Evolutionary strides

Dairy Field, Apr 1999 by Sivak, Cathy

Dairy packaging evolves as graphics, shapes, and materials make the big leap.

Dairy industry packaging is catching up with the rest of the food chain. As a new generation of dairy packaging evolves, the industry is becoming better equipped to serve the needs of consumers and customers alike.

As processors continue to move away from the commodity mentality and into a brand-oriented strategy, packaging benefits. Across the board, dairy products offer increasingly lively graphics on packaging that is beyond functional.

A snapshot of the dairy industry's new direction can be found in the brilliant array of packaging entered in the Achieving Excellence Marketing Awards, displayed and conferred at International Dairy Foods Association's SmartMarketing '99 conference. An independent panel of marketing and advertising professionals found itself impressed by the industry's obvious gains in packaging prowess, notes Tom Nagle, vice president of marketing for the Washington, D.C.-based association.

"The judges we brought in from outside the dairy industry were surprised at the level of aggressive and creative branding that was taking place. Several of the judges were still working from the mindset that this is basically a commodity product," Nagle says.

While consolidation makes building on-package brand equity increasingly important, processors are literally changing the shape of the industry. From fluid milk to ice cream, packaging offers new graphics, shapes and materials.

Convenience is a major factor as processors play to the needs of on-the-go consumers. Single serve is now well established in the fluid industry, and is reaching across categories. At the same time, packaging materials and processes are offering extended shelf life and increased distribution opportunities for paper and plastic packaging.

Jed Davis, director of marketing resources for Cabot Creamery, Cabot, Vt., has noted the industry's increased attention to packaging developed to serve both consumers and customers.

"As manufacturers, we are playing to two bosses. We have to make sure the consumer is going to be pleased with the product and the packaging that it's delivered in," says Davis. "At the same time, we have to be every bit as concerned that our middleman, the retailer, is even more pleased with the packaging, the ease of handling of the item, the ease of display, the ease of promotion, and all of this stuff makes everybody smile in the end."

Cost is no longer the sole factor determining packaging choices for the dairy industry. "What we saw in the Achieving Excellence submissions were processors using packaging to create a more differentiated, branded product. That speaks to factors other than a pure cost approach to packaging," Nagle notes. "The increase in packaging cost is an investment with a return - that's what commands a premium price. If you're just dressing up a commodity product in a nicer package, then cost may remain a primary consideration."

Milk On the Move

Led by Franklin Park, Ill.-based Dean Foods Co. and its Milk Chugs product, single serve brings a new life form to the fluid milk category. Indeed, Dean Foods was the big winner at the Achieving Excellence awards, receiving the Best Overall Award for Marketing Excellence for what IDFA cites as "revolutionizing milk consumption with the introduction of Milk Chugs. Their consumer-oriented, on-the-go package for milk has changed the way people think about and drink milk."

Processors small and large have jumped in with bids to become the next single serve success story. Resealable caps, packages that fit in car cup holders and bright graphics are only the first step. The evolution is bringing forth extended shelf life and new distribution opportunities as well as fluid product development that moves milk into new territory.

"What you're seeing now with single serve packaging is an important new idea in the industry that's growing up and becoming more mature ... the industry is working to make those packages make money and increase distribution," Nagle says.

For instance, milk products in vending machines go beyond flavored milks to include milk shake-type products, Nagle explains. "That's innovation and that's what creates a benefit in terms of increased dollar sales for the industry."

Natrel Inc., Quebec, is getting rave reviews for its Natrel Moostache product, introduced in Quebec and Montreal in June 1998.

The white or brown opaque plastic bottles feature raised designs; both bottle and label are recyclable. The Moostache line and its companion product, the Oh Henry! Milkshake, each have a 60-day shelf life. The products are particularly successful in Natrel's custom vending machines. A holographic image changes from the Moostache bottle to the milkshake product and is featured prominently on the machines. Indeed, the company received the Achieving Excellence award in the Best Overall Display/Point of Sale Ad category.

Phoenix-based Shamrock Foods' Rattleshakes product received the Achieving Excellence award for Best Overall Packaging Design. Judges liked the use of the packaging design to appeal to a specific demographic set of targets - men and kids and teens, as well as using the design to successfully incorporate cobranding with the Arizona Diamondbacks baseball team.