How To Avoid Costly Packaging Mistakes

You invest so much time and money in product development, why not invest a little more and protect yourself from making a bad packaging mistake? It is easy to make a packaging error that comes back to haunt you after you have packaged the product and sent it on its way to the retailer’s shelf.

We think about bad packaging when they hit the news. For example “Ecoli Outbreak Attributed to Packaging.” Packaging that on the surface seems like a good idea but then backfires due to some unforeseen circumstance that takes place. Why wait until it becomes an issue?

Wolfgang Puck found out about “bad” packaging the hard way when his new self heating latte cans hit the retailer shelf and started exploding. Was it his fault? Probably not, but the words “Product Recall” were shouted from the isles.

“Fabuloso” experienced a similar problem when it designed the packaging for its cleaning products to look like soda or beverage bottles. Children confused the “fabulous” colors with the real thing. A few poisonings later they realized they had made a huge mistake.

All packaging problems certainly don’t rise to the level of these two examples. A problem can be something of minor significance. Nonetheless, it is a problem and in many cases can be avoided or at the very least modified or anticipated. You would be surprised at how many people contact me knowing in advance that their packaging may have a problem yet they never do anything about it. Perhaps they will be the next big news story.

In any case, there are ways to foresee potentially “bad” packaging situations. A little forward thinking may alleviate impending problems. Here are some common questions that could pave the way to avoiding potential packaging problems:

Should I put my product in a plastic clamshell? The number one contested “packaging” issue revolves around the plastic clamshell and how difficult it is to open or penetrate without causing bodily harm. Can you anticipate this problem? You bet. Weigh your options when considering this type of packaging. Even with your best effort to make the clamshell easy to open, you may end up as an “Oyster Award” candidate and be labeled as one of the most difficult packages to open.

What is “green” packaging and how can I incorporate it into my packaging design? Whether to use green packaging or not should not be the question. What you should be asking is does utilizing environmentally friendly packaging materials make sense for my product?
Am I going green legitimately or just jumping on the “green” bandwagon to make a buck? Will I be mandated to use “green” packaging materials by retailers? What other options can I consider that aren’t “green?” You really need to take some time to analyze these and other questions before you advance your packaging development in the wrong direction.

My packaging is working now should I change it to new and improved or give it a packaging makeover? Remember my negative packaging trend for 07. Don’t fix it, if it ain’t broken. Consumers hate change. When they go to look for their trusted brand on the retailer’s shelf, you want to ensure they recognize your product easily. If they don’t, they may be forced to buy from the competition. Keep packaging consistency and continuity to make it easy for consumers to buy from you.

Who regulates what needs to be on my product packaging? The answer is just about everyone. Outside of the various regulatory agencies that tell you what can and must be placed on your product packaging you could be mandated by a plethora out outside influences. Here are a few examples.

Going Green? Better listen to what Wal-Mart has to say with their “Packaging Scorecard.”

Trading in the organic space? Better understand what the work organic means to your product and who is watching out looking for a mislabeled package or a claim that can’t be validated.

Making weight loss claims or dietary claims on your product packaging? Just about every one will be on your case. These claims are heavily scrutinized, not just by regulatory agencies but by consumers too. They are taking charge of their own well being. They “can” and will read them.

Pay attention to these common packaging questions to which many companies don’t find adequate answers before they embark on their product packaging. By doing so, you may anticipate potential packaging problems that could result in packaging problems. Do your homework. Use a little common sense and think about packaging issues relative to your product. Consider what you can do to avoid potential pitfalls before it’s too late.

About the Author:

JoAnn Hines is the Chief Executive Officer at J.R. Hines International, a firm providing consulting services in the packaging industry. For over 30 years, Ms. Hines has been engaged in packaging trends, forecasting, ideation/brainstorming and implementing innovative new packaging technologies.

Need insights on packaging trends that can impact your business? Get the Packaging Diva on your team. Visit PackagingUniversity.com to find out about the latest packaging innovations.

5 Easy Steps to Get Started Packaging Your Product

Feeling overwhelmed while trying to develop a package for your product? I’m not surprised. Packaging is the third largest industry in the country. In fact, there are more than 10,000 packaging manufactures in the US alone. The proliferation of material choices and vendors is extensive. To begin you will have to narrow the resource and material universe before you package anything.  That is your first step because you can’t have a product without a package.

