna Jacobson finds herself in the middle of the controversy, in many respects. The 27-year-old Swede works in one of the world’s most hectic areas: London’s financial center. And, as an analyst, she specializes in an issue that stands at the top of the list of problems around the world: global warming. Environmental thinking is hardly a new issue in the business world. But in recent years, the many voices raised in alarm over global warming have spurred an increasingly intense debate, making the issue a priority for customers as well as for CEOs and investors. It is this third group, investors, who make up the primary target of Susanna Jacobson’s company, Innovest Strategic Value Advisors. “We look at extra-financial risk and opportunity,” says Susanna Jacobson. “This includes any environmental or social and strategy governancerelated issues, and the hidden values that traditional financial analysts don’t tend to examine. We believe that around 70 percent of a company’s true value is not covered by traditional analysis. Long-term sustainability is fundamental, and we

by NGOs, that will affect its brand value, leading to long-term financial loss. “We also look at what percentage of a company’s energy comes from biofuels, to what extent companies are researching liquid biofuels and whether they are selling excess electricity from power generation in mills,” Jacobson says. Innovest also looks at how companies manage human resources, how they retain and attract staff, and how they manage any layoffs. Environmental and social issues have become increasingly important when companies enter new markets. “As companies move to China and Brazil to set up new mills, if they are investing in good communication with stakeholders affected by their operations, they won’t be faced with a hostile reception from local communities, authorities and NGOs,” Jacobson explains. Innovest also considers how a company handles personnel issues, how it keeps good people and attracts new employees, and how redundancies are dealt with. Environmental and social issues are also a prime concern when a company is entering new markets. Another way to access new markets is to move towards certification. “There is increasing global demand for eco-certified products, and this is an

[ 2 *2007 ] SHAPE SCA *21

profile

Sustainable forest management is key to forest and paper companies, thinks Susanna Jacobson.

The hidden value in

going green

“Traditional share analysis methods fail to account for some 70 percent of a company’s worth,” says Susanna jacobson, an analyst with Innovest who specializes in environmental issues within the forestry and paper industry.

s

by Anna mcqueen PHoto EVA EDSJÖ

20*SCA SHAPE [ 2 *2007 ]

examine whether they have clear structures in place to mitigate risk, and strong R&D to identify early opportunities in the marketplace.” Innovest company scores are used to advise clients on investment potential. With a client portfolio of pension funds, advisory and consulting firms, industrial corporations and institutional investors such as UBS, Henderson Global Advisors, HSBC and BNP Paribas, Innovest is typically used as an add-on to traditional analysis.

We look at extra-financial risk and opportunity. This includes any environmental or social and strategy governance-related issues, and the hidden values that traditional financial analysts don’t tend to examine. ”

Jacobson believes sustainable forest

management is key to forest and paper companies. “Without it, they won’t survive in the long term,” she says. Poor management can engender a series of risks, including operational risks, which include the fact that because customers are looking to buy more sustainable forest products, companies should be looking to gain access to this market by providing certified sustainable products. Other risks are regulatory in nature. If companies are looking to operate in different countries, they need to understand the different regulations and how to respond to them. There are also risks to reputation: if a company is heavily criticized

NAME: Susanna Jacobson AGE: 27 years old BORN: Malmö, Sweden LIVES: In London since 1999 CAREER: “I studied business at the Gothenburg School of Business and Commercial Law in Sweden. Then I came to London to do a BSc in Environmental Management and Policy at the London School of Economics. I joined Innovest in October 2005 following the acquisition of Core Ratings.”



usanna Jacobson finds herself in the middle of the controversy, in many respects. The 27-year-old Swede works in one of the world’s most hectic areas: London’s financial center. And, as an analyst, she specializes in an issue that stands at the top of the list of problems around the world: global warming. Environmental thinking is hardly a new issue in the business world. But in recent years, the many voices raised in alarm over global warming have spurred an increasingly intense debate, making the issue a priority for customers as well as for CEOs and investors. It is this third group, investors, who make up the primary target of Susanna Jacobson’s company, Innovest Strategic Value Advisors. “We look at extra-financial risk and opportunity,” says Susanna Jacobson. “This includes any environmental or social and strategy governancerelated issues, and the hidden values that traditional financial analysts don’t tend to examine. We believe that around 70 percent of a company’s true value is not covered by traditional analysis. Long-term sustainability is fundamental, and we

by NGOs, that will affect its brand value, leading to long-term financial loss. “We also look at what percentage of a company’s energy comes from biofuels, to what extent companies are researching liquid biofuels and whether they are selling excess electricity from power generation in mills,” Jacobson says. Innovest also looks at how companies manage human resources, how they retain and attract staff, and how they manage any layoffs. Environmental and social issues have become increasingly important when companies enter new markets. “As companies move to China and Brazil to set up new mills, if they are investing in good communication with stakeholders affected by their operations, they won’t be faced with a hostile reception from local communities, authorities and NGOs,” Jacobson explains. Innovest also considers how a company handles personnel issues, how it keeps good people and attracts new employees, and how redundancies are dealt with. Environmental and social issues are also a prime concern when a company is entering new markets. Another way to access new markets is to move towards certification. “There is increasing global demand for eco-certified products, and this is an

[ 2 *2007 ] SHAPE SCA *21

profile

Jacobson believes the industry is inherently sustainable and will survive, but its strategy must be rethought.

area of huge potential growth that we measure,” Jacobson says. “More and more companies and governments are introducing policies whereby they will only buy wood certified by the Forest Stewardship Council standard, endorsed by a large number of environmental groups as a truly sustainable certification scheme. The demand is growing and is currently much greater than supply.” The use of carbon uptake by planting or conserving forests is an area of great potential and one where companies can score highly, but Jacobson believes current systems are too complicated and bureaucratic. So far, just one company has obtained credits for planting forests under the Kyoto treaty, but other schemes like the Chicago Climate Exchange are proving simpler, and companies can more easily get credits for planting forests which can then be sold to other companies who can use them to offset their emissions. Forests are important if CO2 emissions are to be reduced to acceptable levels. According to a U.N. report, emission of greenhouse gases must decrease 50-85 percent by the year 2050 for global warming to be held in check. “The Intergovernmental Panel on Climate Change has said that 20 percent of the solution 22*SCA SHAPE [ 2 *2007 ]

for cutting C02 emissions between now and 2050 involves sustainable forest management and carbon uptake,” Jacobson says. “However, it must be understood that plantations can have complex environmental impacts that sometimes outweigh the positive carbon uptake effect.” Despite its key role in countering the effects of climate change, the paper and forestry industry is under threat from our changing climate, including increased fire risk, severe water loss due to changes in evaporation and precipitation patterns, flood damage to low-lying countries and island states, and loss of coastal land to rising sea levels. It is estimated that the industry could lose as much as USD 42 billion if CO2 levels reach twice their pre-industrial concentrations, as a direct result of extreme weather brought about by the phenomenon. Still, Jacobson believes the industry is inherently sustainable and will survive, but its strategy must be rethought. “They must use wood more efficiently and diversify into new, more sustainable products, use fewer chemical processes, and fewer non-renewable resources,” she says. “The outlook is very bright but there is a lot still left to do, and quickly, because these companies are facing increasingly stringent regulatory requirements.” ▲

Innovest gives SCA top marks

There is increasing global demand for eco-certified products, and this is an area of huge potential growth that we measure.”

★ Innovest ranks SCA as one of the world’s leading companies when it comes to environmental and social issues and strategic planning.

★ 2006 SCA was chosen again as one of the world’s most sustainable companies in Innovest’s Global 100.

★ Ranked against 30 comparable international companies, SCA comes out above average and SCA sits in the top quartile in the Innovest index for forestry and paper companies.

★ Innovest points out that SCA is the biggest player within reclaiming and reusing recycled fiber. The company’s level of self-reliance in terms of energy and methods of reducing resource consumption are also exemplary, according to Innovest.

3HEGAVEYOUYOURNAME YOURFIRSTBIKE ANDTENDERLOVINGCARE !ND SHE DESERVES THE BEST4HAT MEANS GIVING HER THE NEW4%.! PRODUCTS WITH&EEL$RY©FOROUTSTANDINGDRYPROTECTIONAGAINSTBLADDERWEAKNESS 7ITH&EEL$RY YOUGIVEHERMORESECURITYBUTALSOGREATERCOMFORT)NOTHERWORDS SHEGETSTHECONFIDENCEANDTHEFREEDOMTOCONTINUELIVINGLIFETOTHEFULL !SKYOURLOCALCHEMISTFOR4%.!PROTECTIONWITH&EEL$RY"ECAUSEONLYTHE BESTISGOODENOUGH

4%.!\"ETTER#AREATA,OWER4OTAL#OST\WWWTENACOM

profile

Jacobson believes the industry is inherently sustainable and will survive, but its strategy must be rethought.

area of huge potential growth that we measure,” Jacobson says. “More and more companies and governments are introducing policies whereby they will only buy wood certified by the Forest Stewardship Council standard, endorsed by a large number of environmental groups as a truly sustainable certification scheme. The demand is growing and is currently much greater than supply.” The use of carbon uptake by planting or conserving forests is an area of great potential and one where companies can score highly, but Jacobson believes current systems are too complicated and bureaucratic. So far, just one company has obtained credits for planting forests under the Kyoto treaty, but other schemes like the Chicago Climate Exchange are proving simpler, and companies can more easily get credits for planting forests which can then be sold to other companies who can use them to offset their emissions. Forests are important if CO2 emissions are to be reduced to acceptable levels. According to a U.N. report, emission of greenhouse gases must decrease 50-85 percent by the year 2050 for global warming to be held in check. “The Intergovernmental Panel on Climate Change has said that 20 percent of the solution 22*SCA SHAPE [ 2 *2007 ]

for cutting C02 emissions between now and 2050 involves sustainable forest management and carbon uptake,” Jacobson says. “However, it must be understood that plantations can have complex environmental impacts that sometimes outweigh the positive carbon uptake effect.” Despite its key role in countering the effects of climate change, the paper and forestry industry is under threat from our changing climate, including increased fire risk, severe water loss due to changes in evaporation and precipitation patterns, flood damage to low-lying countries and island states, and loss of coastal land to rising sea levels. It is estimated that the industry could lose as much as USD 42 billion if CO2 levels reach twice their pre-industrial concentrations, as a direct result of extreme weather brought about by the phenomenon. Still, Jacobson believes the industry is inherently sustainable and will survive, but its strategy must be rethought. “They must use wood more efficiently and diversify into new, more sustainable products, use fewer chemical processes, and fewer non-renewable resources,” she says. “The outlook is very bright but there is a lot still left to do, and quickly, because these companies are facing increasingly stringent regulatory requirements.” ▲

Innovest gives SCA top marks

There is increasing global demand for eco-certified products, and this is an area of huge potential growth that we measure.”

★ Innovest ranks SCA as one of the world’s leading companies when it comes to environmental and social issues and strategic planning.

★ 2006 SCA was chosen again as one of the world’s most sustainable companies in Innovest’s Global 100.

★ Ranked against 30 comparable international companies, SCA comes out above average and SCA sits in the top quartile in the Innovest index for forestry and paper companies.

★ Innovest points out that SCA is the biggest player within reclaiming and reusing recycled fiber. The company’s level of self-reliance in terms of energy and methods of reducing resource consumption are also exemplary, according to Innovest.

3HEGAVEYOUYOURNAME YOURFIRSTBIKE ANDTENDERLOVINGCARE !ND SHE DESERVES THE BEST4HAT MEANS GIVING HER THE NEW4%.! PRODUCTS WITH&EEL$RY©FOROUTSTANDINGDRYPROTECTIONAGAINSTBLADDERWEAKNESS 7ITH&EEL$RY YOUGIVEHERMORESECURITYBUTALSOGREATERCOMFORT)NOTHERWORDS SHEGETSTHECONFIDENCEANDTHEFREEDOMTOCONTINUELIVINGLIFETOTHEFULL !SKYOURLOCALCHEMISTFOR4%.!PROTECTIONWITH&EEL$RY"ECAUSEONLYTHE BESTISGOODENOUGH

4%.!\"ETTER#AREATA,OWER4OTAL#OST\WWWTENACOM

technology INLET 1 INLET 2

energy use In a kraft pulp plant, about half the wood used becomes pulp. Leftover wood and chemicals are incinerated in a recovery boiler, which produces energy and new cooking chemicals. With new efficient technology, a boiler can provide an entire kraft pulp plant with heating and electric energy and still generate a surplus.

p

by PETRA LODÉN illustration leif åbjörnsson

aper and pulp manufacturing is like preparing food. You bring home the raw ingredients, which are peeled, cleaned of dirt, chopped, ground and rinsed. Then you cook them over heat. In a pulp plant, however, you don’t waste what’s left over. The residual products can make steam and electricity, and the cooking chemicals can be reused. A recovery boiler, where the process starts, is both a steam boiler and a reactor in which chemicals are recycled. In a pulp plant, wood chips are dissolved into fiber through cooking. The used cooking liquid and dissolved wood residue are incinerated in the recovery boiler. This provides energy in the form of steam, which can be used to produce electricity. The chemical residues are collected in the bottom of the boiler and reused to prepare new cooking liquid. At the Östrand Pulp Mill just outside Sundsvall in central Sweden, SCA recently built a new and modern recovery boiler 24*SCA SHAPE [ 2 *2007 ]

and a new, highly efficient back-pressure turbine. “We’ve gone from having to buy electric energy to now having a surplus,” says Ingela Ekebro, production manager at the Östrand Pulp Mill. In a back-pressure turbine, the pressure of the steam from the boiler is reduced. The steam then expands, causing the turbine to rotate. A generator on the turbine’s axis produces energy. The steam is used in the pulp processes. “We also provide all the district heating for the municipality of Timrå’s district heating network,” Ekebro says. “We’ve designed the recovery boiler/ turbine combination to optimize energy production,” says Åke Westberg, project leader. “This gives us two steam inlets and a total of five outlets from the turbine. This means that all the steam is reduced to its final pressure in the turbine so that we can generate as much electricity as possible.” The recovery boiler at Östrand is 78 meters high and the largest building at the mill. Half the content in the wood

that comes to the plant is incinerated in the boiler, which currently produces 300 MW, enough to heat 125,000 houses for whole year. Kraft pulp plants have often been associated with unpleasant odors, but in Östrand the nasty-smelling gases are also incinerated in the new recovery boiler. “This means that under normal production conditions, there won’t be any smells anymore from Östrand,” Ekebro notes. “But we can never be completely odorless.”

Greener electricity ■ Large quantities of electric energy are consumed in the making of some forest industrial products, so SCA has invested in energy-efficient production methods for many years. Back-pressure steam is used in every pulp and paper mill, ensuring a high level of efficiency because optimal use is made of the energy content of the fuel. The Östrand Pulp Mill generates 500 GWh of biofuel-based green electricity. That is enough to heat 25,000 houses.

