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BRANDS ARE BUILT IN THE CONSCIOUSNESS OF THE RECEIVER, NOT BY THE COMPANY potx

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IN THE HANDS OF
THE CONSUMER
Contents N 3 2009


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Why is everyone talking cash flow? SCA’s business
school teases out the what’s and the why’s.
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A strong brand is priceless. Shape asks some of the
marketing industry’s sharpest minds for the recipe
for branding success.
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Bag in a box – the little package with the big suc-
cess. Plus the latest in lingerie fashion as well as
Ikea’s trend expert on furniture trends for the fall.
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What makes toilet paper different, and why can’t
you use it to dry your hands?
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Nature is Jim Carles’ life, at work and at home. For
the UN, he keeps watch over the world’s forests.
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With a climate that ranges from desert-dry to
floodwater wet, Australia is a land of extremes.

Australians keep track of every little drop of water.
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Backyards made beautiful, plus consumers talk
about Libresse Hipsters.
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Which SCA business area is holding up best?
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Company launched a paper dress as a
promotion to customers who bought
their new line of napkins and toilet pa-
per, ecological awareness didn’t exist.
The dress was a tremendous success,
and in four months Scott had 500,000
reorders. Soon the choices of paper clo-
thes were astonishing. They includ ed
paper dresses, hats, bags, slippers and
bikinis, and American women loved
them. Women could even dress in the
same style as their dinner tablecloths
and napkins. Because of their fragi-
lity, the dresses could only be worn
once or twice, so they never went
out of style. They were sold fl at and
didn’t need to be tried on. Custo-
mers made their choices based on
the design and colors.
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perfect for advertising. Time
maga zine made 6 million dres-
ses adorned with its logo. Campbell's
Soup launched an A ndy Warhol-inspired

dress to promote its line of soups. Robert
Kennedy’s 1968 presidential campaign
used a star-spangled dress featuring
the candidate’s face. Bob Dylan’s visage
loomed large on one frock. The pop ar-
tist James Rosenquist teamed up with
fashion designer Horst to make a paper
suit, a feat he reprised years later with
Hugo Boss.
/4B3@A=;3G3/@A in the limelight,
paper dresses disappeared from the mar-
ket, and today paper clothes are found
only among hot fashion designers who
use paper to create collections. Paper
has sculptural qualities and is cheaper
to experiment with than textiles. The
French fashion house Chanel’s spring
2009 haute couture collection inclu-
ded headwear made of paper fl owers.
The Swedish fashion designer San-
dra Backlund uses the Japanese art
of origami to make her spectacular
creations. The Antwerp designers
A.F. Vandevorst and Dirk Van Sa-
ene among many other designers
fi nd new ideas by working with
paper.
The exhibition Paper Fashion
shows a unique collection of the
art of cellulose-based apparel.

Paper Fashion will be shown
at the Design Museum in London
from November 4 to February 28, 2010.
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SHAPE SC A
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5
Pu rty
Getting a grasp on
CASH FLOW
TEXT: GÖRAN LIND
Last December, SCA’s president
and CEO Jan Johansson explained
that one of the company’s most
important tasks was “to turn the
cash fl ow situation around as a re-
sult of the economic downturn and
fi nancial uncertainty.” During the
fi rst half of the year SCA's cash fl ow
strengthened by an improvement
of the operating cash fl ow through,
among other things, reduced work-
ing capital. Many other companies
have set similar priorities over the
last year to secure their fi nancial
positions. But just what is meant
by cash fl ow and what information
does it provide?
Cash fl ow can be defi ned as the
difference between a company’s
incoming and outgoing payments
during a given period, showing the
change in its liquidity. Cash fl ow

is usually broken down into what
is generated from operations, in-
vestments and fi nancing activity.
Cash fl ow is positively affected by,
among other things, running a sur-
plus in operating activities or selling
fi xed assets. Similarly, cash fl ow is
adversely affected by losses from
operations and by new investments.
The difference compared with
profi tability based on the income
statement (profi t before tax and
Everyone seems to be talking about cash fl ow. The recent econo-
mic downturn has led many companies, including SCA, to focus
on it. But what is cash fl ow and why is it suddenly so important?
DON'T ERASE!
REMARK NEDAN: BILDER FINNS . LÄGG PÅ SHAPE UP SIDAN
other items) is that cash fl ow is not
affected by depreciation, allocation
of costs or other accounting adjust-
ments. In a sense, cash fl ow can be
said to be more objective than the
income statement because it does not
include items based on estimates. On
the other hand, it provides no indica-
tion of future investment needs. Cash
fl ow simply indicates whether more
money is fl owing into than out of the
company. If so, this may be because
operations are going well, but also be-

