The Evolution of Snack Packaging in APAC
This blog post has been contributed by Noorul Malik, Marketing and Communications Executive (APAC), SGK
Snacking—a familiar term that used to represent our unhealthy habits of junking in between or post meals, is now more than just a treat, it is part of our lifestyle. Urbanization, industrialization, and cultural expansion have re-framed snacking and how it’s embraced.
In Asia, rising living standards and premiumization are shaping the way people interact with their surroundings and food habits. Consumers look forward to innovative or customized food products to integrate with their chosen lifestyle option. This option pushes consumers to move away from three standard meals a day to readily accessible and snacks-on-the-go concept.
For millennials, their choice of snacking is strongly connected to social media marketing. It forms the perfect platform to explore and push new ideas by both consumers and brands. Majority of fusion ideas and revitalizing conventional flavors brought through social media livens the snacking industry with constant evolution of snacks.
Below, we outline five trends that are impacting snack packaging design in the APAC region:
We are super social media savvy.
While social media helps create buzz around an old (and forgotten) diet, it also elevates the connectivity and experiences of new product launches. Considering Asia is the largest market for snacking, innovations are expected to increase!
The high level of interest from millennials in sharing their food choices on social media allows brands to understand what millennials are currently gravitating towards. We love when traditional meets new. The new inspirations can translate to product innovations to meet the gaps in the industry.
For example, we generally do not prefer consuming fish skin due to its unpalatable taste and texture. However, when that same skin was deep fried with salted egg flavoring, it turned out to be a massive hit amongst the same generation that once did not see its value. Visual representation of combining heritage flavours to the modern crisp was an instant disruptor in the market and raved on social media.
We are in constant drive to simplify our lifestyle.
Consumers are more aware of their diet and continually trying out new mixes to ease their hectic daily schedule. We sacrifice meal planning and meal preparation for the time to commute to work or meeting deadlines. This opens up new avenues for the snacking industry to support time-constrained consumers with the snack-on the-go idea.
F&B companies answer the quick fix needs through smaller and pre-packed options. For example, hybrid yogurt dessert cups can be consumed for breakfast, taken in-between meals, or enjoyed as a dessert. Packaging the toppings in a separate pod attached to the yogurt cup offers a mess-free substitute for convenience-seeking consumers.
We are getting more health conscious.
The single-serve snacking trend synchronizes with global wellness trend, opening up the market for “better-for-you” snacks. As the Asian market shifts its focus on conscious snacking habit, the emerging snacking trend drives our focal point towards sustainability and ethical sourcing, production methods and healthy snacks.
Today, millennials and Gen-Zs are the primary snackers who incline towards better-for-you snacks to quell their intrusive hunger and stay energized throughout the day. Healthy snacking is driving away from categories such as biscuits and chips to nuts, seeds and trail mixes.
The nuts and dried fruits market has seen a growth rate of 58.3% over three years in China — ensuring APAC has the highest share in the global market. Similarly, 92% of Indonesian snackers rank vitamin-rich, low-sugar, and fresh as the top three preferences in their choice of snacks – re-defining Asia’s snacking attitude towards a more health-conscious habit.
We’re more socially responsible and demand that from others.
Mindful and responsible snacking emphasizes current CSR efforts—sustainability, ethical sourcing and production. The younger generation of snackers are more wary of attributes on how the ingredients were sourced and manufactured. These consumers feel responsible for their purchase and its impact on societal concerns such as the welfare of the employees, animal rights and global sustainability of the environment. This is clear evidence on the growing importance of “snacking with purpose” more than to passing a craving.
We are (re)choosing to be vegan.
This global trend of responsible snacking fuels Asia’s vegetarian/vegan snacking culture. Plant-based alternatives feed an incredible variety to most Asian’s snacking habit. Being a vegetarian is typical in Asia due to religious reasons. The vegetarian/vegan snacking trend is not a new phenomenon but a revived terminology that’s being hyped by western culture and social media.
In summary, snacking has evolved from a hunger pang solution to a sustainable and healthy lifestyle. But let’s not forget our millennial generation and Gen-Zs provide rich information on their changing food habits that keeps us on our toes. They differ and customize based on the geography and lifestyle they carry.
Brands need to continue paying attention to identify which new product development (NPD) suits their evolving Asian consumers. In practice, we encourage opting for convenience that promotes healthy eating and reduces waste with a lower environmental footprint.
About Noorul Malik: Noorul is the Marketing and Communications Executive, APAC. With 3+ years of experience in corporate and consumer marketing spanning across CPG, healthcare and blue-collar industries. Prior to SGK, Noorul has serviced clients such as Sanofi Pasteur, Amgen, Cardinal Health and ExxonMobil.
Bridging the Gap: High-Volume, Short-Run Mock-Ups
Product packaging is a brand owner’s strongest asset. It is the best and most consistent vehicle for conveying your brand’s quality and messaging because it is the only brand collateral across all of your assets that consumers constantly interact with from the shelf to final consumption.
In fact, according to a survey by L.E.K., packaging is a key driver of brand growth, noting that “a full 90% of brand owners say that packaging is important to their brand’s success.”
But product packaging is also highly susceptible to fickle consumer demands and market forces. Consumers want a premium look but a personalized experience. They seek convenience but want to minimize environmental impact. They are concerned about maintaining freshness but dislike the use of plastics. And brand owners have other factors to consider, such as its appearance on shelf as well as on e-commerce channels and it’s use in marketing campaigns of all types.
It’s a complicated landscape, one that requires the agility to pivot quickly when consumers’ evolving demands collide with the brand’s marketing initiatives. It requires the ability to test products in market, to create high-volume, short-run samples quickly for marketing events, and to customize packaging seamlessly to your events.
The answer to these challenges is packaging mock-ups, prototypes, and sales samples, which serve a range of purposes from exploratory design and marketing support (produced in small quantities) to retail engagement and large-scale marketing events (produced in large quantities). They allow marketers to test both the form and function of their packaging, personalize brand experiences, and stage targeted marketing events.
However, suppliers must be able to produce a range of quantities, both small and large, to meet brand owners’ various needs. One of the biggest challenges is finding a partner who can produce print-quality packaging in quantities large enough to meet brand owners’ marketing initiatives without the cost or inflexibility of a full-fledged press run.
Producing volumes in the thousands or even tens of thousands can stretch the capabilities of traditional suppliers who are more accustomed to producing a small number of beautiful, highly embellished product prototypes. Their process is highly manual with long lead times and intensive labour. Further, their equipment isn’t able to handle large volumes, resulting in increased billable hours and extra labour to fill the gap. The inability to meet demand for large-quantity, print-quality packaging is not just a matter of technology but also of process.
So how do brands currently navigate this?
Often, they seek the help of the printers themselves. The printers are equipped to deliver the volumes, but asking them to accommodate the tight deadlines of a last-minute marketing initiative is untennable.
Additionally, there is also the risk of significant material waste if these run on the production line, with many printers requiring an extremely high minimum volume order.
Thus, a gap exists between the volumes most mock-up providers are capable of delivering at a palatable price and the feasibility of using a printing plant in place of a mock-up supplier. However, there’s a smarter solution: one of your key supply chain partners has the right process combined with the appropriate technical capabilities to bridge this gap, and it may not be one you have thought of before.
Let’s walk through an example:
A brand’s marketing team must produce sales kits for the national sales force, requiring the creation of 2,000 Doypack pouches each for 3 distinct SKUs, totaling 6,000 units. With only 4 weeks until the project is to begin, the marketing team learns that their usual mock-up supplier’s pricing is unrealistic based on the high volume and tight timeframe. Their production printer indicates it would take 8 – 10 weeks to complete a run of the pouches and has a minimum order of 20,000+, which would delay the product launch and listing opportunities for at least a full fiscal quarter and result in significant waste.
Frustrated by the lack of options, the marketing team engages their artwork/prepress agency to help map out a solution. This agency is familiar with both the printing requirements of the product and is a trusted partner within the brand’s marketing supply chain. They have a deep understanding of the business challenges this brand in particular is facing.
Based on their expertise, they recommend the artwork file as well as the production material specification and colour Epson proofs required to execute the project be sent to their internal mock-up production team. The mock-up team proposes using a combination of either digital printing and commercial finishing equipment or a traditional flexo-press to deliver the volumes in time.
After applying the print profile and creating the printing plates, the mock-up team produces the Doypack pouches using the exact same materials the printer would have used, but they were able to deliver in the 4-week timeframe using only the raw materials required for the project itself. The marketing team receives the required volumes for the product launch, and the project is deemed a success.
So it’s the prepress partner to the rescue?
It’s not as crazy as it may first seem. In fact, it’s the smart solution for your high-volume short runs. Your prepress partner knows your brand standards and guidelines intimately; they have immediate acces to your artwork files and can quickly adapt your assets to a customized SKU; they know how to manage substrates and color to achieve optimal print quality; they can produce the required plates internally; and they have the capacity to manage larger-volume runs that don’t meet the minimums of your printers.
Moreover, your prepress partner bridges the gap between traditional mock-up suppliers and your print partners, offering both the capabilities and the flexibility the others cannot.
A combination of high volumes and short lead times shouldn’t mean disaster for your marketing intiative. It’s just a matter of picking the right partner for your needs, and your prepress partner could be just the hero you need.
Employee Spotlight: Dino Parisi
At the SGK office in Sydney, the team is lucky enough to have a mock-up artist producing premium pack replicas and prototypes for clients. A Sneakerhead and passionate Italian, Dino, more formally known as Placido Parisi, has transformed and evolved the mock-up capability for the Australian account teams.
He started as a designer and prepress operator in 1993, where he learnt everything he knows about colour and print for packaging. In 2010 a job opportunity came up which provided the stepping stone to start learning the art of making mock-ups. He joined us in early 2018 and has been on a mock-up mission for SGK clients ever since.
Recently, we sat down with Dino to share his experience in the packaging mock-ups world and address how the industry has changed.
Q: There is both art and science behind the production of mock-ups — how did you get started in this area?
Making things is something that I've always had a quiet passion for since I was young. As a kid, I was pretty good at drawing and assembling items that involved cutting, sanding, painting and gluing.
My true calling came a few years ago when I applied for a job which required Illustrator and Photoshop skills, but also involved building physical prototypes. That's where my passion for modelling and assembling kits clicked with my job requirements; and here I am.
Q: From your perspective, why do brands commission the creation of packaging mock-ups? What are some of the best ways that brands have used them?
I believe brands use the mock-ups as a way to visualise a design which they can feel and touch. In most cases, it serves as a trophy of the final product for their innovation process.
Most of our clients are accustomed to viewing their products as flat proof. However, it does not provide them with accurate representation of the original product. A physical mock-up helps to visually illustrate the look of a finished product which could help expedite the approval process of an artwork.
Also, a mock-up is created to be viewed in the environment and surroundings in which it's going to be displayed and viewed by the buying public.
Q: What are some of the ways mock-ups have supported brands in their NPD process? Would mock-ups be useful in figuring out the right colour and finishing?
Mocks ups are beneficial for identifying minor elements that may require additional attention for improvement. Firstly, it is useful in exposing various features that make up the finished product, such as colours, special effects (like spot gloss, metallic finishes, matte finishes), sealable strips, gussets, print, distortions and alignment issues.
Secondly, mock-ups enable the finalisation of minute details, such as adding or removing specific elements and final touch-ups before mass print production of the actual product.
Q: Getting mock-ups delivered quickly enough is one of the key challenges our clients face — how do we mitigate this?
We work closely with clients to retrieve updated and detailed information before the job begins. Following that, a realistic timeline is scheduled to meet the client's deadline as well as the timeframe needed to source for unique substrates.
Q: Could you give us any interesting examples of projects we've delivered? For example, projects that have seen us go the extra mile to ensure success, or where the final deliverable has been particularly innovative/creative?
There are several occasions where we've delivered unique mock-ups with the use of basic or limited resources. Recently, we developed a confectionary mock-up using only render images (i.e. without the availability of final artwork files). The outcome was very positive, and the client was pleased with the result.
