Packaging Goes Green

The sustainability surge is transforming the way supermarkets merchandise proteins. By Richard Mitchell, Editor-in-Chief

A movement toward a possible widespread ban on traditional meat and deli packaging is starting to take shape.

Spurred by accelerating consumer interest in environmentally friendly products, municipalities are passing laws that regulate the packaging materials for fresh foods.

Such California cities as San Francisco, Oakland, Berkeley and Laguna Beach, for instance, as well as Portland, Ore., and Seattle, have reportedly banned the use of Styrofoam trays in supermarket delis.

While most meat departments are not yet affected, some analysts predict legislation will eventually spread to other supermarket sectors.

“People will spend more for the things they perceive to be ‘green,’” says Mona Doyle, president of Consumer Network Inc., a Philadelphia-based consumer research firm. “Many shoppers say they feel it is up to them to be good citizens of the world, and being environmentally friendly is part of that.”

Consumer Network surveys reveal that a growing number of consumers are feeling guilty about buying deli products, such as rotisserie chicken, in conventional clamshell packaging, she notes.

“They see it as just a big hunk of plastic to carry the chicken home and they don’t know if it’s recyclable,” Doyle adds. “That will lead more supermarkets to adopt packaging that meets the eco-green criteria.”

Already focused on sustainability is PCC Natural Markets, a chain of nine natural and organic-oriented supermarkets in the Seattle area.

Store delis—which also have dining areas—for the past three years have been using compostable clamshell packages and compostable foodservice grade paper plates, says Scott Owen, PCC special projects coordinator. Some locations also are leveraging washable dishes for in-store dining.

He notes that the switch to compostable packaging for use at such food stations as hot buffets and salad bars, has not necessitated price increases.

“The cost of food ingredients usually far outstrips packaging considerations,” Owen states.

The chain also is studying packaging options for the meat department. Seattle has banned Styrofoam meat trays starting in July 2010.

“We could use cardboard trays but that would suck the juice out of meat and it creates an ugly presentation,” says Diana Crane, PCC director of sustainability. “We currently have no substitute.”

A growing number of suppliers, however, are taking steps to support retailer moves to sustainability.

Robbie Manufacturing Inc., Lenexa, Kan., for instance, is marketing its new Hot-N-Handy Bio-Pouch.

The sustainable pouch, which is intended for fresh-prepared sandwiches, was developed to replace the rigid polystyrene-hinged containers that are commonly used in cold cases at retail locations.

Compared to rigid polystyrene containers, the Bio-Pouch uses 92-percent less crude oil, reduces carbon dioxide emissions by 56 percent and decreases packaging material waste by 75 percent, the company notes.

The Bio-Pouch has a built-in gusset that allows various sizes of sandwiches to fit into one pouch, as well as a clear, resealable adhesive strip for easy open and closure to store leftovers.

The film is manufactured from renewable wood pulp, which enables it to naturally absorb moisture, which provides increased freshness and less-soggy bread, Robbie reports.

Another Robbie product, the Hot-N-Handy Rotisserie Pouch, uses 80-percent less packaging material than rigid containers and offers a 66-percent reduction in solid waste introduced into landfills, the company notes.

The Rotisserie Pouch, which has a built-in handle for easy carrying and a resealable zipper, also uses 60-percent fewer corrugated boxes for shipping and generates a 92.6-percent reduction over rigid containers in fuel, trucks and pallets when shipping the same quantity, Robbie states.

Environmentally friendly packaging also is being developed for meat department applications.

The Cryovac Food Packaging Division of Duncan, S.C.-based Sealed Air Corp., for instance, is marketing NatureTRAY to retailers and processors for use with case-ready poultry, beef, pork and fish.

Made entirely from plant products that act as a substitute for oil-based polystyrene foam trays, NatureTRAY is compostable in industrial, commercial or municipal compost facilities and can be supported by any standard automated in-store wrapping equipment. It was created with biopolymers from Minnetonka, Minn.-based NatureWorks LLC.

NatureTRAY comes pre-padded with NaturePAD, a hybrid absorbent with a biodegradable top layer, renewable pulp fluff core and non-woven bottom layer made of polypropylene and polylactic acid (PLA) polymers.

