- Hershey plans to deliver all its packaged chocolate candy brands in display-ready cases by the end of July 2017, according to FoodNavigator-USA.com. The goal is to make packaging simpler for retailers to handle both during the shipping and stocking process.
- The new packaging also aligns with Hershey’s sustainability goals, using 31% less corrugate — equivalent to 3.12 million pounds — than its previous packaging. The new packaging is also made from 100% recycled materials.
- The candy maker is rolling out the new packaging design following successful tests with Walmart during last year’s Halloween and holiday seasons.
Hershey is taking a page out of deep discount retailers’ books and shipping its candies in display-ready cases that can be placed directly onto shelves. As retailers like Lidl and Aldi already know, shelf-ready cases are not only easy to ship, but can be moved from the back room to the selling floor in a matter of minutes, substantially reducing store-level labor requirements.
As reported by FoodNavigator-USA.com, Greg Gressel, Hershey’s director of disruptive supply chain, noted that in testing the new packaging last year with Walmart, the retailer “found that associates need approximately 62% less time to open and set up these new cases. Associates also no longer needed knives to open the perforated cases, making worker safety an added benefit to our packaging approach.”
Another benefit for retailers is that the sleek cases keep store shelves organized and clean-looking, which is appealing for consumers. Campbell Soup revolutionized the soup aisle several years ago by rethinking its package design and in-store displays. Other categories like yogurt, coffee and single-serve beverages have since followed suit by implementing their own spring-loaded display units.
Branded shelf-ready cases also provide opportunities for more promotional materials to be included on packaging. The cases can be used to call out product attributes, special offers and other information — benefiting not only the brand, but retailers and consumers as well.
As center store sales continue to feel the pinch, CPG companies like Hershey are investing in solutions as well as product innovation for retailers. The idea is to become not just a supplier but a service partner as well — and potentially boost sales of packaged goods in the process. Hershey's new display-ready packaging is a prime example of a supplier solution that could boost efficiency at a crucial time.