general facts about the foodservice...

Determining Criteria for Choosing Packages in the British Foodservice Supply Chain

Table of Contents

Foreword___________________________________________________________ iAbstract____________________________________________________________ ii

1 Introduction_______________________________________________________4

1.1 Background__________________________________________________4

1.2 Problem Statement____________________________________________5

1.3 Purpose______________________________________________________8

1.4 Objectives____________________________________________________8

1.5 Limitations___________________________________________________8

1.6 Project Assigner______________________________________________8

2 Definitions_______________________________________________________9

3 Methodology Study________________________________________________12

3.1 Qualitative and Quantitative Methods___________________________12

3.2 Research Tools_______________________________________________123.2.1 Literature studies__________________________________________123.2.2 Experiments______________________________________________123.2.3 Measurements____________________________________________123.2.4 Case studies______________________________________________133.2.5 Observations_____________________________________________133.2.6 Interviews_______________________________________________133.2.7 Questionnaire technique____________________________________163.2.8 Information quality________________________________________17

3.3 My Methods_________________________________________________183.3.1 Literature study___________________________________________183.3.2 Field studies_____________________________________________183.3.3 Observations_____________________________________________20

4 Theory Study_____________________________________________________21

4.1 What Is Foodservice?_________________________________________22

4.2 The European Foodservice Market______________________________22

4.3 The UK Foodservice Market___________________________________23

4.4 Collaboration in Supply Chain Management______________________26

4.5 Packaging Systems___________________________________________27

4.6 Roles of Packaging___________________________________________284.6.1 Flow requirements_________________________________________304.6.2 Market requirements_______________________________________324.6.3 Environment requirements__________________________________33

4.7 Package Replacement_________________________________________34

4.8 Packages for Increased Quality of Life___________________________34


4.8.1 Infra-structural issues______________________________________354.8.2 Internationalisation________________________________________354.8.3 Food industry including functional foods and ready-made meals____35

4.9 The Package’s Effects on Costs_________________________________35

4.10 How Can a Package Add Value to a Product?_____________________36

4.11 Packaging Demand Trends____________________________________374.11.1 The consumer in focus_____________________________________374.11.2 Product image and branding_________________________________394.11.3 International trade and transportation__________________________404.11.4 New networks____________________________________________404.11.5 Environmental issues______________________________________41

4.12 Packaging Foresight in the UK_________________________________42

4.13 Food Safety_________________________________________________42

5 Empirical Study__________________________________________________44

5.1 Important Criteria when Deciding on a Package___________________455.1.1 Important characteristics and roles of packaging_________________455.1.2 Problem areas that may be opportunities for packaging____________505.1.3 Concrete examples of good and bad packaging__________________65

5.2 Different Influences on Packaging Decisions______________________725.2.1 Influences depending on supply chain characteristics_____________725.2.2 Manufacturers’ basis for deciding on how to package their products_735.2.3 Who has a say when manufacturers choose packaging solution?_____745.2.4 Marketing makes internal packaging decisions__________________765.2.5 The package’s influence on purchase decisions__________________775.2.6 According to the consultant’s opinion_________________________78

5.3 Communication of Packaging Issues_____________________________795.3.1 Expressed wish for cooperation within the supply chain___________795.3.2 Communication channels___________________________________795.3.3 Barcoding in foodservice___________________________________795.3.4 Frozen food guidelines_____________________________________80

6 Analysis_________________________________________________________81

6.1 New Characteristics of Packaging_______________________________82

6.2 Packages Solving Problems and Catching Opportunities____________84

6.3 Who is Prioritized in Packaging Decisions________________________89

6.4 Communication of Packaging Issues_____________________________90

7 Conclusions_____________________________________________________92

7.1 First Objective_______________________________________________93

7.2 Second Objective_____________________________________________96

7.3 Third Objective______________________________________________96

8 Suggestion for Future Studies_______________________________________98

9 References_______________________________________________________99


9.1 Literature___________________________________________________99

9.2 Electronic Sources___________________________________________101

9.3 Personal Interviews__________________________________________101

9.4 Lectures___________________________________________________101

10 Appendices___________________________________________________102

10.1 Appendix A: Interview Plan___________________________________103

10.2 Appendix B: Packaging Materials______________________________108

10.3 Appendix C: Frozen Food Guidelines___________________________112

10.4 Appendix D: Visit to a Cash and Carry_________________________115

10.5 Appendix E: Food Safety______________________________________116


1 Introduction

1.1 BackgroundThe proportion of meals the Europeans eat outside their home steadily increases. We take coffee breaks at work, eat lunch in the office canteen, we order take-away, we go to cafés or pubs to spend time with our friends, we easily grab a snack in vending machines and we eat on airplanes and trains to just mention a few examples.

Looking at the longer terms, consumers’ willingness to eat out of their home has increased. Higher disposable incomes, new lifestyles, greater choice of eating-out and lower price per meal are factors that have contributed to this.1

Today, about 35%2 of the money end-consumers spend on food in Europe is spent in foodservice outlets. According to a Tetra Pak analysis those numbers are probable to reach 43%3 in the year of 2010. The growth is predicted to be approximately 2% per year in real terms4.

The US food service sector value of today stands for 48% of the food market, i.e. an even higher share than in Europe. That is a fact that may further strengthen the belief that the food service market will grow stronger in Europe.5

Key drivers for consumers choosing to eat more and more meals outside their home are in addition to extensive marketing from major operators, changes in lifestyles:

- One example of a change in lifestyle affecting the foodservice market is the increased number of women in the workforce6. Eating out is a convenient solution when both parents are working hard outside their home.

- Also the increased number of single and two person households tends to increase the number of visits to foodservice outlets7. One reason could be that their economy allows eating out and another that their motivation for cooking for themselves is low.

- The average age when having children is getting higher which also is believed to affect the foodservice market positively8. One explanation is that older mothers and fathers normally have a better economy and therefore can afford to eat out.

1 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.2 Tetra Pak report: 020901 Global Press Conference.3 Tetra Pak report: 020901 Global Press Conference.4 M+M Planet Retail, Foodservice trends worldwide, 2002.5 Tetra Pak report: 020901 Global Press Conference.6 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.7 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.8 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.

http://www.fdf.org.uk/




- The average disposable income increases which makes eating out more affordable9. The increase in the size of the time-poor and cash-rich population affects the foodservice market positively10.

- Commuting, possibly hours a day, make eating on the run necessary, which also contributes to foodservice’s growth in market share11.

- People’s increased interest in travelling raises the interest for ethnic food, which favours the foodservice market.12

- There is a decline in cooking skills.13

Consistent with lifestyle changes, the average amount spent on a meal has decreased, however, the frequency has increased14. In other words eating out is nowadays more of an everyday activity than a luxury event.

The consumer demands change according to the trends mentioned above15. The fact that the number of outlets, as well as the variation in type and location has increased is an example of a market response on lifestyle change16. More or less, no matter when or where you are you can get hold of a prepared meal.

1.2 Problem StatementBrody17 states that: “In the good old days when HRI (Hotel/restaurant/institutional industry, author’s comment) was a mere and steady 20% of food value, HRI foods were a secondary bulk outlet for off-quality product the food manufacturer dared not offer to retail consumers”. Some might argue that that is an exaggeration; nevertheless, it is unquestionable that the foodservice industry has, and will continue to undergo immense development influencing all foodservice players.

Backman18 claims that there are a lot of well-known facts available, for example, sizes of different sectors, number of meals served in different kinds of outlets, growth rates etc. The problem is only how to interpret and use these numbers.19

9 M+M Planet Retail, Foodservice trends worldwide, 2002.10 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.11 M+M Planet Retail, Foodservice trends worldwide, 2002.12 Tetra Pak report, Foodservice 101: What is Foodservice?, 2002.13 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.14 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.15 Stirling R.A., Anyadike N., Shortening the Supply Chain, <www.pira.co.uk>, 170203.16 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.17 Brody A.L., “Foodservice drives packaging developments”, Food Technology, October 2002, vol 56, No 10.18 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.19 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.


http://www.pira.co.uk/




An underlying fact to the difficulty in interpreting the information about the foodservice market is that in addition to the higher number of outlets, the foodservice market is also more dynamic and fragmented than the retail market.20

Besides, the foodservice supply chain is a long chain and involves more players compared to the retail chain. The level of organisation, concentration, player size and relationships vary greatly from country to country within Europe.21

Domestic players have historically dominated but now globalisation drives consolidations also in the foodservice industry. This implicates in fewer and larger customers, increase in global supply agreements, and increase in large scale and multinational marketing campaigns.22

Backman23 argues that the growth rate in foodservice in the UK has been approximately zero in recent years. Although, he also says that he believes that the growth will continue24.

Backman25 means that customers have tried all eating out alternatives by now and have become bored by eating out. Therefore it is crucial for operators to change and offer something new and innovative in order to re-attract consumers and obviously this have to be done in a profitable way.26

One obvious example of change is in the major sector; contract catering. The change visible in contract catering is that it is changing from being canteen operators to companies offering high street eating experience.27

The contract catering industry is experiencing more and more competition from the high street and adapts to this by increasing the quality of their food offer. Naturally the contract caterers hope that this will make it possible for them to charge prices closer to prices on the high street.28

Eating out has become a fashion activity. This further complicates the situation for operators because trends change rapidly resulting in reduced loyalty among operators’ customers. This further emphasises the need for operators, in whatever foodservice sector to offer quality, value, choice, and other advantages over their competitors.29

20 Tetra Pak report, Foodservice 101: What is Foodservice?, 2002.21 Promar International, The foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.22 M+M Planet Retail, Foodservice trends worldwide, 2002.23 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.24 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.25 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.26 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.27 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.28 UK Food and Service Management Industry (“Future trends in food and service management”), Food and Service Management Survey 2003, British Hospitality Association.29 Backman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.


As an inherent consequence of the increased competition in the foodservice market, actors in the foodservice market pay more and more attention to cash flow management. Cost awareness brings up questions about logistics optimisation, for example through minimising of storage levels and portion control.30

Ross31 points out that the shortage in skills is common for the whole foodservice industry. He believes there will be an increased need for suppliers to give culinary support and move food preparation upwards in the chain.

The tendency to hire unskilled people among operators is an attempt to reduce costs. The deskilling of the workforce might lead to a lower quality of the food served due to inadequate handling of the food. The deskilling of the workforce also results in a higher turnover rate, which in turn leads to difficulties in developing, establishing and maintaining a work system in the workplace.32

A possible lower quality of the food, due to deskilling brings up the food safety issue. Recently a number of food scares have upset people around Europe. Food safety is certainly something the foodservice actors have to take into account.33

Companies’ attempts to reduce costs also affect the staff restaurant in that they are keen to put the space to more profitable use. Contract caterers respond to this has been to introduce smaller snack bars, deli/café outlets and specialist branded bars as a replacement of large restaurants with traditional menus.34

That satisfying, or even better, surpassing customer expectations is a key success factor in business is no news. The consumer behaviour has to govern all decisions through the supply chain. This means that all upstream actors in the foodservice supply chain will be affected by the lifestyle changes described above. Moreover, the requirements will vary greatly depending on the type of foodservice consumer35.

Someway or the other, when competition increases new ways to add value to customers has to be found. The package is one way to add more value to a product36. The package can make the value chain more efficient37.

There is an opportunity for packaging suppliers to identify downstream needs and offer appropriate packaging solutions38. Furthermore, improvements and new innovations in packaging is a way for packaging suppliers to assist their customers in adjusting to the evolving foodservice industry.

30 Györei, Micael, Regional Director, Global Food Service, Tetra Pak, Meeting, 290103.31 Ross, C., UK Food and Service Management Industry (“Good news but it’s far from easy out there”), Food and Service Management Survey 2003, British Hospitality Association.32 Györei, Micael, Regional Director, Global Food Service, Tetra Pak, Meeting, 290103.33 Tetra Pak report, Foodservice 101: What is Foodservice?, 2002.34 Halliway, L., UK Food and Service Management Industry (“Introduction”), Food and Service Management Survey 2003, British Hospitality Association.35 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.36 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.37 Györei, M., Olsson, A., “Packaging throughout the Value Chain in the Customer Perspective Marketing Mix”, Packaging Technology and Science, 2002; 15, pp 1-9.38 Stirling R.A., Anyadike N., Shortening the Supply Chain, <www.pira.co.uk>, 170203.



1.3 PurposeWith this study, I want to enlighten the meaning of an appropriate package solution. The purpose is to gain knowledge and understanding of each step in the foodservice supply chain. This knowledge and understanding will be useful in trying to better foresee how future foodservice packaging can benefit the foodservice market.

1.4 ObjectivesMy first objective with this study is to identify for each step of the chosen supply chain, the determining criteria when choosing a certain product in a certain package. I also aim to clarify why those criteria are important. Furthermore, I aim to take the study one level higher, in trying to identify problem areas in the foodservice supply chain that can be solved by improved packaging solutions.

Secondly, I aim to point out which step in the chain is prioritised the highest when deciding on a packaging solution.

My third objective is to find out how packaging solutions issues are communicated, downstream as well as upstream in the supply chain.

1.5 LimitationsThis study is geographically limited to the UK foodservice market. The supply chain that I have studied is from food manufacturers via distributor to contract caterers. I have not made any limitations regarding products because many times the same type of packaging is used for many types of products.

Trends in what the foodservice consumer packaging related demand are gathered from an operator perspective. In other words, no consumer research is done within this study because I preferred doing more thorough interviews, with fewer actors.

1.6 Project AssignerThe project assigner is Tetra Pak. Tetra Pak is a global company providing integrated processing, packaging, and distribution line and plant solutions for food manufacturing.39

The foodservice market is an exciting market under constant development. Tetra Pak wants to be able to foresee how future foodservice packaging can benefit its customers, and in turn its customers’ customers. This explains why Tetra Pak initiated this study.

39 Tetra Pak’s official home page, <www.tetrapak.com>.

http://www.tetrapak.com/


2 DefinitionsIn this chapter I present how I have defined different terms used throughout the report:

Back of house: Back of house means the area where the food is prepared. Back of house products are used by operators in the food preparation area. A typical example of back of house products are flour or ready made packaged sauces.

Cash and carry: A cash and carry is a wholesaler where foodservice operators go and buy goods that they bring home themselves. In common with retail is that goods are displayed on shelves but in cash and carries goods are bought in bulk. A cash and carry looks similar to a warehouse. Independent operators frequently use cash and carries.

Catering: Catering means the same as foodservice (see ‘foodservice’).

Consumers: Consumers in this report is defined as the operators’ customers.

Contract catering: Contract catering is performed by an operator who provides food to a limited consumer group within the clients’ premises. The consumer group is for example all employees in a particular company. Business is conditioned on a contract basis, stipulating various parameters; opening hours, menu variety, selling price etc.

Contract distribution: In contract distribution the distributor only gets paid for transporting no matter what products are in the boxes. The price distributors charge is based on weight or volume.

Customers: In this report customers can be food manufacturers (e.g. Food manufacturers’ are packaging manufacturers customers), distributors (e.g. distributors are food manufacturers’ customer), or operators (operators can be both distributors’ and food manufacturer’s customers and also packaging manufacturers’ although not directly.) Who the customer is in each case is determined by the context.

Disorganised operators: Disorganised operators mean the same as independent operators, (see ‘independent operators’).

Distributor: A distributor is an intermediary who receives the food from the food manufacturer, stores it and distributes it to operators. Another word is delivered wholesale but I will use the word distributor in this report. In some instances the distributor provides solutions for menus, concept and themes as a way for loyalty and sales tools.

Food manufacturer: Food manufacturers process food into food ingredients or ready to eat products. Food manufacturers also package their products. Food includes drinks.


Foodservice: “All food prepared or sold for out-of-home consumption.” 40

Front of house: Front of house is the area in front of the cashier where the food is exposed to the consumer. Food is not prepared in this area. A typical example of a front of house product is drinks.

Independent operators: Independent units are those that do not have 10 or more outlets or a branded formula.

Logistics: “Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.“41

Manufacturer: In this report, manufacturer always refer to food manufacturer.

Operator: Operator is the last step in the supply chain, i.e. where the food preparation is finalised and the food is sold to be eaten, e.g. a restaurant.

Organised operators: Organised operators perform chained operations, often branded and central purchasing is the norm.42

Outlet/Unit/Site: All these terms mean the same thing. It is the place where the operator operates.

Primary package: In this report primary package means the package that is closest to the product, or in other words holds the product. Consumer package, sales package and primary package are used interchangeably. In this report I will keep to primary package.

Retail: Outlets where people go and buy their groceries for eating at home. A typical example is a supermarket.

Secondary package: In this report a secondary package is a grouping of a number of primary packages. The secondary package can be removed from the product without affecting its characteristics. Grouped package and secondary package are used interchangeably. In this report I will keep to secondary packages.

Note that sometimes there is no tertiary packaging, which means that the secondary package’s role is extended to include the role of transport packaging. Note also that in cases where the secondary packaging is outer case during transports the secondary package may be referred to as transport package.

40 UK Catering Industry, British Hospitality: Trends and Statistics 2001, British Hospitality Association.41 The Council of Logistics Management, <www.clm1.org>, 260303.42 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.

http://www.clm1.org/


Tertiary packaging: The tertiary package groups a number of secondary packages. When the tertiary package is outer case during transports it will be referred to as transport package.

Transport packaging: Transport packaging is simply the outer case during transportation that facilitates handling and transport and prevents from physical handling and transport damage.


3 Methodology StudyNaturally I want this study to rely on and reflect the real situation in the food service business. My findings ought to be reliable and valuable. The only way to assess the reliability is to review the methods43 and therefore I present my methods here. In this chapter I start by briefly describing different methods in general, which is a requirement from my school. Having done this methodology study increases my ability in doing professional research.

3.1 Qualitative and Quantitative MethodsA common differentiation in methodology is the one between qualitative and quantitative methods. If the research work has to do with some kind of frequency or in other words aims to answer questions like “how many…?”, “how often…?” or “how commonly…?” the quantitative method is the most advantageous one. However, if the objective of the research is more to understand how people reasons, acts or reacts the qualitative method is the recommended one.44

Complex relations become possible to understand when using the qualitative method.45

3.2 Research Tools3.2.1 Literature studiesThe purpose of the literature study is to gather information on the subject of the research up to the day where the research starts.46

3.2.2 ExperimentsThe purpose of experiments is to clarify the connection between causes and effects. You vary the independent variables (causes) and determine how that affects the dependent variables (effects).47

3.2.3 MeasurementsThe idea of measuring is that subjective approximates will be replaced by independent measures in specific units in a standardised way. This requires some scale that not necessarily has to be in meters or grams or alike, but can range from “bad” to “excellent”. Nevertheless, difficulties appear when you want to put values on these subjective words.48

Validity and reliability is fundamental in measuring. Validity means that you actually measure what you have planned to measure. Reliability means that if you would measure a stable object many times you would always get the same result.49

43 Lekvall, P., Wahlbin, C., (1993) Information för marknadsföringsbeslut, IHM Förlag AB, Sweden.44 Trost, J., (2001) Enkätboken, Studentlitteratur, Sweden.45 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.46 PM för examensarbete vid avdelningen för förpackningslogistik, Lund University of Technology, April 200147 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.48 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.49 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.


3.2.4 Case studiesIn case studies you follow deeply what happen in a concrete case50. The advantages are that you study what happens under real conditions and you can study a sequence51. The weakness is that you do not know how often the specific case occurs and it is difficult to predict the probability of the same event in another organisation52.

It is important to consider how representative the chosen case is. One way to try this is to systematically study different comparable cases with different conditions.53

3.2.5 ObservationsObservations are when the researcher, with own eyes, observes what happens in a real situation. The strength with this method is that the researcher is able to observe what occurs independently of what a person knows, remembers or wants to answer. Although, you cannot observe knowledge, opinions or values and you cannot get a view of what has happened in the past or what will happen in the future.54

3.2.6 InterviewsLantz55 describes a professional interview as an interview that is reliable enough to be useful and valuable for others. The essential idea of an interview is that the results reflect the respondent. 56

When talking about interview methods, Lantz57 describes different ways in searching for knowledge. One is the ideographic approach and another is the nomothetic. In the ideographic approach the reality is subjective, humans have their own will and you can understand them through studying intentions. On the other hand, in the nomothetic approach human reactions depend on an objective reality.58

Interviews can be done in many different ways. One differentiation between different kinds of interviews is to what extent they are structured. In the one end is the complete structured method where the questions are formulated prior to the time of the interview and asked in a predetermined order. In addition, the respondent has predetermined alternative answers to choose from.59

A structured interview aims to find out the respondent’s opinion about predetermined phenomena60. Lantz61 concludes that, as a consequence of the nomothetic approach, structured interviews or questionnaires are best suited for questions regarding facts.

50 Lekvall, P., Wahlbin, C., (1993) Information för marknadsföringsbeslut, IHM Förlag AB, Sweden.51 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.52 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.53 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.54 Lekvall, P., Wahlbin, C., (1993) Information för marknadsföringsbeslut, IHM Förlag AB, Sweden.55 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.56 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.57 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.58 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.59 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.60 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.61 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.


The opposite of the structured interview is the open interview, which is more of a qualitative kind62. The questions regard values or attitudes63. Open interviews are about capturing the reality from the perspective of the respondent (i.e. an objective reality), which corresponds to the ideographic approach64.

The degree of structure determines how much improvisation is possible in the interview. Nevertheless, all kinds of interviews require an interview plan to be prepared prior to the actual interview.65

The first part of the interview plan is background information to the respondent describing ethics, the frames and the purpose of the interview, how the interview will be documented, how the results will be used and how the results will be communicated to the respondent. In the interview plan you should also plan the order of the questions (or question areas). It is very important to ask the questions in an order that is logic to the respondent. This order has to be stated in the interview plan.66

3.2.6.1 The role of the interviewerThe relationship to the respondent has to be personal in contrary to the interviewer acting as an objective expert67. The result of an interview depends mainly on the interviewer. The interviewer’s tasks include: 68

- to inform about the purpose of the interview- to motivate the respondent to give the information the interviewer is

searching for- to ask questions- to follow up answers- to register relevant information- to systemise and analyse relevant received information

An interview can be divided into different phases. The first phase is the question phase, where the interviewer is the sender and the respondent the receiver. While listening the respondent sends out a great deal of information. His way of listening reflects the respondent’s instant reaction on the question, his attitude to the interview situation and to the interviewer. A professional interviewer catches this silence information. Further, the professional interviewer understands that the way he asks the question may have equal relevance as the words in the question.69

The respondent interprets the question and formulates his answer based on this interpretation. This explains why the interviewer has to put a lot of effort into ensuring that the respondent has interpreted the question as intended.70

During the answer phase, the interviewer shows through his way of listening if he expects a short or a verbose answer. An untrained interviewer tend to clearly but

62 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.63 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.64 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.65 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.66 Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.67 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.68 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.69 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.70 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.


unconsciously, show if he is satisfied with an answer or not, and thereby steer the respondent to give the answer that the interviewer desires.71

It is very important that the interviewer clarifies the purpose of the interview. This is partly to avoid misunderstandings and partly to make it easier for the respondent to understand the questions and to understand the reasons behind the questions.72

3.2.6.2 Interpretation of answersThe interviewer does not react on the answer but on his interpretation of the answer. The two parties’ goals with the interview, assumptions about the other party’s goals, the parties’ respective knowledge, experiences, expectations, language use and information not expressed in words, all affect the interpretation of the answer.

One advantage of interviews compared to questionnaires is that you can keep on asking until you have gotten an understandable and exhaustive answer. It is significant the interviewer uses this advantage.

