In the News

Emerging Brands Summit Aims to Serve Needs of Start-up CPGs

MIKE PROKOPEAK

SENIOR DIRECTOR OF CONTENT AND BRAND GROWTH, PMMI MEDIA GROUP

FOR MANY ENTREPRENEURS, the idea is the easy part. Whether it comes via a fl ash of inspiration or is the product of years of dedication to a craft, the product idea is why they jump out of bed in the morning ready to go.

Taking that idea and then building a business that can scale is where it gets hard. That’s where emerging brands can lose focus and get lost in the multitude of tasks required to be successful.

“It’s just endless,” said Cathy Bacon, owner of Freedom Foods, a Randolph, Vt., co-packing company, during the opening panel discussion at the Emerging Brands Summit that took place during this year’s PACK EXPO International in Chicago.

The summit, a daylong series of educational sessions and networking opportunities, also served as the public debut for the Emerging Brands Alliance, a new online community for founders of start-up consumer packaged goods companies launched by PMMI Media Group, the publisher of ProFood World and sister brands Packaging World and Healthcare Packaging. The alliance provides a forum where brand owners can access

PHOTO COURTESY OF PMMI

Co-manufacturers and co-packers explain how start-ups can best work with them during the opening panel discussion at the Emerging Brands Summit.

Bimbo Investing Over $600 Million to Build 2 U.S. Facilities

Bimbo Bakeries USA is spending $430 million on a new Zanesville, Ohio, production facility, while Grupo Bimbo is investing over $200 million to build a site in Valdosta, Ga.

Utz Brands Names Howard Friedman as CEO

Utz Brands has announced Howard Friedman, currently COO of Post Holdings, will join the company as CEO and serve as a member of the Utz Board, e ective Dec. 15.

USDA Proposes Regulatory Framework to Reduce Salmonella

The USDA Food Safety and Inspection Service has released a proposed regulatory framework for a new strategy to control salmonella contamination in poultry products.

Kerry Launches Food Waste Estimator

The free tool enables food manufacturers to determine the fi nancial and environmental impact they can have, while tackling food security and reducing global food waste, by using shelf-life extension technology across their portfolios.

U.S. Department of Labor Seeks to Protect Food Processing Workers

Due to signifi cantly higher injury rates among food production workers in Illinois and Ohio, OSHA has begun an initial outreach phase of a Local Emphasis Program at over 1,400 manufacturing facilities in the two states.

educational content, network with one another, and access resources, including an online supplier directory.

“Now more than ever, brands need support and adequate resources to keep up with the rapidly growing demands they are facing,” said Kim Overstreet, director of the Emerging Brands Alliance.

Co-manufacturers and co-packers can help

One place that many emerging brands stumble is in manufacturing and packaging their products. It can be fiendishly complicated, extremely capitalintensive and, perhaps more importantly, can pull founders away from focusing on the fundamental work of marketing and branding their product.

That’s where co-manufacturers and co-packagers can help fill the gap by providing start-up consumer packaged goods (CPG) companies with a production facility for hire. Co-manufacturing and co-packing use third parties to manufacture and package a product. It’s a way for emerging brands to speed their time to market, reduce their cost, and remove a level of risk from the capital equation. Working with a co-manufacturer allows businesses to put their resources into building their market and brand, not in figuring out how to manufacture it.

“I can say, without fail, those companies that build their own facility are out of business,” Bacon said.

That’s not to say that co-manufacturers are a panacea for the growing pains a start-up company can face. Relationships are key to a successful CPG/co-manufacturing partnership.

Emerging Brands Grant Recipients Named

Three start-up CPGs were awarded an Emerging Brands Grant during the Emerging Brand Summit at PACK EXPO International.

The winners are: • Crave Natural LLC (Yishi Foods) • Healthy Oceans Pescavore • Sarilla

The grant program is designed to help growing CPG companies scale their operations by providing funds for operational expenses. Grants can be used to enable a variety of projects and resources, such as prototype creation, market research, legal and consultant services, creation of pitch materials for investors, exhibiting fees, custom packaging for e-commerce, and more.

