Corrugated Ease Farm-To-Market Shift These handy make display options easier for produce retailers.

BY KIMBERLY RINKER

For years produce retailers have received the corrugated industry — explains that the corru- their products in containers. gated common footprint (CCF) is a standard applied to corrugated containers establishing It was not until the past two decades, however, dimensions and stacking features. While a variety that they began utilizing corrugated containers as of companies can produce the corrugated contain- an all-purpose vehicle — for the shipping, storage, ers, each adheres to a basic standard of dimensions handling and display of all types of produce. that provide consistency to retailers. First, corrugated materials are relatively inex- This allows for more efficient packing, handling, pensive, making them attractive to most retailers. storing and shipping of produce. It enables produce Second, they are durable, can be custom-made to to be handled by fewer people, thereby lowering individual chain specifications, and in most cases, the risk of damage to the product. In many cases, are stackable. Third, they are environmentally the produce is handled by the grower and not friendly. In 2004, over 24 million tons of corrugated touched again until purchased by a consumer. products were recycled in the United States. Corru- Many corrugated containers are printed or gated products have the best rate of any embossed with high-end graphics when they arrive packaging material in use today, notes the Corru- at the growers. Thus, they can go directly from the gated Packaging Alliance (CPA), Indianapolis, IN. fields to the distribution center and then straight into the supermarket produce section with little THE CORRUGATED altering. It is the ultimate in convenience for ship- COMMON FOOTPRINT pers and retailers alike. These containers also are The Fibre Association (FBA), Elk Grove Vil- stackable, with a that allows for exceptional lage, IL — a non-profit organization representing stability when loading and shipping in store. According to Dwight Schmidt, FBA president, an association program initiated within the industry in October 2005 showed recyclable corrugated prod- ucts are extremely popular with retailers because the retailers can earn money for returning old cor- rugated containers. Their design also makes them a tough cushioning product — an advantage when shipping and distributing produce. Schmidt recommends retailers use corrugated containers of the CCF configuration that are “display- ready with high graphic appeal. These containers readily column stack to reduce shrink in the supply chain, provide maximum impact for mass displays of seasonal items and fit on the standard Euro-table to provide an attractive display-ready, rapid replen- ishment solution. “For those whose merchandising technique is to hand-stack produce, leaving some colorful boxes floor-stacked with the shelf-stacked items cascading into them is another very effective method to call

92 PRODUCE BUSINESS • OCTOBER 2006 attention to that commodity,” he continues. modular and inter-stackable,” she notes. cushion produce to reduce shrink due to “Stores catering to the organic and envi- “This ensures that single commodity damage during transit. These corrugated ronmentally conscious market might con- and mixed loads work together to maximize containers can be custom designed to per- sider specifying containers that use new, full -load performance. Supermarket fectly fit and protect each product, and they certified recyclable wax alternatives and retailers and produce managers can use cor- inter-stack with CCF-compatible boxes made marking the boxes as recyclable,” he adds. rugated packaging in their produce depart- by other corrugated manufacturers.” Susan McHenry, director of produce ments to reduce labor costs, retain product Corrugated packaging offers an infinite marketing for Weyerhaeuser - freshness, highlight product attributes and variety of colorful graphics that can be used board Packaging & Recycling in San Ramon, increase store revenue,” she notes. CA, agrees with Schmidt while stressing the “Weyerhaeuser’s One Touch modular importance of corrugated packaging as a boxes are available in display-ready great tool for shipping and in-store merchan- that allow produce to be packed, shipped “Supermarket dising. “Boxes that are compatible with the and merchandised in the same box,” corrugated common footprint standard are McHenry explains. “Corrugated designs retailers and produce managers can use corrugated packaging in their produce departments to reduce labor costs, retain product freshness, highlight product attributes and increase store revenue.”

— Susan McHenry Weyerhaeuser Containerboard Packaging & Recycling

to identify product attributes such as coun- try or state of origin, product size or weight, nutritional information and product - ing, McHenry notes. “Graphics catch con- sumers’ eyes and slow them down so they’ll spend more time in the produce depart- ment. For maximum impact, consider using retailer or brand-specific graphics across boxes, corrugated bulk bins, point-of-pur- chase displays and kraft to highlight featured items in the produce department.” Charlie Pierce, general manager of pro- duce sales, Packaging Corporation of Ameri- ca (PCA), Lake Forest, IL, says the simplici- ty corrugated products offer to produce retailers is their best feature. “Every time you move produce you risk damaging it. With CCF set-ups, tomatoes, cucumbers and all different types of produce can be on the same pallet and be visible and viable. When you have a store-ready display box, it simpli- fies the whole process. And I believe that a semi-open box is definitely the way to go for all types of produce. “I think retailers do well to have a 6-down corrugated box with an open top that all fits

