By Graeme Rodden, Mark Rushton, Kenneth Norris and Rhiannon James
BRUSSELS,
July 8, 2011
(RISI) -
The RISI Top 50 Power List 2011: 41 - 50
41. Robert McDonald, Procter & Gamble
Talking to shareholders as the newly appointed CEO of the world's largest consumer goods company, including such well-known brands as Charmin and Bounty, McDonald announced an ambitious plan: to gain one billion new customers in five years. Two years later, McDonald has not backed down. Rather he has continued to say P&G is more than capable of achieving that goal and possibly more.
As part of the company's overall expansion in the tissue market, P&G opened a large tissue mill, converting, and distribution center in Utah this year; the first new US plant in 40 years by P&G and the first pulp and paper installation in the state. Analysts point to new investments from all the major players in the tissue market, especially in the premium quality segment, but McDonald is looking for more than just incremental growth.
In Asia, McDonald has accelerated P&G's plans significantly, consolidating its Asia branches into one group. The strategy is designed to significantly increase revenue for the region, which holds half of the world's population but only accounted for 15% of P&G's total revenue of $79 billion in 2010. It's all part of McDonald's approach of "touching and improving lives," in part by introducing products such as tissue and paper towels where they don't exist right now.
And McDonald isn't interested in acquiring new brands to achieve this growth, believing his products are definitely up to the task. A voracious reader of the cultures his products inhabit, McDonald is pulling out all the stops to make his target, and it would surprise no one if he succeeded.
42. Jurgen Heindl, Progroup
When Heindl started Progroup 18 years ago the plan was to become the cost leader in the packaging industry by being flexible and taking advantage of the latest technology. Last year, with the major expansion of a new containerboard mill for Propapier, the papermaking division of the group, CEO Heindl oversaw the startup of the one of the most technologically advanced paper machines the industry has seen. Since then, the machine has set world speed records for production.
Described as "very experienced, very brave, and extremely astute," Heindl's bold move came at a time when the European market was its most turbulent in decades. But for Heindl, this was the "perfect environment for expansion." Experiencing exceptional growth through 2010, Progroup has more expansion plans in mind but the market will have to agree. "It's no secret we would like grow," said Heindl recently. If everything goes according to plan, observers agree Progroup will be a company to watch for some time.
43. D. Eadward Tree, Dead Tree Edition
The sometimes hard hitting, sometimes humorous but always topical and entertaining Dead Tree blogs continue to be essential reading for those of us operating in the industry. Mr Tree was quoted in the Vancouver Sun recently which said of him: "Dead Tree Edition . . . has been posting some of the most detailed and biting analyses" when referring to his commentary on the black liquor saga which continues to intrigue tax paying Americans.
Just some of the blog headlines seen on the Dead Tree Edition recently include: Anti-greenwash group to challenge e-billing claims in the U. S., Son of Black Liquor enters the limelight; Cost of new black liquor boondoggle reaches $1.1 billion; and Black liquor tax credits: the gift that keeps on giving to paper mills - and taking from taxpayers.
Mr Tree also comments on other industry areas, including pulp and paper environmental matters, management issues within major pulp and paper companies and issues relating to printing and postage.
44. Duncan Pollard, Nestlé
Duncan Pollard, sustainability consultant for food giant Nestlé, has appeared on our last two Power Lists, but under a completely different title, being formerly director of Conservation Practice and Policy for NGO, WWF. After switching roles in 2010, Pollard himself asks the question in an exclusive interview with PPI: "Am I poacher turned gamekeeper or the other way around?"
Whichever way around it is, Pollard is steeped in knowledge of the pulp and paper industry, and all its practices, and now wields power and influence within one of the most well known global consumer brands.
45. Social Media: Twitter and LinkedIn
Social media is basically taking the world by storm, and has been linked to all sorts of major events in the world, including revolutions (for instance the recent "Arab Spring"). The pulp and paper industry over the last year has also seen a boom in the use of social media, in particular Twitter and LinkedIn, in fact the latter, LinkedIn could be described as the Facebook of the business world, as members join groups, exchange ideas, and present new opportunities.
Just some of the groups available for pulp and paper people working in the industry include: Paper Industry Professionals, Paperboard Packaging Group, Pulp & Paper Industry and The World of Paper. RISI even has its own entity, the RISI Group, which has over 2,250 members.