On another project, we created a flexible carry handle to test a concept. The handle had artwork on it and is designed to work in combination with a shrink sleeve to support the weight of the product. In this case we were able to combine our print capability with some filament web packing tape which is very supportive and enabled the mock-up to be a functional prototype.
For jobs involving boxes, we have delivered a better-quality product by cutting the box first and printing it later. This way the knife has less chance to scratch the print when it cuts.
Q: Many brands have made a commitment to have their packaging be fully recyclable in the next 10 years. Would you consider physical mock-ups to be a good tool for brands to pilot new sustainable packaging materials? What are your thoughts on how to capitalise on it?
I believe that mock-ups will be highly beneficial for projects that are switching existing packaging to sustainable packaging. Mock-ups will be able to define the areas that could work well for the project and identify potential errors that arise.
To address issues pertaining to sustainability, it would be good for us to start reducing all of the plastic-based media that we use for bags, pouches and wraps and replace it with an eco-friendly option. The use of various colours could be minimised or replaced with alternative options that could still successfully deliver product image across embossing, debossing, cut-outs or natural-based varnishes.
With our expertise in this field, we could advise our clients and work with them to innovate and avoid the use of elements that increases complexity towards achieving a sustainable product.
About Dino Parisi: Dino produces mock-up boxes, labels, shrinks, pouches, bags, tubs and wraps (and will gladly get stuck in to work out a way to produce other items) for Australian clients such as Woolworths, Mondelez, Mars, Coca-Cola and more. He has also been using the large format print capability to produce colourful, full-height graphics to liven up the Sydney office.
If you are producing mock-ups and feel you could benefit from Dino’s wealth of experience, call the Sydney office on +61 2 9463 6700.
Designing the Future of Packaging
This blog post has been contributed by Meenawat Tonyoopaiboon, Client Engagement Director, SGK.
Packaging is a vital tool that helps build a concise brand personality, attract new customers and retain loyal brand advocates. Visual communication through packaging can create either positive or negative sentiments towards the brand. It is imperative for brands to develop innovative and attractive packaging that resonates with new-age customers – customers who are more tech and mobile-savvy.
According to a recent report, 1.5 billion people in APAC will have a smartphone by 2020, and the number of mobile users is expected to grow exponentially with increased access to technology. As technology is more pervasive than ever, it improves accessibility to products and services at the forefront of the consumer purchase journey.
For Asian consumers, convenience to better education and lifestyle improvements demand quality in the products purchased.
With 80% of shoppers researching products online while shopping at retail stores, brands need to be relentless in creating an omnichannel experience connecting consumers at every touchpoint of the consumer journey. That means flexible adaptation for consistent delivery of brand experience throughout all channels is key to driving brand authenticity, quality and relevance.
The dynamic nature of online channels creates an additional layer of complexity for brands to adapt packaging, product, and print innovation efficiently. Creative and innovative packaging is required to compete with the constantly changing digital landscape.
The transition of 2D to interactive, media-enhanced packaging allows for interaction with the brand even when the product has left the store. Increased engagement with the packaging beyond the original use of the product ensures the brand captures the top of mind position influencing repeat purchase.
Packaging born out of collaborations between a brand and Key Opinion Leader (KOL) can break free from traditional packaging style and enter an unexplored creative territory. Introduction to disruptive designs complements product innovations that are now steered towards personalization and product functionality.
Design of packaging has evolved from a single-point marketing tool to creating a wealth of brand marketing opportunities. Consumers are breaking free from the linear purchase making model to interacting with the brands throughout their purchase journey and post-purchase experience.
Tech-savvy consumers embrace connected packaging integrated with technology advances or packaging that resonates with their personality. The shift of this consumer behaviour generates more opportunities for brands to combine technology and innovative pack designs — all working towards creating a brand community of loyal consumers.
Let us help you in developing the best communication tool to maximise your reach amongst your valuable customers. Connect with us here.
