All wrapped up
Whether we are storing leftovers or packing a lunch, most of us rely on various food storage products just about every day. No kitchen is complete without a supply of aluminum foil, wax paper, plastic wrap and storage containers of various sizes. But during the recent tough economic times, many consumers reverted to frugal habits, buying fewer food storage products and reusing what they could.
According to a 2013 report from global market research firm Mintel, titled \"Food Storage – U.S.,\" food storage category sales changed minimally between 2007 and 2012. This prolonged \"low-to-no-growth environment\" has proved challenging for name brands and store brands alike. However, many retailers can expect to see store brand sales turn around if they put the focus on \"name brand or better\" quality products and effective product placement and promotion.
The it bag
Regardless of the product category, private label offerings usually have something to prove. In the case of food storage products, it is quality that comes under scrutiny.
\"Product quality and performance are more important than ever,\" says Howard Kirschenbaum, vice president of sales, Trinity Plastics, Armonk, N.Y. \"Consumers want to know that freshness is sealed in when they close a bag.\"
Retailers have a lot at stake when it comes to food storage bags, as store brands dominate with a dollar share of nearly 40 percent (see the table, p. 68). However strong their current hold, though, retailers should remain proactive about future opportunities for growth.
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\"Although food bags is a mature category, we still see private labels in the marketplace that are missing opportunities to build their brand by not taking advantage of upgrades that are available,\" says Fernando Valdez, marketing manager for Seguin, Texas-based Minigrip. \"To be national brand equivalent or better is really important with regard to closures, and overall bag performance with respect to leakage and tears.\"
Do
embrace technological advances to create food storage items that are national brand equivalent or better.
Dont
focus promotions only on \"back-to-school\" season – consider post-Christmas, post-Thanksgiving and other opportune times.
Some of those changes include using environmentally responsible materials. For example, retailers might want to explore food storage products that incorporate biodegradable plastics featuring \"green\" resins and materials, says Michael R., marketing vice president for a food storage supplier to major U.S. retailers that wishes to remain anonymous.
With regard to packaging trends, effective product identification remains a priority.
\"There is more color identification on the outside of the packaging to identify the type of bag, [for example,] red for storage, blue for freezer,\" Kirschenbaum explains. \"Store brands are doing a better job with this than national brands. This is one example of an existing trend that is becoming more pronounced.\"
Display everywhere
In addition to food storage bags, the other food storage subcategories command a sizable dollar share of the market. Not surprisingly, merchandising and promotion ideas and opportunities also tend to be similar across the different subcategories.
\"Off-shelf displays and exposing the product are key,\" Valdez says. \"National brands spend much more on advertising and promotions, so use every opportunity to market products within the store and upgrade product packaging to capture the attention of the consumers in order to generate a product trial.\"
Michael R. believes cross-promotion is incredibly successful when it comes to food and food storage, especially when the products are situated in food areas. His suggestions include placing a bread storage container merchandising display in the bakery and placing disposable three-pack plastic containers near the deli section.
And Kirschenbaum suggests that retailers could place pallet or shipper displays in the produce section during seasons when highly perishable or freezable produce is at attractive price points.
Do
invest in an attractive packaging design that differentiates store brand food storage items.
Dont
approach innovation in a vacuum; identify the features that your customers are seeking.
Sidestep mistakes
While merchandising and promotion opportunities can be found around nearly every corner, retailers should not lose sight of any potential for costly mistakes. However, many missteps can be avoided with a well-thought-out brand management strategy.
Generally speaking, retail store brand managers are label makers, not brand managers, says Michael R. As a result, he believes many store brands receive minimal professional stewardship, if any. His advice calls for store brands to diversify their look and their message.
And with regard to private label food storage products, in particular, retailers could do more to stand out versus the national brands.
\"It is important for [retailers] to understand their customers, what they want and what they need rather than just replicating what the national brand is doing all the time,\" Valdez points out. \"Instead, [retailers] can look at the buying habits of the consumers in order to develop products that will meet their needs and become true leaders in the category.\"
In the case of off-shelf seasonal displays, retailers are often so focused on the \"back-to-school\" season that they lose sight of other key times to promote their store brand food storage products.
\"For example, post-Christmas, the stores holiday items are gone; shelf space is available; and consumers have lots of leftovers,\" Kirschenbaum says. \"Too many retailers miss that boat. The same is true for Thanksgiving.\"
Other opportunities retailers could be missing include the printing of logos or seasonal graphics, especially on food storage bags.
\"National brands also do more corrugated free-standing displays of food contact bags than their store brand competitors,\" Kirschenbaum explains. \"Store brands should follow suit.\"
And just as the national brands invest heavily in packaging design and creativity, retailers should do the same, if not better.
\"Hire an agency and then trust them to execute,\" Michael R. says. \"Try to minimize micromanagement by your marketing departments middle managers [because] they are not brand managers.\"
Lead the way
The store brand food storage category is not without its unique challenges. A certain degree of interchangeability is prevalent among the segments – especially between aluminum foil and plastic wrap – making overall category growth challenging. However, the practicality and convenience they offer will continue to convince consumers of their value.
\"Historically, the trend has been and will continue to be toward convenience,\" Kirschenbaum says. \"Over the years, [food storage] bags have gone from fold-over to twist-tie to zipper to slider.\"
He believes each transition is a step up and that premium closures and bags with moving parts will continue to make headway.
\"With regard to reclosable bags, you will see a shift in innovation leadership,\" Valdez predicts. \"Instead of merely following the national brands for product upgrades, private labels will be much more proactive in launching innovations to assume a leadership role in the segment.\"
We also can anticipate seeing more private label usage of wide seals on their storage bags, Kirschenbaum explains.
\"Consumers like the look and feel of a wide seal and bags that feel beefy – meaning thick and, therefore, strong,\" he adds.
| Look whats new |
| Delhaize Americas DZA Brands repackaged its Home 360 Reclosable Storage Bags in a newly designed 50-count box. The quart-sized plastic bags feature double-color zippers. |
| New from Minneapolis-based Supervalu is Essential Everyday Aluminum Foil. The kosher-certified product retails in a dispenser box containing a roll that measures 25 square feet. The box also can be pressed on its sides to lock the roll. |
| Source: Mintels Global New Products Database |