Twitter is also seeing major pulp and paper industry activity, using the channel to communicate directly to customers. These two social media channels and others are completely transforming some of the ways business is being done.
46. Stephen Silver, FutureMark Paper
Under president and CEO Silver's lead, not only has FutureMark Paper set the bar for "green" paper higher, it seems that Silver has even painted the bar. Following the purchase of the mill by Watermill (a private equity fund) from Myllykoski in 2009, it was decided to make a "pure play for green (coated) paper".Customers have responded and the single mill entity has landed some important customers with its philosophy. Its order books are full and it is now expanding its product offering into label paper.
Silver is also trying to change the metrics of recycling in the US. He cannot see the value in setting up recycling programs to supply China with paper. He says the US industry is missing a "sea change in consumer demand". Starting small, Future- Mark has established a very successful local recycling program that provides the mill up to 600 tons/mo of recovered fiber from streetside sales.
47. Greenpeace (www.greeenpeace.org)
The household name NGO continues to work very hard at disrupting some forestry and pulp and paper activities, particularly those based in Indonesia, and most notably of the companies APP and APRIL. The Greenpeace organization has ramped up its activities in the last year, and is making a point of targeting customers of producers in an effort to highlight its concerns over deforestation issues.
In its latest attack, the NGO ran a campaign entitled: Barbie, Legos, other toys linked to destruction of Indonesia's rainforests in which it highlighted major toy makers, Mattel, Disney and Hasbro who it said were buying packaging from companies involved in deforestation.
Greenpeace campaigners have also been seen regularly at pulp and paper industry conferences and events around Europe, which they see as the "perfect platform to get their messages over to the industry" according to one of the NGO's spokespeople.
48. Mineral Oils
The packaging industry hit the BBC news in the UK earlier this year with a scare report on how some of the owners of Britain's best known food brands are changing their packaging due to health concerns over boxes made from recycled cardboard.
The BBC said that researchers had discovered that some recovered paper, for example newspaper, may contain chemicals that are contaminating food. Scientists in Switzerland evidently had discovered "mineral oils" in recycled cardboard of over 100 times the agreed limit.
The report says that discarded newspapers turned into packaging for food could pose risks, including serious inflammation of internal organs and cancer. The toxicity, the researchers say, comes from mineral oils found in the ink used in the newspapers which then, when recycled, could contaminate foods as the oil passes through inner bags Brand owners featured in the report variously spoke of using stronger inner bags, changing from recycled to virgin board, and using recycled raw material with no newspaper waste included.
49. Tong Laiming, China Paper Corporation
China Chentong Group is an asset management company established by the Stateowned Assets Supervision and Administration Commission (SASAC) of the State Council. China Chentong manages its pulp and paper assets via China Paper Corporation and Mr Tong Laiming is China Paper's general manager.
SASAC has carried out a restructuring program through M&A for several major government-owned pulp and paper companies in the past few years. The move was aimed at changing ownership structures of those companies, who are now subsidiaries of China Paper. These subsidiaries include: Zhongzhu Group - owns several mills across China, mainly bamboo pulp-based producers, Hunan Tiger Forestry & Paper - which owns Yueyang Paper, Hunan Juntai Pulp and several other mills in Hunan province; Foshan Huaxin Packaging - owns Forshan Huafeng Paper, Zhuhai Hongta Paper and several other mills in Guangdong province. Guanhao Hi-Technology - a specialty paper producer that owns a specialty paper mill and converting plants in Guangdong.
50. Duke and Duchess of Cambridge
April's royal wedding between Prince William and Kate Middleton in the UK gave newspapers a much needed 25% boost in overall circulation, although the mass media event has not stopped the decline in newspaper sales overall.
The Sun, Britain's leading newspaper by copies, had reported sales of 3.3 million the day after the event, the Daily Telegraph 950,000, the Times 700,000 and the Guardian 500,000 copies. The newsprint industry would also have had a further boost due to the amount of extra pages printed due to supplements. Britain is seeing an overall decline of around 2% a year in the sales of newspapers.
The RISI Top 50 Power List: Introduction
The RISI Top 50 Power List: 1 - 10
The RISI Top 50 Power List: 11 - 20
The RISI Top 50 Power List: 21 - 30
The RISI Top 50 Power List: 31 - 40
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