3.2.6.3 Formulating interview questionsEkholm and Fransson73 recommend to only asking one question at a time. That way the information gets clearer and it is much easier to ask follow-up questions. Also they say that it is recommendable not to ask too long questions. However, they point out one exclusion to this, which is when there is a change in question area. Then there might be a need for an introduction to gather the respondent’s thoughts around this new area.74

It is the responsibility of the interviewer to ask questions that the respondent can answer. If a question requires answers that are hard to describe, the interviewer should help the respondent to find methods to answer the questions. 75

It is important to avoid leading questions. Question become leading - when the respondent understands what answer the interviewer desires- when emotionally charged words are used, e.g. honesty, truth, justice etc- when elements of social prestige is included in the question.76

3.2.6.4 Order of questionsThe order of the questions has to be logic to the respondent. A simple and useful technique to use when organising questions is the “funnel-method”. This means that for each question area you start with wide and general questions. This gives the respondent the possibility to freely evolve the answers and then the interviewer can ask more detailed questions on matters where information is missing.77

3.2.7 Questionnaire techniqueThe main difference between questionnaires and interviews is that the questionnaire containing the same questions in the same order are given to many respondents. In an 71 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.72 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.73 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.74 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.75 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.76 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.77 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.


interview, both the questions and the order of the questions can be adapted to the respondent and the situation for the interview. 78

The strength with the stable nature of questionnaires is that you can use it repeatedly and thereby study changes over time. Another strength is that a questionnaire can be used to comparisons between different groups.79

Weaknesses include that the respondent cannot demand clarification of questions, it is easy for the respondent not to answer and the respondent do not feel pressured to give thorough answers.80

A questionnaire consists of one or many fixed questions and most often also fixed answers. The reason for fixed answers is that they are much easier to work on. Although, open answers are sometimes necessary. Ekholm and Fransson81 differ between fact questions and attitude questions. Fact questions require short straightforward formulations. When measuring attitudes some kind of scale is often useful, ranging from for example often to seldom or good to bad. When using a scale with an even number of alternatives and no natural midpoint you force the respondent to take position.82

3.2.7.1 Planning of questionnairesAs with interviews, it is important to plan questionnaires. Fixed answers require a thorough understanding of the question area. It might be necessary to test the questions through interviews to find appropriate answer alternatives.83

It is important to plan the order of the questions. It is recommendable to start with some of the easier questions because answering a questionnaire requires warm-up. These kinds of questions are also good to have in the end. In the middle questions of a controversial nature, questions requiring the respondent to take position or questions requiring a longer read-through are best suited. It is a good idea to end the questionnaire with an open question where the respondent can add points not covered in earlier questions.84

3.2.7.2 Analysis of questionnairesIn a questionnaire where open questions are used, the first thing is to divide the answers in different categories. Often you are interested in finding out how many have given a certain answer. The simplest way to do this is to manually count answers. Sometimes you are interested in knowing how different groups have answered, which requires that you divide the answers according to which group they belong. Sometimes it is also interesting to group the results according to answers on specific questions in the questionnaire.85

78 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.79 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.80 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.81 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.82 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.83 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.84 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.85 Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.


3.2.8 Information qualityData has no value unless you know why, how and under what conditions that data is gathered. In evaluating information quality, the following should be taken under consideration:86

- What are the source of information, background and the conditions under which the information is collected?

- What is the role of the originator? Observations or sources?- What is the purpose? Who is the intended person to receive the results of

the study?- Definitions of concepts and categories- Objectivity and area of application- Are there temporary and systematic errors in the data? What are the

judgement of the errors’ size and influence and the routines for error management?

- Media effects- Conditions for revision, elimination and registration- Any earlier changes?- When was the latest revision?- Who has access to the information? Who has the right to do changes?- The purpose for the actual user- How can you get access to the material? Is the material authentic? Is the

material complete?- Does other complementing and independent information exist?

86 Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.


3.3 My MethodsMy study is a qualitative study of the foodservice market in the UK. The reason why I have chosen the qualitative method is because I want to find out what people in foodservice think about packaging, what they think is important with packaging and why. The methods that I have used include literature study, interviews and observations. I did a literature study simply because I wanted a knowledge base in foodservice and in packaging. Interviews are necessary in order to gather information from other people’s perspectives. Besides, I used observations to get a broader view than interviews could give me. I wanted to see the real situation in foodservice partly to better understand the information I was given during interviews but also to discover new ways for packaging to benefit foodservice.

3.3.1 Literature studyI started this project by reading all articles, books, thesis reports consultant reports and Tetra Pak reports that I could get hold of. Academic literature about packaging was quite easy to find but foodservice materials was harder. However, I got to meet with an independent consultant who was expert of the foodservice market in the UK. He gave me facts and numbers of the British foodservice market, which I think was a good substitute where there was a lack of literature. I also got a good insight of the foodservice market thanks to meetings with Jason Kerr, Channel manager of foodservice, Tetra Pak UK and Micael Györei, Regional Director in Global Food Service.

The literature study gave me a good insight in the foodservice market and in the area of packaging. 3.3.2 Field studiesMy field studies were done in a coherent period of two weeks. During that time I interviewed people with thorough experience in foodservice. (In the appendices you will find a general interview plan, which was the base for all interviews.) I would describe my interviews as ideographic and all questions were of an open kind.

The distribution of my interviews is shown in table 3.1. All companies participating in the field study interviews are confidential.

Managers People in operationsOperator 1 2 4Operator 2 2 3Distributor 3Manufacturer 1 1Manufacturer 2 4

Table 3.1: Number and distribution of interviews

Note that I have only met with representatives from one distributor. I wish I had met with at least one more. I had good contact with one more distributor who promised me to join the study. But after a great number of phone calls to them I still have not


gotten any appointment and they still ask me to keep calling back. Unfortunately the time for this project ran out, which means that I had to give up my hope of seeing one more distributor. This may limit the input for this study.

Note also that I have only met with one person representing manufacturer 1, which may limit the input. However, this was a senior manager with a very good insight in the area.

The operators that I have met with, both are in contract catering. The fact that they are multinational companies with diversity among different units (due to diversity of their clients) made me convinced that it was in this sector I would get the most general answers. Because this is a qualitative, indicative study I wanted to include companies of this nature.

The participating companies are chosen based on suggestions from one of the most prominent foodservice consultants in the UK, Peter Backman, at Horizons, FS Limited. The choice of which persons from each company to participate is the result of advice from Peter Backman, of Tetra Pak relationships and of course depending on the roles the respondents had in their respective companies. From operators I have involved both people from operations who are actually handling and/or using foodservice products and managers in marketing and purchasing as well as general managers.

I wish that I could have interviewed more people in operations, representing manufacturers and distributors. The reason why I did not was two; that I felt that I could not ask for too much when visiting companies and that there was not enough time. However, through observations I got a good view of manufacturers’ and distributors’ operations as well.

I contacted all participating companies well in advance to ask them if they were interested to contribute to my study. I shortly introduced the project over the phone, and then I sent them the introduction chapter to my report to let them know more detailed the background, purpose and objectives of the study. No companies refused to take part, however in some cases it took a lot of effort from my side to finally get an appointment for the interviews. Part of the problem was that many of the people involved were very busy and hard to reach and many times I first had to reach a secretary before even getting to talk to the people I wanted to meet. In many occasions meetings with the operating level was booked after I had interviewed the managers.

The question areas varied slightly depending on which part of the supply chain the respondent represented. All interviews did not cover all questions areas, simply because all respondents did not have insight in all questions areas. Rather, in each company I interviewed different people with different roles in their companies and thereby I could cover all areas. However, due to the nature of the questions some questions were asked many times within the same companies to get different perspectives.


The specific questions for the experts/consultants are not presented because my meetings with them were more of a general discussion of the characteristics of the UK foodservice market.

I experienced that all respondents were interested in the study and that they considered it valuable for them as well. This I think is the main reason to why everybody participated with a serious attitude and was also willing to share more than I had expected. The fact that all companies as well as all individual people involved are confidential, I strongly believe has made participants willing to share more sensitive information, with more honest answers and true results as a result.

All interviews were of a qualitative nature and followed a prepared base of open questions. The prepared questions were complemented with more questions thanks to new perspectives and input given in answers by the respondents that opened new areas that I had not thought of before.

I did not use any recorder during the interviews. I had planned to do so but got the impression that most respondents would prefer not being recorded and I think it was important to respect that. Instead I took notes during the interview, which I immediately after the interview (normally on a train back to my hotel) went through to make sure nothing was bypassed and to complement to make the notes more understandable afterwards. Directly at my hotel I spent a few hours to rewrite all notes on my laptop, into a full text.

The reason why I did it this way was to ensure that all input given in the last interview was documented and then I could focus on the coming interview completely separate from prior interviews. I believe this is necessary in order to not let prior interviews be leading in other view cause that would risk the objectivity of the questions and in turn the answers.

3.3.3 ObservationsWhile visiting plants and outlets I made observations of real working situations that is also basis for my empirical chapter as a complement to the interviews. It was useful to see work in action, to watch when packages was handled and used and to see how it actually looked like in plants and outlets.


4 Theory StudyThe theory study is a collection of information from primarily books, articles and reports that I found valuable for the reminder of my study.


4.1 What Is Foodservice?Foodservice can be described as follows:

“The catering87 industry is concerned with the provision of prepared food and drink ready for consumption away from home, but it also includes establishments which provide a take-away and/or home delivery service where the food and drink are prepared within the establishment but consumed elsewhere.” 88

Another shorter definition is:

“All food prepared or sold for out-of-home consumption.” 89

Foodservice is known for being a diversified industry90. The low concentration is visible in the various kinds of outlets, which include fast-food outlets, self-service cafeterias, motorway service stations, restaurants, bistros, cafés, ethnic restaurants of every style, hotels of all classes, motels and so forth91.

4.2 The European Foodservice MarketParts of this chapter originate from my interview with Peter Backman, Managing Director, Horizons FS Limited. I have regarded this information as secondary data even though it was presented to me verbally. The reason why I chose to do it this way is that it complements my literature study.

The value of the European foodservice market was estimated to be US$293 billion in the year of 1999. That is one third of the total food market. The foodservice market is growing at a rate, which is higher than the retail market growth rate (in 1999, +2.75% compared to +0.5% per year).92

Growth rates are very variable in Europe at the moment, but according to Backman93, slow or flat in most countries.

The margins for food manufacturers in the European foodservice market are according to Grant94 relatively high, reaching from 10% up to 70% in some cases. The key question for the foodservice industry is how to keep these margins in the future when the market saturate and growth flattens out.95

87 catering is a word commonly used interchangeable with foodservice (author’s note)88 UK Catering Industry, British Hospitality: Trends and Statistics 2001, British Hospitality Association.89 UK Catering Industry, British Hospitality: Trends and Statistics 2001, British Hospitality Association.90 UK Catering Industry, British Hospitality: Trends and Statistics 2001, British Hospitality Association.91 Webster, K., (2001) The scope and structure of the food supply chain, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.92 Promar International, Profitability in Foodservice, Maximising Bottom Line Performance in Europe to 2005, June 2000.93 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.94 Grant, H., “Foodservice Review”, World of Food Ingredients, December 2001, pp 16-19.95 Grant, H., “Foodservice Review”, World of Food Ingredients, December 2001, pp 16-19.


Grant argues that in the future the bargaining power of operators will be stronger and the operator power will be concentrated to a few operators. The operators will demand more added value products, marketing support and high levels of customisation. This in turn will lead to decreased margins for manufacturers. Products that offer a greater level of added value, for example through convenience, packaging or branding command higher margins for food manufacturers. The margin potential is higher where the level of organisation is high, e.g. in the UK, since then it is possible to benefit from economies of scale.96

The SWOT-analysis below (see Figure 4.1) is an analysis of the foodservice sector from the perspective of food manufacturers in Europe.

Figure 4.1: SWOT Analysis of the European Foodservice Sector to 2005, from the perspective of food manufacturers97

4.3 The UK Foodservice MarketParts of this chapter originate from my interview with Peter Backman, Managing Director, Horizons FS Limited. I have regarded this information as secondary data even though it was presented to me verbally. The reason why I chose to do it this way is that it complements my literature study.

According to Backman98 the reason why the UK foodservice market deserves interest is that its growth rate is high compared to many other European countries and also that it has experienced creative change. Examples of the creative change is the opening of many sandwich bars and coffee shops, nicer environments and that some contract catering outlets have installed food courts with mostly their own brands but

96 Grant, H., “Foodservice Review”, World of Food Ingredients, December 2001, pp 16-19.97 Grant, H., “Foodservice Review”, World of Food Ingredients, December 2001, pp 16-19.98 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.

STRENGTHS

Growing faster than retails sector

Diverse point of sale

WEAKNESSES

Fragmented with limited scale

Complex and disorganised supply chain

OPPORTUNITIES

Forecast for continued growth to 2005 and beyond

High development potential. Increased consolidation expected

THREATS

Limited understanding of the sector – its systems and culture

Margins under pressure from growing competition and a more demanding customer base


also with high street brands. Another example of creative change is that the distribution chain has evolved into a relatively simple structure. 99

Historically the foodservice market has been growing in value for many years in the UK. However in the past few years the British foodservice market has neither grown nor declined. Backman100 thinks that foodservice is only on a plateau and the growth will continue. According to old forecasts, the retail and foodservice markets would be of equal value in 2025. These forecasts have changed and are not as optimistic anymore. The two markets are believed to be of equal value in 2035.101

One explanation to why the numbers not are as optimistic anymore is that retailers eat up some of foodservice growth. For example, you can grab a sandwich while in a retail store or while getting petrol in a petrol station. Also chilled ready-made meals are an adjustment from retail to the demand of food that is convenient and saves time. The fifty-fifty split will occur later in other European countries than in the UK.102

Foodservice forms a substantial part of the British hospitality industry. The UK foodservice industry generates revenues for its providers and is a valuable contributor to government income.103

In the UK, in 1999 the total amount spent on food was £74 billion and £25 billion of those, or 34%, was spent in foodservice104. The corresponding number on the manufacturer side is 16%, in other words 16% of food manufacturers sales is for the foodservice market.105. Food from foodservice has a share of 15-20% of stomachs106.

Figure 4.2: Foodservice Share of Total Food Sales107

99 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.100 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.101 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.102 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.103 Eastham, J.F., Sharples, L, Ball, S.D., (ed.) (2001) Food Supply Chain Management, Reed Educational and Professional Publishing Ltd.104 Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.105 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.106 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.107 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.



Figure 4.3: Foodservice Share of Stomach108

Below is a table (see Table 4.1) presenting growth of number of meals and foodservice sales respectively. A forecast until 2007 is also given.109

2001-2002 2002-2003 2002-2007Growth rate –

Number of meals +0.4% +0.5% +3.8%

Growth rate – Foodservice sales -0.9% -1.2% +4.6%

Table 4.1: Growth of number of meal in foodservice and foodservice sales respectively110

One interesting point is that the numbers of plated lunch meals are dropping. Five years ago the proportion of these kinds of meals were 60% but today they are 40%.111

There are two distinct segments in the UK foodservice market; the independents (disorganised) and the chain/group operators (organised). In 1998, the independents accounted for 80% of food sales.112 The UK market is described as the most organised and developed foodservice market in Europe.113

The major supply chain is the Delivered Wholesale (60% of value), followed by cash & carry (30% of value) and logistics providers (10% of value). In Figure 4.4 below is a picture of the foodservice value chain in the UK:108 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.109 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.110 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.111 Halliway, L., UK Food and Service Management Industry (“Introduction”), Food and Service Management Survey 2003, British Hospitality Association.112 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.113 Promar International, Profitability in Foodservice, Maximising Bottom Line Performance in Europe to 2005, June 2000.


Figure 4.4: Foodservice value chain in the UK114

4.4 Collaboration in Supply Chain Management Strategic writers today argue that cooperation rather than competition is the way forward. Also at the operational level, there has been a stronger emphasis on the importance of building collaborative relationships between management, procurement, and logistical effectiveness. Business success is the result of companies focusing on the enhancement of the total performance of the supply chain, through which an improved value to customers is obtained. Fearne et al115 recommend closer and longer term working relationships, even partnerships, with suppliers at all levels of the supply chain in order to deliver exceptional value to customers. More effective and quicker responding supply chains are needed because it will no longer be companies competing with each other. Rather it will be supply chains competing with supply chains.116

Supply chain management, in simple terms is concerned with the sharing of information, in order to:117

- Save time (markets across the world are becoming increasingly dynamic and product life cycles are getting shorter).

114 Tetra Pak report: The Foodservice Value Chain, A top-line report prepared by Business Intelligence, 231000.115 Fearne, A., Hughes, D., Duffy R., (2001) Concepts of collaboration: supply chain management in a global food industry, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.116 Fearne, A., Hughes, D., Duffy R., (2001) Concepts of collaboration: supply chain management in a global food industry, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.117 Fearne, A., Hughes, D., Duffy R., (2001) Concepts of collaboration: supply chain management in a global food industry, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.


- Reduce costs (manufacturing, inventory, distribution and waste).

- Increase effectiveness (accurate targeting of consumer needs and wants).

- Add value (innovation in new product development and customer service remains the only sustainable source of competitive advantage, difficult to achieve and most difficult to emulate)

Gerding et al118 all also emphasise the importance of supply chain cooperation. They mean that the whole supply chain has to cooperate to provide safe foods to consumers with strongly varying consumption and buying patterns. Further, they point out that packaging is a critical issue in this matter and a valuable aid in the chain.119

4.5 Packaging SystemsWhat is a package? According to the definition of the European Parliament and Council Directive 94/62/EC packaging is defined as follows:

“Packaging shall mean all products made of any materials of any nature to be used for the containment, protection, handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the user or the consumer. ‘Non-returnable’ items used for the same purposes shall also be considered to constitute packaging.”

A package consists of different parts, which fulfil different functions. The different parts make up a system that all together characterise the package.

The packaging system makes up a packaging hierarchy. The primary package is the one closest to the product, secondary package comes next, followed by the tertiary package, etc.120

The most common packaging solution for milk in Sweden is a clarifying example. The milk is packaged in a carton package. The cartons are placed on returnable plastic trays. The trays in turn are placed in returnable metal roll containers used during transports and that also can be used as shelves in the stores. In this packaging system, the carton package is the primary package, the plastic tray is the secondary package and the roll container the tertiary.

Not only is the choice of packaging system dependent on the product. Also, the different parts of the packaging system depend on and complement each other. Different actors in the distribution chain come in contact with different levels in the packaging hierarchy. It is important that each level is functional, but at the same time,

118 Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.119 Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.120 Jönson, G., (2000), Packaging Technology for the Logistician, Lund Institute of Technology, Sweden.


all levels together, i.e. the system as a whole, have to work well together for efficient distribution.121

4.6 Roles of PackagingPaine122 provides with a definition of the role of packaging:

“Correct packaging is the principal way of ensuring safe delivery of a product to the ultimate user in good condition and at an economic cost.“

The package depends on the product in that the package always belongs to a product. How a product depends on a package will be described in this chapter. As Robertson123 writes:

“Without packaging, materials handling would be a messy, inefficient and costly exercise.”

When the agriculture society developed into today’s modern industrial society the requirements on distribution changed radically. Now goods are distributed to markets located on the other side of the world and packaging has to follow this development.124

Historically, the point of production was close to the point of consumption. Fruits and vegetables were delivered straight from the fields and you had to bring a pot to bring your milk from the store. Such a system does not work anymore.125

Johnsson126 says that the role of packaging is constantly changing, and in the future its function will be more integrated with the image of the product.

Customers in different steps in the supply chain have become more sophisticated and packaging has to contribute to the fulfilment of customer needs.

A package has to function in two directions. It has to protect the product from influences from the outside. There are several factors that are potential dangers for food products including bacteria, light, heat, cold, humidity and hits to mention just a few. The package also has to function in the out-in direction and thereby sustain the quality of the product. It has to ensure that for example taste, aroma and vitamins remains in the product.127

All the efforts made to develop the product are wasted unless the package is delivered in correct condition. Paine128 talks about five basic requirements of packaging:

121 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.122 Paine, F.A., (1981) Fundamentals of Packaging, The institute of packaging, Rev edition, Brookside Press ltd, Leicester.123 Robertson, G.L., “Good and Bad Packaging: Who decides?”, International Journal of Physical Distribution and Logistics Management, 1990 20 (8), pp 37-41.124 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.125 Packat i pocket, Packforsk, Kista, Sweden, 2000.126 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.127 Olsson, A., Lecture in Packaging Technology, Lund Institute of Technology, 210102


- Protection and preservation: The package has to protect the product from the outside environment and from impacts during the journey from the manufacturer to the end user.

- Containment: Packaging has to hold the product together and at the same time provide easy storage and handling

- Machine Performance: Packages and packaging materials must be capable of performing satisfactorily and economically on package making, forming filling and closing machines, many of which operate at speed.

- Communication: The package has to identify the product and in many instances also sell them. Transportation packages have to provide instructions about the means of handling and storage as well as opening instructions.

- Convenience: The package has to be convenient to handle in transit, must fit the mode of transport and must meet the need of warehouse storage and order picking at the best possible way.

Gerding et al129 points out that the ideal packaging concept does not exist. Instead the package will always be a compromise between functional, industrial and legislative demands.

All actors in the supply chain depend on the packaging system and not only do the packaging requirements vary for different kinds of products. Requirements may also vary depending on what step in the supply chain is considered.130

When deciding on a package it is important to realise that it is not enough to focus on the consumer. Instead you need to broaden the view and see all downstream supply chain actors as customers to the packaging system. This in turn means that the described different levels in the packaging hierarchy have different significance depending on which part of the chain is considered.131

Dominic et al have suggested dividing different requirements depending on if they can be related to the flow, the market or the environment. Flow requirements have to do with making handling of the products easier. Properties fulfilling the market requirements are those that add attractiveness to the product and contribute to creating profits. Finally, properties to achieve the environment requirements include those that are intended to decrease the stress on the environment, save resources, and to make recycling easier.132

128 Paine, F.A., (1981) Fundamentals of Packaging, The institute of packaging, Rev edition, Brookside Press ltd, Leicester.129 Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.130 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.131 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.132 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


As mentioned earlier requirements may vary along the supply chain, but moreover, requirements may be prioritised differently also within a company. For example the logistician probably rank the flow requirements higher, while the sales man holds the market requirements superior.133

4.6.1 Flow requirementsThe flow requirements mostly relate to the logistic flow, i.e. transport, handling and storage. Flow requirements are divided into the following subcategories:134

- Product Protection- Flow information- Volume and weight efficiency- Appropriate size and appropriate amount- Providing easier handling- Other value adding functions

Product protection is as already mentioned a basic packaging function. Most products are transported long distances and are exposed to a lot of strain. Damaged products are of course a big waste of resources.135

Increased quality requirements and smaller buffers strengthen the requirements on that the products reach the final user without damages from transport and handling. There are three factors that can influence the objective of a non-damaged product; strengthening of the product, strengthening of the package or reduced strain during transport.136

Both over-packaging and under-packaging is wasteful and should be avoided. Over-packaging, or the using of more packaging material than necessary, leads to unnecessary expensive packages. It might also increase the cost of distribution and cause a higher stress on the environment. Under-packaging on the other hand might ruin or damage the products. This in turn might lead to delayed deliveries, increased costs of service and bad will.137

The main idea with flow information is to be able to identify the goods and its destination and thereby satisfying the main idea of logistics; right goods, at the right time, at the right place, in the right amount.138

The package is the interface between the product and the different actors coming in contact with the product along the supply chain. Information about weight, content, directions for use, suppliers and product origin can be printed on the package with the purpose of making handling and usage of the product easier.139

Volume and weight efficiency keep logistic costs down and the choice of packaging system has significant influence in this matter. The available space should be used 133 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.134 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.135 Packat i pocket, Packforsk, Kista, Sweden, 2000.136 Packat i pocket, Packforsk, Kista, Sweden, 2000.137 Packat i pocket, Packforsk, Kista, Sweden, 2000.138 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.139 Packat i pocket, Packforsk, Kista, Sweden, 2000.


maximally, both regarding the extent to which the product fills the package and to what extent the packages fills up the distribution carriers.140

A general wish is that the weight of the package should be minimised. This reduces the stress on the environment, makes the products easier to handle and where the weight is the critical factor during transport, maximises the transport efficiency.141

Appropriate size and appropriate amount relate to the ambition of developing a packaging system that complies with the quantity demands of the product. Different final consumer needs lead to primary packages of various sizes. The primary packages are then packed in multiples in secondary and transport packages to make efficient distribution possible.142

A package size adjusted to demand increases the rate of turnover in storage, which in turn reduces the cost of storage and capital.

