Unwrapping The Current Realities of Food Packaging

Food packaging is in the news. Over the past year, there have been more than 250,000 news reports about food packaging. Topics including edible packaging, eco-friendly packaging, phthalates, and single-use plastics are creating headlines and generating interest.  This webcast and podcast is designed to help retail RDs cut through the headlines and gain clearer understanding about food packaging benefits and risks related to food safety, health threats, food waste, environmental impact and more. During this segment, David Smith offers an overview of the current food packaging industry and highlights some of the most common misconceptions. David also provides insights into the myriad of challenges food companies face when evaluating packaging choices, such as compatibility with food ingredients, material sourcing, integration into food processing, food protection/safety, consumer perception, recycling, and reuse.

Transcript

Phil: 0:14

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: 0:45

Welcome to RDBA's Lost in the Supermarket this week. We're gonna unwrap the current realities of food packaging. Now, no question, especially since the pandemic food packaging is in the news. During the past year, there have been more than 200 hundred 50,000 news reports about food packaging, everything from edible packaging to eco-friendly packaging and single use plastics are creating headlines and generating interest. Now in order to help our retail RD's cut through the headlines, gain clear understanding about food, packaging, benefits and risk, as it relates to food safety, health threats, food waste, environmental impact, and more.

Phil: 1:28

What we're gonna do is we're gonna have a great conversation with David Smith. David is an expert when it comes to packaging. And what I love about his bio is it formulates strategies to extract value from science to capture consumer differentiation in the marketplace and to drive sustainable revenue growth. David was in charge of global packaging for J and J, for Campbell soup, and now has his own consulting firm where he helps up myriad a of, of companies and organizations understand what's going on in the food packaging industry and to highlight frankly, some of the most common misconceptions we want to get rid of those today, so that when you're talking to your shoppers, you can also help get the truth out there. David's insights when it comes to food challenges, four companies are critical. You know, it's easy for us to say, oh, you should do this. But reality has to say that, how do we do this affordably? How do we do this? And not risk, you know, product integrity, all of this stuff is so something that's critical for companies and organizations and retail dietitians to, to really understand. So David welcome to Lost in the Supermarket.

David: 2:56

All right. Thanks Phil.

Phil: 2:57

So David, how would you characterize the current state of food packaging here in the us?

David: 3:04

Very dynamic and very exciting and, and tons of opportunity lot, lots of great stuff going on in packaging. And it's an area of great opportunity for companies and for consumers.

Phil: 3:17

And what are some of the challenges that companies are really faced with these days?

David: 3:22

Well, like, like every other industry and situation today, uh, certainly supply chain issues are, are affecting everybody, but, uh, in normal packaging, uh, challenges are providing, uh, safety is, is of the utmost concern, uh, the product, the food, um, and then also providing consumers with a convenient package that works for them.

Phil: 3:47

And what about the whole cost implication for food companies? You know, I remember when I used to buy cheese, for example, uh, it would come shrink, wrapped, or over wrapped in plastic. I'd have to cut it a open. Um, and then either wrap ciran wrap around it or put in a Ziploc bag now, most cheese coming in a ziplock. I'm gonna assume that as a result of that prices went up,

David: 4:14

It's all about consumer value. So sometimes prices go up with convenience. Sometimes they don't because as things can consumer, the companies can do to offset that. So consumers don't necessarily face an increase in costs. So, um, you know, one, one thing my team did many years ago was, was create the, the current Oreo package that's has a resellable, uh, tray prior to that, many of us remember it was in a cellophane bag with a paper label, uh, that everybody hated you had best cookie in the world and the worst package in the world. Uh, that one, we actually were able to offset our, the increases. The materials were clearly more expensive, uh, because we were able to do things differently in the factories and make it a much more efficient process. So overall our costs actually stayed the same.

Phil: 4:59

So talk to me about that decision making process. Uh, so you and your team say, okay, we got the best cookie in the world. We've got the worst package in the world and somebody, you presumably have to go to senior management and say, okay, you know, I want to change our package. Um, what was that conversation like?

David: 5:20

Uh, anytime you want to change anything you had mentioned, I were at the Campbells as well and Johnson and Johnson. Uh, I've been lucky enough to work on really truly iconic brands. Uh, Oreo, certainly being one of them. Uh, you don't mess around with stuff arbitrarily. So you mentioned you wanna make a change in Oreo, anything it's no, it's the first answer, leave it alone. And then it's okay. What are you talking about? And we do it very carefully and, and very thoughtfully and, and lots of input from all over expertise in the company to to make sure you're doing this right. And, and the first thing is of course, making sure this is what consumers truly want making sure we can truly deliver that. The last thing you want is to, to disappoint a consumer buying one of those iconic brands. So it's a very careful step, step process.

Phil: 6:09

So when I look at packaging, I really think of two packages that are the perfect package. One being cans, the other one being glass.

