Food & Drink Processing & Packaging Issue 53 2024 | Page 18

5 . Transportation cost savings – similar to points mentioned in no . 4 above : the space and potential additional weight that bulk packaging saves can also reduce shipping costs and by shipping a smaller volume of highly concentrated solution and diluting with water onsite , transportation space and weight can also be far smaller , resulting in a massive reduction in shipping and packaging costs .
6 . Increased customer satisfaction and loyalty – many customers appreciate businesses that are committed to sustainability and that offer refillable drink options . This can lead to increased customer satisfaction and loyalty .
7 . Harnessing technology – consumers are beginning to make use of technology to aid their sustainability efforts . The Refill App is a free app connects them to a global network of places to reduce , reuse and refill . It has over 400,000 app downloads to date ( October 2023 ) and details a growing 300,000 refill stations offering refills for water , coffee , food containers and plasticfree shopping . Thousands of independent retailers , cafes and businesses already use the technology seeing an increase in their footfall , along with some bigname brands including Starbucks , Costa Coffee , Lush and National Trust .
8 . Competitive advantage – businesses that offer refillable drinks can differentiate themselves from their competitors , giving
18 FDPP - www . fdpp . co . uk them a competitive advantage and helping to attract and retain new customers . An example of this could be gyms that offer refillable drinks with the aid of in-pump dilution and mixing . By offering highly tailored drinks that are enhanced depending on their customer ’ s needs e . g . a dose of vitamin C could be added to the usually-standard water , helping fitness people supplement their nutrition .
9 . Marketing opportunities – businesses can use refillable drinks as a marketing opportunity for both brand-building and sales , especially if a machine has an interactive screen and a central IoT cloud service . For example , the screen can offer more story around a brand and catch people ’ s attention , but for sales support , they can offer discounts to customers who bring their own reusable cups or bottles , or if there is a surplus of a particular product flavour in the supply chain , promotional discounts can help to shift that product type .
10 . Market retention and loyalty – by installing a refillable machine , consumers are likely to respond positively and return to the venue or brand for additional purchases and repeat business . Consumers become loyal to specific products if their goals are aligned and sustainability pushes them to develop a climate-conscious mindset and lean towards sustainable businesses .
So , with demand for bulk-refill or refillable drinks on the rise , multiple benefits for brands and retailers and with governments starting to push for change , why has there been such a slow deployment of liquid dispensing machines ?
Pain Points with Dispensing Machines
The main problem is the upkeep required of the machines themselves : individually packed goods can be far easier to manage and less expensive . It is particularly a problem for retailers because they are on a mission to reduce the number of shop-floor staff required and are not already resourced to maintain equipment :
Typical pain points include :
• Regular cleaning / maintenance and pumps inside the machines need regular calibration which is expensive and time-consuming .
• Servicing machines takes considerable staff training which is expensive for businesses , especially those with high churn like supermarkets or fast food restaurants .
• Replenishing products can take too long vs stacking shelves .
• Drinks can be of inconsistent quality and brands / retailers can lose market share .
• Dispensers tend to generate mess from drips and spillages .
• Machines can break down or not function properly causing consumer complaints
However , there is good news for bulk-refill and refillable drinks …