WEBVTT - A Global Recycling Day Look at Sustainable Packaging 0:00:02.480 --> 0:00:06.840 Bloomberg Audio Studios, Podcasts, radio news. 0:00:07.320 --> 0:00:11.760 This is Bloomberg Business Week with Carol Messer and Tim Stenebek. 0:00:12.280 --> 0:00:13.760 On Bloomberg Radio. 0:00:13.880 --> 0:00:17.240 It is Global Recycling Day, and on that Bloomberg Sleslie Coffin, 0:00:17.280 --> 0:00:19.959 writing at the start of twenty twenty four this year, 0:00:20.280 --> 0:00:22.239 Here's what she said. It is no secret that recycling 0:00:22.280 --> 0:00:25.759 in America is broken. The Environmental Protection Agency estimates that 0:00:25.800 --> 0:00:29.360 the US has a combined combined recycling rate of only 0:00:29.440 --> 0:00:33.800 thirty two percent for materials including glass, plastic, cardboard, and paper. 0:00:33.840 --> 0:00:37.880 That figure reflects collections from industrial, commercial, and residential trash. 0:00:38.159 --> 0:00:40.880 Well, yeah, I mean, not great news, not great numbers. 0:00:41.720 --> 0:00:44.480 We're spending the rest of the program talking a little 0:00:44.479 --> 0:00:46.599 bit about what's going on, at least the next two 0:00:46.720 --> 0:00:49.000 guests who are with us about what happens in the 0:00:49.000 --> 0:00:53.120 world of sustainability. First up is Tony Parata of PA Consulting. 0:00:53.680 --> 0:00:57.560 His broad area focus is on sustainability, economy, and the 0:00:57.640 --> 0:01:01.360 organization works with companies and industries. He joins us from Westport, Connecticut. Tony, 0:01:01.400 --> 0:01:03.760 good to have you with us this afternoon. How are you. 0:01:04.640 --> 0:01:05.880 I'm good. Thank you for having me. 0:01:06.000 --> 0:01:07.920 Yeah, thanks so much for joining us. When you hear 0:01:08.000 --> 0:01:11.880 thirty two percent when it comes to materials like glass, plastic, cardboard, 0:01:11.880 --> 0:01:15.440 and paper. That's from the EPA. Obviously not surprising to 0:01:15.480 --> 0:01:17.160 you because you work in this space. How do you 0:01:17.160 --> 0:01:18.360 think we get that number higher? 0:01:19.560 --> 0:01:21.000 It's a massive opportunity. 0:01:21.319 --> 0:01:23.360 There's a number of ways that we can work together 0:01:23.400 --> 0:01:27.720 to get that number higher. First, technology, better mechanical recycling 0:01:27.720 --> 0:01:32.880 practices leveraged by AI and robotics. Second, new recycling methods 0:01:32.880 --> 0:01:36.520 are coming on the scene, things like chemical recycling that 0:01:36.600 --> 0:01:40.559 go beyond just mechanical recycling. And finally, what we're most 0:01:40.600 --> 0:01:44.560 excited about is a move away from plastics altogether into 0:01:44.680 --> 0:01:49.280 alternative materials. As low as those recycling grades are, it 0:01:49.280 --> 0:01:53.480 does represent opportunity both for enhanced collection, but also a new. 0:01:53.320 --> 0:01:55.640 World and the new horizon of new materials. 0:01:55.680 --> 0:01:57.720 Well, Tony, you know, it's interesting too, And I always 0:01:57.760 --> 0:02:01.400 feel like when there's need to be made, people kind 0:02:01.440 --> 0:02:04.280 of can go and do the right thing, or you know, 0:02:04.440 --> 0:02:06.600 tax policy can also make us do the right thing. 0:02:06.880 --> 0:02:09.840 What is it though, that moves the needle the most, 0:02:11.040 --> 0:02:14.480 you know, in terms of sustainability initiatives, at least in 0:02:14.560 --> 0:02:17.080 your world, what you've seen, it really kind of moves 0:02:17.560 --> 0:02:19.919 people company industries to do the right thing. 0:02:21.040 --> 0:02:24.960 In the world of materials like plastics and aluminum and glass, 0:02:25.200 --> 0:02:27.160 what we've seen, especially here in the US, is a 0:02:27.160 --> 0:02:31.120 bottle return deposit system does a lot to. 0:02:31.160 --> 0:02:32.760 Move recycling rates upward. 