The Tetra Pak revolution

Tetra Pak has become synonymous with aseptic packaging

Tetra Pak is a Swiss company headquartered in Lund. The success of the company can be estimated from the fact that the name tetra pak has become synonymous with a neat paper-packaged milk carton. The revolutionary packaging technique was developed by Ruben Rausing which made the packaging process fast, low cost, efficient, safe along with increasing the shelf life.

Milk was the primary product for which the packaging was originally designed but was later extended to other milk derivatives, yoghurt, fruit juices etc. Prior to the tetrapak invention, milk was supplied in glass bottles which were difficult to store as they were prone to cracks. Once made ready-to-use, filling and sealing glass bottles were time consuming tasks. Also there was a risk of crack development in the bottles during the transportation stage. Once used the bottles were re-transported back to the filling station, inspected and then refilled for the next use.

Tetra Pak broke this vicious cycle. Rausing designed an instant packaging technique where the milk can be packed in no time. The first packaging container was in a Tetrahedron shape- that’s how the company got its name. Later the cuboid shaped Tetra Brik was launched which is the most popular in its packaging portfolio. Tetra Rex, The revolution came with the advent of Aseptic packaging where the packaging material was already sterilized. Milk was continuously flown and packaging is done at the same time.

Value creation

1. For Producers: The packaging time was reduced drastically which meant more packages could be produced per hour. The shelf life of the packed item was increased leading to less customer complaints. The packaging material was reduced by 80% which meant further reduction in costs.
2. For Transporters: More packages can be transported in a truck which meant less number of trucks required now resulting in reduced transportation cost. Transporters need not to worry about cracks being developed in the glass bottles.
3. For Consumers: No need to wash the bottles now. Also because of the tetrahedron shape of the packaging it could easily fit in the fridge. The user experience was made easy- Just tear the pack, pour it and drink it. If you can’t drink it right now, fold the pack and keep it for the next day.

Value Capture

Tetra Pak generated a revenue of more than 11 billion Euros in the year 2020 with Asia Pacific being the biggest contributor- 35% of its total revenues came from the region. The brand is active in more than 160 countries today and is expected to further its reach in coming years especially in developing economies. Its biggest competitor in the packaging business is SIG Combibloc but the main threat comes from other packaging substitutes such as PET plastic bottles.

Here is a video about Tetra Pak archives educating the users about the benefits: