By Shefali Kapadia

When Unilever’s new CEO Hein Schumacher took the helm last summer, he was ready to make sweeping changes to the consumer goods giant. One of these actions was reducing the number of SKUs in Unilever’s portfolio.

This process, known as SKU rationalization, eliminates the lowest-margin product versions and sizes to improve profitability and simplify the supply chain. 

“We are striving for lower complexity with over 20% reductions in SKUs, raw and packed materials and number of suppliers,” the CEO told analysts and investors during an earnings call early this year.

Analysts predict SKU rationalization, considered a cyclical trend, will continue for several years to come.

Continue reading on Packaging Dive.

By Shefali Kapadia

When Sherri Garner Brumbaugh first looked into a NASCAR sponsorship for her trucking company, she wasn’t sure how to make it work. She wondered how a regional carrier would stack up against big national brands like Menards and Lowe’s.

“It seemed like such a reach for a company like mine,” said Brumbaugh, president and CEO of Findlay, Ohio-based Garner Trucking, which operates 90 trucks and 350 trailers.

But after speaking with marketing executives associated with NASCAR, Brumbaugh realized she could fill a niche with trucks that haul race cars. Following several conversations and each side understanding the other’s needs and offerings, the “pieces just came together,” and Garner was able to market its brand via a NASCAR sponsorship.

Marketing isn’t always a focus for trucking companies, especially big fleets with household names. Their name recognition, network and capacity alone can be enough to win over shippers.

Continue reading on Trucking Dive.

By Shefali Kapadia

When energy drink manufacturers work with packaging supplier WestRock on projects such as rethinking their multipacks, they have a few requests. 

“We see the ongoing ask of us as suppliers to do things better, faster, cheaper, more sustainable,” said John Perkins, vice president of global packaging systems at WestRock.

It may seem like a laundry list, but it’s critical in the buzzing sector that is energy drinks. Established companies, like Monster and Red Bull, are revamping portfolios and packaging designs. Newer entrants, like Celsius, are expanding rapidly with new SKUs and pack configurations. And brands within a larger portfolio, like PepsiCo’s Rockstar, are refreshing their looks. 

Continue reading on Packaging Dive.

By Shefali Kapadia

Tony the Tiger has adorned boxes of Kellogg’s Frosted Flakes for decades, and many consumers distinctly remember TV commercials where Tony would proclaim, “They’re gr-r-reat!” For a limited time last spring, Kellogg Canada ran a campaign that tapped into those memories. 

The food giant released nostalgic versions of cereal brands and their mascots, from Froot Loops’ Toucan Sam to Rice Krispies’ Snap, Crackle and Pop. The retro Frosted Flakes featured a two-dimensional Tony, spoon in hand and tongue out, ready to dive into his breakfast.

Many storied food and beverage brands, from household confectioners to big soda names like Pepsi, are leaning on their decades of history to redesign packaging with elements of their past.

In 2022, Bazooka Bubble Gum turned 75 and commemorated the milestone with 1980s graphics on its packaging. And in January this year, Cadbury released retro packaging to celebrate 200 years. 

Whether brands do limited-time launches or complete overhauls, the goal is to create eye-catching packaging that connects with consumers. Retro designs that bring up feelings of nostalgia are one key way to do that.

“It’s always a trend that evokes emotion,” said Jason Vaught, director of content and marketing at CPG creative agency SmashBrand. 

Continue reading on Packaging Dive.

By Shefali Kapadia

Shipper and carrier needs ebb and flow with the cycles of the market, but one particular service remains in high demand: drop and hook.

The practice involves a carrier dropping off one trailer at a dock and attaching another pre-loaded one, rather than live loading. The programs are popular among carriers, drivers, brokers and shippers due to efficiency and reduced dwell time.

“It’s a service that shippers need and carriers want,” said Adam McDonough, VP of truckload, North American Surface Transportation at C.H. Robinson Worldwide.

In today’s soft freight environment, fleets and freight brokers can use drop-and-hook programs to combat low volume and secure long-term agreements with shippers. J.B. Hunt Transport Services saw that bear out in Q4. Volume fell 7% year-over-year in its truckload segment. But volume rose within its 360box drop-and-hook program.

“Having a trailer pool makes it stickier,” said Chris Caplice, chief scientist at DAT Freight & Analytics. Instead of volume changing with each bid, shippers and carriers doing drop and hook must commit to a certain amount of business with each other, he explained.

“That’s exactly the key thing that carriers want: consistency,” Caplice said.

Continue reading on Trucking Dive.

By Shefali Kapadia

About 60 miles west of Chicago, bricks are being laid for a 775,000-square-foot building. That facility, in 2025, will be home to a Kraft Heinz distribution center.

The maker of Lunchables and Mac & Cheese deemed the facility “one of the largest automated CPG distribution centers in North America,” when it announced its $400 million investment to construct the warehouse. The center will “distribute its products to retail and foodservice customers faster than ever,” according to Kraft Heinz.

In a world where consumers and retail customers demand speedy delivery of a variety of products, food manufacturers have responded by occupying large distribution centers in major markets, allowing space to stock a wide range of SKUs that can quickly be transported to stores.

By Shefali Kapadia

Grocery baskets are looking a little emptier these days.

The majority of large food and beverage CPGs reported volume declines as they shared their latest quarterly financial results. Volume sales were down 2% YOY in mid-July across food and beverage, and average basket units were down 4.3% YOY, according to a Circana report.

Large packaged food manufacturers, in particular, are feeling the effects of slumping volumes.

“We’ve heard so far from a bunch of food companies that have reported earnings of … generally greater sluggishness in category volumes as pricing has lapped,” Barclays analyst Andrew Lazar said during Mondelēz International’s July earnings call.