Whose business is it?

by MONICA SHAW

MONICA SHAW is Editor, Pulp & Paper

I have a secret. In recent years, I have developed a growing acceptance for the taste of Diet Pepsi. No big deal, you might think, but, oh yes it is—if you are a native of the South where Coca Cola reigns, with headquarters in Atlanta. True Southerners are usually closet drinkers of Pepsi. In fact, my New Jersey husband was amazed to find that soft drinks in the South are referred to generically as "cokes" rather than sodas.

I might be able to blame my father for this Southern taste anomaly, since he's always been one of the outcast Pepsi fans, but I really don't share his extreme preference over Coke. In fact, I usually just buy the most obviously displayed cola at the grocery store, and you can guess which one that is here in Atlanta. Still, I am sometimes decadently drawn to the cola "dark side."

So, when I read in the Atlanta Journal-Constitution (AJC) that Coke was switching to a more refrigerator-friendly package, I was intrigued. Our home is 50+ years old, and we were limited by space to buying a smaller refrigerator than I would have preferred. I also prefer my drinks very cold, but without ice. Might I finally have found the end to my cola consumer dilemma?

MAKING THE CASE (AND MORE). According to the AJC article, Coke is migrating its 12-pack soft drink packaging from the "boxy style that debuted in 1977 to one that fits better in refrigerators." The new package is shorter and deeper, functioning like a "mini vending machine," according to the Coke spokesperson quoted.

However, before rolling out the new packaging to markets other than those for test in Atlanta and Chicago, as well as investing in the equipment, Coke wanted proof that the new packaging would pay off. It did. Coke Consolidated of Charlotte, N.C., the first to use the packaging as of a year ago, attributed a 1% growth in sales volume last year to the new packaging.

So, who was the "packaging company" that "developed the new box"—one that might ultimately solve a guilt-ridden issue for me? The article didn't identify it, but a quick phone call confirmed that it was Riverwood International. According to Riverwood COO Tom Gannon, the company took their new package design to Coke and other beverage suppliers, although "Coke was the first to show interest—and in the biggest way."

Dubbed as the Fridge Vendor by Riverwood, the pack supports a 6x2 can configuration rather than a 4x3. It also features a perforated corner section for easy removal of cans. Gannon reports that the new design required no modification to the basic 18-pt paperboard Riverwood's mills produce. It also required only "modest" changes to the company's converting lines, although Coke will have to re-engineer its own packaging lines somewhat.

Offsetting that cost is Coke's anticipation of huge consumer acceptance for the 4x3 box, which they refer to as the Fridge Pack. In the March 2002 issue of Packaging World, Coke USA's senior vice president and chief marketing and customer officer Norman George noted that consumer preference for the pack is "off the chart" as compared with the old configuration.

Bottom line, Riverwood put a lot of thought into what their customers had to do to increase sales. Ultimately, they had to make something that was more attractive and convenient for the consumer. They didn't just make a soft drink case; they made a business case for a stronger relationship with their customer through close involvement with a successful project.

CUSTOMERS IN FOCUS. Is the paper industry in general examining its customers' businesses as closely as it scrutinizes the sheets produced for them? Such close examination would bring the paper industry closer to the ultimate customer—the consumer who generates demand.

To this end, Pulp & Paper has created a special series of articles that take a close look at issues facing customers of paper products as they reach out to the consumer. Designated the "Customers in Focus" series, we speak with top catalog publishers and printers this month, discussing various challenges they are confronting. Next month's focus will be on containerboard converters, followed by an article outlining the business case for creating a customer focus within our industry in the August issue of P&P.

So, would anyone like a cold Diet Coke? I have plenty.