FOR the MEAT INDUSTRY All U.S

SPECIAL REPORT

EXPLORE BRAND-BUILDING LABELS FOR VACUUM SKIN PACKAGES label is a complex and powerful tool for meat-industry marketers. Much more than a legal requirement, labels LABEL A can contain important nutritional information, ingredi- ents, cooking instructions, recipes and powerful brand mes- sages. Poorly marked or mislabeled packages can negatively impact product integrity and brand reputation. A single la- SOLUTIONS bel might cost just pennies, but mistakes can cost millions. Misbranding and undeclared allergens accounted for 38% of FOR THE MEAT INDUSTRY all U.S. meat recalls in 20171. Meat processors can’t afford to overlook any detail in the label content, design or production. The growth in case-ready meats presents a huge opportunity for processors to build brand preference through product, packaging and labeling. FMI’s Power of Meat 2018 study found shopper preference for manufacturer brands when buying fresh meat and poultry reached a study high of 30%, up from 12% in 2012. In the processed meats category, shopper preference for manufacturer brands was 44%, a record high. 1Source: MULTIVAC analysis of USDA Food Safety and Inspection 2017 Recall Data SPECIAL REPORT

for consumers3. Vacuum skin packaging (VSP) is a solution that is experienc- ing robust growth in the meat industry, with a key driver being retailer (and consumer) desire for a longer shelf life and better merchandising. Vacuum skin packaging is used to seal the product over its entire surface on a shape-retaining lower web or a ready- made tray using a special skin film. The upper web encloses the product tightly like a second skin. In the meat case, packages can be displayed verti- cally, horizontally, or even suspended because the film skin fixes the contents of the package and prevents any liquids in the product from escaping. “Vacuum skin packaging has really taken off in Europe, where per an- num growth is more than 10%,” says TRENDS CHANGING Growth in the sales of natural, or- Drew Lericos, marketing director for THE FACE OF LABELS ganic, grass-fed, hormone-free and an- MULTIVAC, a leading manufacturer atisfying the consumer’s desire for tibiotic-free products at the expense of of packaging equipment. “You see it Shealth and wellness, transparency, conventional meat provides further ev- everywhere. With growing consumer and convenience will be key as the idence of consumer desire for transpar- and retailer acceptance VSP will gain meat industry grows its share of the ency. While conventional meat sales and real traction here in North America in grocery budget. tonnage were flat over 2017, special pro- the coming years.” duction/raising claims saw dollar gains HEALTH AND WELLNESS of 4.8% and volume growth of 5.1%.2 LABELS TO BUILD YOUR BRAND Health and wellness is on the minds of Beyond the role of protecting the product, consumers. According to the Power of MISBRANDING packaging provides an opportunity to Meat 2018 study, when purchasing meat market meats at the point of sale. Labels and poultry, 30% of shoppers put “a lot AND UNDECLARED that inform and persuade consumers, of effort” into making nutritious and complying with the rules set forth by healthful choices, with an additional ALLERGENS the USDA Food Safety Inspection Service 46% giving it “some effort.” Labeling that ACCOUNTED FOR can also include recipes, claims, and includes additional dietary information product sourcing information. is an opportunity for meat suppliers to 38% OF ALL U.S. MEAT “Consumers make their decision on help consumers achieve their health and 1 whether or not to buy your product wellness goals. The top three specific RECALLS IN 2017. in seven seconds,” says Todd Fatino, callouts shoppers would like to see prom- vice president of Innovation, Phenix inently highlighted on meat packaging CONVENIENCE Label Co., a converter for Cargill Meat are protein, total fat and sodium. Pre-marinated and pre-seasoned meat Solutions. “You need to make an impact.” products are growing in popularity. In the Rob Wallace, a branding expert who TRANSPARENCY Power of Meat 2018 study, 21% of shoppers has worked with Johnsonville and In the 2016 Revolution Study by Label say they purchase these value-added meat Hannaford Brothers concurs. “I really Insight, 94% of consumers said it was im- products, up from 9% just two years ago. believe that packaging design adds val- portant to them that the brands and man- Convenience as well as consumer desire ue in the meat category,” says Wallace. ufacturers they buy from are transparent to try different flavor profiles are driving “A 2-pound chuck roast is just a chuck about what is in their food and how it’s growth in these products. roast, but when you put a label on it that made. Nearly eight in 10 said they would Meat packaging that is leakproof describes elements that are distinct, find value in having access to additional (68%) and keeps meat/poultry fresher unique and meaningful to the consum- in-depth product information. longer (55%) are the top considerations er, you add value.”

2Source: Nielsen, FCA, 52 weeks ending 11/25/2017 3FMI’s Power of Meat 2018 Wallace believes brands can have mate adhesion so the label will stand up sure sensitive (P/S) labels, linerless a tremendous impact in value-added through packing, shipping, and place- labels and paperboard sleeves. items because the return on invest- ment in the meat case and the consum- “Full wrap pressure sensitive la- ment is very high. “If you can convince er’s fridge or freezer,” says Fatino. bels and paperboard sleeves offer the consumers that the marinated meats, “Labeling has to be reliable and it can’t most real estate for messaging,” says kabobs and meatloaf they purchase be the process that slows the production MULTIVAC’s Mack. “Using all sides will be as good as if they did it them- line,” says Dan Mack, product market of the package is an advantage.” The selves, and worth the value-added cost, manager for MULTIVAC Labeling and biggest disadvantage of paperboard you can win,” he says. Printing. “It needs to run at least as effi- sleeves is higher cost. The material cost However, Wallace cautions against ciently as the packaging machine.” is significantly greater than the other trying to be too many things to too MULTIVAC’s L310 labeling machine, options and sleeve application is often many people. “It’s OK to customize by has the flexibility to handle both MAP manual and far slower than labeling, focusing around a specific eating occa- and vacuum skin packages. According reducing productivity. sion, a consumer profile or a mindset,” to Mack this labeler offers some unique The MULTIVAC L310 conveyor la- says Wallace. “Brands need to be cou- advantages, including precise label beler is expanding the creative options rageous enough to stand up for what placement, contour cut labels, adhesive for full wrap labeling. Fatino likes that they’re doing.” free zones and two-sided printing for it can apply shaped or die-cut labels. One of the unique challenges for the recipes or additional marketing com- “The linerless option is restricted to meat and poultry industry is the fact munication. A standby label dispenser rectangular straight cuts that have no that raw or marinated raw products is available as an option, ensuring zero die-cut shape to them. The L310 can aren’t usually visually appealing. To downtime for continuous production. use traditional pressure sensitive label counter that, Wallace often uses high- A secondary label dispenser is also materials, allowing marketers creative end food styling and photography. In his available for “spot” promotional labels. options for their meat products to stand experience, customers also want to see With any packaging equipment, out on shelf,” he says. both sides of the food product, and that’s technical support should always be a According to Mack, customers have possible with vacuum skin packages. key consideration. “With more than 80 commented that linerless labels can field service technicians throughout require additional maintenance to re- RELIABLE LABELING the United States, MULTIVAC takes re- move glue that builds up on the cutting To select a label suitable for cold, wet sponsibility for complete package per- blade. In addition, there can be prob- environments and irregularly shaped formance,” says Mack. lems with inconsistent label placement. products, converters such as Phenix “When you look at packages with Label need a complete understanding LABELING OPTIONS FOR linerless labels on a grocer’s shelf, it’s of the product to be packaged, includ- VACUUM SKIN PACKAGING common to see inconsistent label place- ing the size of the tray, the size and Currently, processors have three types ment,” says Mack. “A poorly placed la- shape of the meat product, the tem- of labels to choose from for their vac- bel can send the wrong impression to perature and humidity of the plant, uum skin packages: wraps with pres- the consumer.” and the colors, size and shape of the label. With all that information, the liner substrate, label stock and adhesives can REDUCING RISKS OF MISLABELING AND RECALL be selected. The most common label To reduce the risk of mislabeling, automated label verification systems use an optical reader material in the meat industry is film. to check the label and print data for errors. Systems are integrated for maximum efficiency It’s used when collagen is present or a and reliable results. more premium appearance is desired. “Adding an inspection station to MULTIVAC labeling systems is negligible compared to the Paper labels are also frequently used. cost of even a single recall incident,” says Dan Mack, product market manager, MULTIVAC Label problems, such as curling, Labeling and Printing. “Brand owners value the peace of mind resulting from 100% inspection.” wrinkling and purge contamination, create challenges for meat packers. MULTIVAC Visual Inspection Systems check labels for: According to Phenix Label’s Fatino, • Presence check (label and/or printing) when ensuring label adhesion, the ap- • Positioning (label and/or printing) plication process is just as important • OCR (text recognition) as selecting the right adhesive. • OCV (text verification) “You must have high primary tack • Barcode/matrix code (readability or content) MULTIVAC Visual for initial adhesion and a strong ulti- • Product Inspection (completeness, position) Inspection System SPECIAL REPORT

MULTIVAC L310 conveyor labeler

A New Full Wrap Solution To showcase the capabilities of the L310 conveyor labeler MULTIVAC partnered with UPM Raflatac on a 100% paper full wrap solution. “It’s quite a bit thicker and heavier than a traditional P/S label but still suitably pliable for the application,” says Lee Green, product manager at UPM Raflatac, one of the largest producers of pressure-sensitive label materials.

COMPARISON OF LABEL SOLUTIONS FOR VACUUM SKIN PACKAGES

P/S FULL WRAP (MULTIVAC L310) LINERLESS PAPERBOARD SLEEVE Wrap Types Available Full wrap Full wrap Full sleeve C-wrap C-wrap Top only Top only Top & side Top & side Top & two sides Top & two sides Bottom only Top and bottom Label Design Die-cut shapes Rectangular shapes Die-cut shapes Rounded edges Rounded edges Rectangular shapes Rectangular shapes Max Roll Size 360mm Diameter, 500mm wide 225 Diameter, 500mm wide N/A Machine Maintenance Low maintenance Moderate maintenance Various depending on manual or No blade cleaning Blade cleaning increases downtime automated Thermal Transfer Printer Yes Yes No Dual Label Capability–Full Wrap and Yes No No Traditional Top and/or Bottom Optional Blow-on Spot Promo Labels Yes No No Optional Integrated Inspection Systems Yes No No Substrate Suppliers Traditional label converters Proprietary–Limited label converters Multiple paperboard converters Cost Per Package $ $$ $$$ Accuracy of Label Placement/ High accuracy, Servo controlled (label Inconsistent accuracy, Pneumatic N/A Alignment end misalignment < 5 mm) controlled Set-up Time Quick set-up Lengthy set-up N/A Set-up/Changeover Tool-less Tools required N/A Hygienic Design Yes, IP 65 Rated No N/A

Contact your MULTIVAC trusted sales advisor for more information on labeling solutions. us.multivac.com