Make it count

Forty-four years ago in America — a time when factories were dumping their waste products directly into rivers, gas station pumps were dispensing leaded gasoline, and dense smog was hanging over major cities — the first Earth Day took place (in the form of a demonstration with an estimated 20 million participants), and President Richard Nixon and Congress established the U.S. Environmental Protection Agency (EPA). Back then, however, the “green” movement largely centered on major cleanups and the most damaging environmental offenders; it had yet to go mainstream.

But over the past couple of decades, the push toward environmentally responsible practices picked up steam, and today the green movement is very much a part of mainstream America. The overall mindset is to minimize impacts to the environment, at both the organizational level and the individual level, in the name of sustainable development.

Consider the product

Many consumers now understand that the products available for purchase today are associated with some degree of environmental impact, too, and that the level of impact can differ dramatically from product to product. In a 2014 poll conducted for Boston-based Cone Communications, in fact, 77 percent of American food shoppers rated sustainability as a priority in deciding what to buy.

So sustainability most certainly should factor into any retailer discussion tied to store brand products. But how, exactly, could retailers make store brand products “greener”?

“Renewable ingredients, packaging and concentration are the big three,” contends Steve Berry, “The Green Guy” and founder of Auburn Hills, Mich.-based Greenblendz.

But retailers first need to understand that all products have an environmental footprint and then identify the areas in which they can achieve the greatest positive impact, says Dan Kelly, vice president of sales for Musco Family Olive Co., a Tracy, Calif.-based supplier of olives for retailers’ private brand programs and under its own brands.

“For example, the process of canning olives has historically used a large amount of water,” he says. “Musco Family Olive Co. has gone over the process with a critical ‘green’ eye and has dramatically reduced water use over the last several years, and is the only olive cannery that recycles 100 percent of our process water on-site in a unique closed-loop system.”

By homing in on the biggest impacts, retailers — directly or via their private brand suppliers’ efforts — will get the greatest return. But they need to revisit those processes “with that green eye” constantly, Kelly says, to realize continuous improvement and make a difference over time.

Speaking of continuous improvement, Moto Okawa, marketing manager for Diamond Wipes International Inc., a producer of branded and private label wet wipes headquartered in Chino, Calif., says his company believes the goal should be to improve sustainability in every stage of a product’s lifecycle — “from cradle to grave, and when and where possible, from cradle to cradle.” Retailers also should ensure the product provides ways for consumers to quickly and easily learn about or be reminded of the importance of making “more sustainable shopping decisions.”

And efforts directed toward carbon-footprint reductions certainly have the potential to make a big impact, suggests Mark Russell, director of business management for West Liberty, Iowa-based West Liberty Foods, a supplier of lunchmeats for retailers’ store brand programs and a “landfill-free” company.

Here, supply chain efficiencies can go a long way, says Martin Mayorga, president and cofounder of Mayorga Coffee, Rockville, Md.

“It’s beyond stickers and stories,” he stresses. “It’s about maximizing efficiencies,” whether it means using the optimal pack size or “digitizing correspondence with suppliers and vendors.”

Ultimately, the definition of a green or greener product is defined by each individual, says Paul Hertensen, CEO of B.O.V. Solutions, Hernando, Fla.

“But to me it means making something better whenever it is possible,” he says.

Hertensen points to his company’s Bag-On-Valve (B.O.V.) pressurized dispensing system as a good example of a green product.

“B.O.V.s are totally green with zero landfill impact, as they are 100 percent recyclable,” he explains. “Unlike aerosol products, B.O.V.s do not require any chemicals mixed in with the product in order for them to spray or to prevent them from going bad in the can.”

Consider the package

Speaking of recyclability, packaging represents another opportunity for retailers to green-up their store brand programs.

“One of the simplest changes is to move to recyclable and recycled content packaging,” Berry states, adding that recyclability remains a top priority among consumers and that his company offers bottles made from 100 percent post-consumer resin (PCR) content. “Advances in the resins make it possible to have up to 100 percent PCR in most bottles while still maintaining the ability to recycle. There is some movement towards flexible packaging, which also adds the convenience of use with resealing and less space when empty.”

Kelly adds packaging reductions to the list of meaningful packaging-related changes.

“It’s all about reducing the overall amount of materials and using materials that are sustainable,” he says, relaying that Musco Family Olive Co. uses 100 percent recyclable cans and packaging trays composed of 50 percent recycled cardboard. “Reducing materials is just as good for the consumer as it is for business; less materials in packaging means we can fill our trucks with more product and reduce overall trucks on the road.”

Russell agrees that packaging material reductions — such as trading in a rigid tray or tub for a flexible package or a recycled pressboard carton that boasts a small inner plastic pouch — can have a major positive impact. However, even though consumers are looking for recyclable or made-from-recycled-material options, they are not necessarily willing to pay more for them, he points out.

With a focus on material reductions prevalent in the wet wipes business, Diamond Wipes has been “actively promoting soft packs” in lieu of rigid containers such as canisters and tubs, Okawa notes.

“Refill pouches offer a value proposition to both conscientious and price-savvy shoppers,” he says. “Recyclable packaging is enticing, but not all shoppers have ready and easy access to recycling programs.”

Functionality and protection are all important, too, so any green-minded packaging tweaks need to consider that reality, Mayorga stresses.

“If using alternative materials and inks doesn’t compromise freshness and quality, then it should be pursued,” he says.