0:02:33.240 --> 0:02:35.720 So here in the US and in my hometown of Connecticut, 0:02:35.840 --> 0:02:38.840 now we just raise the redunption rate from five cents 0:02:38.880 --> 0:02:41.720 to ten cents. It's been unchanged for the better part 0:02:41.760 --> 0:02:45.520 of three decades, so that was a major move. Bills 0:02:45.520 --> 0:02:48.600 and initiatives like that do an immense amount to. 0:02:48.560 --> 0:02:51.000 Be able to increase the collection of those materials. 0:02:51.080 --> 0:02:52.239 Is it just I mean, is it kind of a 0:02:52.280 --> 0:02:53.679 waste of time for us to be talking about the 0:02:53.680 --> 0:02:56.240 consumer end of this? Isn't doesn't so much of this 0:02:56.320 --> 0:02:58.640 happen on the industrial side of this stuff. 0:03:00.000 --> 0:03:02.160 Would agree? If you take the mentality of I have 0:03:02.200 --> 0:03:03.519 a problem to solve. 0:03:03.440 --> 0:03:06.320 Yeah, I'm going to convince three billion individuals to quote 0:03:06.360 --> 0:03:08.640 unquote do the right thing. Or would I prefer to 0:03:08.800 --> 0:03:11.239 convince a thousand companies to change the way in which 0:03:11.280 --> 0:03:11.880 they go to the market. 0:03:11.880 --> 0:03:14.239 Well, what are the regulations around companies? Because it seems 0:03:14.240 --> 0:03:16.440 like that really is what moves the needle with this stuff. 0:03:17.639 --> 0:03:19.440 Regulation is definitely the tip of the sphere. 0:03:19.639 --> 0:03:22.800 There's been a lot of talk around extended producer responsibility 0:03:23.120 --> 0:03:27.320 and the cost that firms will incur as a result 0:03:27.320 --> 0:03:31.480 of manufacturing and producing these items, but again, major opportunity 0:03:31.520 --> 0:03:32.120 for the companies. 0:03:32.160 --> 0:03:32.800 I get it right. 0:03:33.280 --> 0:03:36.040 At the end of the day, sustainability is in essence 0:03:36.120 --> 0:03:40.119 talking about using resources properly and that allocation of those 0:03:40.160 --> 0:03:41.720 resources it means better business. 0:03:42.080 --> 0:03:45.360 Hey, Tony, how has the recent news from the SEC 0:03:45.400 --> 0:03:48.120 and chair Gary Gensler had an impact? I'm thinking about 0:03:48.200 --> 0:03:51.120 the SEC now forcing companies to disclose their greenhouse gas 0:03:51.120 --> 0:03:53.800 emissions for the first time, but we should point out 0:03:54.240 --> 0:03:56.920 watered down a key requirement after there was some heavy 0:03:56.960 --> 0:03:59.840 lot being from industry groups. But this alone, how am 0:03:59.880 --> 0:04:03.160 I change kind of the story and the impact and 0:04:03.240 --> 0:04:05.240 move us to a much more sustainable world. 0:04:06.360 --> 0:04:09.000 Well, I think the story that we've seen unfold for 0:04:09.040 --> 0:04:12.760 the past ten years is there is a real embracing 0:04:12.800 --> 0:04:15.920 of this concept, in particular by the capital markets. So 0:04:15.960 --> 0:04:18.479 the lack of a climate action plan inside the company 0:04:18.839 --> 0:04:20.680 is the lack of a business continuity plan. 0:04:21.000 --> 0:04:22.440 It makes you less investible. 0:04:22.920 --> 0:04:26.960 So by embracing the notion of sustainability, greenhouse gas emission, 0:04:27.120 --> 0:04:30.280 and being transparent in that data collection. In your activity 0:04:30.839 --> 0:04:33.559 in essence as a leader of an organization, you're helping 0:04:33.560 --> 0:04:36.920 make your firm a more investable asset class and your 0:04:36.960 --> 0:04:38.760 future proofing your own business. 0:04:39.920 --> 0:04:41.560 Hey, I want to talk a little bit about other 0:04:41.720 --> 0:04:44.880 issues that we've talked about on our program when it 0:04:44.880 --> 0:04:46.680 comes to sustainability, and a lot of that has to 0:04:46.680 --> 0:04:48.920 do with sort of the effects that we're living with 0:04:48.960 --> 0:04:51.200 each and every day because of decisions that have been 0:04:51.200 --> 0:04:54.839 made and production over the last fifty to one hundred years. 