CLEAR PACKAGING SHEDS LIGHT ON EGGS

LYNNE MILLER

NEW YORK -- Consumers hate cracked eggs, and so do retailers. To cut down on the problem, and create a new look for eggs, some U.S. retailers have introduced see-through egg cartons that let shoppers view the shells without having to open the cartons first.

Retailers told SN the new packaging offers many benefits, including fewer broken eggs. A leading manufacturer of the cartons, Ovotherm International, based in Austria, said demand for the product is growing to some degree in the United States.

In other countries, consumers are accustomed to the clear containers. Here, the cartons are more expensive than their plastic foam counterparts, and that's one of the main reasons they're scarce, according to industry observers.

"There are egg suppliers that use the clear egg cartons," said Joanne Ivy, a spokeswoman for the American Egg Board, Park Ridge, Ill. "They're nice looking, but they're not widely used."

In the Southeast, a handful of supermarket chains recently brought the cartons to their dairy cases. In fact, Ron Dennis, president of Virginia Beach, Va.-based Farm Fresh, thinks his company's commitment to the containers will help the stores stand out a bit in the competitive Hampton Roads market -- and sell more eggs.

Until this year, consumers could only purchase six-packs of eggs in clear cartons at Farm Fresh. Now, they can buy Grade AA large eggs by the dozen in see-through polystyrene cartons at the chain's 36 stores in southeastern Virginia.

Eventually, all the eggs Farm Fresh sells will be packaged in the new containers. That's not the only change. Customers find the store's name and a use-by date stamped on each egg. The chain has promoted the new look via store circulars and large signs in the dairy departments.

The company also trained its dairy managers to bring the cartons to the attention of consumers as they shop the egg case.

Though the cartons are more expensive than the plastic foam ones, consumers won't notice. Farm Fresh absorbed the extra cost, believing consumers will buy more eggs, which will boost sales, but at a lower profit, Dennis told SN.

"We've received incredibly positive comments" from consumers, Dennis said. "We want to provide a point of differentiation with our customers. We're going to sell Grade AA eggs in better cartons at the same price as competitors who sell regular Grade A eggs in Styrofoam" cartons.

Though it's too soon to report any real jump in sales, Dennis has noticed one measurable change: Egg breakage is down 80%. "Customers are not opening the clear packages," he said.

"Egg sales are as strong or stronger than ever," Dennis said. "We think eggs have always been a viable category."

Earlier this year, Harris Teeter, Mathews, N.C., completed a test of 12-packs sold in clear polystyrene cartons, according to a spokeswoman for the 141-store chain. Only a few of its stores offered the test packs, although all stores are stocked with clear-carton six-packs.

"We've gotten no complaints," said Tara Stewart, the spokeswoman, at the time of the test. "We're doing it to see if it's reducing breakage. That's where most breakage comes from, when [consumers] open the cartons."

At Richmond, Va.-based Ukrops, consumers can purchase natural eggs in 12-pack clear cartons, and organic eggs in see-through six-pack cartons, but the company doesn't plan to go any further with the option, due to the higher cost, a category manager told SN. If consumers have noticed the new packaging, they've kept quiet about it.

"I don't think they care," said Barry VanDyke, category manager for the frozen and dairy departments, adding he has not received any feedback from customers. As a service to customers, store associates who work the checkout lines open cartons and check for damaged eggs before consumers walk out of the stores, he said.

"Customers never leave the stores with broken eggs," he said.

A spokesman for Ovotherm International told SN his company is seeing the fastest growth in the 18-count egg packs. The six-pack containers are growing mainly in urban areas, preferred by singles and other small households that don't consume many eggs, he said.