And retailers also need to understand that consumers differ greatly from one another when it comes to the value they place on packaging sustainability, explains Kent Ritzel, chief operating officer for the St. Louis-based design consultancy fredsparks. For some consumers, it’s critical to the purchase decision; for others, the only thing that matters is price. And many other consumers fall somewhere in between.

“The true answer is in the details; for example, the material from which the package is made, the proper level of design in the package itself — enough protection to get to its application without ‘overkill’ — the opportunity or process of recycling, the ink that’s used to print the package, etc.,” he says.

What’s more, some generally held packaging sustainability perceptions are simply incorrect, Ritzel points out. For example, although most people believe that paper grocery bags are environmentally preferable to plastic versions, the opposite is true.

“The overall recycling system is much better geared to deal with plastic bags, so they actually score better than paper bags,” he explains.

Say no to ‘greenwashing’

Unfortunately, not all product and packaging efforts billed as green are what they seem. The market is awash with considerable “greenwashing,” Ritzel explains.

“To actually have a real presence in the marketplace takes a broad corporate commitment,” he says, “which includes the total lifecycle of every element that comprises a company’s products. This includes a sensitivity [to] and/or assessment of raw materials, material processing, component manufacturing, assembly and packaging, distribution and purchasing, installation and use, maintenance and upgrading, and finally, incineration and landfill.”

Ritzel says his company can help retailers avoid greenwashing by developing sustainable strategies and solutions that allow them to work with their suppliers to make a truly positive impact. The company also can bring to retailers “measurable information” that allows them to show the results of their efforts in a transparent manner, Ritzel says.

Communicate the positives

Green-minded product and packaging initiatives are a positive for store brands. But they need to be communicated to consumers if they are to be part of the purchase decision.

If the green efforts apply to a store brand in total, not just to individual store brand products, the brand “story” is critical, Berry suggests.

“Make a commitment to carry a plan throughout the SKUs, and then announce it everywhere — on package, in store, social media,” he advises retailers.

And whether it’s for one product or a whole line, a little consumer education could have a positive impact, Hertensen suggests.

“An educated consumer is a much more dedicated and informed consumer and will shop where they learn about what they are purchasing,” he says. “This could be achieved with shelf talkers, videos, information handouts, in-store demonstrations, e-mails, Twitter and Internet blogs to those who sign up.”

And in educating consumers, give them the data they want at the point of purchase, Ritzel advises.

“The tough part is getting the attention of consumers when you’re looking to use sustainability as a differentiator,” he says. “In this case, the degree of competition may dictate to what extent the sustainability message can be shown. In most cases, some sort of highlighted section may work, but it’s always dependent upon the overall brand message, competitive scenario, etc.”

Hertensen points to Whole Foods, Earth Fare, The Fresh Market and Trader Joe’s as being among a large base of retailers attempting to educate shoppers in relation to greener store brand products. But other retailers lag behind. For example, one retailer using the B.O.V. system for certain store brand products currently does nothing to educate consumers about the eco-benefits of the non-aerosol format, he says.

Embrace transparency

Outside of green tweaks associated directly with a store brand product or product line, retailers should welcome the opportunity to communicate to consumers the sustainability efforts of key store brand suppliers, too. After all, how the product is produced is also important, and today’s consumers are demanding greater transparency here.

“Build relationships with companies [of which] you are proud,” Mayorga advises. “Have high standards for not only what they produce, but how they operate and their purpose. People want to know who grew, packaged and transported their food.”

By working with best-in-class suppliers, retailers will be able to create a brand and products consumers will believe in, he adds. And to enhance transparency, they could use their websites and social media to tell personal stories and share images and videos tied to production, and even bring a supplier to stores for a “meet and greet.”

Russell understands the hesitancy on retailers’ part to increase transparency, but stresses that they are missing opportunities because of it.

“Consumers today want transparency and ask to know where their products come from,” he says. “However, it is also a difficult proposition for the retailer since their brands are sold throughout the store, and they want to communicate a consistent message. I think it would be in retailers’ best interest to determine what is most important to them and then find suppliers that fit those ideals so the retailer can consistently call out sustainable benefits throughout the store.”

Kelly adds that many manufacturers would jump at the opportunity to collaborate with retailers in the name of sustainability and transparency.

“The first and foremost step would be to just simply start the conversation between manufacturer and retailer on how to collaborate to efficiently communicate the sustainability efforts of both.”

Do the right thing

Ultimately, sustainability-minded product and packaging changes — and marketing messages associated with them — will not be enough to gain and keep shopper loyalty, Okawa emphasizes. But they can be an important part of the overall store brand and banner strategy.

“The commitment to improved sustainability needs to be part of retailer’s store brand DNA [that also includes] enticing price points, excellent performance, beautiful design, etc.,” he says.

But retailers need to approach self-marketing on the green front with care — as Mayorga points out, today’s consumers already are inundated with marketing messages, and retailers and their suppliers should simply be doing the right thing — without going overboard in tooting their own horns.

“Too many companies see the concept of ‘being green’ as a marketing tool,” he says. “That is a major mistake. Being environmentally and socially conscientious [is necessary] to be competitive and to protect your own supply chain.

“Companies that genuinely understand this concept and believe in their decisions are the companies that succeed in capturing the passion and loyalty of conscientious consumers, 
Mayorga adds.”