Which vendor is right for you? What is your packaging material of choice? Do you understand the differences between each material and what value each will bring to marketing your product? How do you sift through the mounds of information and resources to set started packaging your product?

Here are 5 easy rules to get you started.

1. Do Your Homework

Before you decide how you want to package your product you need to see and understand what is already available in the marketplace. Even if your product is the greatest new invention out there, you will still have competition of some sort. Start by checking that out first. Visit outlets that carry similar products or products in the same category. For example, if you have a houseware product you should check out places that market housewares. Don’t just pick one outlet. Go to a variety of stores. You don’t want to develop a great new packaging concept only to find someone else is already doing the same thing. The more you look the better informed you will become. Be careful not to go into information overload by visiting every retailer outlet out there. This will only serve to confuse your decision making process.

2. Pick Your Packaging Material

This isn’t as simple as it sounds because there are many external factors influencing why products are packaged in certain types of materials. Certain products lend themselves special merchandising. Some products can only be merchandised in certain materials. How the product is merchandised may dictate what type of package material you use. For example, if you need clarity to see the entire product then you are probably going to want plastic. The choice of material may also be dictated by availability.

Packaging materials are classified by their primary raw material. Two simple examples are paper and plastic. Within in each material type are numerous sub categories of different types of packaging. If you chose paper packaging it might be a box, a bag, a drum, a tube, a canister and so on. See the variety of choices? It’s easy to become inundated with options and hard to figure out what is the best choice. As products lend themselves to several different packaging materials, it’s best to start with what you know is working with similar products. Even if you choose the same material as a competitive product the package doesn’t necessarily need to look the same.

3. Optimize Your Package Profile

This is what is called the retail footprint, i.e., how much space will your product take up on the shelf. Your goal is to have the smallest size or amount of packaging you can while optimizing the shape and design of the package. It’s important to understand the concept of the retail footprint. Retail space is at a premium so the smaller amount of space you use the happier the retailer will be. They may even specify that your product only be allowed so much shelf space. In any case, you need to understand the concept and incorporate that in your sales pitch to retailers.

Many times you can package your product in variety of different ways. This is where creativity comes into play. Your product doesn’t just have to sit on a shelf in a box. It could sit upright; it could hang or be displayed in a floor stand or similar merchandiser. There are many unique ways to merchandise any product. You just have to think outside of traditional ways of doing things. Look at other products from different industries. See if you can’t incorporate design ideas into your own product packaging.

4. Be Prepared To Take Advice

I know you are in love with your product and you are sure you have ALL the answers, but you can’t be an expert at everything. Listen to what other people have to say about your product packaging. Don’t get so caught up in your own ideas that you make design mistakes or mistakes in merchandising. Get a reality check from someone who knows nothing about your product. See if your packaging concept is compelling to an outsider. By that I mean that they are interested enough to pick your product up off the shelf.

There are many resources available to you at little or no cost. Many vendors provide design expertise as part of the order. There is an unlimited amount of resource materials that can give you basic information that can save you many hours and costly mistakes. Be sure and spend time checking them out.

5. Think Big, But Be Prepared To Compromise

I know your product is fantastic, but you may need to start out on a smaller scale than you envision.  One of the largest obstacles might be finding a vendor. In general, custom packaging is relegated to large volume orders and you are probably not there yet. But don’t despair.

Look for stock items that can be customized. The stock container market has improved dramatically with innovation and new designs. In fact there are many companies now that provide only stock containers. You can customize stock on a smaller scale.  With a simple label change, your package may there. Also ordering in a limited quantity allows you to change and modify your packaging as your sales increase. You don’t want to have 10,000 old packages on hand when you have a design change or need to change what’s on the package due to some regulatory issue.

The important fact is to understand that packaging is not static it evolves and changes with consumer needs and demands. It can even change because you have more business and can order in larger quantities. What worked in the past may not work tomorrow. You need to be innovative and creative in your thinking. Look for guidance and expertise in outside resources. Keep up with packaging changes and materials. Don’t get caught ordering too much stock that you can never use. Think big and start small.

About the Author:

JoAnn Hines is the Chief Executive Officer at J.R. Hines International, a firm providing consulting services in the packaging industry. For over 30 years, Ms. Hines has been engaged in packaging trends, forecasting, ideation/brainstorming and implementing innovative new packaging technologies.

Need insights on packaging trends that can impact your business? Get the Packaging Diva on your team. Visit PackagingUniversity.com to find out about the latest packaging innovations.

What are Stick Packs?

Stick packs are a type of flexible pouch suitable for food packaging. Stick packaging gets its name from its shape, which is long and skinny like a stick of gum. The packs themselves are sealed on two shorts ends and have a seal down the back.

They are a specific form of vertical fill, form and seal (F/F/S) pouching. The material can be paper or plastic and can be printed or plain.

Stick packs have been around for a number of years but they have been experiencing resurgence as of late because of a new market for flavored products. Sugar substitutes, diet drink mixes, energy drinks and vitamin waters have all driven the need for this type of food packaging.

The primary benefit of stick packaging over other forms of food packaging is the convenience. Stick packs are narrow so it makes it easy to pour the contents of the package into the neck of a bottle of water. Also, a single stick pack conveniently holds a single serving size so it is compact and fits neatly in your purse or backpack.

But another benefit of a stick pack is that it is smaller than a sugar pack or portion pack so the impact on the environment is less than other forms of packaging.

Additionally, because the packs are small and are produced on dedicated machines the production rates are high and the per-item costs are low. Stick packs are a very economical and efficient form of food packaging.

Smaller Product But Same Packaging

The new trend in product packaging seems to be “downsizing”, or reducing the amount of product in the package but charging the same amount to consumers. This increases the price of the food, but not the package. In a recent tour of supermarkets, studies found that almost 10% of products examined had gotten smaller, while the prices have stayed the same.

Some examples:

• Bags of chips were cut from 12 ounce sizes to 10 ounces, while maintaining the same price.
• Mayonnaise jars that once contained 32 ounces now hold only 30 ounces.
• Some cereal companies are cutting 1.5 ounces from some boxes. Other companies are taking as much as 2.4 ounces while charging the same as before.
• Major ice cream manufacturers are packaging ice creams in 1.5 quart boxes as opposed to previous 1.75 quart sizes.

Although some companies are receiving many letters of complaint, they are standing by their choice to reduce product amounts, saying it is better than “to take the price of the package up” and make products unaffordable to consumers.

What Makes Packaging, Green?

One of our readers asked us to explain green packaging.

Q: What is the criterion for good sustainable packaging?

According to one leader in the packaging and environmental arenas, sustainable packaging materials can be designed in America and procured from worldwide locations (though common sense would indicate that shipping packaging supplies from Asia would offset any green benefit) as long as the packaging can meet these basic definitions…

• Is the packaging beneficial, safe, and healthy for individuals and communities throughout its life cycle?
• Does the packaging meet market criteria for performance and cost?
• Is the packaging sourced, manufactured, transported and recycled using renewable energy?
• Does the packaging maximize the use of renewable or recycled source materials?
• Is the packaging manufactured using clean production technologies and best practices?
• Is the packaging made from materials healthy in all probable end-of-life scenarios?
• Is the packaging physically designed to optimize materials and energy?
• Is the packaging effectively recovered and utilized in biological and/or industrial cradle-to-cradle cycles?

So if you are sourcing greener packaging materials, ask yourself those questions and you will be a giant step ahead of your competition when it comes to things like Wal-Mart’s scorecard and other business and governmental entities that keep track of your company’s green initiatives.

Giving Up On Convenience Packaging?

What would you give up to save the world? What types of packaging could you do without?

A recent survey of consumers by the Nielsen Global Food Packaging says that almost half of global consumers would give up all forms of convenience packaging if it benefited the environment.

This includes packaging that make stacking/storing in the home easier (49%), packaging that can be used for cooking or is resealable (48%) and easily transportable packaging (47%).

Making up the list of things shoppers were least willing to give up was packaging that helped keep products clean and untouched by other humans (27%); packaging meant to keep products in good condition (30%); information on packaging which includes food labeling, cooking and usage instructions (33%) and packaging which helps to preserve the product (34%). Ten percent of consumers said they were not prepared to give up any packaging that would benefit the environment.

Does it matter what country you live in?

Lifestyles and regional factors played a key role in the considerations for Consumer Packaged Goods (CPG) companies. Most North Americans and Europeans said that they would give up packaging designs which aided in storage and stacking at home, and they would also give up resealable packs that could be used for cooking. However, only 42% of Asians said they would be willing to give up stackable and storable packaging, and less than 40% would give up easy transport packaging. In countries like Finland, Ireland, and New Zealand, over 70% of respondents said that would give up stack-and-store packaging. Over 65% of Irish, New Zealand, and Czech customers would give convenience packaging to benefit the earth.

So, what packaging would you give up to save the world? That depends on where you live and how much convienience you are willing to live without.

Sustainable Packaging Buying Decissions

A recent packaging survey in an industry publication suggests that almost half of American consumers consider one or more sustainability factors when shopping for products in stores.

The survey suggests that not only are the products important but the packaging and the store where products are purchased also playing a role. This information could be invaluable to you when designing or sourcing packaging materials.

Some of the surveys other findings include:

• Almost 25% of the respondents consider two or more sustainability issues when making a purchase. Over 29% said that environmentally friendly packaging influenced the brands they bought, and 21% choose stores that carry a wide selection of products in sustainable packaging.
• Sustainability factors are most important in the households of aging baby boomers and those with less than four people. Larger households with smaller budgets may choose products with lower prices instead of sustainability.
• Failing to reach the 55-and-over market could be a problem for companies and retailers because they are missing a large part of their main consumer base.
• Conscious consumers direct most of their buying to drug stores rather than supercenters.
• High sustainability concerned customers have a higher purchase rate in food and beverages.

In terms of packaging, the survey recommends that companies and retailers do the following:

• Utilize all opportunities to reduce packaging and leverage recycled materials, reusable, and biodegradable materials among their private label products.
• Increase the availability of products with eco-friendly packaging.
• Optimize shelf-space as the package size is reduced.
• Signal all significant environmentally friendly packaging improvements.

As you can see, many factors go into making buying decisions for sustainable packaging.

Packaging Inside The Box

Many companies look to contract packagers and packaging supply companies for interesting and unique packaging designs. Everyone wants their packages to look exciting and unique but this could come at a steep price in the marketplace.

Many years ago retailers were open to different colored items in different sizes. Back then they welcomed multi-packs and bonus packs. But with the advent of planograms which make planning product positioning ridged, controlled and consistent, creative and oddball sized packages are a thing of the past.

Package sizes are controlled at the corporate buying level now. Ever notice how every box of laundry detergent is the same size even if they are manufactured by different companies?

This packaging standardization occurs because the buyers have set sizes and locations for products and shelving and expect square pegs to fit into square holes. You may have a package and want to add a premium to it or make it into a bonus pack in order to attract more sales (“Get an extra 20% free!”)… but if that makes your package too tall or too wide then you will not have shelf space for your product.

Also, if you go with a container that looks great but can’t be stacked, then you may run into problems as well. Buyers and stockers appreciate carefully designed packages tha make their lives easier.

So, as you can see, while the marketers in your company are always looking for something unique to attract the eye of the customer, the reality of the situation is that they are forced to think inside the box and conform to industry standard sizes and shapes of packaging.

The Contract With The Copacker

This packaging tip is an excerpt from “Choosing and Using a Copacker” by John E. Rushing, Ph.D. It is published by North Carolina State University.

North Carolina State University’s Department of Food Science ranks among the top food science departments in the country. This recognition is the result of excellence achieved in all areas of the university’s mission: teaching, research, and extension.

The contract

Obviously, written orders should be placed with the copacker. Specifications should be furnished for supplies, ingredients, processing and finished products. A written contract can help you avoid a lot of problems later on. Be sure you understand what you’re contracting for. Check with your attorney.

Below are items which should, at a minimum, be addressed in the contract:

