After 15 years, markets sticking with stick packs

This year, the stick pack celebrates a decade-and-a-half of helping North American marketers successfully launch and revitalize single-serve products — everything from powdered beverages and snack items to pharmaceuticals and personal care SKUs. And after 15 years, marketers of these and other products are doing more than sticking with stick packs, they're looking for even more ways to utilize this convenient, innovative and popular packaging method.

Recently, T.H.E.M. president Neil Kozarsky discussed the evolution of stick packaging in North America — not just where it has been, but where it's going. Here are some of his thoughts:

Q. When was the first time you saw a stick pack and what "clicked?"

A. Although I had seen sugar in a stick pack in the early 90's, the first time I really started thinking that this technology could revolutionize packaging in North America was on a trip to Japan in 1996. I remember seeing these really cool packages for coffee and cocoa in convenience stores and it was immediately clear to me that this form of single-serve packaging was distinctive and could be a commercial success in the U.S. As I walked through those stores, I saw the stick packs as my "aisle of dreams." And considering what has been achieved with stick packs in North America, those dreams have come true!

Q. What was the biggest challenge to commercializing stick packs in the U.S.?

A. Actually, it was Pixy Stix®. If you recall, Pixy Stix was a candy introduced in the 1950s — packed in a stick that resembled a thin straw and you would tear off the top and pour the contents right into your mouth. Because Pixy Stix candy was somewhat of an American cultural icon, brand-owners had to show consumers how to use stick packs in new applications. Although that delayed some early opportunities, we soon had major single-serve opportunities that went to market in which consumers quickly learned how to open stick packs and pour the contents into liquid. That was a key milestone for T.H.E.M. The funny thing is that now we've come full circle, and many new applications are "direct-to-mouth," meaning we've had to re-educate consumers yet again; letting them know that the contents also go into their mouth and are not just added to water.

Q. What other challenges did you face when introducing stick packs to the North American market?

A. Introducing new ideas and new technology is always a challenge. Initially, for us that meant bringing in sufficient machinery capacity to convince brand managers and manufacturers that we were "real" and that we could rapidly scale up once demand was established. Fortunately, we've always had our partner, Sanko Machinery Co. Ltd. behind us — and they've never failed to deliver and help us keep pace with the demands of even our largest clients.

Q. Besides Sanko, what else factored into T.H.E.M. achieving the successful introduction of stick packaging in North America?

A. We also have to credit our long-standing partnership with Power Packaging for both the initial and continued success that has been achieved in the North American market. They are one of America's leading third-party manufacturers, as well as its largest provider of stick packaging. Sanko has commented that Power Packaging represents the state-of-the-art in stick packaging today: an accolade that they have earned.

Q. What are some of the key drivers that have helped make stick packs the mass commercial success they are today?

A. For consumers, stick packs are all about convenience and portability — a single-serve package that can be popped into a purse, pocket or briefcase. There's no measuring or guesswork as to dosing, and the shape of the stick makes it easy to empty the contents into a bottle or direct-to-mouth. They eliminate the need for drinking glasses, spoons and other utensils. From a retailer's point of view, stick packs free up shelf space and can be easily displayed by the checkout. Plus, there's a "domino effect" of source and space reduction through the entire distribution cycle. In short, stick packs are convenient, easy to use and economical. Everybody wins!

Q. What is the single biggest reason for the popularity of stick packs among major, branded U.S. companies?

A. Compared to traditional packets or sachets, stick packs represent a significant source reduction advantage which, in turn, equates to a proportionate cost savings per impression. When you combine its cost-effectiveness with high perceived value among consumers, you have a superior packaging alternative.

Q. What types of products are now available in stick packs?

A. Today, there are so many, it's hard to keep count: Sugar/sweeteners, soluble tea, coffee, cocoa, spices, drink mixes, creamers, condiments, yogurt, OTC medications and, more recently, pharmaceuticals. With improvements in film technology, virtually anything that can be contained in a rigid package can now be offered in a stick pack.

Q. What's next in the commercialization of products available in stick packs?

A. We're already seeing growth in the liquid category of products across the board, including condiments, dressings and health formulations. The same drivers that support use in food and beverage applications (tamper evidence, portability, accurate/pre-measured dosing and easy dispensing) will advance the use and availability of health and personal care products. We've now reached the point where virtually anything that needs to be "dosed" can be considered for stick packs. We're also seeing a noticeable increase in direct-to-mouth applications.

Q. What has been the "formula for success" for stick packaging in North America?

A. For one, responsiveness. We give prompt and accurate responses to all questions regarding stick packs from U.S.-based companies, or those with a U.S. facility. In conjunction with our manufacturing partners, our stick pack development center in Marlton, New Jersey is geared to supporting client needs from the first stick pack to over a billion units on a global basis. As mentioned before, we represent Sanko Machinery, the company that invented stick packs in the 1970s. We have benefitted from our association with them, gaining knowledge and expertise over thousands of productions and applications. It has given us a proven approach to taking on even the most challenging stick packaging product applications. Customers aren't looking for just 'packages', we have to supply total system solutions.

Q. Any last thoughts as you reflect on the last 15 years of stick packaging in North America?

A. It's just the beginning. Where we started with just a few products, I now see hundreds of products, brands and companies that have benefitted from stick pack technology. Look around, and you'll notice them in grocery stores, pharmacies, at the gym and in the airport. When it comes to the future of stick packs, the sky's the limit!