To be eligible for a grant, applicants must produce and distribute a packaged consumer product in the U.S. and/or Canada and have annual revenues of at least $100,000 but not more than $20 million.

There were 51 grant finalists for the 2022 award.

Focus on relationships in co-manufacturing and co-packaging

Co-manufacturers and co-packagers are busy, warned panel moderator Carl Melville, consultant and managing partner at The Melville Group. That’s why it’s especially important that emerging brands do their homework before approaching them to avoid wasting their time.

Be clear about your goals and what you need, said DeAnn Devenney, director of sales and marketing at Elkhart, Ind.-based Maverick Packaging. If the co-manufacturer feels like they have to do a lot of handholding, then it’s not going to be a great fit. That’s not to say that brands need to have all the answers; rather, they should have a clear idea of how they envision a co-man or copacker can fit into their business plan.

“The more information you bring to the table when you first start talking to co-mans, the better that opportunity is going to look,” Devenney said. “As much as you can bring to the table, that’s going to help build a relationship out of the gate.”

Transparency is key to building a successful relationship

From there, it’s just like any relationship. It takes continued e ort from both parties to deliver results. “If you are growing your brand, everyone has to roll their sleeves up,” Bacon said. “Be prepared to work. Just because you’re handing it o to a copacker doesn’t mean you’re walking away from it.”

Transparency, honesty, and communication are essential. Not only can they help work through the inevitable challenges that arise, but they can also be the source of new ideas, said Leslie Dahlin, director of finance at GreenSeed Contract Packaging. Test days and onboarding processes are a great place to work through problems and build relationships.

“Really getting to know the people you’re working with is key,” she said.

It comes down to sharing your goals and objectives, so your co-man or co-packer can get on board with where you’re trying to go.

“The co-packing relationship is personal,” Bacon said. “If you grow, we grow. We all grow together.”

The Top Trends Driving Food and Beverage

AARON HAND | EDITOR-IN-CHIEF

INNOVA MARKET INSIGHTS has taken its annual dive into the key trends driving consumer behavior in the food and beverage industry. Though some themes might repeat from year to year, there are several trends veering increasingly toward health, sustainability, and digital media.

In the climate we’ve been in lately, it’s not necessarily an easy market to figure out, notes Lu Ann Williams, co-founder and global insights director for the Netherlands-based market research firm. “We’re coming after two very di cult years,” she says. “This year may be even more di cult than previous years to figure out what’s coming.”

1Rede ning value

We’ve seen it plenty of times, and Innova has found it to be true in its examination of the food and beverage industry. “What consumers value is not necessarily what they’re paying more for,” Williams says. So where are consumers willing to draw the line? Innova found that the top answers were fresh products, locally produced products, and functional ingredients that boost physical health.

2Affordable nutrition

Consumers are certainly seeing the e ects of inflation when they visit their local grocery stores. It’s not easy to get the right kind of nourishment at the right price, making a ordable nutrition an untapped opportunity, according to Williams. Data shows a big swing upwards in undernourishment, even in richer parts of the world.

3Generational push

Though there are regional di erences in what consumers want, di erences show up more generationally. “Younger consumers are saying,

‘Companies should be listening to us,’” Williams says. “The big takeaway is that there’s a new era of two-way conversation between consumers and branded manufacturers.”

4Plant-based: Unlocking a new narrative

This is the sixth or seventh year that Innova has listed plant-based among its Top 10 trends, Williams notes. Though the growth has been slowing in this market, she is still very positive about its prospects. Improved flavor and texture will go a long way to convincing consumers that this is the right direction, but Gen Z is already more on board than their elders.

5Farming the future

New farming systems are improving quality and sustainability, and are leading to a renewed consumer interest in their food sources. There’s been a lot more communication around things like regenerative agriculture, plant breeding, vertical farming, and other systems, Williams says.

