Convenience Packaging For Consumers

Value-added packaging attracts harried shoppers and builds profits.

BY TRISHA J. WOOLDRIDGE

^^^^^^- ^^ *^y demand healthier choices in convenient packaging,

First there was bulk. Then the pendulum swung to packages, heralded as the wave of the future. But as customers began to complain about spoilage and lesser quality, the industry switched to more bulk displays. Now the pendulum is swinging yet again.

Enhanced packaging technology and a growing demand for convenience are the impetus behind the comeback of packaged produce. Since any type of advance can result in higher price points and because there is a finite amount of shelf space, experts stress the importance of balancing the retail desire to offer new products with space availability and customer willingness to pay premium prices. For now, consumer response to more convenient packaging options is positive.

"Consumers are getting more used to buying packaged produce than they were about 15 years ago," explains Chip Venable, eastern regional sales manager for agricultural packaging, Reynolds Packaging Corp., Richmond, VA. "It used to be everything was in bulk, but now they want packaging so they can just take it and go."

Mona Doyle, president of Consumer Network, Inc., Philadelphia, PA, agrees. "The interest in convenience is growing. The market is there, such as cooking produce in a bag or any way to make things user-friendly."

"It's part ofthe active lifestyle," says Bruce Knobeloch, vice president of marketing for River Ranch Fresh Foods, LLC, Salinas, CA. "The time every consumer has is becoming more restricted."

Convenience is extremely important to consumers, according to Carol Zweep, manager of packaging services for Guelph Food Tfechnology Centre, Guelph, ON,

she believes, "the evolving of packaging helps everything."

Microwavable steamed products are good examples of this trend, according to Lorri Koster, spokesperson for Mann Packaging Company, Inc., Salinas, CA. "Consumer response has been overwhelming. These are healthful side dishes that provide quick and easy meal solutions."

Another focus of contemporary packaging is portion control. Packaging the appropriate sizes for smaller families and individuals

Produce packaging is a cyciicai phenomenon.

adds value to produce offerings. Demand for single servings that can be eaten at work or even in the car is growing, notes Consumer Network's Doyle.

"The demographic is changing to smaller units," explains Kevin Stanger, vice president of sales and marketing for Wada Farms

Potatoes, Idaho Falls, ID. "You've got a lot of single or retired customers or working couples. They want something easy and just enough for one or two people."

"The demographic is changing to smaller units. You've got a lot Bl of single or retired customers or working couples. They want something easy and just enough for one I or two people."

Kevin Stanger Wada Farms

JBJ Distributors, based in Fullerton, CA, recently rolled out a line of 8-ounce packages of vegetables that can be microwaved, steamed or boiled, notes Alex Dupre, director of fresh-cut produce. The line includes squash, beans, white sweet potatoes, golden beets and a variety of seasonal items. "The 8-ounce size is a good portion for one person or it can be shared between two people," he explains. "It all comes down to improving the preparation time, especially for working couples."

Kurt Zuhlke and Associates, Inc., Bangor, PA, offers mircrowaveable com trays for two and three ears of corn. The company hopes to introduce a four pack in the near future.

"It steams inside through the microwave," Zuhlke says. "And it holds in the nutritional value and flavor."

Reynolds offers an array of packaging size options, Venable says. "In the smaller sizes, they come very small, such as a half pint of produce. You can put them in convenience stores or offer them as a snack pack."

On the other hand, with the growth of club stores, larger bulk packaging of up to four pounds is being requested. "What's interesting is that this is all coming from consumer requests," Stanger adds.

"It all boils down to time," says Jeanne Clark, market manager for Pactiv Corp., City of Industry, CA. "People want to eat better, but they don't always have the time to prepare healthful meals. Fresh vegetables in microwavable packaging gives consumers the option of eating healthfully without all the preparation time."

In addition to kits that combine protein and starch products with produce items, Clark lists asparagus, artichokes and green beans as commodities selling well in microwavable bags.

For example, in early October Mann introduced a traditional fresh-cut vegetable line with a steam-in bag feature. "The packaging was always microwavable, but a new sealing technique provides a pressure point so the bag is a true steamer," Koster notes. "We also offer a Ready, Set, Steam line, which features fresh vegetables in a steamer tray with a sauce component. The sauce is in a separate pouch under the traj'."

"People want to eat better, but they don't always have the time to prepare healthful meals. Fresh vegetables in microwavable packaging gives consumers the option of eating healthfully without all the preparation time."

Jeanne Ciari, Pactiv Corp.

According to Sarah Wangler, marketing manager for Sholl Group II, Inc., Eden Prairie, MN, Green Giant Fresh products include a variety of cut vegetables in microwavable bags. The brand also offers sweet potatoes cubes and fries — sweet potatoes are one of the "trendiest" vegetables in restaurants and at retail, she notes.

