Case Study Cut the cost of coffee in an instant If you produce instant coffee you could cut packaging costs by more than 20% by moving to Best in Class packaging weights. That s the conclusion of WRAP s study on 100g pack size glass coffee jars. (Photograph from IGD)
Cut the cost of coffee in an instant 2 The benefits of change WRAP s detailed research investigated the weights of a wide range of coffee jars currently on the UK s shelves and estimated the costs and benefits of changing to the Best in Class in this case the lowest - weight. And the results are startling. Lightweighting equals Savings There are clear savings in material and distribution costs of coffee jars if the amount of packaging is reduced, which in turn leads to a reduction in carbon emissions. 21,000 per million units that s the overall figure saved by lightweighting 100g pack size glass coffee jars. As you can see below there are significant savings in transportation costs as well for moving to Best in Class: 19%. The average jar weight saving by moving to Best in Class; 14%. The average reduction in pallet weight; 15%. The average reduction in pallet numbers (equivalent to a lorry load per million units); 42,000 Kwh of energy. The overall energy saving per million units; 39 tonnes of carbon. The overall reduction in carbon emitted per million units; 17,600. The overall reduction in material costs per million units; and 53 tonnes. The overall saving in material used per million units. Best in Class is an indication of the lightest weight packaging that is used for food and drink products found on the UK supermarket shelf. This information has been used to develop a database that shows the spread of packaging weights used for a product from lightest to middle to heaviest. Moving to Best in Class has many advantages including minimising the use of valuable resources, reducing costs and reducing energy consumption.
Cut the cost of coffee in an instant 3 Payback Eight months With a turnover of two million units per year, a single start up cost of 28,500 and savings of 21,000 per million units, the investment in lightweighting 100g pack size glass coffee jars will begin to pay back in as little as eight months. After this initial period the supply chain would continue to save 21,000 for each million units. Payback based on two million units/year: Year 1 Year 2 Year 3 Total Cost: - 28,500 0 0 Saving: 42,000 42,000 42,000 Year on Year Savings Net): 13,500 42,000 42,000 97,500 There are, of course, some serious challenges to overcome when changing packaging. The container must continue to retain brand identity in the process of change and meet technical performance standards. Another area for consideration is materials and energy savings. Even greater savings could be made by using recycled glass or by encouraging the use of refills, for example, in Europe pouch refills are available.
Cut the cost of coffee in an instant 4 Money isn t the only thing you ll be saving! Assuming all UK households moved to a Best in Class weight for their monthly 100g pack size jar of coffee we would save 15,900 tonnes of glass each year. Optimising packaging can cut costs by reducing waste liability and positioning the company to meet future legislative and public challenges as consumers become more aware of the amount of packaging they use. For instance, in the Industry Council for Packaging & the Environment s (INCPEN) recent survey into consumer attitudes to packaging 72% responded that overall there is too much packaging. Advertising packaging savings allows your company to promote the product and build brand perception. The introduction of new packaging formats creates promotional opportunities and the reduction of costs overall is attractive to shareholders and investors. Compare your container with the Best in Class Here are some optimum weights for 100g pack size glass jars. How do yours compare? Best in Class jar weight = 199gm Best in Class cap weight = 8gm Best in Class pallet loading = 2,430 jars
Cut the cost of coffee in an instant 5 Summary WRAP has researched the weight, size and usage of a range of commonly used 100g pack size glass coffee jars to analyse the savings from lightweighting. Although average figures are used, all research is based on actual coffee jars, including branded and own-label examples. The findings are conclusive. By adopting a Best in Class weight the supply chain could see cost savings of up to 20%. Time for action Clearly, moving to Best in Class by reducing the weight of glass containers for coffee can have a big impact on costs in distribution and manufacturing, in primary packaging waste reduction, in energy savings and in the public perception of your company. To move to Best in Class you can compare where your jar sits in relation to other containers using the website Best in Class database* and then talk to your supplier about moving to reduce the materials being used. For more information, or technical advice, contact the Retail Team at WRAP on 01295 819686 or email retail@wrap.org.uk. The WRAP Retail Innovation team works with retailers and their supply chains to reduce the amount of packaging and food that households throw away. More Best in Class data and case studies are available at www.wrap.org.uk/retail. *http://www.wrap.org.uk/retail/tools_for_change/uk_best_in_class/index.html Disclaimer: While steps have been taken to ensure its accuracy, WRAP cannot accept responsibility or be held liable to any person for any loss or damage arising out of or in connection with this information being accurate, incomplete of misleading. For more detail, please refer to our Terms & Conditions on our website - www.wrap.org.uk.