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March 2014 | $10 www.canadianpackaging.com Bret Mason, Associate Director of Operations, Sleeman Breweries Ltd. Ark Skupien, Technical Manager, Sleeman Breweries Ltd. Rob Maarse, Packaging Manager, Sleeman Breweries Ltd. Bottoms Up! A palletizing overhaul keeps Sleeman’s home brewery up to speed with soaring marketplace status Publication mail agreement #40069240. Story on page 12 Flying the coop Page 20 In this issue: Packaging for Shelf-Life • Stretchwrapping • Product ID Now Cover Story CLEAR PATH TO GROWTH Popular Canadian beermaker brews up a potent mix of packaging line efficiency and patient brand-building to take over the domestic beer market’s sweet middle ground F ew beverages are as universally enjoyed, adored and revered as beer—often cited as the third-most popular drink on the planet after water and tea—and it’s hardly surprising that just about every developed country in the world where alcohol consumption is legal boasts at least one or two national beer brands to keep that collective local thirst well-quenched during both the good and the more troubled times. Having been around for more than 9,500 years, according to credible scientific evidence, the world’s oldest fermented beverage has withstood countless epic conf licts, falls of empires and entire civilizations, catastrophic plagues and all sorts of other man-made and natural calamities not only with its reputation intact, but in fact still showing as much growth potential and mass appeal worldwide as ever—this century no exception. And although much of that modern-day growth will occur in places other than the traditional mature, slow-growth markets like Canada, the U.S. and western Europe, it seems that there’s always room for a truly innovative industry newcomer with something really special and unique to offer the marketplace. And while a newcomer is arguably no longer the most accurate term to describe a company that marked its modern-day quarter-century anniversary a year ago, there is no shortage of youthful enthusiasm, optimism and exuberance to provide a lively backdrop to the continuous, around-theclock beer production and packaging taking place at the Sleeman Breweries Ltd. brewing complex in Guelph, Ont. Rich History Started back up in 1988 from a heritage tracing to 1834 by company founder John Sleeman—replicating a famed family ‘black book’ of traditional recipes once used by his forefathers to smuggle Canadianmade suds into the U.S. during the Prohibition era—today’s Sleeman may no longer be the ‘new kid on the block’ challenging the country’s traditional well-entrenched marketplace duopoly of venerable brewing giants MolsonCoors and Labatt, but it’s a fair trade-off for a hard-earned significant share of the total Canadian beer market. Operating as a subsidiary of Japanese-owned brewing giant Sapporo Breweries Limited since 2006, Sleeman’s rise to national prominence has been well-ref lected in recent years with well-executed integration of several popular regional craft-brewers—notably the Vernon, B.C.based Okanagan Spring Brewery in 1996 and Unibroue of Chambly, Que., in 2004—that have enabled the company to increase its geographic reach, production capacity and product portfolio in a meaningful enough way to cement its status as Canada’s third-largest beer producer by volume. This acquisition-driven growth was underpinned by the constant expansion of the original Guelph brewery over the years, which has grown from a smallish 50,000-square-foot operation with 35 employees into an imposing, 120,000-square-foot 12 • WWW.CANADIANPACKAGING.COM From Left: Sleeman Breweries packaging manager Rob Maarse, technical manager Ark Skupien, and associate director of operations Bret Mason strike a pose with some of the company’s unique product packaging near the entrance to the brewer’s on-site retail shop, which also serves as reception area for the busy, 120,000-square foot Guelph production facility (inset) originally started up by John Sleeman back in 1988. CANADIAN PACKAGING • March 2014 Cover Story A low back-pressure SystemPlast chain conveyor from Emerson Industrial Automation helps ensure a smooth ride for corrugated trays filled with Sleeman beer cans all the way to the palletizing station. Installed at the Guelph brewery about two years ago, the fully-automatic Alvey 910 model palletizer manufactured by Intelligrated is built for continuous, around-the-clock production speeds of up to 125 cases per hour, with the machine’s innovative slat dividers (inset) helping ensure gentle product handling and to provide a broad choice of layer patterns for optimal operational flexibility. building employing over 200 people on a threeshift, 24/7 brewing and 24/5 packaging schedules to keep up with buoyant market demand for the company’s f lagship Sleeman Original Draught brand and other popular domestic beer brands. Today, the company’s vast product portfolio also comprises the easy-drinking Sleeman Clear 2.0 and Light brands—along with the time-honored product family made up of unique craft brews like Sleeman Cream Ale, Honey Brown Lager, Silver Creek Lager, Fine Porter, India Pale Ale (IPA) and Dark/ Rousse—as well as the parent company’s worldrenowned Sapporo premium draught. With annual output of just over one million hectoliters, a rough equivalent of 13 million cases of 24 bottles, the Guelph plant nowadays houses three separate dedicated production lines, with the keg line accounting for about five per cent of the output; the bottling line for about 30 per cent; and the canning line for the rest of beer production. According to Sleeman’s national director of procurement Steve Wilkie, many of the capital investment projects taking place at the Guelph facility in recent years were undertaken to meet the growing Canadian market demand for canned beers. Strong Enough This strong Canadian beer market trend prompted the Guelph operation to install a state-of-the-art KHS canning line in 2002, Wilkie relates, and follow up with continuous upgrades to canning capacity in the years since, including commissioning of new equipment from some of the beer production machinery’s leading players such as Krones, MeadWestvaco, Sidel and, more recently, Intelligrated. As Wilkie explains, “One of the key trends that Sleeman, along with other brewers, have had to deal today with is the fast-growing popularity of cans among Canadian consumers. “Recognizing this trend, along with the overall growth of the business, we started to look for opportunities to increase overall throughput of the canning line,” says Wilkie, relating that as the production and variety of the canned products increased, so did the various bottlenecks related to the canning line’s original equipment—particularly in the end-of-line packaging area. “Whereas the can line originally started out 10 years ago as a single-shift operation, we are now running three full shifts on the line,” the brewery’s packaging manager Rob Maarse told Canadian Packaging on a recent visit to the Guelph plant. “We managed the growth for a while the best we could with some incremental upgrades,” recalls the brewery’s technical manager Ark Skupien, but ultimately the company realized that it would need to modernize its palletizing and other end-of-line machinery to keep up with the increased output. “We had a very old piece of equipment that was originally sufficient for our needs at the time of installation,’ relates Skupien, “but as our complexity increased with all the different package sizes, more frequent changeovers and higher throughputs, it became a key bottleneck—and a palletizer is not a good spot to have it.” Adds Maarse: “The main constraint was believed to be the direct result of the original palletizing equipment capability and reliability, with further analysis demonstrating a higher degree of failures around 12-pack SKUs (stock-keeping units), with the added number of turns and complex pallet patterns compared to other sizes. “The original unit was also reaching end of life with increased breakdowns, and it was unable to meet future speed increases of the line,” he says. According to Maarse and Skupien, the Sleeman plant worked together with leading engineering con- sultants Linetec Solutions for about a year to study and evaluate all the available upgrade options, before ultimately setting on the fully-automatic Alvey 910 palletizing system manufactured by Intelligrated, a leading manufacturer of automated material handling and end-of-line packaging equipment and machinery headquartered in Cincinnati, Ohio. “At the time, the Alvey 910 system was determined to be the best choice to handle our future speed demands and multiple SKUs,” recalls Maarse. Between the Lines Adds Skupien: “We looked at the more automated and robotics-based solutions and the more traditional, conventional-design solutions, and we’ve picked somewhere in between with the Alvey 910 palletizer. “It met our criteria for being very f lexible, very repeatable, and being relatively easy-to-adapt to the new SKUs,” says Skupien, estimating the total palletizing system investment at a little over $1 million. According to both Maarse and Skupien, it was money well-spent. “As a result of this installation, the can line has seen an increase in throughput of nearly 20 per cent,” notes Maarse. “Overall, we are very