Each NatureTRAY is typically priced a few pennies more than a polystyrene tray, while the NaturePAD is fractions of a penny more than a conventional pad, says Richard Douglas, director of sales and marketing for Cryovac’s brand food packaging unit—rigid packaging.

NatureTRAY is only available in an unpigmented natural color, but Douglas says the company expects to eventually offer a variety of shades.

He notes, however, that the stagnant economy will slow adoption of sustainable packaging.

“Companies are focusing on cost and sustainable products do carry a premium,” he states.

Nevertheless, Douglas says Cryovac is likely to develop additional sustainable products, including a replacement for conventional clamshell deli packaging.

The new packages, meanwhile, are being developed from an array of materials.

Lake Forest, Ill.-based Pactiv Corp., for instance, is offering biodegradable products in its Placesetter® Preferred™ line that are made of a blend of bagasse (sugar cane) and bamboo.

The 16 items include sandwich containers, bowls, plates and platters.

In addition, Pactiv markets hybrid products under its EarthChoice™ brand that also are more economically friendly than conventional items.

The EarthChoice™ assortment includes five sizes of hinged-lid containers that are made with talc-filled polypropylene and contain an average of 40-percent less plastic polymers than standard polypropylene containers, the company notes.

Designed for such applications as hot-food take-out, the hybrid material is microwaveable up to 250 degrees Fahrenheit.

The supplier recently added compostable cups and lids to the line.

Mark Spencer, Pactiv business manager, emerging materials and sustainability, notes that demand for the company’s sustainable deli products is primarily being generated by retail outlets on the West Coast—where the majority of bans on polystyrene are occurring.

“The bans currently just affect about 1.5 percent of the U.S. population, but more legislation will come,” he predicts.

Pactiv, as a result, is planning to launch additional sustainable products over the next several months, he states.

Spencer adds that the cost of the company’s sustainable items is two to three times the price of conventional packaging, depending on the substrate used in production.

While sustainable features will appeal to the growing base of green-oriented consumers, the packaging still must match or exceed the performance levels of conventional products for widespread adoption, analysts state.

Jill Hanegraaf, business development manager for Oshkosh, Wis.-based packaging developer Curwood Inc., says achieving high-performance is a key challenge.

She notes that Curwood spent two years reengineering the technology of its EZ Peel®/Reseal Films to improve the recloseable feature for semi-rigid packaging before moving from a polyester sealant to an ionomer system.

The EZ Peel®/Reseal Films provide an 83-percent reduction in freight volume and diesel usage and a 43-percent source reduction in pounds of material going to landfills compared to rigid tub and lid formats, Hanegraaf says.

The bottom tray also contains up to 20-percent post-consumer recycled polyester, she notes.

“We saw an opportunity to deliver sustainability versus tub and lid packaging, but the ability to reclose the package was initially not as robust as we wanted it to be,” she states.

Hanegraaf, meanwhile, says one of the biggest obstacles in developing the company’s chlorine-free Eco-Tite® Shrink Bags was delivering the same or better shrink than exists in traditional bags.

The company achieved that aim by incorporating a proprietary resin blend, she notes.

Eco-Tight® uses 36-percent less material and 13-percent fewer fossil fuels than conventional shrink bags, the company notes.

Curwood also is marketing chlorine-free Form-Tite® Shrink Films.

“Sustainability for packaging is here to stay and it will continue to evolve,” Hanegraaf adds.<br><br>

Trading Up at Trader Joe’s

The chain’s compact outlets are becoming prominent natural and organic destinations. By Richard Mitchell, Editor-in-Chief

It might be smaller in space and SKUs that the average supermarket, but Trader Joe’s still is having a significant impact on the natural and organic protein landscape.

The Monrovia, Calif.-based chain of more than 300 stores in 25 states is perhaps best known for its large arrays of private-label, unconventional and competitively priced offerings. The items are merchandised in outlets that reportedly range in size from 10,000 to 15,000 square feet.

Yet, analysts note that many shoppers also equate Trader Joe’s with healthy eating—a reputation that is being solidified at stores’ meat departments.

More than half of the approximately five-dozen SKUs in the self-service meat department in a downtown Chicago location are either natural or organic.

Such selections are aimed at the chain’s targeted upper middle-class customers, says W. Frank Dell, president of Dellmart & Co., a Stamford, Conn.-based retail consultancy.

