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    Features

    The Nutraceuticals World According To Packaging And Labeling

    Examining the impact of packaging and labeling on nutraceuticals.

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    Rebecca H. Madley04.01.01

    The nutraceuticals market is nothing without the element of packaging and labeling. Together they do everything from entice the consumer to educate the consumer and most importantly ensure the quality and safety of the product intended for the consumer. In short, packaging extends the personality of the finished product, while labeling helps the product speak its mind.

    Currently companies are working on becoming more innovative in the packaging area through graphics, oddly shaped bottles and high gloss finishes to differentiate their products from the myriad others that inundate store shelves. At the same time companies are working to present more concise, but informative, labeling language and articulate design to further lure the consumer.


    It's All About Appearance
    On the bustling shelves of health food stores and mass market stores, where packaging really sells itself, packaging innovations that essentially jump out and grab a consumer visually are going to provide an advantage in terms of the final sale of a product. In that way products have to set themselves apart, especially as the packages and the nutraceuticals inside them continue to become more mainstream.

    Discussing the mainstreaming of packaging and nutraceuticals was Robert Bell, vice president of sales, Quality Container, Ypsilanti, MI. "The nutraceutical market continues to grow as more alternative remedies are tested and proven to be effective and nutraceutical packaging is becoming more mainstream," he said. "By that I mean that product names, product logos and packaging presentations are all becoming more like established, recognizable products."

    Tony Petrelli, vice president of marketing and business development, Caraustar Custom Packaging Group, a division of Caraustar, Austell, GA, said graphic enhancement is a big trend right now because everyone is vying for noticeability. "What we are finding is that more of our customers are looking at opportunities to use more colors on the carton and really utilize a more complex graphic style," he said. "Most of the printing presses we see in the industry are being made with more and more color capabilities. In the old days you had two or four color presses and you manufactured the carton with those limitations, but now we are buying seven and eight color presses." In addition to that trend, Mr. Petrelli pointed out an increase in the use of special high gloss coatings while utilizing other techniques such as foil stamping and embossing the name of the product or logo to give it more of a textured feel.

    Steve Nussbaum, director of marketing, O. Berk, Union, NJ, added that in terms of packaging options, white and amber HDPE (high-density polyethylene) seems to be in right now and there is also a trend in color PET wide mouth round containers.

    Companies are also getting into PET containers for a more glossy, expensive look, according to Andrew Bottene, sales manager, TricorBraun, Cerritos, CA. "They are converting from glass to PET, even through glass will still be a significant part of the industry. Many companies are experimenting with oblong bottles instead of rounds because they have more shelf presence, giving the product more visibility," he said.

    A slowly developing trend, according to Bill Sharpless, market development specialist, Honeywell, Morristown, NJ, is the move toward compliance packaging, which details a particular product's medication schedule. "What would be nice is if companies would use compliance packaging and lay out consumers' medication according to when they should take it," he commented.


    Bottles Vs. Blisters: An Ongoing Battle
    The obvious comparison when it comes to packaging is bottles versus blisters and, although bottles still remain king, there has been substantial growth in the blister market. According to Mr. Sharpless, "Although the packaging market in general is growing 5-6% a year, the blister market is growing at a rate of 15%, specifically in the healthcare arena with regards to pharmaceutical and nutraceutical segments." He added, "The growth in the blister business is fed by a few different things. First and foremost I think that the drug delivery market is rapidly growing the market for blister packages. Some of the delivery systems like rapid dissolve tablets don't do well in bottles because they may stick together or crush easily in a bottle's loose fitting environment."

    Blister packaging is also a key packaging choice when it comes to an issue such as non-compliance, which according to Don Huggins, vice president of sales, PCI Services, Philadelphia, PA, is a $100 billion problem right now in the U.S. "Three hundred and twenty people die a day because they have not taken their medication correctly," he said. "Ten percent of people in hospitals are there because they did not take their medication the correct way and become more ill. Further, 23% of all people that are in nursing homes are there because they cannot take their medication correctly."

    While compliance is more likely when using blister packs, that is not the only reason for choosing this packaging choice. Mr. Petrelli of Caraustar said another reason is the ease of use for the consumer. "I see a greater opportunity for the blister. Whether it be a special nutraceutical gum or even a vitamin type product or nutritional supplement, I just think that consumers like the ease of use of knowing that they can see their dose and punch it out and don't have to worry about unscrewing a bottle," he said.

    Additionally Mr. Petrelli suggested that demographics have a lot to do with choosing a blister package over a bottle. "It helps categorize that product as a new product or a new and improved product, which certain generations look to," he explained. "Baby boomers do not look at nutritional supplements as being mainstream but younger generations, people in their 20's and 30's now, see nutritional supplements as a mainstay of their life. I think blistering is mainstream for the 20 and 30-year-olds and the bottle is almost outdated."

    Quality Container's Mr. Bell also felt that the market for blisters will experience more growth. "I believe that the use of blister packaging will increase in the nutraceutical sector because it provides safe, secure packaging for medications as well as convenient travel size doses for those people who maintain a healthcare treatment regimen. Also touching on the compliance issue, he noted, "Blister packaging can be formatted to improve patient compliance. Doses can be marked for specific times and/or days, subtly reminding patients to take their medications."

