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Smarter packaging

RFID and security technology, especially authenticating methods, headlined a recent Smart Packaging conference outside Chicago.

A digital watermark provides a covert authentication method that can be confirmed by a simple 'lens key ' as shown for this DVD
A digital watermark provides a covert authentication method that can be confirmed by a simple \"lens key\" as shown for this DVD

Literature from September’s Smart Packaging conference, in Rosemont, IL, defines smart packaging as “going beyond conventional packaging applications to provide intelligent solutions...” The definition covers considerable territory, as did the conference, where more than 300 people listened to presentations from 30 industry experts, including Hewlett Packard and Procter & Gamble.

The event included more than a dozen exhibits. It was produced by the Institute of Packaging Professionals and Tarsus Group, while sponsors included Packaging World magazine.

Hewlett Packard’s packaging manager John Hayward’s energetic opening presentation detailed HP’s experiences with smart packaging, especially radio-frequency identification (see sidebar p.55).

Paul Rieger, associate director of supply chain innovation, noted P&G’s challenges in managing brand protection across 300 brands in 160 countries that total $51 billion in annual sales. When asked if RFID can help in packaged product authentication, Rieger felt it could if, for instance, retailers could provide kiosks with readers. Reiger also expressed the view that anything that adds costs to RFID deployment will be a deterrent. He opined that circuits printed using metallic inks directly on packaging materials could help drive costs down.

Countering counterfeiters

Anti-counterfeiting techniques were a major theme. The Global Congress on Counterfeiting held in Brussels in May 2004 stated that 10% of all pharmaceutical products are fake or counterfeit. It is estimated the global value of all products counterfeited is more than $550 billion annually.

Bill Duffy of the Imaging Supplies Coalition, which counts among its seven member companies Canon USA and Lexmark Intl., struck a warning about the impact and growth of counterfeiting that were of widespread interest. Duffy suggested that marketers develop a strategy of brand protection with multiple solutions. Companies that allocate notable amounts of resources to anti-theft measures budget only a minute amount—less than 1% of sales—to anti-counterfeiting brand protection, he noted.

“And these companies are grossly understaffed for anti-counterfeiting and so they will need to outsource that function,” he added. “You should recognize counterfeiters as your competition.”

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