Page 34 - Food & Drink Magazine April 2020

LABELLING & PACKAGING
Using software to change the hardware
Consumer awareness about the environmental impact of plastic, especially in food and beverage packaging, has reached a tipping point. Infor ANZ managing director Jarrod Kinchington says software will help manage the transition to cleaner options.
shelf space and may require new merchandising. And, since the glass packaging is see- through, the appearance of the product will be more important than ever.
New machinery for filling, sealing, and labelling the glass containers will also be required. These considerations must be incorporated into a cohesive strategy – with the profit- impact carefully analysed.
Customer Relationship Management solutions can help track communications with customers and support customer engagement, from marketing campaigns to focus groups and websites, which explain the company’s sustainability story.
Traceability and the farm-to- fork journey is also closely tied to sustainability and can be highlighted on the company website. The entire customer experience can be enriched by using online customer portals and ecommerce tools as well.
PRODUCT LIFECYCLE MANAGEMENT SOLUTIONS Product Lifecycle Management (PLM) solutions help manufacturers track and monitor the entire lifecycle of a
ALTHOUGH plastic provides a relatively inexpensive container that can protect taste and prolong the freshness of food, the shocking amount of unrecycled plastic packaging floating in oceans and washing onto beaches is driving public outcry and demand for changes.
For food and beverage manufacturers, there is now pressure to re-think packaging strategies, revise go-to-market plans, and forge new supply chain partners. Fortunately, modern software solutions can help manage the multiple factors, starting with R&D and ending with consumer feedback.
The shift away from plastic packaging is like the proverbial, “back to the drawing board” mandate with complex ramifications. As manufacturers begin migrating to containers
conveniences they’re willing to forego to help reduce the environmental footprint of their favourite foods and drinks.
Food and beverage manufacturers have a massive job ahead of them. Consumers expect change and are increasingly making selections based on the social responsibility of the brand.
Unilever recently conducted a study which reveals one-third of consumers now buy from brands based on their social and environmental impact.
The study points to an unprecedented opportunity for companies that lead the way in sustainability. More than one in five (21 per cent) of the people surveyed said they would actively choose brands if they made their sustainability credentials clearer on their
or compostable by 2025. Aldi announced a similar initiative and timeframe, to convert its packaging to reusable, recyclable or compostable materials in six years.
Coca-Cola plans to recycle one bottle or can for each one it sells by 2030. In 2018, PepsiCo made a $10 million investment in The Recycling Partnership (TRP) to launch “All In On Recycling,” an industry-wide challenge to raise $25 million to improve the recycling infrastructure.
PACKAGING RETHINK
Market-savvy manufacturers will begin transforming their packaging strategies to better align with expectations of consumers but rethinking packaging is no simple project.
For example, evolving from a plastic cup with a pull-top seal to a glass jar with a screw-on metal lid brings many issues into consideration, from weight of the container, convenience for the consumer, ease of shipping, and loss due to breakage. The glass jar/metal lid option is much heavier and less convenient, making the single-serving packaging for lunch boxes impractical.
So, how can the product be repackaged so that it still fills the grab-and-go gap? Some market research and engagement with consumers may be required to formulate a new strategy.
The heavier glass container will affect shipping costs and require changes to shipping containers to prevent breakage. The new glass containers will also take up different retail
“ Manufacturers must determine what premium consumers are willing to pay for alternative forms of packaging and what conveniences they’re willing to forego...”
made of more environment- friendly materials, a wide variety of factors will be impacted, from package sizes to labelling and shipping. Old standbys like glass and paper will see a resurgence and single-use plastics may soon be phased out.
Costs and margins will also be influenced and manufacturers must determine what premium consumers are willing to pay for alternative forms of packaging and what
packaging and in their marketing. This represents a potential untapped opportunity of over $1 trillion.
Unilever is embracing a sustainability strategy in several of its brands, like Hellmann’s and Ben & Jerry’s. Results show the brands aligned with sustainability messaging are growing 30 per cent faster than the rest of the business.
Kraft Heinz announced its plans to make 100 per cent of its packaging recyclable, reusable
34 | Food&Drink business | April 2020 | www.foodanddrinkbusiness.com.au