Dominic et al143 make suggestions on how to accomplish flexible packaging systems:

- customer order managed filling/ pick and pay- re-closable packages, for example ”bag in box”- portion packs in multipacks- mixed expo pallets enable smaller retailers to sell straight from pallets.

Providing easier handling is relevant for all actors in the supply chain. Common problems are drops and heavy strains on persons moving the product144. The package should make handling easier through being145:

- easy to raise and to pack in- easy to grip - weight, volume and shape is critical in this matter- easy to open and re-close- easy to empty- hygienic- adapted to storage – possible to staple- easy to fold and to compress- adjusted for sorting of waste and recycling

The handling of the package is clearly dependent of the system in which it is to function. Important to remember is that even if there is automation in the process there is always manual handling to some degree.146

A well thought-through packaging system provides for more rational handling and also works as an ergonomic aid.147

140 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.141 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.142 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.143 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.144 Packat i pocket, Packforsk, Kista, Sweden, 2000.145 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.146 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.147 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


In addition, a package should make transports more efficient. It is important to find a balance between the factors below in order to make the transport efficient:148

- The packaging solution should minimise the amount of air in the transport to get maximised usage of space.

- The amount of transports should be minimised to reduce the consumption of fuel. Return trips can be used for packages that are to be recycled.

- Weight of transport is significant for consumption of fuel and should be minimised.

Common problems during transport include vibrations, hits, crossing forces, temperature changes and humidity149.

Other value adding functions will be treated separately in the section called “How can package add value to a product?” (See page 36).

4.6.2 Market requirementsIn the beginning of the 20th century a new dimension was brought into the emerging field of packaging technology. While merchandising became more impersonal, manufacturers desired to distinguish their products from those of competitors. The package should be a tool to increase sales: “It had to be able to protect what it sells and to sell what it protects.”150

Clement et al states that communication is one of the most important functions of packaging. They define good packaging design as correct communication. The communication should be correct for the consumer group the producer has chosen as target.151

Burke et al152 sees the package as an advertising medium

The communication is linked to the capability of catching the buyer’s attention and thus their perception of the package. Perception is linked to senses, the more senses that are stimulated the higher potential to catch the buyer’s attention. The package design should mirror the product and initiate the concept of the product in the buyer’s imagination.153

Packaging design is both about graphic design and shape and size of the packaging. Clement and Sørensen154 claim that in the future, shape and size will become a more

148 Tetra Pak, Investigating the life-cycle environmental profile of liquid food packaging systems, Stiftelsen Østfoldforskning.149 Tetra Pak, Investigating the life-cycle environmental profile of liquid food packaging systems, Stiftelsen Østfoldforskning.150 Sacharow, S., (1982) The package as a marketing tool, Clinton Book Company, Pennsylvania.151 Clement, J., Sørensen, M., (2002) About Packaging Design & Production, Danish Cartonmakers Association Pro Carton Nordica, The Graphic Arts Institute of Denmark.152 Burke, R.R., Klein, N.M., Underwood, R.L., “Packaging Communication: Attentional effects of product imagery”, Journal of Product & Brand Management, 2001, Vol. 10, No 7.153 Clement, J., Sørensen, M., (2002) About Packaging Design & Production, Danish Cartonmakers Association Pro Carton Nordica, The Graphic Arts Institute of Denmark.154 Clement, J., Sørensen, M., (2002) About Packaging Design & Production, Danish Cartonmakers Association Pro Carton Nordica, The Graphic Arts Institute of Denmark.


important competitive parameter along with the development of new production methods and processes.

Gerding et al155 mean that the package design depends on two factors; the demands of the consumer on the one hand and the product on the other. Consequently, the packaging technologist has to take both users’ wishes and functional demands into account.156

Dominic et al157 name three ways in how the package can make the product more attractive:

- Product information – a description of the product and the package- Selling ability – package design, layout and communication. - Safety – for example child and theft security

Product information includes content description, EAN-codes158, information about durability and directions for use. In addition the package should be labelled with special symbols relating to kind of material and environment. Moreover, for international products it might be necessary to present information in many different languages.159

It is not only the primary package that affects the selling capability. For example a uniform design on transport packages is a good marketing tool.160

4.6.3 Environment requirementsEnvironment requirement is a pressing issue not least for economical reasons. Environment requirements include:161

- Minimise usage of resources – minimise material and energy consumption when making packages

- Minimise the usage of harmful substances in the packages and in manufacturing

- Minimise the amount of waste – simplify the recycling of the package and use reusable packages when appropriate

When evaluating how a package affects the environment it is crucial to keep the whole system in focus. Package, product and distribution need to be looked at as one unit. If not, there is a risk for sub-optimisation.162

155 Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.156 Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.157 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.158 EAN stands for European Article Numbering. EAN is used to uniquely identify articles or services in different contexts.159 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.160 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.161 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.162 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


Besides, when assessing the fulfilment of environment requirements the perspective has to include the whole lifecycle. A Lifecycle Analysis (LCA) is an analysis of the usage of resources (e.g. material and energy) and discharges through the entire life of the product. A LCA involves all actors in the supply chain.163

According to Clement and Sørensen164 there will be an environmental sorting-out in the area of packaging. The winners will be packaging with a low environmental impact and maximum sales effect. They foresee that the consumption of packaging will increase in the coming years. The growth, they continue, will first and foremost be in the value of the packaging whereas the consumption of materials will stagnate.

4.7 Package ReplacementThe roles of packaging are several as described in the preceding section. However, Olsmats165 also briefly discusses factors that might cause replacement of packaging:

- As mentioned earlier, the product itself is a key element. Products can be redesigned to not require the same degree of packaging protection.

- The distribution system can be redesigned to reduce stress on products; hence the need for protective packaging will decrease.

- Ecological concerns in society may lead to a reduction of goods consumption, and associated packaging.

- Increased packaging material prices will force higher packaging material utilisation, which would reduce packaging material demand.

- Information technology may replace packaging, but may also be an opportunity to extend the packaging service offered.

4.8 Packages for Increased Quality of LifeTechnology is often regarded as a way to increase quality of life. According to Olsmats166 this view can also be applied to packaging – he claims that packaging can increase quality of life. In this chapter I only present those parts from Olsmats167

chapter of increased quality of life that I find relevant for this study.

4.8.1 Infra-structural issuesIncreased regionalisation is mentioned as an important development trend. Regionalisation brings specialisation and niching. The growing concentration to cities increases the demand on transport and in turn packaging.

Local versus global production is a major issue. Economic, market and technical conditions are decisive factors for where production will take place. Production at an early stage of the chain can take place globally, while final value adding processes

163 Tetra Pak, Investigating the life-cycle environmental profile of liquid food packaging systems, Stiftelsen Østfoldforskning.164 Clement, J., Sørensen, M., (2002) About Packaging Design & Production, Danish Cartonmakers Association Pro Carton Nordica, The Graphic Arts Institute of Denmark.165 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.166 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.167 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


take place locally. The structure of the chain will have a major impact on the packaging area.

4.8.2 InternationalisationIncreased international trade brings on an increased demand for efficient logistics. Packaging is important through for example modularisation. Olsmats168 foresees a need for a packaging solution including transport, administration and distribution to fulfil needs for flexibility, service and shorter lead times.

Security aspects will also have an increased significance for packaging. Longer transport raises the demand for stronger packages and improved preservation of quality.

Also globalisation tends to increase competition, which in turn leads to demands for better product profiling. The package can be used here to gain more attention for the product.

4.8.3 Food industry including functional foods and ready-made mealsThe border between food and traditional medicine has been partly erased. Functional food is the name for foods that have a documented physiological clinical effect. This implies new demands on hygiene and design.

The growing number of food variants of one of the same foodstuff will require many different package variants. Fresh, tasty and easily cooked ready-made food also puts new demands on the package. Packaging will be a means for the transport, a prerequisite for the cooking and attractive enough to serve from.

Convenience food is becoming more and more popular. Convenience foods require new, convenient and time saving packaging solutions.

4.9 The Package’s Effects on CostsDr Ruben Rausing founded Tetra Pak on a simple idea: “A package should save more than it costs”169. That statement is still stressed at Tetra Pak. Johnsson170 means that this statement still holds when the role of packaging is extended and argues that increased costs must be allowed in one part of the supply chain if costs can be reduced in other places and thereby save overall costs.

Packages’ largest effects on cost derive normally from collaboration with activities in distribution. The package follows the product from production/filling to consumer/final user and influences costs for handling, storage, transport and damaged products.171

168 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.169 Tetra Pak, Intranet170 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.171 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


Directs costs comprise of costs for material, filling, and fees for collecting used packages and disposal. Packaging factors affecting indirect costs include the package’s possibility to make the flow more efficient and to reduce costs.172

4.10 How Can a Package Add Value to a Product?The package follows the product throughout the value chain, which is why it is crucial to include the package in the value creation process. The package design will influence the efficiency of the entire value chain in terms of functions, features, information and cost aspects.173

The traditional fragmentation of the logistical process into a complex series of independent activities suppresses system innovation. A more dynamic integration between packaging and logistics would be a potential for major advantages.174

Johnsson175 means that the package and the logistic system have to support each other. He means that if this is done in a correct and creative way it is possible to create an added value that can be used in a competitive environment. An added value from a package has two components - a product value and a service value. The added value can be used to raise the price while the service value makes the distribution chain more cost effective. 176

The packaging system should be integrated into a number of functions both internally in the manufacturing company but also into downstream functions. A prerequisite for this is that when assessing different packaging solutions, the focus has to go beyond internal costs and profits, and look both backwards and forwards in the chain.177

Packaging systems have value-adding functions that cannot be connected to distribution requirements. In the endpoints of the distribution chain, i.e. the production or the consumption of the product, the package can be integrated to a process and thereby contribute to increased efficiency. What is important to remember though is that for the package to be integrated in the product, the development of the product and the development of the package have to take place in parallel.178

These non-distribution related value adding packaging functions can range from details that make consumption easier to a unique packaging solution that has positive effects on the manufacturing process. Dominic et al179 provides a list of examples of cases where the package and the product is integrated:

172 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.173 Györei, M., Olsson, A., “Packaging throughout the Value Chain in the Customer Perspective Marketing Mix”, Packaging Technology and Science, 2002; 15, pp 1-9.174 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.175 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.176 Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.177 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.178 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.179 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


- Fast Food – possible to heat the meal in its package in the microwave and then use the package as a plate while eating

- Beverages – with temperature sensitive additives changing colour when the drink is cold or warm enough

- Industry sacks – where the sack, based on natural polymers, is used as raw material in final user’s process. This means that the package never is emptied.

- Package as a measurement tool – the package is so well established that it is used as a measuring unit, e.g. oil drums

Adding value to basic products will be essential in the future foodservice market where markets are foreseen to become more organised and competitive. Possible means are innovative menu concepts, targeted marketing and enhanced service offerings.180

Brand communication is also a factor predicted to become even more important. Increasingly brands will be used as a symbol of a company’s ability to satisfy consumer needs. In addition Promar International emphasises the importance of being responsive to specific markets and targeted consumer groups.181

4.11 Packaging Demand Trends182 This chapter originates from Olsmats183 doctor’s thesis. He has identified a number of packaging demand trends which I present in summary here.

4.11.1 The consumer in focus184

Olsmats185 means that many packaging applications have their roots in production and distribution demands rather than in consumer demands. Today there is a large surplus of goods combined with a multitude of trade channels in fierce competition. Each channel has to profile its services and products to attract a certain segment of the market. The consumer may finally take over the power.

- Heterogeneity: The level of fragmentation in the market gets higher and higher and the market consists of a growing number of smaller market segments with different cultures and lifestyles. Other contributing factors to increased fragmentation are declining household sizes and that family members tend to more eat on different times to fit in with individual work and leisure schemes.

180 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.181 Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.182 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.183 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.184 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.185 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


Effects on Packaging: The market demands a growing variety of products. Olsmats186 sees a future possible need for packaging diversification and thinks that those manufacturers who manage to customise product, brand and packaging for a specific segment can get business advantages.

- An ageing population: The birth rate was high in the forties and this

generation is now starting to retire. This group is healthier, more active and stronger financially than their predecessors.

Effects on Packaging: This group will have special demands on packaging ergonomics and convenience, having to do with opening, dispensing, re-closing and disposing as well as information demands like readability and user instruction.

- Increased demands on health and hygiene: An increased interest for health and fitness is seen in many countries. This, together with environmental awareness leads to a growing consciousness of the nutritive value of food. At the same time there will be an increase in hygienic demands. The demand for ecological products is growing. In addition, consumers more and more demand preservative free products.

Effects on packaging: Demands for nutritive and hygienic foods will be sent back in the supply chain to packaging manufacturers. Consumers demanding ecological products will also demand ecological packages. Packages also need to ensure product safety. The lack of preservatives will require more sophisticated barriers in packaging.

- Convenience required: Consumers are more and more short of time as a result of longer working hours and active leisure time. The time for traditional household work suffers.

Effects on packaging: Time-pressured consumers demand packaging that brings convenience while the product is consumed. Olsmats187 exemplifies this with smartly packaged ready-to cook meals for microwave oven use and/or packaging easy to dispose after use.

4.11.2 Product image and branding188

As indicated by Olsmats189 the brand is one of the most important assets of a company. The brand makes instant recognition and identification possible. The branding has to stand out from all other information provided on the package. Profile and distinction are important since there is a surplus of goods. A unique design can prevent the consumer from picking the competitors product by mistake. A brand is a tool for reassurance of quality. Finally the brand provides a focus for advertising and

186 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.187 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.188 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.189 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


promotion activities. Since basic products are becoming more and more equal accurate positioning and added value grow in importance. Packaging can play a considerable role in this process.

- Individualism: People of today choose their own lifestyle and they spend money on priority segments and to compensate this they choose low-cost product for other needs.

Effects on packaging: Polarisation will most likely characterise future packaging. In the premium segment packages can be used to add unique value to the product and will be part of the overall experience of the product. For the low budget segment the focus must be on low cost. Low costs include both low direct costs for packages and also packages that lower indirect logistics costs.

- Packaging as a marketing and promotion tool: Packaging is often the only tangible difference between products.

Effects on packaging: Packaging can be a cost-effective marketing tool, and Olsmats190 see a large potential left to be exploited. In self-service the package has a strong influence on the buying decision. After purchase the package can be a tool to inform about and promote other products and to stimulate a repetitive purchase.

- Packaging in harmony with product and brand image: Packaging and product become more and more integrated. For example a perfume in a neutral bottle loses its image of exclusiveness.

Effects on packaging: This leads to increased demand for integrated development of product and package.

- IT as a supplement to packaging communication: Internet is growing at a fast rate. Security and logistics problems in connection with financial transactions are seen as obstacles to the development of Internet as a market place. However, regarding product information those obstacles are not as relevant. The potential of databases can make personal offers at a relatively low cost possible.

Effects on packaging: Web site references can replace the amount of information on the package. Where product information is critical for package design the amount of package material can be reduced. The function of packaging as a communication tool may also be developed because stereotype printed messages may be replaced by messages tailored to suit individual consumer needs.

190 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


4.11.3 International trade and transportation191

Since the Second World War international trade and transportation has been growing. Forecasts from SIKA (The Swedish Government Institute for Communication Analysis) say that from 1996 until 2010 the Swedish foreign trade will double in value. Volumes however, are only predicted to increase by 20% during the same time because there will be increased trade in higher value products, which in turn require higher demands on packaging protection functions.

In many areas in Europe there are traffic bottlenecks and the infrastructure is not adequate for current volumes. Emissions, road safety and noise are other associated problems. A consequence of higher transportation costs would motivate making transports more effective. In Europe the volume utilisation of loaded vehicles is around 50%, in the UK it is 63%. In other words there is potential to reduce transportation costs. Modular transportation packaging is likely to increase as well as the volume and weight efficiency of packaging systems.

- New concepts for logistics: Third party logistics is a service growing at a fast rate. Lead-time, frequency and inventory turnover rate have been part of third party logistic services specifications. They are now developing towards including definitions of logistical processes in terms of mechanical and climatic stress imposed on the packed products.

Effects on packaging: The development of third party logistics opens up new doors for the packaging manufacturer and packaging designer.

- Electronic shopping: Electronic shopping can increase cross-boarder trade and transportation. Electronic shopping can develop traditional mail order, but it can also mean totally new channels.

Effects on packaging: New solutions have to be developed for this possible new channel where delivering to local distribution points or all the way home.

4.11.4 New networks192

Traditional hierarchical organisations are being replaced by networks and process-oriented organisations as a result of markets changing at a more and more rapid pace and the need to gain flexibility and improve response.

- Virtual corporations: Virtual or temporary companies normally consists of members from different corporations to work together for a limited period of time in a project or other operation. Information can be transmitted electronically but physical products cannot.

191 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.192 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


Effects on packaging: Olsmats193 predicts that the demand for exchange of physical products between virtual organisations may create a demand for a new kind of packaging.

- Concentration on core business and out-sourcing: Out-sourcing is used for a growing number of processes. Out-sourcing brings on an increased demand for transportation, because internal material flows are replaced by external.

Effects on packaging: Where there is an increased amount of transportation there is also an increased demand on packaging for goods protection and efficient logistics. The purpose of out-sourcing is to eliminate all non-value adding activities. Packing and unpacking of semi-finished goods do not add value. In other words packaging solutions generating a minimum of excess handling and cost will be looked for, if not the advantages of out-sourcing will be neutralised by added cost for transportation and packing.

4.11.5 Environmental issues194

Concerns for our environment is growing. The industry has responded by adopting environmental policies and implementing environmental certifications schemes. Packaging has been in focus when discussing environmental issues. Packaging waste has traditionally been the main issues. However, lifecycle assessments of packaged products often show that the product itself and the transportation have a bigger impact on the environment compared to the package itself.

- Prevention by source reduction: The primary driving force for source reduction is cost reduction. The environmental issue has put further pressure on source reduction activities.

Effects on packaging: There are standard methods for assessment of whether a package consists of minimum adequate amount of material, required to fulfil functional requirements in the goods distribution chain.

- Focus changing: The symbolic role of packaging in the overall environmental company policy may decrease because many lifecycle assessments have shown that emissions and the usage of non-renewable resources in transportation affect the environment more than the package itself. Also too much focus on packaging waste results in ignorance to other kind of waste. A study in the UK shows that a typical British family throws away approximately 3kg of packaging every week, but at the same time throws away an approximately equal amount of food. Reduced food waste would result in reduced environmental loads both from food production and food distribution.

193 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.194 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


Effects on packaging: Because the effects of transports have proved to be so high the need for packaging that enables high utilisation of transport resources may increase. The decreasing of food waste might create the need for adequate packaging in sizes corresponding to household needs.

4.12Packaging Foresight in the UKOlsmats195 presents results from PIRA International196 packaging foresight project. This study identifies seven key drivers for packaging. IT was considered to be an enabling factor for many of them.

- Globalisation has an influence where the logistic infrastructures allow sourcing on a global basis.

- Polarisation, where successful organisations will be either major international players or highly niched.

- Demographic and lifestyle developments, with an ageing population and an increasing number of single person households. This leads to a significant increase in demands for convenience foods and for fresh. Healthy foods with resulting demands on packaging functionality.

- Mass customisation, where consumer requirements have to be satisfied on a more individual basis.

- Supply chain developments, where efficient consumer response and other initiatives demand greater efficiency in the supply chain. Sharing of information, partnerships, flexibility and quick response to market demands are important.

- Home shopping; with a critical mass of consumers, new logistical infrastructures can develop with long-term implications for packaging.

- Environmental, where recovery targets have to be met and source reduction will be even more important.

4.13Food SafetyFood safety and quality are important in protecting consumers’ health. In addition to compromising consumers’ health, on a larger scale food safety shortcomings might lead to food insecurity, market disturbances and severe trade restrictions.197

According to a report from the International Quality Assurance Retail (IQAR) conference in Maastricht, (2001) there is a need for re-establishing consumer confidence in the food industry and there is an increasing demand for information.198

One contributing factor to the lack of confidence in Europe is the outbreak of bovine spongiform encephalopathy (“Mad cow disease”) and the dioxin contamination of food.199

195 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.196 Pira is a commercial consultancy business, specialising in the packaging, paper, printing and publishing industries197 Food safety and Quality in Europe – Summary of emerging issues and unresolved problems, Pan-European Conference on Food Safety and Quality, Budapest, Hungary, 2002 http://www.foodsafetyforum.org/ 180203.198 Tetra Pak, Business Intelligence199 Stuart A.S., Integrated approaches to the management of food safety throughout the food chain, FAO/WHO Global Forum of Food safety regulators, Marrakech, Morocco, 2002

http://www.foodsafetyforum.org/


During the past decades, there has been a considerable increase in the number of occurrences of diseases caused by pathogenic microorganisms in most countries, which report foodborne diseases. One third of all people in industrialised countries are affected by foodborne diseases every year. Besides consequences such as deaths and human suffering, economic losses due to foodborne diseases are huge.200

Previously, most food control focused on the end products and on food processing operations. Studies, for example in Sweden, shows that a large proportion of foodborne diseases still today origins from poor hygienic practices in caterers.201

In recent decades however, the focus has widen and the need to approach the whole food chain is emphasised. The primary responsibility of food safety lies with all those who produce, process and trade in food. All these actors have to ensure that the food they produce and handle is safe and satisfy relevant requirements of food law. Some food safety problems start in the very beginning of the food chain, for example with contamination of animal feed.202

Food risks are divided into specific types and include:203

- Microbiological risks, including those arising from food poisoning organisms

- Chemical risks including food additives; pesticide residues; residues of veterinary medicines; natural toxicants present either as an inherent part of the food or present as a result of infection; organic environmental contaminants (e.g. PCBs and dioxins), inorganic contaminants (lead and cadmium), migrants from packaging and other materials and articles in contact with food; and vitamins and minerals

- Emerging risks from other agents that may have entered the food supply, such as BSE, animal zoonoses, antibiotic resistance,

- Novel risks such as those from novel foods and novel food processing and the use of GMOs (Gene Modified Organisms)

- Risks from radioactivity in food- Other risks associated with food itself, such as under or over-nutrition.

5 Empirical StudyThis chapter contains all information I collected during my field studies. The chapter is divided into three parts, one for each of the objectives with this study.

