Progressive Grocer

AUG 2015

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78 | Progressive Grocer | Ahead of What's Next | August 2015 Refrigerated & Frozen Eggs and Whole Foods) rose 4.2 percent over the 52 weeks ending June 14, 2015, to reach more than $92 mil- lion. Sales of eggs with a pasture-raised claim surged 82.1 percent in that same time frame to reach nearly $26 million. Retailers, for their part, are cracking open a new market — pun intended — with organic eggs. According to Nielsen research, sales of organic eggs rose 19.1 percent from 2013 to 2014, while SPINS reports that sales of organic eggs (with 70- plus percent organic content) climbed 27.3 percent to more than $517 million, and sales of eggs with organic and free-range/pastured claims increased 11.1 percent to more than $73 million. Within the overall egg category, many brands of specialty eggs, including cage-free and free-range product, have experienced sales spikes. In its retail tracking, IRI fnds that sales of eggs from the Pete & Gerry's brand of natural eggs rose more than 61 percent in the past year, while sales of Great Day Farms fresh eggs are up 76 percent. At the Happy Egg Co., Wagstaf likewise ac- knowledges burgeoning business. "T e purchasing of eggs from more humanely raised hens, including free-range, has grown by a massive 57 percent dur- ing the last 52 weeks," he notes. "Te Happy Egg Co. has invested heavily in production capacity to meet this increase in demand and ensure an unin- terrupted supply to its retail customers." Wagstaf projects even further expansion. "We do expect this interest to become the standard by which all egg production will be shopped," he observes. "We are beginning to see how consumer purchasing habits have changed dramatically in such a short period of time, and more families are becoming concerned as to how their food is sourced. As it stands, cage-free will become the replacement for caged over the next fve to 10 years, and free- range will be the gold standard for animal welfare and quality egg production." Brown eggs, meanwhile, are catching consumer attention, too, with sales rising 14.4 percent from Cage-free will become the replacement for caged over the next five to 10 years, and free-range will be the gold standard for animal welfare and quality egg production." —David Wagstaff, The Happy Egg Co. Talking with Eric Frank President, Tosca that our advanced reusable container drives effciencies throughout the entire supply chain, resulting in substantial business benefts and a better overall customer experience. PG: With the recent Avian Infuenza outbreak, what impact can RPCs have on this issue? EF: With dramatically less supply and mounting prices, implementing safeguards to keep eggs as fresh and as protected as possible is more critical than ever before. One way this can be accomplished is by using RPCs. The signifcant reduction in shrink allows our customers to protect their Progressive Grocer: Reusable Plastic Containers (RPCs) for eggs are a relatively new packaging alternative to corrugated. Why was the container introduced? Eric Frank: Reusable containers are an established packaging solution in Europe and have proven to be a better packag- ing alternative for most perishable items. Eggs are one of the most fragile items in a grocery store, and many are damaged long before they even make it to the customer's shopping cart, creating substantial losses for retailers. To address this problem, a prominent grocery retailer asked Tosca to develop a packaging and supply chain solution for this issue. PG: What is the value of reusable containers? EF: The egg RPC's strong construction and protective features provide a much more durable shipping platform, reducing mark- downs by 50%. And, our unique one-step SmartWall™ design also simplifes the re- stocking process for store associates, when the RPC is used on display. We're thrilled investments and eliminate unnecessary food waste. The RPC also delivers maxi- mum ventilation cooling eggs in 1 day to the required 45°F temperature versus 6 days in a corrugated box. The Tosca RPC enables suppliers and retailers to safely transport eggs from farm to fork while minimizing markdowns. PG: If a retailer or supplier has not used reusable containers before, how would they transition from a one-way package to a reusable solution? EF: Packaging is a critical component of the supply chain, which is why Tosca built the Supply Chain Optimization Model. This comprehensive tool allows users to under- stand all facets of a packaging conversion – before making a single change. We've proven the effciencies of RPCs for the perimeter of the grocery store with produce, case-ready meat, poultry & most recently with eggs. Reusable containers provide an opportunity to take your supply chain to a better place which not only creates value for you, but more importantly, for your customers. A D V E R T O R I A L

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