6Quick quality

“Convenience and finding products that fit into our busy lifestyle have been popular for a long time,” Williams says. “But now it has to bring health benefits as well.” When asked about what they’re looking for in meal kits, cost, freshness, and health aspects all factored high—convenience, less than it used to.

7Devouring digital

Brands are starting to embrace the full potential of consumer connections by enhancing real life with digital experiences, Williams notes. “You can’t ignore the impact of digital media for what’s happening in food,” she says. “Digital technologies are driving changes in personal nutrition.”

8Revenge spending

Consumers are facing very high prices for everything, and many of them have limited budgets, making food in some cases a luxury. The flip side of that is that consumers are showing a huge interest in limited edition items that feel like an indulgence. “It can be a really quick win,”

Williams advises. “Little luxuries that bring you quick pleasure.”

9Unpuzzle health

There’s been a growing level of conversation around labeling on products, an opportunity for brands to educate and deliver on health. “Nothing drives a trend faster than a government,” Williams says. “Governments will try to encourage food companies to do better here.” 10Positively imperfect Brands need to embrace the fact that they’re not perfect and be open about the challenges they’re facing in trying to address sustainability, health, and other hot topics. “Consumers feel more involved when a brand is honest about it,”

Williams says.

PACK EXPO International Attendance Surpasses Last Edition

BACK AFTER FOUR YEARS, the industry came together in a big way at PACK EXPO International, Oct. 23-26. The show convened over 44,000 attendees, surpassing the 2018 event. With 2,200 exhibitors showcasing groundbreaking packaging and processing innovations over 1.2 million net square feet at McCormick Place in Chicago, PACK EXPO International was the only time the entire industry came together this year.

The show opened its doors with the industry ready to do business after years of consistent growth, reported show owner and producer PMMI, The Association for Packaging and Processing Technologies. In 2019, the market for packaging machinery was $10.8 billion. This year, the industry broke the $15 billion mark, a growth of nearly 40%, according to PMMI’s State of the Industry U.S. Packaging Machinery report.

“The success of PACK EXPO is a testament to our industry’s continued growth as well as PMMI’s commitment to bringing the industry together to share cutting-edge innovations,” says Jim Pittas, president and CEO, PMMI. “No other event this year showcased so many end-to-end solutions, o ering attendees everything they need to compete in a changing marketplace.”

Industry growth translated into buyers coming in significant numbers, ready to see the latest packaging materials as well as technology in action.

“The show is very well attended. The end user base was eager to come back and see equipment in person,” says Je Kaplan, vice president of integrated systems for Hamrick Packaging Systems. “For our industry, the economy looks like it will be robust in 2023. Customers are acting on buying automation and not just talking about it.”

Improving operations, reaching sustainability goals, and checking out new innovations are just a few of drivers that brought consumer packaged goods (CPG) and life sciences companies to PACK EXPO International.

“We come to PACK EXPO to discover ways to enhance our operations, especially from a sustainability standpoint, says Alexander Clarke, quality engineer for Bath & Body Works. “We are looking for sustainable equipment, options for recyclability, and end-of-line customization.”

“I came to see the new solutions and what’s happened in the last few years. It’s great to travel to shows again and see the latest innovations. In particular, I noticed a lot of new equipment this year,” says Leroy Owens, research specialist, Proctor & Gamble.

The buzz on the show floor confirmed that exhibitors and attendees from companies of all sizes found a rewarding experience at the four-day event.

“We’re very happy to be back after four years. Monday was the best day at a tradeshow event ever,” says Mark Navin, vice president of sales for Spee-Dee Packaging Machinery. “Visitors at the booth had funded projects to discuss, and actual details for purchase.”

Sara M. Carrio, president of Pachitos Ice Cream, came to PACK EXPO International looking for critical solutions to improve her company’s operations. “We came to PACK EXPO to check out wrapping machinery, and we’ve already closed on about $30,000 worth of deals in our first day here.”

