Roast JulAug04 Brand New Bag

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40 r o a s t July | Augu

packaging

aDVancES

OFFER

bEttER

maRkEting

OptiOnS

FOR

YOUR

bEanS

by

MarkV.

Howley

I recently completed a busy three days at the SCAA show in Atl

where I had the opportunity to chat with members o the specialty c

industry about my avorite subject: coee packaging.

Although coee packaging has been relatively stable or years, its n

been static. There are always new packaging options hitting the marketp

and the most recent advancements oer some great ways to protect and di

your careully roasted coee.

Today, the most common package used by specialty roasters is a barrier

such as an aluminum oil-based laminate with a one-way degassing v

While roasters use

myriad philosophies and methods to ensure reshness, h

barrier bags are the most common and widely accepted packaging system

protecting roasted beans rom oxidation. Tests with resh-roasted coee

the years consistently document the negative eect o oxygen

on coee reshness

and taste. Thereore,

most specialty coee

roasters who market

resh-roasted coee

use a high-barrier bag

and package the roasted

coee as quickly as

possible ater roasting.

continued on page 42

A BrAnd nEWB A G

July | Augu


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Youve Coe a Long Way, Baby

Todays barrier bags have not always been the predominate package

ormat or coee. In the past, roasters used metal cans or paper bagsto deliver coee. While metal oered an excellent barrier, it couldnt

release CO2; thereore coee roasters had to let the coee de-gas

beore packaging it in cans. Flexible packaging via paper bags was

less costly than cans, but the bags werent a perect solution either;

they did not have ability to protect coee rom oxygen or light

degradation because the paper was not adequate.

The advent o exible packaging via the use o high-barrier

laminates and one-way degassing valves, like the ubiquitous

aluminum oil-based laminate, drastically changed the market.

Specialty coee roasters started to package and deliver resh coee

to regions previously considered inaccessible. Ater a urry o

activity in the mid-1980s, exible packaging settled into standard

package weight and ormats. Most common are oil-gusseted bags,

at pouches, or stand-up pouches with or without a one-way valve.

Since the 80s, the exible package ormats or coee have beenrelatively stable. The situation is dierent in retail categories, such

as pet ood, cookies and health oods, where changes are being

made every season.

Package consistency in

retail coee is attributable

to the enormous investmentmade by large roasters

like Starbucks, Millstoneand Gavia in automated

packaging equipment over

the past 10 years. Most o

these automatic machines

produce at pouches or

side-gusseted bags with a

one-way valve. Over the past

10 to 15 years, these largerroasters spent huge sums

o money promoting the gusseted bag ormat and the one-way

degassing valves to consumers, who have come to expect this type

o packaging. In todays marketplace, many small- to medium-

sized roasters take advantage o this consumer acceptance and

market their coee in the most widely accepted packages; the

oil-gusseted bag with a one-way degassing valve.

The Whole Package

Changes are in the air! The recent SCAA show was a great

showcase or some o the subtle and innovative changes in coee

packaging. It is important to watch the changes not only because

o what they can contribute to quality maintenance, but also

because consumers are fckle. When consumers enjoy a package

because it meets some untapped desire, market conditions change

quickly. I consider the ollowing changes subtle, yet signifcant.

gQuadSealS

The hottest new exible package

is the quad seal package, which

gets its name rom the our seals

in each corner o the bag. The

quad seal was introduced to thepet ood industry and several

other industries 10 years ago,

and it recently made a big splash

in the coee market. Premade

quad seal bags are readily available, and the cost o the quad seal

is only slightly higher than a traditional gusseted bag. Quad seal

bags oer a number o benefts, including:

h Consistent shapeh Efcient use o shel space

h An open back panel or graphics and labels (no back seam)

h A new and innovative look.

gQuad Seal BagS

WithaZipperQuad seals have already

evolved to address one

o the biggest consumer

convenience problems

with a gusseted bag:

how does the consumer

conveniently reseal the

bag? In todays markets, the gusseted bag typically relies on tin

ties and reclosure tape. Unortunately, tape and tin ties requentlyall o the bags ater a ew uses. Tin ties are also costly and

cumbersome.

While stand-up and at pouches with zippers have been

readily available, it is difcult to develop a zipper that works on

gusseted bags like quad seals. This is because the zipper intruded

on the gusset in the side o the bag. But a handul o bag makers

A BRAND NEW BAG (continued )

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and orm, fll and seal manuacturers recently introduced quad

seal gusseted bags with a zipper or reclosure. The zipper is

placed at the top o the bag, similar to sandwich bags, and allows

easy opening and closing o the bag.

