COVERIS DRIVING CHANGE THROUGH PREMIUMIZATION & DIFFERENTIATION

Tuesday, April 7th, 2015

In an interview during the Paris Vending Show, Dieter Bergner (CEO Coveris Rigid) revealed Coveris’ future strategy for the European vending market.

Coveris as multi-technology and multi-site manufacturer of rigid & flexible plastics has recently reviewed its five-year-strategy and assessed all market segments by their current state and future development potential.

“For the vending segment we had to recognize that operators focused too much on satisfying the basic need of ‘canteen catering’ at largely constant prices, compromising on quality experience. The Quick Service Coffee & Restaurant chains on the other hand have focused on ‘the consumer experience’ and were able to sell their products at a significant premium with growing demand,” said Dieter Bergner. He believes that the normal vending market will need to adapt to the new consumer demand of lifestyle and experience before the Quick Service chains enter large scale into office & factory supply.

Coveris sees itself at the forefront of driving that change by offering packaging solutions with increased space for brand communication and various branding options through high-quality decoration technologies, following the trends of differentiation and premiumization.

He explains: “We have deliberately chosen not to invest into the paper cup market, as it is developing into a mass business with little differentiation and innovation. Moreover, we felt that from an environmental perspective recyclability of foiled modified paper pulp is poor and mass market products made of regenerative raw materials like sugar cane and maize will inevitably have an impact on food prices.” Instead, packaging manufacturer and solutions provider Coveris is focusing on thermoformed cups made from polymers that are decorated with printed paper wrappers for optimal brand exposure. “Our latest offering to the market is the new VenDuo® cup range – a solution for the premium vending market, building on the successful DuoSmart® concept, combining the attractive appearance of paper cups with the functionality of polymers.” Dieter Bergner mentioned that this range will be complemented by a GO!Smart range which is being developed particularly for the Quick Service Restaurant market.

Both ranges are truly environmental-friendly packaging solutions with no compromise on quality and safety. They allow for a significant raw material reduction through the use of lightweight plastic inlets and recycled pulp for the paper wrapping. The cups are fully recyclable after consumption thanks to an easy separation of the plastic inlet and paper wrapper. Moreover, they can be decorated with individual branding through high-quality offset printing and are heat resistant, similar to double wall modified paper cups.

Studies with operators in the market revealed that consumers appreciated differentiation of design and even promotional options with these cups. The new VenDuo® cups work on all core machines and range from 7oz to 12oz with in-cup options available as well.

“We will increasingly focus our Food Service & Vending ranges on products that offer added value to operators. Driving that change is our passion as it will keep the production of cups in the long-term in Europe and differentiate us from competition through constant innovation, fulfilling both customer and end-consumer needs,” Dieter Bergner concludes.