How to Avoid the Top 5 Pain Points Associated with Producing Packaging Mock-Ups
This blog has been contributed by Jason Leggett, Senior Account Director, Schawk Prototypes.
Securing mock-ups, prototypes and sales samples shouldn’t be painful. Often expensive, time-consuming and frustrating, yet a necessary and valuable tool that when effectively executed at the right time, delivers significant results.
There may be difficulties that brands understandably feel are intrinsic to this process. They need not be. Implementing a smarter packaging mock-up solution would mean getting the right mock-up and the right value for every phase of the new product development process. Creating the conditions that allow for consistent success within this process means identifying the root causes of every brand’s frustrations, and ensuring your chosen partner proactively engages in mitigating and solving these issues.
Here are 5 of the most frequent pain points that marketers and packagers experience.
1. The Quality Differs From Project to Project
Brands often look to different partners to produce mock-ups for different stages of packaging development. From initial design concepts, to consumer research and sales sampling, quality is often the first variable to become compromised. This effect is compounded by multiple partners present across markets and brands. The consequence, is a diluted consistency in production and the risk of suppliers that ignore the reality of production print results, leaving the marketing and sales team confused as to what and where things went wrong.
To comprehensively diminish the risk of quality and expectation becoming misaligned, you can:
- Reduce the number of suppliers in the mock-up supply chain. This will, in turn, reduce the number of variables that contribute to the final product, minimizing the chance that the mock-up diverts from its conceptual intent. Choosing a single partner with a standardised workflow will also ensure brand consistent colour and quality globally, regionally and locally.
- Strategically insert the partner’s print expertise in the correct moments. This is an effective method to mitigate against unrealistic mock-ups from giving a false indication of print feasibility.
The last thing a brand manager wants is to impress leadership with an innovative product idea, only for several months realise the final product is visually inconsistent due to print incapabilities. Up-front print expertise negates this risk and is a fundamental requirement to ensure that the quality of the mock-up is aligned with the characteristics of the printed packaging.
2. It Doesn’t Match The Approved Design
As important a quality as consistency is, understanding brand characteristics and the intention of the packaging design is key to executing effectively and responsibly. A weak understanding of brand details leads to a misdiagnosis of mock-up needs and the final deliverable can be an inaccurate extension of the intended design, with glaring deviations from brand design standards. This risk is minimized by collaborative briefing with mock-up experts to ensure both parties are in alignment.
This element is especially critical for beautified / “hero” mock-ups as the design intent is intentionally misaligned with the final product to emphasise certain aspects of the packaging. These requests should be briefed with an experienced mock-up expert, to ensure that brand aspects are understood and executed accordingly.
It isn’t enough for the supplier to just know how to create mock-ups. The right expertise needs to extend to unique client features and characteristics; which the client will find has innumerable benefits in the short- and long-term.
3. The Price Exceeds The Estimate Quoted
It’s possible, and expected, that the variables that determine the price of a mock-up be laid out in simple, easily understood terms. However, this is often not the case.
A common reason for confusion in the pricing process is hidden costs incurred during mock-up development. The variety of different methods and techniques employed to produce certain effects and finishes can be buried within the cost of creative development. Without these being clearly defined in pre-production, the final invoice may present some surprising and often unnecessary costs.
Ask your partner to break out your mock-up costs into simple steps, including file processing and set-up fees plus a per unit mock-up fee. Understanding these components helps guide brands to determining the correct quantity. One of the most common mistakes brands make when engaging with suppliers is misunderstanding that the up-front fee can account for a high percentage of the total cost. Additional mock-ups are passed up because the client has projected an inaccurate final price, and the opportunity to maximise value and market benefit is lost.
A consultation with the commercial expert ensures the job requirements are clearly defined. The expert will ask you key questions about the project and then work with you to tailor a mock-up solution that best serves your needs. The resulting price of the order will clearly be presented so that there are no “hidden fee” surprises upon final invoicing.
4. It Takes Much More of Your Time Than You Imagined
Managing mock-up projects is not the best use of any marketer’s time. Your time is better spent innovating, planning and executing on advancing their brand’s awareness and presence in their category. Brands have an opportunity to implement a total solution by integrating the production and project management of mock-ups into the wider marketing supply chain.
