Straddling the Atlantic: CARTONDRUCK Forges a U.S. Presence That Builds on its European Strengths

By Deborah Toth

"We're seeing a variety of trends in the package design market here in the U.S. We're being asked to produce multi-color designs, special finishings like new holographic hot-stamping or laminating film."

For more than 35 years, CARTONDRUCK has established itself in its native Germany as one of the premier designers and manufacturers of premium-grade packaging, primarily for the cosmetics and confectionery industries. Headquartered in Obersulm, Germany, CARTONDRUCK produced more than 550 million folding cartons in 2005 for such major international cosmetic brands like L'Oreal, Estée Lauder, and Coty.

The growth of the company has prompted a sales office to be established in Paris and Gdansk, Poland, as well as a future printing plant in Gdansk. The family-run business, which is managed jointly by chief executives Steffen and Marc Schnizer, has established its reputation as a luxury packaging manufacturer in such large markets as Germany, the U.S., France, the UK, Spain, Belgium, the Netherlands, and Luxembourg.

A few years ago, CARTONDRUCK took its highly regarded reputation and crossed the Atlantic to set up a sales and manufacturing facility in Fairview, NJ. Last year, the parent company invested more than $5 million dollars in the operation, including a new KBA Rapida 105 nine-color, 11-unit, specially constructed UV press with two varnish stations, and tripled the production space of the facility. This year, the investment will continue with more production equipment, personnel, and office space.

"Our core belief is a commitment to quality," says Steffen Schnizer, CARTONDRUCK's chief executive. "To maintain that corporate philosophy we believe we need to collaborate closely with our customers either face-to-face or via the computer network at every stage of the product development."

Bridging the wide ocean

By establishing a North American sales and manufacturing facility in New Jersey, CARTONDRUCK is able to maintain that close contact with clients and set themselves apart from the competition. According to the company, they are the only high-end luxury packaging manufacturer that offers the same production capabilities in Europe and North America, giving their international clients global quality as well as improve their speed to market.

The New Jersey operation focuses on producing high-end packages for the North American market. Typical U.S. customers produce locally but are also global customers of CARTONDRUCK's that have needs in both the U.S. and international markets. These clients include Estée Lauder, L'Oreal, Elizabeth Arden, Coty, and Chanel. The company has positioned itself as the as the innovative folding box supplier for high quality folding boxes. Within the last few years, the firm has been offering more and more trend and development support and service worldwide.

"We're seeing a variety of trends in the package design market here in the U.S.," says Olivier Trevidic, v.p. of sales at CARTONDRUCK USA Inc. "We're being asked to produce multicolor designs, special finishings like new holographic hot-stamping or laminating film. For example, Elizabeth Arden Gant combines holographic films and hot stamping."

Arndt Schuchardt, senior account executive at CARTONDRUCK USA Inc., says there is also a big demand for new and innovative varnishes like softtouch, which provides a soft, rubbery feel. Softtouch was used on Coty's JLo Glow perfume package. The company is also using scented varnishes and high gloss finishings.

"Design is more than just color; design trends are moving towards feeling and scented design," says Schuchardt. "If we talk about design, we offer special constructions. Does the folding box always have to be square? No, there are plenty of new and innovative solutions! Do colors always have to be red, black, blue, etc.? No, there are beautiful metallic inks, pearlescent varnishes and even inks and varnishes that smell if we touch them.

Schuchardt believes that CARTONDRUCK has even set or helped establish some trends. He says that they were the first company to introduce a soft touch finished folding box, they introduced scented varnishes, and they are promising more surprising innovations this year.

Fashionable and innovative designs

The firm brought its eye toward innovation to the package design of Michael Kors Island perfume, which in turn led to two top awards from the New Jersey Packaging Executive's Club in 2005. The Island Michael Kors eau de parfum package marketed by New York City-based Estée Lauder captured the top spot out of 79 entries.

"The fashion designer Michael Kors wanted to work with his element and put it onto the box," explains Schuchardt. "When you touch the box you touch his fabric. This production was an industry-first. We had to do lots of research in order to find the best way to put his linen fabric on board and then print on his linen fabric."

CARTONDRUCK responded with a white .018 SBS board laminated to a 100% cotton linen weave fabric, believed to be the first use of this material for a major fragrance line's outer package. The fabric is offset-printed, and an attractive, silvery plaque is combination-hot-stamped and embossed, with the fragrance and designer name also hot-stamped in white relief. With its turquoise color and four-color-printed island imagery on the inside surfaces, the carton combines tactile and visual sensations linking fashion to fragrance.

"CARTONDRUCK did a brilliant job interpreting my design," says Chad Lavigne, head designer of his firm Chad Lavigne LLC in New York City. "It was a tremendous challenge and very difficult, but CARTONDRUCK produces nothing but amazing packages. Their attention to detail is unmatched."

Other leading perfume houses have similar words of praise for CARTONDRUCK. "Over the past several years, CARTONDRUCK has provided Chanel Inc. with an excellent blend of creativity and practicality of design coupled with superb quality and consistent service," says Scott Widro, vice president of materials management at Chanel and a judge of the 2005 NJPEC awards. "Chanel began its relationship with CARTONDRUCK long before it began to do work for our French counterparts."

The relationship began at Chanel through its work with Tiffany Company. Chanel has produced and package engineered Tiffany products for many years. The key to CARTONDRUCK's success with Chanel was its excellent printing combined with their capability to laminate printed stock to micro-flute, which created a durable yet elegant package. CARTONDRUCK has worked with Chanel for four years and probably six or seven years with Tiffany. "The CARTONDRUCK philosophy could be recognized on the Michael Kors Island package, which in turn merited the NJPEC package of the year honor," says Widro.

New presses and full services

To keep printing production similarities in both Germany and the U.S., CARTONDRUCK has installed new presses from KBA in both locations. In the fall of 2003, the Obersulm facility installed a KBA Rapida 105 six-color press with a coater and double delivery extension, pile logistics, and the ability to switch between conventional, hybrid, and UV production. In the fall of 2005, the New Jersey location installed an eleven-unit Rapida 105 press—nine colors and two varnish stations with a delivery extension unit mounted on a plinth to increase pile capacity.

"We're using the new machine to carve out a bigger share of the U.S. market by offering more unusual finishing options," says Schnizer. "Due to our KBA nine-color plus two varnish station printing press, there are almost no limits in terms of colors and effects." Schnizer explains that the ninth printing unit that follows the dryer can be used to apply a fine matte coating or an additional color to the coated sheets. Additional new equipment is on the way, including new computer-to-plate equipment in New Jersey. "Within the CARTONDRUCK group, we are developing new technologies in printing and finishing together with our machine suppliers and this will lead to additional investments also in the U.S. operation," Schnizer says.

Once the package has been printed and finished, CARTONDRUCK offers further services to its clients. The firm offers the ability to fill finished goods into the folding box and also the ability to assemble special packaging constructions. This is followed by special logistic solutions like warehousing and shipping. All of its production and development need to meet strict environmental and security regulations. The firm has also developed extensive knowledge in anti-theft.

For the last several years, CARTONDRUCK has formed a successful and exclusive partnership with a security consultant that enables them to offer security solutions for all parts of the product, not only the folding box. "Since security is a really sensitive area, we do not talk publicly about the different possibilities," says Schnizer. "This is always a confidential discussion between our customers and CARTONDRUCK."

Offering full service to its clients is more and more important to CARTONDRUCK. "Development time gets shorter and shorter because the time to market for new launches gets also shorter," says Trevidic. "By offering all services in-house, starting by design- and prepress-capacity, we help our customers to make developments more focused and flexible. We can react much quicker and we are even able to make the last design changes just before starting production."

Schnizer concludes: "The American market is one of our most important markets. The U.S. operation is focused on the production of high quality folding cartons especially for the cosmetic, hair-care and luxury industry. This means short turnaround times and outstanding sales service and innovative design and finishing solutions."