5 4 3 2 OUTLET 1

COMBUSTION AIR

Efficient

The recovery boiler/turbine combination has two steam inlets and a total of five outlets from the turbine. This means that all the steam is reduced to its final pressure in the turbine.

In a back-pressure turbine, the pressure of the steam from the boiler is reduced. The steam then expands, causing the turbine to rotate. A generator on the turbine’s axis produces energy.

In a pulp plant, wood chips are dissolved into fiber through boiling. The used cooking liquid and dissolved chip residue are incinerated in the recovery boiler. This provides energy in the form of steam, which can be used to produce electricity. The chemical residues are collected in the bottom of the boiler and reused to prepare new cooking liquid.

Among the top units in the world ■ The recovery boiler at Östrand was built by the Austrian company Andritz, while the new turbine and generator was delivered by Siemens. The boiler house is 78 meters high, and at its peak 350 people were involved in the construction of the project, which cost SEK 1.6 billion. SCA’s pulp mill in Östrand produces products with a strong environmental profile. Some of their most important features are low use of process water, totally chlorine-free bleaching and raw materials from Forest Stewardship Council-certified forests. Celeste is a bleached kraft pulp used in products like publication and tissue paper. CTMP Star is a chemically pretreated mechanical pulp used in the manufacture of tissue paper and packaging products, and Luna is a material with unique absorption properties used mainly in feminine hygiene products. The new recovery boiler has allowed the kraft pulp plant to increase production to 420,000 tons a year. The boiler produces steam with a pressure of 105 bar and a temperature of 515 degrees Centrigrades, which is higher than any recovery boiler in the world. The boiler is also prepared for expansion and manages then to double the present production capacity. The pulp mill in Östrand has 410 employees and produces 500,000 tons pulp per year. [ 2 *2007 ] SHAPE SCA *25

technology INLET 1 INLET 2

energy use In a kraft pulp plant, about half the wood used becomes pulp. Leftover wood and chemicals are incinerated in a recovery boiler, which produces energy and new cooking chemicals. With new efficient technology, a boiler can provide an entire kraft pulp plant with heating and electric energy and still generate a surplus.

p

by PETRA LODÉN illustration leif åbjörnsson

aper and pulp manufacturing is like preparing food. You bring home the raw ingredients, which are peeled, cleaned of dirt, chopped, ground and rinsed. Then you cook them over heat. In a pulp plant, however, you don’t waste what’s left over. The residual products can make steam and electricity, and the cooking chemicals can be reused. A recovery boiler, where the process starts, is both a steam boiler and a reactor in which chemicals are recycled. In a pulp plant, wood chips are dissolved into fiber through cooking. The used cooking liquid and dissolved wood residue are incinerated in the recovery boiler. This provides energy in the form of steam, which can be used to produce electricity. The chemical residues are collected in the bottom of the boiler and reused to prepare new cooking liquid. At the Östrand Pulp Mill just outside Sundsvall in central Sweden, SCA recently built a new and modern recovery boiler 24*SCA SHAPE [ 2 *2007 ]

and a new, highly efficient back-pressure turbine. “We’ve gone from having to buy electric energy to now having a surplus,” says Ingela Ekebro, production manager at the Östrand Pulp Mill. In a back-pressure turbine, the pressure of the steam from the boiler is reduced. The steam then expands, causing the turbine to rotate. A generator on the turbine’s axis produces energy. The steam is used in the pulp processes. “We also provide all the district heating for the municipality of Timrå’s district heating network,” Ekebro says. “We’ve designed the recovery boiler/ turbine combination to optimize energy production,” says Åke Westberg, project leader. “This gives us two steam inlets and a total of five outlets from the turbine. This means that all the steam is reduced to its final pressure in the turbine so that we can generate as much electricity as possible.” The recovery boiler at Östrand is 78 meters high and the largest building at the mill. Half the content in the wood

that comes to the plant is incinerated in the boiler, which currently produces 300 MW, enough to heat 125,000 houses for whole year. Kraft pulp plants have often been associated with unpleasant odors, but in Östrand the nasty-smelling gases are also incinerated in the new recovery boiler. “This means that under normal production conditions, there won’t be any smells anymore from Östrand,” Ekebro notes. “But we can never be completely odorless.”

Greener electricity ■ Large quantities of electric energy are consumed in the making of some forest industrial products, so SCA has invested in energy-efficient production methods for many years. Back-pressure steam is used in every pulp and paper mill, ensuring a high level of efficiency because optimal use is made of the energy content of the fuel. The Östrand Pulp Mill generates 500 GWh of biofuel-based green electricity. That is enough to heat 25,000 houses.

5 4 3 2 OUTLET 1

COMBUSTION AIR

Efficient

The recovery boiler/turbine combination has two steam inlets and a total of five outlets from the turbine. This means that all the steam is reduced to its final pressure in the turbine.

In a back-pressure turbine, the pressure of the steam from the boiler is reduced. The steam then expands, causing the turbine to rotate. A generator on the turbine’s axis produces energy.

In a pulp plant, wood chips are dissolved into fiber through boiling. The used cooking liquid and dissolved chip residue are incinerated in the recovery boiler. This provides energy in the form of steam, which can be used to produce electricity. The chemical residues are collected in the bottom of the boiler and reused to prepare new cooking liquid.

Among the top units in the world ■ The recovery boiler at Östrand was built by the Austrian company Andritz, while the new turbine and generator was delivered by Siemens. The boiler house is 78 meters high, and at its peak 350 people were involved in the construction of the project, which cost SEK 1.6 billion. SCA’s pulp mill in Östrand produces products with a strong environmental profile. Some of their most important features are low use of process water, totally chlorine-free bleaching and raw materials from Forest Stewardship Council-certified forests. Celeste is a bleached kraft pulp used in products like publication and tissue paper. CTMP Star is a chemically pretreated mechanical pulp used in the manufacture of tissue paper and packaging products, and Luna is a material with unique absorption properties used mainly in feminine hygiene products. The new recovery boiler has allowed the kraft pulp plant to increase production to 420,000 tons a year. The boiler produces steam with a pressure of 105 bar and a temperature of 515 degrees Centrigrades, which is higher than any recovery boiler in the world. The boiler is also prepared for expansion and manages then to double the present production capacity. The pulp mill in Östrand has 410 employees and produces 500,000 tons pulp per year. [ 2 *2007 ] SHAPE SCA *25



sca inside Laughing with Libresse This year’s Libresse campaign, “Laughter,”

has been developed from the perspective of the consumer. The campaign describes security in an unusual, feminine and positive way. “We wanted to understand when women feel most secure in a positive way, and we concluded that when a woman laughs her real laugh, from her stomach, that’s when she’s most secure,” says Anna Smitterberg, category communication manager at SCA. “So that insight was a given: you laugh more when you feel secure.” A slogan was born: “Feel secure, wear Libresse.” If the previous campaign, “Vote for change,” was meant to be provocative in order to create awareness, SCA has now chosen a more positive expression that is more emotionally engaging and long-term. The campaign has already been launched in the Netherlands, France and Italy. In England, the launch will take place in August.

SCA saves seals THE SCA Heavy Duty Knowledge Center , based

at the SCA Packaging Tilburg site, has designed, tested and produced corrugated board boxes for transporting seals for the Lenie’t Hart Seal Rescue Center, a Netherlands-based rescue and return operation for the marine mammals. This project is part of SCA’s goodwill activities and free of charge for this organization, which rescues seals and returns them to their natural habitat. The first batch of boxes was supplied in the beginning of May and will replace the wooden crates that are in use today.

