Why is blockchain important to the packaging industry?

From volatile crypto currency to a solid system adding value for the supply chain. Blockchain technology can be the key to value chain transparency and a solution to the ever-growing problem with counterfeits.

What is it?

A Blockchain is a database of records, here called blocks. What makes the database special is that these records are interlinked, or chained, using a hidden code. This is useful in a supply chain involving transport and transactions that can be recorded as blocks. Each block contains a cryptographic link to the previous block plus information on when a transaction occurred, who was involved and much more.

This may sound slightly abstract, but it makes the Blockchain concept decentralised and transparent. A key element is that the process is spread out across multiple computers with the consequence that no one has ownership of the information on the “ledger”. A non-corruptible database!

Using a Blockchain you bypass the concept of a centralised organisation by giving everyone who wants to use a Blockchain a complete and unalterable copy of the register of all transactions.

Why is it important for packaging?

Blockchain technology relates to packaging as it can be used to:

  • Provide consumers information regarding a product’s authenticity and origin. The identity of a product can be verified as the packaging is read and recorded to the “ledger” when handled along the transport, all the way to the destination. As the records can’t be altered retroactively, it means that all information on the ledger is by default authenticated, but without the paperwork of today.
  • Track and trace products along the value chain. When the value chain (packaging converters, printers, raw material producers, fillers, brand owners, retailers, etc.) join up in a Blockchain and makes the process transparent they will all share the same picture of origin and handling of products. If a batch is contaminated it can then easily be traced. Traceability is a key aspect and an opportunity, in particular for the food and pharma industries.
  • Ensure brand protection and serve as anti-counterfeit technology. Consumers will be able to tell a fake product simply pointing their phone at the packaging and read the QR code. Blockchain will prove to be a useful tool for building brand trust as a neutral and immutable system.

The demand for transparency and traceability is increasing, driven by counterfeits troubling the pharma industry and recent food scandals that shook the industry. Using Blockchain technology the consumer with a smartphone can simply scan a QR code on the packaging to follow the product journey, from farm to plate.

Who are using it already today?

It might not be mainstream, yet, but the technology is already in use for mundane items such as milk and coffee. In the lead we find major food suppliers like Arla who are running a pilot project in Finland using Blockchain to provide transparency for milk products. Nestlé recently started up their pilot but in a larger, or even global scale involving milk and oil. Barilla is using the technology in Italy to certify fresh basil.

Also the retailers are also into this. Carrefour is leading in Europe using the technology on a number of categories like poultry, eggs, cheese, milk, oranges, etc. On the other side of the pond Walmart is demanding Blockchain traceability for selected vegetables.

Where is this going?

This is only the beginning. Driven by the main advantages’ security, decentralisation and transparency Blockchain as a tool will gain momentum and develop fast.

The technology might seem complicated to use, but the tools are available and new entrepreneurs are coming in with easy to use solutions. With a straightforward access we can expect to see a rapid adoption rate, with a variety of applications. The packaging industry needs to be ready to handle their part of the chain of blocks. Printing and packaging are keys for success.

The power of packaging

Packaging Design

CigI am thinking of the idea of using legislation to control consumer packaging decoration. The power of packaging design has to be restrained to make a product less attractive and hold the consumers back. I am of course referring to tobacco and the ongoing discussions about neutralising the design of the entire category. This says a lot about the power of packaging and of and how graphical design communicates. Australia was first out and this is at present also discussed in Europe.

Packaging PatentsPod

Tread carefully when making packaging design decisions. Nestlé is in court meeting a producer of coffee capsules made to work with Nespresso machines. The argument is about the design of the capsules and the functionality of the machines. Without going into details, it’s again about the inherent power of packaging to make or break. This time a little bit of diplomacy probably would have smoothed things a bit. Playing with packaging is playing with fire.

Packaging Changes

GladPeople apparently care and react to what they think is not quite right, also when it comes to packaging. Glad Wrap has been forced to rework their new packaging design after an uproar of public backlash from unhappy customers. Their mistake was to move the cutter from the base of the box to inside the lid. Shock horror. The consumers didn’t like the change and let Glad know, they got the message and changed things back to “normal”.

Packaging matters and design is over again proving to be a powerful tool.