<http://www.foodsafetyforum.org/> 180203.200 Stuart A.S., Integrated approaches to the management of food safety throughout the food chain, FAO/WHO Global Forum of Food safety regulators, Marrakech, Morocco, 2002 <http://www.foodsafetyforum.org/> 180203.201 Stuart A.S., Integrated approaches to the management of food safety throughout the food chain, FAO/WHO Global Forum of Food safety regulators, Marrakech, Morocco, 2002 <http://www.foodsafetyforum.org/> 180203.202 Stuart A.S., Integrated approaches to the management of food safety throughout the food chain, FAO/WHO Global Forum of Food safety regulators, Marrakech, Morocco, 2002 <http://www.foodsafetyforum.org/> 180203.203 Food safety and Quality in Europe – Summary of emerging issues and unresolved problems, Pan-European Conference on Food Safety and Quality, Budapest, Hungary, 2002 http://www.foodsafetyforum.org/ 180203.







5.1 Important Criteria when Deciding on a PackageThe field studies information I present here is related to the first objective of this study, which is to identify for each step of the supply chain, the determining criteria when choosing a certain product in a certain package and also clarify why those criteria are important. Furthermore, part of the first objective is to identify problem areas in the foodservice supply chain that can be solved by improved packaging solutions.

5.1.1 Important characteristics and roles of packagingIn this first section I present important characteristics and roles of packaging for operators, distributors and food manufacturers respectively. The table below (see Table 5.1) summarises the section.


OPERATOR DISTRIBUTOR MANUFACTURERNo matter if it is secondary or primary packages:

Back of House

Low share of product price Providing thorough descriptions of contents Providing easy identification of products Making products easy to find and recognise Making it possible to differ between

products also in dim lights Robust, enough for preventing impact on

the package and products from transport and storage

Protecting the product for all its duration of shelflife

Providing with warning if weight is excessive Right size offerings Easy to dispose Provide hygiene Minimise waste

Front of House

Attracting customers’ attention Directing the target group Good looking and appealing Providing good looking shelves Presenting the product appropriately Displaying the content Convenient and user-friendly for users

including easy to open and reclose

Primary Packages

Back of House

Providing easier and more practical use of products

Possible to reseal or at least reclose the package (unless the package is used in one shot)

Easy to open and reclose Providing resistance to heat

Secondary Packages

Back of house

Appropriate case sizes and volumes Clear labelling on more than one side Easy to open

Primary Packages

Needs to be robust enough to work during transport, where cases are split

Should help protect sustained quality of the product when moving through the supply chain

Should be robust enough to not get damaged when moving through the supply chain

Secondary Packages

Easy to handle and move manually Robust enough to not fall apart Clearly labelled for quick identification also

from a distance and in dim lights Ideally but not necessarily labelled with food

ingredient contents Bar coded for easy identification and

traceability Environmentally friendly to minimise levies No excessive weight for ergonomic reasons

and to lower weight of transports

No matter if it is secondary or primary packages:

Providing satisfaction of customer requirements

Real end-user benefit Performing well in filling machines Providing cost effective handling and

delivery, e.g. max pallet utilisation Comprising as few units as possible. The

fewer items you have to manage storage levels for the better it is.

Ideally there is some form of unity between different solutions, e.g. one or two dimensions used for different packaging, which provides unity in plants on how to handle containers.

Providing protection through the supply chain.

Minimising environmental impact. Differentiating products from competitors’ Promoting the brand Making possible a price and quantity

according to customer needs.

Table 5.1: Characteristics and roles of packaging

5.1.1.1 Characteristics and roles of packaging for benefiting the operator

Important characteristics no matter if it is secondary or primary packages -back of houseFor back of house packaging the direct cost of the package should be minimal according to operators. Or in other words, the packages should take up low share of the product price. Many see packaging as a pure expense and higher prices really have to be justified. One comment was: “Flour is flour is flour, no matter what the packaging is.”


No matter if it is back of house or front of house, thorough descriptions of contents have to be provided on the packaging and ideally not only on secondary packaging because that is quite often thrown away. One respondent pointed out that content descriptions also apply to portion packages. The reason is to give correct answers to allergic customers.

Unlike front of house packaging good look is not important back of house, no matter if it is secondary or primary packages. However it is necessary to be able to identify the products so the package has to provide clarity to what the package contains. The package look should make it possible to differ between different products. The fact that storage areas in general have quite dim lights has to be considered as well.

Robustness is critical back of house. The operator says that in foodservice kitchens, the treatment of products is tougher compared to how products are treated in personal households.

Another common characteristic for front and back of house packaging is that there should be a warning if the goods are heavy for the safety of staff.

Important characteristics no matter if it is secondary or primary packages -front of houseThe most important role of primary packaging is to immediately attract the customers’ attention. A prerequisite is that the package is targeted to the consumer group in question. In other words no childish pictures on products sold in staff-feeding restaurants.

It is also important that the package is good looking and appealing. Furthermore, it is not enough that one package looks good in isolation, it is also crucial that the shelves look attractive, in other words that the different packaging look good together. For the shelves to look good it is important the colours look good together. One example is to start with dark colours on one side of the shelf and go lighter when going to the other side. One good practice is to use different colours for different contents, for instance blue for tuna and red for chicken. Another important aspect is that the shelves have to be full to look good, according to many respondents.

Besides, the package’s role in display is crucial. Customers want to be informed what products are available in order to quickly make a choice, which is the purpose of display. During rush hours when many customers are waiting to be served it is time saving if all products are displayed for the customer to make his choice prior to being served.

Also display of the content is said to be important many times, because customers eat with their eyes. One specific example is the one of salad in plastic bowls for take away. Then it is valuable if it is possible to tilt the bowl, without causing a mess, so the content gets visible from the top.

It is important that packaging is convenient and user-friendly for consumers. The reason behind these requirements is that consumers live under constant shortage of time. One distributor company has done research regarding packaging. One of the findings was that openability of front of house packaging is top priority.


That the package is easy to open is not enough – you also want to be able to re-close the product easily. As an example you want to be able to take a half-empty soda from lunch back to your desk.

Primary packages -back of houseThat the products are practical and easy to use is also critical. It should also be obvious how the package is intended to be used, e.g. it should be obvious how to open the package just by looking at it. Easy to open is the top priority according to one respondent.

It is common that the products come in bulk and all content will not be used all at once. When the product is partly dispensed you want to be able to reseal or at least reclose the package again. There are two reasons given for this – food safety and that the product should not leak out if the package falls.

An expressed opinion is that it is annoying having to find separate tools when using a product. One example is that a measuring stick is needed when preparing baguettes in order to get the baguettes in correct size.

Another important issue is that the package can withstand being placed close to heat during a period of time.

Secondary packages -back of houseWhat is of major importance is that goods come in appropriate case sizes and volumes. There has to be flexibility in ordering volumes.

Clear labelling is also important to easier identify what is in the package.

5.1.1.2 Characteristics and roles of packaging for benefiting the distributorThe distributor’s requirements derive from the wish to make deliveries from manufacturers, picking, and transport and deliveries to customers more efficient. It is required that products arrive to customers in sustained quality both of the product and the package.

The distributor cares most about the package that is outer case during transport, whichever package that may be. Although it is also important that neither the primary package nor the quality of the product are affected during transport or storage.

The distributor I was in contact with had deliberately looked at packaging design for their own brand for back of house products. The primary goal had been to make the picking areas more efficient for internal staff and for customers. The following changes have been done:

- All text on transport packaging has been enlarged for easier identification.- With the purpose of easier identification the product code has been written in

larger numbers because the product code is said to be easiest to pick by.- The packaging is colour coded to reflect different temperature bands to

quickly know which storage area to send each product to. - All cardboard is white. The distributor in question claims that that helps to

find the products in storage areas where the lights commonly are dim.


- Primary and secondary packaging follow the same design patterns. - Supposedly improved user instructions with recognisable symbols are

provided on the back of the packaging. This is as response to the deskilling in foodservice.

In addition, the same distributor has made changes to its front of house own brand for portion packs. The purpose has been to make the design more attractive to look good on tables and trays. They have also aimed at co-ordinate products to attain conformity in design so that each pack complements the other.

5.1.1.3 Characteristics and roles of packaging for benefiting the food manufacturer

Respondents from the two different companies had quite different views of packaging, which is why I present them separately:

Manufacturer AHistorically, one respondent said that the only thing they considered to be the role of packaging was to hold the product. The consequence was suboptimal cost and suboptimal performance:

“Packaging was nothing we focused on historically. All sexy packaging was in retail and all the active marketing people were there.”

For the company in question it used to be that packaging was developed in each country and there was no conformity between different countries’ packaging. The result was that the brand was presented differently in different places and there were no economies of scale.

Today, the role of the package is much more emphasised. Now the respondent states that boring bulk packaging is history in foodservice. Economies of scale are looked for. At the same time the customer is more involved when it comes to deciding packaging. Environmental concerns are also more in focus. New roles of packaging are added:

- Promoting of brands (is said to be as important as in retail)- Being functional- Real end user benefit

This company also takes the role of packaging one step further and says that the optimal package would lower costs for them as a manufacturer and at the same time add value to the customer. He describes a real example, which is a patented tapered plastic container.

Lower cost for manufacturer:- You can store empty packages in each other, which gives many more

packages per pallet in delivery, which in turn makes the delivery costs lower.

Added value for customer: - The containers stack well because the lid is bigger and its inner surface fits the

bottom of the package on top.


- There is a wrap around label that can be taken away, which means that the package can be used for other purposes. Because the brand name is removed it does not matter if products of other brands are stored in them.

- There is an area with a surface possible to write on. - The package is dishwasher proof and microwaveable.- The package in question comes in different sizes, but the only difference is the

height. In other words you can stack packages of different sizes on top of each other.

- The package consists of only one material (PET), which is good when it comes to recycling.

Manufacturer BThe three most important characteristics of a package for this manufacturer to consider it a good packaging solution is 1) low direct cost of packaging, 2) high quality, and 3) service (the packaging manufacturer has to service packaging machines).

To reduce costs, pallets should be used optimally and thereby optimise the transports. The sizes of cases and primary packaging have to conform to customer requirements. The price of the packaging should be kept low to be able to make an acceptable product price for consumers.

It is also valuable if there is a unity among different products’ packages to manage storage levels easier and to have uniform handling of containers in the plant. It also reduces the time of changeovers.

For the manufacturer in isolation the most important characteristics of packaging is that it performs well in the filling machines:

“There is no point having cheap packaging if they break in the filling process.”

Environmental concerns also have to be taken into account and impact on environment should be kept to a minimum.

Another respondent added that the package has to add value to the product such as being functional and providing with convenience for customers in the supply chain. Front of house, good design is taken for granted and then a value can be added in functionality. One respondent points out that if the package is sold through cash and carries another important role of packaging is that its look should attract the attention of the buyer.

5.1.2 Problem areas that may be opportunities for packagingHere I present general foodservice problem areas. The aim is to find ways how packaging can be part of the solution for these problems. In Table 5.2 you will find a summary of the information collected in this chapter.


ISSUES DERIVING FROM THE

DEVELOPMENT OF FOODSERVICE

ISSUES DERIVING FROM

FOODSERVICE OUTLETS

ISSUES DERIVING FROM END-

CONSUMERS

MOVING AND RECEIVING

GOODS

PACKAGING TO STIMULATE INCREASED

SALES

- The role of packaging is not realized

“Generally in foodservice packaging has low priority”

“We don’t really see packaging as something that can be improved.”

- The foodservice market is static at the moment but most likely will continue to grow

- Foodservice is changing from being craft operations into running business

- Important interface area between retail and foodservice

If people get hungry they want food no matter where they are

Eating out is less formal today

=>the interface area might eat up some of foodservice’ growth!

More and more environmental concerns

- Deskilling in the foodservice work force

- Portion control is important for cost control

- Convenient use of products in kitchens

- Efficient storageDifferent opinions if primary or secondary packages is most appropriate in storage

Hard to differ between different products because the packaging often looks very similar

Original packaging is emptied and replaced with new “storage containers”

Products are kept in metal bins for mice protection

- OrderingWhen packages look similar ordering takes longer time

It is often necessary to open each package to see how much is left, which complicates ordering

- Shortage of space in storage=>Many overloaded shelves=>Goods on the floor=>Messy

- Packaging waste is bulky

“We have rubbish everywhere”

- Improved shelflife is wished forYou would want the same quality the day of opening the package as 6 months later

- Minimisation of product waste is wished for

- There is time pressure in kitchensUnder stress, kitchen staff mistakenly not take food safety, hygiene or instructions into account

- Time-pressured consumers want convenience=> Products have to be clearly visible and displayed so they are noticed and easy to find

- Time-pressured consumers run errands during lunch

- Time-pressured consumers want to eat lunch at their desk

- Consumers want to eat on the go to save time

“You should be able to eat and drive at the same time”

- Snacking is becoming important=> Handheld individual snacks are demanded

- Consumers want to see a big variety of choice

- Increased health concerns

- A significant proportion of products require splitting of case=> Primary package is outer case in transports

- Often mixed pallets=> unload and reload pallets many times when arriving to final customer

- Delivery schedule not followed=> goods stand around waiting until some one get the chance to take care of it

- Moving goods is a heavy job

“I have to go to the gym to be strong enough for my job”

- A better targeting of offers is needed

- New innovative offers have to be presented frequently

- Packaging in foodservice has to reflect the products better than they do today

- Packaging should be a way to lock in customers to buy more

- Packages have to provide product visibility

- Good looking shelves front of house are extremely important

“It is very ugly when you see the barcodes…”

- Front of house packaging should look like it contains more than it actually does

Table 5.2: Problem areas that may be opportunities for packaging


5.1.2.1 Issues deriving from the development of foodservice

A brief foodservice updateThe foodservice market is static at the moment, and has so been for a few years but it will most likely start to grow again. 204

Solving foodservice problems, not food problems, is the key for food manufacturers in gaining customer loyalty in foodservice. Issues to solve are for example: What are appropriate menus? How should the food be prepared (e.g. microwaves or other ovens)? How can the number of staff be decreased?205

Backman206 concludes that the foodservice market will continue to grow and at the same time it is changing. But he also says that it is not growing as fast as many argue. The change in foodservice is roughly being a change of focus from craft operations into running business. 207

The role of packaging is not realisedPackaging does not as yet play a role in foodservice and packaging is not given much thought.

“Generally, in foodservice packaging has low priority.”

Statements like this were expressed very frequently during my empirical studies. The comparison to the retail sector was also common. Many respondents argued that retail had been more proactive in packaging development.

“In foodservice you just have to deal with the kind of packaging that is available for that type of products.”

When walking around in one of the manufacturers’ warehouses the managing director held up products and said that he had no idea why the product was packaged the way it was.

Another answer I got from a manager in a chained outlet when discussing the role of packaging in foodservice kitchens was:

“We don’t really see packaging as being something that can be improved”.

I also experienced that although the development of primary packaging had low priority compared to the development of the product itself, secondary packaging was even further down on the priority list.

Retail has come much further in developing packages for its actual purpose according to one respondent.

204 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.205 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.206 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.207 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.


“In foodservice you develop the perfect product or concept and then use whatever package that is available. But in retail the product and the package fit together.”

The explanation given to why this has happened in retail and not in foodservice is that the product volumes are much greater in retail. Nevertheless, taking packaging from retail and push it right into foodservice usually does not work along with answers from several respondents, because requirements on packaging characteristics differ. One respondent sees three distinct differences between retail and foodservice. Firstly the volumes in foodservice are much smaller, which makes changeover times the bottleneck in production. Secondly launching of new products happens less frequently in foodservice. Thirdly, the pack sizes are in general bigger in foodservice.

One respondent says that he can see a tendency in foodservice that customers avoid too flashy packaging. He believes the reason is that the customer thinks it is the packaging he pays for and the product is not worth that spending.

One respondent believes that customers are willing to pay premium prices for front of house packaging but he wonders if this also applies to back of house packaging. He provided with an interesting example regarding back of house packaging. The product in question is flour packed in a paper bag, which is common for many different brands of flour. The package for this particular brand that the respondent represents has been more or less the same since the year of 1959 when the product was first launched. The way of thinking has been according to the proverb “if it is not broke, do not fix it”. Although there have been some thoughts in the back of the respondent’s head for long: Would a more sophisticated package increase volumes that would make up for increased packaging costs? Or the opposite; if they would start packaging in even more basic package (e.g. only black and white printing) and thereby reduce packaging costs, would the customer mind or would they just welcome the lower price?

More concentration of operators?One respondent foresees we will see more consolidations in foodservice operators, which will result in fewer but bigger players. As an approximate, the distributor in question thinks that a few years ago 40 % of sales were to national accounts and 60% to independents. Today those numbers are 50/50.

Important interface area between retail and foodserviceThe boundary between foodservice and retail is fading. The interface area is getting more and more important and should be given more attention. If people get hungry they want food no matter where they are. This interface area will eat up some of the predicted foodservice growth.208

One reason for the blurring of the boundary between retail and foodservice is that eating out is less formal today. There tend to be more places to eat in more casual formats compared to traditional foodservice outlets. That foodservice manages to demonstrate value for money is key because prices charged to end-customers are higher than in retails.

208 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.


“The differences between retail and foodservice are fading. Foodservice has turned into a less luxury snacking environment.”

Retails’ response to the growth of foodserviceSupermarkets response to change in eating patterns has been to offer many ready-made meals. You can buy a carry to take home in many supermarkets. In addition, they often have stands where you can take cutlery for free.

In retail today you see more and more chilled ready-made meals of good quality that you just need to take home, heat and eat. You can buy carries of different sizes and you can also get combined meals in one package.

However the proportion of chilled food in foodservice is little. The reason why foodservice operators do not favour chilled food is that the shelflife is too short resulting in that a lot of food has to be thrown away. If the shelflife would be longer the demand would increase significantly. It is also difficult to make the distribution effective and get good economy in it if the shelflife is too short. If the foodservice supply chain would gain the same efficiency as the retail chain the amount of chilled ready-meals would increase also in foodservice. 209

According to Backman210 it would be a great opportunity for packaging manufacturers if they could develop packaging solutions that would extend the shelflife of chilled products a few days. In turn, the extended shelflife would be a great opportunity for food manufacturers.

More uniform product quality among competing brandsProduct quality is becoming more uniform between suppliers (“…although there will always be Rolls Royce’s.”) With more and more similar level of quality, cost and performance of product is becoming more and more important. The manufacturer has to provide with other incentives to buy the product. The respondent says there are two ways. 1) Trust on loyalty to the brand and 2) ease of application.

Increased environmental concernsEnvironmental friendly packaging will become more and more important. There are two things forcing recyclability. Partly it is pressure from customers and partly it is costs imposed by environmental levies. Therefore it is important to use recycled materials or materials that are recyclable in order to meet the requirements of customers and to conform with legislations and thereby minimise the levies charged for affecting the environment. One distributor claims that the reasons for seeing many cartons are two: 1) They are cheaper to recycle and 2) the levies are lower than they would be for glass or plastic. It is also of top priority to reduce packaging waste.

5.1.2.2 Issues deriving from the foodservice outlets

Deskilling in the foodservice workforceDeskilling of the foodservice kitchen staff is a main issue to consider. The deskilling is said to be a result of trying to reduce costs. A common situation according to the respondent is that the outlet will hire a skilled head chef and the rest of the staff will be low or non skilled. Another attempt to keep labour costs down is to hire fewer 209 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.210 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.


people. With this background manufacturers want to work for making tasks in the kitchens as simple as possible:

“They just have to take an individual pack of gravy, grab a pair of scissors and tear the top off and poor the gravy over the meal.”

Portion controlPortion control is a way to control the amounts used. Portion control is important when it is equal to cost control for the following reasons: 1) the costs of kitchen operation is tight. 2) The role of the chef is changing. The chef is the creator while the buyer more and more are business managers. 3) The offering has to provide good value for money and minimum wastage. 4) Deskilling of workforce, for example it may be difficult to calculate proportions correctly.

When using portion packs it is important that the size is appropriate so that waste is minimised. Imagine what a waste it would be if the average customer uses 1,5 containers of cream. In that case 25% will be waste.

It is not always ultimate to use single portion packages. “It doesn’t necessarily need to be portion packs but packs that can portion.” Sometimes, especially for the supplier it is better with portion control from bulk. The reason is to limit the numbers of deliveries. “Bulk up and portion down, where is the optimal?”

Convenient use of products in the kitchensOne respondent representing a manufacturer said that a main issue for foodservice packages is convenience for foodservice staff.

One respondent points out that there are two ways to make the use of products more convenient for staff in the foodservice kitchens. The first is to put more effort in the package and the second is to put more effort in the equipment that is necessary for dispensing from the package. The respondent says there has to be a trade off between sophisticated packaging and sophisticated equipment. A clarifying example back of house could be to consider the portion packs of gravy above. Imagine that you instead would use big sized gravy packs that fit into some equipment to dispense the food. An example front of house is ketchup dispensers that you find in some McDonalds where you fill a little container from a bulk pack of ketchup.

One operator expressed the wish for ingredients to be prepared as early as possible in the supply chain, i.e. as many steps as possible in the cooking process should be done prior to arriving to the outlet. Furthermore it is important that the amount in the package is equal to an exact number of portions to minimise waste.

In foodservice kitchens there are a lot of changing of containers, which are non-adding activities. For example if only half of the batch of soup is used you would want to put the soup in the freezer without having to switch containers. When taking the soup out from the container you want to be able to reheat the soup, again in the same container.

One cause for hassles in foodservice kitchens is all the plastic and aluminium foil, which are said to be used in great amounts. For instance all leftovers have to be


covered and often foil is used. Another reason for often having to use foil is that lids often disappear. Also many times the closing function of packaging is not considered to be hygienic enough so you will put plastic foil for improved hygiene. This was common in particular for bags of powders (such as flour, dessert mixes) and rice packed in paper bags.

One respondent complained that foil is hard to work with. For instance you easily hurt yourself on the barbs where you tear off a piece off foil. Another trouble is that plastic foil is said to easily stick together.

One respondent points out that there is a big difference in type of packaging when comparing a single and a multiuse offering. For a single use one you do not want something big that takes up your whole garbage can and you do not want to pay for resealabilty or reclosability. If it is a product you want to spoon out then resealability is important and also that you can easily reach the content with a spoon.

An observation that might be worth thinking of is that many times you see plastic containers with spices right with lids open by the stoves ready to use. Also bottles of most often ketchup were seen time after time standing upside down, even though they were not close to empty. Is that convenience?

During my field studies I noticed that many times you find measuring devices left in the packages.

Efficient storageBack of house it varies whether products are kept in secondary packaging or placed individually in their primary packages. It varies depending on units and type of products. No common pattern can be seen.

Sometimes you see secondary packaging that you would think would be very convenient to place on the shelves, such as cans of soda that come in paper trays covered with plastic foil. But still the products were put individually on the shelves in their primary packages. When asking why it was done this way the respondents did not have any explanation more than that was how it always had been done.

One explanation to why one unit most of the time took the products out from the secondary package was for hygienic reasons. They said that it was not hygienic to put secondary packages on the shelves because they might have come in contact with bacteria, dirt or alike during transport and while in other storage areas.

Still in many storage areas I visited you see lots of secondary packages. One common explanation is that it is easier to keep the storage area in order because you have fewer items to keep track of. Products which are packed in plastic bags of various kinds are often kept in their secondary packaging because they can not stand for themselves and lying down they are too slippery to stack on top of each other. Another interesting thing that I was told is that manual inventories are done sometimes as often as weekly. That was one explanation to why you saw many secondary packages in the storage areas simply for not having to count each individual pack. One point is also made that during stocktaking it is easier to identify


products when they are in the secondary packages because that is where the product code is.

