Consumers’ growing interest in products that stand out, whether for health reasons, a desire to try new tastes and flavours, or to experience an entirely new type of product, has created a range of emerging business opportunities in chilled product categories. So how can producers optimise their chances of capitalising on this growing interest while considering consumers’ mounting sustainability concerns and achieving efficient, cost-effective distribution? Our experts break down the challenges around chilled products, and how best to solve them.

How to add value in chilled product categories

Should producers think of adding value primarily in terms of a higher price tag, or what the product actually does for consumers? Leopoldo Ponce de Leon, Director Business Stream Tetra Top Solutions at Tetra Pak, emphasises the latter, particularly functionality.

“Premiumness caters to consumers’ specific needs or preferences, and provides something they cannot get elsewhere,” he says. “Premium products commonly have a very specific audience in mind, and make their benefits crystal clear. The ultimate goal is to trigger an emotional response and a willingness to pay a higher price.”

‘Premium’ in chilled product categories can have several meanings, and producers can choose what aspects they should endow their product with to achieve this concept of premiumness. For example, you could look at nutritional benefits, such as fortifying products with protein or other healthy, in-vogue ingredients. But it can also cover socio-economic aspects, such as supporting consumers' sense of identity or values with suitable packaging.

“Premium products commonly have a very specific audience in mind, and make their benefits crystal clear.”

 

Leopoldo Ponce de Leon, Director Business Stream Tetra Top Solutions

Leopoldo Ponce de Leon, Director Business Stream Tetra Top Solutions

For Ponce de Leon, successful premium product development in chilled categories is also about getting the match between product components right.

“We often see producers get really excited about stylish, more expensive packaging, and they want to fill it with a certain product,” he says. “But then, when we look at the details – such as pricing – we see that a more appropriate solution exists. So, we always advise finding the right fit between product category, product needs, and packaging.”

“There is also a risk of being too locked into a premium mindset,” he adds. “Sometimes, when you analyse consumer data and market trends, the best solution might not be premium at all.”

But it can also work the other way around. By exploring local market conditions, consumer insights, and processing alternatives, a straightforward idea like adding chocolate-flavoured milk to a chilled product portfolio can be far more relevant when it comes to premium product positioning.

“This ties into knowing consumers' preferences in different markets,” says Ponce de Leon. “For example, a high-viscosity product sometimes signals a richer, more nutritious product. But in some markets, it represents a high-fat content that makes the product hard to digest.”

There are, however, some broad trends and long-standing premium factors that consumers recognise. Adding particles, bits of fruits, and cereals can strengthen a product’s health positioning while elevating its flavour and texture. “Then we have the ingredients themselves, which consumers expect to be of high quality in premium products,” he adds. 

So with milk, for example, there has been a rise in demand for lactose-free milk, organic milk, and milk that has been enriched with different ingredients, such as vitamins or minerals.

When it comes to the premiumness of your package, there are many, many aspects to consider. “All the different steps of the journey the consumer takes with the package can impact and influence their perception of premiumness,” says Anna Larsson, Business Insights Leader at Tetra Pak. “You need to consider things like: where and when will it be consumed; what are the personal values of your target consumer; local market context and perceptions; design conventions in your category; and current trends and preferences in packaging.”

As an example, she notes how in some Asian markets, a sense of premiumness is aided by a high shine, waxy look for packages (it denotes protection and being hygienic), whereas in some Western markets, unfinished paperboard in neutral tones with plain script will do the same. And this goes for design, and how much “novelty” or variation you employ, too; whether you opt for bold colours and material affects, like holographic effects, or more low key fonts, finishes, and imagery, will depend on the product category and the consumption occasion.

“There are no ‘one size fits all’ solutions here,” adds Larsson. “So we give our customers different tools to help them play around with all aspects of colour, material finish, special effects, and design. It’s like a palette you can play with, where our consumer research can help and guide you with regards to your desired elements for, as an example, specific occasions.”

For many, the sustainability of a product or package can be just as, or more, appealing as its premiumness. And often, consumer concerns and expectations revolve around packaging.

“New legislation and constantly evolving ideas around sustainable packaging mean developments are moving fast,” says Johan Holgård, Director Business Stream Tetra Rex Solutions. “For our customers and consumers, this creates a number of challenges when it comes to sustainable packaging – there is much for producers to consider.”

“There’s the packages’ carbon footprint and the need for circularity, including the recycling and re-usage of materials, the sourcing of materials, and renewability,” he adds. “So, addressing sustainability in packaging can mean many things.”  

According to Holgård, producers must consider these complexities when implementing sustainable packaging solutions. That also means acknowledging that whatever package they choose will inevitably have some environmental impact – therefore, producers should refrain from using climate-friendly buzzwords or overly bold statements. Not only do they come across as being exaggerated or insincere, but they could also lead to accusations of greenwashing or even legal issues.

“Plant-based plastic is a good example,” says Holgård. “This material is very important for breaking fossil dependency and reducing climate impact. However, the focus on reducing littering and increasing recycling rates is just as high for plant-based plastics as for fossil-based equivalents.”

“Addressing sustainability in packaging can mean many things - the need for circularity, including the recycling and re-usage of materials, the sourcing of materials, and renewability.”

