PMA FRESH SUMMIT '99 1999-11-08 (2)

ROBERT VOSBURGH

ATLANTA -- New standard configurations for corrugated-cardboard produce boxes promise to make them more competitive against returnable plastic containers, which have impressed some retailers with their long-term resilience and consumer acceptance, according to paper advocates who spoke to a packed room at Fresh Summit '99 here, the annual convention of the Produce Marketing Association, Newark, Del.

The new footprints were established as a voluntary measure by the Fibre Box Association, Rolling Meadows, Ill., after an intense development phase that began only nine months ago. The modularity standards were established with assistance from the American Forest and Paper Association, Washington, and member companies.

Two footprints have been unveiled, based on dimensions favored by retailers. Officials said that the supermarket industry will determine which box dimension ultimately takes precedence. Both, however, will fit on existing pallets typically used in produce -- the 48-inch by 40-inch platforms recognized by the Grocery Manufacturers of America, Washington, as well as the 1,200-millimeter by 1,000-millimeter "Euro" variety.

The FBA's new footprints include a 6-12 down system, with full- and half-case nominal dimensions of 20 inches by 16 inches and 16 inches by 10 inches, respectively. The alternate 5-10 down system uses 24-inch by 16-inch and 16-inch by 12-inch nominal cases. "Down" refers to the maximum number of containers of a certain footprint that can be placed on a single layer on a standard pallet.

But, unlike RPCs, the footprints do not include a standard height. Corrugated supporters said this will help all parties throughout the distribution channel optimize cube use, product protection and display ability. Additionally, the new specifications include options for stacking tabs/tab receptacles, as well as building in a removable lid.

"The new standards will offer mixed-load interstackability, display readiness and optimal pallet fit, regardless of the pallet manufacturer," said Jim Keller, vice president and general manager for containerboard packaging and recycling at Weyerhaeuser Co., Tacoma, Wash., who added that the new standards "make it possible to stack large numbers of full- and half-cases on a single pallet without their caving in or toppling."

Keller also reinforced corrugated's contribution to the bottom line through recycling, calling it the most environmentally friendly produce containers for everyone in the distribution chain.

"Corrugated is the ultimate reusable container -- every time we recycle a corrugated box, it actually comes back as a new container in the distribution system."

Representing RPCs, Jim Vangelos, national sales manager of produce for Chep USA, Costa Mesa, Calif., said that RPCs have "opened up a Pandora's box. They've made everybody look at their own operations, and evaluate their own efficiencies."

In this era of consolidation, RPCs are compatible with retailer demands for reductions in product shrink, supply-chain management and the trend toward globalization. RPCs also remove the recycling component from the operational side, since they are reusable, Vangelos said. Corrugated's contribution to a retailer's profits depends on several variables, such as eliminating waxed boxes, used to hold wet items on ice; and the fickle market for pulp.

"Approximately 9.9 million tons [of corrugated still] ended up in our solid-waste system in 1997," he said, citing the most recent figures available. In a lot of instances, the benefits of recycling are negated because the price fluctuates, and "there are times when it doesn't even benefit certain components of the industry to recycle."

Chep, one of several pallet companies that urged retailers to try RPCs several years ago, caught the ear of Wal-Mart, Bentonville, Ark., which now uses the containers in 80 stores and all 10 of its distribution centers, according to Bruce Peterson, vice president of perishables. Next year, another 120 stores are due to be converted, and new stores are opening with RPC systems in place, he said.

Wal-Mart saw plastic containers as the next logical step in its efforts to reconcile growth and advances in technology with store-level efficiencies and savings. The chain started tests in 1996, and sought answers to four questions:

Could products be shipped in a viable manner from source to receiver while protecting product?

Could RPCs work effectively through the distribution system?

Could an RPC get the product to store level, and be returned through the distribution system?

Would Wal-Mart customers accept them?

"At the end of the day, whatever system you employ to convey products to the end-user, the consumer has to recognize it as a value," he said.

Wal-Mart's tests indicated high passing grades on all tasks. Container shrink remained under 2% through nine separate audits; management and associates expressed a preference for the plastic because it handled effectively and created better pallets; and customers expressed their enthusiasm by purchasing more products.

Peterson acknowledged that there remain some drawbacks to RPCs, most notably the need for additional sizes beyond the standard 40-centimeter by 60-centimeter footprint, and finding grower/shippers who are either willing or able to set up field packing systems that accommodate RPCs. Nevertheless, the retailer is pressing on with RPC pilot studies in the meat department, and also with eggs.

One retailer who has decided to stay with corrugated cardboard is ShopRite Supermarkets, operated by Wakefern Food Corp., Elizabeth, N.J. Tim Vogel, environmental-affairs administrator for the chain, said that using cardboard better fulfills the chain's civic commitment and corporate image.

"[There's an] extraordinary recovery rate of corrugated containers. They provide the retailer with cash value for recycling; supply the paper industry with needed fiber, and contribute to the nation's environmental goals," he said.