Annual Packaging Report
A Call To Arms
by Shonda Talerico Dudlicek
Does dairy packaging need to be more aggressive?
It’s been an unusual
year on the packaging end of the dairy industry. Last year,
hurricanes Katrina and Rita severely impaired resin production in North
America, leading some dairy processors to consider switching from plastic
to paper, at least for the short term.
And then a little-known FDA edict kicked in at the
start of 2006, requiring processors to prove their fluid milk packaging is
“tamper evident,” although it’s still unclear exactly
what that means under the new regulation.
Tom Vierhile, director of Productscan Online, points
to some emerging trends in dairy packaging that borrow heavily from
products sold overseas or in other industries.
But, one of the dairy industry’s most outspoken
critics says packaging is more of the “same-old, same-old.”
“It’s worse this year!” proclaims
Bob Messenger, editor and publisher of The
Morning Cup, an industry online newsletter, and
editor of Stagnito’s Rollout, a daily online journal for product developers.
“I’m going to make a bold statement and say that dairy is the
least creative of all food and beverage industries.”
Messenger says the last great dairy invention was the
Dean Milk Chug. “I look at all the containers and a lot look pretty,
like Ben & Jerry’s and Häagen-Dazs have pretty classy
package graphics. But they’re ice cream — I’ve been
there, I’ve seen that.
“If I was a teacher, I’d put the dairy
industry in the corner with a dunce cap on its head.”
Single-Serve Opportunities
Shaking dairy’s commodity image is a real
challenge for many processors, says Paul Vilser, president of Paul Vilser
& Associates, a Long Beach, Mich.-based design house. “Innovation
— that’s the real problem with dairy. They make a commodity
rather than branding,” says Vilser, who designs packaging and
graphics for a number of processors.
“Everyone in dairy likes to maintain the status
quo,” Vilser says. “But look at the branding of water. I know I
always look for Aquafina, whether it’s any different or not.”
He points to Kemps single-serve bottles, with their
printed images and attractive labels that make them stand out in the dairy
case; Oberweis’ glass bottles, which are synonymous with the regional
brand; Wells’ Blue Bunny ice cream containers, with their new Fresh
Lock Seal; and even to the orange juice segment. “The orange juice
case was full of the same until Simply Orange came about. That’s what
jumps out at you on the shelf,” Vilser says of the carafe-style
bottle. “That’s what’s needed with milk packages. By
branding, you’re using a unique package. With gallon milk, it seems
like everyone’s the same. When people buy milk, they don’t care
what they’re buying. Single-serve milk has a real
opportunity.”
Dairy products could use new packaging or material,
Vilser says, but the dairy sector can learn from other industries that are
doing an excellent job — it’s all in the marketing ideas.
For example, soft-drink bottlers often use promotional
labels or a secondary label with a secret code for downloading songs or a
coupon. “These have had great success on soda and could work the same
for dairy,” Vilser says.
Further, promotions could drive traffic to a dairy
processor’s Web site with games for kids. “And once kids are on
the Web site, you could educate them on milk and dairy products,”
Vilser says.
Another place to look for marketing lessons is the
beer industry, Vilser says. “Beer bottlers are doing cool and
innovative things to make their products icy and chilled, making cold-wrap
bottle labels,” he says. “It’s a texture printed on the
underside of the label so when you put your hand around it, your
hand’s warmth is insulated from the bottle. This is available only in
bars. Another is an innovative cooler box that folds open and you dump ice
into it.”
The cold-wrap label bottle uses a special substrate
that’s “like a woven print,” Vilser explains. “When
the label is applied it creates air pockets. Whether it’s really cold
or not, it feels colder.”
The Next Generation
Many dairy leaders acknowledge the future rests in the
hands of kids, that the industry must start winning them over early as
lifelong milk drinkers. As such, Vilser proposes a single-serve milk
container with a molded cup top, like a toddler’s sippy cup.
