More than 48,400 attendees and 2,352 exhibitors participated in the 2014 PACK EXPO International that took place in Chicago this past November. On November 5, Jeff Lukas, National Sales for IML North America, presented as part of the Innovation Stage at McCormick Place in Chicago. During his presentation, Igniting Sales with Market-Leading Packaging, Jeff discussed how product packaging can create change in the marketplace. The type of change could be as simple as a company reinvigorating a tired brand or as dramatic as a company creating a new market where one did not exist before. The key take away – companies that are willing to lead by being the first to innovate with new packaging can realize tremendous benefits. “You don’t ignite sales by just striding water. You are going to be trapped in the water, trying not to drown. We are not talking about incremental changes but being a market leader.” “The risks of change are high. You will have equipment to change over, a new marketing message, a new shelf space configuration, and sales team to re-engage. It is expensive and risky to do anything different. However, if you do not change, the consequence is far more expensive.
Effective packaging can attract new customers and keep existing ones. Packaging promotes and positions a new brand. In short, packaging is a major factor in our purchases. During a typical 30 minute shopping trip, consumers are exposed to an average of 20,000 different products. Impulse purchases make up about 40% of consumer spending. And out of this statistic, 14% of the total impulse purchase are food items, with shoppers saying they are often drawn in by product appearance. Packaging drives one-third of consumers’ purchasing decisions. So food packaging is an important, some might say critical component in a food processor’s supply chain. So let’s look at packaging a bit more closely. What is the single most important product visual in a package? Color without a doubt. See chart below for a breakdown of color meanings and what each color evokes in consumers. In general, the color of a package should match the target market. For example, consider candy packaging – bright colors attract children’s eyes, so vibrant reds, bright blues and sunny yellows are often used. Green is often used for healthy products, since as a color green connotes nature and health. And of course, everyone knows the Coca-Cola red
This is the first of two articles focusing on key trends for food packaging moving into 2015. Aseptic packaging If you’ve noticed more soup and broth packaged in boxes instead of cans at the grocery store, you have noticed aseptic packaging. Aseptic packaging, the process in which a food product and its package is sterilized separately and then combined and sealed under a sterilized atmosphere, is one of the leading food packaging trends going into 2015. The $35.8 billion aseptic packaging market is predicted to experience nearly double digit growth,* due to consumers’ demands for chemical-free, and fresh, natural food and beverages. Much of the demand and growth will come from South/Southeast Asia and China, where growth is forecast at 11% a year and 3.5% a year, respectively.** In fact, DuPont Industries recently honored Parakh Agro Industries, in India with a DuPont Award for Packaging Innovation for its ultra-high-temperature milk pouches that keep milk fresh without refrigeration for up to 90 days and enable it to be consumed without first being boiled. *http://www.foodproductiondaily.com/Packaging/What-s-driving-growth-in-the-35.8bn-aseptic-packaging-market **http://www.packworld.com/package-feature/shelf-life/global-aseptic-packaging-forecast-grow-24-next-five-years Sustainability Sustainability is still a key trend for packaging, and the food packaging sector is no exception. Concern for the environment and how plastic packaging, in
Food Packaging Reflects an Image You pick up a can of Sam’s Choice Cola and you can’t help think that it will not taste very well. Is it the name, the can or the fact that you can buy about 4 cases for around $3? Yesterday I bought Athenos Hummus Original Flavor. Green ring on the lid with creamy hummus image. I also had to match this hockey game snack with the accompanying Athenos Original Flavor Pita Chips. The similarly colored bag has a jumbo sized chip on the front as it seems to whisper; eat me now. As the Hawks score a goal, I reach for inside the bag for the largest hummus holding chip I can find without looking. Good, a few remain, before I have to grab four or five together to piece a full dipping chip. The dip is in a wide enough container that allows a king sized dip without dropping any precious hummus. This is no regular dipping sauce here, this is hummus. I think that eating a full container is healthier than a small bag of Doritos. It is the Mediterranean diet. You can smell the Aegean Sea and hear the sounds of
Evolution of the Generic Brand Several years back, I remember the “generic” branding of cereal. I would make the early morning shuffle to the pantry and pull down a box of “Corn Flakes”. My enthusiasm, while not great at 6am, was much diminished after looking at this breakfast choice. An off white box with army font staring at you in black print, and the mouthwatering graphics…. Umm, none. I was generally the first to pry open the bag inside the box, only to see ¼ of the box filled with brown flakes. Occasionally, in the bowl and covered in milk, I would find the burnt flake. Was it caught in a machine or not a flake at all? Let’s just pull this out of the bowl and place it on the side. On an occasional weekend, sleepover at a friends or vacation, we would enjoy a sugar cereal. A box of Quisp, Quake or Lucky Charms would start the day off with a smile. Surrounding myself with a wall of cereal boxes as a breakfast fort as I read about the prize that I had already found in the first 30 seconds of the meal. Asking my brother to help
What the New Study Says About Consumer Dining Priorities As encouraging news arrives for manufacturers, customer concerns continue. For this reason, the food packaging and manufacturing industry stands at a unique place in the market place. John Burke, of the Food Packaging Institute, shares more of his opinions on the state of the industry and its distinguishing markets. As we saw in FPI’s study, things are looking rosier for food packaging. Burke points out specific realities of end-users who are dealing with economic troubles and what the industry’s future holds. “It’s not that our members are not affected by the recession,” Burke says. “If people stop going out to eat, then that would have major impact on us.” However, he says, consumers are mainly adjusting their food behaviors. “Basically what takes place (and consumer trends) is what makes us what I call recession-resistant.” Burke describes the new patterns of customer spending as “dining down.” Customers might dial back their visits to white linen tablecloth establishments and replace it with a single-use, take-out restaurants. Quick Casual, Quick Service restaurants have supplied a different kind of eating opportunity for the public, Burke says, and it marks steadfast output for the industry. In
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