Plastic (not) fantastic
30 October 2018
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Our Halloween seasonal overview is coming soon.
Plastic is a massive issue for customers post the Blue Planet show, highlighting that oceans are full of Plastic that we generate (single use in many cases) and that the recyclability (sp?) is not really an option in many cases.
Customer sentiment shifts overnight and Plastic goes right to the top of everyone's agenda. There have always been customers who merrily take their plastic packaging and give it to some poor bloke sat on a checkout, as if he is in any way responsible.
However the step change has been notable in that your 'everyday' customer is now suddenly aware of Plastic usage and these customers, on the bandwagon almost are ones that want action taking immediately.
However as we know, retail is fast paced but the business models, built up for years to support the usage of plastic to aid customers; 'skin' packaging e.g.for Steak to lengthen shelf life is suddenly out as Black plastic is not easily recyclable.
The efforts by retailers have been somewhat sporadic as it's a very 'new' world. We can all think back to Glass bottles being eliminated (by and large) for usage due to the global warming aspects, Plastic is cheaper of course.
However the plastic influx has expanded well beyond that, ready meals are exclusively black plastic in many, many cases and plastic can be seen on the shelves of supermarkets housing numerous products for the 'shelf ready' packaging.
It's about splitting down what is 'evil' plastic and what is 'necessary' and what the timescales are to move away from Plastic where other opportunities exist. Such as wooden cutlery or paper straws for example.
On the continent of course; this is nothing new. These bottle recycle machines give the customer a credit when they return plastic and other types of recyclable material. It's not a step change for the continental customers, they are well used to this when shopping.
The return scheme is wrapped up in the price charged to customers and it's something that could be easily transferable and activated in the UK. We have seen some work in the sector from Morrisons, who have led the way in many respects by changing straws to Plastic, changing their Produce bags from plastic to paper and also installing their own recycling machine in two stores.
This machine recognises the bottle and type of material, meaning if the material can not be recycled, then the machine will not accept it. More points via the loyalty scheme are then given to customers to reward them for recycling.
Tesco have followed with a similar idea and trial across a number of stores in various geographies too.
Both Morrisons and Tesco have given customers the chance to bring their own containers for counter bought produce..
An obvious move one would think and one that isn't difficult to offer, nor difficult to operate and it also doesn't cost anything.
There are some concerns over the food safety element perhaps; given the possibility of raw being mixed with cooked foodstuffs perhaps. Whilst this concern is valid, it's one of those that isn't a barrier to offering this for customers.
Grey plastic is unclear in terms of the recyclability; however it is better than Black.
This is a good example of where packaging has been developed to enhance shelf life of product, meaning it stays fresher for longer on shelf. However it's all plastic, so how does the retailer square the circle here?
Waitrose have been clear with their pledges to change their packaging in ready meals and have conducted various trials around changing the trays to cardboard or a mixed compound that can be recycled.
Of course this comes with a cost; there is no silver bullet here and it's a hard act for retailers to balance; customers are keen to reduce plastic and are acutely aware of their responsibilities and are suddenly pressing retailers very hard on the subject.
But, does that translate to those customers wanting to pay more for the recyclable trays in ready meals for example?
There are numerous examples of further work being undertaken in this space; some of it pre dates this email significantly. For example, it was interesting to note that plastic straws disappeared in Morrisons way back in the Summer, replaced by Paper equivalents.
Various trends such as this have occurred across the sector and also in to food service operators, another key area for plastic waste and subsequent reduction.
As seen above; M&S have changed their plastic cutlery with food to go and switched in to a wooden alternative.
Of course own label is disproportionately affected which puts the onus right on to the retailers themselves, especially as Produce and Meat are own label dominant and are often laden with plastic.
In addition, retailers are responsible for their own label products, so customers will not understand why an own label branded line isn't using reduced plastic... So the pressure is on.
Suppliers have a part to play and these shippers have been popping up in numerous stores, Tesco notably, advertising that bottles are made with plastic reclaimed from the beaches.
The difficulty is that not all Plastic can be recycled, so it makes it difficult to ascertain how this can be reused effectively. There is some plastic that is inherently 'evil' in nature.
A collaborative approach on Plastic reduction will benefit us all ultimately, however, like Organic food being better for customers, you'll still struggle to see a range in supermarkets that compares with the wider range of Fruit/Vegetables.
Price remains all important and for retailers, this is another challenge alongside Brexit to negotiate around the cost base and packaging...
More to come on this, it's a huge topic and some retailers have been suspiciously quiet on the matter.....
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From the Grocery Insight newsletter archive, first sent to subscribers on 30 October 2018. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.