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Consumerinfluence isdriving candycompanies tooffer packagingwith a smallerenvironmentalfootprint, whichwhen executed,can improvebrand perception,loyalty anddifferentiation.

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STOCKING CANDY AND SNACKS packaged insustainable materials offers retailers a point ofdifferentiation as well as a means to improveconsumer perception and loyalty. In today’smarket, sustainability is becoming increasinglynecessary to stay competitive, sources say.

Consumers, says Victor Bell, president ofEnvironmental Packaging International Corp.,are playing a part in driving companies to usesustainable packaging. He explains grassrootsefforts have made a significant push againstwaste and have led to more companiesinvestigating materials that are plant-based,renewable or include a greater amount ofrecycled content.

James Taylor, business developmentmanager of sustainability for Printpack, Inc.,agrees, saying consumers are key drivers forstocking more products made with sustainablepackaging. “There’s an increased awareness.Consumer culture in general is demandingproducts that minimize environmental impact,”he says.

There are three things consumers look forwhen it comes to sustainability, he tells Candy &Snack TODAY: Is it recyclable; does it haverecycled content; and is it reusable?

Packaging is a company’s “first line ofdefense,” Taylor says, adding: “To buyers, thismeans producers of products are going to drivesustainable attributes, and the most visible formis packaging.”

Daniel Butler, vice-president of retailoperations for the National Retail Federationand head of the group’s sustainable retailingconsortium, says for consumers, the waysuppliers package products can show howprogressive they are — that they are evolvingwith the times.

How suppliers brand themselves isimportant, and that can come across inpackaging, he says. Further, sustainablepackaging can be a point of differentiation. “It’sa story that builds on itself,” Butler says, assuppliers showcase what’s new and adapt toconsumers’ evolving tastes.

Deborah Schimberg, president of gumsupplier Verve, Inc., says it’s importantcompanies work to employ sustainablepackaging to be as efficient as possible withresources. Further, she says: “More and moreconsumers are looking for companies that aremaking that effort, and they’re looking forproducts that embody those values.”

Packaging is a point of differentiation forthe company and consumers compliment theeffort. It also builds brand identification, shesays. “Our brand identification is retro-chicpackaging designs, natural ingredients andenvironmental commitments, which help buildbrand loyalty.”

The company’s gum packs in biodegradablerecycled cardboard boxes, and its variety packsare bagged in cellophane, which is traditionallymade with regenerated cellulose from plantmaterial. “That’s a considerable expense, but wedo that because it’s biodegradable,” Schimbergsays.

Consumers have responded to Funley’sDelicious, LLC’s sustainable packaging, saysAshley Mendel, co-founder and COO. Thecompany receives emails asking questions aboutthe packaging and giving accolades for using100 percent paperboard. “It’s obvious it hasbecome more important to them,” Mendelsays, adding it’s critical the company falls in linewith what consumers care about.

While she’s not sure sustainable packaging

BrandingThroughSustainablePackaging

would drive a consumer to pick one productinstead of another, she says it does help alignconsumers with the brand. “I don’t think itmakes a literal decision difference. It’s moreabout what you stand for as a brand and as acompany,” Mendel says.

Cathy Knowles, sourcing manager, supplychain and operations for Clif Bar & Co., says thecompany’s sustainability initiatives help drivecredibility, and customers say they appreciatethe efforts. Further, Knowles claims the programhas improved consumer loyalty.

Also, the steps the company has taken toimprove the sustainability of its packaging havepaid off for retailers: “We have eliminatedshrink-wrap entirely from our packaging andshipping operations, which reduces the amountof waste our retailers have to dispose of orrecycle,” Knowles says.

Sustainability Benefits RetailersBell says U.S. retailers are becoming theregulators of sustainable packaging. UsingWalmart Stores, Inc. as his primary example, hesays the company is requiring every supplier toprovide it with data on all packaging systems,which it does through its Scorecard — ameasurement tool used to evaluate suppliers’packaging relative to that of other companies.“Walmart has policies for major suppliers, askingthem to improve, and has transmitted its carbongoals to its supply base,” he summarizes.

This has put pressure on suppliers to offersustainable packaging. The initiative alsoexamines packaging-to-product ratio and cubeutilization, which minimizes shipping costs andcarbon use, especially when dealing withimported goods, he says.

Retailers are playing a huge role in thesustainability effort, agrees Minal Mistry, projectmanager, Sustainable Packaging Coalition (SPC),part of the non-profit institute GreenBlue. Hegives a nod to Walmart, which moves a greatdeal of product and can thereby requiresuppliers to adapt. But it’s not just Walmart, hepoints out. Mistry says other large retailers, suchas Carrefour in Europe, are requiring suppliers to

produce sustainable items. “Retailers have astake in how the product is perceived. Generallyconsumers don’t buy from Procter & GambleCo., the relationship is through the retailer,”Mistry explains.

Butler says retailers are looking at everythingthey can do in their stores to reduce theirimpact on the environment. “When younegotiate for a product you pay for everyfeature and that can drive up the cost of goods,”he notes.

When talking to buyers, Mendel, of Funley’s,says the company addresses its sustainablepackaging. “It’s one of our selling points,” shesays, and that information is on sell sheets. “Itoften starts the conversation with buyers.They’re happy we’re falling in line with what iscared about,” she says, adding retailers seem tocare about those initiatives a lot.

Clif Bar’s Knowles says the companyundertook its initiatives to help meet itsenvironmental goals and save money. Further, ithelps differentiate the company, she says.

As part of the transition to sustainablepackaging, Knowles says the company had todevelop new sell sheets and retailers had toupdate ordering and inventory systems.Additionally, she says in many cases thecompany’s efforts reduced costs and wastesthrough its system all the way down toconsumers.

Another benefit to retailers, Knowles says isnew adjustable display trays that can beexpanded or reduced in width based on howmuch product is sold to keep shelves looking fullbetween stocking visits. Clif also has a universalshipper with header cards that can be switcheddepending on the contents. “Our retailers like itbecause it’s standardized, making it easier forthem to set schematics,” she says.

In grocery, NRF’s Butler says packaging isscrutinized down to the SKU level. How productsare packaged conveys an image that these are“smarter products” to consumers.

“It goes back to how customers respond.And the end result is we sell more products, plusreduce the carbon footprint,” Butler says,

‘To get moreinto sustainablepackaging takesa huge commitmentthroughout thewhole supplychain.’BOB HEBERTC-P Flexible Packaging

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adding when suppliers repackage a product,they can educate consumers on how it hasimproved.

Confectionery Companies Go GreenerIn 2010, The Hershey Co. redesigned thepackaging for Reese’s Pieces and Bites, YorkBites, Skor Bites and Oh Henry! in the Canadianmarket. Without changing the amount of candyper pack, the company reduced the pack sizeand included callouts to inform consumers ofthe change, according to the company.

Plastic film was reduced by between eightand 14 percent on standup reclosable pouches,which increased the number of cases that could

fit on a pallet and increased distributionefficiencies, according to Hershey. As a result,the company can ship the same volume on1,700 fewer pallets annually — a 40 percentpallet cube reduction — which reduces thenumber of truckloads by 40 each year andresults in less fuel used, lowering greenhousegas emissions.

Jeff Beckman, company spokesperson, says:“It also gives retailers ‘back of the house’efficiencies. He adds: “Our packaging efforts arepart of a broader array of initiatives to helpprotect the environment, which also includessustainable product design, sustainable sourcinginitiatives and efforts to improve the efficiency ofour operations.”

He says while consumers noticed thechange in bag size, they did not react negatively.Instead, they saw the smaller bags as morepractical. “Reducing the bag sizes across theentire Hershey’s hand-to-mouth lineup changesthe entire visual landscape,” the company says,and the size differences were obscured whencompared with competitive products in the set.

“We are confident that the callouts on thepackaging are appealing to the manyconsumers who appreciate companies that arecommitted to corporate social responsibility,”Beckman says.

In addition to on-pack callouts, Beckmansays the company communicates its packagingsustainability efforts through corporateresponsibility reports, ongoing dialogue withenvironmental NGOs, and on its website.

Funley’s Stix In The Mud are packaged inrecycled material despite the sacrifices:“Recycled board isn’t as bright, it doesn’t makethe packaging ‘pop,’ but frankly that doesn’tmatter to us,” Mendel says.

“We made our boxes smaller two years agofor efficiency and spent a lot of money to dothat. It was complicated, but in the end it wasthe best business decision. Boxes take up lessroom, it’s more efficient and ships more perpallet. It ends up saving us money and it’s betterfor the environment,” Mendel says.

Christophe Van Riet, owner of Belgium’sChocolate Source, Inc., says the Dolfin S.A.Belgian Chocolate products his companyimports use as few non-recyclable elements aspossible. Dolfin uses materials with simplecomposition that can be easily sorted andrecycled, such as carton paper and aluminumfoil, he says. Further, Van Riet says Dolfin’s paperproducts are endorsed by the Forest StewardshipCouncil, which identifies products that aresourced from forests managed to itsenvironmental, social and economic standards.

He says Dolfin is part of Fost Plus, a Belgianequivalent of Germany’s Grüne Punkt, a system

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SUSTAINABILITY: WHAT IT MEANSTO PACKAGING

IN TERMS OF PACKAGING, sustainability can be defined as how materials are used,converted and what happens to them when they’re discarded, according to MinalMistry, project manager, Sustainable Packaging Coalition (SPC), part of the non-profit institute GreenBlue.

He says there are many strategies companies are using to work towardsustainability in packaging. Among them are using less materials in packs; changingthe packaging format, such as shipping in bulk to reduce space used in transit; andemploying biobased materials that can offset the carbon emissions from fossil fuelsused in production.

However, there are considerations that must be taken into account when usingany of these strategies. Mistry says though lightweighting packaging can reduce alot of materials, there is a point at which it does more harm than good. “If youlightweight a box too much you can’t stack it because it crushes the product.”Continuing, he says this means vehicles can’t be filled to the same capacity andmore trucks are needed to ship the products.

“If there are negatives within sustainable packaging, they often result asunintended consequences,” Mistry clarifies, adding when an action is taken tocorrect one issue, sometimes another unseen issue arises. “Hidden tradeoffs andburden shifting are pitfalls if a holistic lifecycle view is not taken for implementingsustainability strategies.”

Sustainability has become part of what’s being called a company’s triple bottomline, which consists of environmental resource protection, economic prosperity andcontinuity of business, and social well-being, according to James Taylor, businessdevelopment manager-sustainability for Printpack, Inc.

Taylor says with packaging, it’s a balance of performance and cost with theobvious purpose being to protect the product through its shelf life. “It’s thecompeting requirements of cost, performance and sustainability that influence thedegree to which you can adopt sustainable materials,” he explains.

Bob Hebert, vice-president of sales for C-P Flexible Packaging, contends thedemand for sustainable packaging is being driven by different players in the market.He says suppliers are making sustainability a priority to make better use ofresources, and retailer initiatives have trickled down through the supply chain,which impacts manufacturers, packaging suppliers and even the companies thatsupply materials to the pack suppliers.

“Protecting the environment is important to people these days, so if you’re notdoing it there’s a negativity which might preclude you from selling products in themarketplace,” he claims.

He says the success of developments in sustainable packaging are measured byfunctionality, sustainability, performance, and most of all, consumer acceptance.

devised by producers and distributors tocollect waste packaging directly from privatehouseholds. The system is a direct result ofthe country’s 1991 Packaging Ordinance,which makes owners and generators ofwaste responsible for waste avoidance,recovery and disposal.

At retail, Van Riet says: “There’s been abacklash to excessive packaging,” notingsmaller packages are appreciated byretailers. When shipping product, Van Rietsays the company uses recyclable air-filledplastic bags. “We don’t want to bring ingoods that are overly packaged. It

doesn’t make sense because it strainsshipping. You can ship more product ifthere’s less waste,” he says.

While producing products in moresustainable packaging can have a positiveimpact on a supplier’s bottom line, BobHebert, vice-president of sales for C-PFlexible Packaging, says many are notnecessarily switching to save money. “Thereare cost savings over time in some places,but you can’t make a broad statement that ityields savings overall,” he says, noting: “Thetrue driver is good corporate governance. If

you’re going to be a good corporatecitizen that’s the right thing to do.

“To get more intosustainable packaging takes ahuge commitment throughoutthe whole supply chain,” Hebertcontinues, noting the

manufacturer and its suppliersneed to undertake the initiative

together. “We cannot be sustainablewithout our suppliers being committed to

the program and our goal.” CST

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‘Consumerculture ingeneral isdemandingproducts thatminimizeenvironmentalimpact.’JAMES TAYLORPrintpack, Inc.

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