Wouldn’t it be great if all the technical details of a mock-up order were already taken care of? A smart partner can take the file assets, understand how the designs will translate from a printing perspective in production, and quickly and easily share all the necessary information with their internal production teams. This will ensure the successful replication of the final packaging idea, without requiring time-consuming hand-holding from brand stakeholders.
Integrating mock-up production with other workflows is a transformative opportunity to facilitate a simplified and streamlined final process. Project management from brief to delivery reduces the total number of touchpoints required from the busiest of brand functions.
This gives you back some of your most valuable currency: Time. Both, in terms of the time required to comprehensively give each opportunity and mock-up requirement the attention to detail necessary, and by shaving critical days and hours from the total production cycle.
5. They Look Great, But They’re Late
Improving speed to market is a challenge facing every marketer and brand manager. This, in-turn, makes tight timelines a reality of mock-up production. A product or packaging idea is generated and the window to actualise the opportunity can be gone in an instant.
In this business, the ability to quickly and effectively capitalize on a growing trend, or a unique market event really can be the difference between a project’s success or a missed growth opportunity.
Because of these pressures, the correct approach is to ensure that these time constraints don’t reduce the scope of creativity in which you can innovate.
Technical experts can proactively anticipate future issues and avoid them all together, to smoothen the production and delivery of the project. Combined with the thorough understanding of various print production methods and a myriad of substrates, inks, and laminations, you will be advised on the options available to achieve your goals, within the required timelines.
This way, you get the maximum value available, in all time-frames.
If you would like to learn how SGK can implement a smarter packaging solution into your marketing supply chain, please contact: Jason Leggett, Senior Account Director, Schawk Prototypes, Jason.Leggett@schawk.com.
About Jason Leggett: Jason brings 15 years of experience helping many of the world’s leading brands who rely on SGK’s technical packaging expertise and its smarter solution to manage the production of packaging prototypes, mock-ups and sales samples to maximize value for all stages of the new product development process. Jason ensures each packaging prototypes solution is crafted specifically to fit the precise business objectives and needs, providing the right solution for each situation to help our clients achieve higher brand performance.
4 Tips for Strengthening Your Packaging Graphics Production Process
This blog has been contributed by Suzanne Mason, business development director at SGK.
Having held a number of associated roles working with clients from agency side and supply partners from client side, here are some observations that I have made on how to optimise the packaging graphics production process.
1. Select the right supplier(s)
An important first step is to take time to define your needs, the drivers for change and what a successful relationship looks like to your business. Identify and rate the criteria for this and use these criteria to drive the selection process of course, but also beyond this as you continue to develop the partnership. Look for a partner who can use expertise, best practise learnings, technology and innovation to help drive you into optimisation.
Throughout the process, be open to redefining the means of delivering against your needs – a great supplier will bring well-considered insights from their experience with other clients from within or outside of your industry sector.
2. Consider the timing
I have found that it is often the case that a specific initiative drives a required change in process. Whether it be internally driven or externally driven by regulatory obligation for example; careful planning and communication are key.
Consider all of the areas of the business that will be impacted and that will contribute to the full picture of change and create a working group with subject matter experts from each. This not only aids engagement but also, as a cross-functional team, bringing together years of combined experience and a plethora of new ideas, you will deliver the optimum solution. In a global business, work hard on achieving up front local buy in to the global process or standards.
Communication at the early stage will help to eliminate lengthy discussions and challenges once the process is embedded and will keep you on track. Making sure that the business as a whole understands what is required, and that the organisation is ready to commit the time and the resource to make it work, is critical to success.
3. Focus on the inputs
The quality of the outputs and the ability to achieve right-first-time and avoid costly and time-consuming amendment loops relies heavily on the quality of the inputs. Take time to define what good looks like in the briefing process and strive for a smooth one-hit collection and transfer of all relevant data, ideally routed through a robust system. By maximising discipline and control at the beginning of the process, you will reap the rewards at the end.