David: 6:19

Yeah, glass glass is great. Consumers really like glass. The, the experience of using it, it, it presents high quality, uh, is very protective, both the can. And the glass that you mentioned are both very protective and, and they really, you know, we didn't talk about it, but the function of the package is really, right there. So they both provide, you know, stability. They, they protect from bad things going in and they protect from good things going out. And, and they do a really good job. Uh, so consumers really like glass glasses, very recyclable as well. Um, it's easy to get into their recycle streams. It's high quality, the negative with glasses, that's heavy for the package,

Phil: 7:02

Exactly where I was going.

David: 7:04

Right. That's really generated a lot of the changes from glass to plastic, um, because of the shipping aspects of, and the weight that's involved. Um, you save a tremendous amount of money, uh, in shipping product because we do product all over the country, if not all over the world. And, and you incur significant costs. We all know what the gas pump looks like these days. So, so the, the transportation issue is a big one, uh, for glass packaging.

Phil: 7:35

And for me, it's even just coming home from the supermarket. If I have, if I've got a bad that has three or four glass jars in it, it's a lot heavier to your point than if it were three or four cans. Um, what are the most common types of packaging that are being used for foods today?

David: 7:52

So you mentioned two. So clearly the metal can, and the cans, uh, consumers are used to for things like soup and stews and things like that are typically steel cans. Uh, so we put beans and steel cans. The other type of can that everybody's very familiar with is the aluminum can typically in the beverage area, uh, again, all the same positives. It, it works great. It's very recyclable. Uh, you mentioned glasses and other terrific one all sorts of plastics. Um, paper is a huge one because all the other packages typically come in a corrugated box, uh, which is paper again, very highly sustainable, very good in the recycled chain consumers. Don't see it a lot. You see it a lot. If you go to a warehouse club or something like that, where all, all the corrugated, there for you to take yourself home in. Bbut it is very recycled. It's almost a hundred percent, recycled corrugated board, um, and then some other plastics to have different functionality. So it's a complicated package in, in those circumstances,

Phil: 8:56

What we're seeing around the world is that a lot of, a lot of retailers want to get away from plastic packaging, more into cans, more into glass, uh, some even, you know, bring your own containers from home and, you know, buy bulk and put it in those container nurse. Is this move away from plastic good for us? Is it, is it threatening to the, the integrity of the food, the safety of the food?

David: 9:26

Listen, I think we've gotta be responsible and that's the main thing. And there there's absolutely a place for plastic packaging in, in our consumer world. Um, it, it provides a great package. It provides some really positive qualities, as you mentioned, it's much lighter. Um, it, a lot of the packages are see through which consumers really like another aspect of glass, that's a positive. Um, and, and it provides benefits at a, at a very nice cost benefit for the companies. So, um, so I don't think plastics are necessarily bad. I think certainly here in the US, we've gotta get better. At our recycling potential, the, the materials are recycleable, whether or not they're recycled in our, consumer waste streams here in the us. Our municipalities, aren't very well prepared to do that. Uh, there's a lot better situation in Europe and other parts of the world that, um, the municipalities are, are much better prepared to handle the different streams of plastic, the different types of plastic, the different colors, the different materials. Um, but there's a big effort. The, the manufacturers, the packaging manufacturers go globally are very focused on looking at different ways to provide a more sustainable plastic packaging, uh, use one material versus three or four materials in the, in the plastic package, uh, use lighter weight material, um, and, and provide more opportunities to provide recycled material in the plastic.

Phil: 10:58

So let's pretend I'm a food manufacturer. I've got this product, um, you know, you mentioned beans. Um, I want to, I want to go to market with beans. How do I figure out what's the right package for that product?

David: 11:16

Yeah. You know, the, we're typically starting with manufacturers that already have some sort of, um, base of, of equipment. So that that's a big one for any manufacturer. What do you already have? Um, this, the, the equipment to make these packages at the rates we need and the, and the size and, and magnitude of the brands that we have in, in the us in particular, uh, require expensive capital. So, so if you have capital, you want to use that. Um, so that's a big consideration, um, equally as important is what the consumer wants. Um, so CPG companies, as you know, do extensive amounts of research to find what's preferred for the consumer. Do they want the can, do they want a plastic? Do they want to see through, do they want an easy open? Um, so most CPG companies really spend a lot of time, effort and dollars, uh, talking to consumers to find out what they really want. Um, and then we provide it, um, that that's, what are these large companies? And I've been privileged to work for. Many of'em can provide to consumers. Um, sometimes different packages are conducive for different retail environments and, and how that stands up on the shelf, um, and how we can provide that best to the consumer.

Phil: 12:35

So you mentioned the recyclability aspect of plastic, um, how important today, um, to the consumer is recyclability and sustainability.