The ormat is popular in Asia, and the U.S. market is starting

to see the impact. There are a ew limitations: the zipper holding

one gusset closed decreases the size o the opening, and the lack

o k-Seals can cause the bag bottom to be unstable.

However, the possibilities are exciting, especially in the two-and fve-pound category:

h Zipper or reclosureh Crisp and consistent shape

h Proven bag-making technology.

gStand-up pouch

The stand-up pouch is hot hothot in almost every market,except coee. We see the stand-

up pouch in a number o roaster/

retailers and in Hawaii, but the

package has not taken o at the

mainstream level. This is not tosay the stand-up pouch is a bad

choiceconsumers are wild

about the ormat in markets

like pet ood and cookies.

Nonetheless, I believe, given

the success o the gusseted bag

and the desire or roasters to utilize convenient and establishedormat, the stand-up pouch, will have a limited impact in coee.

gMatte FiniSh

Anyone amiliar with oil-

based laminates knows

that oil oers a great

barrier and an attractive,shiny backdrop or colors.

Most retail coee packages

use polyester because it is

a great outer surace or

ink, it is scu-resistant and

it is clear and shiny. The

polyester is laminated to a

sheet o aluminum oil and

a sheet o polyethylene to create a high-barrier package.More recently, designers wanted to see something that oered

more versatility. They ound that the shiny appearance produced

by oil and polyester limited design options.

Matte fnishing oers an alternative. Similar in appearance to

matte fnish photos, the matte fnish o packaging is accomplished

by dulling the appearance o polyester; thereore colors are muted

or toned down. In todays crowded retail market, roasters need to

dierentiate their packaging, and matte fnish polyester provides

an attractive, subtle and economical alternative. Most bag makers

are amiliar with the process, and I have seen great-looking

designs with matte fnishes in the past ew years.

Another creative beneft, packages can be designed with

registered matte fnishing; in other words, 50 percent dull and 50percent shiny. The options are abundant.

In addition to these new design changes and package and

ormat improvements, there are other innovations on the horizon,

including tin cans with one-way valves, exible packaging

designed to remove oxygen rom the bag, and new one-way valve

options.

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A BRAND NEW BAG (continued )

A pre-mAde bAg with custom printing is a great

marketing tool, but it is not or everyone. The costs o

design, set-up and printing plates, and minimum-run

sizes are too cumbersome or many small- and medium-

sized roasters.

I have provided a quick summary o the investment

required or a typical 12- to 16-oz. oil gusseted bag with

a valve.

h Four-color bag (1216 ozs.), minimum quantity =

20,000 to 25,000 bags x $0.28 ~ $7000

h Plate charges (our colors) = $400-500/plate x 4 ~

$2000

h Design: You will need to design the bag. Most bag

makers provide the template or your bag, but youmust hire a designer. Hire someone who knows the

specifc print process. This will save you time and

money, and will keep you rom being disappointed

with the result.

h Design idea: Many small roasters select a common

bag size and place a generic design on the bag, then

apply labels to identiy roasts. The inventory o bags

can be used or all roasts and the appearance is great,

provided the design and labels are chosen wisely. I

have seen some great bag designs that use a label to

accommodate a whole range o unique roasts.

In my opinion, roasters should consider custom bags

i the inventory will be used within 12 months. Many

companies who buy bags that last longer fnd that market

conditions dictate a change and they are stuck with costlyinventory. This may not be the case or some specialty

roasters who ocus on specifc upscale markets where a

custom look is needed, but most roasters can aord to

wait (and label and orecast) or a ew more months

beore they commit to a custom job.

B E H I N D T H E L A B E L

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FREE INFo#136

When mAny roAsters start out, theypackage their coee in pre-made bags becauseits simple, eective and requires less investmentup ront. However, pre-made bags can increaselabor costs, based on the time it takes to open,fll and seal the bags, while limiting the numbero bags that can be completed (usually no morethan 10 to 20 bags per minute).

A simple way to increase line speed andreduce the cost o the package is to automatethe process. The most common upgrade isautomatic rollstock orm, fll and seal (FFS)machinery. With this type o set-up, the roasterbuys flm on roll instead o pre-made bags, and

the machine automatically orms, flls and s ealsthe bag.The automatic process can save a roaster

money by reducing packaging and labor costsand increasing line speed, but the machinesrequire a considerable fnancial investment.Thereore, its important to complete a paybackanalysis prior to making a decision aboutautomation.