    On the other side of the fence, Brad Grimes, president, Nutravim, Moosejaw, Saskatchewan, Canada, said bottles are most popular and will remain so. "Blisters are good for the elderly and children, who can't keep track of dosages, but unfortunately they are not cost effective for a natural health product."


    Labeling Trends
    The label space is sometimes the only chance a manufacturer has to communicate with the consumer. With that in mind companies are constantly looking for ways to expand the real estate of the label to include more information. Additionally, companies are looking for different material for the label itself. Some label innovations that seemed like a good idea at the time of launch have not been received well in the market thus far.

    There are a few areas to look at, according to Daryl Madeira, pharmaceutical market manager, Avery Dennison, Painesville, OH. "One is more access to better information on the label and what that has led to is creative ways to increase the surface area of the label through extended content labeling or ECL," he said. "I also see an increasing trend in using film material for labels versus paper because film has a stronger shelf appeal. We have seen that in health and beauty aids for a number of years. Because nutraceuticals are very much a shelf appeal sell, especially with increased competition, film labels are really starting to make their way onto those types of packages."

    On the physical appearance of the label, Lori-Ann Jakel, marketing manager, Alliance Labeling, Oakville, Ontario, Canada, said the trends vary from season to season. However, she said, "We find that an attractive label comes with vibrant colors, high-end graphics, easy to read fonts and consumer likeability. When you put all these ingredients together, you have a unique package or as we say, 'a label of distinction.'"

    Included in the effort of companies to provide more information was the innovation of peel back labels. Talking about the lack of success of the peel back labels Honeywell's Mr. Sharpless offered, "Peel back labels work while they are on the retailer's shelf but once the consumers get it home the label could be torn off and shoved in a drawer or winds up falling off by itself."

    Nutravim's Mr. Grimes offered a different perspective. "The peel off labels add cost to the product and I think those type of labels were meant to get around regulations because while they would not make a claim directly on the front label, they could say whatever they wanted to inside." He added, "We have not had any demand for those types of labels and I don't see a demand surfacing. Besides, I think it is far more effective to make a claim right in the face of the consumer."


    Effective Labeling And Regulatory Hurdles
    Labeling has gone through some transitions in the past couple of years due to lack of regulation of health claims and the advent of disclaimers. In addition, companies have had to figure out how much information is enough-or too much-to give to the consumer.

    Backing the mandatory FDA disclaimers, Mr. Grimes said, "Consumers understand that FDA takes the final stand on disclaimers and it has to know beyond a shadow of a doubt before it authorizes a claim," he said. "Once the disclaimer is removed consumers assume that FDA has approved the statements on the label. Just because a product does not have a stamp of approval from FDA does not mean that a particular product is a bad product, however, which is something consumers still need to understand."

    Honeywell's Mr. Sharpless said companies in the nutraceutical industry must have active programs to remain aware and current with all FDA regulations as they pertain to their products. "I believe that FDA has taken some interesting steps towards accomplishing part of its goals and objectives, and that is to maintain safety in the consumer community. Unfortunately we keep giving the FDA all of these things that they have to regulate but I would question whether they have the resources to do so," he commented. "I think FDA has less than 350 field personnel to inspect everything from the food industry to the pharmaceutical industry and now the nutraceutical industry and they are spreading themselves thin. Nutraceutical manufacturers must police themselves or risk putting themselves out of business."

    More information has penetrated the labeling of nutritional products than ever before. Some feel that more information will in turn lead to better education, but most experts say that a wealth of information in such a small space can be quite overwhelming for the consumer. Ms. Jakel of Alliance Labeling commented, "A majority of the labels are communicating an effective message to the consumer. But I happen to believe that less is more, meaning the easier a package is to read the more likely it will be read in its entirety," she explained.

    Caraustar's Mr. Petrelli pointed out that although labeling is not perfect, communication between the consumer and manufacturer is getting better. "Communication is improving as the nutritional supplement companies identify the need for better, more clear information," he said. "And while nutritional companies have grown and adopted more sophisticated business practices, there is still a continual education and evolution that is occurring with nutritional products."

    According to Mr. Madeira of Avery Dennison, FDA expects all packages to contain more information on the label, which will clear up confusion. "Clearly the industry is responding to consumer demand for more information. Are they gaining more knowledge through packaging and labeling? I think so, because when consumers compare and contrast two products in their hand, they will become more educated. I think more information equals less confusion."

    Mr. Bell concurred, adding that, "It's imperative to have packages that display nutritional facts data to help build confidence in the products themselves. Medications, whether prescribed, OTC or alternative therapy, must meet claimed active ingredient levels. FDA regulations will help ensure that medications meet all claims," he said.


    The Impact On Consumer Awareness
    A lot of experts attribute the awareness of nutraceuticals to packaging and labeling because that is the first point of reference for the consumer. It is the package that initially attracts them and the label communication that makes the consumer more aware of the contents.

