Kraft Counter Sues P&G - Packaging Market Weekly Wrap

Kraft Foods and Procter and Gamble's (P&G) argument over the use of plastic coffee containers stepped up a notch this week, with Kraft counter-suing P&G.

P&G filed a lawsuit against Kraft in August seeking a patent infringement ruling over Kraft's use of plastic Maxwell house coffee containers.

Kraft now alleges P&G's plastic container infringes on Kraft's patent for its Maxwell House brand and wants P&G to stop selling Folger's in the container.

Last month a judge granted Kraft's motion that the case be put on hold pending a review of the patent.

EU WASTE RULES

The European Organisation for Packaging and the Environment (EUROPEN) says EU packaging recycling targets will not be revised at the end of this year as previously announced.

When the EU Directive on Packaging and Packaging Waste was revised in 2004 it was agreed that targets for a five year phase from 2009 until 2014 would be set by the end of 2007.

However, in a recent report on EU and national packaging and environment legislation, EUROPEN says recent data shows many of the original EU states have already surpassed the 2008 targets and new states are making rapid progress toward meeting their targets.

MERGERS AND ACQUISITIONS

Packaging firm Mayr-Melnhof has acquired a 53 percent stake in Jordanian folding carton producer Al-Ekbal Printing & Packaging Co.

The purchase strengthens Mayr-Melnhof's position in the Arabic region and will grow the company’s main sales area of cigarette and detergent packaging.

Financial details of the deal were not disclosed.

RESULTS

Packaging Corp of America has issued a profit warning after heavy rain affected the operation at one of its linerboard mills.

The containerboard and corrugated packaging products maker says a "major unplanned outage" at the Tennessee mill has boosted costs and reduced output.

The mill was inoperable for 2½ days and experienced continuing operating problems.

Packaging Corp says the outage will reduce fourth-quarter per share earnings by four cents.
Source: packaging-technology