While visiting storage areas you see that most of the secondary packages look similar; many times they are brown corrugated board boxes (see Figure 5.1). All boxes look the same no matter what the content is. This was experienced as a problem. They said it caused problems when you were in a hurry running in the storage area to find a particular product. It took too much time finding the product you were searching for because it was hard to differ between boxes. In addition you do not know how much is left in them.

Figure 5.1: Typical storage. It is hard to identify which product is which because the packages look similar to each other211.

What adds to this problem according to one respondent is that labelling often is poor. In some cases there is only a label on one side, which is not enough. This is because you want the labelling facing outwards in order to identify which product it is. When a rectangle-shaped box it is not certain that it is the labelled side that is optimal to put outwards, depending on the dimensions of the shelves. To go around this problem the staff writes with a marker to label the products on one more side. Even if a box is labelled on more than one side it happens frequently that you will have to mark them extra because the labelling is not clear enough (too small letters, too light colours, too much information). At one site I visited, the regular stock keeper was on holiday. This resulted in that the boxes were not extra labelled, which was noticed among kitchen staff and caused annoyance.

Another alternative, besides storing in primary or secondary packages is that products are emptied from original packaging once they are opened into new containers with lids, which I saw several examples of during my field studies, in dry storage areas, in refrigerators as well as in freezers. Sometimes the new containers were small sometimes they were big. The most commonly mentioned explanation to why you did it this way was that there was no possibility to close the original package. Another was that it was easier to get the content out from the new containers. Many times the new containers were transparent, which added the benefit of being able to see what the content is and how much is left. To see how much is left is a strength that is unusual in original packaging.

211 This picture is taken only to get a typical example of the type of package described in the text. The picture is taken outside my field studies.


Figure 5.2: Typical example of “new containers” replacing original packaging

Changing containers has also disadvantages according to many respondents. It adds the tasks of changing from packaging to containers and cleaning containers. In addition, it causes loss of the information available (e.g. expiry date, content descriptions) on the original package. Also the loss of the labelling makes it impossible to make complaints about the product. It also happen that you under stress fill new say dessert mix in a just half empty container and the result is that you have a container containing dessert mix of different durations.

During my field studies I was introduced to big metal bins, about half a meter high that were used as mice protection. In these bins bags of dry products in original packaging is kept. One observation I made was that the packages lie all over each other in these bins and content has leaked out from many of them.

Shortage of storage spaceDuring my field studies I noticed that very frequently there is a shortage of space in storage areas. Sometimes goods were found outside storage areas simply because there was not room enough in the storage. Many times storage shelves are overloaded and sometimes the shelves bend into “semicircles”. In situations where the shelves bend you obviously see the products leaning and sometimes falling. Repeatedly the storage areas are so full that the staff is forced to place products directly on the floor even if that is against hygiene regulations. Goods on the floor make it hard to move in the storage areas and also make products hard to find due to the mess.

As shortage of space is common among foodservice operators efficient space utilisation is said to be extremely important. Operating freezers and refrigerators are expensive. One chef adds to this and says that freezers and refrigerators are bulky. Therefore space utilisation there is perhaps even more important.

Another respondent calls attention to that no matter how much is left in a package it normally takes up the same space on the shelves. The respondent provides with an example where this is not true. That is a bag of aluminium that you can press together when parts of the content is taken away and a little wrap function makes the package stay folded, consequently the required space on the shelf is less.

One respondent means that a contributing factor to shortage of space is products with long shelflife. Namely because the long shelf-life will result in that you can buy bigger amounts of goods and thereby get better purchasing deals but you will have less space in storage.


One respondent complains that it is very hard to keep a system in the storage areas. He says:

“I have my system in each storage but everybody follow their own.”

The main explanations are that there is a shortage of space and that people often work under time pressure. For example it happens frequently that someone would take out products packed in primary package from the secondary package, then use half of it and then put it back on another shelf, i.e. not in the secondary package. Besides causing disorder in the storage it is also misleading when ordering. Also, when the storage area is full of goods it happens that you do not think it is worth to reorganise to be able to get the goods where they belong, which explains why you find sodas in the food fridge.

OrderingMany packages back of house look similar, especially secondary packaging. This makes the ordering process unnecessary complicated. The reason is that you will have to be careful so you do not mistakenly confuse two similar looking products and thereby order wrong amounts.

Another ordering related problem that was enlightened during my field studies was that when ordering it is annoying that you most of the time will have to open primary and/or secondary packages to be able to see how much remains of the products.

Packaging waste is bulkyOne expressed problem was the huge amounts of waste in the kitchen that is very bulky.

“We have rubbish everywhere”

A big proportion of waste is said to be packaging. Since lack of space is a common problem this is a cause for irritation. One suggestion to solve the problem was to find ways to reuse the packaging again, simply for using the packaging as containers for leftovers or for other purposes not yet discovered.

One comment made by a respondent was that in particular products that you use frequently and empty quickly should be compact in the garbage can.

Improved shelflifeImproved shelflife is important. Whenever you open the package the product will start deteriorate over time. Shelflife starts to expire from the day it is produced. The respondent says you would want the same quality one day after opening as six months after and sees this as a big challenge for packaging manufacturers. As a parenthesis the respondent says that between 30-50% of product shelf life is spent in distribution trade. About 50% of the shelflife is available to the customer.

The wish for packaging formats that would make ambient distribution of historically chilled and frozen products possible was expressed during my field studies. The respondent claims that more ambient packaging, which would make longer shelf-life products possible would be very useful for foodservice in that distribution and storage


would be more cost efficient. This simply because chilled and frozen refrigeration is more demanding in equipment and thereby expensive.

Another argument given by a respondent for more ambient products is that when looking in refrigerators you will find many different kinds of products. It is quite certain that those products do not all have the same optimal storage temperature.One respondent argues that huge amounts of products are sold as frozen today simply because it is easier for the operator because he does not have to bother that all products ordered have to be used within a few days.

Minimising product wasteTo minimise product waste is central.

“You want to get 100% of the content out because you have paid for it.”

One respondent suggests a solution to this problem that already exists. That is to increase the concentration of the product. To get the right proportions you will add liquid to it (e.g. water). The liquid makes the product more buoyant, which makes the product easier to pour out. Obviously the package size has to be bigger in order to get room for the extra liquid.

Time pressure in the kitchensA commonly mentioned problem is that the work is unevenly distributed during the day. There is extreme time pressure during peak hours. One respondent points out that especially under stress it happens that kitchen staff by mistake not takes food safety, hygiene and instructions into account.

5.1.2.3 Issues deriving from end-consumers

Time pressured consumers want convenienceThe main issue is that consumers are looking for more and more convenience.A probable explanation is that consumers are under more and more time pressure, which has influence on consumption behaviour. One consequence is that products have to be clearly visible and displayed so they are noticed and easy to find.

“They want to get what they want quickly and they require more convenience.”

During the lunch-hour they want to do other things than just eat, such as running by the retailer and pick some groceries or go by the dry-cleaner etc. One respondent means that the weekends are becoming more and more precious, which is the explanation to why errands are squeezed into the lunch-hour.

Because people tend to leave their work during the lunch hour supermarkets become stronger competitors to foodservice. Contract catering also faces stronger competition from high street outlets.

Along with getting less time to eat, customers more and more prefer to eat lunch at their desks, regardless if the food is hot or cold. One respondent says that 75% of all purchases in his unit is take-away. A challenge for packaging manufacturers is therefore to find packaging solutions that better keeps the appropriate product


temperature, whether cold or hot. The respondent also points out that packaging should work minimising condense. Naturally the packaging also has to make the product easy to carry away and convenient to eat at the desk:

“Nobody wants their drink all over the important documents.”

For convenience reasons, one operator thinks it is good if the cutlery is included in the packaging.

One operator sees the need for replacing dispensers for sodas. The main reason is that they are not appropriate for carrying away. The lids are not totally secured according to the respondent – “who would put the typical soda cup with lid and straw in their handbag?” Besides, the respondent claims that the quality of drinks from dispensers is perceived to be lower among consumers.

No matter if it is back or front of house that packages provide convenience for use is said to be of highest priority. Consumers want the possibility to eat on the go and thereby save time:

“You should be able to eat and drive at the same time.”

One respondent gives an example of what he thinks is development towards more convenience. That is deli-bags in airplanes that will be handed out to passengers when entering the airplane.

Snacking is becoming more commonThe snacking trend is an important development to consider in foodservice. Products have to be developed accordingly. One respondent representing a manufacturer provides with some examples of questions: Why is there no replacement of tin coffee? How promote soup as a snack?

Important with snacks is that they should be served individually and it should be handheld to be able to eat straight from the hand. One respondent points out that snacks are also available from retailers but to a lower price. Therefore it is crucial that the snacks you will find in foodservice are special and not like something you would find in retailers. One way to differentiate is in the way it is presented or delivered to the customer. In addition the foodservice snack also has to provide more convenience.

One observation I made while in the UK is that sandwiches can be bought almost everywhere. For instance in Boots pharmacy and WH Smith’s book and paper store there are a wide range of sandwiches and drinks available.

Flexibility in choiceConsumers in foodservice want to see a big variety in choice. One respondent argue that even though many consumers in foodservice choose the same products repeatedly it is still perceived as good when they see many options.

Packaging should make possible the flexibility of choice. For example you do not want the dressing to be integral in the packaging for a portion of salad. The optimal,


according to this respondent is rather that you fill a container with dressing at the time of purchase to postpone the choice as much as possible.

Besides, for convenience reasons you want to be able to connect the dressing or other condiments to the main package. One way would be to have a little hollow in the salad bowl to put the dressing in.

Increased health concernsAnother development in foodservice is said to be increased health concerns. The big chains (such as Mc Donald’s, KFC and Burger King) have started to develop concepts that are more nutritious. There is a pressure on the big operators to develop healthier offerings for children in particular. There is also a will to replace carbonated drinks in schools with milks and juices; the question is just how to make these drinks more attractive to children.

In the above section (see “Flexibility in choice”) there is an example of dressing coming with the ordered salad. There is one more reason for keeping the dressing separate, which are health reasons. Health conscious people do not want their food to “swim in greasy” dressing. In a case where the dressing is separate from the rest of the food, but still integral to the packaging, the person not wanting dressing will have to pay for it anyways and no customers like paying for something they do not want.

Moving and receiving goodsOverall the handling of products in foodservice is rougher than in retail mean respondents. This you have to consider when choosing type of packaging.

TransportA main issue for distributors are that a big proportion of products (18% of deliveries according to one distributor respondent) require splitting of cases. This means that primary packaging often is used as transport packaging.

I made one interesting observation while in the warehouse of one operator. In order to make the loads on pallets stand straight, many pallets were placed on top of each other with goods in between to even out the loads. There has to be more convenient ways for people working in warehouses?

DeliveriesDeliveries often cause problems according to one operator. When deliveries arrive the staff by the loading platform should let the transport people into the building to deliver the goods. Then the loading platform staff should notify the storeman to come down to get the goods up to the restaurant.

Deliveries come many times a day. Often they do not arrive according to schedule, which causes problems for both the storeman and the loading platform staff, who may be busy with other things and therefore not have the time to take care of the deliveries outside schedule. The result is that the storeman many times finds deliveries standing waiting just by coincidence when he is down for other errands because the loading platform staff has not been able to reach him. It also happens that the loading platforms staff is busy with other tasks and when the transport people get tired waiting to get hold of the loading platform staff they just leave the goods outside.


When receiving a delivery the storeman from the restaurant always manually register the temperature, invoice number and date. If the temperature falls outside the appropriate range the goods are not accepted. It happens that deliveries come to the outlets with ambient, frozen and chilled products at the same pallet, sometimes in no order what so ever.

“Sometimes I have to unload and reload the pallets many times to get the right things at the right place.”

“Mixed pallets are frustrating, especially if the frozen food is on the bottom.”

One storeman says that his job is very heavy. The worst example according to one respondent is the big water tanks that are to be placed around the office for staff to take water from.

“I have to go to the gym to be strong enough for my job.

5.1.2.4 Packaging as a tool to stimulate increased sales

Targeting of offersOne respondent sees the need for a better targeting of offers to satisfy the wide variation of needs in the fragmented foodservice market. The optimal would be to have different offerings depending on which distribution channel and depending on who the end-customer is, but the volumes are not big enough to make it profitable, according to respondents.

One example of a way to target offers, introduced by respondents, is portion packs of jams of a specific brand. One kind of secondary packaging is a tray covered with plastic and another is a corrugated box. The trays are targeted towards the sales through cash and carries, where the customer (often independent outlets) actually sees the products prior to purchase. Jams sold in corrugated boxes are enough for the sector who use distributors or wholesalers and the customer do not see the package prior to purchase anyway.

Backman212 points out that cash and carries and wholesalers require different kinds of packaging. In cash and carries the attractiveness of the package is more important. Also for cash and carries it is common that customers carry the purchased goods home manually, which also should be considered.

One operator said that it is very important in foodservice to present new offers frequently and be innovative in those offerings. He means that this applies particularly to contract catering to prevent customers to choose high street alternatives when searching for a change.



When talking about take away, one respondent expressed the wish for packaging that better reflects the products. For instance one specific packaging take away box for pasta and one for Chinese.

Locking in customers to buy moreOne respondent says that packaging is one way to lock in consumers to using your products repeatedly. For example you would provide the customer with a pump that only fits into your own packaging. In some cases you can give the pump away for free and in other cases, for instance when it is a patented solution, you charge the customer for it.

One respondent from an operator says that he wants new ways to link purchases of different products. Perhaps the package can add two or more products together? Alternatively advertisement can be put on one package to make the consumer tempted to buy a complimentary product.

Presentation of the productOne operator has noticed that the customers want to see what they are buying and sees an increased need for product visibility in front of house packaging. Many operators mean that the customers eat with their eyes. In other words they want to be able to see through the front of house packaging in order to see the content. One adjustment in trying to make the products more visible to customers is “live cooking” where the customers can watch the chefs working.

The importance of the look of front of house shelves is emphasised over and over again by many respondents. For example one point is that good-looking shelves require that all packages are facing forwards. Having to take this under consideration adds time to the process of shelf replenishment, one operator complains. Also customers normally do not think about putting back products facing forwards after having looked at the products.

“It is very ugly when you see the barcodes and it is annoying when having to turn the packaging around all the time.”

Another challenge for packaging manufacturers is to make front-of-house packaging look like it is containing more than it actually does. The respondent means that it may seem dishonest, however consumers only want big containers to believe they are getting lots of value for their money. In many cases they do not finish all the food or drink anyway and the respondent means that the consumer will not even notice that the amount of content was less than it appears when looking at the size of the container. KFC’s chicken popcorn has used this method and according to the respondent succeeded very well showing a significant increase in sales.

One observation I made was that secondary packaging is seldom used for display front of house. Most of the time each primary pack is placed directly on the shelf one by one, no matter if it is juices, milk, yoghurts, sodas, sandwiches, desserts or whatever. For example soda cans was laying down forming pyramids. I also saw examples where the primary packaging had been taken out from their secondary packaging and placed in plastic boxes. This applied especially to chocolate bars.


One of the outlets I visited served a small breakfast buffet. When seeing this I made a few observations. One was that butter and jam was served in bowls, which at the end of the breakfast time looked rather messy. Another thing I reacted on was the milk served in plastic drums. You saw many packages, of which many half empty, some full standing on the table.

5.1.3 Concrete examples of good and bad packagingDuring my field studies I asked respondents (primarily chefs) if they could give examples of packages that they thought were particularly good or bad and justify why. A summary is found in Table 5.3 and more thorough information is given in the reminder of this section.


CONCRETE EXAMPLES OF BAD PACKAGING

BACK OF HOUSE

Tins

Cannot open if you do not have a tin opener availableDifficult to open even if you have a tin openerNot only bulky in garbage but also dangerous because of sharp edgesTake up excessive space in storageAttract high costs in environmental leviesNot possible to reclose

Plastic bucketsNeed to get rid of a plastic piece before you can open the lidThe plastic piece ends up anywhere, even in food served to customersYou can easily hurt yourself on the plastic pieceYou often loose the lid

Bag in boxes*The plastic bag cannot stand on its own so you cannot put it aside

Once opened you have to use it all because you cannot reclose it. If it was easier to put the bag aside it would be possible to pour the leftovers in a new container, but now you tend to throw the rests away instead.

Rectangle shaped cartons with the opening on the gableWhen wanting to empty the package all at once you tear the top off. The result is a mess because the package is weak on the gable where the opening is and the content will decant.

You cannot reclose it well enough and when bringing the package down from the shelves you do not always see that it is opened (because the opening is little and on a gable) so you may end up decanting the content

Plain gable top packages without opening deviceYou cannot reclose them good enough so if the package falls the content pours out, in particular for liquid foods.

Hard packed foil packagesYou cannot reclose the package

It is impossible to open without a knife or a pair of scissors or a knife. Even with a tool they are difficult to open.

Plastic bottles with e.g. ketchup or dressingsWhen the bottles are starting to get empty it is hard to get the content out

Generally all tape on packaging Tape is messy because it is hard to get off and it easily gets stuck to things

Generally packages that requires a knife or a pair of scissors to open are annoying for four reasons:1) It is annoying having to find a tool2) You ruin the tool3) You easily cut yourself4) You use the tool for the food in the next second, which risks food safety

Generally all packages that you cannot reclose

Generally all packages with a sheet of foil under the lidIt is hard to get it all offSometimes pieces of foil ends up in customers’ stomachs

Generally all packages that contains powderPowder always “puffs” out no matter how careful you are

FRONT OF HOUSE

Portion pouches with e.g. ketchup or mayonnaiseHard to open

Glass bottles of e.g. ketchup or dressingsEither you get nothing or way too much out

Take-away boxesYou cannot see through them=>Have to open them by the cashier, which is humiliating for the consumer and time-consuming

*The kinds where you have to get the plastic bag out from the carton to get the content out

CONCRETE EXAMPLES OF GOOD PACKAGING

BACK OF HOUSE

Knorr’s four- colour print cardboards as secondary packagesThe package stands out and is easy to find

Knorr’s cartons for croutonsThey are good to stack on each other. You can reclose the package (However if you are in a hurry you will tear it open which ruins the possibility to close it again)

Transparent plastic jar of mixed dried mushrooms“You can see through it. You know what’s in it and how much. There’s a screw top and no silly foil”

FRONT OF HOUSE

Kellogg’s portion cereal packages with half flakes and half milkIt adds convenience for the customer in getting a complete meal in one package

Jams in straw shaped packagesThin opening makes it easier to dispense the product where you want it and nowhere else

Packages with toys connected to themA good way to attract the customer

Carton packages for wines are preferable everywhere where the glass easily brakesE.g. on picnicsE.g. on airplanes where you not only hurt yourself if the glass breaks but also the glass bottles could be used as weapons

Domino’s pizza cartonsThe hollow in the package is there for making it possible to pour some dressing in

Marks & Spencer’s so called steam lineThe food get steamed in the microwave which is argued by Marks & Spencer to be a healthier way to prepare the food

Coffee cups for take away with one size lids for different sized cupsFlexibility and standardisation at the same time – you only need to manage storage levels for one kind of lid

Table 5.3: Concrete examples of good and bad packaging


5.1.3.1 Concrete examples of bad packaging

Back of houseTin cans were one specific example of particularly bad packaging. The reasons given are many. One is that you cannot open them if you do not have a tin opener available. The lid and the tin have sharp edges that you easily cut yourself on. The tins also cause problems in the garbage. Not only are they bulky, the lid easily cut the trash bag open or hurt the people who empty the trash. Another problem is low space utilisation in storage areas and also that it attracts high costs in terms of packaging environment levies. In addition, if the tin is partly dispensed you will have to get a new container to store the rests in because you cannot reclose it and foil does not stay on the tin.

One operator I talked to mentioned that there are smaller tins, which has an opening device. They are better than the bigger ones for two reasons; they are easy to open and the lids stay connected to the container without causing difficulties in getting the content out.

Generally all packages that you cannot reclose are annoying packages according to respondents. This is for hygiene reasons and that you want to prevent decanting if the product falls.

One chef said that all powder products tend to cause a mess in the kitchen. When opening the package it always “puffs” out a little no matter how careful you are.

Plastic buckets (e.g. typical for mayonnaise) are not very popular (see Figure 5.3). One reason is that there normally is a little plastic piece you need to get rid of before being able to open the lid. This little thing causes problems; sometimes it falls into the food unnoticed and ends up on customers’ plates. It often falls to the floor, which also is annoying. Or stays on the working desk, and ends up in some other food. In addition the plastic piece is sharp and you easily hurt yourself on it. Besides it is common that you loose the lid to the bucket. One respondent points out that if there would be a pump device to it you would not have to open the lid every time you were to use the product.

Figure 5.3: Plastic bucket with a “plastic piece”213

213 This picture is taken only to get a typical example of the type of package described in the text, i.e. the problem is not specific for the brand shown in the picture. The picture is taken outside my field studies.


Bag in boxes, where you have to get the bag out of the carton to use it is another package causing hassles. You cannot put it away from you, because it cannot stand and instead just flows out to the side. Once you have opened it you have to use it all at once because you cannot reclose it. One respondent says that you could get e.g. the milk into a bottle of some kind but that is complicated especially since you cannot put the plastic bag away from you. It happens that you prefer throwing what is left away. A zip-function is a suggestion given to make the package more functional. Many packages have a piece of foil under the lid, which cause annoyance for many users. It is difficult to get the foil off in one piece and it is hard to get all the foil away. Sometimes pieces fall into the product.

“Foil in customers’ stomachs is not popular.”

Another bad package is the rectangle shaped carton with the opening on the gable (e.g. used for couscous and rice). An example is shown in Figure 5.4. If you want to use the whole package you want to empty it quicker so you open on the top instead, but the package is weak where the actual opening is which makes you open more than is intended and the result is that you poor out the product all over the place. It is possible to close the package but not good enough. When taking it out from the shelf you do not think about if it has been opened or not and the opening is little and on the side so you do not always see it. The result is that you decant the content out too often.

Figure 5.4: Rectangle shaped carton214

Plastic bottles for instance for ketchup or dressings also cause hassles:

“Normally you don’t bother to close them and the opening gets messy with scraps of food.”

Another hassle with these bottles occurs when the bottles are starting to get empty. Then it is hard to get the content out. The solution is to store the bottles upside down to get the content to pour down.

Plain gable top packages without opening devices are not considered optimal either. The reason is that you cannot reclose them tight enough. If they fall, the package sometimes opens and the content pours out, in particular if it is liquid foods.

214 This picture is taken only to get a typical example of the type of package described in the text, i.e. the problem is not specific for the brand shown in the picture. The picture is taken outside my field studies.


Another unpopular package is the foil ones filled with some kind of powder (e.g. coffee or mashed potatoes). The foil is filled enough for the content to make the package stiff. One annoying aspect is that you cannot reclose the package. Another is that it is hard to open and you will have to use a pair of scissors or a knife to open the package.

In general packages requiring a knife or a pair of scissors in order to open them are not popular. Four reasons are given: 1) It might be hard finding the tool you need, 2) you ruin the tool, 3) you easily cut yourself, 4) you use the pair of scissors or the knife that you in the next second use for the food.

Generally, packaging that has tape on them is messy according to one respondent (see Figure 5.5). It is hard to get the tape away and the tape easily gets stuck to things.

Figure 5.5: Package with tape. The tape is annoying because the tape gets stuck to everything.

Front of housePortion pouches typical for mayonnaise and ketchup are annoying because they are hard to open.

Glass bottles of ketchups are hard to dispense from, either you get nothing or you get way too much.

