Comments on: Consumers to CPG Companies: “Green Packaging Matters to Us”

By: schoolinternetfilters

schoolinternetfilters — Wed, 14 Oct 2009 03:14:38 +0000

Great reading and thanks again for another interesting piece of writing.

By: Ted Mininni

Ted Mininni — Thu, 17 Sep 2009 18:34:19 +0000

Hi Jim,
Thanks for the kind words. “Devoted fan”? . . .I’m blushing.
To answer your question, Sun Chips, a division of Frito-Lay, is developing a totally compostable bag and I’ve blogged about it quite recently. For more info, check out this article at Tree Hugger: http://www.treehugger.com/files/2009/04/the-consumer-scoop-on-sunchips-100-percent-compostable-packaging.php
Hope this helps, Jim. All the best.

By: Jim Rogers

Jim Rogers — Thu, 17 Sep 2009 17:18:03 +0000

Ted,
I’m thrilled to find someone like you with so much interest in green cpg packaging, willing and able to share research data along with concise editorial with the public! Count me “in” as one of your subscribers!
BTW – I’m in favor of paying 10% more for greener packaging, and troubled by every package that enters the household that is not recyclable, especially munchie bags of late!
My interest, aside from civic conscious, is to discover business opportunities during the transition phase to greener packaging (and healthier products). For example, as a starting place, if a recyclable munchie bag exists, for say pretzels, I would like to discover who makes such a bag, then introduce it to the company that makes my favorite pretzel and ask the CEO why his company is not using it.
If such a bag is not readily available, I’d like to know who is trying to develop one, then determine how I might help them succeed.
Can you help me discover who is making, or developing, recyclable muchie bags?
Devoted fan,
Jim Rogers

By: Ted Mininni

Ted Mininni — Mon, 17 Aug 2009 16:53:22 +0000

Hi Mark,
Thanks for weighing in here. I believe you’re right: the premium for green packaging factored in along with the product will be borne by the market at an additional 10% or less all inclusive from what the researchers are saying. Rapid changes in packaging due to technology are likely to have a huge impact on the kinds of substrates we’ll be using in the near future. As is the case with everything, the more these materials become widely available, the lower the costs.
Thanks, Mark. I appreciate your comments.

By: Mark Appleberry

Mark Appleberry — Mon, 17 Aug 2009 14:37:34 +0000

A number of studies have indicated that most consumers are willing to pay between a 5 and 9% premium for comparable “green” consumer products. I assume this includes total price, i.e. product and packaging.

By: Ted Mininni

Ted Mininni — Wed, 12 Aug 2009 12:18:50 +0000

Hi Mario,
Thanks for weighing in with some excellent points here. Let me address the consumer pricing issue first. Customers don’t know how much packaging actually costs them but they do compare prices among groups of products. While willing to pay more for merchandise in greener packaging, they have a limit in mind.
As far as retailers driving this trend, Wal-Mart can actually be credited for pushing its 66,000+ suppliers to not only develop greener packaging but to be accountable for it. Sam’s Club, which you cite, is a Wal-Mart company.
Wal-Mart’s initiative has pushed the entire consumer product industry in this direction. This has directly benefited retailers across a wide spectrum because they purchase and resell the same products. If retailers that have private label brands begin to use greener packaging options, and push yet more suppliers to do the same, the whole greener packaging movement will gain yet more impetus.
Thanks, Mario, for adding a great deal to this conversation.

By: Mario Vellandi

Mario Vellandi — Wed, 12 Aug 2009 10:28:11 +0000

While the price difference may be a factor, I figure it to be quite small. Besides, can a shopper know from an “all else equal” scenario the sustainable packaging’s marginal cost? They don’t know what’s on the bill of materials. Too many factors influencing price for there to be a rational causation and thought attribution.
I think retailers should be making proactive demands on manufacturers, just like Costco and Sam’s Club do. There’s no reason why Best Buy for example, can’t ask companies to use 80% less PVC and more bonded paper for pegboard clamshell packaging.

By: Ted Mininni

Ted Mininni — Tue, 11 Aug 2009 21:13:27 +0000

Thanks, Alex, for furnishing research on this subject. I’m sure for most food, beverage and other staples an additional few cents is correct. I’m willing to bet tht in the case of luxury products, or products with perceived greater value, the market will bear more than this.
I appreciate the link to the actual research, Alex. Thanks again.

By: Alex Delotch Davis

Alex Delotch Davis — Tue, 11 Aug 2009 20:02:01 +0000

Miller Zell actually did similar research and found the premium threshold for green products to be in the neighborhood of $0.10. You can download a copy of the results here. http://insidetheaisle.com/mz-research-surveys/

By: Alex Davis

Alex Davis — Tue, 11 Aug 2009 20:01:51 +0000