MARCH 2016MARKET INSIGHTS

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PACKAGING

FOOD-FOCUSED Features

TWIN TECHNOLOGYTaisei Lamick, a specialist in liquid-packaging machinery and films, just released its first twin-version-liquid and paste-packaging machine, the Dangan G2. Planned for initial sale only in Japan, the new machine can simultaneously fill twin packages with ketchup and mustard, shampoo and conditioner, and so forth. The company has stated that its twin version machine yields comparable results to the 10-to-12 multirow machinery common in the United States and Europe but with much shorter changeover times than those machines and a more compact footprint. The machines are capable of producing a high-quality result because the system fills continually without stopping the liquid flow between seals. This creates pouches with virtually no air, allowing more liquid to be placed into each pouch.

MULTIFUNCTION TRAYIn response to Japanese consumers’ prioritization of convenience, cleanliness, shelf life, and good health as important elements of food packaging, Tokyo Foods Machinery (a subsidiary of global packaging supplier Multivac) recently introduced a CPET cook-in tray that incorporates a high-grade barrier which extends shelf life and has the ability to withstand temperatures up to 200°C. When consumers remove the lid for cooking, the ridged surface circulates heat and drains away excess oil from the food. The company also launched a cook-in hermetic vacuum skin pack designed to go in a convection oven—made from Teijin Dupont film.2

Japan is often recognized as a center for packaging innovation and technology,

with packaging experts partnering directly with brand owners to solve

challenging market needs and high consumer expectations. Recent innovation

priorities have targeted waste reduction, faster output speeds, space-saving

machines, and automated systems, with food manufacturers focusing primarily

on preventing contaminated products from reaching consumers. 1

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PACKAGING

DIFFERENTIATING Through Smart Packs

BETTERING BEERAnheuser-Busch leveraged IoT (Internet of Things) technology for the first time, using smart label packaging with paper and battery-operated LEDs that allow for unique, on-premise interactions with

consumers. The smart technology is featured on a special limited-edition bottle of Oculto Beer, tequila-infused, blue agave beer. According to Anheuser-Busch, the craft beer is packaged using metallic fiberboard, a first for beer in the United States. The cutting-edge, limited-edition bottle debuted in Miami at a company event and will be available at select Oculto events throughout 2016.

Anheuser-Busch collaborated with Inland Packaging to create the pressure-sensitive

labels that contain printed electronic pathways, paper batteries, microswitches, and LED lights. The switch is located where the thumb typically goes when holding a beer bottle; the pressure causes LED lights to shine through the eyes of a mask located on the bottle’s front for approximately three or four seconds. Other features include secret messages that become visible when the

bottle is cold. Consumers follow geotargeted prompts and scan images from their beer bottles to digitally “spin the bottle” and win prizes.4

PACKAGING PARTNERSHIPSConstantia Flexibles—packaging supplier to numerous multinational corporations and local market leaders in the food, pet food, pharmaceuticals, and beverage industries—recently announced a new partnership with ThinFilm Electronics to offer smart packaging solutions in the beverages market. The firms have agreed to jointly deliver pressure-sensitive labels based on Thinfilm’s NFC OpenSense technology to help drive increased consumer engagement and mobile marketing applications within the beverages industry. ThinFilm states that the partners are working to create key manufacturing and application processes for integrating NFC OpenSense technology into wine, spirit, and beverage labels as well as flexible packaging for consumer packaged goods (CPG).5

Smart packaging is undergoing tremendous growth within the industry, with

the sector expected to reach $39.7 billion by 2020.3 Although the term “smart

packaging” is often associated with technology, at its core, the intention of

smart packaging is to differentiate products and elevate brands though the

application of smart, experience-enhancing design principles.

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SUSTAINABILITY

REDUCING Food Waste

CREATIVE STRATEGIESChefs are increasingly joining in the nose-to-tail movement (i.e., cooking the whole animal) as well as the root-to-stem movement (i.e., using all the parts of a plant that are edible). New York–based Blue Hill chef,

Dan Barber, created a three-week pop-up restaurant where he and his cooks used stale bread, fish bones, the fibrous leftovers from vegetable juicers as well as “other stuff normally considered garbage,” turning them into $15-a-plate dishes.8

The purpose of the pop-up was to highlight food waste as others go hungry. One dish, the “Dumpster Dive Vegetable Salad,” combined bruised outer bok choy leaves and peelings from fennel, kohlrabi, and apples with a vinaigrette dressing of ground pistachios, tarragon sauce, and white froth made from the liquid found in chickpea cans. Smashed pulp from juice presses was dyed to a beef color by beet juice and placed on bread repurposed to serve as buns. Remnant

The estimated amount of food waste in the United States alone is 133 billion

pounds (31 percent of its food supply),6 a cost that is projected to increase in

coming years. Two consumer food-waste trends emerging this year include a

growing desire from consumers to understand the extent of discarded food

as well as how it’s measured. Global standards for accountable food-waste

measurement will be released early in 2016 by the World Resources Institute’s

Food Loss and Waste Protocols; however, the US government has also

committed to cut food waste in half by 2030 in collaboration with the private

sector and charitable organizations. Entrepreneurial efforts focusing on food

recovery are expected to rise with increased public-sector involvement.7

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SUSTAINABILITY

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noodles from pasta rollers were boiled and topped with a sauce made from monkfish tripe and smoked fish heads.9 Salad chain Sweetgreen collaborated with Blue Hill to create $8.60 salads made of broccoli leaf, romaine heart, carrot ribbon, arugula mix, roasted kale stems, broccoli stalks, cabbage cores, shaved Parmesan, spicy sunflower seeds, croutons, and pesto vinaigrette.10

Other contributors to the movement include produce distributor Baldor Specialty Foods, who created their SparCs distribution program, offering trims, tops, and peelings to chefs and food manufacturers. Regional supermarket chain Stop & Shop saved an estimated $100 million by reducing perishables loss while

also providing foodstuffs that were, on average, three days fresher; while Price Chopper focused on reducing

its bakery losses by $2 million while boosting sales by 3 percent.11

TRANSFORMING WASTEDecomposing food in landfills emits the greenhouse gas methane, a gas that is

80 times more potent than carbon dioxide. Currently, 4.5 percent of US greenhouse-gas emissions and 23 percent of the country’s methane emissions come from food waste.12 To use methane in a productive way, Purdue University and the West Lafayette Wastewater Treatment Plant collaborated to power the treatment plant using methane from the university’s food leftovers. Each week, scraps from 100,000-plus meals were ground into five tons of yack, a pulp with the consistency of cole slaw. The pulp was then broken down by an anaerobic digester into methane, which then powered two electric generators.13

INCREASED COMPOSTINGAn increasing number of cities in the United States have begun composting organic waste in an effort to reduce the cost and impact of food waste. In Illinois, Highland Park will become the second city in the state to offer curbside recycling of mixed organic waste in April 2016. The program began after a survey showed that more than half of the city’s 9,000 residents were interested in collecting and composting food waste if the cost wasn’t prohibitive. Oak Park, the first Illinois city with a composting program, began its efforts more than three years ago and currently diverts 2,300 pounds of organics out of the waste stream each week.14

Prince George County in Maryland also recently began a composting program. Food waste is collected from Whole Foods markets in Alexandria, Virginia, and Annapolis, Maryland, as well as the Smithsonian and National Geographic museums in Washington, DC, local public schools, nearby cities, the University of Maryland, John Hopkins, and George Washington University. The resulting compost sells for $12.50 a cubic yard, and the program counts the White House as one of its notable customers.15

SUPPLY CHAIN

CAGE-FREE Commitments

A CHALLENGING CHOICEAdhering to market demand, the majority of American egg

producers are now choosing cage-free systems when ordering new

chicken houses. Some farmers even provide roomier colony cages with chicken perches

and nesting areas. Although cost was an initial concern, eggs from large cage-free locations

only cost shoppers approximately 15 cents more per dozen, a price that consumers seem willing

to absorb. Unfortunately, because only 10 percent of chickens are currently living cage-free, companies committing to the switch cannot fulfill those promises immediately.17

RESTAURANT COMMITMENTSMcDonald’s has committed to the use of cage-free eggs for all its restaurants in the United States and Canada over the next 10 years. Each year, McDonald’s USA purchases approximately 2 billion eggs, and since 2011, more than 13 million of those eggs have been cage-free. Denny’s became the first family-dining

restaurant to commit to 100 percent cage-free eggs. With a goal of full compliance to the new policy for all its US restaurants by 2026, the chain serves more than 400 million eggs each year.18 The restaurant with the most accelerated timeline by far is The Wendy’s Company, who committed to 100 percent cage-free eggs in more than 400 US and Canada locations by 2020 as a signal of a forward step in the company’s overall animal-welfare program.19

The measure of how well a company’s supply chain treats animals is now

an attribute of concern to consumers. As a result, a growing number of

restaurants, grocery stories, and food-industry companies are committing to

cage-free eggs—one of the most significant investments the food industry has

made toward humane animal treatment and a commitment made even more

difficult given reductions in egg supply due to outbreaks of the bird flu.16

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MARKETING

MUSIC Movement

CONNECTING THROUGH MUSICAccording to the AAA Foundation for Traffic Safety, only 54 percent of Americans will get their driver’s license by age 18. This fact may be the reason behind why millennial and Gen Z consumers are less likely to buy or work on cars. To engage those future customers, oil brand Pennzoil partnered with Live Nation, Inc., a Los Angeles–based music, media, and events company, to create the Backseat Pass campaign.