I made a general observation when doing my field studies. That is that you see lots of non-ergonomic handling of products. For example when loading pallets heavy boxes are lifted, sometimes in turning movements and also you will have to bend down to load products when the pallet is empty. To increase efficiency you often see that the staff takes more than one box at a time.

One operator wishes that there were see-through take away boxes. Today you can only find totally white ones. The problem is that it happens that customers lie when telling what is inside the box to get away with paying less, which result in loss of income for the restaurant. The cashiers do not really like opening them because it is humiliating for the customers and it lets the heat out. Also opening them is time-consuming, which increases the waiting time in the line.

5.1.3.2 Concrete examples of good packaging

Back of house


Knorr’s four-colour print cardboards as secondary package for pasta were given as a good example of packaging. The package stands out and is easy to find.

One respondent showed me a transparent plastic jar of mixed dried mushrooms that he thought was excellent packaging:

“You can see through it. You know what’s in it and how much. There’s a screw top and no silly foil.”

Another popular package is the carton for Knorr Croutons. Inside the carton is a plastic bag. They are good to stack on each other. You can reclose the package. However, if you are in a hurry you will tear it open which will ruin the possibility to close it again he added.

Front of houseKellogg’s cereal packages with half containing milk and half containing flakes is mentioned as smart package that adds convenience for the customer because you get a complete meal in one package.

Rombouts espresso was given as an example of smart packaging. The coffee came with filters so the only thing that the customer had to do was to add hot water.

Another example of a package that stands out is the packages for jams shaped as a straw. The advantage is that the opening is thin, which makes it easier to dispense the product where you want it and nowhere else.

Toys that are connected to the package are mentioned as a good example of a package that attracts customers.

Glass packages on airplanes might be dangerous. If the glass breaks it can hurt people and also glass bottles may be used as weapon. Therefore one respondent argues that on airplanes cartons should replace glass bottles. Also under other circumstances it is safer to avoid fragile glass and use cartons instead, such as during picnics.

Domino’s pizza has a little hollow in its pizza package to pour dip-sauce in for making the crust taste better. That is an innovation in packaging that adds value. One operator gives this as an example and says that he would like to see more innovations like this.

One respondent gives an example of packaging that he thinks is interesting. That is Marks & Spencer’s so called steam line where they claim the food gets steamed in the microwave thanks to the innovative package. This is supposed to be a healthier way of preparing the food. Marks & Spencer charge a premium price for the steam line.

One respondent brings up coffee cups for take away as worthy to note. What he thinks is appealing with this specific coffee cup is that there is flexibility and standardisation at the same time. The flexibility is in that there are many sizes of cups available but the lids are still in one size that fits all, which is where the standardisation comes in. This is something he would like to see more of.


5.2 Different Influences on Packaging DecisionsThe field studies information I present here is related to the second objective of this study, which is to point out which step in the chain is prioritised the highest when deciding on a packaging solution. A summary is found in Figure 5.6.

Figure 5.6: Summary of different influences on Packaging Decisions

5.2.1 Influences depending on supply chain characteristics

5.2.1.1 Manufacturers in direct contact with bigger operatorsThe manufacturers deal directly with the big players on the operator side. After the manufacturer has come to an agreement with the operator the operator contacts their nominated distributor, but the relationship between the operator and the manufacturer will be kept.

Bigger operators often get special prices. The manufacturer and the operator agree on a price and then the operator will invoice the price difference between what they are charged by the distributor and the price they negotiated with the manufacturer.Food manufacturers are almost never in contact with smaller players because smaller players will get their products straight from intermediaries. Consequently, food manufacturers do not always know where their products go or who the end-customer is.

5.2.1.2 Distributors in direct contact with smaller operatorsDistributors are in direct contact with independents and thereby gain knowledge of the end-customers and their behaviour. The knowledge is not freely accessible for manufacturers and distributors tend not to share this knowledge with suppliers in normal cases, according to respondents. The distributors will be the ones who give instructions of what the independent part of the foodservice market demands. The

Different Influences on Packaging Decisions

Decision is based on supply chain characteristics

Decision basis depends on who you ask

Traditionally: minimal direct cost of packagingLooking for packaging that fits into already used plant configurationsConsidering only the packaging that is already used

Today: Looking for NEW packaging solutionsCustomers are involved in packaging decisions

Food manufacturers’ marketing departments make internal packaging decisions

The package’s influence on purchasing decisions:

”No supplier has ever explained the benefits of a specific package during negotiations. Packaging has low priority and will not be on the agenda unless the supplier brings it up.”

“I predominantly look at the price but also quality. But I don’t consider packaging.”


result is that distributors to an extent are hard to control. In accordance with the market information that distributors have, they make campaigns and special offerings.

The distributors choose what brands they want to market and charge a listing fee for listing them in their catalogues. If independents are too small, sometimes distributors refuse to sell to them. This forces independents to get their goods from cash and carries or ordinary retails.

5.2.1.3 Distributors sometimes cause troubles for manufacturersThe manufacturers expressed some complaints that distributors had too much power in the supply chain. For example one respondent wishes that distributors would separate competing brands on different pallets.

The fact that often the manufacturer is competing with their customers’ (i.e. the distributors’) own brands is considered a problem by manufacturers. Especially when they actually manufacture customers’ own brand products. The manufacturers want to make their own products superior because they want to charge a premium price. Naturally the customers do not want their products to be of lower quality. For commodities where the processing is simple the problem is further complicated for manufacturers because then it is difficult to make a difference in product quality.

Another complaint was that it happens that distributors copy and substitute products. Further, it happens sometimes that distributors tell customers that a specific brand is out of stock and send their own brand instead. Because it is hard to proof distributors get away with it.

One respondent points out that distributors often choose to package their own branded products in the exact same type of packaging that the manufacturer uses for his competing product.

One respondent points out that if they experienced too much hassles with distributors they would start with their own distribution.

5.2.2 Manufacturers’ basis for deciding on how to package their productsThe basis of packaging decisions differs between the different companies that I have talked to.

Respondents from one company say the major issue for decisions of type of packaging is to lower the direct cost of packaging. Besides, a packaging solution that would fit into an already used configuration is looked for.

The other responding company says that before when the single role of packaging was seen as protecting the product only available packaging solutions were considered. However, today the situation is different. He says they have realised the importance of functional packaging and always look beyond the packaging that is used currently. Also, ideas used to come primarily from marketing but nowadays the customers are much more directly involved in packaging decisions according to the respondent.

Respondents point out that it is hard to obtain economies of scale in the foodservice market because the market is so fragmented. The retail market is more organised and


can easier make new or changed products known and visible, thanks to leverage effects.

Return on investments is more insecure in the foodservice market according to respondents. On the foodservice side you will have to persuade the benefits of a new or changed product to hundreds of thousand of outlets and in addition, those outlets are very different from each other.

One respondent means that neither manufacturers, nor customers question the packaging, instead they just continue using the kind of packaging they have used before.

“Packaging decisions are based on tradition rather than rationality, in particular for back of house packaging.”

Regarding front of house packaging there is at least a little stronger emphasis compared to back of house. The explanation is that the customer sees and can actually feel and hold the product before the purchase. That way it is much easier to communicate why the product would be better than competing alternatives.

When looking for packaging manufacturers one respondent said that they look for suppliers who can provide total solutions, or in other words supply both the equipment and the packaging materials. They say the reason is that good innovation is not done in isolation.

One respondent points out that in their plant the mixing process is slower than the packaging process. In other words, the mixing process is the bottleneck and it would be of no use to change the packaging equipment unless the mixers are changed.

5.2.3 Who has a say when manufacturers choose packaging solution?

5.2.3.1 Manufacturers?None of the respondents said that manufacturers are in a power situation compared to distributors or operators, meaning that they cannot do anything that oppose to what their customers demand of products. What they said however was that strong brands bring on more power compared to competitors less strong brands and can enjoy premium prices.

The following sources are mentioned of respondents as driving a possible change to packaging:

- customer demand- a competitor has changed type of packaging for the competing brand- the result from a packaging company (e.g. Tetra Pak) presenting interesting

offerings or new innovations;- ideas that marketing has come up with- Proposals from operations, often because they have identified free capacity in

some packaging lines


5.2.3.2 Distributors?Manufacturers consider intermediaries as a necessary evil to reach the fragmented market, in other words intermediaries do not have a say regarding the products or the packages, according to manufacturers. The exclusion is when it comes to distributors’ own brands.

One respondent points out that there really is no need to take packaging related needs of the distributors into account. What they do is transport, store and deliver and that is also done internally in the manufacturer’s plant and in transport to distributor. That way the need of the distributor is considered although indirectly.

Another respondent argues that if a package would jeopardise the distributor’s handling of the products the supplier would probably be charged higher prices and in the worst case refuse to list the supplier. This would be a problem for the manufacturer in question because he depends on distributors to reach out to the market. If the product considered is a commodity, which limits the loyalty of the customer the problem for the manufacturer might get more serious. However, the customers might demand the specific products and the distributor will have to list them anyways.

The distributors have a different view. According to the distributor, packaging for outside brands will be discussed and the distributor will give their standpoint. Below are statements from a distributor:

“There is cooperation in both product development and packaging development where the mentality of the manufacturer allows it.”

“Suppliers should have done their homework on packaging when they come to negotiations.”

The distributor says there is a dialogue between distributors and food manufacturers when it comes to packaging decisions. However, they only look at the already available types of packaging and do not consider new developments.

It is possible that a distributor decides not to list a product solely on the basis of non-appropriate packaging, at least concerning primary packaging. Secondary packaging is seldom taken into account, but is starting to be more and more so.

One respondent points out that there are limits to what extent a distributor can limit packaging specifications. Limiting packaging specifications too hard would also limit the number of suppliers, which could be a competitive disadvantage.

“Packaging is important in specific areas, whereas in other conformance with minimal requirements is enough.”

The main reason why it is hard to persuade food manufacturers to use new types of packaging is that they are bound to use their current packaging machinery, equipment and materials. In this perspective the distributor does not have much influence over suppliers:


“As long as the packaging is OK, then it is also accepted in general matters.”

“We leave packaging issues to the supplier. As long as the package is good enough to keep customer complaints out we are content. And if there are customer complaints they are passed back to the supplier.”

One of the distributor respondents wants to advice packaging manufacturers (e.g. Tetra Pak) to approach food manufacturers and then the food manufacturer and the packaging supplier should come together to the distributor and propose new packaging solutions. The reason is that at the bottom line the distributor has little influence over packaging.

(There are two specific cases that respondents from the distributor do not directly involve in this section. That is contract distribution and the packaging of distributors’ own brands. Concerning their own brands, the distributors claim that they have total control over packaging. When it comes to contract distribution the distributor has little influence over such matters as packaging.)

5.2.3.3 Operators?Manufacturers say that when deciding on a package as well as in product development the customer is in first focus. Market research is done among end-customers and sometimes among end-consumers, but distributors are not said to be involved. When launching a new product one respondent says that packaging is included in the market research.

One operator respondent says that they feel they are too little of a player to be able to have a say regarding packaging. They do not think that their voice is important enough for suppliers to be taken into consideration. However, the respondent says that their ideas and needs are likely to be similar to most of their competitors’.

For front of house packaging it happens that distributors give advice to manufacturers based on their knowledge from being one step closer to end-customers. The advice is welcomed but only considered as advice and not as requirements. Regarding back of house packaging the respondents have never been given advice or instructions from intermediaries.

One respondent points out that big chains are more sophisticated compared to independents in their product development and are more aware of what they need and in turn what their customers need. Independents on the other hand tend to just accept what is being offered. Big players sometimes give detailed specifications of what they want and those specifications may include packaging. However, according to experience of the respondent’s company, normally the operator does not require packaging that goes beyond what has been used traditionally.

5.2.4 Marketing makes internal packaging decisionsManufacturers’ marketing departments make internal packaging decisions. The explanation is that they are closest to the customer. Technical departments have a say when it comes to practicalities such as size but it is rare that marketing’s packaging proposal is significantly changed due to what other departments say. The reason is that marketing supposedly know what the customers want.


One respondent says that when marketing wants to do changes to packaging the normal first reaction from the technical side is objection. The more variation in packaging, the more changeovers for operations to deal with so if operations could decide they would use the same kind of packaging for all kinds of products, says one respondent. But marketing normally persuades them about changes quite easily.

5.2.5 The package’s influence on purchase decisionsWhen launching a new product the package is not specified. Criteria for choosing a specific supplier are global deals and price negotiations and not packaging in particularly not for back of house packaging. When deciding on type of packaging only already available packaging solutions are considered.

“No supplier has ever explained the benefits of a specific package during negotiations. Packaging has low priority and will not be on the agenda unless the supplier brings it up.”

One operator says that only when he is to launch a new front of house product the package functionality although not look might be at least a little considered. However, when at the point of testing the product through market research, the package is not included.

One chef, who is responsible for ordering says:

“When ordering you look solely at the price – the package is not considered.”

Another one said:

“I predominantly look at the price but also quality. But I don’t consider packaging.”

One operator points out that when ordering back of house products you choose product looking in a catalogue with very few pictures that could present the packaging. In practice this means that most of the time the customer will not see the package until it is delivered to the outlet, i.e. after the time of the purchase.

“The only thing we as a customer would notice if a supplier would use advanced packaging would be a higher price in the price list.”

The only case when you see the product prior to ordering, according to one of the chefs is when there are new product launches and the suppliers offer product tests. In that case they do see the packaging but the chefs I talked to say that the package still does not have any influence on purchase decisions.

One respondent from the distributing company approximates that in 75% of sales the customer does not see the packages or the products before delivery. The ordering is done via a supplier catalogue with texts describing more or less name, volume, and price of the products. The reminder is where more sophisticated sale methods are used to target a specific customer. In this case there are better possibilities for example to explain benefits of a new kind of package to the customer.


All outlets I visited depend on central purchasing departments. It is central purchasing which nominates suppliers and specific brands and if the outlets would use suppliers or brands without approval from central purchasing they will get fined. One general manager said expressively that the individual outlet did not have much of a say concerning what supplier to choose. The aim of them having central purchasing departments is economies of scale.

In the sites I visited they had few but more than one possible supplier to choose from for each type of product, although there are some products that are supplied by only one supplier. However, most of the time the chefs use the same supplier for a specific product and only if there would be a temporary problem or a special offer they choose the alternative supplier.

Central purchasing encourages the chefs to look for special offers and to try to integrate these in the menus. One respondent saw a tendency for more and more reduced flexibility in the choice of suppliers. He thinks the reason is that fewer suppliers supposedly mean fewer papers, better discounts and a more efficient tracking process. Although, he says having only one supplier still will be rare, because that gives suppliers too much power.

One respondent points out that even if negotiations are done between central purchasing and suppliers, suppliers still build relationships with each unit. He also says that even in chained outlets there will be limits to how uniform the chain can be.

“All units have to be individual in order to satisfy the unique needs of the client.”

He gave the example of that white-collar workers working side by side with blue collar workers means special needs for contract caterers, only white collar workers means other needs, while only blue collar workers also means different needs. Depending on the geographic origin of the client company the needs differ as well.

The respondent mentioned a particular brand of smoothies (“innocent smoothies”) that is sold at a premium price. In some outlets the demand for these smoothies were almost zero while in some outlets they were extremely popular.

His point is that this puts constraints on to what extent chained outlets can be seen and treated as one player. The same concept does not work everywhere.

5.2.6 According to the consultant’s opinionManufacturers have least power in the foodservice supply chain. Operators always have power but to different degrees. Distributors and operators have the power in different situations. Where it is big group-operators the operators make the rules and regarding chains ending in small outlets the distributors have the greatest influence.215



5.3 Communication of Packaging IssuesThe field studies information I present in this section is related to the third objective of this study, which is to find out how packaging solutions issues are communicated, downstream as well as upstream in the supply chain.

5.3.1 Expressed wish for cooperation within the supply chainEven though packaging seemed to be of low priority for most respondents the wish for cooperation with food manufacturers to find improved packaging solutions was expressed. The main purpose with this cooperation was to find user-friendlier packaging.

5.3.2 Communication channelsRespondents imply that there are many communication channels for a food manufacturer in foodservice to promote his merits, such as more sophisticated packaging. Strong marketing efforts, including direct marketing, is said to be vital.

Besides through marketing, trade press and exhibitions are possible means. Distributors’ editorials are another communication channel. Extraordinary news is brought up specifically in these editorials. Although for foodservice niche players, it becomes more difficult to communicate with the market simply due to a smaller marketing force.

I got one clear indication that the communication of packaging changes was poor, namely in the case mentioned above (see section 5.1.1.2) where one distributor had made design changes to its own brand packaging. Nobody has made the kitchen staff in this particular outlet aware about the changes; neither has the kitchen staff noticed the supposed improvements and hence not realised their purpose. However, when I explained the changes and the purpose behind them the people I talked to could see the benefits.

“Perhaps purchasing knew about it but we surely don’t.”

One manufacturer of these products in question has not noticed any improvement thanks to these changes either. One probable explanation is that the manufacturer’s product code system and the distributor’s (who here owns the brand) code system do not match and the consequence is that the product has to be labelled with two different product codes.

5.3.3 Barcoding in foodserviceFoodservice is considered to be rather manual in the way of working. Retail uses more technology, for instance barcoding.

Optimum Foodservice Supply Chain Initiative (OFSCI) work for improved operational efficiency in the foodservice supply chain with the help of technology. The focus of these initiatives is currently on:216

216 Optimum Foodservice Supply Chain Initiative, http://www.udex.com/Partners/EN/Global/OFSCI_Management_Summary.doc 220403

http://www.udex.com/Partners/EN/Global/OFSCI_Management_Summary.doc


- Establishing best practice for the application of barcodes to units, cases and pallets and their usage throughout the foodservice supply chain.

- Providing a standard electronic method for synchronising structured product data through an Internet based electronic catalogue.

- To set industry standards for the communication of new and changed product information

- Providing a standard electronic method for the synchronisation of prices between seller and buyer.

- The definition of standards for a web based order fulfilment cycle

- Providing a standard electronic method for sharing forecasting and sales data throughout the supply chain

5.3.4 Frozen food guidelinesBritish Frozen Food Federation (BFFF) in collaboration with several distributors and food manufacturers provide with guidelines for how to label outer cases for manufacturers’ branded frozen products in the foodservice supply chain. The driver behind working out these principles was that foodservice operators and distributors had experienced inefficiencies in order selection and deliveries due to poor labelling of secondary packaging. I have summarised these guidelines in the appendices (see Appendix C).


6 AnalysisThis chapter contains a discussion around the most important issues from my field studies. The chapter is divided according to the three objectives of my report. Note that the first objective is divided in two in this chapter.


6.1 New Characteristics of PackagingThis first section of my analysis is a discussion of issues regarding the first part of my first objective with this study, which is to identify for each step of the supply chain, the determining criteria when choosing a certain product in a certain package and why they are important.

Overall, when talking to respondents they have not thought very much of packaging. Rather packaging is often seen as expensive and a necessary evil. In Figure 6.1 I give a short discussion of my impressions of how each respondent group consider packaging:

Operators: Packaging is not a big issue in purchasing decisions for the operators I talked to during interviews. Instead price and quality of products are the decisive factors and then they accept whatever package the chosen products come in. Respondents also point out that most of the time they do not see the package before the delivery because they order from catalogues where the packages are not shown.

In the rather unlikely situation where operators from my field study would consider packaging they would only consider packaging that is used traditionally and not think about how those packages could be improved.

Distributors: Distributors see packages as important, according to my interviews. However, they are not in the position where they can refuse products required by operators that have packaging that are not suitable for them as a distributor. Nevertheless, I believe that if products are packaged in a way that distributors see as opposing customers’ requirements they will not list the products in question.

Manufacturers: According to my impression from interviews packaging decisions are made depending on which package affect the product with the lowest direct cost and what packages solutions are already used in the plant.

However, that is about to change and is already changing at least for one of the responding manufacturers. Packages that will benefit primarily operators’ usage of products are looked for.

Figure 6.1: Each respondent group’s overall thoughts about packaging

When starting discussing packaging during interviews, respondents can provide examples of packaging related problems and can also give many examples of good packaging as well as bad packaging. Respondents can also provide with explanations to why they favour some kinds of packaging as well as why some packages cause troubles and irritation. This I think provides evidence for that the demand for more appropriate and more functional packaging will increase. I think the many characteristics of packaging that respondents from my interviews wished for can guide in finding out what is more appropriate and more functional packages for foodservice.

When there are new demands for foodservice packaging the challenge for packaging manufacturers will be to present their professionalism in packaging and show that they can respond to these new needs.

In this section, in Figure 6.2, 6.3 and 6.4, I present the new packaging characteristics. I divide these new characteristics according to who in the supply chain the requirements derive from. The role of packaging described in the theory conforms to the characteristics of packaging expressed by respondents. In other words, there are no requirements from the “Roles of Packaging”- section in the theory chapter that are not mentioned during the field studies. However, during interviews respondents


directly mention characteristics of packaging that is not included among characteristics described in the theory chapter, which are the ones I refer to as new. Note that none of the new characteristics are in conflict with any of the requirements in the theory.

NEW CHARACTERISTICS AND ROLES OF PACKAGING FROM OPERATORS


Back of House

The package should make up a low share of product price: Packaging is seen as something imposing higher costs. The importance of reducing costs of packaging is emphasised by many respondents. The focus is on the direct costs of packaging. According to the theory chapter the package can also save costs but respondents from my field studies do not consider this.

The package should make it easy to find and recognise products: The package should help to find a product quicker in picking areas and in storage. Good labelling is necessary but not enough. The package look itself also has to stand out for better identification. The fact that lights are dim in storage areas along the supply chain makes this even more important. In the theory the adjacent requirement is the package’s role in communication. According to the theory the role of communication is besides communication to consumers written instructions on the package about how to handle products. The field studies indicate that the role of communication applies to the package itself not only the information on the package.

The package should be robust enough to prevent itself from being damaged during distribution and handling: Product protection is mentioned as one of the basic requirements of packaging in the theory. However, that is not enough. The package itself also has to be robust enough to not get affected by rough handling. One issue is hygiene. Another issue is for example that if the opening function gets squashed during transports the functionality of the package is deteriorated.

The package should provide warnings if weight is excessive: Handling goods is a heavy job. Warnings if goods are too heavy are wished for. This is an extension of the requirement of flow information described in the theory chapter.

Primary Packages

Back of House

Packages should be easy to open and easy to reclose: This requirement has to do with one of the basic requirements of packaging, which is that of convenience. This added requirement provides with some more detail to what convenience can mean. It shows that regarding convenience a very important requirement is that packages are easy to open and also there should be an opportunity to reclose the package again (unless the package is used all in one shot). Respondents complain that reclosability is often overlooked. Often plain packages are hard to close good enough. One solution that I have been introduced to is Tetra Pak’s slide clip that grips the side fin of the gable top. It should also be obvious how the package is meant to be opened and closed and no extra tools should be necessary.

Secondary Packages

Back of house

Also secondary packages have to be easy to open: Easy to open is a commonly mentioned requirement of packaging. Worth noting is that it is not only primary packaging that has to be easy to open. Secondary packages have to be easy to open as well. For example tape is said to cause hassles.

Figure 6.2: New characteristics and roles of packaging from operators

NEW CHARACTERISTICS AND ROLES OF PACKAGING FROM DISTRIBUTORS

Primary Packages

Primary packages have to be robust enough to work as transport packages: Protection of the products is probably the most commonly mentioned requirement of packaging. Worth to point out in regard to this is that because a significant proportion of cases are split the primary package often has to work as a transport package.


