Cargill Dow is an independent joint venture based in Minnetonka, Minnesota, US. Its NatureWorks PLA packaging was always, in the company's eyes at least, destined for greatness, but world events have pushed its profile to new heights more rapidly than expected. “The real driver has been the rising price of oil,” admits NatureWorks Mike O’Brien. “Corn prices remain very stable, but in the last few months oil prices have gone through the roof and this has sent the price of plastic packaging spiralling through the roof.
“It has been a big boost for us and allowed us to catch up very quickly with other packaging manufacturers. They have had 30 years or more to develop their products and we have been going for just two. We always knew we had the long-term advantage with our product with corn-based packaging but the oil situation has given us an earlier than expected push.”
That is not to say that O’Brien is totally content with the position the company finds itself in. He says: “We are ambitious and we thought we might have progressed slightly more quickly than this. But our manufacturing plant has been operational for two years now and we are beginning to see the efficiencies coming through from that and the additional volumes.
“The focus on rising oil prices has given us a spotlight but we are certainly not counting on them to remain this high in the long term.” The vision of Cargill Dow is that the market will buy into the consistency offered by corn-based packaging to fully establish its products in the global market. “Corn is a fundamental and sustainable raw material; it takes 100 days to grow corn and 100 years to produce oil,” says O’Brien. “Corn prices are also relatively stable. Added to this, our converter base, which is what we need to develop in order to really blossom, is expanding.”
NatureWorks PLA packaging has already been used in the fresh produce industry in Europe, most notably by Co-op Italia for its bagged organic salad range. The bags were designed to have a crunchy feel, which research showed gave the consumers an image of freshness. Sales grew five-fold in a short space of time.
But it is two major deals in the US produce industry that could mark the breakthrough for the packaging concept. California-based Newman’s Own Organics, a division of Newman’s Own since 1993 and a separate company since late 2001, will use NatureWorks PLA packaging for several varieties in its new line of organic salads.
The figurehead of the company, actor Paul Newman, donates all of the royalty he receives from Newman’s Own Organics, after taxes, to educational and charitable organisations, an incredible $150 million to date. Therefore the stories of its recent tie up with produce marketer FoodSource Organics, to enter the fresh produce category with the introduction of seven certified-organic salads, made more than its fair share of headlines in the US.
Perhaps more significant to NatureWorks though is the adoption of its PLA containers by Del Monte Fresh Produce, for use with its extensive fresh cut fruit range. The convenience products were previously packed in PET plastic tubs, which Del Monte is now beginning to convert to NatureWorks PLA. O’Brien says the move is a logical extension of what del Monte is trying to achieve. “How many bagged salads do you see out there in the marketplace?” he asks. “There is a real need for companies to differentiate their products in the category and Del Monte has taken the next step. Our goal is to help our customers sell more product at retail with packaging that stands out from the competition. They can use the packaging both as a marketing tool in itself and as a billboard for their environmental stance.”
John Loughbridge, Del Monte Fresh vice president, marketing, in North America, agrees. “Del Monte prides itself on being in touch with the way families eat today, and consumers are becoming increasingly savvy about the way they eat, as well as the way it is packaged,” he says. “Innovative packaging is important for taking our fresh cut products to the next level of consumer value.”
Several of Newman’s Own Organics’ most “in-demand” varieties, including the spring mix, spinach, herb salad, as well as sweet baby lettuces, will have the option to be packed in five-ounce tubs, thermoformed from NatureWorks PLA, a clear plastic that is 100 percent derived from corn. This will create a convenient, “natural-in-natural” offering for retailers who prefer rigid produce packaging.
Co-founded by Peter Meehan and Nell Newman, daughter of Paul Newman, Newman’s Own Organics believes NatureWorks PLA can play a significant role in helping win customers’ confidence in the freshness and quality of the new product lines.
“We find that people really want to know how ingredients are grown and processed on the way to their grocer’s shelf,” says Peter Meehan, ceo of Newman’s Own Organics.
“The same is true for how food is packaged. Consumers seem to feel better knowing their fresh produce comes in a container derived from natural ingredients rather than petroleum,” Meehan said.
“Taking the Newman’s Own Organic brand from the centre store to the perimeter produce department assures consumers of a name and quality they can trust,” says Joe Sandro, director of organic operations at FoodSource Organics. “Integrating natural packaging with the organic greens increases the product’s value and differentiates the offering with shoppers.”
Packaging is an important marketing vehicle for Newman’s Own Organics.
Thermoformed tubs are becoming popular with retailers for their display flexibility and consumer resealability benefits. NatureWorks PLA stood out for its environmental advantages, as well as its functional performance.
The lidded tubs have a smooth (rather than ribbed) surface for better clarity and increased product visibility. The high gloss of NatureWorks PLA brings attention to the quality of the leafy greens, and draws the shopper’s eye to the package.
At the request of Newman’s Own Organics, contracts have been entered into with corn growers to ensure that identity-preserved, non-GMO corn equal to the amount used to make the tubs and lids will be purchased during the next growing season.
“Newman’s own organics really put us through our paces from an environmental standpoint,” says O’Brien, “which was very good for us. If they say it’s OK, then it’s OK.”
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