Shelf-ready is an opportunity, not just a cost, say suppliers

As Tesco's demands for shelf-ready packaging (SRP) begin to bite, packaging suppliers are urging manufacturers to see this as an opportunity for better in-store promotion rather than simply a further financial burden.

Following Tesco's announcement that suppliers will in future be required to provide SRP designs for their goods, other retailers have been pushing similar messages. But the response of transit packaging suppliers has been strikingly upbeat.

Field First sales and marketing director Tony Hitchin argues that the move to some shelf-ready packs could be cost-neutral or, if a lighter solid-board pack is used, actually reduce costs. He admits that most adjustments to SRP will in fact involve on-costs, but underlines the positive benefits these can bring.

"Manufacturers used to spend huge amounts of money trying to get their own point-of-sale (POS) material into stores," Hitchin recalls. But since then, most multiples have excluded branded POS material. The new retailer emphasis on SRP gives brands the chance to claw back some of these benefits, he claims.

"We see this as a tremendous opportunity, and not just a potential on-cost," argues Hitchin. "Of course, it can be seen that way. The retailers won't pay for it, so the cost will have to be borne by the manufacturer."

Brands will need to insist on the merchandising function of their SRP when negotiating with retailers, says Hitchin. "The designs we offer don't add complexity. There's no reason why you can't facilitate shelf-loading while also communicating more effectively."

For its part, David S. Smith Packaging has invested over £100,000 creating a superstore-type environment in Ely where manufacturing and retail customers can trial pack designs in a controlled environment. The company emphasises the range of SRP options available for different types of product. "Having a wide range of solutions is vital," says manager responsible for the centre Gareth Jenkins. "We don't want to force our customers down a single route."

Suppliers are reluctant to put a figure on the cost implications of moving from standard cases or trays to SRP alternatives. As Jenkins explains, simply adding perforations to an outer may be enough, while for other products the costs may be significant.

Other impacts of SRP are starting to be felt further downstream. Stretchwrap supplier