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More: State of Packaging 2010

By: Jeff Falk
Posted: September 1, 2010, from the September 2010 issue of GCI Magazine.

page 2 of 11

Nagel: Contrarily, we find that brand owners are primarily concerned with looking for ways for their brands to stand out. So our reputation for using cutting edge technology to produce high quality products supports this trend.

Schinazi: At first step the reaction was to scarifice some aspects of the packaging. But very soon we have seen that, [in the end], brand equity needed to be preserved. Packaging is still very high end, but clients have been tougher on the negotiation. They want same added value packaging but pay less because of their budget constraints.

Dwyer: Many brands have shifted the focus to price and the way they order. Our ability to reduce [costs] has helped us take on new clients that might otherwise have been lost to competitors. We have given key accounts more exceptional payment terms. Many brands have also looked for cost savings by changing the design of a package. Shifting from metal to plastic, or to a more basic package. Our tube business is very strong.

I also feel the ethical or recycled trend lost momentum [since the latest financial crisis] as it costs more to use recycled materials and brands had no chance to increase their cost base in the last 12 months.

Holland: I believe brand owners prefer to maintain package integrity regardless of whether they are high end or value brands. An upscale product manufacturer may entertain offering a value brand just to capture that piece of the market. But we haven’t seen any compromising when it comes to putting out a quality product, including the packaging, for many of our customers.