Jeremy Jones, global marketing director at Domino Amjet, prioritized PACK EXPO International as customers came ready to do business. “There were only genuine buyers with a project interest. PACK EXPO is back,” he says. “I’m from Europe, but the fact that I’ve flown to PACK EXPO in the U.S. shows the value of this event.”

A new range of offerings

Answering the need to come together, network, and see advances, PACK EXPO International 2022 o ered more show features than ever before, bringing value to all market segments.

A record-breaking Packaging and Processing Women’s Leadership Network (PPWLN) breakfast brought together nearly 1,000 professionals to hear Dawn Hudson, former chief marketing o cer at the National Football League and former president and CEO of Pepsi Cola North America, talk about her experiences in the workforce.

Developing the future packaging and processing workforce was a top priority at PACK EXPO International with the largest number of students in attendance in the history of the event. More than 1,500 students attended the show and participated in the opportunities to get students excited about careers in this industry. In addition to the prestigious Future Innovators Robotics Showcase, educational Amazing Packaging Race, and Students PACK the Expo programs, this year, six teams faced o in a new machine building PACK Challenge.

With robust educational o erings, the focus on developing our industry went beyond students. PACK EXPO International held more than 120 education sessions, beginning with the oneday Emerging Brands Summit, making its debut at the show. The education continued throughout the show on various on-floor stages, o ering educational sessions such as the Innovation Stage, Processing Innovation Stage, PACK to the Future stage, The Forum, and Reusable Packaging Learning Center.

Additionally, the PACK EXPO Association Partner Program connected attendees to leading associations from all segments of packaging and processing. This year’s program was the largest in PACK EXPO history with 50 partners.

“We would like to thank PMMI’s board of directors, our membership, exhibitors, and all attendees who supported PACK EXPO International and made this show a tremendous success,” says Laura Thompson, vice president of trade shows for PMMI.

Next up in the PACK EXPO portfolio is EXPO PACK Guadalajara, June 13-15, 2023, followed by PACK EXPO Las Vegas, Sept. 11-13, 2023, at the Las Vegas Convention Center.

PACK EXPO Southeast Debuts Spring 2025 in Atlanta

PACK EXPO SOUTHEAST will debut spring 2025 in Atlanta (March 10-12, Georgia World Congress Center), bringing packaging and processing machinery, materials, and technology all under one roof to a growing manufacturing corridor.

The newest show in the PACK EXPO portfolio, produced by PMMI, The Association for Packaging and Processing Technologies, will o er solutions for more than 40 vertical markets to address the packaging and processing needs of southeast manufacturers.

“This show represents a big opportunity to bring the industry together in a region of the country that is not currently served by a trade show focused on packaging and processing,” says Jim Pittas, president and CEO, PMMI. “PACK EXPO Southeast in Atlanta is the perfect location to focus on targeted opportunities in this robust market, which is home to some of the top manufacturing industries in the region.”

Located within driving distance of key manufacturing cities and a mere two-hour flight from 80% of the U.S. population, PACK EXPO Southeast will harness all the power of the PACK EXPO portfolio of trade shows, directed at the robust southeast market.

“PACK EXPO Southeast 2025 will provide a prime opportunity for exhibitors to reach a new, untapped customer base in this region,” says Laura Thompson, vice president, PMMI. “And attendees will have the chance to experience new kinds of machinery, materials, and other innovations live and in-person, while forging critical relationships with their peers and suppliers.”

As PACK EXPO East does for the northeast market, PACK EXPO Southeast will laser focus and target the southeast market and o er a depth and breadth of exhibits not provided by any other events in the region.

Request information and learn more at packexposoutheast.com, or contact Wendy Moore, PMMI trade show sales manager, at 571-612-3185 or sales@pmmi.org.

Exhibitor booth sales for PACK EXPO Southeast 2025 start in September 2023. Attendee registration will open during PACK EXPO International 2024.

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