If you missed the news about Metro’s new automated fresh distribution centre opening in Toronto on October 29, 2024, here’s a recap and why you should think about the implications for your enterprise. 

Metro, one of Canada’s top five retailers, has invested nearly a billion dollars over the last seven years to modernize how it moves product around Québec and Ontario. The new facility uses a case order machine to load pallets for shipping to Metro’s 277 Ontario stores, including Food Basics. It has metal racks that are 80-feet tall and are used for short-term storage. Automated cranes move cases up and down the racks.

The system uses information about incoming shipments and store orders to configure pallets that are efficient for transportation. The benefit is that each store receives exactly what it needs, reducing waste. 

This automated system should spark some curiosity in how it may affect your packaging, one of the most challenging components of your marketing spend. Often, we think of packaging as part of cost of goods, which is true, but it is also where you probably invest a lot of money to communicate with consumers and customers. When you add up the cost of packaging over 12 months, it is probably more than what you are spending on other sales and marketing initiatives.

It is a complicated process to develop and implement packaging, so you need to invest the time to get it right. Here are 10 different factors to consider when developing new packaging or assessing the effectiveness of your current packaging.

1. Communicate your value proposition

Your packaging needs to communicate the value proposition to your target market. We see many products that focus on the features of the product but what really drives consumers to buy are benefits. Example, the feature of compostable packaging allows the consumer to reduce plastic packaging waste. 

These benefits can be a challenge to communicate in a tiny space but when you can achieve this, the messaging is powerful.

2. Stand out on the shelf

Consumers make the decision to buy in the store, at the shelf. Your packaging has to stand out and include colours that resonate with your target market. When you are in the design phase, take the mock-ups to the store and put them on the shelf. Stand back and take a look. Do they jump out at you and deliver the message you need? Some designs look great on a computer screen or even in your office, but they do not work in the retail environment under different lighting.

3. Minimize damages or shrink

The last thing you want is to produce a product, get it packed and then see it bruised or damaged on the store shelf or in the consumer’s home. We know retailers and consumers are both focused on getting the most from what they buy. Retailers call it shrink and consumers think of it as food waste. Your packaging should protect the integrity of your product through the entire journey. If you have some unique attributes in your packaging to protect the product, share these with customers and consumers.

4. The most cost-effective solution

There is no doubt most packaging is expensive. You probably have a few options to consider with different prices. You need to consider each option and the value that increased costs will deliver to customers and consumers. People are more focused on prices, so you need to ensure if you are using a more expensive option that there will be a return on your investment. This is probably one of the most challenging aspects of packaging design.

5. Regulatory compliance

In Canada, we have lots of regulations that impact packaging. From font sizes to required components to grades to bilingual language, there are a lot of rules to understand and comply with. Your graphic designer should have the knowledge to ensure you are compliant. If they do not, you will need to find someone who does have this skillset. Definitely, you do not want to print a run of packaging that is non-compliant. Ouch! Retailers expect compliant packaging before ever seeing the product. 

6. Maximize shelf life and fridge life

A packaging solution that delivers more shelf life on your products for customers and consumers can be the difference. The longer the retailer has to sell the product, the better. Despite modern, efficient distribution networks it takes time to get products through the network and into the store. There are many benefits when you can make the claim your product has a shelf life that is 20 per cent longer than other products in the category. This will also have a positive impact on your repeat purchases from consumers. When they see a product performs well in their fridge or fruit bowl, they will be more likely to buy again next time.

7. Comply with customer’s distribution requirements

Metro, as mentioned, and other retailers are changing how they move products through their automated distribution networks. Talk to retailers about their future plans. Perhaps there are things you should consider in your next packaging refresh to ensure your products move through these automated networks.

8. Consider the merchandising fixtures in store

Your product needs to stand out on the shelf and it also must be the right size and shape for the merchandising units your customers are using in store. These can change. Visit new models of store formats and regularly ask the question if there are any changes to merchandising philosophy or fixtures.

9. Sustainability still matters

There is more focus on price right now, but consumers and retailers are still looking for more sustainable solutions and regulators are forcing the change. Consider the options but also the impact on your packing facility, the cost and the durability. Sometimes new compostable options will deliver and for other products, it is a real challenge.

10. Functionality for consumers and customers

Your packaging needs to be easy for consumers to open, reseal if possible and fit within their kitchen. You also need your customers to find your products easy to use. One big consideration here is scanning the bar code. Before you print any packaging take the mock-up to the store to ensure it scans properly.

Packaging is an opportunity and a challenge. A great package can make the difference, especially when you can deliver on all 10 factors.