Walmart: Sustainable Packaging About More Than Size

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

August 30, 2011

Walmart’s sustainable packaging initiatives involve more than simply reducing packaging size, according to Ron Sasine, the retailer’s senior director of packaging.

Ron Sasine

“We're looking at the entire life cycle of packaging and knowing that improvement can take many forms,” he wrote in an article for Treehugger, noting the improvements fall into one or several of three key areas – rethinking the product, process and/or presentation.

An example he gave for rethinking the product was when Walmart began selling only concentrated liquid laundry detergent several years ago “By urging our suppliers to reexamine their products' formulation, we eliminated hundreds of millions of pounds of packaging and saved natural resources,” he wrote.

Rethinking how items are stacked and shipped is one way to rethink processes. “By simply stacking Galaxy box fans differently on a shipping pallet, we saw annual savings of 10,000 pounds of plastic and 113 fewer trucks on the road, reducing diesel use by 12,600 gallons and freight costs by $150,000.”

Rethinking product presentation and packaging can dramatically change a customer’s experience and reduce waste. “By working directly with our large toy suppliers, Walmart has been able to eliminate the frustrating wire ties used to secure toys in packaging. This effort will keep more than a billion feet of wire out of the landfill annually.”

And these are not just changes taking place at Walmart, Sasine wrote. “As we work with suppliers to find better options, those improvements are showing up on the shelves of other retailers, increasing the impact we can have beyond our own ‘four walls.’"

Walmart’s goal is to reduce packaging by 5 percent by 2013, using a 2008 baseline. “We're working to ensure that improved packaging still protects the products we sell, and we're working with our customers and members to gain their acceptance,” Sasine wrote. “Some packaging changes have taken longer for customers to understand and endorse.”

Some of the largest stumbling blocks for suppliers at first was a reluctance to change processes and/or invest in new equipment. “However, when they realized how serious we were about packaging and that we would work with them and reward them for better packaging, they became very enthusiastic about the effect they can have on the industry by, well, thinking outside the box.”

Walmart's private label Oak Leaf wine is a good example of how better packaging benefits the entire supply chain. “The manufacturer found a way to reduce the amount of glass used in the bottle by changing the design of the neck and reducing the punt (the dimple on the bottom of a wine bottle),” Sasine wrote. In addition to reducing packaging weight by 8 million pounds, carbon dioxide by 3,100 tons and taking 280 trucks off the road, these simple changes reduced the price of Oak Leaf by 20 cents per bottle.”

The next phase in the company’s sustainable packaging initiative is more difficult and complex and requires new packaging equipment and deeper partnership with suppliers,” according to Sasine.

“Working toward more sustainable packaging isn't optional; it's a priority and it's a large part of our business plan. For suppliers it's a chance to differentiate themselves from their competitors,” he wrote. “For Walmart it's an opportunity to provide more value to our customers, to be innovative, think creatively and make changes that can improve the retail industry.”

Read These Related Articles:

• Walmart's Sam's Club to Keynote the Innovation & Marketing Summit
• REI Revamps Sustainable Packaging Work and Goals
• The Store Brands Sustainable Packaging Conundrum
• Sam's Club and Walmart Integrate Packaging Innovation and Sustainability
• Store Brands Sustainable Packaging Seminar Announced

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases