Convenience Driving Trends in Fresh-Cut Packaging

Along with their hectic schedules, consumers want quick and healthy meal solutions for their families and are increasing the demand for on-the-go fare. The trend toward convenience – easy to pick up, purchase and eat – continues to drive innovative and yet responsible new product packaging solutions, leading to an array of fresh-cut produce choices now available at retail grocery stores. Take a walk through the produce department of your local store and you’ll notice less packaging made from film and more made from rigid plastic. Rigid packaging, along with a new innovative material, is helping make convenience possible while also providing opportunity for brand enhancement.

Beyond providing utility for the consumer, such as salad being packaged in a ready-to-eat or serve bowl, rigid packaging also increases performance. For example, rigid packaging is a good solution for prepared products such as cored pineapple, allowing the juice of the pineapple to be captured while eliminating leakage and building in tamper evidency. The stiffness and clarity of rigid packaging, compared to flexibles, also provides a better merchandising solution for cut produce.

In 2004, Newman’s Own Organics introduced a line of ready-to-eat certified organic salads. Taking note of the on-the-go schedule of today’s consumers, Newman’s Own Organics decided to package salads in rigid tubs instead of film bags. The tubs offered more in the way of versatility for consumers, who can pick up the salad after work, take the lid off when they get home and add salad dressing – allowing them to have a healthy meal for their family that is literally ready in seconds. The packages also are resealable and easy to store in refrigerators.

Differentiation

By finding new uses for rigid packaging in areas like fresh produce, retailers are tapping into a simple way to create differentiation at the point of sale – ultimately increasing the visibility of their brand.

As more and more produce companies and retailers join the rigid packaging trend for fresh-cut, however, there is a need to go beyond convenience for further differentiation. That’s where the material used to make the package can come into play.

Leading retailers and brand owners, like Newman’s Own Organics and Wild Oats Markets, are delivering the convenience of plastic packaging without environmental compromise by switching from a petroleum-based plastic to a corn-based one. By doing so, both companies strengthen the image of their natural and organic brands, demonstrate their commitment to the environment, enhance customer loyalty and ultimately increase sales.

Peter Meehan, CEO of Newman’s Own Organics, has confirmed that people really want to know how ingredients are grown and processed on the way to their grocers’ shelves. The same is true for how food is packaged. Consumers seem to feel better knowing their fresh produce comes in a container derived from naturally renewable ingredients rather than petroleum.

Recent research supports this view. According to a study published by The Consumer Network, when shoppers were asked about their packaging preferences, 90 percent said packaging attributes would influence them to switch brands. Furthermore, 63 percent of younger respondents said packaging needed to be more eco-friendly, as did 58 percent of older respondents, according to “What’s in Store 2005,” published by the International Dairy-Deli-Bake Association.

In addition, studies conducted by Grapentine Company in 2003 and 2004 found that a large group of consumers worldwide are interested in purchasing fresh food in nature-based packaging, with most sharing a willingness to pay extra for it. Of the more than 600 consumers surveyed in the United States, 41 percent rated the concept of nature-based packaging for fresh foods as “very desirable,” with more than 74 percent willing to pay at least 5 cents more per item.

Retail success of nature-based packaging has been solid as well. Since starting up distribution of their line of organic salads in nature-based clamshells in December 2004, Newman’s Own Organics has received a welcome reception from retailers. Newman’s Own organic salads are now available at Wild Oats, as well as several other regional and national chains. The company has seen a lot of excitement from consumers, who are glad to finally have an environmentally beneficial alternative to traditional plastic containers.

In addition, Wild Oats Markets recently reported that juice bars and deli sales, both using nature-based containers, are up 6 percent over last year.

Summary

Overall, the competitive retail market is more demanding than ever. Suppliers, retailers and brand owners are seeking innovative solutions for produce. Many are finding that a great first step is packaging their produce in rigid containers. Incorporating a nature-based material into produce packaging can further enhance the “freshness” of their brands and add even more “green” to the bottom line.

Lisa Owen is the global business leader, rigid packaging, for NatureWorks LLC.


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