Tissue360 - Spring/Summer 2018 - 36

need for producers to stay on category trends
and effectively communicate their value
proposition. Gone are the days when a brand
name product can easily dominate private
label competitors.
The most important role played by the
parent tissue roll merchant continues to be
balancing short-term supply with long-term
customer needs. This is especially true in
the away-from-home (AfH) and consumer
private label markets, where supply requirements frequently change as companies gain
and lose business through privatel labels
product bids, distribution consolidation,
and other external factors.
Understanding the market effect on our
customers and suppliers, while not critital to
the parent roll merchant's daily activity, helps
us project future client needs. The two biggest
factors driving our customer needs have been
private label growth and innovation.
PRIVATE LABEL GROWTH
Walking through the paper goods section
of Walmart, one sees the Great Value brand
prominently displayed on the shelves. At
Costco, a similiar observation is made with
its Kirkland signature products. Last year
we witnessed the German grocer Lidl, which
sells about 90 percent of its entire products in
private label, enter the US market.
Parent roll merchants are accustomed to
suppling the raw material required to support such ongoing store brand growth, either
on a short-, medium-, or long-term basis in
36

Tissue360º SPRING/SUMMER 2018

the event needs arise. For an integrated mill
having its own paper making capabilities,
the need to source material from a merchant
could come as a result of a paper machine
going down unexpectedly, a mill group
building market share in anticipation of a
new paper machine coming online, and/or
a manufacturer wanting to produce a more
efficient grade internally and source a less
desirable grade to manufacture outside in
the open market.
For an independent converter having no
paper making capabilities, these market parent rolls are lifeblood to their businesses.
Most importantly, quality usually does not
need to be sacrificed to meet price.
INNOVATION AND
PRODUCT DEVELOPMENT
Today there are a multitude of technologies
that have empowered a new generation of
producers, enabling them to compete with
the established brands: new papermaking technologies such as Valmet's NTT or
QRT products; conventional tissue producers capable of manufacturing a grade that
can penetrate higher quality tiers; various
advances in paper chemistry; improvements
in pulp quality and refining; process control innnovations; and new converting line
capabilities. Taken together, these innovations create increased efficiencies and more
finely tuned product qualities that generate higher through-put and enhanced bulk
and softness.

If viewed in isolation, these advances in
innovation may not appear to be very effective, but added together they are significant.
The bottom line is that parent roll merchants
are managing more product categories today
than ever before.
With the increase in product categories,
coupled with the multitude of different production capabilities both on the paper making and converting sides, navigating through
the landscape can be quite confusing and
challenging to the consumer when evaluating the price-to-value relationship. Because
price is visible and measurable and often the
only thing a buyer considers based on limited information, it's the merchant's goal to
bring other visible and measurable data into
the narrative.
The industry can sometimes get caught
up in traditional product definitions while
overlooking the more important factors to
customers, including product performance
and value. In the retail segment, the two
most important quality attributes are bulk
and softness.
To address producers eager for higher
returns, merchants work with mill technical
teams to identify opportunities that enable
them to compete in higher quality tiers.
To accomplish this, Central National
Gottesman (CNG) has set up converting trials in conjunction with industry partners to
sample various competing parent base sheet
rolls. The trials represent different technologies available in the market and identify areas
of overlap to penetrate higher product categories. The data also allow CNG to generate
maximized pricing based on the attributes
most in demand.
It is with the finished product attributes
that the buyer who originally had limited
information now has the opportunity to reference other data beyond price alone. A better
understanding of true value leads to better
and more informed purchasing decisions.
Whether you are a new entrant or an established player, merchants thrive on offering
creative solutions to ensure your success,
while streamlining the supply chain to create a more efficient marketplace.
Scott Griffin leads the parent tissue business for
Central National Gottesman, a sales and marketing organization specializing in the global
distribution of tissue, pulp, paper, packaging,
wood products, and metals. He can be reached
at sgriffin@cng-inc.com
www.tappi.org


http://www.tappi.org

Table of Contents for the Digital Edition of Tissue360 - Spring/Summer 2018

Setpoint
Tissue Industry News
Welcome to Scappoose
Meeting the Challenge of e-Commerce
Tissue 2018 Comes to Appleton
Ensuring Rolls Run Right
Streamlining the Parent Roll Supply Chain
Gomà-Camps Creates an Edge, Again and Again
iT’s Tissue 2018 Set to Roll
Tissue360 - Spring/Summer 2018 - Intro
Tissue360 - Spring/Summer 2018 - cover1
Tissue360 - Spring/Summer 2018 - cover2
Tissue360 - Spring/Summer 2018 - 3
Tissue360 - Spring/Summer 2018 - 4
Tissue360 - Spring/Summer 2018 - 5
Tissue360 - Spring/Summer 2018 - Setpoint
Tissue360 - Spring/Summer 2018 - 7
Tissue360 - Spring/Summer 2018 - 8
Tissue360 - Spring/Summer 2018 - Tissue Industry News
Tissue360 - Spring/Summer 2018 - 10
Tissue360 - Spring/Summer 2018 - 11
Tissue360 - Spring/Summer 2018 - 12
Tissue360 - Spring/Summer 2018 - 13
Tissue360 - Spring/Summer 2018 - 14
Tissue360 - Spring/Summer 2018 - Welcome to Scappoose
Tissue360 - Spring/Summer 2018 - 16
Tissue360 - Spring/Summer 2018 - 17
Tissue360 - Spring/Summer 2018 - 18
Tissue360 - Spring/Summer 2018 - 19
Tissue360 - Spring/Summer 2018 - 20
Tissue360 - Spring/Summer 2018 - 21
Tissue360 - Spring/Summer 2018 - 22
Tissue360 - Spring/Summer 2018 - Meeting the Challenge of e-Commerce
Tissue360 - Spring/Summer 2018 - 24
Tissue360 - Spring/Summer 2018 - 25
Tissue360 - Spring/Summer 2018 - 26
Tissue360 - Spring/Summer 2018 - 27
Tissue360 - Spring/Summer 2018 - Tissue 2018 Comes to Appleton
Tissue360 - Spring/Summer 2018 - 29
Tissue360 - Spring/Summer 2018 - 30
Tissue360 - Spring/Summer 2018 - Ensuring Rolls Run Right
Tissue360 - Spring/Summer 2018 - 32
Tissue360 - Spring/Summer 2018 - 33
Tissue360 - Spring/Summer 2018 - 34
Tissue360 - Spring/Summer 2018 - Streamlining the Parent Roll Supply Chain
Tissue360 - Spring/Summer 2018 - 36
Tissue360 - Spring/Summer 2018 - 37
Tissue360 - Spring/Summer 2018 - 38
Tissue360 - Spring/Summer 2018 - Gomà-Camps Creates an Edge, Again and Again
Tissue360 - Spring/Summer 2018 - 40
Tissue360 - Spring/Summer 2018 - 41
Tissue360 - Spring/Summer 2018 - 42
Tissue360 - Spring/Summer 2018 - iT’s Tissue 2018 Set to Roll
Tissue360 - Spring/Summer 2018 - 44
Tissue360 - Spring/Summer 2018 - 45
Tissue360 - Spring/Summer 2018 - 46
Tissue360 - Spring/Summer 2018 - 47
Tissue360 - Spring/Summer 2018 - 48
Tissue360 - Spring/Summer 2018 - 49
Tissue360 - Spring/Summer 2018 - 50
Tissue360 - Spring/Summer 2018 - cover3
Tissue360 - Spring/Summer 2018 - cover4
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