When business is booming, the decisionto automate is easy. Anyone using a pre-madebag in these types o businesses can save a loto money by converting rom a pre-made bag torollstock. In these cases, my advice would be toinvest in orm, fll and seal.

In my experience, the real world rarelyincludes the huge booming business scenario,and many roasters are torn between buyingcostly pre-made bags or high-cost and high-speed automation. Roasters will requentlystudy dierent growth scenarios and orecasts,but the decision to invest is difcult. The basisor this decision should be an analysis o costsavings on tangible cost elements.

In the simplifed Cost Savings Analysischart, I use the example o a one-pound coeebag, but do not account or labor. Reduction inlabor is a reality, but do not orget that orm,fll and seal machines use less mechanical

devices and more servo controls and electronics.Thereore, todays packaging machines requireskilled workers and a consistent quality controlprogram. Remember when FFS lines are used,the roaster also becomes a bag maker and acoee packager. Stricter production discipline,inventory management and sound qualitycontrol programs will need to be implemented.

Youll notice that one consideration is thetype o FFS line to purchase. While lower-end FFS lines are great or ofce coee salesand institutional packages, some o themcompromise retail package appearance. Thesesmaller units make a bag rom rollstock, but bagcorners are not crisp and clean. This is because

PA CK ING YO UR BA GS IS IT TImE TO A UTO mA TE? the orming tubes are not designed orsquare bags.

Higher-end FFS lines are morecomplex. The bag appearance is muchbetterespecially i newer quad seal unitsare installed. However, even the high-endFFS machines rarely produce a bag withthe same appearance as a pre-made (i.e.the crisp and clean corners on a pre-madebag). This is a unction o the bag-makingsection o orm, fll and seal machinesas opposed to horizontal pre-made bagmakers.

The benefts o automation are obviouswhen volume gets above 500,000 bagsannually. Nonetheless, consider a ewpoints:

h How many dierent stock-keepingunits do you run? Changeoverrequency on the machine increasesscrap and down time (scrap should bewell under 5 percent).

h Do you run a lot o avors? Clean-up between avors can be time-consuming.

h Do you have adequately skillThis is critical.

h A lower-cost FFS line ($50does not make a consistent aretail package.

h Do you need a valve applierThis will add cost (+$25,00

h Many small- to mmanuacturers will use primary or only packaging lmake sure you have a contievent o breakdowns.

h Does the FFS manuactureservice and parts departmen

h Make sure to budget time orinstallation.

h Learn about the service orgthe FFS machine manuacthave a local service represen

Pick/Place/Fill and Seal Another option exists or roasteto increase output but do not win sophisticated orm, fll and seThis equipment picks up pre-maa stacked position, places the bagflls the bag and seals it.

The price is approximately$100,000, depending on design These units are very popular in mstand-up pouches are also popula

FREE INFo#137FREE INFo#114FREE INFo#115

100,000pre-ade

bags/year

200,000pre-ade

bags/year

400,000pre-ade

bags/year

600,000pre-ade

bags/year

1,000,000pre-ade

bags/year

1,500,000pre-ade

bags/year

1 lb.pre-ade(approx.cost)

$0.26 $0.25 $0.24 $0.23 $0.20 $0.19

Annual Cost(pre-ade)

$26,000 $50,000 $96,000 $138, 000 $200, 000 $285, 000

Rollstock Saving(~30%)

$7,800 $15,000 $28,800 $41,400 $60,000 $85,500

FFS Cost(Lower End)

$ 60 ,0 00 $ 80 ,0 00

FFS Cost(Higher End)

$150,000

cos t savings analys i s (on e pound ba g)

A BRAND NEW BAG (continued)

While these new technologies

are un and exciting, its important

to remember the true purpose o

packaging: to protect your coeewhile showcasing it in its best light.

Beore making a decision, make

sure you weigh the variables

availability, cost, quality and

appearanceand then decide

which type o packaging is right or

you.

Mark V. Howley has spent more than15 years in the exible packagingindustry. The majority o his experienceincludes high-barrier laminates used

or the preservation o coee, one-way degassing valves, and the packagingequipment used to fll and seal coeebags. He can be reached via e-mail [email protected] or by

phone at 800.562.2247(x125)

Roast JulAug04 Brand New Bag

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