cause investments are put on hold.
Cash fl ow is often used to assess
the value of an investment, such as a
new factory. Then the present value*
of future cash fl ow is calculated by
discounting this at an interest rate
determined by the return required by
the investor. If the present value, in-
cluding any residual value, is greater
than the cost of the investment, then
it is profi table.
*Present value of a cash fl ow of 100 dol-
lars over fi ve years when the rate of return
required is 7.2 percent is: 100/(1.072
5
) =
70.63 dollars.
Trying to carry a couple of grocery bags in each hand plus a
box under one arm is enough to make most people despair. But
adding a plastic handle to that cumbersome box can make the
job possible.
Jan Nilsson is the man who came up with the idea of portable
handles for cardboard boxes, one of those clever little inventions
that make everyday life easier.
The handle has two sharp plastic points attached to a strap
with hinges. The points pierce the box and then splay outward.
Pre-attached handles can make stacking boxes diffi cult, but a
handle that is provided separately solves this problem. The handle
can also be made available at checkout counters in stores.
Danish girls are starting to enter puberty at increasingly

younger ages. Fifteen years ago, girls were 11 years old on
average when they developed breasts. Now they’re barely
10. This is shown in a Danish study carried out by Rigshos-
pitalet, the Copenhagen University hospital. A growing
number of girls are being treated for precocious puberty,
a condition in which they develop breasts before the age
of 8. At Rigshospitalet the number of such children in-
creased 10-fold between 1996 and 2006.
Lise Askglaede, the principal author of the study,
says one explanation may be chemi-
cals that interfere with hormones,
such as those found in makeup.
She suspects that preserva tives,
fl ame retardants and softening
agents may also be in-
volved. Chemicals are
everywhere – in cos-
metics, creams, ba-
by bottles, textiles and
electronic goods.
PLASTIC PIECE THAT
GIVES YOU A HANDLE
SCA FINANCE SCHOOL
starting increasingly earlier
EN_04-05_09APB3_shape_up_473.indd 5 2009-09-10 14:37:08
The value of their brands has become many
successful companies’ most important asset.
But building a strong brand is an art.
]QO1]ZOVOa]\S Toyo ta ,
IBM, Gillette, Intel, BMW,

H&M and Moët & Chan-
don have them as well.
In a global economy, su-
per strong brands have become the surest
way to spur sales and share prices. The
value of the world’s brands today is esti-
mated at USD 150 billion.
Most companies with international
operations nowadays want to be includ-
ed among the heavyweights in that elite
category of global brands.
“The driving force for companies to
protect and strengthen their brands is basi-
cally economic rationality,” says Dorothy
Mackenzie, chairman of the brand agency
Dragon Rouge in London. “The brand
increases and facilitates sales and creates
loyal customers. In a market with growing
competition, where the price of produc-
tion is steadily decreasing and there are in-
creasingly fewer unique technological dif-
ferences between products, strong brands
have become a key to success.”
As a marketing veteran, she has ob-
served a major change in the fi eld.
“When I started in the advertising in-
dustry 25 years ago, brands were very
much about pure marketing and one-way
communication,” she says. “The com-
pany told consumers what it thought were

the most important qualities of its product
– a laundry detergent that smelled good
or coffee with a slightly mellower fl avor.
Today, the power has shifted to consum-
ers, and companies have been forced into
dialogue and greater openness.”
2C@7<5;=AB=4B63 20th century,
brands were essentially about a good-
looking logo and fl ashy ads that praised
the unique qualities of the product or
service. Now the competition has inten-
sifi ed, and there are more ingredients in
the recipe for success.
Advertising, public relations and de-
sign are important for most brands, but
so are corporate social and environmen-
tal responsibility, quality and customer
service.
There are differing views about what
the proportions should be and what the
mixture should look like – especially
when a growing number of different
kinds of consultants and advisers such
as advertising agencies, PR people,
management consultants and corporate
social responsibility experts want to be
included and compete for corporate in-
vestments in branding.
But the experts are all agreed on one
point – the time is past when you could

sell anything with killer advertising.
Behind every strong brand today are
well-functioning operations. As Ama-
zon.com’s founder Jeff Bezos notes, “A
brand for a company is like a reputation
for a person. You earn reputation by try-
ing to do hard things well.”
Dorothy Mackenzie says the essence
of all strong brands is a good product or
service. “The organization also needs to
have an understanding of what’s unique
about what it offers and its own vision of
how it wants to be seen,” she says.
At the same time, she says the qualities
that make a brand unique have changed.
“One example is Dove,” she says, re-
ferring to the soap and shower gel made
by the multinational Unilever. “For a
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long time, the brand stood for soap
with added moisturizers. But today the
company stands for an alternative and
more realistic ideal of human beauty.”
A strong connection between brand
and operations is also important.
“Brands are built in the consciousness
of the receiver, not by the company or
organization,” says Henrik Evrell of the
international brand agency Rewir.
“It’s crucial that the strategy that’s
chosen to develop the brand works well
with the strategy set for the business.”
23>3<27<5 =< the customer and
type of service or product, there are a
number of widely divergent paths and
strategies. Broad-based consumer prod-
ucts companies have shifted increasingly

from refl ecting the lifestyle and attitude
of their target groups to shaping opin-
ions themselves.
“For a typical B2B company that pro-
vides advanced technological solutions,
brand building means something com-
pletely different,” Mackenzie says.
“There, the best communication
channel may be the company’s highly
specialized engineers. The brand is
about the impressions and values that
this group communicates to the com-
pany’s customers.”
A typical pitfall, according to Jacob
Fant at Rewir, is copying strategies that
work for others without thinking them
through.
“Instead, it’s a matter of fi nding what
distinguishes them and makes them in-
teresting and thus makes people want to
choose them,” he says. “The challenge
in all branding work is to whittle out
what is the unique DNA of the organi-
zation, those particular qualities that
differentiate the company from other
players in the market arena.”
Among the trends that have had the
strongest impact on those who craft
brands around the world is the growing
power of consumers – both in individual

purchasing decisions and through their
basic power over increasingly valuable
assets in the form of brands.
“A brand doesn’t have a personality,”
says American marketing guru Al Ries.
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“It’s the brand user that has a personality.
In other words, brands live and die in the
target group’s perceptions of them. Some
brands attract certain target groups.” As
an example he cites Starbucks, the Ameri-
can coffee chain. “Starbucks attracts the
young and well-to-do,” he says. “It’s these
individuals who give the Starbucks brand
its personality.”
Digital and social media have further

tipped the balance of power, increasing
consumers’ power over the brand.
“One consequence of this is that it’s
become increasingly diffi cult to main-
tain control over how, when and where
the target group chooses to think about
or discuss your brand,” Fant says. “The
challenge here is to simply give up control
of the brand in this respect and rely on
the power created in all the social envi-
ronments available online.”
The opportunity to reach millions via
the Internet at almost no cost has created
many new missionaries promoting dig-
ital brand building, converts who never
tire of telling uplifting stories, like the
one about two YouTube users and their
stunt creating a homemade geyser by
putting Mentos candy in Diet Coke.
B63A=2/1/A1/23 attracted a mil-
lion viewers on YouTube and became a
marketing triumph for both companies.
Part of the story is that Coca-Cola –
the strongest brand in the world – was
initially mostly worried about the unex-
pected and uncontrolled digital success.
Most consumer goods companies are
now fl ocking to YouTube, MySpace,
Face book and most recently Twitter.
In some cases, this eagerness has had

unexpected and unintended conse-
quences. When the auto manufacturer
General Motors invited the public sever-
al years ago to make their own commer-
cials on YouTube, the result was the re-
sult was sharp criticism of the company’s
gas-guzzling behemoths.
Increasingly, a more common fate –
even for expensive digital campaigns – is
a quiet life in obscurity.
“The general public wants entertain-
ment, and that requires more and more
to stand out above all the digital noise,”
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Mackenzie says. “So I think many com-
panies today are about to reassess some
of their digital strategies.”
She believes instead in new forms of
collaboration and sponsorship, working
together with established media and new
digital players.
But she sees the strongest trend in
branding outside the traditional market-
ing arena – companies’ investments in
sustainability for the environment and in
the social arena.
“If brands have a personality, then
more and more people are requiring that
person to be both pleasant and responsi-
ble,” she says, stressing the importance

of long-term work, openness and back-
ing those fi ne words with action.
She is supported in this by Jacob Fant,
who warns brand builders against being
overly sensitive to trends.
“Right now, for instance, there’s an
abundance of messages about the cli-
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mate out there where the connection to
reality is seen as more or less contrived,”
Fant says. “In that case, there is a risk of
undermining the whole issue of environ-
mental impact by reducing the general
credibility and importance of the argu-
ment, which is obviously unfortunate.”
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economic times for many companies
present a golden opportunity to polish
their brand.
“Brand building is more interest-
ing in an economic downturn because
media budgets are being tightened,” he
says. “Marketers are forced to aban-
don their tried and true strategies and
look for more effective ways to speak
to the market. Companies also tend to
pare down their operations when times
are tough, which provides opportuni-

ties for more distinct and, in the long
term, stronger brands.”
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B635:=0/:consultancy Interbrand’s
annual list of the 100 best and most
valuable brands in the world provides a
good overview of changing fortunes in
the struggle between competing global
superbrands.
Since 1996, fi ve of the top 10 brands
have fallen.
The big losers can be found, not sur-
prisingly, in two industries where the
winds of change have blown strongest –
technology and fashion.
B63B@/<A7B7=<4@=; fi lm to digital
memory ousted the company whose name

was synonymous with memorable times –
think “Kodak moment” – from the list of
the 100 best brands in the world.
Even the once durable jeans maker
Levi Strauss has been hit by the rapid
swings in fashion, disappearing off the
brand radar.
Among the survivors that have seen
=

