Educate the consumer
While stores are still fully stocked with cans and jars, more and more aseptic packaging options are popping up on shelves, under both national and store brands. However, when compared to the rest of the world, North America is seeing a healthy but below-average rate in demand for aseptic packaging, states "World Aseptic Packaging," a March 2012 report from The Freedonia Group, Cleveland.
Two factors contribute to this below-average demand, Freedonia reports. One is the comparatively higher demand in developing countries that lack a cold supply chain infrastructure. The other is the comparatively high demand in developed countries that have smaller household refrigeration capacity, making aseptic packaging a much more practical solution for storing perishable products such as milk.
But aseptic packaging can present retailers with a wide range of cost advantages over traditional packaging when it comes to shipping, storing and shelving food products. How then could retailers convince North American consumers to take advantage of this packaging option more often? It all comes down to educating the consumer.
A healthful option
"Retailers should really focus on educating consumers on what aseptic packaging is and how the processing not only extends the shelf life of the product, but also sterilizes the package and its contents," states Jeff McClelland, owner of Fontana, Calif.-based California Aseptic Beverages.
Sal Pellingra, vice president of innovation at Ampac, Cincinnati, agrees.
"This packaging really provides consumers with some great health benefits, but I dont think consumers realize what those are," he says. "With consumers increasingly eating fewer processed foods, this packaging has a lot to offer retailers."
For example, aseptic packaging ties in nicely with the trend of "clean labeling," where the ingredient lists are short and the ingredients are easily identifiable, Pellingra states. The reason? Most of the time no preservatives need to be used.
Additionally, consumers who are worried about BPA in can linings might be convinced to purchase products sold in aseptic packages if messaging makes it clear that those packages are BPA-free, states Esther Palevsky, an analyst for The Freedonia Group.
A sustainable option
Besides educating consumers on the health benefits associated with aseptic packaging, retailers might also want to point out that aseptic packaging is a sustainable option for the "green" consumer.
Aseptic packages typically use less packaging material than other traditional packaging formats, which translates into less energy to produce the package and less material going into a landfill if the consumer doesnt recycle it, Pellingra says.
They also are lighter in weight than many other packaging options, which results either in more product shipped per load or in less fuel for transport, Palevsky states. Additionally, aseptic packages can be shipped flat, resulting in reduced space requirements for both shipping and storage, she adds.
Attracting green consumers should be of particular importance to retailers because their numbers are growing. Data from "Environmental Research 2011," a survey from Vernon Hills, Ill.-based Tetra Pak Inc., show that 88 percent of consumers in 10 countries express a preference or strong preference for products in recyclable packaging.
"As consumers expand their knowledge on issues pertaining to sustainability, there is a growing sense of responsibility when it comes to their purchases," states Suley Muratoglu, vice president of marketing and product development for Tetra Pak. "In addition, consumers increasingly believe that businesses should take responsibility in environmental issues and reduce their impact on the environment."
Educating the consumer on all of these benefits provided by aseptic packaging could certainly help to win over new loyal customers to store brand products, but retailers might also want to educate themselves on how aseptic packaging is perceived by consumers.
A relevant and premium option
Consumers often perceive aseptic packaging as a premium packaging option, Palevsky states. That reality means retailers could target upscale demographics and charge higher prices for their products, she adds. For example, aseptic packages in the form of spouted pouches are popular in the baby food aisle and often sell for twice the price of baby food marketed in traditional glass jars, says Robert Reinders, president of Performance Packaging of Nevada, Las Vegas.
When it comes to millennials, aseptic packages are perceived as being a newer, more relevant option than traditional packaging options, Pellingra says, especially when it comes to pouches. And, these younger consumers are not brand-loyal like their parents or their grandparents, Muratoglu adds, meaning a huge group of shoppers is milling the aisles, reading labels and choosing products based on what is attractive and offers a high value, rather than making decisions based on television advertising or by habit.
"Retailers might assume that just because an offering is aseptic that it will expand the category," says Joe Arends, marketing manager for Leahy-IFP in Glenview, Ill. "Not so. Consumers want product benefits in addition to packaging benefits; they want real value."
And just because a retailer offers aseptic packaging doesnt mean that it can then skimp on design; the consumer still buys with her eyes, he adds.
Beautiful graphics, interesting shapes
One way to attract the consumer to aseptic options is with a powerful billboard display of store brand products on the shelf.
"Leveraging the power of space and product imagery is a core component to differentiating store brands," Muratoglu states. "Because products are tightly packed and always facing the consumer, packages that create an eye-catching shelf impact can help revitalize a brand image and create a unique product concept."
Unfortunately, all too often, store brand graphics dont shine with the same vibrancy as the national brands, McClelland adds. Instead of having that crisp look, they have an almost foggy quality that drives the consumer away, he says.
Poor design coupled with low prices is the perfect recipe for store brand disaster.
"The biggest mistake I witness is when the store brand comes into a hot segment and prices their product too far below the branded product next to it," Reinders says.
By pricing their products too far below the national brands, retailers could be sending the wrong message to consumers: that their product or their package is inferior in some way, he adds.
But design means more than just the graphics on the package; it also refers to the shape of the aseptic package. Besides rectangular cartons, aseptic packages can be made into shaped cartons and pouches and can include a variety of closures.
"Packaging can differentiate a store brand from a national brand, but the retailer has to want to offer the consumer something different; it wont work if the retailer only uses me-too formats," Pellingra says. "Retailers should ask themselves: How do I create a difference between my packaging and the packaging thats already out there?"
To emphasize his point, he gives the example of a pet food company that created a retort shaped pouch for cat food. The pouch was designed so the ears of a cat were incorporated into the shape of the pouch itself. During the time period when this pet food company was using these shaped pouches, sales increased dramatically, more than 15 percent. Later, when the cat ears were removed, sales dipped slightly, but the company retained the vast majority of its new customers.
Retailers could come up with a similar idea when discussing aseptic packaging for their store brands, he says.
While the United States is having a harder time accepting aseptic packaging, when compared to most other parts of the world, it is definitely catching up, McClelland says.
"I really believe that aseptic packaging is the future of packaging," he states.