Stock Packaging Picks

HCP recently launched a range of metal components called Magnum.

Using stock packaging can simplify the packaging process, but defining what stock packaging means is not as much of a user-friendly experience.

“There are a couple of definitions for stock packaging and the term continues to be very confusing for prospective buyers,” explains Mike Warford, director of sales, ABA Packaging Corp. Warford says the term stock packaging can either imply ready-to-ship product from a warehouse, or it can describe items that are made-to-order using existing tooling, molds or fixtures. In ABA’s case, the company works as a “stocking distributor of primary packaging products and in many cases, we have components on the shelf that are ready-to-ship as soon as the financials can be completed,” Warford explains.

ABA Packaging has noted requests for heavyweight stock packaging with thicker heels, such as in the bottles pictured here.

In a similar vein, Cospack America offers stock packaging through its In Stock In Style program. “Our stock packaging is ready-to-ship from California with low minimum order quantities; however many of our more popular items are stocked at such high inventory that we are able to meet large quantity demands very quickly as well,” says David Hou, director, marketing and sales.

Kaufman Container Company divides its stock packaging options into two main categories. “First and foremost, it is the physical inventory we keep in stock at our warehouses of various packaging components. This would include bottles, caps, dispensing systems and much more. We keep an open stock of items for anyone who wants to purchase them. In most cases, the items are available in natural, white or black,” says Jeff Gross, VP of sales and vendor relations. Kaufman also warehouses specific inventory for various customers, ready to ship as needed.

Secondly, Kaufman works with manufacturing partners to offer what it terms “stock available products.” “Several suppliers keep open stock of various components available to ship within 24 hours,” says Gross. “We inventory a variety of sizes, shapes and materials to suit the particular customer’s needs. If we don’t have it available in our warehouse, chances are there is an option out there...we just need to locate it.”

Ready-to-ship stock packaging suppliers offer clients specific benefits. Hou of Cospack outlines three types of beauty companies that are most likely to utilize these services. “One such type is a company that needs to launch new product or an entire line in a short amount of time. Another type would be one that seeks the efficiency and monetary savings of having us keep their inventory stateside so they can meet a spike in demand quickly,” says Hou. “The third type of company that uses our In Stock program is one that wants an order quantity that is typically less than the minimum order quantity for made-to-order components. Typically, they are newer companies that are looking to start small, and need suppliers who are willing to work with them as they grow.”

Custom colors provide an excellent way to differentiate stock packaging, as demonstrated by this range of custom-colored stock items from Alpha Packaging.

Still other suppliers manufacture to order using non-proprietary tooling. Alpha Packaging, citing the fragmentation of the markets it serves, inventories its most popular stock items, but finds the largest portion of its business is made-to-order. “At Alpha Packaging, we consider stock packaging to be any package we make that’s available for any customer to buy, as opposed to custom packaging, where the mold is owned by a specific customer and can only be run for that customer,” explains Marny Bielefeldt, director of marketing.

Plasticos Faca offers a catalog of made-to-order possibilities. Made-to-order allows for customization during the manufacturing process. “We offer a wide variety of finish options for all of our products. For example, frosted, metallized and colored,” says Maria Lavrentieva, commercial director.

Similarly, for HCP Packaging, “Stock packaging means that HCP has invested in designs and tooling for components that can be purchased by clients, without tool investment, and made bespoke through coloration and decoration utilizing HCP’s decorating capabilities,” says Jackie Mantle, managing director of HCP Packaging UK Ltd. “The standard products are originated by HCP’s integrated design team to present customers with pack options that can be uniquely customized by utilizing the company’s extensive coloration and refinishing technology base.”

Made-to-order product suppliers also work to reduce lead times for their customers. Colt’s Plastics Co, Inc., is “historically a made-to-order supplier,” explains Cary Bentley, executive vice president, but it also occasionally offers merchandise from its warehouse and will work with larger customers to integrate their forecasting and purchasing tools into its system. In order to reduce lead times, the company provides multiple services in-house, such as injection and compression molding, cap lining and assembly. It can also stock raw materials for regular customers “so we can respond even faster,” says Bentley.

While stock packaging is used as a strategic choice for companies of all sizes, one of the drivers of the stock packaging market is growth in small brands, says Bielefeldt. She explains, “There are more independent start-up companies in personal care then there were several years ago, and these smaller companies want the look of brand leaders, but simply don’t have the volumes to justify custom packaging. Stock packaging fits the bill for these small but growing companies in their early years, and as they launch line extensions.”

Time-Saving

No matter what definition of stock packaging is preferred, there are some key distinctions between custom packaging and stock packaging. Namely, the factors setting each apart are time, cost and brand differentiation.

In terms of time, stock packaging accelerates the process by months. In the case of made-to-order company HCP, for example, Mantle says the company can prepare decorated samples within three weeks from receipt of artwork. Once approved, decorated components can be dispatched within six to eight weeks. Time savings are realized because “the lead time for developing tooling—eight to sixteen weeks, depending on complexity—is avoided.”

Development time is also reduced because stock packaging is already tried-and-true. “Stock product options allow for critical testing to begin almost immediately after the selection process is completed. This supports speed-to-market as samples for custom molds or pilot tools would normally take weeks to months to tool and sample. Data available on any previous testing and use of a stock product is also helpful, where risk assessments might normally be required for custom tooled product options,” says ABA’s Warford.

