Why Packaging in Food + Beverage Matters Now, More Than Ever
A 20% increase in sales1, millions of impressions in-store, and reduced advertising expenditures are a few of the reasons to consider re-evaluating your product’s packaging and presentation.
“We recognize that our future is in getting out of the center-store.” – Chris Lischewski BumbleBee Foods2
Lischewski shared this eye-opening statement referencing the company’s shift toward ready-to-eat pouches with smaller portions aimed to attract today’s modern shopper at the 2017 TPA Supply Chain Conference hosted by GMA and FMI. For a brand that has made its home nested securely in the center aisles of grocery stores for 120 years, a drastic change in its packaging strategy caught our attention; and they are not alone.
Another brand garnering attention for redesign is LeanCuisine. Their stark black packages with real-food photography and millennial-friendly ingredients helped them re-position the entire frozen line and avoid the slump the category was suffering as a result of the “fresh is best” food movement.
These days, the need for packaging changes can be brought about for a number of reasons including shopper fatigue, food safety requirements, transportation costs and consumer demand. In the case of demand, the need for new packaging often stems from re-portioning into meal kits, pouches, or RTE-style offerings.
“People are looking for ways to simplify their lives. It’s about [asking] ‘How do we add convenience to people’s lives?’” – Rick Keyes, Meijer, Inc.2
Rick Keyes from Meijer, Inc. shared that packaging also has direct implications on store results. Changes in case pack size, packaging technology, and products being shelf-ready were among the factors that affected retail locations.
Clearly, considering new packaging designs, materials, sources and sizes could make or break your sales. However, making the switch can be costly. First American Food + Beverage Finance is familiar with these “quick-pivot” challenges that often occur in the industry, and offers flexible financing solutions to help overcome these challenges.