The popularity of disposable plates and cups continues to spike around holidays and during the summer barbecue season. And as convenience contributes to these items' everyday appeal, single-use tableware sales are becoming anything but expendable.
Russ Martin, category manager for Spokane, Wash.-based Yoke's Fresh Markets, said that because the quality of disposable tableware has improved so dramatically over the last several years, “people are definitely using them as alternatives to regular dishes. There's a convenience issue now. People put their meals on disposable plates and then just throw the plates away. I do it too.”
Dan Donovan, spokesman for Pittsburgh-based Giant Eagle, noted that the chain is enjoying favorable category growth.
“Many customers, due in part to their on-the-go lifestyles, have gotten away from traditional sit-down dinners, and disposable tableware has become more popular,” he said. Single-use plate and cup manufacturers are also seizing “the big opportunity to convince consumers that it is OK to use disposables on an everyday basis,” noted Erik Sjogren, senior brand manager for Dixie Consumer Products, Atlanta. “It brings simplicity into their lives.”
Dixie's market research confirms that the trend is accelerating, noted Sjogren.
“The purchase cycle is becoming shorter between buys, which is an indicator that people are using disposables more frequently,” he said.
To contribute to the everyday appeal of its kid-friendly line, Lake Forest, Ill.-based Pactiv, which manufactures Hefty's Zoo Pals collection, is positioning its kid-friendly plates as collector's items. A child visiting the Zoo Pals website can view a Zoo Pals Collector's checklist, which includes pictures of plates featuring 60 different Zoo Pals characters, as well as a list of 19 retired Zoo Pals animals.
Zoo Pals plates are shaped like an animal's face, with two round ears, feet, a tail or wings. The two round sections are good for holding ketchup, dips, raisins or veggies, according to Hefty, and they keep foods from touching.
The paper plates are selling well at the Ted's Foods IGA store in Hebron, Conn.
“The plates are cute, and so are the characters,” said Todge Armata, owner of Ted's Foods IGA. “Kids have really taken a liking to them.”
Last fall, Pactiv began putting Box Tops for Education 10-cent coupons on select Hefty brand products, including Serve 'n Store tableware, Hefty disposable plates and cups, Hefty Zoo Pals plates and Hefty The Gripper waste bags. Consumers can cut out the coupons and turn them in at their school to be redeemed for cash. Over the past 10 years, Box Tops for Education has generated more than $175 million in school donations.
Dixie, which last year launched a value-priced Dixie Disney collection of plates, bowls and cups for kids, this year will replace the Disney characters with a new kid-friendly collection featuring the licensed Nickelodeon characters Dora The Explorer and her cousin, Go Diego Go. Another Nickelodeon character, SpongeBob SquarePants, will be featured on a new collection of 5-ounce bathroom cups. Sjogren said that while the kids segment is still a small niche in disposable tableware, it has great potential for growth as part of a more universal trend toward enhanced usage for all disposable tableware products.
EARTH-FRIENDLY DISPOSABLES
Both natural-food and mainstream retailers are finding space for ecologically sound disposable tableware.
After a six-month test in 30 Northeastern stores, Austin-based Whole Foods Market rolled out Preserve, a line of bright, earth-friendly tableware from Waltham, Mass.-based Recycline, to all of its stores. Preserve tumblers, cutlery and plateware are dishwasher-safe and made from 100% recyclable plastic. Recycline also markets earth-friendly toothbrushes and razors under the 10-year-old Preserve brand.
Positioned as a moderately priced reusable or disposable alternative to traditional paper or plastic tableware, the collection is intended for both seasonal and everyday use.
“It's dishwasher-safe; sturdy, so it can hold heavier foods like steak and potato salads; and it's made from recyclable plastics,” said Ben Anderson, new product development manager for Recycline.
Andrew Gagner, grocery buyer for Town & Country's Central Market natural food store in Poulsbo, Wash., said the Recycline collection is selling well. The line's bright purple, green and red colors make the collection, “stand out in our set,” he said. “Earth-friendly products and packaging are extremely important to our customers.” Recycline is in the process of expanding the collection to traditional supermarkets, starting first with chains that have natural food banners or natural food departments in their stores.
In addition to Whole Foods and Town & Country, Shaw's, Wegmans and Giant Eagle have also carried the collection, according to Anderson.
Giant Eagle's Donovan noted that the Preserve line did well last summer when the retailer promoted it. Giant Eagle is trying to find space for the line in its everyday disposable tableware planogram. Currently its best-sellers are “our corporate brand, followed by Hefty, Dixie and Chinet, which many of our customers buy for special occasions,” Donovan said.
Highland Park, Ill.-based Solo Cup is focusing on improving the convenience of its products. In 2004, it launched Solo Grips, a collection of ergonomically designed plates and cups. It's currently introducing Solo To Go, a collection of multifunctional, disposable deep-dish plates and lids that are a cross between storage containers and plates.
“We designed Solo To Go plates and lids to meet consumers' need for convenience,” said Christina Klem, senior brand manager for Solo Cup Co. “Because the product can be used at home or on the go, it's perfect for families with active, mobile lifestyles. Food goes straight from the refrigerator to the microwave to the table, all on one plate.”
Lively new colors and patterns “that make the products look fresh and attractive” are also driving sales, said Ted's Foods' Armata.
Georgia-Pacific's Dixie business has done a good job of changing the patterns and colors on its disposable plates and cups, industry sources noted.
“It keeps them looking up-to-date and timely for the seasons,” Armata said.
This year, Dixie will be introducing a new lime-green design for its value-priced Dixie brand, as well as an improved leak-resistant coating for its premium-priced Dixie Ultra line. The new coating provides 25% more leak resistance, according to Sjogren.
Even as buyers enjoy the category's transformation into everyday usage, they continue to focus many of their promotions on the spring, summer and holiday seasons.
“People like the convenience of durable disposable plates and cups,” said Yoke's Martin. “But even as they become more of a year-round purchase, the largest portion of sales are still made during the holidays and the picnic and camping seasons.”
Dollar sales of disposable tableware are up 19% vs. last year at Yoke's, noted Martin, with incremental sales from stand-alone displays playing an important role. Heavy-duty paper and plastic cups and plates are experiencing the strongest growth at Yoke's.
“We use displays tied in with summer beverages, holiday and party themes to generate incremental sales,” said Martin. “But what I really like about this category is that it is a solid-margin commodity category generating a nice consistent profit.”