The Freshtables brand takes produce to a new level with SteamPerfcct pouches that include tucks of "chef-inspired sauces" that melt during the 2-minute cooking time.

"There's a fixed footprint in the produce department, you need to make room or every new item, and you many '' li not want to discontinue another item — so something must give."

Brian Cannon

Big Y Foods inc.

sealed with a breathable top tray that vents on its own.

Reynolds also offers convenient and cookable packaging for produce. Its product line is "dual-ovenable," meaning it can be put into either the microwave or the oven once the lid is removed. The MicroWare Supreme entree line comes in a variety of sizes and can have two or three compartments for cross-merchandising and marrying produce in the prepared food section of the store.

CHALLENGES

OF CONVENIENCE

The increase in options and SKUs can create retail challenges, the first of which is a limited amount of shelf space for displaying new products.

Brian Gannon, director of produce and floral for Big Y Foods Inc, based in Springfield, MA, explains, "There's a fixed footprint in the produce department. You need to make room for ever^' new item, and you many not want to discontinue another item — so something must give. For all the variety in produce, you've typically got 700-plus SKU items. Only the top 50 individual SKUs

are responsible for over 50 percent of the sales every week. Produce departments must hold onto space for these items that create sales each week."

"Stores often look at profit down to the square foot or even the square inch," says Reynolds' Venable. "You need to make sure you are doing something that consumers will buy."

Price is an important part of consumer buying patterns, with most conveniencepackaged items selling at premium price points. The issue retailers must struggle with is how much will a customer pay for how much convenience.

Guelph's Zweep believes, "People will pay for convenience. After working all day, they will go to the store and buy cooked chicken and a side dish of vegetables."

However, a level of convenience is expected for the premium price point, Gannon points out. While bagged salad costs significantly more than the bulk components, many consumers consider the trade-off in time saved not having to cut up a salad worth the extra price, so bagged salads are a big seller. On the other hand, he says, broc-

Photo courtesy of Mann Packaging Co., Inc.

coli and cauliflower do not sell as well when they are processed and packaged as they do when offered in bulk.

"There's not a huge difference between broccoli florets and caulifiower florets and simply running a knife through the bulk products at home," Gannon adds. The salability of pre-packaged convenience depends on the price and the convenience. If the price is too high for the convenience offered, an item will not sell as strongly.

Storage and type of display for the more conveniently packaged and processed items are other issues for retailers, according to Big Y's Gannon. "Whenever you have something such as broccoli or cauliflower, and a knife is

taken to it, it must be taken to a critical refirigeration temperature at below 41° F," he says.

The salability of

pre-packaged

convenience depends

on the price and the

convenience. If the

price is too high for

the convenience

offered, an item will

not sell as strongly.

Tb maintain this temperature, closed fixtures are the best choice. Not all produce sections have closed refrigeration cases and, if they do, the section is generally small. Open, low-island cases, are much more common, but it is a struggle to maintain critical temperatures on open cases.

PROMOTION TIPS

There is definitely a demand more packaged produce, and many believe just making consumers aware of products and their convenience will generate sales.

Mann's Koster says it is important to "educate store-level personnel about the technology and why it's worth the higher ring. Mann inserts a guide for store managers on our new steam products and also gives them VIP

coupons so they can take the product home and cook it with their own families."

For educating the customers, "Let vendors provide you with POP that calls out

that sauce is included in the packs," she explains. "Sometimes it's hard for the consumer to identify that value add, which helps justify the higher cost. Demos are also recommended to show the cooking technique and performance ofthe technology."

Most industry experts agree demonstrations and taste testings can be major selling points. "The best way to feature items is through tastings," Reynolds' Venable relates. "From a packaging perspective, you can't touch, smell, etc. your grape tomatoes. Have a "ISste Me' section, so you can get around the pick-up-and-touch mentality."

"Getting the product out to the consumer through demos and advertising is the best way to promote packaging innovations," says Zuhlke with Kurt Zuhlke and Associates, Inc. "Once a consumer gets of hold of our products, they're going to stick with them."

Highlighting these products will make a difference, Guelph's Zweep agrees. "You have to identify something as a new, convenient package. You must bring it to the attention ofthe consumer."

Retailers should stress that many of these consumer-friendly products are organic, adds JBJ's Dupre. "Just because our products are convenient doesn't mean they aren't wholesome and organic."

Trends show demand for more convenient packaging to suit the expanding demographic of time-pressed consumers will continue. Produce departments need to look at the growing list of options available and educate consumers about their benefits, pb



Packaged produce must vie for a limited amount of shelf space.

Packages of value-added produce attract time-pressed consumers.