SOLUTIONS for the future
Tetra Pak is leading sustainability efforts by establishing a circular economy in Colombia across its packaging, processing, and service businesses.
What are the recent accomplishments under your administration?
We have experienced consistent growth each year, except in 2020 when the pandemic significantly impacted our sales, particularly in juices and nectar drinks meant for school lunchboxes. However, we experienced growth in milk as more people stayed home. In 2020, there was a decline in the number of packs and liters sold, but by 2021, we had managed to recover to 2019 sales levels. 2023 was a challenging year in terms of consumption in the country due to the economic situation led by high inflation rates, especially in the food and beverage categories. Despite this situation, we were able to turn around the results during the second semester of the year where sales stabilized and started growing slowly.
How does the company assist clients in achieving lower prices, particularly in light of the economic challenges that businesses are currently facing?
In recent years, including 2020, 2021, and 2022, cost challenges have prevailed, prompting widespread price increases across the market. Balancing the need to raise prices with maintaining market competitiveness is complex. Despite the rise in costs, we strive to add significant customer value throughout the entire process, reducing waste. We are a B2B company, but we also focus on having a B2C mindset by supporting the full process and also supporting our customers to reach consumers with the best value-added proposal possible. Increased cost of materials, such as paperboard and aluminum, among others, along with a semiconductor shortage two years ago, have posed additional challenges; however, we have been working closely with our customers and finding out ways to innovate with new products, trends and improving the total cost of ownership of our equipment and this way, improving the total product cost.
Can you provide further insight into Tetra Pak’s start-up initiative and its commitment to entrepreneurs?
Our Startups by Tetra Pak initiative in Colombia is an incubator where entrepreneurs apply for mentorship and support. In 2023, 124 companies registered to participate. There are several stakeholders participating in the initiative, such as Seedstars, an accelerator, with which we reviewed the applications and selected 10 participants to deliver a pitch, choosing four companies for mentoring and connections with co-packers. By accelerating their growth, we aim to contribute to job creation, foster creativity, and support the overall success of the community in the country.
How does your commitment to leading the sustainability transformation through low-carbon circular economy solutions apply in Colombia?
One of our strategic pillars is to lead the sustainability transformation by offering low-carbon circular economy solutions and enhancing sustainability across the value chain. This works exactly the same way in Colombia, where we aim to establish a circular economy in our three businesses: packaging material, processing solutions, and services. Our focus on sustainability extends to reducing waste, water, and energy consumption in both packaging and processing machines. Initiatives include partnerships with recyclers, customers, and stakeholders, and we have notable collaborations with Eko Red and CEMPRE. In San Andrés, an island with recycling challenges, we initiated Reciclave with Coca-Cola and Eko Red, using our equipment and technology to support recycling companies. Partnerships with Postobón further drive recycling initiatives, such as Mi Pupitre, providing desks made from recycled Tetra Pak packages to schools in underprivileged areas. Tetra Pak invests over COP11 billion on such impactful initiatives, including ReSíclamos Caribe, bringing recycling capabilities to the Colombian coast.
What innovative approaches is Tetra Pak employing to enhance consumer experiences and provide support for the supply chain?
Our business engages customers and consumers, aligning initiatives to promote recycling, sustainability, and overall business success. Our focus on packaging involves advanced technology to enhance equipment performance, delivering customer value and reducing their total cost of ownership. In the consumer space, we leverage AI and digitalization, utilizing unique codes on packaging for campaigns and traceability. These efforts, centered on data collection, enhance consumer experiences and support our customers throughout the entire chain.