“The starting point for Trader Joe’s is finding the products that their shoppers want and they are doing an excellent job,” he states. “Offering natural and organic meats matches the needs of the customers, who tend to be more highly educated.”

While the natural and organic proteins are situated among the conventional selections on shelves, the products still are given the spotlight.

The Chicago store, for instance, has colorful price signs that highlight each natural and organic offering and specify the proteins’ attributes. Many items are marketed in modified atmosphere packaging (MAP).

The tabs note, for instance, that the natural selections were developed from animals that were grass fed, free range and not administered animal byproducts or hormones.

Similar attributes are listed on packages.

Organic foods also are prominently promoted.

Signage for the individually wrapped organic chicken breasts, for instance, which are priced at $7.49 a pound, state that the item is 100-percent organic; was developed from animals that were raised on a diet of corn, flax, soy and other grains; and never received antibiotics or hormones.

Additional attributes printed on organic chicken packages note that the poultry is free range and sustainably farmed.

The benefits of organic meats are more clearly defined on a long, vertical sign that is situated at the side of the meat case in the Chicago outlet.

Under the heading, “Organic Meat from Trader Joe’s,” it is noted that, “The primary goal of organic agriculture is to optimize the health and productivity of independent communities of soil, life, plants, animals and people.” That aim is attributed to the Natural Organic Standards Board.

The sign also lists the “requirements for organic certification,” including: no hormones or antibiotics; no artificial drugs; no gene modification; no animal byproducts; no chemicals or pesticides.

It adds that the animals always have access to sunlight, shade, comfortable shelter, fresh air and exercise.

“Trader Joe’s will always bring you the best price on quality organic items,” the message continues. “We looked around and think your best choice for a great selection of organic meat at exceptional prices is right here. We ask you to shop around and compare and see if you appreciate our deals even more.”

The sign also addresses the higher expense of organic proteins.

Under a “What About the Price Difference?” headline, it states that, “It costs more to run an organic farm, so supporting organic practices takes a little bit extra. The good news: the more people buy organic, costs for farms and customers will go down over time.”

In the meantime, Trader Joe’s organic meats and poultry are premium priced.

The selections of private label organic chicken, for instance, which are priced by the pound, include Breasts for $6.99; Breast Tenders for $6.99; Thighs for $4.99; Drumsticks for $1.99; and Whole Chickens for $2.69.

Other organic items include Empire Kosher-branded Whole Broiler Chickens for $3.99 a pound, and Empire Kosher Chicken Breasts for $7.99 a pound.

Also available is Sommers Organic-branded 85-percent lean and 92-percent lean Ground Beef Patties, each for $5.99 a pound; and Sommers Ribeye Steak for $10.99 a pound.

Among the all-natural beef items—which carry the Trader Joe’s Butcher Shop brand and are priced by the pound—is 90-percent lean Ground Beef Patties for $5.29; Tri Tips for $5.99; Black Angus Sirloin Filet for $9.49; Black Angus Top Sirloin for $11.99; and Black Angus Boneless Ribeye for $13.99.

Natural chicken selections that are priced by the pound include individually wrapped Breasts for $5.49; Breast Tenderloins for $4.99; Empire Kosher Split Breasts for $3.69; and Empire Kosher Cut-Up Chicken (eight pieces) for $2.99.

Natural and organic proteins are less prominent in the small lunchmeat section, which is adjacent to the 15-foot-long meat case in the Chicago location.

The majority of the approximately 30 SKUs of presliced items are from Bridgewater, N.J.-based Applegate Farms.

All Applegate Farms proteins are developed from animals that were raised without antibiotics or artificial growth promotants; fed a vegetarian diet with no animal byproducts; and made with natural and organic ingredients.

Other branded packages in the deli case also list wellness-related attributes.

A Trader Joe’s in Glenview, Ill., for instance, offers Daniele Naturale Salame that was developed without antibiotics or artificial preservatives; and Niman Ranch Ham Steaks, which were raised on vegetarian feed and developed without antibiotics or hormones.

Also available are such all-natural items as Hans’ All Natural-branded Skinless Chicken Breakfast Links, and Trader Joe’s Turkey Kielbasa.