satisfied with the performance of the unit to date, and we are confident that it can meet our future speed and SKU requirements.” Skupien agrees: “We generally had a good idea of what this technology was capable of, and after we The fully-automatic Alvey 910 inline palletizer from Intelligrated requires only one operator to monitor its operations and to perform routine quality control checks. March 2014 • CANADIAN PACKAGINGWWW.CANADIANPACKAGING.COM • 13 Cover Story The Topmatic rotary filler from Krones handles all of the Guelph plant’s bottling production requirements, including the inline application of neck labels (inset) onto the company’s signature-clear glass bottles. studied and estimated what the capabilities would be on this line, we chose a machine that would satisfy both our current and future requirements for at least five years down the road, while improving our throughput, speed and changeover efficiencies. “The fact that Alvey 910 is based on a conventional palletizing design was also important to us,” he states. “We didn’t want to introduce a very big step up in technology for our workforce; we wanted something that our own people could maintain from the ‘get go.’ “We sent a small group of our people to Intelligrated for initial training, which we followed up with some on-site training here for other operations and maintenance staff,” he says, “and generally we’ve been able to maintain it on our own since we have installed it.” That said, Skupien is quick to extend credit to the helpful staff at Intelligrated Canada Limited, particularly customer service and support manager Michael Bell, for helping ensure smooth system startup and provide superior after-sales support. “We were running product within the first week of the installation,” says Skupien, describing the installation as a truly collective team effort also involving Linetec Solutions and Sleeman’s own engineering and maintenance staff. “Intelligrated has been very helpful in sourcing parts and in generally being very responsive whenever we would need their help. “Even though we have been able to develop some new palletizing patterns on this machine with our own people, we have also called on them for some technical help and suggestions now and then, and they’ve always been very responsive,” he adds. Happy to Help “It’s just nice to know that they’re always there in case we have some new challenges to handle. “We are very happy with the system’s performance to date,” says Skupien, stressing that minimizing machine downtime is one of the key competitive tactics that a high-throughput operation like the Guelph brewery has at its disposal. “Running under a tight schedule like we are means that any losses we may suffer this week cannot be made up during the next week,” he point out. “We really have zero margin for error—that’s just the reality dictated to us by the market,” Skupien asserts. “Hence we challenge ourselves everyday to improve our process f low, while reducing the margin for error further and further. “We have spent a lot of capital to get to where we are now, and we realize that it’s our gains in A VideoJet 1710 small-character continuous inkjet coder performs high-speed coding onto the passing glass bottles. efficiency—be it throughput, speed, changeover, operator training, etc.—that hold the key to our gains in capacity. “That’s why we are comfortable with our choice of the Alvey 910 palletizer—this machine is a world-class machine that is capable of doing anything that any other brewer’s canning line can do,” Skupien states. To enhance the new palletizer’s productivity gains, the Sleeman plant has also installed a refurbished, heavy-duty, fully-automatic ITW Muller stretchwrapping system for securing the palletized loads of beer cases to the shipping pallets, which are then automatically conveyed to their shipping or storage destinations immediately after the stretchwrap film has been applied. While the canning line has been getting most of the attention at the Guelph facility in recent years in terms of new machinery installation, the company has also undertaken significant marketing efforts to reinforce its market image. In large part, this involved playing up the notorious ‘iconic heritage’ of its signature clear-glass, (Left) Manufactured by R.A. Jones, the Maxim Beverage Muiltipacker system at the Sleeman plant is capable of processing up to 3,000 cans or 1,800 bottles per minute. (Bottom) Heavy-duty drive motors from SEW-Eurodrive help ensure reliable power transmission and distribution for the hardworking Alvey 910 high-case palletizer. 14 • WWW.CANADIANPACKAGING.COM CANADIAN PACKAGING • March 2014 Cover Story An air-knife system supplied by R.E. Morrison helps eliminate all moisture and condensation from the passing beer bottles before they are packed into cases. Manufactured by Owens-Illinois, the iconic Sleeman clear-glass beer bottles are widely credited for quick market growth of the company’s flagship beer brands. unique-shaped glass bottles that first captured the Canadian beer-lovers’ fancy and imagination back in the 1990s with their see-through ‘nothing to hide’ packaging presentation that offered consumers a refreshing break from the industry-standard, brown-colored containers sporting multiple product labels further disguising the product’s natural look and color. last year to highlight the segmentation between our core lagers and our ‘craft’ offerings, adopting unique True Colors “Sleeman has long been recognized by Canadian consumers for its clear bottle that allows the true color of each beer to be fully appreciated,” says the brewer’s national brand manager Amy Dean. “It is an icon of the brand that sets Sleeman apart from competitors by reminding consumers of its heritage and history,” Dean explains. “In 2013 the brand underwent a visual refresh, including introduction of a new logo, bottle label, can and carton graphics, and the consumer and industry response to date has been very positive” Says Dean: “We redesigned the entire portfolio of Sleeman products it’s what’s inside that counts the canadian corrugated industry develops creative packaging solutions that are cost effective, versatile, environmentally sound and food safe. our boxes are designed with high-impact graphics that communicate your brand. we focus on what matters: what’s inside the box. FOR MORE INFORMATION CIRCLE 111 Sealed Air’s Diversey Care hypogel dispensing system helps the plant maintain a strict sanitation and hygienic protocol. Visit us at www.cccabox.org to learn more. Proud supporter of the Paper & Paperboard Packaging Environmental Council (PPEC) March 2014 15 Cover Story An incline conveyor swiftly transfers opened beer cases towards the KHS case-packing station to be filled with bottles. designs for two different segments, but there was never any question of making changes to the iconic clear bottle. “The Sleeman bottle is such an icon in the beer market, that even when it’s imitated by competition, it is readily seen as just that—an imitation,” she states. Produced for Sleeman exclusively by the OwensIllinois glass container manufacturing plant in Brampton, Ont., the curvy-shaped, 341-ml bottles are now compatible with every provincial recycling stream across Canada, relates Darlene Fidler, national procurement manager for packaging materials, despite weighing a little more than industry-standard bottles due to the extra bit of glass used to give the container its wide-shouldered profile for accommodating trademark and logo embossing directly onto the glass surface. According to the brewer, each clear-glass Sleeman’s brand bottles is reused 13 to 18 times on average before eventually being crushed and melted down for reuse. “Our founder John Sleeman has fought a lot of battles over the years to keep this bottle and to earn it returnable status in every province, most recently in New Brunswick in 2006,” says associate director of operations Bret Mason, proclaiming the company’s deep-rooted commitment to sustainable manufacturing and packaging throughout all of its operations, including the recently-leased, 100,000-square-foot warehousing facility operating just down the street from the brewery. Full Commitment “Beer companies in general are good at waste diversion, but for us it’s a real company-wide commitment,” observes Fidler, pointing out that Sleeman operates its own wastewater treatment plant on-site. “Sustainability is really important to us, our supply chain partners and our packaging vendors,” she proudly states. “Any material that comes to us has to be 100-per- The network of Sidel conveyors carrying Sleeman’s bottles through their rinsing, filling and packaging stages are powered by heavy-duty SEW-Eurodrive electric motors. cent recyclable or reusable,” points out Fidler. “We have annual audits of our waste diversion and recycling practices conducted by an outside company, Efficient Waste Management. “Our current diversion rate is about 98 per cent,” Fidler reveals, “with about 30 per cent of the remainder accounted by organics and paper towels. “We launched a new program for organics and paper towel recycling in October of 2013, and we’re looking forward to seeing the results of this program in our next audit in the fall. “There is very little waste in our facility and that is something we are all very proud of,” Fidler enthuses, while complimenting the efforts of company’s key packaging suppliers—including Ball Packaging (cans), MeadWestvaco (folding cartons) and Atlantic Packaging Products (corrugated cases and trays)—for helping the brewer consistently achieve its environmental goals and targets. Toronto-based Atlantic Packaging Products Limited has long been the preferred supplier of pre-printed corrugated retail cases for packing Sleeman’s bottled products. 