Reader Service # 59 on one pallet,” Pierce adds. “The secret to

94 PRODUCE BUSINESS • OCTOBER 2006 Clamshells Transform The Berry Category

BY MIRA SLOTT

he berry category is a fabulous exam- Driscoll’s, under the leadership of president packs for strawberries were converted from “ ple of how packaging revolutionized and CEO Miles Reiter, would take a huge leap pint to pound, evolving to options of 2-, 4- and 1 T an industry,” says Bryan Silbermann, in transforming the industry by pioneering ⁄2-pound clamshells as well as other varia- president of the Produce Marketing Associa- the adoption and rollout of a completely clear, tions.The larger pack sizes were brought in for tion (PMA), Newark, DE. plastic format.“We had to be consid- a more orderly market and increased con- In the 1970s and throughout the mid- erate of key areas, how to deal with the labor, sumption. 1980s, strawberries were sold primarily in the cost relative to current cost, analyzing “During the same time, we had tremen- naked pint trays in plastic mesh green bas- grower and market economics.” dous problems with raspberries and blackber- kets, explains Michael Hollister, vice president Tremendous opportunities that would ries, which were handled multiple times from sales and marketing for Driscoll Strawberry come from converting the strawberry catego- being picked and harvested.” They were Associates, Watsonville, CA. Retailers had to ry to clamshells could not be realized immedi- packed in a chipboard basket with over-wrap put a lot of labor into selling through peak ately.“Driscoll’s was only a certain percentage attached by a rubber band. The basket col- seasonality of the fresh strawberry crop, of the industry,”Hollister continues.“In the late lapsed when it got moist and did not protect reworking the fruit. Strawberries were packed 1980s/early 1990s, the retailers found it diffi- the fruit, and the consumer could not see the just like today, every strawberry hand-picked cult to get other suppliers to convert, so the fruit. The industry was challenged to create and place packed, he notes. whole rollout took longer. Once the retailer retail value because the berries could not In the mid- to late-1980s, Driscoll’s con- sold strawberries in clamshells, it needed to withstand the rigors of a typical supply-chain ducted observations, interviews and in-store assure it could get adequate supply so it program. “The conversion to clamshells was focus groups with produce managers and wouldn’t have to go back and forth, requiring smoother because we already had a con- clerks, and time and time again, found stores different labor needs and inventory packag- sumer unit,”Hollister notes. that could sell 100 trays a day could only work ing requirements. “Blueberries took longer to transform, a third of those and so would only order a “I give credit to the very first retailer, because they were very seasonal, regionally third to control inventory and the manage- Kroger’s Louisville division, for taking on the located and primarily a New Jersey and Michi- ment needed to rework, Hollister continues. challenge,” he says. Shelf-ready consumer gan crop that came in waves of six to eight

increased sales it that with this type of box, nobody has to touch the product once it leaves the field — it goes straight from the farmer to the customer. Thus, you have a fresher product that is also more appealing appearance-wise to the consumer.” McHenry believes corrugated’s simplicity goes a step further. “With corrugated packag- ing, there’s no need to clean, break down or return boxes when they’re empty. Boxes can go directly into the baler to generate addi- tional store revenue through recycling.” Corrugated products are more likely to be recycled over any other product, with 74 percent of all corrugated containers being recycled. In 2004, over 24 million tons of corrugated products were recycled in the United States, according to the American Forest & Association (AF&PA), Wash- ington, D.C.

DIFFERENT CORRUGATED CONTAINERS FOR DIFFERENT PRODUCTS Because of the seasonal changes in pro- duce production, different corrugated prod- ucts are needed at different times, and tradi- tional year-round favorites, such as apples and bananas, have their own set of contain- er challenges. “Most produce managers utilize varying

