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When Casey Keller assumed the role of CEO at B&G Foods, the parent company of Green Giant, four years ago, his focus went beyond beans, taco shells, and pasta sauces.
As a seasoned professional in the consumer packaged goods industry with three decades of experience, Keller wasted no time in delving into the 130-year-old company’s packaging. He saw this as a crucial area for improvement for a company known for products like Crisco shortening and Dash seasonings.
Keller emphasized the importance of packaging as the primary means of communication with consumers on the shelf. He understood that consumers make split-second decisions based on packaging and that it plays a significant role in standing out among the myriad of choices available to them.
For food and beverage manufacturers like B&G, packaging serves as a valuable tool to influence purchasing decisions, enhance customer loyalty, boost sales, and maintain product freshness.
According to data from BusinessDasher, at least 80% of consumers purchased a new product last year because the packaging caught their attention. Additionally, nearly three-quarters of consumers stated that packaging can sway their purchasing decisions, with around half switching brands due to packaging appeal. Companies have also seen a 30% increase in revenue after improving product packaging.
Despite the positive impact of packaging on consumer behavior, it has historically been overlooked in the food and beverage sector. However, companies like B&G are now reevaluating their packaging strategies, investing significant resources in testing proposed changes in real-world settings to gauge consumer response.
Keller acknowledged that B&G had previously been more casual in its approach to packaging and stressed the need for a more disciplined and prioritized strategy in this area.
Playing Catch-Up
During the COVID-19 pandemic, manufacturers were primarily focused on ensuring product availability and navigating supply chain disruptions. However, as the situation stabilized, consumers faced inflationary pressures, leading them to be more selective in their purchases. In an industry where up to 80% of new grocery products fail in their first year, CPG companies are intensifying efforts to attract and retain consumers.
Research indicates that shoppers value packaging that effectively communicates a product’s benefits, ingredients, and value, facilitating quicker and more confident purchasing decisions.
Furthermore, studies show that consumers are more inclined to purchase products with packaging that is easy to open, reseal, and store, conveys freshness and safety, utilizes premium materials, and enhances the perceived quality of the product.
While industry executives are increasingly recognizing the significance of packaging in driving sales, there is a substantial gap in investment compared to other product development areas. Sean Bisceglia, CEO of brand packaging and design firm PV&COHO, noted that significantly more resources are allocated to perfecting product attributes like taste, smell, and appearance than to packaging.
Chris Rowe, a packaging expert with experience at Mars Wrigley and PepsiCo, emphasizes the critical role of packaging in boosting product sales. He cited successful examples from his career, such as the development of new packaging for Mars Wrigley’s Extra gum, which led to significant sales growth within a year of its launch.
Rowe highlighted the need for educating business leaders and marketers on the importance of packaging, despite assumptions that such knowledge should be ingrained from business school education.
Communicating Effectively
Businesses today face mounting pressure from consumers, shareholders, and environmental groups to enhance product sustainability, with packaging playing a central role in this effort.
As companies invest in making their packaging more environmentally friendly, many are seizing the opportunity to revamp brand colors, design, and messaging simultaneously.
At Conagra Brands, CEO Sean Connolly and top executives are actively involved in the packaging process, collaborating closely with employees handling graphics and food creation.
Bob Nolan, Conagra’s senior vice president of demand science, acknowledged the company’s past oversight of packaging, leading to a concerted effort to prioritize and improve in this area.
Today, Conagra leverages data and insights from behavior scientists to better understand consumer preferences, decision-making processes, and memory triggers related to food purchases.
Packaging “is the holy grail in communicating what you want” to the consumer. “If they’re not picking [the product] off the shelf, it almost doesn’t matter what’s inside.”
Jamie Berle
Director of brand marketing, Suja Life
Nolan emphasized the critical role of packaging in capturing consumers’ attention and influencing their willingness to pay premium prices for high-quality products or ingredients.
Conagra’s introduction of the Mega product line under the Banquet frozen meals brand exemplifies the strategic use of packaging to communicate value and justify a higher price point. The packaging design prominently features the word “Mega,” emphasizes protein content, and showcases the product in a visually appealing manner.
The success of the Mega line has driven substantial growth for Conagra, prompting further investment and expansion of the product range.
While packaging changes are instrumental in conveying messages of value, health, or sustainability, it is essential for companies to strike a balance and avoid excessive alterations.
Suja Life, known for its cold-pressed juices and shots, underwent a packaging refresh to address consumer confusion and streamline the communication of product attributes, health benefits, and taste.
Director of Brand Marketing Jamie Berle emphasized the pivotal role of packaging in conveying brand messaging and attracting consumer interest. The redesign focused on prominently displaying fruit and juice ingredients, highlighting functional attributes, and incorporating a “greens meter” to indicate taste profiles.
The rebranding efforts paid off, with Suja experiencing double-digit growth driven by improved distribution and consumer reception.
Berle emphasized the importance of thorough research in minimizing risks associated with packaging changes and ensuring consumer engagement.
Challenges of Packaging Changes
While packaging presents an opportunity for brands to differentiate themselves, some companies hesitate to implement changes due to the associated costs, time investment, and perceived risks.
Refreshed packaging can be a costly and time-intensive process, leading to apprehension among brands about potential negative consumer reactions, particularly in the era of social media amplification.
High-profile packaging missteps, such as those experienced by PepsiCo with Tropicana and Sun Chips, serve as cautionary tales for companies considering packaging redesigns.
Despite the challenges, the evolution of packaging design presents opportunities for innovation and success. Firms like PV&COHO are leveraging data-driven approaches and multidisciplinary teams to streamline packaging development, reduce costs, and enhance brand impact.
As companies increasingly recognize the pivotal role of packaging as a growth lever and brand touchpoint, the narrative around packaging is shifting from a mere container to a strategic asset.