Counting the cost savings for customers misses the bigger picturestevenkiernan, 1 February 2008Be the first to comment on this article It’s been quite a while since I took my O-Grade Arithmetic but, even so, it struck me that Asda’s pledge to return 10m saved by packaging reduction to customers deserved some closer mathematical scrutiny.
To look at it another way, Asda served more than 20 million customers in the week before Christmas, so the saving would equate to 50p for each of them. Now, I know in today's retail environment every little helps (whoops, wrong multiple), but in the future, 50p won't even be enough to buy your plastic carrier bags for a week. Asda's pledge is obviously a good bit of marketing if it's targeting the arithmetically challenged or those who just believe that packaging is bad, full stop. But it doesn't reflect the growing realisation, even among retailers, that focusing purely on packaging reduction is missing the bigger picture. The Courtauld Commitment might have prompted retailers and brand owners to carry out some proper analysis of their packaging that would not otherwise have happened, but it's not good enough to look solely at packaging weight. In a world where consumers are increasingly switched on to recycling and sustainable manufacturing, and the benefits of using recycled content rather than virgin materials, I've yet to see a multiple publicly state that this might not go hand in hand with packaging reduction. For example, the fibres in recycled cartonboard are shorter than those in virgin material, affecting their strength and meaning boxes have to be made heavier to produce the same strength. Rather than simply talking about passing on savings from packaging reduction to customers, Asda would be better served highlighting the overall savings to the planet from using more recycled content, notwithstanding the UK's underdeveloped infrastructure for collecting and reprocessing packaging waste. And while the Waste and Resources Action Programme is currently deep in consultation on the impact of its 25% budget cut, let's hope that when it exits this turbulent period, it reshapes Courtauld to encourage a more sensible approach to packaging that's focused on optimisation rather than reduction. Speak Your Mind |
![]() Popular Articles
|
13th February 2012
Advertisements
Marden Edwards is a global manufacturer of bespoke packaging machinery for capital goods including tea and coffee
Benson Group is the UK's fastest growing carton manufacturer, producing printed folding cartons for customers in the food and pharmaceutical industries.
ITCM is a world leader in special purpose machines for pharmaceutical packaging.
Automated Packaging Systems: A market leader in manual, semi and fully automatic packaging machines and bagging systems for flexible packaging
PAGO is a leading provider of labelling systems and labeling machine technology. We provide innovative and efficient solutions for self adhesive labelling across a huge range of industries.
You are here: Home : Environment : Counting the cost savings for customers misses the bigger picture
Search Jobs
Featured Jobs
- Sales Manager – France | Selection Group | Circa €60,000 25% Bonus/Car
- Business Development Manager – Europe | Selection Group | Circa £60k & Excellent Bonus
- UK Sales Manager – Foodservice Packaging | Selection Group | £40k & 40% Bonus & Car Allowance
- Packaging Manager | Ambitions Personnel | Depending on experience includes company car
- Area Sales Manager – Polythene Bags | Key Recruitment | £30K + dep on exp, realistic OTE £38K
- Sales Executive | Selection Group | £40k & Bonus/Car
- National Account Manager | Selection Group | Circa £45k & Bonus/Car
- Sales Executive-Self Adhesive Labels | Kingsway Printers | Competitive Salary
- Operations Manager | Eames.Jones.Judge.Hawkings | competitive
£10m equates to £192,000 a week, or £27,430 a day. To put things in context, Asda's US parent, Wal-Mart, generates total sales of £173bn ($354bn) a year, or £474m a day. Not so impressive, is it?


