Folgers' owner sues Kraft over its canister design, a key to bolstering sales in industry
A big, plastic tub of Folgers is emblazoned with the slogan: "AromaSeal Fresh Taste." To the coffee's maker, Procter & Gamble Co., that's more than just a marketing boast -- it's the result of a patented "packaging system."
And Northfield-based Kraft Foods Inc. has allegedly run afoul of that system by launching its Maxwell House 39-ounce plastic canister in recent months. Or so says Cincinnati-based Procter & Gamble in a lawsuit against Kraft filed this week that speaks volumes about the traditional coffee trade.
While still the two top coffee brands, Folgers and Maxwell House have in recent years come under intense pressure from gourmet ground coffee, as well as the proliferation of coffee shops like Starbucks.
So, every new twist -- like packaging that supposedly improves freshness -- can bolster old brands. And big companies like Procter & Gamble are rarely shy about patenting something as mundane -- at least to consumers -- as packaging in order to gain a competitive edge.
"Packaging is critically important in commodity-type products like coffee, orange juice and sugar -- products that are very similar," said JoAnn Hines, president of Packaging Diva, a Georgia-based consulting firm.
A successful packaging innovation can help boost sales, and Kraft itself offers a good example, she said. The company's "Big Mouth" container, introduced in 2005, helped Kraft gain market share in the mayonnaise business, Hines said.
The 32-ounce "Big Mouth" plastic jar features a snap-top lid, and it comes in a rectangular shape with rounded edges -- all features aimed at making the product easier to use. A Tribune review of U.S. Patent Office data shows the "Big Mouth" appears to be patented, too.
Procter & Gamble introduced its plastic AromaSeal canister in 2003, and the company says it has been a big hit. "This container has really directly led to a huge increase [in sales] for Folgers over the last four years," said Jen Becker, a Procter & Gamble spokeswoman.
She didn't give specifics. But data from Information Resources Inc., which tracks food industry trends, show that sales of the basic Folgers brand of ground coffee rose about 13 percent from 2003 through 2006, while sales of Maxwell House ground coffee were flat.
Folgers and Maxwell House are the industry's No. 1 and No. 2 brands, respectively, but they've been losing ground. And not just to gourmet ground coffees.
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