Follow the paper (packaging)

Blog Roderik Sorbi – Senior Client Consultant

Straws, trays, bags, and cutlery. A topic that is high on the social calendar: plastic. For years we have seen an increase in social criticism. According to the European Commission, plastic accounts for more than 80% of marine litter. In mid-2019, the EU and Member States reached a final agreement on the directive on the reduction of the impact of plastic products on the environment. All EU countries have until July 3, 2021 to transpose these prohibitions into national law. For example, in 2021 the Netherlands will introduce a deposit for small plastic bottles. Whilst Germany already introduced a deposit on almost all bottles and cans in 2003. And although the UK is no longer a member of the EU, it only introduced a deposit on plastic at the end of 2018.

Great dilemma

You would think plastic is the greatest troublemaker, and it is, when it comes to marine litter. According to the Dutch institution of Milieu Centraal, only 65% of plastic is recycled, compared to 77% of paper and cardboard. Tin is at the top of that list with 95%. However, aluminium is very energy-intensive to produce. One ton of cans has a CO2 emission of 11.1 tons, while plastic bottles cause only 2.2 tons of greenhouse gases (US Environmental Protection Agency). Packaging manufacturers therefore face a great dilemma: regardless of the choice, it is a serious burden on the environment.

Reason enough to explore other options. One being paper. Packaging manufacturers have been innovative, know their source-of-volume, and which benefits they need to transform into a paper packaging design. An important signal – and perhaps one of the most exciting developments – is that premium brands are increasingly exploring this direction. Brands operating in highly emotionally charged product categories, such as personal care and spirits & wines, see opportunities for their premium brands to develop and launch packaging innovations in their market. Paper seems to be working on its comeback.

The new normal

And they are not the least of brands. Absolut Vodka (Groupe Pernod Ricard) and Johnnie Walker (Diageo) have recently announced new designs. And the initial reactions are encouraging. Pernod Ricard is united in the strategic innovation platform, The Paper Bottle Company. In which Coca-Cola, L’Oréal, Carlsberg and the Danish EcoXpac, also participate. Carlsberg was one of the first in that close collaboration with their Green Bottle Project.

(Diageo, 2020)

(Paboco/Carlsberg, 2020)

Philippe Thuvien, Head of Packaging & Development at L’Oréal, shared the following: “Our team wanted to use more renewable materials, and cardboard is a great option. But turning a great option into a usable product is a long and complicated process. Happily, we’re now partnering with one of the world’s most innovative packaging companies to transform this vision into reality.” And Niclas Appelquist, Innovation Director Future of Packaging at Absolut Vodka in Beverage Daily, said: “You will recognise our brand, but of course it will have a different texture, touch and feel to it. We are looking forward to hear direct from consumers when testing exactly how it is perceived, but from previous tests we have very positive feedback and excitement from consumers all together for this initiative.” Despite the complicated process, there are promising signs, but it is nevertheless emphasised that the distinctive assets that are embedded in the packaging, and the equity, may be at stake.

A category with a long history in cardboard, is the adjacent wine industry. With the bag-in-box proposition, it offered its wine for decades, and generally operated more at the lower end of the market. Even more interesting that the Italian winery Cantina Goccia has opted for the cardboard “Frugal” bottle – made from 94% recycled cardboard and with a food-friendly inner coating. Showing guts and self-confidence.

the same appeal

There are plenty of new opportunities and chances. The packaging technology is moving at a rapid pace, and the innovative power is great. Which is also due to large manufacturers entering into strategic partnerships, as is the case with The Paper Bottle Company. It is therefore a very conscious choice by brands to opt for an unconventional packaging format. Which can bring many positive elements. Cantina Goccia, for example, has received a huge amount of PR value in the European, Japanese, and American press. And it can help to differentiate yourself as a proposition or brand. But at the same time, existing brands with existing propositions will also take the same step. Johnny Walker Black Label, for example, is very well established and aimed at a critical target group. Which may entail additional risks. Design is of course very important for premium brands. Especially with those brands where packaging has become a carefully constructed asset for decades. As is the case with Black Label, or the famous Coca-Cola bottle. The challenge is therefore not only to produce sustainable packaging, but to also have the same appeal.

No risk, no gain

The risk of damage to a very carefully constructed brand is high. The gain is great, but so is the loss. So, it is important to understand both the pros and cons of packaging. Not only on functional aspects, but also on the emotional responses. You want to know whether people still feel that the quality of the product is at least as good as in the conventional packaging. On the other hand, you must be able to assess whether you aren’t rejecting your current users. And are you able to attract a new type of consumer, with a different packaging format?

It is a huge challenge for marketers to understand which associations are important, and which ones you want to hold on to and transfer to a paper design. New technologies and existing assets can conflict, so elements must be carefully sought, to bring them closer. It is essential to test this with consumers. Marketers need to get a holistic, complete picture. By means of implicit measurement techniques, the functional and emotional responses can be retrieved, and understood what impact this has on brand perception. And to get a grip on the user experience, and how this relates on the shelf, later on. This way, marketers can convert the risk of loss, into gain, as there will always be risks. But the first mover often knows, how to take all the advantages!