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Tough times at
better days are Sony, whose game con-
soles have encountered heavy com-
petition from both Microsoft’s Xbox
and Nintendo’s Wii. In recent years,
though, the company has recovered
thanks to its successful ventures in TVs
(Bravia), laptops (Vaio) and digital
cameras (Cyber-shot).
The fast food giant McDonald’s
went through a diffi cult patch in the
1990s when the brand was linked to
obesity, trans fats and generally un-
healthy lifestyles. But with investments
in healthier food, french fries made
without trans fats and communica-
tion that focuses on health, this heavy-
weight has polished its golden brand.
Times have been harder for Marlboro,

whose products are anything but healthy.
So far, the tobacco giant has been saved
by new consumers in developing markets
that have – as yet – fewer restrictions on
smoking and tobacco advertising.
But in their analysis, the brand ex-
perts at Interbrand offer a gloomy fore-
cast for both the product and the future
of the brand.
“Sooner or later, the brand will most
likely undergo a decline because a more
connected world means that even the
growth markets can change their view
of the dangers of smoking tobacco fast-
er than expected,” they say.
Among the newcomers since the
1990s is Finland’s Nokia, which surfed
in on the IT wave and has maintained its
hold at the top. Together with the Japa-
nese giant Toyota, the world’s largest au-
tomaker, these outsiders have broken the
otherwise solid US dominance.
B634/AB3AB1:7;03@in all catego-
ries is the search engine Google, which
made its debut on the list in 2005. Its
competitor Yahoo, on the other hand,
has steadily lost ground and is now
ranked 56th.
One longtime player that made a spec-
tacular comeback is IBM. During the

1990s, the computer manufacturer “Big
Blue” was almost counted out, but it has
since bounced back as a service provider.
Even the old maxim “Nobody ever
got fi red for buying IBM” took on new
luster when the company grabbed sec-
ond place from its archrival, the soft-
ware provider Microsoft.
There’s a battling brewing among top-ranked global brands.
Today’s winners can be down for the count tomorrow.
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=

µB63 ;=AB important reason a com-
pany is valued at fi ve to 10 times the book
value of its equity is the economic advan-
tages a strong brand provides,” says Jan
Treffner, brand expert at the accounting
and consultancy fi rm Pricewaterhouse-
Coopers and co-author of the book Var-
umärket som värdeskapare (Brand as a
Creator of Value).
Half of Coca-Cola’s market value today
is tied to the brand. The value of the Swed-
ish apparel giant H&M’s brand is set at
USD 11 billion and Ikea’s at USD 7 billion.
Behind these fi gures – taken from the
branding consultant Interbrand’s an-
nual valuations – is some fairly uncom-
plicated math.
“The diffi cult thing is to calculate how
much the brand contributes to economic
performance,” Treffner says. “The obvi-
ous advantage of a brand is that it helps
the company to sell at a higher price or
contributes to greater sales volume – that
is, the brand generates either a price pre-
mium or a volume premium.”
Examples of price premiums are car
makes in the attractive premium segment
Hard numbers for soft values
and luxury products like perfume and
cosmetics. Companies can charge prices

with margins far above the actual cost
for a few extra horsepower and alumi-
num trim or a designer bottle.
“If a bottle of acetone costs about
USD 1.50 in a retail store, the same con-
tent – plus a little perfume – can cost 25
times as much at the perfume counter,”
Treffner says.
/;=<5 B63 1=;>/<73A whose
brands make them volume winners are big
sellers like McDonald’s and Coca-Cola.
Today, there are a number of different
models for valuing brands in dollars and
cents. Interbrand’s model is based on the
earnings forecasts of its analysts minus
the return on tangible assets.
Other valuations look at the licenses
and royalties paid for the benefi t of using
a given brand.
“But the issue here is to compare ap-
ples with apples and understand both
the industry and the segment in order to
make valuations that are as accurate as
possible,” Treffner says.
Soon it will be easier to value brands.
The German standardization organiza-
tion DIN has taken the initiative in devel-
oping a common ISO standard for valuing
brands. Some 15 countries have worked
for two years to produce a draft standard.

To contribute to the process, DIN’s
Swedish counterpart, SIS, appointed a
committee with leading representatives
and experts in brand valuation, with Jan
Treffner as chairman.
“It’s benefi cial to have a common
standard that can be compared, especially
when awareness about the importance of
brands and how they are valued is still low
for a lot of company executives,” he says.
3D3< B6=C56 the importance of
strong brands has been drummed into
people’s minds over the decades, Treff-
ner thinks the area is still subject to a
great deal of misunderstanding.
“The most common misunderstand-
ing is confusing a company’s distinctive
features with its brand,” he says. “These
features, like names, logos and design,
can be protected. But not a brand, which
includes so much more.”
He advises corporate executives who
want to increase the value of their com-
pany’s brand to get a good sense of how it
is perceived by its target group and how it
differs from the competition.
“Only then can you know which knobs
you need to adjust to develop the brand
you want to have,” Treffner says.



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For a free sample call 1
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One style does not fi t all.
THE evolution OF
bladder protection
advanced odor
protection

full range of
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EVObW[^]`bO\QSR]P`O\RaVOdS
T]`A1/-
“We work in markets with increasingly
tougher competition, both from global
and strong local competitors with their
own brands. Moreover, a lot of retail-
ers have their own brands. It’s critical
that we continue full-out to build and
maintain strong brands. In the end, al-
most all brand work is about increasing
competitiveness and profi tability in a
company.”
EVOb¸abVSab`ObSUg-
“Today we have a global brand platform
that includes a number of our products,
and we’re working toward a portfolio

with fewer but stronger brands. At the
same time, it’s important to realize that
different categories and markets often
require strategies adapted to them.”
EVObO`SA1/¸aUZ]POZP`O\Rab]ROg-
“TENA and Tork. Then we have a
number of strong regional brands like
Libero, Libresse, Saba, Nosotras, Nana
and Tempo, which are now supported
by our global brand platforms. The aim
is to give regional brands the opportu-
nity to grow and become global.”
EVOb¸abVSb`S\Rb]ROgW\bVSP`O\R
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fewer, more
distinct brands
4SeS`O\Rab`]\US`Q]\ac[S`
P`O\Ra³bVOb¸aA1/¸aab`ObSUgW\
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6gUWS\S1ObSU]`g
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“An important trend is the digital de-
velopment and social media that cre-
ate new opportunities. Then there’s a
strong focus today on sustainability
both in the environmental fi eld and in
social responsibility. Consumers are de-

manding that the companies they shop
at behave responsibly.”
1]\ac[S`aO`SaOWRb]eO\bb]VOdS
P`O\RabVObaVO^S]^W\W]\/`Sg]c]\S-
“In incontinence, we’ve carried out
work long-term to increase openness
and information in an area that has tra-
ditionally been marked by taboo and
shame. I think we’ve succeeded really
well with that, which is also refl ected in
good image for TENA.”
;O\g^S]^ZSO`SaOgW\UbVObQ][^O
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“Anyone who wants to be seen cannot
be cowardly or too cautious. At the same
time, I think that all successful brand-
ing work is based on an understanding
of what we essentially offer. That’s the
difference between selling diapers and
toilet paper and selling trendy clothes.
We have to have both an understanding
of and respect for our target groups.”
6]eWabVS¿\O\QWOZQ`WaWaOTTSQbW\U
A1/¸aP`O\Ra-
“Our products are relatively unaffected
by market fl uctuations since we pro-
duce everyday products. But the con-
sumers might get a little bit more price

conscious.Those who dare to invest in
bad times have really great opportuni-
ties to build a strong and, in the future,
very successful position by investing in
their brands. Which is something we’re
also doing.”
EVOb¸abVS[]abW[^]`bO\bbVW\Ub]
bVW\YOP]cbW\bVSe]`YeWbVP`O\RW\U-
“To have a focus on the whole and under-
stand the interplay between many differ-
ent ingredients. Many people still think
of the logo and traditional TV advertising
when they talk about brands. That’s im-
portant. But brands are essentially about
how the entire organization works and
interacts with our brand objectives. How
our plants work, how we handle the envi-
ronmental and social issues, how our sales
staff treat our key customers, innovative-
ness in the company and of course the
quality of our products.”
ENDELIG! LIBRESSE TAMPONGER
Nå er Libresse tamponger her – med heldekkende silkemyk overfl ate for enklere innføring.
De fi nnes i størrelsene Mini, Normal og Super, og gir deg sikker beskyttelse. At tampongene
ligger i esker med stilig design er bare en bonus, ikke sant?
Feel secure. Wear Libresse.
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1CAB=;3@A are in favor of
sustainable transporta-
tion, environmentally
sound production and
natural materials. But
in the furniture industry,
there’s not much happen-
ing in these areas, accord-
ing to Mia Lundström, who
works with Ikea’s product-
assortment strategy and forecasts furni-
ture trends globally.
“Last year at the Milan furniture
fair, the most important furniture fair
in the world, I was disappointed to see
almost no concern for the environment
in the thousands of items that were on
display,” she says.
“We thought we would see more in-
teresting hints and more new materials.
But when we spoke with furniture mak-
ers, it seemed like the entire furniture
industry was waiting for Ikea to pave
the way. And in our self-image we’re ba-
sically Smålanders, from the middle of
Sweden. It made me dizzy to think the
global furniture industry is waiting for
us to take the lead.”
Consumers have been setting high
demands in food and fashion for years.

But when it comes to furniture and ap-
pliances, they are more unsure and want
guidance. The thirst
for knowledge is enor-
mous. Questions like
“How should we save wa-
ter and energy?” and “How can we
reduce the amount of garbage?” are
often asked. The expres-
sion “minimizing waste”
is governing many
trends, in each phase of
the chain. Customers, who are
becoming more and more aware, will
shape the trends of the future, Lund-
ström believes.
“At Ikea we’re already doing a lot,
but we’re not very good at telling people
about it,” she says. “We’re working, for
instance, with replantable forests. We too
have to become more aware and develop
everything from new energy sources to
furniture made from recycled materials.
We’re now thinking about how custom-
ers could recycle old sofas.”
Ikea has been criticized for locating its
stores outside city centers and having cus-
tomers take their purchases home in their
own cars. Home delivery is more environ-
mentally friendly because deliveries can

be coordinated.
“Our customers account
for our largest emissions,”
Lundström says. “We’re
working hard to fi nd solutions and often
build new stores alongside malls where
customers can take public transporta-
tion”.
The next step will be to make pack-
ages lighter, not just through the choice
of materials but with new technology,
which means that smaller quantities of
material will be needed in many prod-
ucts. Some furniture can make do with
being lightweight, but other items have
to be made of solid wood or other strong
materials to be suffi ciently stable.
A=:72 E==2 is good for the envi-
ronment and is now, after many years,
becoming increasingly important in the
furniture industry.
“Solid light woods are back, not just
because of concern for the environ-
ment but because many young designers
around the world see wood as trendy
preferably untreated.”
Among the innovations this year are
new wood stains and methods of joining
wood. Another trend is to combine differ-
ent types of wood, a common practice in

Denmark in the 1950s. Light woods like
ash, birch and beech as well as light oak
are in. Dark woods are on the way out.
Plastic, somewhat unexpectedly, is
trendy again.
“It’s an exciting material, but it
can be anything from horrible to re-
ally good for the environment. Most
plastics are made of oil, but people are
working more and more with recycled
plastic, like PET bottles, which take on
a second life as furniture.”
Asked to sum up this year’s trend,
Lundström says it’s a reinforcement of
last year’s “decide for yourself.” “At Ikea,
we’ve listened to a lot of trend consult-
ants before, without realizing how great
an impact we have ourselves,” she says.
Now we have to seriously ask ourselves
whether Ikea is just going to follow trends
or whether Ikea will create its own trends.
My answer is both yes and no.”
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7<2/GA=4=:2women wore no pan-
ties under their skirts. But by the start of
the 19th century, a type of underpants,
initially with an open crotch,
was introduced for well-to-
do women. Nonetheless,
the importance of under-
wear as a fashion item
didn’t catch on until the
1960s, after new materials
like nylon had emerged.
In the sunny ‘70s, un-
derwear fashion really took off
when underwear became sexy rather
than comfortable and long-wearing.
The pop star Madonna was one of the
people who helped turn underwear into
apparel that could be worn like regular
clothing.
“All these new attitudes to undergar-
ments led to the breakthrough of thong
underwear in the 1990s,” says Solgun
Drevik, product developer at SCA. “From
having been seen as a kind of erotic acces-
sory, the thong was transformed into a
garment that was perfectly normal for all

women to wear every day.”
B63 B6=<5 made
its breakthrough as
swimming attire fash-
ion on the beaches of
South America. It was
especially popular in
Brazil, the land of buttocks,
where bikini bottoms are called
“dental fl oss.” (In Europe, there is a pre-
ference for revealing a woman’s chest, and
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bikini tops shrink to what are known as
“postage stamps.”)
At SCA a number of product developers
monitor new trends and analyze how they
might affect the shape of underwear – and
thus liners and sanitary pads.
“We regularly purchase undergarments

to study how the cut and fi t are changing,”
says Magdalena Gunnarsson, a product
developer.
One example of a major trend in recent
years is the larger, yet still form-fi tting
panties known as “hipsters.”
Another current trend affecting SCA’s
product development, Gunnarsson says,
is patterned underwear. The
underwear material is soft, thin
and stretchy, which is popular
right now.
Today’s array of under-
wear apparel is enormous.
The trend in underwear is incre-
asingly toward greater variation in
the kinds of materials and models.
In 2009, it’s impossible to know what a
woman is wearing under her skirt.
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Say “bag-in-box” and most people think of wine. But
cooking oil, ketchup and soft drink concentrate have long
been delivered in air-tight bags packed in heavy cardboard.
The market for bag-in-box – BIB – has virtually exploded.
B63 =@757<A =4 bag-in-box pack-
aging fi rst saw the light of day in the
US in the mid-1950s. Back then, it was
a matter of fi nding a safe method for
transporting used battery acid.
The big breakthrough in packaging
came in the late 1960s, when the fi rst

boxed wine was introduced. The in-
ventor was an Australian winemaker
who was looking for a way to sell his
red wine in greater volumes without
the wine being ruined. When a bottle
of wine is opened, the contents are
exposed to air and begin to oxidize,
which makes the wine undrinkable af-
ter a few days.
The solution was a modern version of
the ancient wineskin, a leather pouch
that collapses as the wine is emptied,
thus preventing air from reaching the
wine. The modern container is made
partly of plastic. Bag-in-box sales were
a big hit almost instantly.
Since then, bag-in-box – BIB – has
grown into a global industry. As more
and more of the world’s wine was being
poured from boxes, an ever expanding
range of liquid products were making
their way into these airtight bags. Food
products like ketchup, sauces, syrup,
juice and cooking oil have long been de-
livered in BIB. Even milk was packaged
in BIB for a number of years.
BIB is a given for soft drink dispensers
in fast food restaurants the world over,
and Coca-Cola is one of the world’s
larg est BIB customers.