• What are the services you are contracting for? Who will handle raw product testing? Where are records to be kept? How will final product quality be checked?
• What ingredients and supplies are you responsible for purchasing or providing? What is the disposal for excess ingredients or supplies which you purchase or furnish? Where will they be stored between processing runs?
• What processing manipulations will be required for ingredients such as slicing, dicing, or blanching? Are piece sizes specified?
• Will there be samples furnished for your approval prior to the first production run? Will there be storage/stability or finished product tests?
• Are you to be present and consulted during processing plant runs? If so, are you covered under insurance or Workman’s Compensation?
• Will you have any coverage under the manufacturer’s product liability insurance? If so, what will it be? Note that it will be necessary for you to furnish your own liability insurance to sell your product to stores.
• What are the critical factors which must be met in processing, such as pH, packing temperatures, or heat processing? Require documentation that these have been measured and met.
• Are ingredient substitutions accepted? What are the limits? Are these covered in your ingredient specifications? Note that manipulation of ingredients may render your ingredient statement or nutritional information on your label inadequate.
• The contract should note scheduled processes which must be filed and certifications which must be obtained. If the product is listed under a marketing program such as “Goodness Grows in North Carolina” there must be certification of use of required ingredients.
• What is the delivery date of the finished product? Must it be immediately removed from the premises?
• What are the payment terms? Usually these are 10% down and the remainder on delivery.
• What will render the product unacceptable? What are the appearance factors such as color, separation, piece size, and texture? Who will judge adequacy of flavor and taste?
• What are the appearance factors for the container, such as label placement, closure gasket materials and closure color, or neckband placement, size and color? How tight is the closure to be?
• Who is responsible for disposal and disposal costs or rework of unacceptable product?
• The entrepreneur should furnish labels, what size are they to be, what style and orientation, and how are they to be wound? (It is recommended you have the copacker specify the labels in writing to be sure they will run on his equipment).
• How much lead-time is necessary for the next and subsequent production runs to be delivered?
• Will the copacker be required to furnish grade certifications, third party audits or other certifications of lots and batches? The copacker should certify that the label statements are accurate.
• What lot or batch coding is to be used? Where will it be placed on the container and how will ingredient processing and testing records be filed to correlate with the code?
• What is the manufacturer’s recall plan? Be sure you have a copy. How are you to be notified?
• Is there a noncompete agreement with the copacker? Are confidentiality and privacy issues covered?
• What finished product testing will be provided?

While there may be many other points to be covered in the contract, the above represents those points for which many disagreements occur. While we recommend an attorney’s advice on contracts, the small entrepreneur may find the cost prohibitive.

Make the Relationship Good

A good working relationship with your copacker and an agreement which covers what he is expected to provide will make your venture more pleasant, and hopefully, more profitable. Get the copacker on your team. Give him a chance to be properly reimbursed for his services, then concentrate on selling your product!

Finding The Right Copacker

This packaging tip is an excerpt from “Choosing and Using a Copacker” by John E. Rushing, Ph.D. It is published by North Carolina State University.

North Carolina State University’s Department of Food Science ranks among the top food science departments in the country. This recognition is the result of excellence achieved in all areas of the university’s mission: teaching, research, and extension.

How do I find the right copacker?

For the entrepreneur, the best source of information about copackers, their abilities and how they work with entrepreneurs is often other entrepreneurs. Meet other entrepreneurs at state association meetings, food shows, and trade shows. More specialized copackers will often advertise in food industry trade periodicals and directories. State directories of manufacturers will provide information about manufacturing companies. Those who list private-label products are usually copackers. University extension services and state food and drug or agricultural marketing agencies can also be of help.

Bring your specifications and checklist to your first meeting with the copacker. You may wish to consult your attorney for instructions on protecting the confidentiality of your documents and conversation. Some copackers will restrict confidentiality agreements only to written specifications, formulations, pricing and customer information. Most will not agree to non-compete arrangements, as that would restrict their livelihood and their business interests. You may be able to use a model confidentiality contract furnished by the copacker.

The costs of all services at a copacker must be recovered. Be sure to have an agreed-upon price for each of these. Once an agreement is reached, be sure you will need a contract for services. Be sure to get a guaranteed price for at least a year.

Some copackers have an in-house R&D department. This can produce a considerable savings in time and development costs.

Ask to tour the copacker’s facilities. Note the state of cleanliness and order. Look at the most recent inspection report. Is the copacker operating under a quality control or food safety system such as HACCP? Do they have the equipment needed to process, label, and package your product correctly?

Request from the copacker the names of others he has copacked for. It is a good idea to speak with them about what it’s like to work with the copacker; ask about his commitment to schedules and to quality. Ask about concerns they might have.

Share both your present and future needs with the copacker. Early in the relationship, you may need small production runs, later you may wish to have more volume. Can the copacker deliver on production? What about peak seasons? In the specialty foods business, there are often seasonal needs, such as, the Christmas holidays, when turn-around time for resupply of stores may be short. Can the copacker accommodate this?

Usually, early in the process, it will be necessary to produce product for storage/stability testing. You may wish to produce samples in alternate sizes or different containers. Check to make sure these can be processed.

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