“Trader Joe’s is more of a marketing operation than a traditional supermarket,” Dell notes. “They have an understanding of their customers and search out specific products that are aimed at that group.” <br><br>

 

Under The Gun

The USDA’s new “naturally raised” standard is drawing fire. By Richard Mitchell, Editor-in-Chief <br><br>

 

After lengthy research, the U.S. Department of Agriculture earlier this year released its new voluntary standard for naturally raised livestock and meat marketing claims.

While a major intent was to clear up misconceptions about the definition of “naturally raised,” the USDA—if judged by the reactions of some parties—has not gone far enough.

Under the standard, merchandisers can make a “naturally raised” claim for meat products if the items were developed without growth promotants and antibiotics (except for ionophores used as coccidiostats for parasite control) and have never been fed animal byproducts.

The USDA reports that it analyzed more than 44,000 comments from producers, processors, consumers and other parties in developing the standard, which establishes minimum requirements for producers who choose to operate a USDA-verified program involving a naturally raised claim.

The agency adds that a naturally raised marketing claim standard, “has the potential to increase the available supply of U.S. meat products eligible for niche marketing programs in the United States, the European Union and other export markets that require livestock to be raised without the administration of growth promotants.”

Among the organizations opposing the measure are Consumers Union, and Food & Water Watch, both based in Washington, D.C.

In a joint statement, the groups say that the aim to ban antibiotics, animal byproducts and growth promotants is important. Yet, they note that the practices, “should be labeled specifically and discreetly and not couched under a vague and misleading term that does not address how the animals were raised, their main diet, treatment of animals, space requirements and other concerns.”

Another party, Washington, D.C.-based Animal Welfare Approved, calls the naturally raised claim, “inaccurate and misleading.”

The organization notes that for the claim to be true, it should actually read, “naturally fed,” and that exceptions should not be made for the use of ionophores.

Some analysts, meanwhile, say the standard is a step in the right direction, but argue that it does not create a clearly defined guideline—such as the USDA’s Organic mandate.

“The term ‘natural’ is very confusing for meat, poultry and seafood customers to understand,” says Steve French, managing partner of the Natural Marketing Institute, a Harleysville, Pa.-based strategic consulting and market research company specializing in health, wellness and sustainability. “The USDA is taking a baby step with the new standard. But those of us in the industry need to recognize that it is not on every consumer’s list to figure out what ‘natural’ and ‘organic’ is. That is not how everyone shops.”

French adds that there is no shopper outcry for a strong naturally raised standard, particularly because it is just one of an array of claims confronting shoppers at the case. Other claims include the meat grade and humane treatment of animals.

“A portion of the population doesn’t care if the animal was naturally raised, and those who do will figure out what that term means, such as by conducting on-line research,” he states. “Other more specific statements, such as ‘developed without antibiotics or growth hormones,’ are more effective in terms of consumer understanding.”

Laurie Demeritt, president and chief operating officer of The Hartman Group Inc., a Bellevue, Wash.-based wellness industry market research firm, agrees that it is more beneficial for merchandisers to spotlight the specific meat attributes on packages and signage rather than the vague “naturally raised” term.

“‘Natural’ and ‘naturally raised’ mean nothing to mainstream consumers,” she states. “Shoppers are looking for other callouts at the shelf, such as ‘no antibiotics,’ which generates more bang for the buck. They won’t take the time to understand ‘naturally raised.’”

Demeritt adds that while many meat shoppers already equate the term “organic” with healthier meats, a large number consider “natural” to be a marketing term with no real benefits.

Indeed, in a 2008 Hartman Group survey of 2,161 consumers to gage the properties that they equate with the term “organic,” 75 percent listed “absence of growth hormones,” and 69 percent noted “absence of antibiotics.”

In addition, 83 percent indicated that the term implied “absence of pesticides.” It was followed by “no artificial flavors/colors/preservatives” (78 percent); “absence of herbicides” (78 percent); absence of genetically modified foods (67 percent); “safer for one’s health” (64 percent); and “environment-friendly” (63 percent).

“The word ‘natural’ won’t harm the product, but it also won’t resonate with consumers,” Demeritt says. “It makes the most sense to put the attributes that shoppers say are most valuable on the package. For meat that is an absence of antibiotics and growth hormones.”