    Ms. Jakel said, "The first thing a consumer sees is the package. If the label is appealing to the consumer, he or she will lift it off the shelf," she said. "Once in the hands of the consumer, it is purchased 60% of the time."

    Mr. Petrelli said in terms of selling a product, both packaging and labeling are equally essential. "The impact of packaging on consumer awareness is huge," he said. "If you put the product in a box, that box has to be the billboard for not only communicating and promoting the product but communicating the important information that will explain to the consumer what the product is for, how it is to be used and what the intended results are." He added, "The billboard space has to communicate enough for the consumer to purchase the product."

    Also an issue is the fact that blister packaging can create more label space and therefore more awareness, said Mr. Sharpless of Honeywell. He said, "First of all, there is a huge advantage for blisters in terms of consumer awareness because you can say so much more on your package than on a bottle." Consumer awareness is defined by advertising, he said, and it has gotten to the point where there is not enough room for the basic requirements dictated by FDA on a given label, let alone enough space to do advertising to drive a message to the consumer.

    Mr. Bottene felt that with the consumer being bombarded with so many options in the market place, manufacturers are looking to the package to sell the product. "The average consumer is overwhelmed with many choices when purchasing supplements. The package will be the first thing that the consumer will look at," he said, adding that, "If there are 10 packages of vitamin C, only a few are going to stand out to make the consumer read more about the product." In terms of what some companies are doing to make packaging more noticeable, he said some are embossing their logos on caps and bottles or going with a more expensive label or doing flip top dispensing instead of a regular screw cap to make it more consumer friendly.


    What's On The Horizon
    In terms of labels and packaging the future looks interesting. Mr. Madeira insists that because nutraceuticals are a shelf-appeal sell there is a good chance that these products will follow the same path taken by health and beauty aids and beverages. "Once the baseline for performance has been established then companies look for creative ways to attract customers," he said. "What has been the trend in those markets is the clear on clear labeling. There is value in labels that allow the consumer to see the product in the bottle, at the same time providing a no label look for the product. We are gearing up and pushing for the opportunities for clear on clear labeling in nutraceuticals."

    Alliance Labeling's Ms. Jakel said the future will consist of full body shrink labeling and pressure sensitive labeling. "The possibilities are endless. Labels can be frosted, screened, foiled and even glow in the dark," she said. "Seven or more colors in graphics allows the product to jump out at you, making consumers more aware of what the product is in itself promoting. Lots of garden vegetables for health drinks and fresh fruits that actually look as good as the real thing help to paint a picture that is worth a thousand words. The high demand in the packaging industry, whether it be the nutraceutical, beverage or pharmaceutical fields, will see a boom in creative design."

    Pondering labeling from a different point of view was Nutravim's Mr. Grimes. "The next evolution will be detailed and proven information on the label," he said. "Consumers are fairly educated and can tell if a product is for real or not. There may not be a great deal changed in the look of the label but more having to do with the content."

    PCI's Mr. Huggins feels that blister packaging will continue to gain more momentum and market share to eventually be the package of choice. He said, "Nutraceuticals will move away from bottles because of non-compliance issues and FDA guidelines. Truthfully, if a company pays a little more for the packaging up front, in the long run the investment is well worth it because of improved compliance."

    Customized and user-friendly packaging will be the next step for companies, according to TricorBraun's Mr. Bottene. "Companies will eventually customize their look with custom containers, user-friendly dispensing closures and high end labels for more shelf appeal."

    Speaking from the perspective of the beverage market, Lee Farlander, vice president of marketing and business development, Vitro Packaging, Dallas, TX, commented, "We see a major break-through occurring in 2001 with the use of glass packaging moving into nutraceutical drinks," he said, adding, "Sizes will be seven to 10-ounce to compete against the eight ounce can. Right now we have three customers who we are working with on the development of new energy type drinks in glass packaging."

    The biggest thing, according to Mr. Petrelli of Caraustar, will be interactive packaging. "Interactive packaging will include picking up a package in the store and having it talk to you and tell you something about the product by pressing a button. Another example includes going into a store, picking up a wand from a kiosk and scanning the package to tell you more about the product."

    Additionally, Mr. Petrelli explained, a lot of products are requiring electronic surveillance tags, which are plastic strips or labels on the inside or outside of a box that stores use to reduce theft. If the strip or label is not demagnetized the package will set off the store alarm. "The real reason for those plastic strips or labels, when used in the retail environment, will be for checkout scanning," he said, adding, "There is going to be a day when you pick your product off the shelf, put it in your cart and go to the checkout counter without anyone there because every single package has an electronic security tag. The tags record the purchase and you will be sent a bill or your credit card will be charged." Mr. Petrelli said the concept is known as E.A.S. (electronic article surveillance) and it does a few things. "It deters theft, allows you to purchase a product without someone at the checkout counter and provides feedback to the manufacturer on the fact that the product was just purchased-in real time-so the manufacturer can start doing daily tabs back at the manufacturing site on what was sold that day."

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