For many consumers concerned about their food, packaging has become a major factor in deciding what to buy. More than 2/3 consider it important that the products they buy are in recyclable packaging, according to one report. Another study found 58% of consumers said they were likely or very likely to purchase food products in packaging that clearly states it is reusable or recyclable.
With that in mind, companies like Molson Coors can no longer just depend on the taste and ingredients of the product itself to attract consumers but increasingly what the offering is packaged in. As more companies overhaul their packaging to make it more environmentally friendly, competitors have no choice but to respond or risk getting passed over on grocery store shelves, writes SupplyChainDive (March 15, 2022).
So Coors just announced that it will begin moving out of plastic rings this year from its packaging globally in favor of fully recyclable and sustainably sourced cardboard-wrap carriers. To support the move to more sustainable packaging, Coors is investing $85 million in its operations to upgrade machinery to allow its entire North American portfolio — covering more than 30 brands that currently use plastic rings — to use cardboard wrap carriers by the end of 2025. Coors estimates the move to cardboard-wrap will save 1.7 million pounds of plastic waste annually by 2025. The announcement moves Coors closer to its goal of ensuring its packaging is 100% reusable, recyclable or compostable, and consumer-facing plastic packaging is made from at least 30% recycled content by 2026.
Many sustainability-minded food companies, from Nestlé and PepsiCo to General Mills and AB InBev, have improved their packaging to help them meet their own environmental goals. Coors would be the largest beer brand in North America to move away from plastic rings.
What started out as a few companies making changes to sustainable packaging has quickly gained momentum across the industry. Nestlé is moving at least some of it Carnation Breakfast Essentials offerings from plastic bottles to Tetra Pak cartons made with paper it claims is responsibly sourced. General Mills’ Nature Valley Crunchy granola bars moved to fully recyclable plastic wrappers and PepsiCo’s Frito-Lay division is introducing a compostable bag for its Off The Eaten Path brand. Coca-Cola has introduced bottles made from 100% recycled plastic material while Mars Wrigley has created biodegradable wrappers for Skittles.
Classroom discussion questions:
- Why is Coors making this move?
- What is the “triple bottom line” (see page 195 in your Heizer/Render/Munson text) and how does it apply here?