TISSUE For people on the go

Fresh launch in Mexico

■ During May, SCA Tissue Europe launched one-pack Edet Torky tissue dispenser that is practical and easy to carry. The product is intended for situations outside the home, such as on a picnic or in a boat. Market research has shown that this kind of product is welcomed by consumers. As the tissue is stored in a bag made of polyester with a plastic backing, it stays clean and dry. The product is refillable and can therefore be used many times. The Edet Torky “on the go” will be available in a selected number of stores for a limited time.

■ SCA Mexico relaunched its longtime best seller in the feminine protection segment, the Saba Confort Chamomile, in June this year. Two new scented products were also launched at the same time. This means that Saba Confort liners and pads now come in three hypoallergenic aromas: chamomile, jasmine and orange blossom. SCA’s goal with this launch and relaunch is to become the aroma flagship in feminine protection category in Mexico. Aromas, natural essences and scented products are popular in Mexico and throughout Latin America.

rolls for easy access SCA Tissue has developed a toilet

paper package that is easier to open. “Our Zewa Soft comfort opening specifically addresses consumer needs for convenient handling and more comfort,” says Thomas Günther, marketing director of SCA Consumer Tissue Europe. “The idea arose from a project dealing with marketing to seniors. The product had to offer enhanced convenience. Naturally, this packaging innovation offers added value to all other age groups as well.”

26*SCA SHAPE [ 2 *2007 ]

The new Zewa Soft has a perforated tear flap on the side that makes it easier to open the package, thus allowing easy roll-by-roll withdrawal. The remaining rolls are stored hygienically in the package. The special comfort opening was developed in cooperation with the Meyer-Hentschel-Institut of Saarbrücken, Germany, which specializes in optimizing products for seniors. The new Zewa Soft was launched

in combination with a softness upgrade in April 2007 and is sold throughout Germany, Austria, Switzerland and other countries.

The Libresse “Laughter” campaign is aimed at women of every age. Ordinary women are used in the ad campaign, not models, to allow every woman to identify with the women in the ads.

SCA’s oldest mill celebrates 350 years ■ Rembrandt was alive when SCA’s oldest mill was founded in 1657 in Holland. The SCA Packaging De Hoop containerboard paper mill celebrated its 350th anniversary on May 11. SCA is committed to growing the business in the town of Eerbeek, the Netherlands, contributing to the sustainability of life and work in the community. SCA Packaging De Hoop obtained world-class status for energy consumption in a global energy benchmark study in 2002 for the Royal Dutch Paper and Board Association by Finland’s Jaakko Pöyry Consulting. “The site produces its own energy in a high-tech combined heat and power plant, contributing with substantial investments in energy-saving projects in recent years to lower consumption of energy and fossil fuel and reduced CO2 emissions,” says Henk Lingbeek, managing director of SCA Packaging De Hoop. SCA’s businesses in Eerbeek also include a corrugated box plant and a recycling organization.

[ 2 *2007 ] SHAPE SCA *27



sca inside Laughing with Libresse This year’s Libresse campaign, “Laughter,”

has been developed from the perspective of the consumer. The campaign describes security in an unusual, feminine and positive way. “We wanted to understand when women feel most secure in a positive way, and we concluded that when a woman laughs her real laugh, from her stomach, that’s when she’s most secure,” says Anna Smitterberg, category communication manager at SCA. “So that insight was a given: you laugh more when you feel secure.” A slogan was born: “Feel secure, wear Libresse.” If the previous campaign, “Vote for change,” was meant to be provocative in order to create awareness, SCA has now chosen a more positive expression that is more emotionally engaging and long-term. The campaign has already been launched in the Netherlands, France and Italy. In England, the launch will take place in August.

SCA saves seals THE SCA Heavy Duty Knowledge Center , based

at the SCA Packaging Tilburg site, has designed, tested and produced corrugated board boxes for transporting seals for the Lenie’t Hart Seal Rescue Center, a Netherlands-based rescue and return operation for the marine mammals. This project is part of SCA’s goodwill activities and free of charge for this organization, which rescues seals and returns them to their natural habitat. The first batch of boxes was supplied in the beginning of May and will replace the wooden crates that are in use today.

TISSUE For people on the go

Fresh launch in Mexico

■ During May, SCA Tissue Europe launched one-pack Edet Torky tissue dispenser that is practical and easy to carry. The product is intended for situations outside the home, such as on a picnic or in a boat. Market research has shown that this kind of product is welcomed by consumers. As the tissue is stored in a bag made of polyester with a plastic backing, it stays clean and dry. The product is refillable and can therefore be used many times. The Edet Torky “on the go” will be available in a selected number of stores for a limited time.

■ SCA Mexico relaunched its longtime best seller in the feminine protection segment, the Saba Confort Chamomile, in June this year. Two new scented products were also launched at the same time. This means that Saba Confort liners and pads now come in three hypoallergenic aromas: chamomile, jasmine and orange blossom. SCA’s goal with this launch and relaunch is to become the aroma flagship in feminine protection category in Mexico. Aromas, natural essences and scented products are popular in Mexico and throughout Latin America.

rolls for easy access SCA Tissue has developed a toilet

paper package that is easier to open. “Our Zewa Soft comfort opening specifically addresses consumer needs for convenient handling and more comfort,” says Thomas Günther, marketing director of SCA Consumer Tissue Europe. “The idea arose from a project dealing with marketing to seniors. The product had to offer enhanced convenience. Naturally, this packaging innovation offers added value to all other age groups as well.”

26*SCA SHAPE [ 2 *2007 ]

The new Zewa Soft has a perforated tear flap on the side that makes it easier to open the package, thus allowing easy roll-by-roll withdrawal. The remaining rolls are stored hygienically in the package. The special comfort opening was developed in cooperation with the Meyer-Hentschel-Institut of Saarbrücken, Germany, which specializes in optimizing products for seniors. The new Zewa Soft was launched

in combination with a softness upgrade in April 2007 and is sold throughout Germany, Austria, Switzerland and other countries.

The Libresse “Laughter” campaign is aimed at women of every age. Ordinary women are used in the ad campaign, not models, to allow every woman to identify with the women in the ads.

SCA’s oldest mill celebrates 350 years ■ Rembrandt was alive when SCA’s oldest mill was founded in 1657 in Holland. The SCA Packaging De Hoop containerboard paper mill celebrated its 350th anniversary on May 11. SCA is committed to growing the business in the town of Eerbeek, the Netherlands, contributing to the sustainability of life and work in the community. SCA Packaging De Hoop obtained world-class status for energy consumption in a global energy benchmark study in 2002 for the Royal Dutch Paper and Board Association by Finland’s Jaakko Pöyry Consulting. “The site produces its own energy in a high-tech combined heat and power plant, contributing with substantial investments in energy-saving projects in recent years to lower consumption of energy and fossil fuel and reduced CO2 emissions,” says Henk Lingbeek, managing director of SCA Packaging De Hoop. SCA’s businesses in Eerbeek also include a corrugated box plant and a recycling organization.

[ 2 *2007 ] SHAPE SCA *27



sca inside Shape named Best Newcomer

Bigger diapers for Malaysian babies

■ Shape, SCA’s magazine, has won the prestigious Golden Leaf (“Guldbladet”) award for Best Newcomer of the year.   It was the seventh OLYMPIC GOLD FOR CHINA IN HYGIENE 2008 year in a row that awards were given to Sweden’s top customer, personnel and membership magazines by the Swedish Association of Custom Publishers, representing the customer magazine industry. In giving Shape the prestigious award, the jury’s citation read: “This magazine has a daring, humo-rous, attractive feel and a broad, exciting content. It is a fresh newcomer that creates expectations that make the reader look forward to the next issue. The magazine will give a broader perspective to SCA’s image and strengthen the brand.”

