A Bemis ebook DRIVE MORE PROFIT PER POUND. 7 Considerations for Lowering Costs and Boosting Case-Ready Meat Profit and Appeal with Vacuum Packaging
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1 DRIVE A Bemis ebook MORE PROFIT PER POUND 7 Considerations for Lowering Costs and Boosting Case-Ready Meat Profit and Appeal with Vacuum Packaging
2 CONTENTS 03 Helping You Make Your Business Case 04 Are You Getting the Most Profit from Your Case-Ready Meats? 05 How Does Packaging Affect Fresh Meat Profit Anyway? 06 PVC Overwrap Foam Trays with Modified Atmosphere Mother Bags 07 High-Oxygen Modified Atmosphere Trays 08 Vacuum Packaging Forming/Non-Forming 09 Vacuum Skin Film with Trays 10 #1: Lower Packaging Material Costs 11 #2: Reduce Labor Costs 12 #3: Cut Distribution Costs 13 #4: Maintain Food Safety 14 #5: Amplify Sustainability 16 #6: Bring More Value to Retailers Part 1: Save More 17 #7: Bring More Value to Retailers Part 2: Sell More 18 Vacuum Packaging: The Most Profitable Case-Ready Meat Package 20 Active Vacuum Packaging 21 Take the First Steps Toward More Profitable Case-Ready Meat 2014 Bemis Company, Inc. 10/14 02
3 High-Oxygen Modified Atmosphere Trays PVC Overwrap Foam Trays with Modified Atmosphere Mother Bags Vacuum Packaging Forming/Non-Forming HELPING YOU MAKE YOUR BUSINESS CASE Vacuum Skin Film with Trays THE FORMATS WE LL EXAMINE High-Oxygen Modified Atmosphere Trays PVC Overwrap Foam Trays with Modified Atmosphere Mother Bags Vacuum Packaging Forming/Non-Forming Vacuum Skin Film with Trays This ebook includes data and facts to help you envision how case-ready vacuum packaging for fresh red meats might impact your bottom line, as well as your retail customer s bottom line. It s a solid business case you can share with your internal team and retail customers to move the conversation forward. 03
4 ARE YOU GETTING THE MOST PROFIT FROM YOUR CASE- READY MEATS? CASE-READY MEATS ARE BECOMING THE STANDARD FOR MANY RETAILERS, REPRESENTING NEARLY 75% OF ALL MEAT IN THE RETAIL CASE TODAY There s no doubt about it: centrally processed, case-ready meats are becoming the standard for many retailers, representing nearly 75% of all meat in the retail case today. And new types of retail opportunities are emerging, with companies like Amazon and Peapod rewriting the rules of how food is delivered to consumers. All of that is great news for processors, giving you more opportunities to add value to the products you re supplying, and more opportunities to increase sales. But are you getting the most possible profit from every pound of case-ready meat you sell, or are you leaking profit at points along the supply chain? The Packaging Factor Packaging has a major impact on the profit and loss implications of your case-ready meats throughout their life cycle. We ll compare the profit opportunity and consumer appeal inherent in four case-ready packaging formats for fresh red meats, from the packaging line to the consumer s table. 04
5 HOW DOES PACKAGING AFFECT FRESH MEAT PROFIT ANYWAY? LOOKING LONG TERM Changing meat packaging formats can be costly and disruptive to your business. You ll see that vacuum packaging offers a compelling long-term solution to minimize changes and maximize the return on your packaging investment. The increasing popularity of case-ready meats is thanks, in part, to continually improving packaging technologies that allow meats to stay fresher and safer over a longer selling window. But not all packaging is created equally. Packaging costs, distribution costs and shelf life all contribute to the profitability you can attain per pound of meat. The retailer and consumer appeal of your packaged meats contribute to the sales volume you can achieve. The relative sustainability of your package may be a strategic advantage or an unintentional barrier with certain retailers and consumers. On the next pages, we ll describe the packaging formats you might consider for your case-ready fresh red meats, then compare their performance on these critical attributes. 05
6 PVC OVERWRAP FOAM TRAYS WITH MODIFIED ATMOSPHERE MOTHER BAGS PVC FOAM TRAY WITH MOTHER BAG SHELF LIFE Total Shelf Life: days (includes time for transport) Display Shelf Life: 3-5 days once removed from mother bag A popular case-ready format is the modified atmosphere mother bag. Normally, in this format, several PVC-wrapped trays with soaker pads are placed into a large bag that contains an oxygen-free atmosphere plus a small amount of carbon monoxide. The meat is shipped and stored by the retailer in the mother bag until it is ready for retail display. The addition of carbon monoxide to the gas mixture stabilizes the consumer-preferred red color of the meat in an oxygen-free environment. Note the single layer of trays shown here. These trays cannot be stacked because the headspace gases need to interact with the meat surface to maintain the fresh appearance. In addition to adding gas to the mother bag, this packaging also requires an oxygen absorber to eliminate oxygen from inside the mother bag. 06
7 HIGH-OXYGEN MODIFIED ATMOSPHERE TRAY SHELF LIFE Total Shelf Life: days (includes time for transport) Display Shelf Life: 3-5 days HIGH-OXYGEN MODIFIED ATMOSPHERE TRAYS Another form of case-ready packaging is the highoxygen modified atmosphere tray. This package uses a modified atmosphere in the headspace of a rigid barrier tray to preserve the meat s freshness and extend its red color life. The gas is comprised of an elevated level of oxygen. In this picture, the trays are being loaded into a corrugated shipper box. Trays can be stacked, but headspace in the individual tray adds to the volume of the shipper box. Extra space is needed for shipping, warehousing and display. Ample headspace is needed in this type of package because the meat needs to have contact with the gas mixture to retain its color. If the packaging film touches the meat, the meat will typically discolor because it is not in contact with the gas. 07
8 VACUUM PACKAGING FORMING/ NON-FORMING SHELF LIFE Total Shelf Life: days (includes time for transport) Display Shelf Life: day VACUUM PACKAGING FORMING/NON-FORMING Vacuum packaging has been used for case-ready meats for decades, delivering long shelf life by removing all oxygen from the package. With the removal of oxygen, the meat retains its natural dark purple appearance. In the forming/non-forming (F/NF) vacuum package shown here, the meat is packaged under vacuum with two flexible films on horizontal, form, fill and seal (HFFS) equipment. The forming film is formed into a pocket to receive the meat. The non-forming film is heated and sealed to the formed film pocket in a vacuum compartment. 08
9 VACUUM SKIN FILM WITH TRAY SHELF LIFE Total Shelf Life: days (includes time for transport) Display Shelf Life: days VACUUM SKIN FILM WITH TRAYS The Vacuum Skin Pack (VSP) tray is an alternative type of vacuum package that incorporates a formed rigid tray at the bottom. Again, the meat has a dark purple coloration due to removal of oxygen from the package. The top film in this case is a clear, flexible barrier film that is draped, or formed, around the meat. The photograph shows a black pre-formed tray with a clear-skin forming film, which closely mimics the look of other case-ready formats but without the headspace. 09
10 #1 LOWER PACKAGING MATERIAL COSTS HOW MUCH CAN YOU LOWER MATERIAL COSTS WITH VACUUM PACKAGING? NO MOTHER BAG NEEDED NO SOAKER PAD NEEDED NO GAS NEEDED NO OXYGEN ABSORBER NEEDED LESS CORRUGATE NEEDED We promised to compare the various types of case-ready packaging so you can see the difference in profitability, sustainability and salability between the formats. The first consideration is packaging material costs. Vacuum packaging significantly lowers your total material cost compared to gas-flushed foam trays or mother bag applications. The cost of the VSP/tray vacuum packaging itself is more than foam tray/pvc overwrap materials. However, when all packaging costs are considered, the material savings with vacuum packaging is estimated at 25%. Vacuum forming/non-forming packaging prevents purge common in Modified Atmosphere Packaging and freshly packed meats, eliminating the need for a soaker pad. 10
11 #2 REDUCE LABOR COSTS HOW MUCH CAN YOU SAVE ON LABOR WITH VACUUM PACKAGING? The second area of savings is labor costs. More people are needed on Modified Atmosphere Packaging (MAP) production lines than on vacuum packaging lines because of the density of the product and the materials and processes involved. Denser vacuum-packaged meat requires fewer cartons per pound to ship and store, and therefore fewer people to pack boxes, palletize and load/ unload storage coolers. With only two vacuum packaging films vs. multiple MAP components, fewer people are required to order, receive and handle materials. And compared to MAP mother bag production lines, fewer people are needed for vacuum packaging since there is no need to load individual trays into the mother bag. 11
