Cheese packaging innovations “squeezed out” by retailers – marketing expert
Innovation “squeezed out” A lot of the romance has been squeezed out by cheese promotions. Consumers have been trained not to be loyal to a certain brand of cheese, meaning that the consumer is less interested what is actually in the packs, said Renton. They are coming into the store just looking for the promotion, meaning that cheese is going to sell fast. The shelves need to be packed full of stock to meet this demand. As a result, traditional 400g packs of cheese have, in many cases, been shrunk down to 350g at the request of the retailer, said Renton. The worst thing that a retailer can do is have an empty shelf, he said. This type of retailer control also means that any attempt for innovation in the cheese segment by manufacturers would be a long process. If there was all of a sudden demand for 400g packs of cheese, the industry could probably do it in three to four months, said Renton. But to deliver a genuinely new packaging format would take manufacturers two to three years.
Promotion pricing essential Renton added that while many manufacturers would love to develop new, innovative packaging to house their products, it is essential that they adhere to the demands of the retailer to remain competitive. All manufacturers want to put bells and whistles on their packaging. But overall, they just want to protect the cheese itself, said Renton. It is important that manufacturers stay close to retailers to stay on top. The main issue is that manufacturers cannot afford not to use promotions. It is very difficult, he concluded.]]>