SHAPE

A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 1 2007

BIG CHAINS BUILD BRANDS

Clean sweep BLOGS CAPTURE CONSUMERS’ IMAGINATION

STRONG SAILING FOR WIND POWER COPPER POTS MAKE STRONGER TREES

BABY DIAPERS GO HIGH FASHION HOW TO KEEP LOBSTER FRESH

Sky-high patent numbers * Sustainable transport with CTI * Build it out of wood

EN01 omslag indd Sec3:7

3/5/2007 15:55:59

SCA Hygiene South Asia has launched Drypers XXL, the first baby diaper brand in Malaysia to offer diapers in a bigger size in the economy segment. The new, larger diaper has a better, more comfortable fit for bigger babies. Even the absorption capacity is better. Drypers is the leading diaper brand in Malaysia and Singapore, taking more than more than 25 percent of the market in both countries and about 15 percent of the market in Thailand. Apart from these three core markets, Drypers is also exported to Vietnam, South Africa, the Maldives, Indonesia, India, Cambodia and Brunei. The global demand for Drypers has boosted its production to more than 800 million pieces a year.

SCA invests USD 145 million in a new tissue paper machine for Barton, Alabama, USA.“This investment in Barton is key to the development of our business in the fast-growing Southeast region. With a fully integrated facility in Barton, we will be able to further improve our service levels and deliver more consistent quality to our customers in the region. The investment will mean significant cost savings once it is operational,” says Thomas Wulkan, president of SCA Americas.

MARch SCA is to acquire Procter & Gamble’s entire European tissue operations including a number of well-known and strong brands. This acquisition is an important step in improving profitability in SCA’s European consumer tissue operations. SCA intends to expand its product offering of brands and supply of quality private-label products as well as strengthen product development based on an awareness of consumer needs.

28*SCA SHAPE [ 2 *2007 ]

The purchase price of EUR 512 million will be paid in cash. Annual net sales are close to EUR 500 million. The EBITDA margin is on a par with SCA’s total tissue operations. Synergies are expected to be considerable. The acquisition is subject to approval from the relevant authorities. SCA and Godrej Consumer Products Limited form a joint venture to manufacture and market sanitary napkins and baby diapers in India, Nepal and Bhutan. Godrej SCA Hygiene Limited is being set up with an equity capital of 200 million rupees (SEK 32 million) through equal investments by both parents. Godrej Consumer Products Limited is one of India’s fastest-growing companies in the field of fast-moving consumer goods. ”The joint venture gives us a great platform for entering the Indian market with our successful consumer products,” says Gunnar Johansson, president of SCA Personal Care. SCA acquires 20 percent of Chinese tissue company Vinda. “Acquisition of a

stake in Vinda provides a good opportunity for SCA to establish an important position in the fast-growing Chinese tissue market,” says Jan Åström, CEO. “We will be part owner in a profitable and fast-growing company with modern assets and a strong brand.” The acquisition follows SCA’s strategy to grow in China. The Vinda brand is seen as one of the strongest Tissue brands in China, the second-largest tissue market in the world. The purchase price is set at 366 million yuan, or SEK 330 million.

APRIL Expansion investments in two plants in Poland (approximately EUR 7 million in each plant) and one in Romania (EUR 10 million), together with two new corrugated board plants in China (in Nanjing USD 12 million and in Suzhou USD 20 million). These investments mark yet another step in SCA’s plans to capture market shares in some of the largest growth markets in the world. For more details about the investments read press releases at www.sca.com.

Photo: Margareta Hed

SCA’s annual shareholders’ meeting was held at the beginning of April this year. It took place in Aula Magna at Stockholm University, just outside Stockholm. Some 400 shareholders attended, and several gave their answers to three quick questions:

■

recent investment decisions FEBRUARy

8 shareholders on SCA

1. How long have you had shares in SCA? 2. Why did you come to the annual meeting? 3. What do you think about SCA? Agneta Gärdin Wulf, 67, Djursholm, Sweden 1. I got my shares from my grandmother and grandfather when I was little. Then I gave them to my daughter. About 20 years ago, I bought my own SCA shares. I’m a partner of SCA’s, because I own forests and sell pine and spruce to SCA. 2. It’s fun to see what happens to the trees. It’s fun to be here. 3. It’s a shame that SCA got rid of its energy division. I hope they keep their forests.

Best in test SCA Graphic Sundsvall reports

favorable results for environment, health, safety and energy during 2006. A new recovery boiler in Östrand, a new flue-gas condensation plant in Ortviken, certification in accordance with the Swedish standard for energy management systems and better reporting of incidents are just a few of the initiatives that are already producing positive effects and will continue to do so. “At Ortviken, oil consumption and emissions were the lowest in modern times,” says Roine Morin, environmental manager, SCA Forest Products. “The efficient combustion technology in Östrand’s new recovery boiler also reduces emissions of dust, nitrogen oxides and sulphur from the plant.” In 2006, IVL Swedish Environmental Research Institute’s laboratory performed a chemical-biological characterization of Östrand’s wastewater. “The results were the best ever measured in wastewater from a forest-products plant,” Morin says.

Renate Köhne, 66, Nacka, Sweden 1. I bought shares for my daughter’s account a month ago, so I’m here in her place. 2. I’m here because I want to know whether there’s anything new. It’s nice here. And then I want to hear how much the directors earn. 3. I want to know more about SCA. Hans Hedberg, 81, Stockholm, Sweden 1. I’ve had shares for 10 or 20 years. I’ve had contacts with SCA through my job. 2. I usually go to the annual meeting. You learn about the company here. It’s interesting when they present the annual report. 3. It’s a stable, well-managed company. The management is smart. It’s important to have good management. Ulf Ernow, 59, Stockholm, Sweden 1. I have a general interest in shares. I bought my first shares way back in the 1960’s with my first student loan. 2. There are a lot of formalities at the annual meeting, but it’s interesting to hear the CEO’s speech. 3. SCA is a good company but it’s a tough industry. It’s reliant on how the economy is doing.

Christopher Ödmann, 47, Stockholm, Sweden 1. My shareholding began with an inheritance in 2002. Then I bought more. 2. You get more information at the annual meeting than in the annual report and in newspapers. The statement from the CEO is important. 3. It’s interesting that SCA is a forest company and that so many things can be made out of paper, like diapers, for instance. The consumer angle is interesting and also the environmental issues. If SCA doesn’t take environmental issues into consideration, then I don’t want to keep my shares. Axel Gruvner, 87, Stockholm and Värmland, Sweden 1. I’ve owned shares for a long time. I’ve worked in the forest industry. 2. It’s interesting to meet people I know, and I get good information. 3. SCA is a good company. The money has grown. I give shares to my grandchildren. Gerd Strandell, 67, Stockholm, Sweden 1. I got my shares when I was a child. Then I sold them but bought them back again. 2. It’s interesting to be at the annual meeting. I’m a chemist and know the business. I really want to see how the money is being managed. 3. No comment. Annemai Berggren, 60, Sandviken, Sweden 1. I have shares in different companies. I’ve had shares in SCA for 8 or 10 years. 2. I’m in Stockholm to celebrate my grandson’s birthday, and I took the opportunity to bring him along to the annual meeting, as a study visit. 3. SCA is a well-known company where I come from in northern Sweden.