12 #3 CUT DISTRIBUTION COSTS HOW MUCH CAN YOU CUT FREIGHT AND WAREHOUSING COSTS WITH VACUUM PACKAGING? Next, let s look at the cost of shipping and storing case-ready meats. Distribution costs for MAP formats are higher due to space occupied by the gases, which allows less weight and fewer packages to be loaded onto each individual pallet. With compact vacuum packaging, you need fewer pallets and fewer trucks to ship the same number of pounds of meat. You also need less space to store your meat at the distribution center and at retail, all of which takes cost out of the system. AVERAGE PALLET WEIGHTS MAP Tray MAP Mother Bag Vacuum Packaging 1240 lbs 950 lbs 2000 lbs 12
13 #4 MAINTAIN FOOD SAFETY HOW SAFE IS VACUUM- PACKAGED MEAT? Vacuum packaging has been safely used in the U.S. for decades. SAFELY USED FOR DECADES MAINTAINS FRESHNESS AND FLAVOR ELIMINATES LEAKING AVOIDS CROSS- CONTAMINATION IMPROVES SANITATION The meat industry has used vacuum packaging for decades for both subprimal and retail fresh beef packaging. With a shelf life of 35 days or more under refrigerated conditions, vacuumpackaged fresh whole muscle beef can be safely sold and consumed longer than meat in any other packaging format. Air-tight, high-barrier vacuum packaging preserves meat and keeps peak freshness and flavor. The durable, hermetic seals of vacuum packaging eliminate leaking, avoiding the risk of cross-contamination and improving sanitation throughout distribution, retail display and in the consumer s refrigerator. 13
14 #5 AMPLIFY SUSTAINABILITY HOW MUCH CAN YOU AMPLIFY SUSTAINABILITY WITH VACUUM PACKAGING? You can improve sustainability on virtually every meaningful measure. LOWER RETAILER FOOD LOSS BY 50% USE 50% LESS CORRUGATE USE 25% LESS PACKAGING BY WEIGHT REQUIRE 60% LESS FUEL FOR TRANSPORT What impact can one package make? Compared to high-oxygen MAP trays, vacuum packaging can lower retailer food loss from 10% to less than 5%; use 50% less corrugate; use 25% less packaging by weight; and require 60% less fuel for transport. With almost a month longer display shelf life* than PVC overwrapped foam trays, vacuum packaging minimizes food loss for less waste going to the landfill. All of this can help you win the attention and loyalty of sustainability minded retailers and consumers, setting your meats apart and giving you a strategic advantage *See display shelf life comparison on page
15 FOOD FOR THOUGHT ON SUSTAINABILITY Getting food to our tables demands 10 percent of the total U.S. energy budget, uses 50 percent of U.S. land and accounts for 80 percent of freshwater consumed in the United States. Yet 40 percent of food in the United States today is thrown away uneaten. Almost all of that uneaten food ends up in landfills, where it accounts for almost 25 percent of U.S. methane emissions. 1 Vacuum packaging helps minimize food waste. 1 Source: Ameripen.org: Discover the Hidden Value of Packaging Bemis Bemis Company, Company, Inc. 10/14 Inc. 02/14 15
16 #6 BRING MORE VALUE TO RETAILERS HOW MUCH CAN RETAILERS REDUCE LOSS WITH VACUUM PACKAGING? PART 1: SAVE MORE Vacuum packaging creates a profitable, easy, safe, case-ready program for your retail customers. No other packaging format delivers longer shelf life to help your retail customers reduce shrink, markdowns, refacing and out-of-stock costs. It s estimated that retailers can reduce loss 50% or more with vacuum packaging compared to MAP formats. Leak-free, space-saving vacuum packaging eliminates mess and helps retailers save space from the back door to the display case. Vacuum packaging has almost a month longer retail display shelf life compared to other case-ready formats! RETAIL DISPLAY SHELF LIFE* Display Shelf Life Typical Loss High-Oxygen Modified Atmosphere Trays 3-5 days 10% PVC Overwrap Foam Tray with Modified Atmosphere Mother Bags 3-5 days 10% Vacuum Packaging Forming/Non-Forming days less than 5% Vacuum Skin Film with Trays days less than 5% *While total shelf life is critical, display shelf life is the greatest contributor to pulls, markdowns and loss. 16
17 #7 BRING MORE VALUE TO RETAILERS PART 2: SELL MORE DRIVE MORE OPPORTUNITY With vacuum packaging s long display life, retailers can expand their selection and capture upscale buyers with premium, niche meat products. Vacuum packaging is ideal for the main meat case, convenience sections or non-traditional retail channels like online grocers. To top it off? This format delivers more consumer value to aid in retail sell-through. Retailers can promote vacuum packaging with signage calling out the Keeps Fresh, Freezer-Ready, Mess-Free consumer benefits to help boost sales. Independent research shows that consumers prefer leak-free, freezer-ready vacuum packaging compared to foam tray/overwrap formats that can leak juices and have to be repackaged to freeze. FREEZER- READY LONG FRIDGE LIFE LEAK-FREE PACKAGE High-Oxygen Modified Atmosphere Trays PVC Overwrap Foam Tray with Modified Atmosphere Mother Bags Vacuum Packaging Forming/Non-Forming Vacuum Skin Film with Trays 17
18 VACUUM PACKAGING: THE MOST PROFITABLE CASE-READY MEAT PACKAGE HOW MUCH MORE TOTAL PROFIT PER POUND OF MEAT IS POSSIBLE WITH VACUUM PACKAGING? When all is said and done, vacuum packaging excels in every area to put more dollars in your pocket and in your retail customer s pocket than any other popular case-ready format. Lowers material costs 25% Reduces labor costs 15% Cuts distribution costs 40% Reduces retailer loss by 50% or more All these factors contribute to the total cost per pound of meat, as well as to the profitability of those meats for both you and your retail customers. In fact, vacuum packaging can reduce the TOTAL retail cost of meats by 10%, depending on the cut. Imagine passing along savings of 10% to consumers, or adding that to your and your retail customer s total bottom line! And vacuum packaging adds even more profit opportunity when you consider the safety, sustainability and consumer value that this format delivers. Packaging affects an estimated 20% of the total cost of meat. Vacuum packaging cuts those costs in half. 18
19 BUT IF VACUUM PACKAGING IS SO COST- EFFECTIVE, SAFE AND SUSTAINABLE, WHY ISN T EVERY PROCESSOR ALREADY USING IT? It all comes down to the consumer s preference for red meat color, which, until recently, could not be achieved in a vacuum package. That s where Curwood FreshCase active packaging from Bemis comes in Bemis Bemis Company, Company, Inc. 10/14 Inc. 02/14 19
20 Vacuum Skin Films with Tray Flexible Forming/Non-Forming ACTIVE VACUUM PACKAGING Semi-Rigid Forming with Flexible Non-Forming 3 OUT OF 4 CONSUMERS PREFER RED VS. PURPLE MEAT An independent survey shows that three out of four consumers prefer the fresh red color of bloomed meat compared to the natural purplish color that occurs in oxygen-free vacuum packaging. As an added perk, vacuum packaging eliminates the blackened bones and purge that can occur with MAP packaging. All the Benefits of Vacuum, Plus Fresh Red Color Bemis introduced Curwood FreshCase active packaging to answer the meat industry s decadeslong challenge: vacuum packaging that blooms fresh meat and maintains its bright red color throughout an extended shelf life. The Curwood FreshCase packaging solution is the first case-ready vacuum packaging technology to achieve the consumer-preferred color while delivering extended shelf life and dramatic cost advantages that help processors and retailers maintain critical profit margins. Curwood FreshCase packaging is available in multiple formats, allowing you to choose just the right package to showcase your brand and individual meat cuts. 20
21 TAKE THE FIRST STEPS TOWARD MORE PROFITABLE CASE-READY MEAT curwoodinnovates.com/freshcase Are you intrigued by the profitability, sustainability and consumer appeal of Curwood FreshCase active vacuum packaging? Take the next steps to bring the benefits home: 1. Talk to your customers. Curwood FreshCase packaging offers compelling benefits that can give you a competitive advantage with retailers. Use this ebook to walk through the benefits with your retail customers to gauge their interest in moving forward. 2. Crunch the numbers. Bemis can help you run a full cost comparison of Curwood FreshCase packaging compared to your current case-ready format, equipment and retail base to make sure it makes long-term sense for your business. 3. Run a trial. Curwood FreshCase packaging runs on existing vacuum packaging equipment something most processors already have. Consider running a trial and testing it with a retail partner or in limited distribution to evaluate the impact on your sales and profitability and how it can help build your case-ready brand. Bemis is here to help contact us today! 2014 Bemis Company, Inc. 10/14 21
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