Demand for fresh produce packaging in the US is projected to grow at an annual rate of 5.1 per cent to become a $3.6 billion industry by 2008, according to the US’s Freedonia group industry study, Produce Packaging. Similar growth rates are expected for the UK and Europe.
According to the study, plastic containers, bags and liners will lead the way. This group is forecast to record above-average growth based on its low-cost benefits, adequate performance with most commodities, and advances of higher performing bags used in the fast-growing salad segment. Strong gains are expected for plastic containers as offerings of ready-to-eat and pre-cut produce expand in both retail and foodservice applications. Reusable plastic containers were almost negligible in produce applications in the late 90s but have gained a significant presence in shipping and display of fresh produce.
Salads, potatoes, berries, apples and tomatoes are the leading lines used in produce packaging, together accounting for over 40 per cent of demand in 2003. Salads are expected to be the fastest growing produce-packaging use with strong growth from increasing sales of bagged salads in retail and foodservice, though retailers offer the best prospects because of their greater reliance on value-added packaging, and use of specialty films and high-quality graphics. The study also forecasts opportunities for modular systems like corrugated common footprint products because they are low cost, lightweight, protective, have high-stacking strength, good graphic capabilities and recyclable.
Growers and shippers are the leading end users of produce packaging, but faster growth is expected for re-packers, based on strong demand for fresh-cut produce and the increased need for tailor-made pre-packaging as retailers shift away from in-store produce re-packaging.
Sharp Interpack has already seen significant growth in demand for fresh produce packaging with sales growing by 12 per cent over 2003/4. Fresh produce manager Ruth Price says protection and freshness are key considerations for supermarkets, coupled with strong brand identities.
“This is reflected in sales of our SP range which is designed with these considerations. The flat lid design has been used for printing and is vented to provide optimum flow of air around the pack to maintain freshness. The range has also been designed for strength to protect the fruit and in a high clarity material to provide a clear view of the fruit for the consumer. Used for the packaging of soft fruit, the range was developed with one top size and a range of depths to provide a strong family image,” says Price.
For fresh-cut fruit, Sharp produces a range of trays in high clarity apet material with one top size and a range of depths. Price says: “This keeps costs down for retailers without compromising quality. The design means there is no handling of the product and the pack is heat sealed for maximum safety. “
With the increased demand for bespoke packaging for fresh produce, Sharp created a range of domed lids for fruit in the Tesco Finest range. “The base of the packs were originally flow wrapped but Tesco wanted a more up market image and a clearer brand identity,” says Price. “We designed a bespoke lid for the existing punnets from PVC to fit the base with a tight fit on the corners. The lids display the fruit to its best advantage on the shelf, while maximising protection and freshness and giving the product a premium quality image.”
This year Tetra Pak UK commissioned Forum for the Future to research the recycling of primary food and drink packaging. The results, presented this month at the Wasted Opportunities event, found the UK packaging industry has a major role to play in improving recycling and making a shift from a waste economy towards a sustainable resource economy. The research concluded that packaging producers need to shift their business models towards providing a sustainable packaging service, for design to be based on robust sustainability principles and include the production of re-usable/recyclable packaging to reduce materials and maximise the use of renewable/recycled materials.
Sharp Interpack is is one company practicing this, recently developing solutions with bio-degradable materials and providing compostable options to reduce packaging waste, and also offers new tamper evident packs to provide additional protection for the consumer.
Schur Flexible is a full-line supplier of flexible packaging with production sites in the UK, Denmark, Germany, the Netherlands and Poland. In last week’s Journal, Schur Flexible announced the details of its latest product in the UK, the Schur Punnet. UK sales manager Vince Larson says: “The fresh produce industry is attempting to pre-bag more produce, increase produce profile and create a unique identity. The Schur flexible punnet can meet all this objectives. Since the cost of conventional punnets are high, we thought we would develop a cheaper alternative that uses less packaging in terms of weight.”
The punnets are made of flexible film that is lighter, can be pre-printed with product information and tailor made to suit the packer’s needs.
Larson says: “Trials were conducted over several months this year using plum/cherry tomatoes and button mushrooms. The results showed that the shelf life of the produce increased by 30 per cent as the packs are vented. The packaging is ideal for fruit snacks and mixed salad meals. UK packer Samsara Ltd has chosen the Schur punnet because they liked the new style of presentation for their tomatoes and the shelf-life benefits.”
Smurfit Packaging has launched in the UK a range of shelf-ready packs under the brand name, Shelf-Assured. Initially, the range includes a number of unique designs offering stacking strength that are easy to fill and open. European account manager Mike Drummond explains the background behind the new products: “There is an increasing requirement within our customer base across Europe for shelf-ready packaging. We are working with some of the larger pan-European brands to develop packaging that will put product on shelves quicker and cost-effectively. We have developed a specific process in creating Shelf-Assured, which gets bigger and better, evolving as we work with more customers in this area.”
The Shelf-Assured range offers manufacturers many benefits in comparison to standard cases - the latest corrugated materials as well as design and print techniques to create cost-effective packs throughout the supply chain. From a retailer’s perspective, Drummond says shelf-ready packs deliver savings because of reduced labour needs for shelf replenishment and improved on-shelf display.
He says: “Our extensive Shelf-Assured range meets much of the market requirement, but if a customer has a specific requirement, we have an established process to create bespoke solutions.”
Andrew Woollard, sales and marketing director for Smurfit UK, believes that shelf-ready solutions will become the norm rather than the exception in the future. He says: “The relationships we have with retailers and many of the FMCG brands allows us to understand current trends and the needs of brand owners, which is key to our ability to offer solutions. The Shelf-Assured range offers products with different properties and benefits, creating opportunities for shelf-ready solutions in many different markets.”