4. Link packaging artwork creation to your digital agenda
The artwork step is the perfect opportunity to build your E-commerce requirements. By extending the artwork process to include the creation of renders, you will minimise the touch points, reduce costs and ensure the final and correct assets are used for your online presence. Define and brief the appropriate rules and specifications to ensure a smooth workflow every time.
The packaging graphics production process requires collaboration from many sides of the business. To ensure smooth transition with any organizational change, be clear with expectations, and maintain accountability when working toward goals. Communication, experience, and intuitiveness will go far when strengthening your process.
How Connected Packaging Can Boost Your Marketing Strategy
Product packaging has long lived outside of the traditional 4P’s of the marketing mix. As a refresher, those P’s consist of: product, price, promotion, and place. It’s about time we as marketers make room in the mix for the materials that keep goods safe, fresh, and protected: packaging.
Connected package applications apply to when consumers scan a code on a package from their smartphone while in-store, and are directed to a webpage to learn more about the product. This opens up a vast opportunity for brands to differentiate with the types of experience and information they offer to consumers.
The demand for this technology may be attributed to the below factors:
Mobile access. It’s about time we start looking at packaging from a mobile-first point of view. Consumers are leveraging their smartphones as a touch point to get more information about what they are purchasing.
While PC purchases still represent the majority of online shopping transactions, technology continues to advance in the food and beverage industry; and the expectation of the consumer follows suit.
In fact, 82% of smartphone users are consulting their phones on purchases while in-store. This is driving a cultural shift in how we shop and what we expect when we’re shopping.
Cultural change. There’s no doubt, we live in a world of high connectivity. As shoppers, our baseline for what is available and the expectation of where to get that information has changed.
It is natural that the need for transparency and information moves into the world of consumer products. By catering to this need, brands can instill trust in their consumers — enabling much more flexible and dynamic delivery of content than the printed pack alone.
C-Suite demand. C-Suite is energized by the new connectivity and changes in the industry. By moving labeling off pack and onto smartphones, brand owners could experience significant supply chain agility and savings.
To adopt a connected package strategy, an entirely new supply chain must be built to provide labeling information in a new way. Detailed product information must be collected and organized for each product — creating an accurate data record of what was printed on pack.
Skepticism of big food and big business. Consumers are skeptical whether large companies share their health and nutritional values. In fact, according to a recent Label Insights Shopper Trends survey, 98% of consumers believe it is important to consider the ingredients in the products they buy.
One initiative looking to provide those insights is the GMA SmartLabel™ — a website for brands to provide information to consumers about their products. The brand pages must be hosted for public use, and any labeling change on the pack will require a new SmartLabel™ page to be created to reflect those changes. Brand owners will need to accommodate having multiple packs with different labeling in the market at the same time.
By leveraging technology, connected packaging provides added transparency to enhance brand loyalty, increase purchases, and more.
As technology continues to disrupt the packaging industry and the entire marketing landscape, SGK’s Client Solutions Team is ready to help clients navigate these headwinds and optimize their marketing supply chain to allow them to respond with the level of agility required today to succeed.
New Food Labels Aim to Reduce Waste, Provide Clarity
As many food shoppers know, there is a lot of confusion around the many label phrases that live on the products you buy. It is often difficult to decipher what to do with products once they have reached the date marked on the packaging.
In a recent BrandSquare webinar, Megan Stasz, senior director for sustainability at the Grocery Manufacturers Association (GMA) identified that there are anywhere from 10 upwards of 20 different date label phrases that exist on consumer packaging in the United States.
Variations of date labels may include statements like:
- Sell by
- Use by
- Best by
- Freshest on
- Born on
This inconsistency in date labeling contributes to misunderstanding about how dates on labels relate to food quality or safety. From a food waste perspective, the single largest category of food waste sent to landfill is coming from U.S. households.
By bringing a streamlined and standard wording to packages, the GMA plans to help clear up consumer confusion about product date labels and reduce food waste.
Watch the entire webinar with Megan Stasz by clicking the image below:
A study conducted by the National Resources Defense Counsel (NRDC) in conjunction with the Harvard Food Law and Policy Clinic indicated there is in fact consumer confusion regarding these labels, and they are sometimes causing consumers to discard food unnecessarily.