“Dairy can have opportunities, especially when
it comes to kids,” he says. “Now that schools are banning soda,
if dairy processors can come up with cool packaging, kids will be more
likely to pick milk.” And many processors have come a long way in
moving their school milk offerings from stodgy to stylish.
Meanwhile, aseptic packaging — traditionally
shunned by Americans for beverages traditionally served cold — may
have real inroads with kids. “As new grandparents hanging around our
grandsons, that’s all they drink are juices in aseptic
packaging,” Vilser says. “We balk at aseptic packaging, but
among Europeans it’s big. Kids are familiar with aseptic juice boxes.
We’re used to bottles, but kids are drinking juice out of packs like
Capri Sun.”
Vilser recounts a Heinz marketing director talking
about the company’s famous introduction of green, blue and purple
ketchup. “Adults may say ‘yuck’ to colored ketchup. But
kids have a clean slate,” he says. “Kids don’t know what
color ketchup is supposed to be. Kids don’t have a paradigm to what
milk should be.”
Messenger disagrees: “Consumers don’t like
it. It’s not going to work for kids because it’s going to take
more than that to get kids to drink milk.
“The aseptic shape is just a box and it’s
not fun for kids,” he continues. “Why not shape it like a
baseball, with a top hinge? Why not have interactive packaging? Maybe a 3-D
or holographic — when you turn it, it moves.”
For ice cream, Messenger suggests a bowl-shaped
container to mimic the home eating experiences. “And what about
yogurt? I dare you to find something innovative in yogurt,” he says.
Messenger argues that the dairy industry doesn’t
put a premium on packaging, which is a selling point. “It’s
like buying a car. If you saw this rusty old car but you were told it had
the best engine in the world, but the doors are hanging off and it was hot
pink and had torn upholstery, would you buy it? I kind of think that way
about dairy,” he says.
“Some companies do nice graphics, but
they’ve got to get into shapes, sizes. There are definite needs. And
‘fun-ability.’ Why not tubed ice cream? Soft serve in a tube.
Now that’s ‘fun-ability.’ I’m just mystified as to
why nothing is going on.
“I really sound like a downer, but get off
your [rear end] and innovate!”
Shonda Talerico Dudlicek is a freelance journalist and
a former managing editor of Dairy Field.
FDA ENFORCES TAMPER EVIDENCE
Starting in January, the
Food and Drug Administration (FDA) began enforcing tamper-evident packaging
for plastic fluid-milk containers.
Language added to the Pasteurized Milk Ordinance (PMO)
at the beginning of this century quietly began to take effect in 2006,
requiring fluid-milk producers to use closures that can’t be removed
without detaching the seal.
Since the FDA announced back in August that
enforcement would begin in 2006, there have been more questions than
definitive answers. The FDA is already debiting dairy plants during
inspection if a dairy processor’s cap doesn’t have a
tamper-evident seal. If a plant loses enough points, a dairy processor
might lose the opportunity to ship Grade A products over state lines. The
regulations are for fluid milk only.
“It’s been under the surface, with nothing
official,” says Michelle Matto, regulatory affairs manager at the
International Dairy Foods Association (IDFA). “It leaves it wide open
for how testing would be done.”
The FDA hasn’t yet established protocol to test
whether a container or closure is tamper evident, so Washington, D.C.-based
IDFA has been working with the FDA to develop one.
“It will look at how closures, the neck finish
and the bottle itself will perform,” Matto says. “It’s
not like one type of cap will be outlawed, which is a rumor that’s
going around the industry.”
As for the ordinance’s current status, the FDA
drew up a draft for IDFA, which then made comments and forwarded them to
the National Conference of Interstate Milk Shippers (NCIMS), which oversees
the PMO. NCIMS then made comments to the FDA, and Matto says she hopes the
organization will issue a statement later this summer.
“It’s still moving slowly through the
process, as it always does. Hopefully we’ll have something fairly
soon,” Matto says, adding that some testing is occurring, although
it’s not widespread.
