UK – European packaging manufacturer Coveris has significantly increased its UK security label production in response to the highest spike in retail theft in England and Wales in over two decades.
The company has invested in additional capabilities, research, and development to address this growing issue to enhance production, security formats, and sustainability.
According to the British Retail Consortium (BRC), retail theft incidents have nearly doubled to 45,000 per day, costing the UK retail sector approximately £1.8 billion (US$2.3 billion) annually.
The surge in shoplifting, driven by escalating prices and the rising cost of living, has led retailers to implement more stringent security measures.
High-value items such as meat, cheese, and beverages now receive increased protection to reduce shrinkage and ensure product availability.
Coveris, through its SourceTag brand, supplies loss-prevention label-tags. The surge in demand has resulted in a more than 60% year-on-year increase in production volumes to combat in-store theft.
The company’s composite SourceTag labels incorporate radio frequency or acoustic magnetic tags during manufacturing, providing a covert security solution compatible with existing store electronic article surveillance systems.
This integration eliminates the need for secondary stock-keeping units (SKUs) and in-store tagging, offering a seamless security solution that does not compromise branding or packaging.
Coveris’ security labels are particularly effective at self-checkouts, which account for around 80% of retail sales. The tags are deactivated upon purchase, saving time at the point of sale without requiring tag removal.
Nigel Hewitt, Coveris Paper Division Sales Director, stated, “We are working diligently alongside our retail and manufacturing partners to reduce in-store theft and waste, as part of our ‘No Waste’ vision.
“Compared to secondary tagging, our SourceTag labels offer a more sustainable solution, reducing SKUs, costs, processes, and time. However, delivering a fully sustainable solution is a pioneering development we aim to launch imminently.”
New wind power agreement
In other news, Coveris has made a significant step towards its sustainability goals by signing a new physical power purchase agreement (PPA) for renewable energy in the UK.
Brokered by AlphaReal, the deal will see Coveris source a substantial portion of its electricity from a 13.5MW onshore wind farm in East Kilbride, Scotland.
This agreement continues Coveris’ commitment to transitioning its operations to renewable energy, building on a previous ten-year PPA with Neoen to supply electricity to its European plants.
The new UK PPA will provide Coveris with a reliable supply of green energy, supporting its efforts to reduce its carbon footprint and achieve net-zero emissions.
The company will also receive Renewable Energy Guarantee of Origin (REGO) certificates, ensuring the electricity it consumes is genuinely renewable.
Christian Kolarik, CEO of Coveris, said, “At Coveris, reducing our carbon footprint and switching to renewable energy are integral components of our ‘No Waste’ sustainability strategy.
“These agreements represent a significant milestone for Coveris, as we will likely be one of the first packaging companies to complete a physical PPA, which is more complex and less common than a virtual PPA. Securing these agreements ensures that a significant portion of our energy consumption is derived from renewable sources.”
The wind farm project, developed in collaboration with EDF Business Solutions, will provide Coveris with a stable and reliable renewable energy source.
The PPA will support the growth of the UK’s renewable energy sector and contribute to the country’s decarbonization goals. Coveris’ commitment to renewable energy demonstrates its leadership in this area as the packaging industry faces increasing pressure to adopt more sustainable practices.
By investing in clean energy, the company protects the environment and positions itself as a responsible and forward-thinking business.
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