The Institute of Food Technologists found that 25% of consumers discard food based on the sell by date, while 10% believe eating food past its best by date is a serious health risk.
Recognizing the challenge of consumer confusion, the food manufacturing sector represented by the GMA and the retail grocery sector represented by the Food Marketing Institute (FMI) teamed up to develop a voluntary national standard to streamline confusing phrases on all food labels to just two dates: “BEST if used by” and “USE by”.
What do the label phrases actually mean?
The “BEST if used by” phrase is to be used to indicate product quality. This includes products like cookies or crackers — things that if you eat them after the date on the package, they might not taste quite like what you’d expect, but the product is still safe to consume. For certain products, this may be combined with and “or freeze by” label.
The “USE by” phrase is to be designated to the very small subset of highly perishable products that do have some safety concerns over time, such as food spoilage or sunscreen SPF.
The voluntary national standard for the United States was developed by a working group of about 25 different companies representing both the food brands as well as the major retail grocery stores in the United States.
The idea is to phase in the two phrases now, with the goal of broad industry adoption nationwide by summer of 2018. While widespread industry adoption is urged, companies have the flexibility to make changes in a way that ensures consistency across their products.
Another way the GMA is providing more information and guidance to consumers is through its web-based tool called SmartLabel™. This is a QR code on package designed for consumers to get more information and understand in-depth details regarding the products they buy.
REGISTER for our upcoming BrandSquare webinar with Jim Flannery of the GMA as he presents: SmartLabel™ Technology for Shopper Empowerment and Trust
4 Ways to Make the Most of Your Variable Marking and Coding
Packaging codes benefit consumers, producers, retailers, and brands in several ways. As a form of data and verification upon purchase, variable markings should not be thought of as a “necessary evil”. In the first 2016 issue of Patterns, Liz Churchill and Lyndsey Farrow of Matthews Marking Systems, offer insights on how to make the best of your variable marking and coding to make a greater impact in the decisions consumers make in aisle.
Documentation of freshness. Think of this. Every smart shopper reads the “best buy” or “use by” code to ensure the product is fresh. Also looked at frequently is the country of origin labeling (COOL), which consumers may use to make buying decisions. Albeit controversial, shoppers will typically get their way in the marketplace by demanding to know where their food came from.
Authenticity and safety. Bar codes and serialized markings are used to identify individual lots, shipments, packages of drugs, cosmetics, and other products for purpose of authentication and traceability. This is extremely important for supply-chain management and assurance.
This added safety helps aid tracking from source to consumer, and to recalled products in the event of a problem. Bar codes and markings may also support compliance and local regulations, like tax codes or disclosure requirements. This ensures the supply chain is efficient and accountable, which gives consumers confidence that the products are genuine and safe.
“All types of identification codes are about brand trust. The information printed on the package isn’t just data. It’s a story about where the item has been and how fresh it is,” says Lyndsey Farrow.
Better consumer experience. Variable codes and personalized graphics can also be used to engage shoppers, and encourage them to take particular actions. Serialized codes can be printed on many things, including loyalty cards, coupons, promotional flyers, inside bottle caps (think: Snapple), and more. This data is importation to gain more insights into each shopper’s behavior, and helps determine where they are buying products, whether online or in-store, and even which promotion the consumer has acted on.
Strengthen and protect the brand. It’s important to note that most importantly, these codes create brand trust. If the code isn’t present, consumers may not trust the product is fresh, or authentic – and could lead to consumers actually abandoning the purchase altogether. This is why markings need to be legible and provide helpful information.
With print quality, data management, and cost control being the three main concerns of brand owners, packaging engineers, and production line managers, it’s important to turn these potential issues into a necessary good to create opportunities to improve production processes and help the brand standout in the marketplace with its variable marking and coding efforts.
“Variable marking and coding isn’t a necessary evil – it’s a positive good that benefits the consumer and the brand,” says Liz Churchill.
Read the entire article in the first 2016 issue of Patterns: