Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBooks
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • Newsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
CommentaryPackaging Material

Multipacks increasingly impacting beverage operations

Customized machinery might not solve long-term challenges

By John Peter Koss
February 15, 2017

Which beverage package will consumers buy, under what conditions, when will they buy, how many will they buy and why will a purchase occur? These types of challenging questions confront most sales and marketing managers as they attempt to maximize sales and profit under many variable conditions.

Markets, demographics and consumer tastes constantly are in a state of flux as well. Because these highly variable, and often times unknown, factors are changing in magnitude, content and according to geographic environments, the age-old reference “packaging sells” must be addressed when focusing on the multipack movement, such as when it began, how it evolved into today’s massive array of SKUs and what impacts it has on the supply chain.

That is why the evolution is being referred to as a “movement,” which is mainly created by the consumer marketplace and primarily dictated by geographic and demographic-related lifestyles. Aging populations change their lifestyles (business, academic and recreational) in almost every geographic area, which studies have indicated also alters eating and drinking tastes and consumption.

From a marketing perspective, it is a complex algorithm to determine the specific beverage package a customer will buy under any given set of conditions and in which channels they are shopping. Today’s consumer demands a wide package range from which to choose to make his or her purchase and does so depending on how the beverage will be served and where.

Historically, the movement from full 24-container cases as the normal selling unit began more than 50 years ago. Full cases became difficult to handle, bottles and board or wooden cases had to be returned, and physical storage space was a problem at both retail and supplier levels.

Therefore, the term “convenience packaging” came to life and, during the past five decades, has evolved into a multipack movement that has attempted to meet every marketing environment requirement imaginable. It is recognized that “you must satisfy the customer.”

However, multipacks (board wraps, shrink film, plastic carriers, baskets and more), in reality, are added cost conveniences, easy to handle, store, transport and dispose of or recycle. Yet, in the highly competitive beverage market, cost justifications are necessary to ensure that the package not only will sell, but also will provide a return on investment.

From an operations perspective, multipack configurations can require customized and/or specialized equipment to produce the package. Most packaging machinery manufacturers do not have crystal balls to foresee what standard machine they should produce for a universal multipack with a plethora of adjustments.

The re-tooling of machinery and equipment can become cost intensive due to lack of flexibility for changeovers or complete machine replacement. The extreme, but not uncommon, example of this situation is having a machine manufacturer customize a machine because no standard machine is available for the package as designed.   

In addition to providing machinery that will produce a specific multipack, the prohibitive cost of customizing machines with the flexibility of handling a variety of multipacks could make a package project untenable.

Projecting the future of multipacks is an interesting study because the trend, which already is occurring, has been for parent companies (franchisors) to transfer production capability to new or combined franchisees, and in some cases to contract packers. This could alter the approach to packaging and investment in limited-capability equipment.

In addition, one of the largest impacts resulting from production responsibility transfer is that it could create an entirely different marketing viewpoint from the parent companies because an independent franchisee or contract production people might not be willing to, or financially capable of, funding multipack production infrastructure on a short-term basis.

Longevity in multipacks is critical to the investment involved and the markets served in any given geographical area; therefore, from an operations perspective, whether it be a franchise or a contract packer, any algorithm constructed for multipack investment must consider multipack life as an important part of the equation.

Observation and experience have logically indicated that the “life” factor is more important than has heretofore been considered. And operationally, customized multipack equipment listed by used equipment vendors becomes evidence to the serious life and cost justification of those multipacks neatly stacked on supermarket gondolas or around the cooler on convenience store floors.

The bottom line for multipacks is the same for all packaging, regardless of the cost justification, sales volume and realistic profit margins. When changes are short term, a domino effect will perpetuate throughout the supply chain.

KEYWORDS: case packers multi-packs supply chain

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

John peter koss beverage industry

John Peter Koss, the beverage operations advisor, has more than 60 years of beverage industry experience, was an operations executive for a Fortune 500 company and can be contacted at bossole2@gmail.com.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Beverage News
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
Manage My Account
  • Newsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Woman in Coat
    Sponsored byApplied Food Sciences

    Opportunity for Hormone Support in Functional Beverages

Popular Stories

Red Bull Advent Calendar

Red Bull releases Advent Calendar in US

Beverage News

RNDC announces sudden passing of Bob Hendrickson

Coca-Cola Holiday Creamy Vanilla

Coca-Cola unveils limited-edition flavor, holiday campaign

making connections webinar

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • The conditions and applications impacting utilities in beverage operations

    See More
  • Training increasingly important with changing operations

    See More
  • Collaboration efforts vital to beverage facility operations

    See More

Related Products

See More Products
  • trends.jpg

    Trends in Beverage Packaging 1st Edition

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • Newsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing