It's a small flute world: the small flute market, once a high-growth business for corrugated, is advancing at a much slower pace

Paperboard Packaging, May, 2004 by Esther Durkalski

"The market is continually evolving and changing and we are constantly trying to find better cost solutions for our customers," Lingle says. "The reality is that it takes a lot of work, research and development. We've been fortunate enough that it's been a focus of our company. We've continued to focus and invest for that market."

Even different miniflute competitors are finding the market difficult these days. MeadWestvaco's Forte[TM], a solid fibre sheet with a strength greater than or equal to miniflutes, was introduced in 2001 but its growth rate has slowed recently.

MeadWestvaco has close to 90 customers buying on a regular basis but in terms of volume, it has been flat for the past year, says Tony Rozmes, MeadWestvaco segment manager. Forte often is not used in high-volume packaging but more in the high-end, smaller volume orders that don't always repeat every month.

"When we got into producing Forte, we were expecting the miniflute market to grow about 8 to 10 percent per year in the U.S.," Rozmes says. "But in the last several years, I don't think that rate of growth has really kept that pace."

He estimates the miniflute market growth to be more like 4 or 5 percent per year for the last two years.

While the small flute/high-graphics market may be maturing in North America, it is still growing. Sheet plants and converters are adapting and finding new ways to expand the market. But will that work? Only time will tell.

"Only thing for sure is that there will be changes," Nebeling says.

What specific markets do you serve with miniflute products?
(Respondents could check more than one answer)

Food                                 64%
High-end graphics                    64%
Automotive                           54%
Retail                               45%
Drugs, Pharmaceuticals               36%
Cosmetics                            27%
Hardware                             23%
Other                                 1%

Source: www.Packaging-Online.com

Why did you enter the miniflute market?
(Respondents could check more than one answer)

Saw an emerging market               68%

Recognized potential profits
for the company                      68%

Customer demands                     59%
Need to supply structural
gains over folding cartons           45%
Need to produce
high-end graphics                    27%
Competitive pressure                 14%

Source: www.Packaging-Online.com

What difficulties did you have to overcome to be successful
in the miniflute market?
(Respondents could check more than one answer)

Equipment operation                  41%
Education of employees               41%
Competition by other
box/carton plants                    32%
Management commitment                23%
Production employee
attitude                             23%
Sales force attitude                 23%
Competition by other
packaging forms                      18%
Budgets for equipment
changes or upgrades                  14%

Source: www.Packaging-Online.com