Johan Holgård, Director Business Stream Tetra Rex Solutions

 

Johan Holgård, Director Business Stream Tetra Rex Solutions

The best way to approach sustainable packaging, Holgård emphasises, is to truly understand the full impact on the value chain and take a position based on relevant claims.

“Producers should not immediately accept statements such as ‘100% renewable materials’ – that can mean anything. So, ensure you ask the right questions to avoid unpleasant surprises later on: How has it been harvested? From what raw material? What is the impact on local communities? And knowing whether the package will be exclusively plant-based or mixed with fossil-based materials is also important.”

Given chilled products' temperature and storing requirements, are there any inevitable trade-offs between sustainability, consumer expectations, and safe packaging?

“Protecting and keeping the product safe and at an optimal quality should always be the top priority”, says Holgård. “However, trade-offs between sustainability and package functionality are very common, so producers must be smart when communicating the reasons behind their specific packaging choices to consumers.”

When it comes to distribution, most people immediately think of transportation. But Agnieszka Korczynska, Manager Business Stream Tetra Brik Solutions at Tetra Pak, emphasises the necessity of looking across the entire value chain.

“The value chain costs cover everything from the handling of raw materials to getting the finished product to retailers, and also how packages are handled, stored, and the amount of waste distribution is responsible for,” she says.

Packaging is where producers can best address distribution-related challenges to improve efficiency and, by implication, costs across the entire value chain.

“It starts with how your packaging raw materials are delivered to you,” says Korczynska. “The more material that can be transported with each delivery, the fewer trucks – and therefore less fuel – are required, which contributes to reducing both your transportation costs and carbon footprint.”

“The value chain costs cover everything from the handling of raw materials to getting the finished product to retailers."

 

Agnieszka Korczynska, Manager Business Stream Tetra Brik Solutions

Agnieszka Korczynska, Manager Business Stream Tetra Brik Solutions

And how can you improve distribution efficiency when getting products to retailers? The same logic applies here – the more packages producers can fit on pallets, the more efficient the distribution becomes, as you require fewer trucks to deliver the same volume of product. As before, this reduces costs and lessens your climate impact.

“The best way to approach this is choosing packages with a shape that is easy to stack, preferably a brick shape. Also, the taller and slimmer a package is, the more space-efficient it is,” Korczynska explains. 

Using returnable systems, such as crates going back and forth between the producer and the retailer, requires storing and cleaning between deliveries, which leads to additional costs. One way to keep distribution to retailers one-way is carton secondary packaging, where the packages are stacked and delivered in a cardboard box.

Reducing waste is another aspect chilled producers need to consider when optimising distribution efficiency.

“In some markets, glass bottles are used for the distribution of chilled white milk,” says Korczynska. “But since these break easily , switching to a carton package can significantly help to reduce food waste in distribution.” And using a paper-based, lightweight option, as opposed to glass, also reduces your carbon emissions and decreases your impact on the climate.

The more insights chilled producers have into their distribution, the better positioned they will be to find ways to improve efficiency. “For that, digital solutions to monitor the distribution of products across the value chains can be very valuable in identifying where and how potential improvements could be made,” says Korczynska. 

Working with one experienced partner makes facing these challenges in chilled products easier. You have to ensure you get all aspects of your product right, from ingredients and the way it is processed to packaging, commercialisation, and meeting your consumers’ expectations. And, considering the pace of sustainability developments, ongoing dialogue with experts is necessary to respond to new demands and legislation for whichever market or segment you are active in.  

Learn more about chilled carton packaging

Contact our sales team

Service engineers training

Our sales teams are happy to answer any sales or product queries. Please fill out our form so we can better be of assistance.

  • 1 Purpose
  • 2 Request
  • 3 Contact

Purpose of contact

Please select one option

Business area of interest

Select one or more business areas
Please select business area of interest

Contact our sales team

Summary

Purpose of contact
Business area of interest
  • 1 Purpose
  • 2 Request
  • 3 Contact

Specific area of interest

Please select one option

Contact our sales team

Summary

Purpose of contact
Business area of interest
  • 1 Purpose
  • 2 Request
  • 3 Contact

Scope of request

Please select one option

Food category

    Please select one option
    Please select one option
    Please select one option
    Please select one option
    Please select one option
Please select one option

Contact our sales team

Summary

Purpose of contact
Business area of interest
  • 1 Purpose
  • 2 Request
  • 3 Contact

Specific area of interest

Please select business area of interest

Contact our sales team

Summary

Purpose of contact
Business area of interest
Specific area of interest
Scope of request
Food category
  • 1 Purpose
  • 2 Request
  • 3 Contact

What describes your request the best

Please select one option
Please enter this field

Contact our sales team

Summary

Purpose of contact
Business area of interest
Message
Specific area of interest
Scope of request
Food category
What describes your request the best
Your role
  • 1 Purpose
  • 2 Request
  • 3 Contact

Company information

Please enter a valid work email
Please enter this field
Please enter this field
Please enter this field
Please enter this field
Please select one option
Please enter this field

Thank you for your interest

Your request has been submitted to our teams and we will be in touch shortly. Please click on the button below if you want to submit another request or if you have another query for us.