DESPITE HURRICANES, RESIN RECOVERING
Hurricane season is upon
us again, and many industries still haven’t fully recovered from the
destruction of Katrina and Rita.
Hurricane damage to petroleum-centered industries in
the Gulf Coast region drove up the price of gasoline and natural gas, and
the world’s two largest resin plants are based near New Orleans.
Since last fall, a significant number of resin
manufacturers and suppliers indicated that recent hurricanes had a major
effect on their capabilities to make or deliver polyethylene or
polypropylene resins; polyethylene is needed to manufacture plastic milk
jugs. Several plastics suppliers notified customers they’d be
activating their force majeure — “acts of God” — contract
clauses and told them to anticipate shortages, according to the
International Dairy Foods Association (IDFA).
The underlying problems are many and complex. Among
the issues are shortages of natural gas, ethylene, hydrogen and lack of
power. Transportation issues in the Gulf Coast region continued to be
widespread, and the availability of rail cars for inbound and outbound
shipments were severely curtailed.
IDFA worked closely with the U.S. Department of
Agriculture (USDA), the Department of Commerce and the Department of
Homeland Security to implement solutions to the plastics shortage. At
IDFA’s request, USDA asked for the dairy industry to take priority
for existing supplies of high-density polyethelene (HDPE) resin.
Discussions with the Canadian government and other entities regarding
foreign sources of industrial gases and HDPE were unsuccessful.
Even though Hurricane Rita did not directly strike
Houston, where many production facilities are located, resin manufacturers
and supplier companies shut down plants there to minimize damage and allow
for reduced staffing, due to employee evacuations.
Notices of short supplies of resins used for
blow-molded milk jugs have been issued by suppliers, threatening cutbacks
in milk processing, according to several companies. IDFA reported a
significant number of its members faced HDPE allocation cuts amounting to
as much as 30 percent. IDFA asked the plastics industry for prioritization
of milk over other non-perishable food products, and has asked the
government to assist in sourcing foreign sources of resin.
But the North American polyethylene resin market is
now making a comeback after a year marked by natural disasters and
record-high resin prices. Resin supply is much better balanced with demand
today than it was for much of 2005, according to Nick Vafiadis, director of
polyethylene, North America, at Chemical Markets Associates Inc.
“Last year, resin producers overproduced during
the first quarter, cut production in the second quarter, lost production to
hurricanes in the third quarter and replenished depleted inventories during
the fourth quarter,” Vafiadis told Flexible
Packaging magazine in March.
Resin prices also appear to be adjusting to the
post-hurricane environment as the enormous price gap that developed between
North America and virtually every other region of the world is diminishing.
North American polyethylene resin demand increased in January, meaning that
the market is regaining some semblance of order.
TOP 10 PACKAGING TRENDS
Tom Vierhile, director of
Productscan Online, Naples, N.Y., discusses new products as good examples
of packaging trends in the dairy industry.
“There’s a trend toward freshness, and a
trend toward these in drink products,” Vierhile says.
Dairy products could learn from new developments in
other industries, he suggests. For instance, dairy could borrow from the
hair-care category, which launched Brylcreem Shots with six hair gel
“eggs” in a blister pack as an example of individual portion
packaging. “It looked kind of nifty and could easily work in
dairy,” he says.
Another example for dairy is the “Fresh
Can” technology, geared toward the health, wellness and sports-drink
markets. Sensitive substances such as vitamins, probiotic additives or
trace elements — nutritious ingredients that cannot be preserved in a
liquid solution — can be stored in a can in a dry state and remain
unmixed with the beverage until the can is opened.
“Along with the freshness trend, someone like
Borden could put the pouch of seasoning ingredients inside a shredded
cheese pouch, keeping it separate until the consumer is ready to add
it,” Vierhile says. “Or if you have a product with a lot of
inclusions or flavor impact. It’s the same idea as Fresh Can. You can
let your mind wander to all the possibilities.”
Vierhile comments on Datamonitor’s top 10
packaging trends:
1. Built-in Cheese Graters: “We saw this first in Europe but it has quickly moved
to the U.S.A. and now includes launches like Kraft Grate-It-Fresh Natural
Parmesan Cheese. This is all part of the trend toward fresher food
products as well as the trend toward individualizing portion and package
sizes. The consumer is in the driver’s seat with this one and can
decide just how much fresh parmesan cheese to add to their
dishes. It’s the home application of the popular ‘Would you
like cheese on that?’ restaurant experience you might get at a
restaurant like Olive Garden.”
2. Butter in
Different Package Configurations: “Shedd’s
Spread Country Crock Spreadable Butter showcases butter in a resealable
tub, a popular package for margarine and spreads and one which could work
well for butter. Meanwhile, Land O’Lakes is out with Half Sticks that
are well suited for recipes as well as smaller households. We’re
bullish on the trend toward downsized packaging for smaller households as
there are more singles out there living on their own as young Americans
delay marriage and also more empty nesters.”
3. Packages that Add
Freshness: “Emmi Lacto Tab Q10 is
not available yet in the U.S.A., but the trend here is worth watching. The
coenzyme Q10 is contained in a blister inside the lid of the bottle and
doesn’t mix with the milk serum until the product is consumed. We
think that this type of packaging development could have broad implications
in dairy and a lot of other food markets.”
4. Resealable
Pouches: “Lifeway’s Probugs
product is an illustration of the resealable pouch, a very popular
packaging concept in Asia, but something which is relatively novel here in
the U.S.A. Wells’ Blue Bunny Dubble Bubble Tear Jerkers Slushee is a
similar idea.”
5. Shot-Type
Packages: “These packages are
ideally suited for ‘daily dose’ products like probiotic
yogurt. Dannon DanActive is a great example and there are a lot of products
like this in Asia and Europe, fewer in the U.S.A. Still, it is a packaging
development to watch.”
6. Versatile
Containers with Multiple Serving Options: “The
Lanz Yogurt Yo Yogurt Drink isn’t new in the U.S.A., but the ability
to consume this product like a drink by twisting off the top cap or like a
yogurt by removing the peel-off foil lid on the bottom is the type of
packaging versatility that could appeal here.”
7. Individual
Portion Packaging: “Burgo de Arias
Burguitos is sold in Europe, but is the type of package that could find a
home in the U.S.A. It consists of 24 cheese units presented in a perforated
tray.”
8. Snack-Size Ice
Cream in Tubs: “Dreyer’s Dibs
is a good example of this, and Good Humor-Breyers Ice Cream has another one
with Breyers Ice Cream Poppers. The packaging isn’t exactly memorable
for this one, but it seems to be more common for ice cream
snacks.”
9. Ice Cream in
Resealable Plastic Tubs: “Nestle
Country Creamery Ice Cream was first with these plastic resealable tubs
which keep ice cream more fresh and less prone to suffering from freezer
burn. Wells’ Blue Bunny has followed suit with its entry. Similar
ideas are on tap with Angelys Glaces Sorbets from France and the ice cream
in a tin is a unique idea from SheerBliss. The old paperboard carton
isn’t very inspiring and we’re seeing a lot of activity in
alternate package forms in the ice cream category.”
10. Snack-Size Packaging: Cabot of Vermont is copying what we are seeing a lot in candies
these days: individually packaged portions — usually sold around
holidays like Halloween — that are now sold as year-round
offerings. These are great for lunch boxes and bags which seems to be the
idea with this one.”
WINNING PACKAGE DESIGNS
Packaging-design winners
of the 2006 Achieving Excellence Awards, sponsored by Dairy Field and the International
Dairy Foods Association, reinforced the themes of heritage, home, freshness
and indulgence.
This year’s best overall package design winner
was Shamrock Farms, which demonstrated a hometown advantage through its
heritage-inspired illustrations.
The Phoenix-based processor wanted rich illustrations
to help its new premium ice cream stand out from national brands. So
Shamrock celebrated its standing as Arizona’s hometown dairy by
decorating the new ice cream line with key destinations, themes and
attractions unique to the Grand Canyon State, reflecting the product
positioning: “Inspired by Arizona. Loved by Everyone.”
Each of Shamrock’s 56-ounce cartons portrays a
unique destination. Remaining true to Arizona’s Western heritage,
packaging features earth-tone, illustration-style postcards reminiscent of
the Old West. Postcards depict the theme or place the ice cream is named
after — Grand Butter Pecanyon, Rocky Route 66, Tombstone Roundup,
Caramelback Mountain and Snowbowl Vanilla. Roxie, the company’s
“spokescow,” is featured on the primary display panel wearing
apparel appropriate to the flavor theme. Side packaging features a postcard
from Roxie detailing her statewide travels.
The launch was so successful that Shamrock Farms
redesigned its pint line to match and introduced two new flavors, MonuMint
Chip Valley and Sabino Canyon Neapolitan.
Other winners:
Garelick Farms, Lynn, Mass., won best package
design for fluid milk with its Over the Moon milk, with traditional whole
and 2 percent milk background colors and appetizing graphics to illustrate
fresh, pure milk.
Sorrento Lactalis Inc., Buffalo, N.Y., won best
package design for cheese with its consumer-friendly 8-ounce fresh
mozzarella ball that’s vacuum-sealed to lock in freshness and
maintain shelf life.
Wells’ Dairy, Le Mars, Iowa, won best
package design for cultured dairy products for establishing and defining a
brand essence for its Blue Bunny brand of products. Consumer research found
the essence to be “Uncontained Delight,” and design of the
IncreDiples cup was to incorporate the essence into the new line of lowfat
yogurt-based snack dips.
WINNING PACKAGE REDESIGNS
For some dairy processors, a packaging redesign is an
optimal way to reintroduce a product in the marketplace.
Winners of the package redesign category of the IDFA
Achieving Excellence Awards took a successful design a step further,
introduced private label as a brand, updated an outdated package and shed
the commodity image.
This year’s best overall package redesign winner
was Shamrock Farms (also winner of the package design category), which
redesigned its single-serve mmmmilk line after seven years of success, a
taller silhouette and ergonomic design.
Shamrock’s new packaging features a
distinctively shaped silhouette and vertical milk splash that visually
elongates the 12-ounce bottle. The ergonomically enhanced bottle has a
shape that’s easier to grip and hold. New graphics continue to
feature the silver metallic, and additional metallic colors were added for
mmmmilkshake flavors.
Spokescow Roxie playfully interacts with the milk
splash on package, whether she’s snorkeling through caramel on Dulce
de Leche or promoting fitness on whole milk. A new cap and foil inner seal
provide a tamper-evident feature as well as a freshness barrier. Two
primary display panels allow for better visibility. The new package is also
driving vending sales.
“Since the launch of the new package we have
seen tremendous acceptance from both consumer and trade and continue to see
increases in sales and distribution,” says Shamrock spokesperson
Sandy Kelly. “Consumers are always telling us that they love the
colorful graphics, use of Roxie and the fact that the bottle is easier to
hold.”
Other winners:
Alto Dairy Cooperative, Waupun, Wis., won best
package redesign for cheese with a product redesign to move its private
label naturally aged cheddar nationwide under the premium Black Creek
brand.
Schoep’s Ice
Cream Co., Madison, Wis., won best package redesign for ice cream by
updating its superpremium Gilles brand line of frozen custard.
Schoep’s emphasized nationally known inclusions such as Moose Tracks
and regional flavors typically seen at custard stands.
Land O’Lakes, Arden Hills, Minn., won
best package redesign for combined dairy after redesigning its family of
products to distance itself from a commodity position and leveraging the
“maiden in the grass” corporate logo.
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