Secondary Packages

Packages have to be clearly labelled: Packages are not labelled to satisfaction. When labelling products, dim lights in storage areas have to be taken into account and also it is critical that it is possible to read the labelling from a distance. In addition labelling on one side is not enough for operators because they want to choose which side they want facing outwards.

Figure 6.3: New characteristics and roles of packaging from distributors

NEW CHARACTERISTICS AND ROLES OF PACKAGING FROM MANUFACTURERS


The package should comprise as few units as possible: The reason for this is for manufacturers to have as few units to manage storage levels for as possible and for simplifying the packaging process.

There should be some unity between different packaging solutions: If one or two dimensions are common for different packaging there will be unity in how to handle containers in machines on pallets and in storage.

The package is a way to differentiate products from competitors’ products: Marketing requirements are emphasised also in the theoretical chapter but during the field studies marketing requirements are taken one level higher. Respondents point out that packaging is not only a way to sell and advertise a product but also to differentiate product offering from competitor’s offerings and stand out in the market place.

Figure 6.4: New characteristics and roles of packaging from manufacturers

6.2 Packages Solving Problems and Catching OpportunitiesThis second section of my analysis is a discussion of issues regarding the second part of my first objective with this study, which is to identify problem areas in the foodservice supply chain that can be solved by improved packaging solutions.

When talking to respondents and while visiting plants and foodservice outlets I understood that work does not always run smoothly. Instead of questioning the problems, solutions are found to go around the problems and when asking why things are done in a certain way the answer is often that that is the way it always has been done. Many problems are not directly seen as packaging related but I have tried to see how packaging can actually be part of the solution. My ambition in this section is to find ways how packaging can catch new opportunities in foodservice.

The key issue is to find out how a package can add value to the products. The problem areas I got introduced to and those that I observed give rise to an additional number of new desirable packaging roles and characteristics that might provide with new ideas how packaging actually can add value to the product it encloses:

Packaging should make it possible to eat wherever the consumers want to eat: Eating by a table is less common than it used to be. For instance it is becoming more and more common that people eat lunch at their desk to save time.

Also with the purpose of saving time consumers want to be able to eat while they are on the go. It should be possible to use the time while walking, driving, going by public transports, etc, to eat.

A packaging solution for fulfilling the need of not having to eat sitting down by a table is wished for. This package should focus on convenience and take


into account that consumers do not want to risk getting a mess while eating even though they might carry bags with them, they might talk on the phone or write on the computer while eating, they might be walking or driving on busy streets or they might not have access to napkins.

Packages have to take into account that there is deskilling in the foodservice kitchens: This means that packaging should make the task of being a chef easier. Portion control, higher degree of preparation done early in the supply chain, product formulas that do not require adding more ingredients for fulfilling quality requirements of consumers, more thorough user instructions and packages that take into account that users not necessarily are highly skilled are some issues to reflect over when developing packaging for foodservice.

Packages have to provide portion control: Portion control or packages that can portion to control the amounts used have many advantages. One advantage is that portion control is a possible way to control costs. For example it is a way to limit the amount to the amount that was considered when deciding the price of the meal. Through portion control product waste can be reduced, which also is a way to control costs. It also makes it easier to use the amount that provides the desired taste. During my field studies I also saw many examples of where measuring tools (spoons, cups etc) were kept in the packages, which might risk food safety.

Packages have to work better in storage: Many foodservice problems are related to storage. Packages spend a lot of time in storage and thus have to be more functional there. The fact that many times products are emptied from their original packages into new containers that fit better in storage speaks for itself.

In the theory study volume and weight efficiency is said to be important in order to use available space in transport carriers maximally. But that is not enough - also during storage the space utilisation has to be maximised. The reason is that shortage of space in storage is a general problem.

Goods on the floor, messy storage areas and leaning shelves are clear evidence. One way to increase space utilisation is to reduce the amount of air between packages. When taking this into account round bottoms are non-preferable. A prerequisite for using space on shelves optimally is to be able to staple products on top of each other. Another benefit is reached if you can choose to let the package stand up or lay down for being flexible on shelves.

To improve space utilisation it is wished for that the package does not take up more space than the volume of the product. In other words, if the product is half empty the package should take up less space than if it were full.

Whether primary packages or secondary packages are most appropriate as storage packages is hard to answer but one of them has to be practical in storage. No matter if the storage package is a secondary or a primary package, to fit well in storage the dimensions of the storage package have to optimise


space utilisation and the weight should be low. Besides, the package used in storage should make it easier to find the product quickly.

One thing that talks against having primary packages in storage is that primary packages should be easy to use (open, dispense from, measure from etc) and it might be difficult to develop a package that is both optimal for consumption and storage. According to the theory it is the packaging system all together that should fulfil packaging requirements and it sounds more reasonable to me to let the primary package be optimised for using the product and the secondary for storage (and transport for that matter). In addition, to maintain a good control of inventories it seems logical to me to have as few units as possible to keep track of, which again talks for having the secondary package as storage package.

What talks against having secondary packages in storage is if they have been outer cases during transports. In that case there might be dirt, bacteria or alike adventuring the hygiene. Also primary packages are easier to recognise compared to secondary packages, which favours primary packages in storage.

Nevertheless, especially for front of house products, it should be more appropriate to store in secondary packages and not one by one. The explanation is that shelf replenishment front of house is done with more than one package at a time. Thus it would be of no use having taken out individual packages from secondary packages to place on storage shelves if you are soon going to move them anyways.

Packages should make the ordering process easier: To save time ordering should be done quicker and easier. That packages look different enough to easily differ between products is important while ordering to not confuse products and thereby order wrong amounts. It would also be advantageous if you would not have to open packages in order to know how much is left.

Packages should enable improved shelflife: Longer shelflife lower the risk of having to throw food away due to that it is getting old. Long duration is of no use once the package is opened. It would be beneficial if it were possible to develop a package that would enable the same quality of the product on the day of the opening as after some time.

Packages have to work for food safety: According to Olsmats’217 study there is an increased demand for health and hygiene. Respondents from my field studies agree.

I understood during my field studies that especially under stress, hygiene and instructions are not prioritised. This is a risk of food safety. The package has to work for food safety. One example is packages that make ambient distribution possible, which avoids the problem of having to bother about the temperature surrounding the package. One direct effect is that taking care of deliveries quickly would not be as critical as for temperature sensitive

217 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


products.

An alternative would be to make packages less sensitive for outer temperature fluctuations.

Packages should also lower the risk of staff neglecting food safety. For example if it were easy to portion with the package itself, the risk of the chef putting what happens to be an unclean measuring device (such as a cup) into the product is lowered.

Packages should be possible to empty completely: Users of products want to be able to use all of what they have paid for. Users of products want to get 100% of the product out from the package. It might sound obvious, but in many cases it is more or less impossible to empty a package completely.

Packages should assist consumers in their choice of products: This is a way to stronger market the product and save time at the same time. The package has to stand out in order for the consumer to quickly find what he wants. In case the consumer does not know what he wants it is also important that the package stands out for attracting the consumers’ attention. A good display of products also benefits the operator because the consumer has already made up his mind when reaching the cashiers, which shortens the time needed to serve a customer. Important to remember here though is that it is important that the product has to sell itself because often the staff’s only role in the contact with consumers is to be a cashier and collect money.


Packages should provide with more variety in product offering to target different needs: Today distributors have to split cases for fulfilling requirements of smaller operators. This suggests that there is a need for more flexibility in size offering. An alternative solution could be to make the primary package strong enough to withstand stresses during transports.

In the theory study of Olsmats218 it is suggested that globalisation leads to increased competition, which in turn leads to demands for better product profiling. In my field study overall there is an expressed wish for more ways to target offerings. The package should reflect this variety. I would say that the package should communicate that the product is special and help in creating and communicating the product image. This requires that the product and the package belong together.

During my field studies I also understood that there is an increased demand for more innovation in foodservice. I see this as a good opportunity for packaging. Firstly, the package should reflect the product innovation, but furthermore it could be the package itself that is the innovation.

Packages should provide product visibility: Packages should display the content: According to market requirements the package has to mirror the product and provide information about it. But according to the field studies it seems like that is not enough. The package should also display the content. Because customers eat with their eyes, respondents wish for front of house packages that better display the content.

Packages have to fit with other packages: That the package has to fit with the product is clear. Both in the theory and in the field studies it is emphasised that the look of packages is very important in the package’s role to attract consumers. Shape and graphics both contribute to the look of the package. But what is new is that front of house packages also have to fit with other packages. One explanation is that packages have to look good together for the shelves to look good. The impression of the shelves is critical for the consumers’ perception of the outlet. Another explanation to why packages have to fit together is that packages could be a tool to link purchases.

Packages should fit with less formal eating out occasions: Less formal eating out means that the price per meal consumers are ready to pay will decrease. Backman219 foresees for example that chilled ready-made meals will eventually be more common in foodservice, which in that case packaging has to adapt to.

218 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.219 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.


Interesting to notice among the new characteristics and roles of packaging is that many of them have to do with convenience. Convenience for consumers is commonly referred to as one of the basic roles of packaging. However, when looking at the new characteristics of packaging it seems like convenience for kitchen staff has been overlooked. Also the package’s role in marketing has been underestimated, according to the new characteristics. Note that the new characteristics above indicate that it is primarily operators who can benefit from the new requirements, but it is important to keep in mind that what will benefit downstream actors will also benefit upstream actors thanks to operator preference. Do also note that many of the new characteristics are related to the Olsmats220 packaging demand trends presented in the theory chapter.

6.3 Who is Prioritized in Packaging DecisionsThis third section of my analysis is a discussion of issues regarding the second objective with this study, which is to point out which step in the chain is prioritized the highest when deciding on a packaging solution.

I would say that packaging solutions are not prioritised for anybody. The manufacturers decide on packaging and because customers do not realise the benefits of more sophisticated packages but rather see packaging as something that just costs money, they do not question traditional packaging. I would say that the basis for packaging decision today is a compromise of 1) what the manufacturers think the customers need without asking them about it and 2) the equipment, materials and machinery available.

Olsmats221 argues that packaging can increase quality of life for consumers. There are no doubts to me that packaging can make life easier for foodservice actors as well. Olsmats222 also argues that packaging applications originate from production and distribution demand rather than consumer demand and this study shows that this applies to foodservice too. When saying this I mean that neither foodservice consumers’ nor operators’ (because back of house kitchen staff actually use the products) packaging related demands are satisfied as yet.

In my opinion the main problem is lack of understanding for what packaging can accomplish. Cost of packaging will still be an issue, but the difference if the benefits of packaging are realised is that packaging will not only be regarded in terms of how it adds cost but also how packaging can reduce costs and furthermore how the package can add value to the product.

With one exclusion, I do not see any characteristic or role of packaging from the theory or from the field studies, from any part of the supply chain that precludes other packaging characteristics or roles. The exclusion is the fact that many respondents see packaging as a necessary evil costing money. To deal with this preconceived notion 220 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.221 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.222 Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.


about packaging is a must before packaging can get a stronger position and gain a more appreciated role in foodservice.

One common argument from manufacturers against more sophisticated packaging is that in particular if a company’s processing is simple the package cost makes up a too high proportion of product cost. However if the processing is simple the competitors’ products are likely to be very similar. If the package would function better, the customers and consumers might experience benefits that make them prefer the product and pay a premium price.

Packaging solutions have to be cost efficient, but bottom line is that it is important to remember that the packaging solution with the lowest direct costs will not necessarily result in lowest total costs. It is important to consider if added costs of packaging in one place will reduce costs somewhere else. For example saved time could be translated to money and so can reduced need of storage space. Another way the package can reduce costs is to have a package that minimise product waste.

6.4 Communication of Packaging IssuesThis last section of my analysis is a discussion of issues regarding the third objective with this study, which is to find out how packaging solutions issues are communicated, downstream as well as upstream in the supply chain.

As a consequence of the insignificant role of packaging in foodservice the communication of packaging issues is also negligible, according to my field studies. However, I am convinced there is a need for communication about packaging issues in the supply chain.

Respondents had concerns about the difficulty of reaching out to the fragmented market. If a manufacturer were to use more sophisticated packaging there were worries that the manufacturer would not manage to convince the market about its advantage due to the market’s lack of organisation. One interesting thought is that, theoretically, if there will be more consolidations among foodservice operators it will be easier to reach out to the market because there are fewer actors to approach. On the other hand, the importance of really responding to customer requirements will be greater because the power of operators will increase.

Part of the solution regarding communicating packaging issues I believe would be to increase cooperation in the supply chain. As one respondent expressed it “How do we know suppliers (meaning distributors in this case, authors comment) don’t place products upside down on their shelves?”. What I think he meant was that because products depend on the package throughout the supply chain it is important to understand how the supply chain works in order to develop a package that works throughout the supply chain.


All respondents agree that the foodservice market undergo development and change. According to Backman’s223 words the foodservice market will change from craft operations into running business. Further, it is more than likely that the foodservice market will become more organised. The result is higher competition.

In line with the Fearne et al224 in the theory chapter, in the future market supply chains will compete with supply chains instead of companies competing with companies. With this in mind I believe that the foodservice supply chain upstream actors have even stronger incentives to bear in mind that more sophisticated packaging benefit downstream actors, which will make the whole chain more competitive. Thereby higher direct costs of packaging is motivated if it can benefit the supply chain as a whole.

I believe packaging is also dependent on strong marketing. It is critical to determine what you want to accomplish with the package, carry it out and communicate the point of difference.

Optimum Foodservice Supply Chain Initiative (OFSCI) is an interesting step towards more collaboration in the supply chain. OFSCI provides a common language for communication between different foodservice supply chain actors. One of the focus points of this initiative is to set standards for the communication of new and changed product information. In that case, OFSCI could also be a communication channel for presenting new or changed packaging. Perhaps OFSCI could also be a good compliment to providing information on packages?

The guidelines that the British Frozen Food Federation provides with are one example of packaging related cooperation. Considering that this study shows that packaging has big importance in foodservice and that packaging is integrated throughout the whole supply chain, there ought to be a need for more similar collaborations.

223 Backman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.224 Fearne, A., Hughes, D., Duffy R., (2001) Concepts of collaboration: supply chain management in a global food industry, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.


7 ConclusionsThe purpose of this chapter is to present my conclusions regarding each objective. Consequently the chapter contains one section for each objective.


7.1 First Objective

In short, there are great opportunities to improve packaging solutions to fit better with foodservice needs. Packaging has a big role to play in foodservice – they just do not realise it because the focus is too much on the direct cost of packaging. In other words, there is some work to be done in demonstrating value for money for packaging in foodservice, which is a challenge for packaging manufacturers.

This study indicates that there is a lack of understanding in foodservice for that packages can actually add value to products. At the same time respondents can give many examples of annoying packaging and of how packaging can be improved. Thanks to this information I have been able to identify a number of new characteristics of packaging that would benefit foodservice. I present these characteristics in Table 7.1.

My first objective with this study is to identify for each step of the supply chain, the determining criteria when choosing a certain product in a certain package. I also aim to clarify why those criteria are essential.

Furthermore, I aim to take the study one level higher, in trying to identify problem areas in the foodservice supply chain that can be solved by improved packaging solutions.


NEW CHARACTERISTICS AND ROLES OF PACKAGINGOPERATORS DISTRIBUTORS MANUFACTURERS

No matter if it is secondary or primary packages

Back of House

The package should make up a low share of product price

The package should make it easy to find and recognise products

The package should be robust enough to prevent itself from being damaged during distribution and handling

The package should provide warnings if weight is excessive

The package should comprise as few units as possible

There should be some unity between different packaging solutions

The package should be a way to differentiate products from competitors’ problems

Primary packages

Back of House

Packages should be easy to open and reclose

Primary packages have to be robust enough to work as transport packages

Secondary packages

Back of House

Also secondary packages have to be easy to open

Packages have to be clearly labelled

Table 7.1: New characteristics/ roles of packaging

During my studies I have also found many problems that seem to be general in foodservice. The problems are not directly seen as packaging related but I have tried to see how packaging can actually be part of the solution. I also aim at finding ways how packaging can catch new opportunities in foodservice.

Table 7.2 below summaries the ideas of which problems new kind of packaging can solve and which opportunities packaging can catch and also whom in foodservice it primarily will benefit. Note that the table indicates that it is primarily operators who can benefit from the new requirements, but it is important to keep in mind that what will benefit downstream actors will also benefit upstream actors thanks to operator preference.


Type of Benefit

Roles/ characteristics of packaging for solving problems or catching opportunities

Tim

e sa

ving

Impr

oved

food

sa

fety

Mor

e co

nven

ienc

e

Easie

r tas

ks in

kit

chen

s

Prod

uct c

ost

cont

rol

Bette

r tas

te

Min

imisa

tion

of

prod

uct w

aste

Mor

e sp

ace

in

stor

age

Less

stra

in o

n st

aff /

shel

ves

Stro

nger

m

arke

ting

Adju

stm

ent t

o fra

gmen

tatio

n

Packages should make it possible to eat wherever the consumers want to eat C C O

Packages have to take the deskilling of the workforce into account O C,O O O O C

Packages have to provide portion control O O C O

Packages have to work better in storage O O O,DM

O,D M

Packages should make the ordering process easier O O

Packages should enable improved shelflife O,DM

O,DM

O,DM

Packages have to work for food safety C,OD,M O

Packages should be possible to empty completely O O

Packages should assist consumers in their choice of products C,O O

Packages should provide with more variety in product offering to target different needs O C

Packages should provide product visibility O

Packages have to fit with other packages O

Packages should fit with less formal eating out occasions C,O C C,O

Table 7.2: Benefits of new characteristics/ roles of packaging C= ConsumerO=OperatorD=DistributorM= Manufacturer


7.2 Second Objective

Regarding whom packaging is prioritised for, I would say that it is not prioritised for anybody. I would say that the basis for packaging decision today is a compromise of 1) what the manufacturers think the customers need without asking them about it and 2) the equipment, materials and machinery available.

Packaging applications in foodservice originate from production and distribution demand rather than customer and consumer demand. In my opinion the main problem is lack of understanding for what packaging can accomplish.

With one exclusion, I do not see any characteristic or role of packaging from the theory or from the field studies, from any part of the supply chain that precludes other packaging characteristics or roles. The exclusion is the fact that many respondents have seen packaging as a necessary evil costing money. To deal with this preconceived notion about packaging is a must before packaging can get a stronger position and gain a more appreciated role in foodservice.

It is important to consider if added costs of packaging in one place will reduce costs somewhere else. For example saved time could be translated to money and so can reduced need of storage space. Another way the package can reduce costs is to have a package that minimise product waste.

7.3 Third Objective

As a consequence of the insignificant role of packaging in foodservice the communication of packaging issues is also negligible. However, I am convinced there is a need for communication about packaging issues in the supply chain.

Optimum Foodservice Supply Chain Initiative (OFSCI) is an interesting step towards more collaboration in the supply chain. OFSCI provides a common language for communication between different foodservice supply chain actors. OFSCI could be a communication channel for presenting new or changed packaging. Perhaps OFSCI could also be a good compliment to providing information on packages?

The guidelines that the British Frozen Food Federation provides with are one example of packaging related cooperation. Considering that this study shows that packaging has big importance in foodservice and that packaging is integrated throughout the whole supply chain, there ought to be a need for more similar collaborations.

Secondly, I aim to point out which step in the chain is prioritized the highest when deciding on a packaging solution.



Respondents had concerns about the difficulty of reaching out to the fragmented market. If a manufacturer were to use more sophisticated packaging there were worries not to manage to convince the market about its advantage due to the market’s lack of organisation.

Part of the solution regarding communicating packaging issues I believe would be to increase cooperation in the supply chain. It is important to understand how the supply chain works in order to develop a package that works throughout the supply chain.

Supply chains will compete with supply chains instead of companies competing with companies. Thereby higher direct costs of packaging is motivated if it can benefit the supply chain as a whole.

I believe packaging is also dependent on strong marketing. It is critical to determine what you want to accomplish with the package, carry it out and communicate the point of difference.


8 Suggestion for Future Studies

A study of the role of packaging in other supply chains: I believe a study, similar to the one I have done, but focusing on other supply chains would be interesting. For example the supply chain ending in the cost sector (hospitals, schools, prisons etc) could be approached.

A study of the role of packaging in the independent sector: It would be very interesting to know what the smaller outlets think about packaging. The independent foodservice sector is very fragmented and it would be interesting to know if that is reflected in what type of packaging this sector would prefer.

A packaging logistics study in foodservice: A study that aims at finding out to what extent logistic costs would be affected if packaging in foodservice would be adapted to conditions in foodservice would be valuable.

A study that quantify characteristics of foodservice packaging: This study shows that there are many possibilities to improve packaging to fit better with foodservice needs. It would be interesting if somebody could try to find out the different characteristics’ relevance, or in other words investigate which characteristics should be prioritised highest to benefit foodservice most.

A study that aims at finding barriers that would extend product shelflife: An engineering study aiming at finding new barriers for extending product shelflife, in particular for chilled food I believe would be very welcomed in foodservice.

A foodservice consumer research study: It would be interesting to do research among consumers to see if their expectations on packaging conform to the view of what operators think consumers demands.


9 References

9.1 LiteratureBackman, P., “How the foodservice sector is coping with growing consumer choice”, British Hospitality: Trends and Statistics 2001.

Brody A.L., “Foodservice drives packaging developments”, Food Technology, October 2002, vol 56, No 10.

Burke, R.R., Klein, N.M., Underwood, R.L., “Packaging Communication: Attentional effects of product imagery”, Journal of Product & Brand Management, 2001, Vol. 10, No 7.

Clement, J., Sørensen, M., (2002) About Packaging Design & Production, Danish Cartonmakers Association Pro Carton Nordica, The Graphic Arts Institute of Denmark.

Dominic, C, Johansson, K., Lorentzon, A., Olsmats, C., Tiliander, L., Weström, P., (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.

Eastham, J.F., Sharples, L, Ball, S.D., (ed.) (2001) Food Supply Chain Management, Reed Educational and Professional Publishing Ltd.

Ekholm, M., Fransson, A., (1992) Praktisk intervjuteknik, Norstedt, Stockholm, Sweden.

European Parliament and Council, Directive 94/62/EC.

Fearne, A., Hughes, D., Duffy R., (2001) Concepts of collaboration: supply chain management in a global food industry, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.

Food and Drink Federation, A Special Food Service Report by the Food and Drink Federation, Oct 2002, <www.fdf.org.uk>, 190203.

Food safety and Quality in Europe – Summary of emerging issues and unresolved problems, Pan-European Conference on Food Safety and Quality, Budapest, Hungary, 2002 http://www.foodsafetyforum.org/ 180203.

Gerding T. K., Rijk M. A. H., Jetten, J., van den Berg, F., de Kruijf N., “Trends in Food Packaging: Arising Opportunities and Shifting Demands”, Packaging Technology and Science, 1996, vol 9, pp 153-165.

Grant, H., “Foodservice Review”, World of Food Ingredients, December 2001, pp 16-19.

Györei, M., Olsson, A., “Packaging throughout the Value Chain in the Customer Perspective Marketing Mix”, Packaging Technology and Science, 2002; 15, pp 1-9.

Halliway, L., UK Food and Service Management Industry (“Introduction”), Food and Service Management Survey 2003, British Hospitality Association.

Johnsson, M., (1998) Packaging Logistics – a value added approach, (Diss.) Department of Engineering Logistics, Lund University.

Jönson, G., (2000), Packaging Technology for the Logistician, Lund Institute of Technology, Sweden.

Lantz, A., (1993) Intervjumetodik, Studentlitteratur, Sweden.