David: 12:49

Uh, it, it's an interesting one, like many aspects, and I know you've talked to consumers a lot now have a lot of experience in this, uh, where consumers say one thing and their actions aren't necessarily the same thing. I think they have good intent. I, I think we're at a point now, uh, where people understand sustainability, recyclability, all those nice words are, are really important. It's not a, it's not a buzzword, it's not a trendy thing in anymore. It really is important. Um, the issue comes in and are you willing to pay because in today's environment, particularly let's focus on plastic for a minute. Um, recycled plastic actually costs more than the Virgin materials that we get from typically oil based derivatives. So if I'm looking at, you know, one of the common plastics is polyethylene. If I'm looking at polyethylene or polypropylene it's cheaper for me to get Virgin material that's never been used before, right. Made from the, the oil substrate, um, than it is for me to get recycled material, all the cleaning and handling that a manufacturer has to do adds into that co um, we're at a point where it used to be, the quality might not have been so good, uh, for recycled material. Now, quality is excellent. Our, our packaging manufacturers have done a fantastic job of being able to provide really high quality plastic materials, um, both from a functional point and from an aesthetic standpoint, uh, that consumers probably can't tell the difference. Um, the issue comes in in cost and are you willing to pay? So that was an issue I I've faced with a lot of the brands that I've worked on, uh, where we would come as the packaging team saying, we can provide a more sustainable package. Wouldn't that be good? And the brand owners, typically the marketing folks, sometimes the finance guys would, would, uh, come and answer. Yes, but I need it at the same cost. And, and today that's not a, a feasible situation. So you do have to, um, drive consumer value. And if the consumer doesn't see the value of paying a nickel more, a dime more for that package, it's a big challenge to do that.

Phil: 15:02

So, David, I wanna put you on the spot. Okay. One, one answer. Um, if you were to pick one kind of packaging that is the best packaging for food, what would it be?

David: 15:19

I'll answer you what you asked it's, it's impossible because, uh, all this is very customized, right? A specific food needs a specific package, so there's not one answer for everything. Um, but that said, I, I honestly think that the, the mainstays of, of metal cans and, you know, glass is pretty similar. Uh, they're, they're probably the best in that they can provide, um, the functionality that the consumer needs and that the food is safe. The food's high quality, uh, the, who has a reasonable shelf life that you don't have to eat it in the day, um, before it spoils. Um, and for the manufacturers, it provides, um, a good way for them to convey the product that they're making through the supply chain, into the consumer's home. Um, so they do a great job. That's not to bad and the other packaging. And again, it's very, very specific, you know, there's a, there's not one solution for everything. So we do have a, a ton of different,

Phil: 16:23

Of course, cuz you've gotta look at what the ingredients are, how it relates to the package. Um, very complicated, but I appreciate you, um, giving me that one answer. Um, what, what are consumers confused about? What are their misperceptions as it relates to packaging?

David: 16:43

You know, I mentioned one about cans and preservatives cans. Another one was the, the BPA situation that we had a few years ago of consumers thinking this material was really bad. All the science told you there was no issues it's used at such a small level, uh, that there were no, no issues from a real science standpoint, but that said, it caused a lot of consternation. And, uh, we saw as manufacturers, we saw what the consumers wanted and that was to take it out. So we took it out. Um, I think the issue of, of plastics and, and it's, it's very confusing to consumers because it's complicated. So, so there are a lot of opportunities for us to, I think, do a better job of communicating to the consumers, what things they should be concerned with, what things they shouldn't and, and where their options are.

Phil: 17:31

So David, you've got this audience of retail dieticians across the country to you, listening to you. Um, what are some things that you would like to make sure that these supermarket retail dieticians know for themselves about food packaging as well as being able to communicate it to their shoppers?

David: 17:53

Sure. Um, I, I think the first thing or the main thing is really that, uh, packaging is a real tool for them. Um, you know, they want to provide lots of options for, for the consumers to be able to eat, uh, all the great foods that are all over the supermarket in, in all the aisles. So, um, packaging helps them do that by pointing to different areas. So we certainly have the fresh aisle. We certainly have the canned food aisle. We have the packaged food aisle that all these, um, areas and the packages can help the dietitians to make sure that consumers are, are getting, uh, the balanced diets that they're recommending. Um, I think the other thing they can do is look at the packaging to provide, uh, portions. And, um, and I know they do this in a lot of the recipes where they say, gee, you know, one can of this right. Is perfect for a recipe for chili or something like that. So, um, so I think they can really look at the options that are out there in sometimes smaller packaging, larger packaging, um, to, to again, help the consumer, uh, to make better choices out there.

Phil: 19:01

So when, when a shopper goes up to an RD and they say, um, again, I wanna just pick up on a point that you said before, or, um, they pick up a can and they say, you know, what's in this, can, what, you know, how does this product stay so long with a shelf life of six months or a year on it? What shouldn't RD be telling that shopper,

David: 19:26

They should be telling the shopper that that's a really helpful choice. And, um, they, there are no preservatives typically in, in canned food, the canning process itself, uh, which is cooking under pressure, um, eliminates the need for, for preservatives and really does, uh, provide food with a very long shelf life and retain the quality for a very long time in, in the pack. So the can, and the process really provides that to the consumer, without anything artificial needed in that that's, that's really the, the process, the can and the food and the heating process.

Phil: 20:04

Well, David, I could talk to you for hours. Uh, thank you so much for joining us today on Lost in theSupermarket. And I know your insight and your smarts have really helped all the retail dieticians understand more about food packaging.

David: 20:19

Oh, it was my pleasure. Thank you.