Convenience Ends Boost Can Sales, Share and the Bottom Line

By Jeff DeLiberty

It’s easy to get distracted by all the “new and different” packaging that food marketers are using to create excitement when launching a new product or refreshing existing lines. While glass, plastic, retort pouches, and recart boxes can grab temporary attention, the metal can—with its 21st century easy-open ends—continues to deliver the sales and share results.

Why? Because consumers crave convenience and functionality. It’s at the top of the “must have” list for nearly everyone from on-the-go singles and independent teens to multi-tasking parents and aging Baby Boomers. Virtually every type of package these days claims to offer convenience (especially newer plastics and multi-layer cartons),

but what do consumers really consider this to be? In studies across the U.S., many descriptions like “quick and easy-to-open,” “without requiring extra tools,” and “without making a mess!” are repeated. These are the reasons metal cans with easy-open ends are becoming a preferred choice.

The proof is in the data

In product categories from vegetables to single serve pasta, from soup to chili, statistics reveal that brands converting to metal cans having easy-open ends achieve impressive increases in category share, and in many instances, double- digit sales growth. (New brand introductions with easy-open ends also see similarly positive market reactions.)

Overall annual food can shipments exceed 25 billion; the proportion of easy-open can ends continues its rise. In 1999, nearly 23% of U.S. food cans used easy-open ends. Five years later, that figure was 45%. By 2008, it is predicted that 65% to 75% of all metal cans will feature easy-open ends.

From the perspective of food processors, widespread acceptance and trust by consumers has kept the metal can at the top of their packaging choices. Going to market with new alternative packaging can take many months and millions of dollars up front, not to mention saddling marketers with slow line speeds, long lead-times, and costly materials. On top of that, there’s no guarantee of widespread consumer approval.

With cans, metal packaging provides inherent production efficiencies, such as a low per-unit cost, unrivaled line speeds, and low defect rates—plus the easy availability of thousands and thousands of design options that address new and unique product needs.

Consumers willing to pay for more convenience

Although easy-open food can ends were originally introduced in the 1960s, they could be used only with aluminum cans. U.S. food processors were slow to embrace the new ends. That changed quickly in the late 1990s when new metallurgical and end design technology enabled food processors to design steel easy-open ends that open as easily as aluminum ends.

During the last six years, metal packaging providers constantly tested and created new designs, altering materials and incorporating adjustments to make easy-open ends even more functional and convenient. The “end result” is easy-to-grasp tab designs with larger openings, easier finger access, and a smoother pull requiring less force.

While multiple styles of easy-open ends are now on the market, consumers recognize the differences, according to Orman Guidance Research, Inc. When asked to rate the ease of opening and overall appeal of different ends on non-branded samples, participants overwhelmingly chose convenience ends that were “more than 50% easier to pop.”

In the same study, more than 80% of consumers said they would pay more—from six to eight cents more—for a convenience end on canned food products. And supermarket sales data confirms this. Documented case studies confirm that companies such as Del Monte, Campbell’s, General Mills, Nestlé, and ConAgra Foods have benefited from product conversions or launches with metal packaging that has easy-open ends.

Category sales growth documented

Marketers in the soup category don’t need to take a second look at how consumers value easy-open ends: the numbers are self-evident. Campbell Soup Company was one of the first to convert an entire line of products. Over a 12 month period, Campbell’s saw its share of the Ready-To-Serve soup category jump three share points after converting to Quick Top ends – despite reduced promotional support (see Chart 1).

In the vegetables category, Del Monte’s conversion to Quick Top ends reveals rapid consumer preference for easy-open ends. After converting its 8-oz. vegetable line in October of 1999, the company realized double-digit sales increases over the next 12 months. Sales grew 21.5% while the balance of the 8-oz. corn sales barely increased (see Chart 2). And over a two-year period, Del Monte’s share of 8-oz. corn rose by 8.5 share points. This documented, steady rise took Del Monte’s already dominant corn product from 41.0% to 49.5% of the 8-oz. canned corn market in the U.S.

Conversion is not cost-prohibitive

Converting to easy-open ends can be done quite easily. Food processors can get to market quickly by leveraging existing capital assets, saving time as well as dollars. Costs to food processors are generally minimal since they often don’t need to incur any capital expenditures for retooling.

On the average, conversion costs are two to three cents per unit. Conversion time varies, depending on the volume and processing environment. Companies have converted to a successful easy-open end launch in one month’s time. If more challenging food processing variables are involved, conversion can be completed over a one- to two-year period. This can be done without interruption to existing production, allowing marketers to keep up with product demand.

From the food marketers’ perspective, a successful product launch or line conversion must create bottomline results. Sales results like those mentioned here are driving marketers across vegetable, soup, and other food categories to convert to easy-open ends. A 10% to 20% sales lift far outweighs the two to three cents per average cost increase.

Jeff DeLiberty is a senior marketing manager at Silgan Containers and a former marketer with Hershey and ConAgra. Jeff serves as chairman of the Can Manufacturing Institute’s Marketing Committee. He can be contacted at 818-710-3742 or jdeliberty@ silgancontainers.com.