B63;/@93B4=@BIB packaging has
expanded more rapidly in recent years,
and all signs point to continued growth.
In Germany, close to 30 million BIB pack-
ages are consumed each year, while Brit-
ain goes through 32 million. The Italian
market is the largest for olive oil in BIB.
Perhaps the most obvious advantages
of BIB packaging are in transportation.
BIB solutions weigh less than glass con-
tainers, are far more durable and are
easier to stack which leads to lower fuel
consumption and less emissions.
7< @313<B G3/@A the market for
health care products has also grown, lar-
gely because the technology can now guar-
antee 100 percent sterility. Food supply to
restaurants is often also made in BIB as it
can ensure food safety and decreases the
risk of bacteria such as salmonella.
Nowadays, other alcoholic beverages
besides wine are stored in BIB. More and
more nightclubs are getting their vodka,
gin and rum deliveries in BIB packaging.
But wine is still the biggest product in
this area.
The French are far and away
the biggest users.
The French market grew 27 percent
last year. Even some of the most famous

and tradition-bound chateaux in the
Bordeaux region have begun selling
their wines as bag-in-box.
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he ingenuity involved in
wiping our behinds has
included everything from
leaves, rocks and sponges
to catalogs and even the hu-
man hand. Toilet paper
as we know it was invented in the US
in the 1880s. In Sweden in the 1940s,

Edet Bruk was the fi rst to manufacture
a more modern version of soft, creped
paper. Development work is always an
ongoing effort, and there are basically
two properties that are sought, explains
Jeanette Annergren, who is product de-
velopment director for bath and wash-
room solutions at SCA.
“The primary functions are to have
good cleaning and to have the toilet
paper work as a barrier for the hand
you wipe with,” she says. “The paper
also has to be fl ushable, and we’re con-
tinuously taking important aspects into
consideration such as minimal environ-
mental impact in production, packaging
and transportation.”
Along with these primary functions,
it’s important that the toilet paper both
looks and is soft and strong. As in many
other industries, design has become in-
creasingly crucial.
“Appearance and design are things
we work a lot with,” Annergren says.
27443@3<B>/>3@ technologies – wet
and dry crepe as well as TAD (through-
air-dried) – are used in paper produc-
tion. The fi nished paper from the paper
machine is sent to conversion. There it
is made into the desired prod uct, such

as toilet paper, kitchen rolls or paper to-
wels. Depending on the type of product,
the paper is printed, em bossed or calen-
dered. Some products are composed of
different layers of paper. Finally, the pa-
per is folded into bundles or rolled onto
cores in rolls. Lotions and softeners are
added to some products.
“With what’s known as embossing,
you create a decoration pattern as well
as a feeling of structure in the paper,”
Annergren says. “Then you can also put
layers together by using adhesive in the
embossing. That adhesive can be tinted
or untinted. You can also decorate the
paper with colored print.”
Just about any property can be pro-
t
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duced in theory, she says. However, some
combinations of properties can be hard to
achieve because the properties offset one
another in the manufacturing process.
“It’s a diffi cult combination to make a
super soft, super strong and super cheap
product,” she says.
To bring about the different proper-

ties, many tests are conducted on the pa-
per and the product. Some tests are done
in labs where people make up a sensory
panel. The panelists are trained to grade
the paper so they can describe such quali-
ties as the paper’s softness. SCA also con-
ducts major consumer tests where people
use the products at home and keep a log.
“Even though we test a lot on our-
selves, we can’t forget that the people
who work here are not ‘normal’ consu-
mers anymore,” Annergren says.
With many years of accumulated
experience, tests and market surveys,
which is best then – folding or bunching
up the paper before using it?
“As long as you’re clean, you can do
whatever you want,” she says. “So we
make sure to make paper that stands up
to both techniques.”
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!
4=@3ABA 1=D3@ ! per-
cent of the earth’s surface. Ten
million people are employed
in the global forest industry,
and forests are of the utmost
importance to all life on earth.
Yet they face many threats.
Six million hectares of na-
tive forest disappear or are
modifi ed each year. Although
the rate of deforestation has
decreased slightly, it is fright-

eningly high in large parts
of the world. Deforestation
hefo 
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Q]\QS`baO\R^O`bWSa¶
means that a total of 13 mil-
lion hectares of forest disap-
pear yearly, according to the
United Nations’ Food and
Agriculture Organization
(FAO). Most of the cleared
area becomes farmland.
To some extent, shrinking
native forests are being re-
placed with planted forests,
which are becoming increas-
ingly important to the health
of the planet and to people’s
8W[1O`ZSZ]dSae]`YW\UeWbV

