How is packaging innovation related to millennial shoppers?

A recent article in the online magazine Packaging World caught my attention and sparked some research. It starts off like this:

‘Draw consumers to the center aisle with Bemis® self-venting, bowl-style retort pouches for ready meals’

If you click on the link you can go to the site and see the cool graphic that allows you to rotate the pouch and see all the features.  But what got me interested was the phrase ‘millennial shoppers spending less time in the perimeter of the store’.

First of all you may need to be reminded that millennials (in USA) are people born between the early 1980’s and 2000 and they represent the largest portion of the workforce with direct annual spending power of $200 billion.  They are also the ‘digital’ generation and will shop for products partly based on information they find online.  The Haas Avocado Board 2014-2015 Annual Trends Report says millennials will be the ‘largest contributing group and influencer in food sales.’

Another group is also mentioned as being influential and these are 31 million IndieWomen who are 27 and older, childless living alone spending $50 billion on food and beverages. Both of these groups are looking for food that is healthy and convenient.

Apparently a big trend for millennials and IndieWomen is to shop the perimeter of supermarkets where produce and freshly prepared foods are located.  According to a Fortune report ‘The war on big food ‘  May 2015, a lot of major brand food companies are losing market share to the preferences shown by the two groups.  The article also points out that shoppers are skipping the middle aisles in stores altogether where the big brands typically dominate.  Campbell’s strategy to overcome their drop in market share is to buy companies like Bolthouse that produces fruit and veggie drinks which is moving Campbell’s closer to the perimeter.

Back to the Bemis self-venting retort pouch that caught my attention in the first place – notice that it is from Pace Ready Meals Fiesta Chicken and Rice.

Bemis outlines their strategy in their annual report states: ‘And in the United States, a variety of consumer trends such as freshness, healthy snacking, and on-the-go convenience drive the need for our proprietary, high-barrier packaging solutions….we will leverage our strong pipeline of new products and innovation’.     The Packaging World article says:

The pouch is designed for functionality and convenience:

• Microwavable package ensures food is evenly cooked through controlled venting
• Consumers can enjoy a hot meal right out of the bowl shaped package that incorporates an easy open linear tear feature
• Easily store this shelf stable package without the need for refrigeration
• Prevent burns and facilitate use with cool zones
• Clear bottom allows consumers to see the product

All of these features are innovations that cover a variety of requirements for Millennials and IndieWomen but are also intended to draw the consumer back to the center aisles.

Guess what?  Pace is a Campbell’s company.

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