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PAC Award Winner-Bronze

Hellmann's PET Jars

Overview

By changing our Hellmann's Packaging to a North American Package format, it has resulted in benefits relating to Cost and Environment impact.

From a customer and company point of view, we can identify savings related to the logistics improvements in weight reduction, improved cube utilization and overall fewer shipments. In addition, we have front end logistics improvements on the inbound Jars, where we again have more units per pallet/truck resulting in fewer shipments. The change also allowed us to remove materials used in the capping operation, where we previously added a PVC Tamper Evident Band (added material and Waste). The new Cap has a built in Tamper Evident feature. These changes (removing glass and TE Band) also contribute to improved line efficiencies where downtime/clean-up from breakage (glass) and stoppages/downtime related to the Banding equipment, are no longer seen.

With respect to the environment, several benefits result from the change in the Hellmann's Package. Starting with the move from a Glass Jar to Plastic PET Jar - we reduce the weight of material used by 85%. In addition, we also remove 100% of PVC material used for Tamper Evident Band. From the logistics improvements, we are able to improve cube utilizations for all sizes (ranging from 14% to 33%). The impact from weight reduction along with Cube utilization improvements results in saving enough fuel to take over 400 trucks off the road* (*Based on equivalent volume). Finally - at a quick glance referencing the attached Wal-Mart Scorecard comparison, you can see that there are significant improvements resulting from this change.

This packaging change is only 1 example of how Hellmann's is trying to improve on environmental impact of its products.

Motivation for Change

North American alignment of Packaging, and cost/environmental benefits.

Cost Effectiveness

Hellmann's material change to PET Jar has resulted in cost and environmental savings vs. the previous Glass Jar. The weight reduction in the jars (> 84% based on equivalent volume - see Section 7 for substantiation), combined with the reduction in shipments needed (from increase in pallet efficiency) results in saving enough fuel to take over 400 trucks off the road.*

In addition, moving to a 1 piece Cap, we eliminated material usage and landfill waste related to previous PVC Tamper Band.

*based on equivalent volume comparison

Performance

Manufacturing efficiency and cube utilization (incoming and outgoing) is optimized because of package size/weight reduction, and material reduction.

Sourcing

The Hellmann's Plastic Jars are recyclable (PET).

Effective Recovery

The Hellmann's Plastic Jars are recyclable.

Recycling Symbol 1 - PET

Community Benefit

There are potential safety benefits in changing from Glass to Plastic as it relates to breakage/handling - benefiting consumers and customers, and employees.

Resource & Energy Optimization

Hellmann's Jar weights were reduced by 84% or more depending on Jar size.Cube utilization improved and resulted in fewer deliveries required on incoming Jars, as well as outgoing Finished Goods.

Categories: PAC Award Winner Polymer (Petroleum-based) Food and Beverage Consumer Goods

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