Lekvall, P., Wahlbin, C., (1993) Information för marknadsföringsbeslut, IHM Förlag AB, Sweden.

M+M Planet Retail, Foodservice trends worldwide, 2002.




Olsmats, C., (2002) The business mission of packaging- Packaging as a strategic tool for business development towards the future, (Diss.) Åbo Academi University Press.

Packaging today, An introduction to the history of plastics, <http://www.packagingtoday.com/> 240203.

Packat i pocket, Packforsk, Kista, Sweden, 2000.

Packat i Pocket, (Aluminium i förpackningar), Packforsk, Kista, 2000.

Packat i Pocket, (Burkar av metall – ej dryckesförpackningar), Packforsk, Kista 2000.

Packat i Pocket, (Därför behöver vi flerskiktsmaterial) Packforsk, Kista, 2000.

Packat i Pocket, (Glas i förpackningar) Packforsk, Kista, 2000.

Packat i Pocket, (Förpackningar och förpackningsmaterial), Packforsk, Kista 2000.

Packat i Pocket, (Kartong – svenska skogens styrka), Packforsk, Kista 2000.

Packat i Pocket, (Plast i förpackningar), Packforsk, Kista 2000.

Packat i Pocket, (Wellpapp – material och metoder), Packforsk, Kista 2000.

Packat i Pocket, (Wellpapp – tillverkare och användning), Packforsk, Kista 2000.

Paine, F.A., (1981) Fundamentals of Packaging, The institute of packaging, Rev edition, Brookside Press ltd, Leicester.

PM för examensarbete vid avdelningen för förpackningslogistik, Lund University of Technology, April 2001

Promar International, Profitability in Foodservice, Maximising Bottom Line Performance in Europe to 2005, June 2000.

Promar International, The Foodservice Playmakers to 2010, Strategic insight and analysis into 16 key foodservice operators for the next decade, June 2001.

Robertson, G.L., “Good and Bad Packaging: Who decides?”, International Journal of Physical Distribution and Logistics Management, 1990 20 (8), pp 37-41.

Ross, C., UK Food and Service Management Industry (“Good news but it’s far from easy out there”), Food and Service Management Survey 2003, British Hospitality Association.

Sacharow, S., (1982) The package as a marketing tool, Clinton Book Company, Pennsylvania.

Stirling R.A., Anyadike N., Shortening the Supply Chain, <www.pira.co.uk>, 170203.

Stuart A.S., Integrated approaches to the management of food safety throughout the food chain, FAO/WHO Global Forum of Food safety regulators, Marrakech, Morocco, 2002 <http://www.foodsafetyforum.org/> 180203.

Tetra Pak, Investigating the life-cycle environmental profile of liquid food packaging systems, Stiftelsen Østfoldforskning.

Tetra Pak report: 020901 Global Press Conference.

Tetra Pak report: The Foodservice Value Chain, A top-line report prepared by Business Intelligence, 231000



http://www.packagingtoday.com/


Tetra Pak report, Foodservice 101: What is Foodservice?, 2002.

Trost, J., (2001) Enkätboken, Studentlitteratur, Sweden.

UK Catering Industry, British Hospitality: Trends and Statistics 2001, British Hospitality Association.

UK Food and Service Management Industry (“Future trends in food and service management”), Food and Service Management Survey 2003, British Hospitality Association.

Wallén, G., (1996) Vetenskapsteori och forskningsmetodik, Studentlitteratur, Sweden.

Webster, K., (2001) The scope and structure of the food supply chain, (in Eastham et al, Food Supply Chain Management), Reed Educational and Professional Publishing Ltd.

9.2 Electronic SourcesTetra Pak, Business Intelligence

Tetra Pak’s official home page, <www.tetrapak.com>.

Tetra Pak, Intranet

The Council of Logistics Management, <www.clm1.org>, 260303.

9.3 Personal InterviewsBackman, Peter, Managing Director, Horizons FS Limited, Interview, 040403.

Györei, Micael, Regional Director, Global Food Service, Tetra Pak, Meeting, 290103.

Confidential interviews according to statistics in Table 2.1 Number and distribution of interviews on page 12

9.4 LecturesOlsson, A., Lecture in Packaging Technology, Lund Institute of Technology, 210102

http://www.clm1.org/

http://www.tetrapak.com/


10 Appendices


10.1Appendix A: Interview PlanOn the following pages is my interview plan. The interview plan was equal for operators, distributors and manufacturers except regarding interview frame and question areas, which is why I show alternatives for those headings.


Interview Plan

Background

General Project InformationThe project is a Master Thesis within the Master Program of Industrial Engineering and Management, at Lund Institute of Technology, Lund University, Sweden.

Project PurposeWith this study, I want to enlighten the meaning of an appropriate package solution. The purpose is to gain knowledge and understanding about packaging issues in each step in the foodservice supply chain. This knowledge and understanding will be useful in trying to better foresee how future foodservice packaging can benefit the foodservice market.

Project ObjectivesMy first objective with this study is to identify for each step of the chosen supply chain, the determining criteria when choosing a certain product in a certain package. I also aim to clarify why those criteria are important. Furthermore, I aim to take the study one level higher, in trying to identify problem areas in the foodservice supply chain that can be solved by improved packaging solutions.

Secondly, I aim to point out which step in the chain is prioritised the highest when deciding on a packaging solution.


Project AssignerThe project assigner is Tetra Pak. Tetra Pak is a global company providing integrated processing, packaging, and distribution line and plant solutions for food manufacturing.

The foodservice market is an exciting market under constant development. Tetra Pak wants to be able to foresee how future foodservice packaging can benefit its customers, and in turn its customers’ customers. This explains why Tetra Pak initiated this study.

Interview(Alt 1) Interview Frame- OperatorThe frame of this interview includes all Company name’s packaging related areas:

- Usage of packaged products- Handling of packaged products, e.g. deliveries, storage, internal transports- Sale of packaged products- The process of planning for new/replacement of packages


(Alt 2) Interview Frame- DistributorThe frame of this interview includes all Company name’s packaging related areas:

- Handling of packaged products, e.g. deliveries, loading, unloading, storage, transports

- Sale of packaged products- The process of planning for new/replacement of packaged products

(Alt 3) Interview Frame- ManufacturerThe frame of this interview includes all Company name’s packaging related areas:

- Usage of packaged products- Handling of packaged products, e.g. filling, transports, deliveries, storage- Sale of packaged products- The process of planning for new/replacement of packages

Interview PurposeThe main purpose with this interview is to foresee how Company name can benefit from future packaging. In order to fulfil this purpose I aim to identify and understand all situations where Company name get in contact with packaged products. Further, I aim to identify possible problem areas where packaging can be part of the solution.

Documentation and Use of ResultsI would prefer to use a tape recorder during the interview. The reasons are two; I want the interpretation to be as correct as possible and I do not want to lose any valuable information. Nobody, besides you as a respondent and myself would get any access to the tape from the interview. In case you rather me not using a tape recorder please let me know and I will fully respect that.

In addition I will take some notes during the interview to remember important impressions and ideas.

The findings from the interview will be analysed partly in isolation and partly in relation to findings in other interviews, observations and case studies from Company name as well as from other foodservice companies participating in this study. The analysis with belonging conclusions will be presented in an official report. However, the parts you have contributed to will of course not be published until you have given your approval. Of course, both you and Company name will be strictly confidential and not mentioned in the report.

Communication of Results to You as RespondentA copy of the final report will be sent to you in the middle of the summer of 2003.

(Alt 1) Question Areas- OperatorI hope this interview will be more of a discussion based on open questions rather than a strict and structured interview. The reason is that the objective of this study is to gain insight in a rather unknown territory. Here I present a list of questions that I aim to find the answers on during our discussion:

- Considering the rapid development of the foodservice business what would be your main issues to solve in the future? Any already noticed recurring issues?


- What are your requirements on a good package? What is the role of packaging?

- When and how are the different packaged products handled? Who handles them? Any desired improvements? What are the main problems? What are the consequences of those problems? How does the package affect?

- When and how are the different packaged products used? Who uses them? Any desired improvements? What are the main problems? What are the consequences of those problems? How does the package affect?

- What would be the characteristics of your dream package? Which is your favourite package? Which is your worst package? Why?

- What are important characteristics on a package to guarantee food safety?

- Why do you choose a certain product in a certain package? What do your choice depend on? Who in your organisation participate in packaging decisions?

(Alt 2) Question Areas- DistributorI hope this interview will be more of a discussion based on open questions rather than a strict and structured interview. The reason is that the objective of this study is to gain insight in a rather unknown territory. Here I present a list of questions that I aim to find the answers on during our discussion:






- Why do you choose a certain product in a certain package? What do your choice depend on? Who in your organisation participate in packaging decisions?

(Alt 3) Question Areas -ManufacturerI hope this interview will be more of a discussion based on open questions rather than a strict and structured interview. The reason is that the objective of this study is to


gain insight in a rather unknown territory. Here I present a list of questions that I aim to find the answers on during our discussion:






- Why do you package a certain product in a certain package? What do your choice depend on? Who in your organisation participate in packaging decisions?

- What do you think are important packaging requirements for your customers? How are these requirements fulfilled? What are your main strengths? Can you see any improvement opportunities?


10.2Appendix B: Packaging MaterialsBecause general knowledge about packaging materials is basics when learning about packages, I decided to include it in the appendices even if it is actually outside the scope of this study.

Each kind of packaging material has unique properties. The most commonly used packaging materials are:

- Paper/Carton - Corrugated cardboard- Wood- Plastics- Metals- Glass

Paper/ CartonPaper has been used as a packaging material for centuries. Before self-service in grocery stores came around, there were rolls of paper in different widths behind the desk that was used to wrap around the goods.225

Paper is made from cellulose fibres in wood. The raw material is renewable and paper can be recycled. Paper can easily be shaped, sealed and decorated.226

Carton can be defined as paper that is more than 0.3 millimetres thick227. Thanks to the rigidity and strength of the carton you can make stable packages of thin carton228.

Corrugated boardThere is hardly any packaging material that is used in so many various applications and as well known as corrugated board. The basic principle of corrugated board is the same as it was in 1871, when Albert L Jones got the first corrugated board patent. In other words, during the past 130 years nobody has invented a substitute for corrugated board.229

Corrugated board combines strength and rigidity with flexibility and further more works as a shock absorber. These unique properties are accomplished through gluing a wave-formed paper layer in between two plane paper layers (see Fig x). The plane layers are called “lines” and the wave-formed layers are called “flutes”.230

It is the plane layers that give the strength and cohesion, and the wave-formed layers that provide flexibility and resistance to shocks and pressure.231

Corrugated board is easy to adapt to different products. It is possible to punch, fold, glue and decorate corrugated board into all kinds of shapes, sizes and appearances,

225 Packat i Pocket, (Förpackningar och förpackningsmaterial), Packforsk, Kista 2000.226 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.227 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.228 Packat i Pocket, (Kartong – svenska skogens styrka), Packforsk, Kista 2000.229 Packat i Pocket, (Wellpapp – material och metoder), Packforsk, Kista 2000.230 Packat i Pocket, (Wellpapp – material och metoder), Packforsk, Kista 2000.231 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.


which is why corrugated packages commonly are specifically adapted to individual products.232

Corrugated board is made completely from renewable materials. In addition to pulp from wood, reused corrugated board may be used for making the paper. The glue is no obstacle for recycling since it can be made mainly from cornstarch and is totally water soluble and non-toxic. When the requirements on humidity protection and water durability are high a plastic coat can be added on or in the board. The plastic is negligible in the recycling process since the amount is little.233

Wood The main wood product in packaging is the pallet. The increasing volumes of goods that demand transport and storage raise the demand of pallets.234

Another common package of wood is the plywood box that is used when exporting goods of high weight that demand strength when stapling.235

PlasticsA wide range of different plastics is available. Plastic consists of polymers, which is a chain of monomer molecules. Depending on the chemical composition and bindings in the monomer chain the plastics get different unique properties. Different additives to the polymer also contribute to the flexibility in properties between different kinds of plastics.236

Most plastics are made from the non-renewable materials oil and natural gas. The main reason for criticism on using plastics in packaging is the risk of depletion of the earth’s bounded supply of fossil fuels.237

In many cases, plastics are used as a barrier between the product and the environment, in both directions. The vast majority of plastics protect against humidity, many against smell and aroma, and some against gases.238

The most commonly used kind of plastics when it comes to packaging is thermoplastics. That means that they soften and melt when heated which make them easy to work and shape. Besides, after cooling, the shape remains. Thermoplastics are easy to recycle, thanks to the possibility to re-melt the used packages.239 However, the purity of the material tends to degrade with each reuse cycle240.

The application of plastics ranges from simple plastic bags to advanced food packages in many layers. Today, bottles, jars, cans, trays are examples of plastic packages.

232 Packat i Pocket, (Wellpapp – material och metoder), Packforsk, Kista 2000.233 Packat i Pocket, (Wellpapp – tillverkare och användning), Packforsk, Kista 2000.234 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.235 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.236 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.237 Packaging today, An introduction to the history of plastics, <http://www.packagingtoday.com/> 240203.238 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.239 Packat i Pocket, (Plast i förpackningar), Packforsk, Kista 2000.240 Packaging today, An introduction to the history of plastics, <http://www.packagingtoday.com/> 240203.




Another example is plastic film wrapped around pallet loads to keep the load together and to protect against dust and humidity. Also, plastic is widely used to reduce shocks in transport packages.241

MetalsMetal pots/cans have been used for almost 200 years for packaging foodstuff. From the beginning the pots were made of steel but nowadays aluminium is also very common. Metal pots are completely tight which enable a long storage time, due to the integrity of the package and the retort process. During storage the taste and consistence are not affected. The weight of the metal pot is low and the mechanical strength is good. A weakness of metal pots is that they are bulky.242

To recycle metal saves energy compared to producing new. Melting of aluminium saves about 95% in energy and steel saves 60%.243

There is no restrictions to how many times a metal pot of steel or aluminium can be recycled since the melting process does not destroy the material. However, when zinc is used as corrosion protection and for welding the recycling becomes more complicated.244

Aluminium is the most common metal on earth. To produce aluminium requires excessive amounts of energy. On the other hand, since it is possible to make very thin and light packages out of aluminium the required energy per package is low.245

The prominent benefit of aluminium is the outstanding barrier qualities. A very thin foil of aluminium in combination with a plastic film is a very good barrier against liquids, gases, aroma, light and microorganisms.246

GlassGlass is made from sand, calcium oxide and soda. A big amount of recycled glass can be used in the production of glass. This applies especially to green glass where 95% can be made from recycled materials. The recycling of glass is favourable and the material can be used over and over again.247

A clear benefit with glass is that it is inert, which mean that it does not react chemically with the content. Glass is a complete barrier against gases and the packaged product does not take up any taste or aroma from the glass.248

LaminateIt is very hard to find a single packaging material that can fulfil all requirements on packaging. To use packages with many layers it is possible to create a packaging material that combines the unique properties of the included materials and thereby fill

241 Dominic, C, et al, (2002) Förpackningslogistik, Packforsk, Kista, Sweden, 2nd edition.242 Packat i Pocket, (Burkar av metall – ej dryckesförpackningar), Packforsk, Kista 2000.243 Packat i Pocket, (Burkar av metall – ej dryckesförpackningar), Packforsk, Kista 2000.244 Packat i Pocket, (Burkar av metall – ej dryckesförpackningar), Packforsk, Kista 2000.245 Packat i Pocket, (Aluminium i förpackningar), Packforsk, Kista, 2000.246 Packat i Pocket, (Aluminium i förpackningar), Packforsk, Kista, 2000.247 Packat i Pocket, (Glas i förpackningar) Packforsk, Kista, 2000.248 Packat i Pocket, (Glas i förpackningar) Packforsk, Kista, 2000.


more functions. When using a laminate, the amount of used resources as well as the weight of the material decreases.249

Recycling of laminates is a little complicated, due to difficulties in separating the different materials from each other. However there are techniques for how to separate plastic, paper and aluminium from each other. Besides, there are different researches going on for example so-called mono-laminates, where the layers are of the same material but with different properties. Also, the possibility to make barriers of cellulose is investigated.250

A very common laminate is the combination of paper, plastics and aluminium. Those materials are good separately, but combined they are even better. The paper gives the strength, a light barrier and gives a surface for decorations. Plastics provide different barriers, for example against humidity and oxygen. Plastics also enable adhesion with heat and provide a protection of the surface. The aluminium provides a maximum barrier ensure product safety after processing.

249 Packat i Pocket, (Därför behöver vi flerskiktsmaterial) Packforsk, Kista, 2000.250 Packat i Pocket, (Därför behöver vi flerskiktsmaterial) Packforsk, Kista, 2000.


10.3Appendix C: Frozen Food GuidelinesBritish Frozen Food Federation (BFFF) in collaboration with several distributors and food manufacturers provide with guidelines for how to label outer cases for manufacturers’ branded frozen products in the foodservice supply chain. The driver behind working out these principles was that foodservice operators and distributors had experienced inefficiencies in order selection and deliveries due to poor labelling of secondary packaging.

Although frozen foods not are the main focus of this study, I regard the guidelines to be general enough to deserve consideration also for foods of other temperatures. To increase efficiencies in the frozen foodservice supply chain operations the following guidelines are suggested.251

- As an overall minimum requirement, all key information should be on one long and one short side whereas other information only needs to appear once and preferably on a side panel.

- Ideally the product name is shown on all four sides but at least on one long and one short side. The purpose is to make identification easier.

- The product name should be in English and clear and unambiguous.

- All products must be labelled with ‘Best Before Date’ or ‘Best Before End’ date. It should be placed on one side of the case, where also the product name is written. Besides it should be in size big enough to read from a distance.

- Where supplier uses a product code it should be printed in letters big enough to read from a distance and it should appear on two adjacent sides of the case. The product code should be included in the product name.

- For traceability reasons the batch code/lot number/production code should be found on the outer case, on a leading edge.

- Information about case contents should be absolutely clear. It should include the number of units in the outer case or portion size or approximate count where applicable.

- Cold storage conditions might only provide artificial lights thus good contrasts between the colour of the background and the colour of the printing is necessary.

- Size of labels and printings should fit with the size of the case. All printing should be possible to read from a distance, also considering the possible dim lights in cold areas.

- Labels and label adhesives ought to withstand freeze temperature during the whole shelf life and should not peel off.

251 Into the light, Guidance notes for outer case labelling of manufacturers’ branded frozen products in the foodservice supply chain, A Guide to Good Practice, British Frozen Food Federation


- Distributors and manufacturers should know trends in electronic commerce. A bar coding system is highly encouraged and standards provided by OFSCI should be followed.

- Some labelling issues regarding foodservice products are mandatory according to European legislation. Where the secondary package is the selling unit the legislative requirements will generally apply to the secondary package.

- The name of the manufacturer or the seller/distributor in EC252 must appear on the outer case, according to laws. In accordance with hygiene regulations, for products containing meat, fish, diary, or egg products, the labelling must include an EC factory approval number.

- For sensitive products handling instructions should be provided on the labelling (e.g. ‘fragile’).

- Storage conditions for ensuring the quality of the product throughout the shelf life should also appear on the outer case.

- When the outer case is a saleable unit an ingredient list is necessary. Percentage of certain ingredients must also be given according to Quantitative Ingredients Declarations Regulations (QUID).

- A consistent approach to labelling food allergens is required. BFFF recommends that IGD Voluntary labelling Guidelines for Food Allergens and Gluten be used.

Strengths and appropriateness of packaging materialsThe strength of the cardboard used should be enough to sustain the prime quality of the product from manufacturer to end-user. The fact that the case might be placed on the bottom of a pallet must also be included in the calculations. Also the high moisture content in freeze temperatures must be considered.253

Naturally the outer cases must match inner product. Weight and size need to be proper to meet Manual Handling Operations Regulations. In foodservice products are handled numerous times and packaging quality must withstand this. The size of the outer cases must conform to palletisation.254

Palletisation

252 European community253 Into the light, Guidance notes for outer case labelling of manufacturers’ branded frozen products in the foodservice supply chain, A Guide to Good Practice, British Frozen Food Federation254 Into the light, Guidance notes for outer case labelling of manufacturers’ branded frozen products in the foodservice supply chain, A Guide to Good Practice, British Frozen Food Federation


Labels, pre-printings and bar codes should be clearly visible on outside layers. Pallet configuration should be stable and safe to lift and products must be secured on the pallet. Cases should not overhang the pallets.255

255 Into the light, Guidance notes for outer case labelling of manufacturers’ branded frozen products in the foodservice supply chain, A Guide to Good Practice, British Frozen Food Federation


10.4Appendix D: Visit to a Cash and CarryI visited one cash and carry while in the UK and made some observations that are not in the scope for this study, but that I think was interesting enough to be mentioned in this report.

- On top shelves you see loaded pallets. Lower shelves are a mix between products packed in secondary packaging, products packed in transparent plastic covered trays as secondary packages and individual primary packages. Individual primary packages are also displayed standing on top of each other.

- The shelves are deep. You might think when looking behind front rows with products displayed only in primary packaging that you would see secondary packaging hiding, but that is not the case. Instead all packages have to be moved one by one when doing shelf replenishment. Imagine when the expiry date is short enough for shelf replenishment to be done from the back!

- I did not see one box of the typical brown corrugated ones. Instead all secondary packaging seen was in colours.

Flour and different cake mixes were displayed in primary packaging. The content of the products had leaked out.


10.5Appendix E: Food SafetyDuring my field studies I gathered some points about food safety. This is not part of the objectives, but I figured it could be interesting for some readers, which is why I included it in appendices. From the standpoint of operators“Food safety has very high priority in foodservice.”

“A package should never risk the quality of a product.”

“Longer shelf life is always wanted in foodservice. One reason is for food safety.”

“For food safety you want packaging that stands straight.”

Regarding food safety it is very important to know that the product has not been opened prior to reaching the user. Puncture proof packaging is asked for - dented packaging is rejected according to one respondent. Hygiene is said to be extremely important throughout the whole supply chain:

“You don’t want to see dirt on the packaging even if it’s just on the transport packaging”.

Regarding front of house packaging, being able to reseal the package is important not only for preventing a mess but also for hygienic reasons. Also back of house resealability or at least reclosability is important for food safety. In addition, back of house it is important to know when the package has been opened, since the expiry date is useless once the package is opened. One chef adds that sticky labels are not a good solution.

One respondent points out that suppliers are not hard to persuade to take back products with damaged or dirty packaging.

From the standpoint of distributorRespondents from the distributor claimed they have a very active quality department for its own brands using rigid audits and high levels of accreditation for food safety reasons. They use a special practice for high risks/sensitive products.

They do physical testing on the product and on the packaging. The packaging is tested for physical functionality. Robust primary packaging is said to be important for food safety.

When it comes to suppliers they trust that they have already considered food safety.

From the standpoint of food manufacturersOne respondent mentions that management of risks is becoming more and more important:

“Frequently people representing different organisations come to audit things regarding all kinds of risks.”


This he thinks will lead to more regulations on food safety, which will have consequences throughout the whole foodservice industry. At the same time the same respondent says that food safety is important in foodservice but not seen as a major issue for them, because they sell mostly dry and ambient food. One thing they foresee regarding food safety is a need for making half-empty packages resealable.

Another manufacturer points out that food safety in foodservice is very important. To maintain the reputation of a brand you cannot afford to take any risks concerning food safety. An important aspect in food safety is that suppliers conform to different regulations. They as a manufacturer do shelflife trials under extreme conditions and provide tamper evidence that all their products are safe. All products have “sale by date” without fail. Lot coding is important for traceability in case something goes wrong.

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