LIWSF / PACKAGING: On the pouch

To a crowded seminar at last month’s LIWSF, industry experts presented evidence of consumer acceptance of wine pouches – from both an environmental and a convenience perspective. By Ben Grant

Tapping into a single trend is a positive for any brand owner – but managing to engineer a product development that simultaneously ticks two of consumers’ hottest boxes is a seriously impressive coup. And it looks like the Company of Wine People might just have pulled off this ambitious goal with a packaging initiative that is a truly worthy example of innovation.

The wine pouch is a very environmentally sound piece of packaging, requiring far less raw materials and generating less harmful emissions than glass bottles. From the consumer‘s perspective, perhaps even more importantly, it is also perceived as a highly convenient option. Drinks Insight carried out extensive national  research into consumer perception of the pouch. During a crowded seminar at last month’s LIWSF, the results of the study were made public, while the various sides of the packaging debate were explored by three excellent speakers: Ehrmann’s marketing director Keith Lay; Tesco BWS category manager Jason Godley; and packaging industry consultancy Pira International’s sustainability expert Gary Parker.

Kicking off proceedings was Drinks Insight managing director Charlotte Hey. She highlighted the staggering size of the packaging industry, and pointed out that it continues to grow by 5% a year. There is still a high level of confusion among consumers regarding issues of recycling and sustainability, she explained, before stressing that it is essential for all stakeholders in the drinks industry to work together to tackle the problem. On the face of it the new pouch developed by the Company of Wine People goes a long way to addressing this critical issue, and according to the research carried out by Drinks Insight consumers are certainly drawn towards the concept – though not necessarily for the most obvious reason.

For those who are not yet acquainted with the pouch – which was previewed at LIWSF by Arniston Bay – it is an aluminium and plastic bag. Less voluminous and raw material intensive than a bottle and more reliable and attractive than a bag-in-box. Not only does the product boast some pretty impressive environmental credentials (more on that later), but it also ticks the convenience box: lightweight and easily transported, it presents an excellent option during the picnic season.

Taking responsibility
Tesco’s Godley was the first speaker to address the assembled industry execs, and the level of priority that the UK’s leading retailer is giving the issue of packaging made it immediately clear that this is an issue that cannot, and will not, be avoided. Pointing out that sustainability is the biggest challenge facing the industry, he reemphasised Hey’s message that all stakeholders – be they producer, merchant, retailer or consumer – must take responsibility for their actions. “It’s no excuse to say ‘I can’t do anything on my own’. Together we’ll make a big difference, it’s a case of joining up the dots.” Tesco has pledged that by 2010 it will have reduced total packaging by 20%, and that all materials will be recyclable. It’s a pledge that will eliminate a whopping 100 tonnes of carbon emissions per year. “Our customers have told us that they want Tesco to do more to address environmental concerns. As an industry we need to tackle this issue head on, otherwise legislation will be introduced.” Government imposed rules will  undoubtedly have a severe impact on the trade, so taking preemptive action is clearly the best route forward.

In order to meet these ambitious targets the company is in the process of repackaging vast swathes of its own label merchandise – within the wine section, for example, this involves modifying over 250 SKUs. Interestingly, however, many of the retailer’s suppliers seem to be less focused on reducing packaging waste – “you’d have thought we’d be overwhelmed with [more environmentally sound] products,” Godley explained. “But we’re not”. As the nation’s number-one retailer emphasised that it is actively seeking out products that seriously address green issues, it must have put a smile on the face of the representatives of the Company of Wine People. And should have made other suppliers and importers in the room sit up and pay attention.

Major trends
The next speaker was Ehrmann’s Lay, who explained a little about the theory behind the project, before going on to highlight some of the key findings from the Drinks Insight research. The current stagnation of the UK wine trade, he explained, should be a cause for concern for everybody in the room. Sales look like they may have reached a plateau, so with an ageing population it is essential to be proactive in recruiting younger consumers. “Wine needs fresh ideas to increase its appeal, and also to create new consumption occasions,” he said, citing Coca Cola, which has developed a myriad of presentations, all of which are suitable for specific occasions.

The four “mega” trends that Ehrmann’s has identified in the market are ethical, environmental, health and convenience. Tying together two of these are the “make it green but easy” consumers. “If you can deliver a product that delivers both of these requirements, it’s something that a growing group of consumers will really buy into,” Lay explained.

While all things environmental dominate the headlines, it’s interesting to note that among the consumers that Drinks Insight spoke to, convenience was a far more pressing priority. When asked what they liked about the pouch, 40% said it was convenient/easy to carry, while only 12% referred to the environment. Encouragingly, 71% said that they would expect the quality to be “about the same” as wine from a bottle, demonstrating, says Lay, “that consumers accept that good quality wine doesn’t have to come out of a bottle”.

The pouch represents a bold step forward into uncharted territory – and such a move is bound to result in some unexpected results. It speaks volumes about the product that many consumers are drawn towards it as a result of convenience. As environmental issues continue to become ever more important in the public eye, surely the clear green gains (as proven by Pira) will win more and more drinkers over to the idea of the pouch.

The companies that take the lead and show themselves to be “greener than green” will surely reap the rewards in the long run.

© db July 2007