Skin care brand Kirkland by Borghese recently utilized packaging from Yonwoo/PKG Group’s soft body line.

Speed-to-market is an increasingly important consideration in today’s marketplace. Yonwoo/PKG Group develops at least three new lines of stock packaging per year in addition to a number of innovative dispensing devices, with a focus on the skin care market. “Time-to-market has become more important across the board with our customers. Marketers must respond to product trends in a timely fashion in order to participate in the market. This is the main reason we continue to offer ‘custom look’ stock packaging,” says Eddie Csaszar, VP of sales. He says choosing stock over custom can reduce time-to-market by more than 12 months.

Cutting Costs

Closely related to cutting time is reducing costs. The elimination of custom tooling is a significant driver of lowering costs. “Stock product options generally require no tooling funding, where custom products could require thousands of dollars in tooling and related fixturing costs,” says Warford.

Rather than a mere advantage, cost may be a chief reason behind the growth of stock. Bielefeldt has observed that, “Cost pressures are driving the increased usage of stock components.” In many cases customers choose to spend their money on frills or accessories. “Large companies are finding that they can invest money in decorating techniques, custom-colored stock bottle styles or in unique closures—all for much less money than it might take to develop a custom bottle, and with similar impact. Small companies find that they can enter the market with more size options if they choose a family of stock bottles with a large size range, when they could never afford to develop custom bottles in a range of sizes.”

Brand Differentiation

Although stock packaging often provides clear advantages in speed-to-market and cost as compared to custom choices, its branding advantages have a limit.

In the case of stock, “You are exposed to the risk that there will be another company using a very similar package, so the identity of the brand will not be as distinctive,” says Lavrentieva.

“The only drawback to using stock packaging is that there is no way to protect yourself against competitors copying your bottle styles, as you have when you create and patent your own custom mold,” agrees Bielefeldt.

Risk aside, today’s stock packaging offers a lot of options, enabling even small start-ups to launch product with creative shapes and features. “The variety of available stock bottles and jars has increased dramatically and offers more interesting options for companies—especially smaller companies that probably cannot justify the cost of developing a custom bottle,” says Bielefeldt.

Without the promise of a unique shape, the burden of brand differentiation falls harder on the decoration. Packaging experts provide multiple options in order to deliver one-of-a-kind results. “The brand colors can be achieved through molding, finishing and decoration. The style of the graphics carry the brand identity and can completely change the look of the stock pack design, allowing the component to well represent the equity of the brand,” says Mantle.

When considering stock versus custom, Gross of Kaufman Container advises customers to ask this question: “Is it worth the capital investment to produce your own specific look?”

Custom Trends

Because so much of customizing stock packaging involves attention to decoration detail, stock packaging suppliers are apprised of many packaging trends in the industry.

Of particular note is the use of metal and metal-look packaging in order to imbue a high-end feel. HCP has seen increased requests for metallic spray finishing. Speaking to this interest, the company has recently launched a range of metal components called Magnum. “The compacts feature magnetic opening systems and the range fits the trend for premium finishing,” says Mantle.

Cospack has recently introduced its Agate Collection of stock components designed with an aluminum exterior.

Likewise, Cospack has recently introduced its Agate Collection of stock components designed with an aluminum exterior. “What I have seen recently is that customers are looking for stock packaging that looks and feels customized and high end. They want something that looks made-to-order but is available stock stateside. In particular, they are looking for metallized packaging that accentuates the upscale feel of their products,” says Hou.

Seeking a luxurious look, skin care brand Kirkland by Borghese recently utilized several packages from Yonwoo/PKG Group’s soft body line. “The decoration included vacuum metallizing, silk screening, and hot stamping. The resulting finished packaging looks very upscale and unique to the brand. We believe that this trend is being driven by the demand for luxury skin care products for our aging baby boomer market,” explains Csaszar.

The look of luxury has also led to requests for packaging that appears heavier. Although it depends on the brand, Lavrentieva has noted that customers often prefer glass packaging or very heavy plastics because it “feels more luxurious.”

“We have seen a resurgence in glass bottles and jars in cosmetic packaging for color and treatment products. The trend we see is for heavyweight items with thicker heels or ‘icing.’ The inherent heavy weight of the glass products combined with the thicker heels provides a luxury look at affordable prices,” says Warford.

Suppliers have also observed the request of many brands for a ‘family’ of packages, so that a company can launch a product line. “One way that we make sure we’re addressing this trend is to look at all of our stock lines and ensure that we’re offering the full range of sizes that a company needs. For example, we have ten sizes of traditional Boston Rounds ranging from one ounce through one liter, so a company can use this line of bottles for everything from travel sizes to club store packaging—and everything in between,” says Bielefeldt.

Beyond the consistent requests, a general theme has emerged of making stock packaging look anything but stock. Suppliers continue to increase their storehouses of stock offerings in order to accommodate various sizes, shapes and packaging trends of the day. They also work to increase decoration capabilities. As a result, “In addition to decoration, the wide range of stock options that exists in the marketplace today is so diverse. In the past, you had to settle on a standard silhouette, where today, the range of shapes is outstanding,” says Gross.

Even with the use of familiar shapes, much can be accomplished. Bentley says, “We’ve sold the same packages to multiple people and are amazed at how drastically different they can look with different approaches to material color and decorations. Much in the same way that all the great paintings in the art museums started with a blank canvas in a frame, the possibilities with stock packaging are endless.”

More Feature Articles from Beauty Packaging's July/August 2013 issue