Waste Not
Retailers could take a number of steps to reduce the amount of packaging used for store brand products — while still providing adequate protection for the products.
Packaging waste — or the reduction thereof — is a critical part of many companies' sustainability initiatives. Progressive Grocer's Store Brands asked several packaging experts what retailers could do to boost efforts here on the store brand side. Read on for Part One of our "virtual roundtable," which includes insights from Danny Bolstad, director of R&D at Siloam Springs, Ark.-based Aliens Inc.; Suley Muratoglu, vice president of marketing and product management for Tetra Pak, Vernon Hills, III.; Don Ryel, vice president of the product branding business team at FLEXcon, Spencer, Mass.; and Sabina Saksena, managing director with New York-based PricewaterhouseCoopers' (PwC) PRTM management consulting firm. Part Two will run in our November issue.
PG's Store Brands: Packaging reductions related to store brand products are one way retailers can show a commitment to sustainability. What categories should retailers start with, and why?
Suley Muratoglu: It is a fact that sustainability-related actions and programs bring value to business overall. That said, sustainable packaging efforts can be made for food and non-food items with similar benefits to retailers. However, what we see and follow at Tetra Pak — a company that has been in the food packaging business for 60 years — is that although packaging reductions are important, they need to happen without compromises on quality and protection of the product, especially when it comes to food products.
Don Ryel: FLEXcon recommends retailers start with non-perishable foods and, perhaps more specifically, the condiments category. These products are typically packaged in glass and PET containers. In the non-food area, FLEXcon recommends retailers start in the personal care/ hygiene products category.
Danny Bolstad: Recyclable steel, which is the most widely used repurposed material, can be sustainable even before reaching retailers. As an example, many canning facilities manufacture new cans from stripped and recycled steel. In terms of casing and shipping, packaging should be at the forefront of every manufacturer's sustainability plan. By reducing the use of cardboard and wrapping, distributors and retailers — and, ultimately, consumers — are left with less waste.
PG's Store Brands: How could retailers ensure product integrity and product safety are not adversely impacted?
Muratoglu: The main reason why packaging exists in the first place is to protect its contents. There is a balance here that needs to be found.
Retailers should be asking for that balance from their packaging suppliers. Thoughtful packaging suppliers conduct stringent integrity and product safety tests and other forms of due diligence — that's really the supplier's fundamental responsibility and shouldn't be a cost passed on to the retailer.
Ryle:Many suppliers of PET containers are experimenting with reductions in container wall thickness as an example of how to reduce overall container packaging. FLEXcon has a broad range of labeling and branding materials that are appropriate for decorating these container surfaces and can recommend product solutions that help private brand retailers reduce their overall packaging footprint.
To ensure product integrity and product safety are not compromised, retailers can work with packaging providers who are members of the governing industry associations such as IoPP (Institute of Packaging Professionals) and label providers who are members of organizations such as TLMI (Tag and Label Manufacturers Institute). These industry associations help to set standards that member companies and their suppliers can use to ensure consistency and reproducibility. Supply chain label providers and their suppliers can recommend testing protocol and perhaps perform some of the tests themselves to provide insight into performance.
Sabina Saksena: Many studies show that both under-packaging and over-packaging can detract from product value, sustainability impact and business economics. Assessing what and how much packaging to reduce depends on meticulous and careful evaluation of the role and function of each level of packaging in the supply chain. Three steps that retailers can take include:
1. Set up a cross-functional team, which should consist of representatives from category merchants, marketing, store operations, supplychain/logistics, finance, supplier/packaging manufacturer, R&D, IT and compliance/legal, as well as potentially an external expert.
2. Select the right product for testing, and starting small can be advantageous. Evaluating the role and function of each level of packaging per store brand is a good starting point. This process can be informed, in part, by what national brands or other retailers have done in these categories. Defining metrics and related tests for product performance, safety and integrity linked to each layer of packaging is also crucial.
3. Establish three parallel, yet linked testing initiatives for success: product performance, packaging performance and sustainability impact. And these must be done multiple times across packaging levels and value-add points in the supply chain.
Several best practices and category examples exist, which can be adapted for a quick start to achieve some immediate successes. An excellent starting point might be the Consumer Goods Forum's Global Packaging Project (GPP), which engages several leading global retailers and CPG companies to define metrics and pilots.