[ 2 *2007 ] SHAPE SCA *29



sca inside Shape named Best Newcomer

Bigger diapers for Malaysian babies

■ Shape, SCA’s magazine, has won the prestigious Golden Leaf (“Guldbladet”) award for Best Newcomer of the year.   It was the seventh OLYMPIC GOLD FOR CHINA IN HYGIENE 2008 year in a row that awards were given to Sweden’s top customer, personnel and membership magazines by the Swedish Association of Custom Publishers, representing the customer magazine industry. In giving Shape the prestigious award, the jury’s citation read: “This magazine has a daring, humo-rous, attractive feel and a broad, exciting content. It is a fresh newcomer that creates expectations that make the reader look forward to the next issue. The magazine will give a broader perspective to SCA’s image and strengthen the brand.”

SHAPE

A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 1 2007

BIG CHAINS BUILD BRANDS

Clean sweep BLOGS CAPTURE CONSUMERS’ IMAGINATION

STRONG SAILING FOR WIND POWER COPPER POTS MAKE STRONGER TREES

BABY DIAPERS GO HIGH FASHION HOW TO KEEP LOBSTER FRESH

Sky-high patent numbers * Sustainable transport with CTI * Build it out of wood

EN01 omslag indd Sec3:7

3/5/2007 15:55:59

SCA Hygiene South Asia has launched Drypers XXL, the first baby diaper brand in Malaysia to offer diapers in a bigger size in the economy segment. The new, larger diaper has a better, more comfortable fit for bigger babies. Even the absorption capacity is better. Drypers is the leading diaper brand in Malaysia and Singapore, taking more than more than 25 percent of the market in both countries and about 15 percent of the market in Thailand. Apart from these three core markets, Drypers is also exported to Vietnam, South Africa, the Maldives, Indonesia, India, Cambodia and Brunei. The global demand for Drypers has boosted its production to more than 800 million pieces a year.

SCA invests USD 145 million in a new tissue paper machine for Barton, Alabama, USA.“This investment in Barton is key to the development of our business in the fast-growing Southeast region. With a fully integrated facility in Barton, we will be able to further improve our service levels and deliver more consistent quality to our customers in the region. The investment will mean significant cost savings once it is operational,” says Thomas Wulkan, president of SCA Americas.

MARch SCA is to acquire Procter & Gamble’s entire European tissue operations including a number of well-known and strong brands. This acquisition is an important step in improving profitability in SCA’s European consumer tissue operations. SCA intends to expand its product offering of brands and supply of quality private-label products as well as strengthen product development based on an awareness of consumer needs.

28*SCA SHAPE [ 2 *2007 ]

The purchase price of EUR 512 million will be paid in cash. Annual net sales are close to EUR 500 million. The EBITDA margin is on a par with SCA’s total tissue operations. Synergies are expected to be considerable. The acquisition is subject to approval from the relevant authorities. SCA and Godrej Consumer Products Limited form a joint venture to manufacture and market sanitary napkins and baby diapers in India, Nepal and Bhutan. Godrej SCA Hygiene Limited is being set up with an equity capital of 200 million rupees (SEK 32 million) through equal investments by both parents. Godrej Consumer Products Limited is one of India’s fastest-growing companies in the field of fast-moving consumer goods. ”The joint venture gives us a great platform for entering the Indian market with our successful consumer products,” says Gunnar Johansson, president of SCA Personal Care. SCA acquires 20 percent of Chinese tissue company Vinda. “Acquisition of a

stake in Vinda provides a good opportunity for SCA to establish an important position in the fast-growing Chinese tissue market,” says Jan Åström, CEO. “We will be part owner in a profitable and fast-growing company with modern assets and a strong brand.” The acquisition follows SCA’s strategy to grow in China. The Vinda brand is seen as one of the strongest Tissue brands in China, the second-largest tissue market in the world. The purchase price is set at 366 million yuan, or SEK 330 million.

APRIL Expansion investments in two plants in Poland (approximately EUR 7 million in each plant) and one in Romania (EUR 10 million), together with two new corrugated board plants in China (in Nanjing USD 12 million and in Suzhou USD 20 million). These investments mark yet another step in SCA’s plans to capture market shares in some of the largest growth markets in the world. For more details about the investments read press releases at www.sca.com.

Photo: Margareta Hed

SCA’s annual shareholders’ meeting was held at the beginning of April this year. It took place in Aula Magna at Stockholm University, just outside Stockholm. Some 400 shareholders attended, and several gave their answers to three quick questions:

■

recent investment decisions FEBRUARy

8 shareholders on SCA

1. How long have you had shares in SCA? 2. Why did you come to the annual meeting? 3. What do you think about SCA? Agneta Gärdin Wulf, 67, Djursholm, Sweden 1. I got my shares from my grandmother and grandfather when I was little. Then I gave them to my daughter. About 20 years ago, I bought my own SCA shares. I’m a partner of SCA’s, because I own forests and sell pine and spruce to SCA. 2. It’s fun to see what happens to the trees. It’s fun to be here. 3. It’s a shame that SCA got rid of its energy division. I hope they keep their forests.

Best in test SCA Graphic Sundsvall reports

favorable results for environment, health, safety and energy during 2006. A new recovery boiler in Östrand, a new flue-gas condensation plant in Ortviken, certification in accordance with the Swedish standard for energy management systems and better reporting of incidents are just a few of the initiatives that are already producing positive effects and will continue to do so. “At Ortviken, oil consumption and emissions were the lowest in modern times,” says Roine Morin, environmental manager, SCA Forest Products. “The efficient combustion technology in Östrand’s new recovery boiler also reduces emissions of dust, nitrogen oxides and sulphur from the plant.” In 2006, IVL Swedish Environmental Research Institute’s laboratory performed a chemical-biological characterization of Östrand’s wastewater. “The results were the best ever measured in wastewater from a forest-products plant,” Morin says.

Renate Köhne, 66, Nacka, Sweden 1. I bought shares for my daughter’s account a month ago, so I’m here in her place. 2. I’m here because I want to know whether there’s anything new. It’s nice here. And then I want to hear how much the directors earn. 3. I want to know more about SCA. Hans Hedberg, 81, Stockholm, Sweden 1. I’ve had shares for 10 or 20 years. I’ve had contacts with SCA through my job. 2. I usually go to the annual meeting. You learn about the company here. It’s interesting when they present the annual report. 3. It’s a stable, well-managed company. The management is smart. It’s important to have good management. Ulf Ernow, 59, Stockholm, Sweden 1. I have a general interest in shares. I bought my first shares way back in the 1960’s with my first student loan. 2. There are a lot of formalities at the annual meeting, but it’s interesting to hear the CEO’s speech. 3. SCA is a good company but it’s a tough industry. It’s reliant on how the economy is doing.

Christopher Ödmann, 47, Stockholm, Sweden 1. My shareholding began with an inheritance in 2002. Then I bought more. 2. You get more information at the annual meeting than in the annual report and in newspapers. The statement from the CEO is important. 3. It’s interesting that SCA is a forest company and that so many things can be made out of paper, like diapers, for instance. The consumer angle is interesting and also the environmental issues. If SCA doesn’t take environmental issues into consideration, then I don’t want to keep my shares. Axel Gruvner, 87, Stockholm and Värmland, Sweden 1. I’ve owned shares for a long time. I’ve worked in the forest industry. 2. It’s interesting to meet people I know, and I get good information. 3. SCA is a good company. The money has grown. I give shares to my grandchildren. Gerd Strandell, 67, Stockholm, Sweden 1. I got my shares when I was a child. Then I sold them but bought them back again. 2. It’s interesting to be at the annual meeting. I’m a chemist and know the business. I really want to see how the money is being managed. 3. No comment. Annemai Berggren, 60, Sandviken, Sweden 1. I have shares in different companies. I’ve had shares in SCA for 8 or 10 years. 2. I’m in Stockholm to celebrate my grandson’s birthday, and I took the opportunity to bring him along to the annual meeting, as a study visit. 3. SCA is a well-known company where I come from in northern Sweden.

[ 2 *2007 ] SHAPE SCA *29

Camera

Good-looking design toilets, as they are called, are surprisingly hard to find, both in stores and in décor magazines. Strangely enough, most bathroom décor articles in glossy magazines avoid showing photos of toilets, as if rich people didn’t have one of our most basic needs. One of the bestlooking toilets without a doubt is this floor-standing model, part of Stefano Giovannoni’s bathroom series “Il Bagno.” He designed it for Alessi in 2003. A washbasin, bidet and bathtub are also available in the series.

photo: pixelio.de

private

photo: istockphoto

In an era when few rooms are private, the bathroom will soon be the only place where we can truly be totally alone.

absolutely There is no place as private as

30*SCA SHAPE [ 2 *2007 ]

by per öqvist

year-old toilet was found, made of two flat stones with water running between them. The modern toilet, or more precisely the dry privy, was born when people realized that a receptacle could be put under the toilet seat. For royalty, the seat was covered in velvet. The homes of the rich often had annexes built with a hole over a man-made channel. Moats at that time served more than one purpose and were not nice to take a tumble into. Not until the early 20th century were water toilets included in the

city buildings. Sewage usually ran right into nearby water sources. The environment both indoors and outdoors quickly improved, and the number of illnesses fell dramatically. In the 1980s, the media made

fun of a Swedish research paper on a topic about how a bathroom should be equipped to make it as easy to clean as possible. One piece of advice was to mount the toilet on the wall. In the 2000’s, well-known designers have created their own bathroom series, with toilets be-

coming increasingly exciting in terms of design. In public settings, more and more money is also being invested in exclusive toilets, which are meant to make an impression on visitors. Nowadays toilet paper is available in many different textures, prices and colors – the latest trend is black toilet paper! Another depicts printed money. When will the morning paper be printed on toilet paper? After all, we do sit there and read… Ladies and gentlemen, please enter the secret room. ▲

Clean, simple and good-looking at a rest stop on the German Autobahn. photo : pixelio.de

Alessi’s Merdolino toilet brush, in the form of a stylized plant, is reminis cent of the world of comic books. A modern, beloved design classic from 1993 by Stefano Giovannoni.



the bathroom – and still so strangely taboo. In countless home décor articles about bathrooms, with everything from classic and beautiful to minimalist and high-tech, the toilet is rarely shown. Yet it’s here that we see to our needs, read a newspaper or contemplate life. In an era when few rooms are private – more and more, we are being monitored by tiny, discreet cameras – the bathroom will soon be the only place where we can truly be totally alone. The toilet is not a new invention. In excavations in Egypt, a 5,000-

An ancient toilet in the city of Ephesus in present-day Turkey.

[ 2 *2007 ] SHAPE SCA *31

Camera

Good-looking design toilets, as they are called, are surprisingly hard to find, both in stores and in décor magazines. Strangely enough, most bathroom décor articles in glossy magazines avoid showing photos of toilets, as if rich people didn’t have one of our most basic needs. One of the bestlooking toilets without a doubt is this floor-standing model, part of Stefano Giovannoni’s bathroom series “Il Bagno.” He designed it for Alessi in 2003. A washbasin, bidet and bathtub are also available in the series.

photo: pixelio.de

private

photo: istockphoto

In an era when few rooms are private, the bathroom will soon be the only place where we can truly be totally alone.

absolutely There is no place as private as

30*SCA SHAPE [ 2 *2007 ]

by per öqvist

year-old toilet was found, made of two flat stones with water running between them. The modern toilet, or more precisely the dry privy, was born when people realized that a receptacle could be put under the toilet seat. For royalty, the seat was covered in velvet. The homes of the rich often had annexes built with a hole over a man-made channel. Moats at that time served more than one purpose and were not nice to take a tumble into. Not until the early 20th century were water toilets included in the

city buildings. Sewage usually ran right into nearby water sources. The environment both indoors and outdoors quickly improved, and the number of illnesses fell dramatically. In the 1980s, the media made

fun of a Swedish research paper on a topic about how a bathroom should be equipped to make it as easy to clean as possible. One piece of advice was to mount the toilet on the wall. In the 2000’s, well-known designers have created their own bathroom series, with toilets be-

coming increasingly exciting in terms of design. In public settings, more and more money is also being invested in exclusive toilets, which are meant to make an impression on visitors. Nowadays toilet paper is available in many different textures, prices and colors – the latest trend is black toilet paper! Another depicts printed money. When will the morning paper be printed on toilet paper? After all, we do sit there and read… Ladies and gentlemen, please enter the secret room. ▲

Clean, simple and good-looking at a rest stop on the German Autobahn. photo : pixelio.de

Alessi’s Merdolino toilet brush, in the form of a stylized plant, is reminis cent of the world of comic books. A modern, beloved design classic from 1993 by Stefano Giovannoni.



the bathroom – and still so strangely taboo. In countless home décor articles about bathrooms, with everything from classic and beautiful to minimalist and high-tech, the toilet is rarely shown. Yet it’s here that we see to our needs, read a newspaper or contemplate life. In an era when few rooms are private – more and more, we are being monitored by tiny, discreet cameras – the bathroom will soon be the only place where we can truly be totally alone. The toilet is not a new invention. In excavations in Egypt, a 5,000-

An ancient toilet in the city of Ephesus in present-day Turkey.

[ 2 *2007 ] SHAPE SCA *31

camera

Left: People will disagree whether this graceful Art Nouveau creation is French elegance at its best or pure kitsch. It can be given a test run at the exclusive store Maison Belle Epoque, known for its fine furniture and select art.

Right: The beautiful form of the toilet has inspired many artists. Here, photo art by Mikael Andersson. Below: A typical dry privy found in most summer cabins in Sweden.

Below: More facilities will soon be needed along this 4,000-mile-long wall.

The bathroom at the restaurant Mirador César Manrique on the island of La Gomera has been named by the British Guardian Unlimited “the world’s best view from a lavatory.” La Gomera is one of the smaller and more charming Canary Islands. The bathroom has a panoramic window over the Valle Gran Rey valley.

photo: sören colbing/ims

This portable toilet can be placed anywhere.

32*SCA SHAPE [ 2 *2007 ]

photo: roger ressmeyer/scanpix

photo: doug scott/scanpix

photo: martin siepmann/scanpix

photo: mikael andersson/mira

At Arlanda Airport, the typical verdant meadows of Sweden in summer are far away. When new urinals were installed in Terminal 5 at Arlanda, an attempt was made to instead create the same feeling through art.

photo: magnus wahman/ims

Black is in. Nothing is trendier in the bathroom right now than black toilet paper. If you’re bold enough to have black toilet paper in your guest bathroom, you’ll definitely give your guests something to talk about at dinner.

Left: When astronaut Christer Fugelsang returned to Earth after becoming the first Swede in space, the most frequent question he got was how people took care of their natural needs in total weightlessness. Here’s an example of what the toilet on a spaceship looks like. [[22**2006 2007 ] SHAPE SCA *33

camera

Left: People will disagree whether this graceful Art Nouveau creation is French elegance at its best or pure kitsch. It can be given a test run at the exclusive store Maison Belle Epoque, known for its fine furniture and select art.

Right: The beautiful form of the toilet has inspired many artists. Here, photo art by Mikael Andersson. Below: A typical dry privy found in most summer cabins in Sweden.

Below: More facilities will soon be needed along this 4,000-mile-long wall.

The bathroom at the restaurant Mirador César Manrique on the island of La Gomera has been named by the British Guardian Unlimited “the world’s best view from a lavatory.” La Gomera is one of the smaller and more charming Canary Islands. The bathroom has a panoramic window over the Valle Gran Rey valley.

photo: sören colbing/ims

This portable toilet can be placed anywhere.

32*SCA SHAPE [ 2 *2007 ]

photo: roger ressmeyer/scanpix

photo: doug scott/scanpix

photo: martin siepmann/scanpix

photo: mikael andersson/mira

At Arlanda Airport, the typical verdant meadows of Sweden in summer are far away. When new urinals were installed in Terminal 5 at Arlanda, an attempt was made to instead create the same feeling through art.

photo: magnus wahman/ims

Black is in. Nothing is trendier in the bathroom right now than black toilet paper. If you’re bold enough to have black toilet paper in your guest bathroom, you’ll definitely give your guests something to talk about at dinner.

Left: When astronaut Christer Fugelsang returned to Earth after becoming the first Swede in space, the most frequent question he got was how people took care of their natural needs in total weightlessness. Here’s an example of what the toilet on a spaceship looks like. [[22**2006 2007 ] SHAPE SCA *33

We let an expert test our super soft nappy.

shaping a view Goals and completion

Daniel Solberg

Process engineer who has led the SCA Water Network since 2004.

“water management is a key environmental objective for SCA.”

On the basis of recommendations of the SCA Water Network, SCA has formulated its water management commitments for the period 2005 to 2010 as a 15 percent reduction of specific water consumption and a 30 percent reduction of organic content in effluents. The water network is made up of European representatives from each of the Tissue, Packaging and Forest Products business areas.

WATER NETWORK with CLEAR TARGETS

w

ater is one of the earth’s key resources. If you Google the word “water,” you get 962 million hits – a clear sign that water is a vital part of everyday life and a scarce item in many parts of the world. As a consequence, water distribution and water management have become a global political issue, something that is evident in the many water-related initiatives from the UN, the EU and other bodies. Water is also a key element in the production of pulp and paper. From an SCA perspective, this makes water management a key environmental objective for the Group, alongside the reduction of carbon dioxide emissions and use of non-controversial wood sources. In order to review the status of water management and identify improvements from an environmental as well as a business perspective, the Group has set up the SCA Water Network. As a large, global company, SCA has considerable internal experience and expertise in this area. One of the network’s tasks was therefore to benchmark plants to identify best practice within the Group and to seek out people with key knowledge. The objectives were to reduce the quantity of water in the production processes and ensure that the effluent water is as clean as possible.

tively inexpensive. The investments needed are modest and the know-how already exists within SCA. The second objective – to make sure the water is as clean as possible – is inherently a more expensive operation, since it represents large investments in purification equipment. However, there are clear links between the two objectives. It is important to do the right things in the right order. If you reduce the quantity of water in the production process – which is not all that difficult to do – you will also reduce the required size of your purification plant. As a result, you can minimize the investment needed without compromising the quality of water purification. ▲

Treasures Ultra. Soft, snug-fit for ultra comfort. At Treasures®, we understand you want a nappy that is not only absorbent with excellent leakage protection but also extra soft and comfortable on your baby’s sensitive skin. That’s why our newborn sizes are made from super-soft materials and are specially designed with our unique Rapid Flow Liner, which quickly draws liquid away from your baby’s skin to keep them dry and comfortable. Treasures Rapid Flow Liner quickly draws moisture away from baby’s skin.

We discovered that our plants in Spain and Italy,

Super absorbent Treasures Drycore locks wetness away.

4

Soft breathable sides allow air to circulate. 3

Soft snug-fit waistband for custom fit.

photo: sven eketrä

as well as our plant in Arizona in the United States, were excelling in this field. People in these areas are accustomed to a limited supply of water, which is reflected in the efficient way they operate their plants. If we can implement practices from these plants in other plants in our Group, much will be achieved. From a financial perspective this is good news. Reducing the amount of water in the production process is rela-

Extra soft outer cover for our softest nappy ever!

34*SCA SHAPE [ 2 *2007 ]

C4567UNBFP

1 2

5

We let an expert test our super soft nappy.

shaping a view Goals and completion

Daniel Solberg

Process engineer who has led the SCA Water Network since 2004.

“water management is a key environmental objective for SCA.”

On the basis of recommendations of the SCA Water Network, SCA has formulated its water management commitments for the period 2005 to 2010 as a 15 percent reduction of specific water consumption and a 30 percent reduction of organic content in effluents. The water network is made up of European representatives from each of the Tissue, Packaging and Forest Products business areas.

WATER NETWORK with CLEAR TARGETS

w

ater is one of the earth’s key resources. If you Google the word “water,” you get 962 million hits – a clear sign that water is a vital part of everyday life and a scarce item in many parts of the world. As a consequence, water distribution and water management have become a global political issue, something that is evident in the many water-related initiatives from the UN, the EU and other bodies. Water is also a key element in the production of pulp and paper. From an SCA perspective, this makes water management a key environmental objective for the Group, alongside the reduction of carbon dioxide emissions and use of non-controversial wood sources. In order to review the status of water management and identify improvements from an environmental as well as a business perspective, the Group has set up the SCA Water Network. As a large, global company, SCA has considerable internal experience and expertise in this area. One of the network’s tasks was therefore to benchmark plants to identify best practice within the Group and to seek out people with key knowledge. The objectives were to reduce the quantity of water in the production processes and ensure that the effluent water is as clean as possible.

tively inexpensive. The investments needed are modest and the know-how already exists within SCA. The second objective – to make sure the water is as clean as possible – is inherently a more expensive operation, since it represents large investments in purification equipment. However, there are clear links between the two objectives. It is important to do the right things in the right order. If you reduce the quantity of water in the production process – which is not all that difficult to do – you will also reduce the required size of your purification plant. As a result, you can minimize the investment needed without compromising the quality of water purification. ▲

Treasures Ultra. Soft, snug-fit for ultra comfort. At Treasures®, we understand you want a nappy that is not only absorbent with excellent leakage protection but also extra soft and comfortable on your baby’s sensitive skin. That’s why our newborn sizes are made from super-soft materials and are specially designed with our unique Rapid Flow Liner, which quickly draws liquid away from your baby’s skin to keep them dry and comfortable. Treasures Rapid Flow Liner quickly draws moisture away from baby’s skin.

We discovered that our plants in Spain and Italy,

Super absorbent Treasures Drycore locks wetness away.

4

Soft breathable sides allow air to circulate. 3

Soft snug-fit waistband for custom fit.

photo: sven eketrä

as well as our plant in Arizona in the United States, were excelling in this field. People in these areas are accustomed to a limited supply of water, which is reflected in the efficient way they operate their plants. If we can implement practices from these plants in other plants in our Group, much will be achieved. From a financial perspective this is good news. Reducing the amount of water in the production process is rela-

Extra soft outer cover for our softest nappy ever!

34*SCA SHAPE [ 2 *2007 ]

C4567UNBFP

1 2

5

Mästare på exponering. Såväl ute...

Swedish ad presenting SCA Packaging as a “Master of exposure. Outdoors as well as inside the store”.

...som inne. Budskap och produkter kan exponeras på många sätt. Vi vet vad som fungerar för att fånga uppmärksamheten i hård konkurrens om mottagarna. Både i butiken och ute på gatan.

SCA PACKAGING SWEDEN AB DIVISION DISPLAY Box 760, 601 17 NORRKÖPING Telefon 011-28 03 00 . Fax 011-31 39 80 E-post [email protected]