Unit_9_-_Food_and_Beverage_Packaging - Unit 9 Food and...

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1 Unit 9 Food and Beverage Packaging In this unit, we will learn about food packaging in the United States and the relationships between retailers, costs, consumer expectations, and product characteristics. There is also a food packaging course (PKG 455) available if you are interested in learning more on this industry segment. 9.1 Food Retailers The food industry in the US is large and diverse. More than 250 million consumers get their food from 2.5 million farmers, plus some foreign suppliers. Most food is processed and packaged by approximately 25,000 food companies and 4,000 beverage companies. Food is sold in 300,000 retail food stores in all parts of the US. Retailers of food products are varied and are usually classified into the following five groups: Convenience stores are small retail stores, such as 7-Eleven, QD, and the small stores attached to gasoline service stations. Supermarkets/grocery stores typically carry between 40,000-75,000 items. Examples are Kroger, D&W, Food Lion, Safeway, and Winn Dixie. Club stores are large warehouse-like facilities. Packaged products are often presented and sold in larger units than in supermarkets. The shelves are warehouse racks and the basic unit for many products is a pallet load. Examples are Sam's Club and Costco. Specialty markets, as the name implies, specialize in products of a particular type, quality, or regional source. Gourmet foods and international foods are common examples; however, there are chains which emphasize other features, such as a limited line of high quality meats and vegetables or organic products. Foods for Living, Swagath, and Chester’s Nuts are local examples. Hyper markets are large stores that carry an extensive food product inventory along with an array of other products, such as pharmaceuticals, hardware, clothing, sporting goods, garden products, and furniture. Examples are Meijer and WalMart. If you think about the differences between these types of stores, you also begin to realize that the types of products and their respective packages also differ. Convenience stores carry a lot of single-serve, on-the-go, point-of-purchase, impulse type items. Supermarkets and hyper markets carry huge volumes of competing products from a variety of companies that are more of a necessity to the consumer. Club stores carry bulk items with the goal of reduced costs. And specialty markets cater to specific lifestyles, where experience and value may be more important to the consumer, rather than cost. The retail system is mostly based on self-service where consumers browse through stores, selecting individual items from the array of products presented on the shelves. Most of these products are prepackaged. In this environment, the package does much of the selling, along with marketing and advertising within the media. If a person spends one hour shopping at a store that has 50,000 unique items on the shelf, each item will get an average of less than 0.1 second of attention. Within a product group, when a purchase is planned, each product will typically receive 5 seconds or less. This is why the package needs to have features that attract
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This note was uploaded on 10/17/2011 for the course PKG 101 taught by Professor Haroldhughes during the Spring '08 term at Michigan State University.

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Unit_9_-_Food_and_Beverage_Packaging - Unit 9 Food and...

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