Smurfit is aware of the importance of print, and with its Printvision initiative has helped companies to achieve better on-shelf brand recognition. Woollard says: “Brands are battling for sales in supermarket aisles - the Shelf-Assured range includes a number of designs and specifications that offer good print quality and make them ideal for improving on-shelf impact and communication.”
The challenge for food packaging manufacturers today is to design display-ready containers that require less handling and provide better product visibility, says Angus West, managing director of Garthwest Packaging. The group has been working closely with the fresh produce industry to develop innovative designs to achieve these objectives, focusing on handling and food safety issues, and present in-store branding opportunities. “It is up to the industry to work with suppliers and retailers to provide quality design-led solutions to the issues that face us. At Garthwest we have concentrated on strong design solutions, provided machinery to fresh produce packhouses and back up from our own manufacturing capabilities. The key to meeting customers’ expectations is to listen to what they are trying to achieve,” he says.
“Paper-based packaging is effective in terms of shipping and in-store product display without the problems associated with petrochemical packaging alternatives. Plus design and development costs are reasonable and can be tailored to the customer or in-store promotion,” says West.
“Shelf-ready units are a major development in packaging and almost certainly will be the way forward for fresh produce to be shipped safely and displayed effectively, in the retail environment - well-designed packaging helps to increase sales of freshly prepared food.”
In today’s retail environment, there is an increasing change in the approach to labels and packaging, according to Leading Edge, and none more so than the fresh product category. The company has worked with the fresh produce sector since 1997 and is seeing a range of trends emerging in labels, packaging and product lines being adapted or brought to market.
Joint managing director Ian Barwick says: “In the past seven years we have seen a dramatic change in the way markets operate and in requirements from our customers. With this in mind, we have grown our business to meet demands of today’s marketplace and have evolved it in a way that we are more than just reactive; we are proactive not only with our approach but also the products we offer.
“Our technology enables us to offer innovative labels and also other packaging solutions that add value and create a cost effective point of difference,” says Barwick.
He believes labels and packaging are integral to a product, playing a key part to reach the market and bearing on the success of how it sells once it reaches the retail environment. “Increasingly customers look for packaging solutions that maximise margins and meet their customer’s expectations. Consumers are more astute and perceptive to the role of packaging; they are hungrier for information, demand more benefit offers and promotions at no extra cost to their purchase. This poses the challenge to the fresh produce category,” he says.
A new design of label, Label-Plus, is being launched in the marketplace that enables a standard label, such as on pre-packed peppers, to be extended with a booklet built-in to the side to form one label. Barwick says: “This innovative style of label means additional product information or promotions can be incorporated into one label in a format easy to apply. This label allows the product design to retain a consistent company identity regardless of promotional activity.
“We are also noticing that more of our customers are only able to apply one label to packs during the production process, because of pack constraints or costs of applying a second label. Our Dual-Web label and new Coupon Plus labels offer mechanical flexibility and an area for additional information so that only one label is made and applied,” he says.
The Dual-web label was recently used for Sainsbury’s Baking Potatoes 4-pack, to offer 50p off Cathedral City cheddar cheese with every purchase of a four-pack of baking potatoes. Barwick says the promotion was created by Leading Edge including the Display Talker Point of Sale, which clipped into the crate and gave the potato promotion a higher profile in-store. “The success of this promotion was phenomenal with the uplift of baking potatoes during the promotional period far exceeding original estimates.”
And the new product lines don’t end there. After 12 months of development, Leading Edge has launched a range of eco-friendly labels, made from 100 per cent recycled paper, into Sainsbury’s for its organics lines. “Following strong demand for a natural look to packaging, we developed and created the simple, natural label with an earthy, textured feel,” says Barwick. “Most importantly, being a cellulose fibre-based product, the paper components are fully biodegradable making this style of label one of the first of its kind for the UK major multiples.”
In addition the company offers a range of packaging solutions and recently added two lines to its portfolio - pre-printed lids/trays and an innovative form of packaging called Quick-Tag.
The pre-printed lids/trays are aimed at fresh categories such as strawberry punnets and allows high-quality imagery to be reproduced inexpensively. The Quick-Tag product is suitable for lines such as spring onions, coriander, grapes, bunched beetroot, and floral. Barwick says: “Following initial trials, the product line has been launched into retailers such as Tesco, Sainsbury’s and Somerfield and has proved extremely successful.
“This form of packaging has been created to meet the demands of the retail supply chain - to provide an effective packaging solution but one that ultimately reduces costs. Quick-Tag can save customers approximately 30 per cent compared to conventional packaging tags for these types of lines because they can be quickly and efficiently produced for small print runs such as price point activity or tactical activity, seasonal lines, launches or branded links,” he says.
The demand for convenience is another trend emerging in consumers’ purchasing habits - not only with traditional fresh lines associated with snacking but in other categories previously untapped. With this in mind, the labels specialist has developed Booklet Plus - launching into stores this autumn. This line incorporates an existing product label with an “add on” - a booklet label. Working with Barfoots of Botley, Leading Edge has been involved with a new line (within selected Sainsbury’s) of snack cob sweetcorns and butter. Barwick comments: “We have found a change in type of labels produced in recent years. We are now finding trends towards incorporated labels - which mean that only one label is applied to a pack.
“With ever-shortening lead-times and the pressure to lower costs and add value, the market is continually having to evolve to meet demands - those ignoring this trend, will do so at their own peril.”
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