Innovative Packaging Could be the Boost that Dairy Growth Needs

Today’s consumer is inundated with options on each shopping trip. There are, on average, 30,000 SKU’s to choose from at the grocery store.

Today’s consumer is inundated with options on each shopping trip. There are, on average, 30,000 SKU’s to choose from at the grocery store. How does the consumer decide what to pick of the shelf? This is the problem outlined by Forum speaker Michael Richmond, Ph.D.

“More than ever, the package is important in cutting through the clutter and providing a real or perceived difference,” said Richmond, in his presentation to the Dairy Management Inc.™ (DMI) 2006 Dairy Innovation Forum.

Richmond explained that up to 70% of in-store purchases are now driven by shopper impulse. That means packaging—with its potential for eye-catching “shelf impact”—can play a vital role in creating consumer interest and boosting sales. But these days there’s much more to shelf impact than snappy graphics. According to Richmond, the opportunity for dairy is to to leverage new packaging concepts and technology in ways that address increasing consumer demands for convenience, flavor, freshness and nutrition. He emphasizes that dairy, food and beverage manufacturers need to start thinking about package design early in the product innovation process, since the package can influence consumers’ perception of product performance.

Richmond is president and chief executive officer of Packaging and Technology Integrated Solutions (PTIS), a consulting firm serving the food and beverage industry. He spoke at DMI’s annual two-day, invitation-only Forum dedicated to innovative thinking in the dairy, food and beverage industries. This year’s meeting was held Feb. 7-8 in Scottsdale, Ariz. Forum participants were told about how new technologies bring new options to the manufacturer. Packaging can have a positive impact on consumers’ perceptions – fluid milk being a prime example, which saw a growth in consumption due to repackaging in brightly colored, single-serve plastic containers.

Using new colors and shapes can also build appeal. . Richmond pointed out the many new places available for selling dairy in stores today, including end-of-aisle displays, delis, bakeries, the refrigerated and frozen-food sections and checkout counters. New material and container technologies such as thermochromics (color-changing inks) and insulated packages were recommended by Richmond for attracting consumers, as well as new closure technologies that add convenience.

“Dairy can grow significantly,” he said, “and packaging is the enabler.” The Forum, which drew more than 160 dairy, food and beverage leaders for presentations, discussions and networking, is designed to stimulate innovation in the processing, packaging and marketing of dairy and dairy-based products and ingredients.