Using the slogan “Motor Oil Reimagined,” the campaign included video, web, and experiential marketing elements that featured various recording artists. Each musical talent created unique variations of hit songs, and they were filmed as they performed in the back of a Pennzoil-branded Dodge Durango truck. The marketing campaign reflected a shift in Pennzoil’s targeting strategy, moving away from an “old-school gearhead” to focus on young, everyday drivers. Despite this, musicians were chosen to appeal to people ranging from the age of 17 to 40 in order to retain the brand’s current base of consumers.21

MESSAGES THAT MOVESouthern Comfort recently partnered with Danny McBride—actor, stand-up comedian, and long-time fan of the brand—on a full-length music video. Their goal was to make “ShottaSoCo” a word used in bars to order the liquor. The video shows McBride flying at 35,000 feet (without a plane) to meet a woman at a bar, shouting the catchphrase of “ShottaSoCo” as he glides and encourages everyone to “join in the party.” Wieden+Kennedy New York, the advertising agency behind the campaign, stated that the phrase was designed to be so catchy that it stuck in listeners’ heads. The agency’s creative director added that “music is an awesome way to do messaging. It is something that can move with people, rather than the type of engagement that requires you to go to a screen.”22

According to Nielson’s latest 360 music report, nearly 91 percent

of Americans listen to music more than 24 hours per week. As music

platforms become more accessible and integrated into people’s lives,

brands will have a significant opportunity in 2016 and beyond to engage

consumers by developing a music-based marketing strategy.20

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www.havigs.com

Credits1Hunter, J. (2016, January 5). Japan Pack: The Search for Perfection, Packaging World. Retrieved from http://www.packworld.com2Hunter, J. (2016, January 7). Designs Packed with Winning Features, Packaging South Asia. Retrieved from http://www.packagingsouthasia.com3Pierce, L. M. (2015, November 7). 10 Ways Smart Packaging Can Illuminate Your Brand, Packaging Digest. Retrieved from http://www.packagingdigest.com4Lingle, R. (2015, December 15). Smart Packaging Adds More Mystique to Oculto Beer, Packaging Digest. Retrieved from http://www.packagingdigest.com5Packaging-Business-Review.com. (2016, February 19). Thinfilm Partners With Constantia to Deliver Smart Packaging Solutions, Packaging Business Review. Retrieved from http://automationandtechnology.packaging-business-review.com 6Aubrey, A. (2015, October 8). It’s Time to Get Serious about Reducing Food Waste, Feds Say, NPR. Retrieved from http://www.npr.org 7Restaurant.org. (2015, December 17). 10 Food Waste Trends to Watch in 2016, National Restaurant Association. Retrieved from http://www.restaurant.org8Thorn, B. (2015, December 2015). Food Waste: The Big Food Issue for 2016, Nation’s Restaurant News. Retrieved from http://www.nrn.com9Wells, P. (2015, March 27). At the Chef Dan Barber’s Pop-Up, WastED, Bruised and Misshapen Bits are Dinner, New York Times. Retrieved from http://www.nytimes.com10Thorn, B. (2015, December 2015). Food Waste: The Big Food Issue for 2016, Nation’s Restaurant News. Retrieved from http://www.nrn.com11Ceres. (2016). Food Waste Whole Foods 2016, Ceres. Retrieved from https://www.ceres.org

12Ceres. (2016). Food Waste Whole Foods 2016, Ceres. Retrieved from https://www.ceres.org13Sustainable Indiana 2016. (n.d). Food Waste to Methane, Sustainable Indiana 2016. Retrieved from http://www.sustainableindiana2016.org14Tufano, L. (2015, October 15). Chicago Suburb Adds Curbside Food Waste Collection in 2016, Waste Dive. Retrieved from http://www.wastedive.com15Tufano, L. (2015, August 23). Maryland County Wants to Get in Ground Floor of Food Waste Business, Waste Dive. Retrieved from http://www.wastedive.com16Cheeseman, G. (2015, September 15). McDonald’s Commits to Cage-Free Eggs, Triple Pundit. Retrieved from http://www.triplepundit.com17Charles, D. (2016, January 15). Most U.S. Egg Producers Are Now Choosing Cage-Free Houses, NPR. Retrieved from http://www.nrp.org18Lynch, R. (2016, January 14). Denny’s Commits to Cage-Free Eggs By 2026 (Press Release), Denny’s. Retrieved from http://www.dennys.com19PRNewswire.com. (2016, January 4). Wendy’s Commits to 100% Cage-Free Eggs By 2020, Wendy’s. Retrieved from http://www.prnewswire.com 20Kirshbaum, J. (2016, January 5). 6 Top Music Marketing Trends for 2016, Hypebot. Retrieved from http://www.hypebot.com21Soat, M. (2016, January). Experiential Music Campaign Attracts Millennials, American Marketing Association. Retrieved from http://www.ama.org22Nudd, T. (2015, November 18). Danny McBride Soars in W+K’s Brilliantly Bizarre Music Video for Southern Comfort Directed by Jody Hill, AdWeek. Retrieved from http://www.adweek.com

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