T]`SabaO\Ra^S\RW\UbW[SO[]\U
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livelihoods. The large areas of land
where the native forest has disap-
peared could provide great value
to people in the region and to the
earth’s climate if they were replant-
ed with trees.
Jim Carle, head of the FAO’s For-
est Resources Development Service,
knows just about everything there is
to know about the world’s forests.
“The devastation of native forests
is a curse,” he says. “There’s far too
much acreage not being replaced
with new forests, which contributes
to deforestation. However, where
native forest is replaced with new
forest, there’s a positive effect amid
all the gloom. New trees absorb
more carbon dioxide.”
From FAO’s offi ce in Rome, Carle
speaks passionately about the threats
to the world’s forests and the oppor-
tunities presented by new technology
and planted forests. But understand-
ing everything Carle says in his heavy

New Zealand accent isn’t always
easy, especially when he speaks at
a rapid clip with hardly any
pauses.
To start from the be-
ginning: Jim Carle was
born in Fraserburgh in
Scotland 57 years ago
but grew up as a “Kiwi”
in New Zealand, a move
that was anything but easy
for a 5-year-old boy. Together with
his parents, brother and sister, they
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"

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>@=47:3
sailed from Glasgow to Wellington

onboard the ship Captain Cook.
His fi rst encounter with New
Zealand was a shock.
“I went to Sunday school in Clyde,
a rural town in New Zealand with
just a hundred or so families, wearing
a kilt,” he says. “I didn’t fi t in at all.”
Even as a child, he loved being
out of doors.
“I rarely wore shoes and was out
on a lake or river as often as I could
be, fi shing and making money as
well by picking cherries, apricots,
apples, pears and peaches.”
1/@:3 23D3:=>32 an interest
in forests early on and was inspired
not just by his love of nature, but by
the people he met.
“I loved science and had fantastic
teachers who were ornithologists
or were part of forest or mountain
rescue teams. In my teens, they took
me on adventures into the moun-
tains or on rivers around Queens-
town, Wanaka and Hawea.
“While we were sitting around
the campfi re one night, they said
that if I loved the outdoor life, I
should apply for a government
scholarship to the college of for-

estry. And that’s what I did.”
Carle won a four-year scholar-
ship, sponsored by the New Zea-
land Forest Service. He spent his
time studying intensely – and play-
ing rugby. He was the team’s cap-
tain, and they often played teams
from other countries.
“In the early ‘70s I played rugby
on the national team,” he says. “My
dream was not to become a profes-
sional athlete, but to live and work
in different countries.”
And that dream was realized.
By now, Jim Carle has lived and
worked in 60 countries. He spent
20 years working in Southeast Asia,
more than half of that with his own
consulting fi rm.
“Some of my main clients were
the World Bank, the Swedish aid
organization SIDA and various
UN bodies,” he says. “In Southeast
Asia, I was inspired not just by how
hard they worked but by their open-
ness to knowledge and technology.
In many ways, they’ve given us in
the so-called developed world rea-
son to feel ashamed.”
He says he’s always liked South-

east Asia’s cultural diversity, its fo-
cus on the family and the food that’s
among the best in the world.
“Vietnam made the greatest im-
pression. If I got the chance, I’d go
back. It’s touching and impressive to
see how they managed all the misery
after the war, with people maimed
and the land poisoned. They have
such motivation and energy and want
to do everything their own way.”
Unfortunately, Carle’s job meant
traveling nine months out of the year,
which doesn’t work well if you want
to keep your own family together. So
he shut down his fi rm and accepted a
job with the FAO in Rome in 2000.
/BB634/= Carle is in charge of
risk assessment and measures to fi ght
forest fi res and other threats to the
health of forests, such as the spread
of non-native species, insect infesta-
tions and various tree diseases.
“Among other things, we support
more than 50 domestic projects in
countries around the world,” he says.
“My most important task, some-
thing I feel really passionate about,
is to develop the necessary means so
that developing countries in particu-

lar can manage trees and forests in
an ecologically sustainable way in a
world of climate change.”
The world’s forests today face a
variety of threats.
“California and Australia are hit
by frequent forest fi res, which also
affect southern Europe in the sum-
mer. In northern Europe there’s the
problem of extreme weather, like the
storms that hit Sweden a few years
ago. Another problem is that the
permafrost is beginning to thaw. In
Russia, that’s already a big problem.
“In Sweden and Finland, trees
from forests have been used active-
ly for decades without destroying
the forests, which is unique. We see
a similar approach in New Zea-
land and Chile, where new planted
forests are extremely well man-
I
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