Packaging Opportunities for Fluid Milk

Dairy Foods, June, 2001

Selling More Milk

Milk Packaging: It's more than a Container

Milk containers have evolved from the glass bottle to gabletop to plastic. Some might think it ends there, others however, envision a diverse offering of milk packages--packages that are more than just containers.

This packaging meets the needs of distributors, retailers, foodservice operators, and most importantly, the final end user--the consumer. It affects the entire supply chain in a positive way, and as a result, sells more milk.

"Packaging can give customers (distributors, retailers, consumers, etc.) a reason to buy a product," says Bruce Harte, director of The School of Packaging at Michigan State University, East Lansing, Mich. "It can provide a uniqueness, real or perceived, that a customer is willing to pay to have."

Processors must know the needs of customers and how customers interact with the package. They need to evaluate every nuance of the supply chain, and take note of the demands made on the package. Processors must identify packaging that allows them to align themselves with the strategic goals of various customers.

Today's consolidating dairy processing industry, which includes a consolidating supply chain, needs to focus on value-added products, packages and services in order to stay competitive. The dairy industry is in the midst of a revolution in packaging logistics. Suppliers are listening to the consumer and responding.

Greg Soehnlen, v.p. of operations for Creative Edge Design Group Ltd., Canton, Ohio, challenges processors to "think out of the bottle" regarding packaging for fluid milk. Consumers are continually complaining about the gallon jug being difficult to manage. "Well," he says, "whoever said it had to be a gallon jug. We decided the time was right to change the rules in the milk business."

Indeed, consumer research obtained by the Fluid Milk Strategic Thinking Initiative states: People who consume higher volumes of milk or have larger households are more likely to purchase gallon-sized milk, but most consumers view the traditional gallon as clumsy and large.

Michigan State's Harte adds, "One size doesn't fit all." He suggests using market segmentation to design packages that are just right for different groups of people, in the volume desired and ready to use in a variety of situations.

"Consumers expect packages to perform," he says.

With this knowledge, Creative Edge has developed what consumers are referring to as a "milk pitcher." This is because the 3-liter (102 fl oz) square-shaped container looks and functions like a pitcher. An ergonomic design, which includes a notched top and ribbed sides, along with a side spout, enables consumers to more easily tip the package and pour. This is a feature very welcomed by the youngest and oldest milk consumers. The handle on this uniquely shaped jug is also enlarged, making it easier for larger hands to grasp.

Creative Edge's sister company, Superior Dairy, also in Canton, Ohio, blowmolds these jugs on site and currently is the sole producer of milk in this package. The package is available for licensing to other dairies. Currently, Superior distributes the milk throughout the Northeast under various store brands and private label.

Various Dallas-based Suiza Foods Corp. dairies around the country bottle the Milk Made Better Line[TM] (i.e., lifemilk[TM] and kidsmilk[TM]) in what the company refers to as the Smart Jug[TM]. This 57- or 114-oz container has a larger-than typical angled handle on top and finger grips and grooves at the bottle base to make it easier to tilt the bottle while pouring. Also, the pour spout is located at the front of the container rather than in its center. This makes it easier to prevent dripping.

A very new player in the alternative milk jug business is American Dairy Corp., Minneapolis. (see sidebar on p. C).

President Jim Odney says that before he developed the Deja Moo container, people kept saying that there are two things wrong with gallon jugs: They're too heavy for kids and a full gallon tends to overstay its welcome.

The Deja Moo 3-liter jug has rounded edges and an extra-sturdy accordioned base that offers better handling and fewer spills. Odney emphasizes that the new jug size is proportionately reduced in price, so consumers are not paying more for less milk, just the same price for improved packaging.

All of these non-traditional sized milk jugs have narrow-profile bottoms, which makes them more accommodating to home refrigerator doors.

The Creative Edge bottom, which is 28-sq-inches (typical milk gallons have a 36-sq-inch bottom), enabled the company to introduce a new concept to the world of milk distribution: caseless shipping.

"These bottles are designed to be structurally loaded," says Soehnlen. "We have eliminated the need for milk crates." (See photo on p. B.)

This new way of shipping milk has enabled Superior Dairy to implement the use of real-time data to fulfill milk orders.

"Superior Dairy is an order fulfillment dairy," he says. "This eliminates inventory of a perishable product and minimizes distribution costs.