0:04:55.520 --> 0:04:58.200 We talked about single use plastics and the idea that 0:04:58.600 --> 0:05:01.120 we're starting to see microplastics show up in places that 0:05:01.480 --> 0:05:03.520 we do not want them. And we talk about pfast, 0:05:03.600 --> 0:05:07.520 these so called forever chemicals tainting water streams and the 0:05:07.520 --> 0:05:10.440 water that we're drinking just from the tap in certain areas. 0:05:10.640 --> 0:05:13.360 How do you think about all this stuff, Tony, in 0:05:13.440 --> 0:05:16.760 ways to kind of, like, I don't know, keep yourself safe. 0:05:18.279 --> 0:05:21.800 So it's clear to a large number of us that 0:05:21.880 --> 0:05:25.440 the amount of plastic that we're producing at scale is 0:05:25.600 --> 0:05:28.800 just untenable. On top of that, to your well made point, 0:05:28.800 --> 0:05:32.520 the medical community is stepping in and every week discovering 0:05:32.560 --> 0:05:35.280 more and more places that plastics in particular show up. 0:05:36.720 --> 0:05:40.400 What is heartening and promising is a whole raft of 0:05:40.440 --> 0:05:44.920 new technologies coming onto the landscape. So things like seaweeds 0:05:45.200 --> 0:05:48.640 inalegenates and plant based fibers are being used to replace 0:05:49.120 --> 0:05:53.200 plastics in particular. You've got companies like not Pla. They 0:05:53.240 --> 0:05:56.640 won an Earthshot Prize late last year. PA actually helped 0:05:56.640 --> 0:05:59.960 them with their initial technology. We're seeing a whole revolution 0:06:00.200 --> 0:06:02.919 in the world of plant based fibers. There's a technology 0:06:02.920 --> 0:06:05.880 called pull pack where they're using fibers to replace plastics 0:06:05.880 --> 0:06:09.839 of all kinds. So as disheartening as one may see, 0:06:10.040 --> 0:06:13.560 some of the data look like there are immense opportunities 0:06:13.600 --> 0:06:16.280 to be had and new technologies coming onto the marketplace 0:06:16.360 --> 0:06:16.880 every day. 0:06:17.160 --> 0:06:19.520 Right How quickly though? Can it change the needle? Like 0:06:19.600 --> 0:06:22.160 I totally get into it. Bloomberg very involved in the 0:06:22.200 --> 0:06:26.719 earth Shot Prize as you know, you know, but I 0:06:26.760 --> 0:06:29.880 still am surrounded by a lot of plastic And if 0:06:29.880 --> 0:06:33.719 I go to buy anything, there's certain aisles in supermarkets 0:06:33.760 --> 0:06:36.640 and various stores that all it is is plastic containers. 0:06:36.680 --> 0:06:40.080 So how do we you know, I talked about Gensler 0:06:40.160 --> 0:06:42.919 chair sec chair Gantler. I mean a lot of lobbying, 0:06:43.480 --> 0:06:47.080 and these are whether it's the petroleum industry, the plastics industries, 0:06:47.160 --> 0:06:49.240 I mean spend a lot in terms of lobbying. Their 0:06:49.320 --> 0:06:53.039 survivability is at stake. Some would say, so how do 0:06:53.080 --> 0:06:55.240 you ultimately move that needle? 0:06:56.440 --> 0:06:59.200 I would offer one example that just dropped last week. 0:06:59.320 --> 0:07:03.160 Crick the coffee company. They disrupted the world of coffee 0:07:03.240 --> 0:07:05.520 years ago with a single serve pod and we all 0:07:05.520 --> 0:07:07.600 get to choose the flavor and the style and the 0:07:07.640 --> 0:07:10.960 amount we want in our homes. They just launched last 0:07:11.120 --> 0:07:14.360 week in the US and you product called the k Round. 0:07:15.000 --> 0:07:19.240 It's basically a plastic free coffee capsule that you can 0:07:19.320 --> 0:07:22.000 use in your home without the need for using plastics 0:07:22.120 --> 0:07:26.240 or aluminum. It's that type of innovation that will not 0:07:26.320 --> 0:07:29.640 only solve the material in the waste side of it, 0:07:30.000 --> 0:07:32.040 but I expect that to be a huge commercial and 0:07:32.080 --> 0:07:32.960 consumer success. 0:07:33.200 --> 0:07:34.560 Wait, these are the ones that you don't have to 0:07:34.600 --> 0:07:36.080 send these back to recycle, right. 0:07:36.680 --> 0:07:39.840 No, it's literally a pressed coffee pod that's coded in 0:07:39.880 --> 0:07:43.640 a non plastic coating. You drop that pressed coffee pod 0:07:43.760 --> 0:07:47.440 into curious new machine and you get the same amazing 0:07:47.520 --> 0:07:51.000 experience that we all come to know and expect, just 0:07:51.040 --> 0:07:52.400 without all the extra packaging. 0:07:53.760 --> 0:07:54.560 Hallelujah. 0:07:55.000 --> 0:07:57.480 But you know, there's some stuff that you just feel 0:07:57.480 --> 0:08:01.840 like can't be made in a sustainable way, like legos, 0:08:02.920 --> 0:08:03.800 the things I step on. 0:08:03.800 --> 0:08:06.920 Every day, Tony, do you have a solution thirty seconds 0:08:07.040 --> 0:08:09.240 left for do you have a solution for something like legos? 0:08:09.960 --> 0:08:10.520 For lego? 0:08:10.800 --> 0:08:11.200 Not yet? 0:08:11.520 --> 0:08:13.320 We should have those folks call PA and we can 0:08:13.360 --> 0:08:14.400 help them. 0:08:14.560 --> 0:08:17.760 The medical industry is moving more sustainably. 0:08:17.840 --> 0:08:21.000 That's another key area that's been problematic for safety reasons 0:08:21.040 --> 0:08:22.240 and regulatory Yeah. 0:08:22.440 --> 0:08:24.640 But again, technology is here to save us. There's a 0:08:24.680 --> 0:08:26.520 lot of amazing discoveries on the horizon. 0:08:26.600 --> 0:08:29.360 So when I really hurt myself on the lego, I 0:08:29.360 --> 0:08:31.040 will be given a medical solution. 0:08:30.720 --> 0:08:33.000 That will make sugar sugar. 0:08:33.160 --> 0:08:36.360 Yeah, yes, exactly, that's what you say when you step 0:08:36.360 --> 0:08:36.800 on a lego. 0:08:37.080 --> 0:08:41.120 Those things really really really hurt. Tony. Thank you so much, 0:08:41.160 --> 0:08:43.640 really appreciate it. Certainly a space that we care about, 0:08:43.720 --> 0:08:45.440 and it is great to get some time with you. 0:08:45.520 --> 0:08:49.560 Tony Parata. He is sustainability and regenerative economy expert at 0:08:49.640 --> 0:08:51.880 PA Consulting Jettings from Westport, Connecticut. 0:08:52.120 --> 0:08:53.120 Those things hurt. 0:08:53.160 --> 0:08:54.760 They've been, to be fair, they have been trying to 0:08:54.760 --> 0:08:56.760 make them more sustainable. They can't figure out any way 0:08:56.800 --> 0:08:58.640 to make My understanding is they can't figure out a 0:08:58.679 --> 0:09:01.080 way to make them with a material that's plastic that 0:09:01.120 --> 0:09:02.080 has the same precision. 0:09:02.240 --> 0:09:04.400 Now I get it right, so that it's still a 0:09:04.440 --> 0:09:05.240 toy that kind of works. 0:09:05.280 --> 0:09:05.520 All right. 0:09:05.600 --> 0:09:07.160 More to cum folks, this is Bloomberg. 0:09:17.120 --> 0:09:19.560 Well, there are a few certainties in this world, Carol, Yes, 0:09:20.040 --> 0:09:22.480 death taxes, and the styrofoam cup that you pour your 0:09:22.520 --> 0:09:24.720 hot water into when you make cup noodles. 0:09:24.800 --> 0:09:25.920 Ramen totally get it. 0:09:26.080 --> 0:09:29.320 We've all been there, boiled that water, pour it in 0:09:29.320 --> 0:09:33.160 the cup. Get yourself from the middle college. Yeah, who 0:09:33.240 --> 0:09:35.400 didn't survive on this stuff in college or at some point? 0:09:35.480 --> 0:09:37.800 Right Well, I'm talking about it because it turns out 0:09:37.800 --> 0:09:40.000 that after all these years, Cup Noodles is finally getting 0:09:40.040 --> 0:09:44.559 rid of that polystyrene foam cup and releasing a microwavable 0:09:44.600 --> 0:09:46.160 paper cup. I've actually got it in my hands right 0:09:46.200 --> 0:09:48.920 now because Brian Huff is CEO and president of Nissing 0:09:48.960 --> 0:09:51.920 Foods USA. It's the maker of cup Noodles. He's here 0:09:52.600 --> 0:09:56.360 with us in the Bloomberg Interactive Broker's Studios. Brian, good 0:09:56.360 --> 0:09:57.000 to have you here. 0:09:57.000 --> 0:09:59.480 How are you Thanks for. 0:09:59.400 --> 0:10:02.240 Having me, Yeah, definitely, thanks so much for joining us. So, 0:10:02.880 --> 0:10:07.000 first question, what took so long? Because we haven't been 0:10:07.040 --> 0:10:09.839 using this type of material and things for a long time, you. 0:10:09.800 --> 0:10:12.000 Know, as we were looking at our business, and we 0:10:12.080 --> 0:10:15.920 obviously have had that styrofoam cup since nineteen seventy three 0:10:16.000 --> 0:10:20.240 when we started producing in California. So we continue to 0:10:20.280 --> 0:10:23.520 look to evolve the brand, to involve the evolve the business, 0:10:23.920 --> 0:10:26.800 you know, and certainly the cup in the packaging is 0:10:26.840 --> 0:10:29.840 a big part of the brand. So we want to 0:10:29.840 --> 0:10:33.120 continue to lead in this space. And it was a 0:10:34.000 --> 0:10:37.600 great time for us to start to look at alternate materials, 0:10:37.679 --> 0:10:41.160 not only you know, from a sustainability perspective, but also 0:10:41.400 --> 0:10:42.640 now it's microwavable. 0:10:42.800 --> 0:10:44.640 Yeah, so was it a concern? Was did it take 0:10:44.679 --> 0:10:46.280 so long to make the change because you were concerned 0:10:46.280 --> 0:10:48.839 about changing the brand. And forgive me, I know you've 0:10:48.840 --> 0:10:50.079 only been at the company for a few months, so 0:10:50.120 --> 0:10:51.640 you can't speak to totally the history of it, but 0:10:51.640 --> 0:10:54.560 I'm just curious, you know, it's why a change like 0:10:54.559 --> 0:10:56.320 this comes now versus twenty years ago. 0:10:56.600 --> 0:10:58.520 I think A big part of it was finding the 0:10:58.600 --> 0:11:01.640 right materials. So you know, it's not as easy as 0:11:01.720 --> 0:11:03.840 just moving from where you were to paper in terms 0:11:03.880 --> 0:11:06.800 of how that product and that experience you have are 0:11:07.160 --> 0:11:11.640 But secondarily is retooling our entire manufacturing process to be 0:11:11.760 --> 0:11:15.040 able to deliver something like this to the marketplace, which 0:11:15.120 --> 0:11:17.880 was a significant investment for us, but we think the 0:11:17.960 --> 0:11:19.600 right thing to do for the business and the brand. 0:11:19.800 --> 0:11:22.319 Well, you know you and to be fair, like you said, 0:11:22.800 --> 0:11:24.360 only a few months at this company, but you are 0:11:24.360 --> 0:11:27.160 at Kellogg's for twenty four years, Like you understand this 0:11:27.280 --> 0:11:29.880 consumer package good space in a big way. You've worked 0:11:29.880 --> 0:11:33.440 at several different companies. I'm never quite sure what the 0:11:33.440 --> 0:11:36.680 margins are on these things. But to change packaging, like, 0:11:36.760 --> 0:11:39.640 what is it that in general kind of why it 0:11:39.720 --> 0:11:42.800 takes a while to make some changes in it? 0:11:42.840 --> 0:11:43.120 Is it? 0:11:43.240 --> 0:11:44.640 Like to help walk us through it? 0:11:44.800 --> 0:11:49.080 Well, I think ultimately, especially a large consumer package goods companies, 0:11:49.120 --> 0:11:53.880 they're built on efficiencies and effectiveness. So our manufacturing plants 0:11:53.920 --> 0:11:58.120 are manufacturing about nine hundred cups per line per minute. 0:11:58.320 --> 0:11:59.880 So to be able to make a change, to have 0:12:00.160 --> 0:12:02.840 to shut down the lines, retool the lines in this 0:12:02.880 --> 0:12:07.440 particular case, almost seven weeks of not producing on our 0:12:07.559 --> 0:12:11.000 manufacturing lines to be able to retool and rebuild the 0:12:11.080 --> 0:12:14.199 lines to convert from styrofoam to paper. So it's a 0:12:14.200 --> 0:12:15.160 pretty big undertaking. 0:12:15.240 --> 0:12:17.160 So see, you have two factories here in the US 0:12:17.280 --> 0:12:19.600 FU facilities that make these when you were retooling them. 0:12:19.600 --> 0:12:23.480 How do you make up for the factories that are 0:12:23.520 --> 0:12:23.960 shut down? 0:12:24.480 --> 0:12:27.440 Well, ultimately we move from a five day schedule to 0:12:27.520 --> 0:12:30.000 a seven day schedule, twenty four to seven, sleep on. 0:12:30.000 --> 0:12:32.200 The factory floors like Elon would. 0:12:32.000 --> 0:12:35.040 Do as you can imagine every you know, in building 0:12:35.120 --> 0:12:38.240 up inventory and making sure we've got the right inventory 0:12:38.320 --> 0:12:41.839 levels around the country, pulsing the business as we as 0:12:41.880 --> 0:12:43.640 we could to make sure that we could make this 0:12:43.720 --> 0:12:46.680 move effectively and continue to service our customers. 0:12:46.720 --> 0:12:50.200 And fair to say that the decision and the change 0:12:50.240 --> 0:12:53.080 was in effect or in process before you joined the company, 0:12:53.160 --> 0:12:54.840 it was, yes, But in. 0:12:54.760 --> 0:12:56.400 General, I guess what I'm trying to understand, because you 0:12:56.440 --> 0:12:59.160 are someone who understands this space and have been in 0:12:59.200 --> 0:13:02.040 it for a long time. Prime is that consumers. You 0:13:02.080 --> 0:13:03.560 and I talk about it all the time, Tim, and 0:13:03.600 --> 0:13:05.400 I know what. I've got a daughter who's about to 0:13:05.440 --> 0:13:08.640 be twenty one, And just like the importance of understanding 0:13:08.640 --> 0:13:11.040 what a product stands for, the materials, the impact on 0:13:11.080 --> 0:13:13.520 the environment. This is not a new discussion, So I'm 0:13:13.520 --> 0:13:16.120 just trying to understand, Like, when does a company like 0:13:16.240 --> 0:13:19.480 Nissan or somebody else finally decide, Okay, it's time for 0:13:19.559 --> 0:13:22.599 us to change this product because either consumers care or 0:13:22.640 --> 0:13:25.920 some other dynamic or financially it finally makes sense. 0:13:26.000 --> 0:13:28.320 Yeah, and I think the way you suggest it makes 0:13:29.080 --> 0:13:31.760 makes perfect sense. It takes a while for you to 0:13:31.800 --> 0:13:34.400 continue to read what that consumer is saying. Is it 0:13:34.440 --> 0:13:35.440 really cool what they're. 0:13:35.360 --> 0:13:38.120 But is it consumer based that ultimately makes you, guys 0:13:38.120 --> 0:13:39.079 make the change? 0:13:39.320 --> 0:13:42.400 Well, I mean I think it's consumer based. Sometimes it's 0:13:42.480 --> 0:13:45.400 company based as well, and what your company's values and 0:13:45.480 --> 0:13:47.920 mission are. So our company is doing business in about 0:13:47.920 --> 0:13:51.480 one hundred countries, and I would say that in some 0:13:51.520 --> 0:13:55.160 countries they're much more progressive the cares of sustainability. Europe 0:13:55.160 --> 0:13:57.880 is a big one. So Europe is leading in this 0:13:57.920 --> 0:14:02.040 particular space and the US is probably behind in a 0:14:02.080 --> 0:14:05.480 lot of these different packages and packaging types. So for US, 0:14:05.520 --> 0:14:08.040 as a global company, we spend a lot of time 0:14:08.120 --> 0:14:12.320 looking at our global footprint, looking at potential regulation that 0:14:12.400 --> 0:14:14.920 may happen over time, and for US wanting to be 0:14:14.960 --> 0:14:16.520 a leader in the space. 