Reader Service # 8 merchandising techniques depending upon

96 PRODUCE BUSINESS • OCTOBER 2006 with CCF-compliant display-ready contain- include a point-of-purchase display with ers, most are shipped in attractive bulk bins bananas, pudding and graham cracker crusts with either drop-down door panels or of a to make it easy for your customers to assem- sufficiently shallow depth to allow easy con- ble a banana cream pie. Another idea is to sumer access,” Schmidt concludes feature a display of clamshells of fresh straw- week periods. Today that still happens, but berries and shortcake or breakfast cereals. there are more production areas with Florida, MERCHANDISING Another is a display with potatoes, onions, the Pacific Northwest, California and an OPPORTUNITIES bell peppers, marinades and shish kebab increase in South American plantings, Chile in Seasonal products allow for intra- and skewers placed near the meat department.” particular. It took longer to convert that fiber- inter-department merchandising opportuni- Corrugated manufacturers often work board, opaque large basket, over-wrapped ties, Weyerhaeuser’s McHenry says. “Corru- closely with suppliers to create a custom dis- with rubber band because it wasn’t quite a gated packaging is ideal for cross-merchan- play program for individual produce retail- year-round commodity,”Hollister explains. dising opportunities in produce depart- ers, McHenry adds. “Unique structural and “We’ve essentially seen the industry ments. Some cross-merchandising ideas graphic designs bring merchandising to life quadruple in the last 20 years since the intro- duction of the clamshell,” says Hollister, who cites a 10-fold increase in raspberries and blackberries.Several reasons in addition to the clamshell-packaging phenomenon impacted growth, including new varieties, cultural development and extended seasons for all berries. The more expensive packaging has helped sell peak productions more effectively, and customers receive good quality product for better sell-through and profit. And the clamshell has helped build consumer confi- dence overall.“It was a huge thing. Our indus- try wouldn’t be what it is today without the clamshell.” pb the commodity size and expected turn,” FBA’s Schmidt says. “Apples, a year-round , make up almost 8 percent of the aver- age produce revenue but provide a challenge because some 18 varieties are available at various times. They come in protective trays, in various sized bags and also in bulk. “When you add to this the varying fruit sizes, a wide variety of unique corrugated packaging merchandising solutions emerge,” he continues. “While all will be printed to offer high graphic appeal, the structural approach ranges from CCF-compliant dis- play-ready containers to full telescope boxes to bulk bins for fast-moving bagged products.” Schmidt believes produce managers need to be alert to the best display and stacking options for seasonal products such as cher- ries and watermelons. “Cherries, at slightly under 2 percent of produce sales volume, are more fragile and have seasonal availabili- ty. Standard CCF-compliant containers work best for maintaining the required airflow as well as providing cushioning to protect against shatter. Bagged, clamshell and bulk packs all lend themselves to this solution and Euro-table merchandising. “Watermelons, at slightly less than 1 per- cent of produce volume, are bulky and hard- er to contain and transport in normal pack- aging options. While some of the smaller,

more specialized varieties are compatible Reader Service # 141

OCTOBER 2006 • PRODUCE BUSINESS 97 and improve profitability by reducing work- On another occasion Weyerhaeuser load and enhancing incremental sales. worked with a large, club store retailer to “We had a large supermarket retailer who develop a custom marketing solution to a A Success was displaying Vidalia onions in returnable problem. “This retailer wanted distinctive, containers,” McHenry recalls. “It wanted its display-ready packaging to showcase its Story For customers in Georgia to know it was selling apples,” McHenry says. “In fact, it was spe- locally grown Vidalias rather than onions cific in that it wanted its customers to be Pro-Fruit sourced from some other area. We developed able to easily identify the contents of the a corrugated box design with custom graph- boxes from 50 feet away. In addition, the ics to highlight the retailer’s locally grown boxes were required to meet strict handling ith corrugated, display-ready con- produce. The display-ready box’s structural requirements throughout the distribution tainers, supermarkets can provide and identified the onions as chain. Weyerhaeuser developed a structural W customers with healthful produce locally grown on the top and sides of the dis- design that provided product protection and that has suffered little through shipping and play, making it easy for shoppers to see.” ease of handling as well as custom, pre-print- handling. Once in the store, however, what is the best way to attract consumers to their fresh produce? Most retailers agree solid, eye-catching graphics are key. “Designs contribute to a company’s suc- cess because they help drive sales,” notes Steve Pasch, president of Pro-Fruit Market- ing, Inc., Paramus, NJ. In April 2005, Interna- tional Paper (IP), Memphis,TN, provided Pro- Fruit with custom-built, corrugated display- ready trays for its products. As a result, Inter- national Paper received an American Graph- ic Design Award. “We are very pleased with the creativity that we receive from International Paper’s graphic design team,”Pasch adds. Pro-Fruit worked closely with IP’s graph- For all your ics team to introduce new ways to market its produce through graphic packaging designs that helped Pro-Fruit growers’ pro- produce packaging needs duce stand out on supermarket shelves.“It’s gratifying to receive an award for graphics that satisfy the marketing needs of a pro- Pints, Quarts, Trays, Films, Bags gressive customer like Pro-Fruit,” says Roger Rasor, IP manager of graphics and advertis- & Labeling Equipment ing.“We are especially happy to share recog- nition with a customer that relies on us to 15 lb. & 10 lb. liners design effective graphics to differentiate their brand in the marketplace.” Clearly, produce retailers who want to attract consumers for an initial sale, pro- mote a brand and inspire repeat sales need email [email protected] to have unique graphics on their corrugated products. Establishing a close relationship www.producepackaging.com® with a corrugated container graphics team that can provide the type of brand recogni- tion needed by an individual retailer could be the key to increases sales. pb

Kurt Zuhlke & Associates, Inc.

20 Market Street • Bangor, PA 18013 800.644.8729

ed graphics that could be used for any vari- ety of apples with powerful impact at the

Reader Service # 175 point of display.” pb

98 PRODUCE BUSINESS • OCTOBER 2006