16 • WWW.CANADIANPACKAGING.COM CANADIAN PACKAGING • March 2014 Cover Story Fabbri_2013Feb_MeatPkgAd_PoultryDrumsticks_CP_Layout 1 2/3/14 2:19 PM Page 1 Colorful palletized loads of different brands of Sleeman beer products await their turn in the dock area to be loaded for transport to the nearby warehouse or direct delivery to customer. “We also do monthly updates and annual education sessions for all our employees, updating them on our programs and helping them understand where all the materials go in our closed-loop system, which we have now had in place for the last seven years,” says Fidler, lauding all of the company’s hourly and salaried staff for maintaining Sleeman’s ongoing environmental improvements, as well as keep growing the brewer’s market share. People Power “We are focused on experienced and well-trained employees to support our growth,” she states. “It’s in our company’s mission statement: Better beer, better people, getting better.” Adds Fidler: “A key reason Sleeman has been so successful is that we have a wide variety of products with broad product families. “That’s because we are actively N O T H I N G S AY S F R E S H like FABB R I PAC KAG ING Fabbri Automatic Stretch Wrappers produce highly attractive packages that make your products look fresh and “just packed”. Fabbri Stretch Wrappers use stretch film to package fresh meat products in preformed trays to provide an in-store wrapped appearance. They employ four-way stretch technology to produce tight, over-the-flange, wrinkle-free packages with securely sealed bottoms and a superb case presentation. And here’s something you might find even more attractive: Fabbri Stretch Wrappers can help increase your profitability. 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FOR MORE INFORMATION CIRCLE 113 Reiser Canada 1549 Yorkton Court #4, Burlington, ON L7P 5B7 • (905) 631-6611 Reiser 725 Dedham Street, Canton, MA 02021 • (781) 821-1290 www.reiser.com/fabbrimeat 2013 Leading the food industry in processing and packaging solutions. 18 March 2014 Cover Story competing in all four core segPlease see a video of Intelligrated’s ments of the marfully-automatic Alvey 910 model ket—premium, palletizer in operation at mainstream, craft Sleeman’s Guelph facility at and imports,” she www.canadianpackaging.com states. “It’s important for us as a Canadian beermaker to offer Canadians high-quality beer for all sorts of occasions.” Skupien concurs: “Even though we have gone from producing very small batches to much larger batches of beer, it’s still the same process and we still operate a copper cladded kettle. “It’s always about making one beer at a time and not rushing the process, and we take our time with everything from fermentation to aging,” states Skupien. “Our grain-to-bottle time is much longer that what our competitors typically do, and our growth in the marketplace is proof that our commitment to quality, authenticity and craftsmanship is widely appreciated by Canadians across the entire country.” For More Information: Intelligrated Industries Canada Limited 410 KHS GmbH 411 Krones Machinery Co. Ltd. 412 MeadWestvaco Canada LP 413 Ball Packaging Products Canada Inc. 414 Owens-Illinois, Inc. 415 Atlantic Packaging Products Limited 416 ITW Muller 417 Linetec Solutions 418 Nordson Canada, Limited 419 R.E. Morrison Equipment Inc. 420 VideoJet Canada Ltd. 421 Sidel Canada Inc. 422 R.A. Jones & Co. 423 Filtec424 Sealed Air Diversey Care 425 Technical Adhesives Limited 426 A fully-palletized load of corrugated trays loaded with packs of canned beer is secured and fully stabiized with a few layers of stretchwrap film applied by a refurbished, fullyautomatic Octopus series rotary-ring stretchwrapping system from ITW Muller. WHEN IT COMES TO AIRKNIFE DRYING, THERE’S A REASON 80% OF CANADIAN BOTTLERS GO WITH US. • • • • A ProBlue hot-melt applicator manufactured by Nordson Corporation dipenses glue formulations from Technical Adhesives to ensure tight sealing of the filled beer cases. Proven air knife cleaning and drying Canadian design engineering Unmatched service and installation 25 years experience You really should contact us today! 1.800.668.8736 March 2014 19 www.adamarkairknife.com FOR MORE INFORMATION CIRCLE 114 Mississauga, ON