0:14:17.360 --> 0:14:19.400 Talk toors, we're Bloomberg, So we like numbers. Here, Sure, 0:14:19.440 --> 0:14:24.160 a publicly held company based in Japan more than eight 0:14:24.160 --> 0:14:28.520 billion dollar market cap at this point here in the US. 0:14:29.600 --> 0:14:32.600 How big of a market is it for your products 0:14:32.680 --> 0:14:35.880 versus other countries? I mean, how important of a market 0:14:35.920 --> 0:14:36.360 is the US? 0:14:36.440 --> 0:14:36.840 For Essen? 0:14:37.000 --> 0:14:41.640 It's becoming more significant every year. But the raman category 0:14:41.680 --> 0:14:44.680 globally is almost fifty billion dollars, So it's a very 0:14:44.840 --> 0:14:50.600 very large category internationally and globally domestically about three billion, 0:14:50.720 --> 0:14:53.720 So a sizeable food category here in the US, and 0:14:54.120 --> 0:14:57.400 you know, we are starting to be a material part 0:14:57.440 --> 0:14:59.000 of the overall organization in the US. 0:14:59.240 --> 0:15:02.680 That means that three billion dollars does that include that 0:15:02.720 --> 0:15:04.360 includes CpG and restaurants. 0:15:05.120 --> 0:15:08.000 It does not include restaurants, so this is just retail. 0:15:08.040 --> 0:15:09.920 Oh wow, Okay, so that's that is pretty big. 0:15:10.000 --> 0:15:10.360 All right? 0:15:10.400 --> 0:15:11.960 So I'm going to go there because I kind of 0:15:12.000 --> 0:15:13.400 asked you about it. So when do we get the 0:15:13.400 --> 0:15:14.720 sodium down fifty percent? 0:15:14.760 --> 0:15:16.600 Like I've talked about what consumers. 0:15:16.120 --> 0:15:19.800 Want again a younger you know, whether it's my daughter 0:15:19.920 --> 0:15:22.240 or other people are looking at these things and being like, 0:15:22.360 --> 0:15:25.840 oh wow, like taking a second thought. I didn't really 0:15:25.840 --> 0:15:27.200 think about it so much in college. 0:15:27.480 --> 0:15:29.200 Did not cross my right eart. 0:15:29.280 --> 0:15:30.720 But I mean, and I know you said you guys 0:15:30.760 --> 0:15:31.680 are working on it. 0:15:31.760 --> 0:15:34.400 We are, and there's a lot of good technology out 0:15:34.440 --> 0:15:38.720 there in terms of reducing sodium without lessening taste. Right. 0:15:38.760 --> 0:15:40.600 So a big part of this is we are a 0:15:40.640 --> 0:15:43.360 product that is consumed each and every day, right, and 0:15:43.440 --> 0:15:45.720 consumers vote, and a lot of what they vote on 0:15:45.880 --> 0:15:48.440 is not only nutritionals, but it's also taste. So you 0:15:48.520 --> 0:15:51.320 have to have both. So we've got a global team 0:15:51.360 --> 0:15:53.320 in R and D. We also have a domestic team 0:15:53.320 --> 0:15:56.800 in California that's continually looking at the new technology of 0:15:56.840 --> 0:15:59.400 how that sodium hits your taste buds, how you can 0:15:59.440 --> 0:16:02.800 simulate a higher level of taste and flavor and reduce 0:16:02.880 --> 0:16:06.480 the sodium, and something that we continually operate and work on. 0:16:06.520 --> 0:16:09.000 And the product has gotten much better over time and 0:16:09.040 --> 0:16:11.240 will get much better in the future. But that's a 0:16:11.240 --> 0:16:11.800 great question. 0:16:13.160 --> 0:16:16.800 Talk a little bit about product category in the US, 0:16:16.800 --> 0:16:19.000 and like the most popular products, this is this I'm 0:16:19.000 --> 0:16:22.360 holding for the people listening on radio, cup noodles, chicken. 0:16:22.480 --> 0:16:25.920 I'm really I feel like, yeah, you don't need hot water, 0:16:26.000 --> 0:16:26.720 you just need water. 0:16:26.960 --> 0:16:28.360 We've been on air for a couple of hours. 0:16:29.160 --> 0:16:33.320 There go get some We love that, so thank cute. 0:16:33.840 --> 0:16:36.280 But is this, I mean, is this the flagship product? 0:16:36.360 --> 0:16:38.000 The chicken chicken, cup noodle. 0:16:37.840 --> 0:16:39.840 Chicken category is the flagship? 0:16:40.000 --> 0:16:43.160 What portion of revenue does that account for for the company? 0:16:43.200 --> 0:16:45.320 For for us, so I want. 0:16:45.160 --> 0:16:47.720 To say us, it's about forty percent of our Wow, 0:16:48.080 --> 0:16:50.720 that was amazing. Now there's multiple one products within that 0:16:50.720 --> 0:16:52.160 proc that was total brand. 0:16:51.960 --> 0:16:54.440 Okay, total brand, not just chicken flavor. Okay, So it's 0:16:54.560 --> 0:16:57.880 and then and then the top ramin category two is 0:16:57.920 --> 0:16:59.520 certainly a big one for. 0:16:59.520 --> 0:17:02.040 You, huge categories, yeah, and great brands. 0:17:02.080 --> 0:17:04.440 And that's sort of almost the remainder because yes, when 0:17:04.440 --> 0:17:07.080 I was struck by looking at the website, how how 0:17:07.160 --> 0:17:11.160 much the products haven't changed in a long time. There's 0:17:11.200 --> 0:17:14.160 still the classic products, which says, okay, wait a second, 0:17:14.200 --> 0:17:15.280 there is that loyalty here. 0:17:15.800 --> 0:17:18.560 There certainly is, and there's certainly other flavors. Yeah, and 0:17:19.119 --> 0:17:22.600 it's an iconic brand and as we innovate, we want 0:17:22.640 --> 0:17:25.919 to continue to keep innovating too. On our traditional and 0:17:25.960 --> 0:17:28.920 our original, which in this particular way, we looked at 0:17:28.920 --> 0:17:31.680 packaging as a way that we continue to deliver new 0:17:31.720 --> 0:17:32.640 news and innovation. 0:17:32.800 --> 0:17:34.159 That's what I was going to go to, right. We 0:17:34.200 --> 0:17:36.080 spent so much time talking about the tech world and 0:17:36.119 --> 0:17:38.800 the tech community and innovation disruption. How do you guys 0:17:38.800 --> 0:17:40.880 think about it in the food space? What it means 0:17:40.920 --> 0:17:43.840 for you? Where it is a well known brand, kind 0:17:43.840 --> 0:17:45.720 of iconic if you think about it, Carol. 0:17:45.440 --> 0:17:47.720 There's a band store where you can buy a cup 0:17:47.760 --> 0:17:49.919 Noodle's trucker hat and a cup of Noodle's beanie. 0:17:50.080 --> 0:17:52.720 Very cool, by the way, I should have brought one 0:17:52.760 --> 0:17:53.080 with me. 0:17:53.359 --> 0:17:57.000 Yes, we're here next time, Carol. Okay, I might get 0:17:57.000 --> 0:17:58.080 you some top romin socks. 0:17:58.119 --> 0:18:00.000 Okay, just get about forty five fifties. 0:18:00.400 --> 0:18:01.080 Oh those are still doubt. 0:18:01.080 --> 0:18:02.080 I'm sorry, All right, stuff? 0:18:02.520 --> 0:18:05.479 What's innovation or disruption for you, guys? As you think 0:18:05.520 --> 0:18:06.520 about this space, you. 0:18:06.480 --> 0:18:09.000 Know what we look at is when on a three 0:18:09.080 --> 0:18:12.600 year rolling basis, about fifteen percent of our revenue actually 0:18:12.640 --> 0:18:15.280 coming from innovation. So we're continuing to look at other 0:18:15.359 --> 0:18:19.200 premium spaces that we can go more different and unique ingredients, 0:18:19.520 --> 0:18:24.680 certainly authentic Asian and hotter flavors today are big sellers. 0:18:24.960 --> 0:18:27.639 So it is a constant investment that we're making in 0:18:27.720 --> 0:18:30.080 innovation and truly is the future growth of the business. 0:18:30.080 --> 0:18:32.359 We'd be remissed. We usually start this way twenty twenty 0:18:32.359 --> 0:18:36.480 five seconds. You are CEO of and Foods here in 0:18:36.520 --> 0:18:39.040 the States and so on and so forth. How would 0:18:39.040 --> 0:18:41.800 you describe the global market environment the economy right now? 0:18:42.320 --> 0:18:44.880 I think the I think the economy is really challenging, 0:18:45.640 --> 0:18:47.960 and you know, I think there's a lot of mixed 0:18:47.960 --> 0:18:51.359