In the current economic climate, food producers are facing a constant battle to keep their costs down and maintain their margins, and the liquid dairy industry in Mexico is no exception.
Although Mexico’s liquid dairy products sector has shown steady growth since 2006, with a compound annual growth rate (CAGR) of 0.7% from 2006 to 2009, when sales reached 7.44bn litres, chilled products haven’t fared so well. In fact, during the same period, CAGR declined 0.8% for chilled products, decreasing from 3.26bn litres in 2006 to 3.18bn litres in 2009.
“The recession was causing negative growth in the pasteurised milk market,” says Grupo Alpura marketing director Felipe Rios Castelazo. “Our volumes were decreasing faster than the category. We had to find a way to reverse the trend.”
In order to tackle the decreasing demand for chilled premium dairy products, Grupo Alpura looked for a new way to appeal to consumers. The solution was Tetra Top One Step Opening – a Tetra Pak carton-based bottle that’s easy to grip, open, reseal and recycle, and has a tamper-proof device built into the cap.
“In just six months, from April to November 2009, our sales grew by 28% in Mexico City and 23% nationwide,” says Rios Castelazo. “Retailers and consumers love Tetra Top One Step Opening. This new package has been key to refresh our brand, turning it into one that’s much more modern and appealing.
“Consumers are always looking for something new. And our research told us that they wanted more modern and convenient packages. Tetra Top One Step Opening was the obvious choice.”
Replacing one packaging system with an entirely new one is always a challenge. Every day, Grupo Alpura has to process, package and deliver three million litres of high-quality dairy products to the trade across Mexico in less than 24 hours after production.
“Anything that delays this continuous supply chain, even for a few hours, is a serious matter,” says Rios Castelazo, noting that shutting down production wasn’t an option.
To make the switch from its three gable-top lines to three Tetra Top lines, Grupo Alpura decided to change one machine at a time on a city-by-city basis, starting with Cuernavaca (which has a good distribution network) and finishing with the most challenging, Mexico City.
The initial goal was to increase sales of fresh milk by 15%. Since replacing the gable-top systems with Tetra Top, results exceed expectations. Overall sales in the chilled segment grew by 23%, and in Mexico City sales increased by 28%, almost doubling the original target.
Tetra Top is a roll-fed carton package with a plastic top, which is formed in the filling machine thanks to the Tetra Pak patented Injection Moulding Concept technology. Tetra Top One Step Opening packages are filled in the TT/3 XH IC machine with the new integrated capping (IC) module. The TT/3 machine enables good production flexibility, simultaneously filling different products and a 9,000 package/hour two-line filling capacity.
“The flexibility of the machine means we can fill different sizes and even different products on each line in one go,” says Rios Castelazo. “That gives us the ability to evaluate how to enter different market segments. We already have the machine, so we can use one of the lines to try out other market segments.”
Tetra Top One Step Opening also offers environmental advantages. Designed to use the minimum amount of raw material needed for the package’s functionality and food safety requirements, the Tetra Top One Step Opening is mainly made from wood fibres, a material coming from a natural and renewable source – up to 66%, depending on package size and material configuration. Once it’s empty, the consumer removes the cap, folds the carton flat and recycles it. The rigid plastic top improves its ‘stackability’ and eliminates the need for a full wraparound box, reducing secondary packaging costs.
On the shelf, the package’s unique shape makes Tetra Top One Step Opening an excellent vehicle for branding. The sleeve of the package is 100% printable and provides unlimited opportunities for printing on the entire package surface, optimising the brand presentation and enabling the package to stand out on the shelf.
Geoff Platt is editor of Dairy Innovation magazine. Subscribe here.
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