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Coke in China Switches to PETG Labelling

A subsidiary firm of Fuwei Films has won the contract to supply environmentally-friendly PETG heat-shrinkable labels to China Bottlers Procurement Consortium, the authorized procurement service provider for the Coca-Cola bottling system in China.

The Fuwei subsidiary – Fuwei Films (Shandong) Co. – signed the letter of intent with CBPC on June 30 and will supply the labels for the second half of 2011.

Coca-Cola plans to replace PVC non-carbonated beverages labels with PETG films in China starting in the second half of this year, for environmental reasons.

According to the letter of intent, Shandong Fuwei, as the exclusive local supplier of Coca-Cola in China, will supply PETG heat shrinkable label films to designated label suppliers within the Coca-Cola bottling system. Once the letter of intent is fully implemented, it is estimated that the sales of heat shrinkable label films to be supplied to Coca-Cola may account for 8 to 10 percent of Fuwei’s total sales in the second half of 2011.

“We are pleased to sign this letter of intent with the authorized procurement service provider of Coca-Cola,” said Xiaoan He, chairman and CEO of Fuwei Films. “We look forward to further cooperation with Coca-Cola and other internationally renowned beverage companies. The company will continue to be committed to strengthening R&D, and to implementing the products differentiation strategy in order to maintain our competitive advantage in the market.”

PETG film is related to polyester and is widely used in the international label industry. Fuwei describes it as an improved version of  BOPET, another member of the polyester family. Fuwei (Shandong) Co. developed its propriety PETG heat shrinkable label films through independent research.

Coke was among this year’s DuPont Packaging Award winners for an initiative in Japan, where the company reduced the PET bottle weight of its I Lohas water brand by 40 percent.

Last month it was reported that Coca-Cola’s PET recycling plant in Spartanburg, S.C. is for sale after it only produced about one million of an expected 100 million pounds of recycled plastic.

This week, the U.S. branch of Coca-Cola announced that it was joining the Obama administration’s National Clean Fleets Partnership.

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