Progressive Grocer - January/February 2009 - (Page 64)

Walmart keeping score AS IT APPROACHES year three of implementing its proprietary scorecard for evaluating suppliers’ packaging applications, Walmart plans to expand the tabulation system, and shift its focus on greenhouse gas emissions, packaging weight, and recycled content. First announced in late 2006, Walmart’s packaging scorecard, currently in place for 250,000 of its products, is the centerpiece of the megaretailer’s strategy to reduce packaging in its supply chain by 5 percent by the year 2013. The scorecard lets suppliers evaluate their packaging in relation to other suppliers, and see where they’re leading—or lacking—in attributes including recycled content, value of packaging material, and greenhouse gas emissions per ton of production. Although the scorecard is currently used only in the United States, Walmart will roll it out internationally to suppliers in Canada, China, Mexico, Puerto Rico, Brazil, Central America, Japan, and India, throughout 2010. The system will also expand to the United Kingdom and Argentina, but Walmart hasn’t yet set a deadline for suppliers in those countries. The company will also adjust the metrics used to score packaging, increasing its focus on its Sustainability Value Network, and begin to evaluate countries of origin for raw materials. The Sam’s Club division is additionally developing tests with the International Safe Transit Association to duplicate conditions in Walmart’s supply chain and ensure that as suppliers alter packaging, they don’t weaken standards and/or leave products more susceptible to damage. The chain is expected to make further announcements about its packaging scorecard at its Sustainable Packaging Expo in Bentonville, Ark., in April 2009. Fresh food The whole package More sustainable packaging applications offer improved functionality at competitive costs. By Meg Major hen Walmart starts pushing its weight around to influence packaging trends, you know massive retooling isn’t far behind. But while a mandate from the world’s largest retailer is fairly compelling, it’s just part of an ongoing drive toward sustainable packaging solutions backed by another irresistible force: consumers. Year-end reports of pending “eco-fatigue” among consumers have been greatly exaggerated, particularly when it comes to packaging, which indisputably remains one of the most powerful means of building a bond between a brand and its enthusiasts. In a marketplace booming with new product introductions, the right package can make or break an item. But in the bigger picture of the green evolution, packaging has taken on greater meaning. It’s a pivotal hot spot, with much of Grocery list the discussion revolving around materials and design, Failure to make environmental sustainability and their impact on the a core business principle means lower profits for environment. Heightened fast-moving consumer goods (FMCG) companies, demand from brand owners according to recent study by Chicago-based and retailers is focusing conAT Kearney, Inc. The report, Rattling Supply Chains: siderable attention on ecoThe Effect of Environmental Trends on the FMCG logically friendly packaging, industry, predicts companies that ignore environmental which in the not-too-distant needs face earnings drops of up to 31 percent in future is expected to become 2013, and 47 percent in 2018. the rule vs. the exception. But given the tall order W mandated by the converging needs of capturing the consumer’s eye, providing protection in transit, maximizing shelf life, increasing efficiencies, and, of course, promoting the brand, identifying the perfect package is no easy feat. Anchor Packaging has expanded its popular To be sure, the onus to reduce Incredi-Bowl line packaging and maintain brand to include nine-inch integrity has never been higher, round containers. especially for the fresh food marketers who have toiled mightily in recent years to deliver peak freshness, pristine quality, portability, and convenience via products that rely heavily on durable, functional, premium portion-oriented products. Sustainable packaging alternatives continue to be a major focus for both retailers and food processors, affirms Erik O’Neil, v.p. of sales for Lewis Center, Ohio-based Solut!, a leading thermoformed-paper packaging manufacturer. “Performance and cost are also of equal importance,” says O’Neil. “The optimal package solution for the retailer and processor is a more sustainable package with improved functionality at a better cost.” In the current economy, O’Neil acknowledges that most companies “are not willing to sacrifice cost for sustainability. Ultimately, cost is not just about the cost savings of a single piece of packaging vs. another.” Rather, he contends, “It is about improving the total system cost for any given product that will land on a retail shelf.” It’s a delicate balancing act that “involves a wide range of design and materials development,” notes O’Neil, which www.progressivegrocer.com 64 • Progressive Grocer • January/February 2008 A H E A D O F W H AT ’ S N E X T http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - January/February 2009

Progressive Grocer - January/February 2009
Front End: Aldi’s Private Label Showing its Fitness
Nielsen’s Shelf Stoppers/Spotlight: Prepared Foods-DryMixes/Rice Mixes
Market Snapshot: Minneapolis-St. Paul, Minn.
Outstanding Independents Awards: Up with People
Current Events: Retail Newsmakers
Contents
Lempert Report: The Phoenix Format Face-Off
Independents Report: Making your Workplace Family-Friendly
Multicultural Marketing: Where there’s Mystery, there’s Margin
Wake-Up Call: New Habits Die Hard
Beverage Alcohol: Wine 101
Soft Drinks: Creating a Buzz
Whole Grains: The Brown Version
Packaging: The Whole Package
Meat: Master Beef Backer
Pet Care: Financing Fido
Executive Insight Series: Technology and the Independent Grocer: Eye of the Gale
Equipment Case Studies: Food. Service. Equipment
Financial Insights: What the Yield Curve Shows
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - January/February 2009