Growth Based on Innovation is Key to Market Survival

Innovation has always been extremely important for the advancement of society, but today it is probably more important than ever. The hunger for new solutions around the world is also driven by market demands as companies constantly strive to be faster and better than others in the market. Products, services, business models, or strategies – all of these can be innovated, but something new and useful does not always have to be something completely new. In fact, there is no need to reinvent the wheel; innovation can also occur by upgrading existing business models and products.

For example, Harvard Business School divides innovations into disruptive and those that maintain and improve business. In the case of disruptive innovations, smaller companies challenge larger ones in the business arena, while those improving business are pursued by companies that want to remain market leaders and continuously upgrade their offerings for existing customers. However, Harvard believes that the best approach is to unite both strategies.

According to Harvard experts, the most successful companies incorporate both types of innovation into their business strategies. It is important to maintain a position in the market, but to become competitive, one must grow.

The Importance of Innovation

Innovation can thus help in unforeseen business challenges as it allows for adaptability and distinguishes a company from its competitors. The importance of adaptability was demonstrated during the COVID-19 crisis when normal business operations had to shift to new work patterns. Growth based on innovation to avoid stagnation is crucial for market survival, and this can certainly be aided by a company’s diversity compared to other market players, as consumers have many similar products and services available to them. The successful story of Tetra Pak’s inception is proof of how important innovation is. When its founder, Ruben Rausing, returned from studies in the United States to his native Sweden, he started a product packaging company, Åkerlund & Rausing, with Erik Åkerlund.

After several difficult business years, in 1933, Rausing became the sole owner and turned to developing the packaging business. This advanced Swedish retail and encouraged the opening of self-service stores and large supermarkets. Rausing always made business decisions after studying the market and then sought technical solutions.

The Tetrahedron Story

Particular attention was focused on solving the packaging of milk, and in 1944, Swedish engineer Erik Wallenberg proposed the tetrahedron shape as a solution to Rausing. The design, filling method, and sealing of the paper packaging are attributed to Rausing, while the corresponding machine was designed by inventor Harry Järund in 1946.

By the end of 1952, cream began to be sold in tetrahedral packaging of one deciliter, and four years later, the modern Tetra Pak factory was ready for operation. Today, Tetra Pak operates in 160 countries and employs more than 25,000 people.

First in Croatia, Third in the World

Focused on innovation, Tetra Pak found an ideal partner in the largest domestic food company, Vindija, which was among the first to recognize that modern business must keep pace with sustainable care for a green future. Thus, in 2019, the Tetra Top MiniV Nallo packaging was launched on the Croatian market. Vindija was the first company in the domestic market and only the third in the world to replace plastic packaging for the brand of functional yogurt enriched with good bacteria and vitamins ‘z bregov Fortia, as well as for regular yogurt, with the innovative and environmentally friendly Tetra Top MiniV Nallo cardboard bottle. The Tetra Top cardboard bottle is a modern environmentally friendly packaging with an easy-to-open cap and a wide opening for easier consumption of the product. The innovative and environmentally focused packaging is unique in shape and design and has several advantages important for environmental preservation, such as a high proportion of plant material from renewable sources and a significantly smaller carbon footprint, which also means lower greenhouse gas CO₂ emissions in its production.

This responded to the growing consumer demand for sustainable packaging, and the following year continued in the same direction: Atlantic Grupa launched a line of oat bio drinks Boom Box in Tetra Brik® Aseptic 1000Edge packaging with LightCap™30 cap, which contains plastic parts made from sugar cane, the concept of which was selected through innovative marketing methodology in collaboration with Tetra Pak.

Plant-Based Drinks and Packaging

Following consumption trends for liquid food, Tetra Pak identified an opportunity for growth in the category of plant-based drinks in sustainable packaging, so it thoroughly analyzed the global, regional, and local market, as well as consumer trends for plant-based drinks and packaging with Atlantic Grupa. Using Tetra Pak’s and Atlantic Grupa’s innovation methodology, the concept of sustainable cardboard packaging for oat drinks Boom Box was selected.

These drinks are packaged in TBA 1000Edge packaging with LightCap™30 cap, consisting of 70.6% wood-based cardboard, 12.9% plastic made from sugar cane, which together represents 83.5% renewable plant content. Thus, the carbon footprint was reduced by 20% compared to the same packaging with fossil plastic. The Boom Box products were immediately recognized by Croatian consumers and became one of the best brands among plant-based drinks in the domestic market.