Campbell Soup, Heinz to offer products in pouches this year, joining trend that is picking up steam; Campbell hopes new soups in pouches will attract trendy millennials, while Heinz aims to fend off competition with private labels

Sandy Yang

LOS ANGELES , March 6, 2012 (Industry Intelligence) –

Campbell Soup Co. and H.J. Heinz Co. will introduce products packaged in pouches this year, joining a growing trend to use more pouches for packaging consumer products in the U.S., reported the Chicago Tribune on March 6.

The use of pouches in consumer products, including shampoo and pet food, is up 37% since 2007, with especially strong growth in snacks, according to Mintel Group.

The trend is being driven by savings in both packaging and shipping costs, as well as by the perceived modern look and appeal of the pouches when decorated with elaborate graphics, the Chicago Tribune reported.

Campbell is hoping that its launch this summer of a premium soup range with new flavors packed in an edgy, graphically-intense pouch will attract millennials, those ages 18 to 34, and turn around the declining soup segment of its business.

The Camden, New Jersey-based company also plans to introduce a line of skillet sauces in pouches this fall, reported the Chicago Tribune.

At Heinz, its namesake ketchup will be offered in a 10-ounce pouch that will sell for US$0.99 each in an effort to compete with cheaper private-label ketchup products. Buying decisions are “now intensely focused on value,” said CEO William R. Johnson.

Given that U.S. shoppers are looking for smaller sizes and that Heinz has had success with its pouched sauces and other products like baby foods in various developing countries, Johnson said that he is optimistic about using pouches, the Chicago Tribune reported.

Neither Pittsburgh, Pennsylvania-based Heinz nor Campbell would discuss savings from using pouches. However, a 10% to 15% cut in packaging costs can be realized by going to the pouches, said John Kalkowski, editorial director of Packaging Digest.

Campbell’s is outsourcing production of its pouches until sales are strong enough to support an investment in in-house production, said Campbell’s CEO Denise Morrison.

The most recent move to use pouch packaging appears to be based on “providing creative consumer solutions,” not just offering new packaging because the technology is available, said Lynn Dornblaser, a director at Mintel, reported the Chicago Tribune.

The primary source of this article is the Chicago Tribune, Chicago, Illinois, on March 6, 2012.

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